Monday, August 18, 2014
Forex Trading Technical Analysis: Types of Price Patterns
Technical analysis of price changes is a very important trading strategy. Finding and interpreting trends, trend changes and patterns help traders to profit in different market situations; and also help in minimizing trading risks. Trendlines
are the building blocks of most chart patterns; or are used to interpret the patterns. These are lines connecting the dots on a graph. Theses dots can be price heights, price lows, average price values or closing values. Generally trendlines are drawn connecting dots of similar types; for example daily highest price for a currency pair. Most of these lines are liner with slop to either left or right. But some trendlines can be curved in shape. Simply an uptrend occurs when the trendline connects lower dots to higher dots and downtrend occurs when the reverse happens. A consolidation occurs when the trendlines are horizontal or parallel.
Knowledge of trend patterns
is one of the key features of a successful trader. There are mainly two types of price patterns; continuation patterns and reversal patterns. When the existing trend halt for some time but then resumes its original trend, then the pattern is a continuation
pattern. Examples for continuation patterns include flags, wedges and pennants. Reversal
patterns occur when the existing trend halts and then goes the opposite direction. Examples include double bottoms, double tops and head and shoulders.
This blog is published for Orient Financial Brokers, the prominent Online Currency Trading broker
in UAE offering live forex trading accounts
for traders from Middle East countries.
Labels: chart patterns, continuation patterns, forex, forex indicators, forex patterns, forex trader, forex trading, patterns, price patterns, reversal patterns, technical analysis, trendline, trendlines
Thursday, July 17, 2014
Top 10 Advantages of Automated Forex Trading
Below are some of the benefits of using automated forex trading systems.
- Trades can be carried out any time; even when the trader is sleeping.
- Not much trader learning and training is required for carrying out profitable trades.
- Can find more trading opportunities than a hum trader and can perform multiple product, currency pair or market trades simultaneously or in short succession.
- Can remove human emotion and guesswork from analysis and trade executions.
- Automated forex systems are very good in technical analysis and are loaded with a range of indicators and analysis tools. So decision making is sound and effective.
- Advanced risk management tools ensure minimum loss to open positions.
- With modern automated systems, it is easy to experiment with new trading strategies. This enhanced trader’s knowledge.
- The customizable features of automated systems ensure personalization according to trader investment strategies and trading goals.
- They support complex trading strategies that include multiple products or markets.
- Trading and accounting the trades are easy; also evaluation of performance is very easy.
Labels: auto forex, auto forex software, automated forex, automated trading, automated trading software, automated trading system, forex trading, FOREX Trading Software, forex trading system, programmed trading
Wednesday, June 25, 2014
Advantages Only a Forex Trader Enjoys
Thanks for the lack of centralized exchanges and regulatory bodies, forex traders definitely enjoys much more freedom in trading than stock, options, futures and fund traders. Most of these privileges are only available in the world forex market. Some of the most important advantages are given below.
- There is no difference in going short or long. Every trade is shorting a currency and going long on another. Hence no uptick or similar rules are applicable.
- Traders can adopt any style they prefer; can practice any strategy on minute, hourly or weekly charts.
- Customizable leverage options allow traders to trade both aggressive and conservative based on their trading strategy, market performance and trading goal.
- Automated margin calls lock the loss to the money you put in.
- There are no trading commissions hence the loss or gain of every trade can be accounted as traders profit or loss. Also when trading high interest rate difference currencies, traders can receive interest on daily basis.
- The market stays very liquid round the clock. And there is a great information flow; traders can enjoy real-time news, charts, research and analysis usually for free.
Labels: forex, forex advantage, forex advantages, forex benefit, forex broker, forex dubai, forex trader, forex trading, forex uae, trader advantages
Sunday, May 18, 2014
GDP Value Releases and Currency Trading
Traders across the globe use Gross Domestic Product or GDP as an indicator for trading forex currency pairs. Rise of fall in GDP figures compared to previous figures can be regarded as the growth or decline of the economy of the nation concerned. The underlying idea is if the GDP is getting better then the interest rate of the nation will follow the same pattern. It can be regarded as a good indicator because it is prepared by standard government agencies and are released at regular intervals like monthly, bimonthly or quarterly.
Gross Domestic Product is the total value of all goods and services produced in a country. It is derived by taking account of the total consumption expenditures of the households, total investments on business or infrastructure, government spending or investments and of net trade balance that is net export minus net import. The values derived are compared with previous quarters or years value to determine GDP growth or decline.
Usually the forex market has high expectation of GDP values; and traders often position themselves to benefit from these releases. An expected reading cause not much fluctuations in the market compared to releasing of lower-then-expected or higher-than-expected figures.
This blog post is written for Orient Finance Broker, offering online forex trading services
to middle-east traders. OFB offer a range of advantages for online traders
Labels: currency market, currency trading, forex, Forex market, forex trading, gdp, gdp trading, grosss domestic product
Monday, April 21, 2014
Forex Rollover Interest and Trading Profit or Loss
Forex rollover interest is one of the fundamentals of forex trading which every forex trader should be aware of. Rollover interest is applicable to overnight open forex positions; to be exact, positions open before 5 pm EST and remain opened after 5 pm EST. The retail forex broker calculated the interest and is credited to or debited from traders' account.
The roll over interest is calculated based on the difference of interest rates of the nations of the currency pairs trader is holding. The interest is applicable to the total position size or the total value of trade, not just the margin/leveraged portion. The interest is credited to the trading account when the country of currency the trader purchased has higher interest rate than the country of currency the trader sold. The interest is debited when the reverse happens; when the currency trader bought has lower interest rate than currency sold. Roll over occurs when the broker automatically closes and re-open all open positions to avoid real cash/currency settlement.
Roll over has significant trading importance and the interest alone can determine profit or loss when the currency values are least fluctuating. Many day traders slightly delay their trades to benefit from rollover interest.
This blog is written for Orient Financial Brokers
, a leading online forex broker in UAE
offering a range of account features for traders.
Labels: forex, forex broker, forex broker uae, forex loss, forex profit, forex roll over, forex trading, retail forex broker, roll over, rollover, rollover interest, uae forex