Candlestick charts are yet another tool used in technical analysis. The data represented in a candlestick chart is exactly the same as the data presented in a regular line graph of a currency pair’s price rate, but its way of presenting this data can add an important dimension to your analysis of the data. Most professional forex traders today tend to prefer candlestick charts to regular line charts, or at least use the two in combination... Read More

The forex market is a risky place. Placing investments in this market may well make you a profit, but it may just as well make your investment disappear before your eyes. Luckily, there are ways to limit or minimize the risks you are taking in the forex market, while still leaving your profit potential limitless.... Read More

Support and resistance are both two of the most widely used terms in the field of technical analysis. These terms are used to analyze technical charts in order to spot a trend and to determine when this trend will most likely turn. The concept is quite simple. On a technical chart, the terms apply both to simple line graphs and to candlestick charts, a trend traces an easily recognizable pattern. This pattern is a descending or descending zigzag line. The ups and downs of the line are called peaks and valleys, and the tops and bottoms of these peaks and valleys are what forex traders call support and resistance levels.... Read More

One of the greatest advantages of the forex market is that it is open and functioning 24 hours a day excluding weekends. This means that you can trade whenever it’s comfortable for you or whenever you get an important forex hunch or hint. That’s all well and good, but you must keep in mind that not all hours of the forex market provide the same profit opportunity. Profit is made when the forex market moves up or down, but making profit when the forex market isn’t moving would prove to be a bit of a challenge... Read More

If you’ve ever traded forex then you probably know that all forex traders use leverage in their positions. Leveraging trades has become such common practice in the forex trading industry that today it’s hard to find completely unleveraged positions in the market. Since price rate movements in the forex market are usually very minute and almost unnoticeable, traders need to invest huge amounts of capital in every position in order to profit from the market movements. The problem is however, that most traders in the market, with the exception of immense financial institutions such as banks, don’t have the kind of capital it takes to make real money off their investments... Read More

If there is such a thing as the secret to long term success as a trader in the forex market, it’s money management. Money management is not some vague abstract forex term, it literally means managing your money wisely. This may seem very basic, but you would be surprised how hard it is to manage a forex account and to stick to your money management principles. Part of the joy of forex trading is that it’s exciting stuff – currencies going up and down all the time, fantastic leverage opportunities and multiple simultaneous trades make it all too easy to get carried away and quickly end up with a not so exciting zero in your account balance... Read More

Technical or trend analysis presupposes that past market movement gives traders an indication of future market movement. This seems like basic stuff but it is the most useful and popular forex analysis tool among forex traders today. Spotting when a pair is trending and when it isn't is the key to consistent profit in the forex market. Once you identify a trend, you can predict what direction the rate of a currency pair will take and you can exploit this knowledge to your advantage by opening a position in that direction... Read More