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Bar charts and OHLC charts are one step up from line charts, in that they offer more data about the price changes that happen during the bar, not just one point in time. Bar charts and OHLC are excellent, but are still one step lower than candlestick charts, which show all relevant data in graphical [...]
Just like the regular doji, in a dragonfly doji pattern the price of the currency opens and closes at the same point. However, a dragonfly doji differs in that the open and close price are at the very top of the candlestick. The dragonfly doji usually only appears at market turning points, where a new [...]
Line charts are some the least used charts in all of trading. Though line charts are incredibly simple to read and understand, often they do not show enough data to make intelligible decisions. Though the use of these charts is not at all recommended, I will explain what they are and how they work so [...]
Arguably, the stop loss and take profit orders are the two most important order types for foreign exchange traders. The two orders are essentially orders on top of another order. The stop loss allows you to determine at what price you want to cut your losing trades and the take profit allows you to enter [...]
Now that we know what goes into a trade, we need to also know how to enter the trade to a broker. There are two main types of orders to buy currency, the first of which is a market order, the second is a limit order. Market Orders A market order is an order at [...]
Believe it or not, you can actually make money when a currency pair goes neither up nor down in price. Yes, that is right, you can make money for just holding a position in forex! Carry Trade Interest You remember from the third article of our comprehensive guide that when you buy or sell a [...]
In our example from the previous article, we actually alluded to a few things. The first, is that there were a few costs in our example trade of 1 lot of GBP/USD. The hidden cost is the “spread” or the commission the broker earns for completing our trade. How Forex Spreads Work Unlike stocks or [...]
So, you know how the forex market works, now its time to find out how investors make money with forex. The premise of the foreign exchange market is simple, to exchange one currency for another currency which you believe will go up in value. The basics are much like the stock market, so anyone with [...]
The foreign exchange market is the only market in the world that is open 24/7. Investors are able to place trades every single day of the week, however, most pairs will move very little on the weekends as very few investors stick around to trade. When Various Markets Open When one market closes, another one [...]
The foreign-exchange market, or forex, is the largest market in the world by volume. That is, more money exchanges hands on the foreign exchange than in any market in the world. Some $1.5 Trillion is exchanged daily, compared to $25 billion on the New York Stock Exchange. Across the world, the daily volume of stock [...]