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Forex Trading Blog

Reversal Pattern – Chart Reading
Part two of the miniseries on price patterns. In the first part continuation patterns were the center of attention; this part will be all about key reversal patterns. While a continuation pattern suggests that a trend will continue in the same direction, a failed continuation pattern may well turn... Read more
Continuation Patterns – Chart Reading
Price charts can appear to be completely random movements. Yet, within those movements price patterns can be found. Price patterns are distinctive formations which reflect the interaction between buyers and sellers. Which means they are formed and guided by the laws of mass human behavior, suggesting that they often... Read more
Spread: how to stay away from its pitfalls
Probably most of us are individual traders trying to make a living or some extra return on the foreign exchange market. For an individual trading currencies we have to use a broker to execute the buying and selling of the currency pairs. Every broker attaches a spread to the... Read more
General Market Movement: The first step
The first step a chartist will do is to identify the market condition. Markets can either be trending or not trending, which is often referred to as a trading or ranging market. The basic definition of a price trend was originally mentioned in the Dow Theory. A trending market... Read more
Books every trader MUST READ
Browsing for books on ‘How to trade the market’ will give you an overload of books. Many of those will dissapoint you and won’t help you to improve your trading results. Online we find many so-called “top 5” lists of books you should read. Most of them are compiled... Read more
Moving Average: An important tool for traders
For a technical trader the trend is utterly important. Several indicators (and methods) have been developed to help us technicians in determining whether the market is trending or trading. Knowing the market conditions helps us to determine what kind of technical tools we can use in our trading. In... Read more
The RSI: How to trade with it? (Three strategies)
In trading we try to find ways to gain an edge in the market. A technical analyst has varies ways and tools in his toolbox to do so. The use of indicators does not give us a 100% accuracy in predicting future price movements, but can help traders to... Read more
Support & Resistance
It is time to touch upon one of the cornerstones of technical analysis; Support and Resistance. When traders talk about support and resistance, they are talking about price levels at which they expect the market will have a difficult time rising above or going below. The term “Support” refers... Read more
What is Leverage?
A question commonly asked by traders is how much leverage should I use? Despite being one of the key advantages of trading the forex market, leverage is also one of the main reasons people lose money trading forex. Understanding leverage and its pitfalls are mandatory to survive the market... Read more
Currency Pairs (major)
A national currency is dependent on macro-economic figures. Macro-economic figures differ for each country. Therefore, different currency pairs have different behaviors that can be characterized as “personality traits”. When trading forex, these personality traits can have implications on  your timing, entries and exits. Being familiar with the idiosyncrasies the... Read more