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How to Scalp in Forex Market : A Simple Definitive Guide

In this overview, we will discuss what is scalping and whether this strategy suits everyone. Scalping is a popular method of short-term trading in Forex with the use of leverage and low spread. What is scalping? The definition of "Scalping" means a short-term intraday trading strategy with a short period of time.  Scalping make a lot of intraday trades – short and with modest goals. The technique consists of quickly “cutting” small profits off the price movement of certain instruments. The option of availability of Leverage  has made scalping quite a popular strategy. A small fluctuation by a couple of points can bring the trader a serious profit thanks to large leverage. Scalping is perfect for traders with a small deposit that does not allow for long-term positional trading . For scalping, we use small timeframes: M1, M5, M15. Unlike many other strategies, scalping requires much time and effort. You have to keep a close eye on the market the whole day, find entry poi

Currency pairs volatility

 Following US FOMC rates announcement, here are some chart showing the big move after the news. It is possible to trade the news to capture 20pips or more but expect bad slippage and re-quote from broker.

A brief Introduction About Regression Channel

  A regression channel is a technical analysis indicator that attempts to forecast where a stock might go next. Watch this video to learn how this indicator might help you determine potential entry signals and price targets, and what price to consider when setting a stop order.  Watch the video :

Something Interesting to Read : Mastering the Market Cycle By Howard Marks

  A Note to Readers from Howard Marks, author of Mastering the Market Cycle Investors clearly could do much better if they knew what lies ahead. But they can’t. Few people can accurately predict what the future holds in store for the economy and markets, and fewer still know enough about these things to out-think and thus out-invest the general consensus of investors whose views are incorporated into – 'discounted by' – the market prices of securities. But we know economies and markets follow an up-and-down pattern called a cycle and, importantly, knowing where we currently stand with regard to the economic cycle and the market cycle can give us a better idea of what lies ahead. This is a process through which investors can get the odds on their side. When the economy is just beginning to recover from a slowdown and the markets are picking themselves up off the floor after a bust, it’s highly likely that security prices haven’t been lifted to precarious levels by

Forex Trading Strategy : MACD + ADX Trading Strategy

  This simple trading strategy can be applied to any instrument on any time frame. This strategy using two ocillator, ADX with 16 period setting and MACD setting of 3, 9, 16. Some say that a trend indicator alongside an oscillator is the most efficient combo. Any of these three pair suits the strategy: EUR/USD, GBP/USD, AUD/USD. Experienced traders/investors stick to these ones because majors have more predictable behavior, and tech analysis works much better on them. Recommended time frame should be on shorter period. To open a position, start by analyzing the activity of ADX with period 16. Make sure you choose correct settings when adding the indicator to the trading terminal. Signals in the strategy do not differ from "classic" ADX signals. As you know, the author claims that a crossing of +Di and -Di as it is already gives a market entry signal. For example, if +Di crosses -Di from below, this is a signal to buy, and if -Di crosses +Di from above, this signals

EURO Week forecast : Geopolitical Risks and an Increasingly Hawkish Fed, ECB on the Sidelines

  EUR/USD 1 Hr Chart The one-week implied volatility of the EUR/USD has reached its highest level since the middle of December, following reports last Friday that US intelligence suggested Russia could invade Ukraine this week. If tensions between the two countries continue to rise, the single currency may be vulnerable to a rapid selloff. Markets dislike uncertainty, and the prospect of an invasion destabilising European politics and economic dynamics could cause traders to flee the eurozone. Crude oil prices are also rising as a result of supply disruption concerns between the West and Russia, which is also a key player in OPEC+. Higher oil prices could also pose a problem for the European Central Bank (ECB). Since the ECB's February monetary policy announcement, ECB President Christine Lagarde has spent the majority of her time downplaying increasingly hawkish expectations. Earlier this month, this resulted in a brief 2-day surge in the Euro. Even one of the more dovish central

How to Trade With Leverage in Forex

What is Leverage   Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.  Leverage in Forex   Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to mov