Category: Forex Basics
Times of Correction
Corrections don’t always happen out of the blue. Sometimes it is related to different times in the day, week, month or quarter. Being aware of these corrections can help you trade. The beginnings of trading sessions tend to see sharper moves. This is best seen in the beginning of the European / London session. In
Trading Sunday Gaps
Recent weeks have opened with significant Sunday / weekend gaps in quite a few currencies, with EUR/USD standing out in a sharp move. Trading in the early hours of the week isn’t for everyone. For many people, it just collides with their personal life – it is Sunday night in Europe and Sunday afternoon in
When to Take a Break from Trading
Are you switching from chart to chart in search for a trade, and eventually enter a losing position? Are you eager to take revenge after this losing one? Is your nose becoming too friendly with the screen? Taking a break can help you refocus. Taking one step further, it is wise to schedule these breaks.
Taking the Profit
When the trade is going in your favor, what do you do? Do you wait until the pair hits your Take Profit goal? Extend the band? Or just take the profits and call it a day? 1) Sticking by the original plan has its advantages. First, you take no additional action that can trigger even
Trading in Range or Catching Breakouts?
Do you prefer to range with the pair or await a breakout and ride on it? The answer to the question depends on quite a few factors, with the most important one being the trader’s own experience. Some pairs trade in a flat range for quite a long time. The trader can wait for the
Haunted by False Breaks? There’s One Thing You Shouldn’t Do
You place a buy order above the current range and catch the break. The pair moves higher, but doesn’t get too far, retreats quickly back to range and catches your stop loss. It then makes the break once again, but this time with full force, moving significantly higher and reaching your previous Take Profit point.
Risk Factor – Explained
Why does EUR/USD drop when US economic figures disappoint? This is not normal. But we are not in normal times. Here is an explanation of these phenomenons, also known as “risk aversion” and “risk appetite”. Since the big financial crisis erupted in the fall of 2008, there have been many such absurd period. The current
Are You Suffering from Analysis Paralysis?
Analysis paralysis is when you analyze every small move, compare with a long history of movements, use many indicators and put them away, and basically just analyze over and over again, without placing a trade for ages. Here are some things you can do. If the answer to the question in the headline is Yes,
Are You Forcing Yourself Into A Position?
The charts and the price tickers are humming all the time. So why sleep if there is a trade opportunity? Maybe there is one. You go to your computer and you see one. But is your high profitability setup really there? Perhaps there is a good setup awaiting you, but there’s a very good chance
And the winner is…
Alex Zalts got the highest number of votes in the technical strategy competition. I must say that the race was tight. Congratulations! You’ve won the book Essentials of Foreign Exchange Trading by James Chen, a highly regarded technical analyst. Quite a few interesting strategies were presented in the comment for this competition. Thanks everybody for participating.