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Understanding the Movements in Forex Market

The forex trading market is the world ‘s largest financial market, with average traded prices that can amount to trillions of dollars a day. There is no central currency exchange marketplace trade is performed over the counter. The FX market is open 24 hours a day, five days a week, and worldwide currencies are exchanged among London, New York, Tokyo, Frankfurt Hong Kong, Singapore, Paris, and Sydney’s major financial centres. In terms of the total cash value traded, FX is the world’s largest financial market and any individual, firm, or country can participate in this market.
Extreme liquidity and high leverage availability have helped fuel the rapid growth of the market and have made it the perfect location for many forex traders. Positions may be opened and closed in a short amount of time, or kept for months. Currency prices are based on objective supply and demand considerations and can not be easily influenced because the size of the market does not allow even the biggest players…
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Understanding the Forex Market Gaps

A that mistake among forex traders is to close the market over the weekend. The fx market actually never closes, not even on weekends or holidays. Your Forex broker will literally refuse you the right to trade when retail trading ends for the weekend. Gaps arise primarily when an abrupt announcement is made by the specific instrument or market in general, or a similar occurrence takes place somewhere else in the world. In reality, gaps may follow any sudden shift in the expectations of investors about a stock, fund, future or fx currency.A Gap on the market is the movement of an investment’s price, including a currency, stock, etc, during a time when no trading took place. Most generally, market differences are seen in the investment’s price differential between its closing price at the end of one trading period and its opening price in the next trading day, for example overnight or over the weekend. Gaps may also occur over shorter time periods, however, which is what some day trader…

Impact of Coronavirus on the Forex Market?

What is Coronavirus? Coronaviruses are a group of viruses that cause animal disease. In 2019 coronavirus has become one of the 7th members of this group responsible for infecting humans virus, which still causes symptoms like flu. The new chapter started with an unprecedented worldwide problem – the coronavirus. Late in December 2019 saw China’s has first incidents, and the government quickly sealed millions of people into cities. Wuhan, a popular Chinese city, has become identified as the birthplace of coronavirus which spread rapidly across the whole world. Coronavirus Impact on the Forex Market The Forex market effect of the news of the virus outbreak has so far been fairly still limited. Asian equity markets have been marginally lower till now and there has been some downward pressure on commodities and Share. But, if the pandemic deteriorates as analysts say it is likely to, the economic impact will begin to predominate. The main factor would be the severity of the outbreak, with …

How To Trade Trends In Forex Market?

Forex trend is an important term of technical analysis which gives information about the overall market direction. A trend can be either long-term or short-term, based on fundamental economic, sentimental and other influences. Trading through the trend is one of the best trading methods and a perfect forex strategy to maximize income. The classical solution for efficient trading is in principle trading with the trend. Once someone starts trading, they soon discover a concept generally used that traders make most of the money while trading with the trend. One of the major issues with trends is that it is always too late to enter a trade by the time the trend is established. Although trends are clear and seem to look retrospectively at forex charts, in real-time trading conditions they can be difficult to enter early and often very difficult to leave. Involving yourself early in a forex cycle depends on entering with a signal that the forex market will either proceed in its current tre…

Importance of Technical Analysis in Forex Market?

The analysis of price action is now the staple of traders as the age of the internet has integrated real-time trading prices that are recorded on charts. Traders prefer technical analysis because of fact that the chart is priced for any news or fundamental analysis Technical analysis is like looking into the market mind to see what it is going to do next based on historical data as opposed to what is predicted to do based on the news. The forex market has many of the same technical methods used in stock trading activities as well. The price action, trend, Supply and Demand, support and resistance levels will be assessed by a professional forex trader. Some of the patterns used in equity trading, including those listed above, are also traded in foreign exchange. In fact, the indicators and oscillators applied to a price chart are really close between Forex markets and the Stock Market. In a technical traders toolbox, moving averages, MACD, Bollinger Bands, Relative, stochastic tend an…

Controlling Drawdowns in the Forex Market

The secret to being a good trader is to come up with a trading plan that allows you to survive periods of significant loss. The drawdown number highlights the amount of loss that you may suffer when trading your trading strategy. Drawdown is a serious issue when the losses are high in comparison to the funds kept in the account. If you trade in any volatile Forex market, a certain drawdown is unavoidable. It’s one of the risks to put your money in Forex markets. Losing money is a part of Forex trading, which is fact that everyone must accept. But, of course, experiencing drawdowns is also a part of every business that must accept. Managing a drawdown is really about realizing that you may not be particularly good at trading, or that market conditions may not be favourable to your trading strategy and you may need to lay off a little. In any business, as soon as you understand and accept (self-awareness) the situation, we can’t be perfect and this is fine. Closing the current position…

Importance of Forex Trading Pin Bar

Understanding how to pin bars will help a trader to catch entries just as power balance changes between the sellers and buyers. Forex Trading pin bars are one of those easily learnable forex trading techniques and is perfect for swing trading because you could have found a turning point in the market. You can pull up any currency trading chart to see how, by using some form of candlestick pattern, a pin bar reversal will always illustrate significant turning points as a higher timeframe brings more weight than a low timeframe. Learning how to trade pin bars is one of the main skills that you need to learn as a trader as they are one of the most popular patterns of price action that you can see on your Forex charts. Fortunately, trading pin bars alone isn’t that difficult and just allows you to have a slight amount of information about why pin bars are emerging in the forex market, which you can easily learn by reading my article on understanding pin bars. The secret to profiting from…