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MACD and its Importance as a Forex Indicator

What is the MACD?

Moving Average Convergence/Divergence (MACD) is usually displayed as two lines of different colors that criss-cross atop the forex chart. One line is the MACD line itself and the other is called the signal line.
MACD also plots as a histogram. In this case it is a sort of bar chart in the window just below the currency pair prices chart. In the MACD histogram one line signals the zero point. This is called the center line. Then the bars of its chart rise and fall above and below that center line like a wave. The histogram brings forth the difference between the MACD line and its signal line. When they cross each other, the histogram will read zero.
MACD can indicate when currency pair is overbought or oversold. When does that happen? When the lines of the histogram get terribly long, there is a possibility Read more…

The basics of Elliot Wave Analysis in Forex Trading

Ralph Nelson Elliott developed the Elliot Wave Theory in the 1920s as a means of predicting stock market trends. At the core of this theory is what is called fractal mathematics that aims to make predictions in market movements depending on crowd behavior. Although this theory has found acceptance in predicting the behavior of stock markets it is now increasingly finding acceptance in forex markets too. Read more…

Forex Fundamental Analysis – How to Profit From it

You don’t need to be a wizard in economics or international trade to do forex trading. But if you know how key economic factors affect currency pairs you automatically put yourself on a higher pedestal in forex trading.
Given below are a few enlightening features pertaining to this aspect of forex trading. Read more…

Trading News in Forex Markets

Today if somebody were to ask you about the role played by fundamental analysis and technical analysis in forex markets, you would be in a reasonably good position to explain it in perspective. Not only that, you have also learnt of the nuances of technical analysis in relation to several technical indicators like, Fibonacci, MACD, Stochastic and RSI amongst others. All this is fine. However in the final analysis it is your own distinct ability to interweave the data output of these technical indicators alongside other parameters like for example Read more…

The Use of Forex Forums

A beginner in forex trading would initially perceive it to be a very complex system. But as you go along you tend to learn. You could learn from e-books, you could attend forex training courses or you could even learn from the forex demo consoles. Remember, learning forex trading is always an ongoing process. You could never ever stop learning forex trading. In this field there is always something new to learn. However, there has to be a method in your learning process. Read more…

Think Differently in Forex Trading

The forex market is undoubtedly the world’s largest and most liquid market. Why is that so? The reason is really very simple. In the forex market the volume of transactions traded is more than ten times larger than the combined daily turnover of the world’s stock exchanges. Added to this is the fact that each time a particular currency comes under focus, more and more people try to speculate on that currency and those people may eventually join the forex bandwagon. All this adds more to the volume and liquidity of forex markets. Read more…

Bollinger Bands – How Are They Relevant to Forex Trading?

Forex trading is often reckoned to be an esoteric topic. This is particularly so with respect to the technical analysis aspect of forex trading. If you have a good broker and trading software you do not automatically become a profit making forex trader. You should simultaneously have a proper trading strategy in place to predict accurately future market trends. Bollinger Band is one such tool that helps you to chart a forex strategy by predicting the behavior of currency markets. Read more…

Some key Strategies in Forex Trading

Develop Your Own Forex Trading Strategy

Both technical analysis and fundamental analysis in isolation has failed to keep pace with the globalization of financial markets. The advent of personal computers and modern global communication systems coupled with the explosive growth of the Internet has resulted in global financial markets being interconnected. Now seemingly unrelated events happening in one market have profound effect on markets elsewhere. This is one reason why you should focus on formulating a forex trading strategy. Read more…

Relevance of Oil Price in Forex Trading

In a globalized economy there is a strong interconnection between oil and financial markets, most notably that which involves currency markets. Therefore it would indeed be commonsense to figure out that there would be a net socio-economic gain if the price of oil falls. Obviously in such a situation economic growth is possible with lesser inflationary tendencies, as you could then have a period of lower interest rates which greatly helps to stimulate business.
In this article we will first try to analyze the reasons why the price of oil goes northwards or southwards as the case may be. Then we would try to figure out the relationship between oil prices and its possible impact on Read more…

Best Times To Trade Forex

Forex is a 24-hour market covering different time zones. It starts at a place called Wellington in New Zealand on Monday morning at 8am local time. This corresponds to 8pm GMT, 9pm BST and 4pm EDT. The market, which starts on Monday, shuts down for the week at 4pm EDT on Friday. BST stands for British Standard Time. EDT is Eastern Daylight Time, USA. The forex markets after starting at Wellington, passes through several prominent cities and time zones, like Sydney in Australia, Tokyo in Japan, then on to Singapore, Frankfurt and London and finally ending in Read more…

Technical Analysis in Forex Trading

Technical analysis helps you identify and capitalize upon the trends in the forex market. As you get gradually involved in forex trading, you will get to hear more and more of technical analysis in forex trading.

What is technical analysis in forex trading and how does it work?

The fundamental concept behind technical analysis is really very simple. Firstly, technical analysis uses certain tools, which are called as technical indicators. These technical indicators collect historical prices pertaining to different Read more…

Picking up the Forex Signal

If you do not have time to research on how to invest in the forex markets you could buy yourself subscription to forex trading signals. But this is where you have got to be careful. There are plenty of forex signals trading on the Internet. And that means you have to be doubly cautious of finding the right forex signal to follow and use in your trading strategy. People who don’t have the time to research on how to structure their trading strategy are more prone to using forex-trading signals. However, there are more number of people trading the forex who Read more…

Forex Trading-Advanced Investing Concepts

Forex investing is a sublime form of investment opportunity with an inherent associated element of high risk. To succeed, you may need to use computer programs for calculating and analyzing market conditions. Even then you would need to know, some advanced investing practices especially if you were intending to be a day-trader. Read more…

Forex Forecasts

forecast-signalsUsing forex forecasts is one way of keeping abreast of volatile forex markets. It certainly helps you to discern the factors that affect exchange rate changes. But why should you bother about the factors that could affect exchange rate changes? That is precisely because, success in forex trading depends on knowing exactly what and who will affect currency rate changes at any given moment in time. Forex forecasts help you solve this Read more…

Forex Trading:Using Managed Accounts

If you wish to avoid the risk involved in trading on your own, you could employ the services of Forex trading professionals to manage your trading accounts. Managed forex accounts are the easiest and safest way to trade. That is not to say that using managed accounts is a sure shot way to making guaranteed profits, but the great thing is that you could avoid some of the pitfalls of trading on your own. It is commonplace to loose your money in forex trading simply because you were in a bad mood and consequently you might have made an emotional decision. Besides, if you were to do forex trading on your own, you Read more…