Understanding technical oscillators

Technical analysis is used as a way of predicting future stock price movements by studying past trends. It’s based on the assumption that “history repeats itself”, so prices can be tracked and forecasted using mathematical models and charting techniques. Technical oscillators use the internal dynamics of market activity (prices, trading volume) to measure buying or selling pressure, or overall investor sentiment within a stock, thus identifying key turning points. RSI (Relative Strength Index) and Stochastics are the two most well-known examples. Let’s look at them in more detail: Relative strength index (RSI) As the name suggests, measures relative strength. When it’s near 30%-40%, that means overbought; when it’s near 0%-20%, that means oversold. The grey line represents the oscillator itself, an average percentage change in price from one period to another, so it varies with time. RSI is used mainly on intraday charts but can also be applied to weekly

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The most popular commodities to trade in Singapore

  Singapore is one of the leading financial hubs in the world. When it comes to commodities trading, Singapore is one of the most popular markets globally. There are many reasons for this, but the chief among them is the liquidity of the market and the wide range of products available for traders.   What are commodities? Commodities are physical goods that are bought and sold for economic purposes. They include products such as metals, energy, livestock and agricultural products.   How are commodities traded? Commodities are usually traded through futures contracts. A futures contract is an agreement between two parties to buy or sell a commodity at a specific price on a particular date in the future.   What factors affect the prices of commodities? Several factors affect the price of commodities. These include:   Supply and demand If there is an ample supply of a commodity, its price

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What is Forex algorithmic trading?

Forex algorithmic trading, also known as Algo trading or black-box trading, uses algorithms to trade financial instruments automatically. These algorithms are written by traders and programmers and used to identify opportunities in the market and execute trades based on these opportunities. Forex algorithmic trading can be used in several ways, but it is typically used to take advantage of price movements and enter and exit trades quickly. It can also be used to place orders that are not possible manually, such as large or complex orders. Forex algorithmic trading is growing in popularity due to the speed and accuracy that it can provide. Automated systems can offer more opportunities to trade with fewer mistakes. However, this does not mean that robots are replacing human traders – it simply means that they can work together. In general, Forex algorithmic trading is used for three main reasons: to speed up the trading

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Risk management techniques in CFD trading

  Risk management is a critical component of CFD trading. Without proper risk management, traders can quickly lose money on their trades. This article will discuss some of the most crucial risk management techniques for CFD traders. Stop-loss orders One of the most critical risk management techniques is always to stop losses. A stop loss is an order that automatically sells security when it reaches a specific price. It helps limit losses if the security moves against the trader’s position. Limit orders Another critical risk management technique is to use limited orders. Limit orders allow traders to set a maximum price that they are willing to pay or sell a security. It helps protect traders from paying too much for securities or selling them at a loss. Mental stops A technique that CFD traders often overlook is to use mental stops. A mental stop loss occurs when a trader decides

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What is Leverage in Forex Trading?

Many financial terms can be somewhat confusing, especially to those newer to the world of finance.   Forex trading is one such activity that has several definitions and meanings, which can make it difficult for someone new to learn about this field to understand what it all means.   Leverage is one of these terms.   What is Leverage? If you use leverage correctly, it is a powerful tool that can benefit your trading career greatly.   Be sure to research how much you can borrow with your broker before investing any money into the market, as this will determine if leverage is proper for you or not.   Leverage is the amount that you borrow when making a trade, while margin is the collateral that you must post to do so. Using more leverage increases your risk, but it also means a higher return on investment (ROI)   For

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