Traders in the Forex market are either trading with the short time frame or with the long time frame. In both the time frame, traders are taking risks. But however, there are some advantages that traders get when they trade in the longer timeframe. Remember in mind that traders trading in all types of timeframe needs an extreme level of patience and strong knowledge in the financial sector. If you do not know how to master the art of trading, your patience will not be fruitful in the market. Similarly, if you do not know how to wait for your trades, all your trades will bring you only loss. We are going to highlight on some of the advantages that traders can get if they trade with the higher timeframe. […]
The variables that can influence the choice of which forex broker to use to move our money are quite numerous, but one of those that we consider fundamental is linked to the quality of the virtual (or demo) account that a forex broker can offer.
Doing forex trading can be an improvised activity to those who have no experience at all and think they can make a lot of money in a short time; however, it can be chosen from those who have already had a bit of experience with the financial world and are looking for investment opportunities with a higher amount of risk against potential higher profits.
One of the determining factors in choosing the broker to start our forex trading and especially to entrust our money, is certainly represented by the choice of the best trading platforms to carry out our trading activities.
The standard forex platform for every broker is surely the celebrated Metatrader, a benchmark for what concerns the automated trading because of its spread and reliability. If a broker offers a service that is not compatible with Metatrader, he will unlikely be successful in attracting new customers.
Everyone working on the forex immediately faces a market where fundamentals (or when a currency is over or undervalued compared to a theoretical fair value based on certain parameters of economic nature, i.e. the most famous is the so-called principle of purchasing power parity PPP) are not really so important at least not directly.
Unfortunately, however, the trader hardly operates with long-term time horizons, as the week is already considered as an excessive period of time to make speculation. The representative graphs of the most commonly used prices by forex traders are therefore those with daily scans (candles or bars), but also the so-called intraday charts (for example 120, 60, 30, 5 minutes) are quite spread among those who actually operate in very short time spans. […]
For those who do forex trading every day with the help of technical analysis, one of the main obstacles to face is the false break of market supports or resistances.
The strategies that a forex trader can adopt are different, but the human mind often pushes us to anticipate the market thinking to have some pips advantage over others. This can lead to the wrong trade and capital losses.
The most widespread and effective strategy is the one based on the opening of a trade in the moment in which supports and/or resistances already established in the trading plan as critical are stressed, always of course with confirmations of price in the closing phase of the chosen time frame, hourly for the aggressive trader, and daily for the most cautious one.
Here are some examples of real false breaks that would allow those who make forex trading to adopt the right measures. During 2013 EurUsd attempted to formalize one of the most classic reversal figures provided by the classical technical analysis: the head and shoulder ( FIGURE 1).
In the month of June 2016, EurUsd, after drawing the two shoulders and the head, experienced a sharp downtrend, with the target the so-called neck-line, or the line joining the middle points between shoulders and head. This neck line was passing through 1.2810 and on July 9th during the intraday the market dropped to 1.2755 before closing at 1.2785, in fact, a classic false break. […]
The weakness affecting emerging currencies has left a small margin to the Turkish Lira (TRY) at the moment. On Thursday, May 16th, we have witnessed a sharp cut in interest rates by 50 basis points which brought the cost of Turkish money to an absolute low of 4.50%, then later, a promotion by Moody’s has brought the Turkish rating from Ba1 to Baa3, so at investment grade level. This promotion has coincided with the visit of Prime Minister Erdogan to the White House and brings the Turkish rating to the same levels of Spain, Colombia, and India.
Just the Try, paradoxically, could now enter a devaluation phase and could come back the volatile currency appreciated by Forex trading operators.
The EurTry graph is just an invitation to open a Forex account for those who want to start doing Forex trading through online brokers. […]