Updated August 2020 While it’s true the foreign exchange (Forex or FX) market operates 24 hours a day, five days a week, it’s not constantly active. Understanding when liquidity is likely to enter the market helps traders determine the optimal time to trade. Liquidity and Trading Sessions The Forex market is the largest financial market … Continue reading Liquidity and Trading Sessions: Is There a Best Time to Trade?
In the right hands, moving averages (MAs) are an exceedingly influential approach. Statisticians categorise moving averages as part of a family of tools for time series analysis. Technical analysts employ moving averages to smooth data over time, allowing a clearer interpretation of the underlying trend. Moving averages are particularly potent in markets that have a … Continue reading Moving averages explained
Common among newer traders, the temptation to incorporate as many trading indicators as possible is appealing. The rationale behind this approach is simple: if most of the technical studies reach a similar conclusion, buy or sell in the direction of consensus. While this may appear a reasonable technique, it encourages a phase known as analysis … Continue reading Combatting the Dreaded Analysis Paralysis
Should a colleague, one who has a reputation of borrowing money and returning it later than proposed, ask to borrow $100 and offer to pay back $110 the following month, what would your initial thought be? It’s probably not worth the risk or the hassle, right? However, what if the said colleague offered to repay … Continue reading Understanding Risk/Reward Ratio in the Foreign Exchange Market
As the sea rises and falls along a shoreline, price action ebbs and flows in a similar manner. Perhaps one of the most disregarded facets of technical analysis, yet one of the most essential, is the identification of market structure. Many analysts identify market structure as an art form, constantly evolving from one phase to … Continue reading Basic Market Structure in the Forex Market
