Tag: candlestick

What is Support and resistance in forex trading

What is Support and resistance in forex trading

Trading Articles
Support and resistance is one of the most widely used concepts in trading. The concepts are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade. Support and resistance trading is considered to be one of the most effective ways of Forex trading since it is based on the primary source of information -market price itself. Forex Support Levels – Areas which price cannot seem to break below. If a break does happen, this is only temporary and the price will soon return above the level. Forex Resistance Levels – Areas which prevent the price from rising further. These levels act like a ceiling and appear to force price back down when it tries to break above the level.

What is price action in binary options trading

Trading Articles
Traders who trade based on price action alone are intimately familiar with the Dow Theory concept. In short, the Dow Theory defines a trend as any price cycle that results in higher highs and higher lows. Prices never move in a straight line up or down. Rather, they move in waves. When those waves take prices to a new high, and the subsequent pullback fails to create a lower low than the previous pullback, it is said that the price is in a trend. Purchase a position in the charted currency during the decline from the new high. If the trend remains intact, the price action will push to a new high, generating a profit. Price action in relation to forex and binary options trading is the pattern of movement of the price of a security over time. In essence, Price action is the closest relative...
A newbies guide to understanding Candlestick charts

A newbies guide to understanding Candlestick charts

Trading Articles
Candlestick charts is a form of chart type that was first developed by the Japanese rice traders with the credit going to a particularly successful rice trader by the name Homma (or Homna) from the Japanese town of Sakata. It is said that Homna built a fortune for himself trading rice futures by using the Candlestick charts. The candlestick charts represent price movements of an instrument with each bar representing price movement over a given period of time. Candlestick charts are plotted on an X and Y axis representing Time and Price respectively. Candlestick charting was made popular in the West by Steve Nison with the first Candlestick chart having to appear sometime around 1850's. Today, Candlestick charts have become the defacto chart type across all markets; be it forex or future...