The trading technique described in this article is one of the trader’s entry techniques available for traders. This one comes with the Simple Moving Average period 12 (SMA 12), and the Commodity Channel Index period 20 (CCI 20). Here, the way the CCI is used is unique because it isn’t according to the uses suggested by the conventional trading wisdom. Conventional trading wisdom suggests that any CCI reading above the +100 level is an overbought situation (which would make a trader seek short trades), and any reading below the -...
The U.S. economy is gradually recovering from the unprecedented scale of the financial crisis. U.S. could significantly accelerate the growth of GDP, its export was raised to record highs and unemployment was reduced. America's position is still far from ideal but it is much better than, for example, in Europe and some developing countries. In the last two weeks in the United States has been published many macroeconomic statistics, which showed that the country, as a whole, shows a very decent rate of recovery from the crisis, which in...
Analysis of the records of Twitter users enables to predict the movement of market indices with 70 percent accuracy, Russian economists discovered. It turns out that psychological state of people closely related with their economic behavior. Thus, an abundance of tweets with the words "fear", "excitement" and "hope" foreshadows the imminent downtrend of market quotes. For the first time the idea to predict the movement of the stock markets by using social media appeared in economists’ minds a few years...
A lot of forex traders do not fully understand how to use a stop loss order properly and think it is only to exit a trading position at a loss. This is a very big mistake new trader’s make. Successful and professional forex traders never use a stop loss order to close a position at a loss, but rather to exit a position at a profit before price action reverses. Professional traders usually don’t use a stop loss order in order to exit a trade at a loss, only new and inexperienced traders do so. Professional traders hedge their...
As you study more about forex trading and especially technical analysis you will come across a technical term called Fibonacci Retracement Levels. It is a very popular indicator for major support and resistance levels and plenty professional traders use those levels as part of their overall trading strategy as the Fibonacci sequence is a very accurate sequence when it comes to trading. What is the Fibonacci sequence? The Fibonacci sequence was introduced by Italian mathematician Pisano Bogollo to the Western world and can be found...
