Once you trade in the Forex market, you probably heard about the oscillators. Combining oscillators and price action, you get a powerful combination of tools that can be very profitable. And there is another important point related to the divergence that many traders overlook. In a normal market, if the oscillating indicators (RSI, Stochastic, MACD, etc.) make higher maximums, they must meet higher maximums on the price. When the oscillator makes a lower maximum, the price action should reflect a similar picture. But what happens when the...
The technology of trading currencies has come a long way since the necessity of physically buying foreign currencies from your banker. The introduction of Futures, Options, and various other derivatives have enabled investors to capture the opportunities in appreciating and depreciation currencies in a far more powerful way. The introduction of internet technology has further increased the accessibility of currency trading to the masses with countless web platforms and virtual services. The decision to trade automatically or manually...
The truth about forex is that it can be an intense and stressful undertaking that requires a strong control of your emotions. Those who lack discipline or make decisions that are not carefully thought through will quickly find themselves in a negative investment position. Those who do not adhere to sound investment principles or who allow emotion to govern their thinking will quickly find themselves losing a grip on their investments. However, those who follow sound investment principles will reap the benefits of one of the world's most...
If you want to achieve success as a forex trader, you have to keep your finger on the pulse of the world news. Knowing what is happening not only in your own country but in all the major economic powers, will help you to protect and enhance investments. But no need to constantly keep track of all the news. You can just be aware of when will be published the basic financial statements and reports, and to understand them correctly. Even being a master of technical analysis, relying on charts and indicators in the search for trading...
The RSI (Relative Strength Index) is used to show you when a Forex currency pair is in an overbought or oversold position. And this, in turn, means that the upward or downward trend fizzles, and that may soon happen a trend reversal. RSI is a great first mate, which tells you when the market is going to turn around. How to use RSI in Forex trading? RSI is an oscillator, that is, its value always fluctuates between 0 and 100. The value of around 100 (typically 80 or above) indicates that the market has gone too far, and you have to look for...
