Moving Averages and their Purpose in Forex Trading

Moving Averages and their Purpose in Forex Trading

The Moving Average (MA) is one of the many types of technical analysis indicators. Technical Analysis is a trading methodology engaged when attempting to verify the viability of a given investment opportunity through analysing both price and volume action over a given period of time.  For effective and accurate evaluation of these trends, technical analysis employs a variety of tools otherwise known as indicators. In terms of functionality, a moving average may be defined as a lagging indicator that utilises past prices to forecast future trends. It is expressed as a curve that simulates price bearing on the trading chart. It however has a regular motion that does not put into consideration minute price changes. Features of The Moving Average There is a variety of parameters that are to be considered when setting up a moving average. They include: Timeframe   A trader can either go long or short depending

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The Benefits of Using Moving Averages In Forex Trading

The Benefits of Using Moving Averages In Forex Trading

Moving market is one of the oscillators that is used in non-trending markets. Oscillators are chart representations that show the trader the prevailing trends in the forex market. The chart indicators show the oversold and overbought conditions in the stock market. Moving markets are used to determine the entry and exit points in the market.  A forex market trader can use the moving averages to identify the direction of the forex market.  What Are Moving Averages? Moving averages (MA) is a simplified tool that is used to analyze the price data. The tool gives updates on the average price in the stock market. The average price is taken daily over a period of time. The trader decides on the interval that will be used to take the average prices. You can take moving averages every minute, hour, day, week, month, or year, depending on your preference. These averages are for

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Technical Analysis Methods That Each Forex Trader Should Know

Technical Analysis Methods That Each Forex Trader Should Know

As a beginner forex trader, you might think it’s a game of luck. And, you will be so far away from the truth. Forex trading success requires skill. Skill built over years of practice and consistent trading. One of the critical skills in forex trading success is technical analysis. Technical Analysis refers to thorough historical research on the price of a currency pair to help you predict its future movements. Many traders have won trades that they have put in sufficient technical analysis. Successful traders use the following technical analysis methods in their trading. Moving Averages Moving averages are often combined with trendlines to help traders get into a promising trade. They are popular technical analysis tools. They generally help traders to take advantage of the changes in price movement. Moving averages display as a line on a chart. This line can help you identify how the price of a

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What is an introducing broker?

An introducing broker is an agent who introduces beginner traders to the Forex market and in return, they receive a brokerage fee. This fee is usually a percentage of the spread or commission. Many forex markets around the world are regulated in that, not any individual can introduce new customers to brokerage and introducing brokers are required to prove identification and validity of their trading documents. The National Introducing Brokers Association represents all the professionals in the industry who include commodity trading advisors, introducing brokers and Future commission merchants. There are two types of induction brokers; a guaranteed and an independent introducing broker. The difference between the two is their relation with Future commission merchant. Attributes of an introducing broker An introducing broker acts mainly as a customer representative and a salesperson for future investors and some of their common attributes are; They are not usually registered with the Commodity

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Five simple ways to develop the trading skills

Everyone wants to become a Forex millionaire but sadly only few can full fill their dream. But this statistical data has not stopped people from becoming a Forex trader. Every day the number of retail traders in the online trading industry is rising at an exponential rate. If you do some research you will be surprised to see the majority of the traders don’t have any precise skills about this market. They are always placing random trades without knowing the risk factors. On the contrary, the successful traders in the United Kingdom follow organized steps to learn more about this market. They trade with a proper strategy to become a profitable trader. Today we will share five key simple steps which will help you to become a profitable trader.

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