 |
ForexCenter understands the importance of knowledge
in foreign exchange trading. We have therefore put together a set
of educational tools to help traders serious about forex trading. The material explains how the foreign exchange market works, types
of orders, graphics, technical indicators, the spot forward market,
the basis of technical analysis, the main economic indicators, candlesticks
and options. |
Using Technical Analysis in Timing One of
the most important part of forex trading is
timing.Because of the high leverage factor
in the forex market , timing is especially
crucial in that arena.It is quite possible
to be correct on the general trend of the
market and still lose money.
read more
Price gaps are simply areas on the bar chart
where no trading has taken place.In an uptrend,
for example , prices open above the highest
price of the previous day, leaving a gap or
open space on the chart that is not filled
during the day.
read more
Trading system development is part art, part
science, and part common sence.
5 STEP PLAN
1) Start with an idea.
2) Turn it into a set of objective rules.
3) Visually check it out on the charts.
4) Formally test it with a demo.
5) Evaluate the results.
read more
The following checklist is provided to help
the trader touch all the bases,at least in
the early going. Later on, the checklist becomes
second nature. The checklist is not allinclusive,
but does have most of the more important factors
to keep in mind. Sound market analysis seldom
consists of doing the obvious.
read more
introducing the concepts of support and resistance.
The troughs, or reaction lows, are called
support. The term is self-explanatory and
indicates that support is a level or area
on the chart under the market where buyinginterest
is sufficiently strong to overcome selling
pressure.
read
more
The basic trendline is one of the simplest
of the technical tools employed by the
chartist, but is also one of the most valuable.
An up trendline is a straight line drawn upward
to the right along successive reaction lows.
A down trendline is drawn downward to the
right along successive rally peaks.
read
more
The channel line is another useful variation
of the trendline technique. Sometimes
prices trend between two parallel lines –
the basic trendline and the channel line.
Obviously, when this is the case and when
the trader recognizes that a channel exists,
this knowledge can be used to profitable advantage.
read
more
The oscillator is extremely useful in nontrending
markets where prices fluctuate in a horizontal
price band, or trading age, creating a market
situation where most trendfollowing systems
don’t work that well. The oscillator
provides the technical traderwith a tool that
can enable him or her to profit from these
periodic sideways and trendless market environments.
read
more
The concept of momentum is the most basic
application of oscillator analysis.
Momentum measures the velocity of price changes
as opposed to the actual price
levels themselves. Market momentum is measured
by continually taking price
differences for a fixed time interval.
read
more
The Relative strength index (RSI) is a popular
oscillator devised by Welles Wilder.
As Wilder points out, one of the major problems
in constructing a momentum line
(using price differences) is the erratic movement
often caused by sharp changes in the values
being dropped off.
read
more
Every day we are faced with decisions. When we wake up in the morning, we decide
what we are going to do first, then next, etc. The decisions we make have to be
governed by some level of thinking. The basic idea is that what we believe drives
what we do.
read more
if we were to spend some time speaking with others about what a trend is, we would
likely get a range of different answers. Below are some potential answers you could
encounter when asking others.... A trend could be spoken of as.... 1. A price move
in the market over any specific period of time. 2. A series of new highs and higher
lows or of new lows and lower highs. 3. A favorite trending indicator showing a
long or short signal.
read more