The term currency pair is utilized to describe the relative value of a currency unit against another currency. These currencies are exchanged in the foreign exchange market. There are several kinds of currency pairs. Each pair has different characteristics and trading signals. Here are some of the basics about currency pairs: Base currency, Quote currency,…
Month: September 2022
Supplemental Forex Trades
Supplemental forex trades are different from normal day-to-day trading. They may not follow the major trends, or they may move against them for a day or two. They may even break out of the range they are in. These types of trades are based on current market sentiment, central bank news, and regular news events….
Forex Trading System Development
Once you have decided on a forex trading system, you’ll need to create a trading plan. You can develop a breakout strategy or a trend-following strategy. Whichever you decide, it’s a good idea to create a loss limit for each trade. This will ensure that you don’t overtrade, or lose too much money. Developing a…
Currency Trading Basics Everyone Should Know
Currency trading involves buying and selling currencies. These currencies always trade in pairs, and traders create positions based on the assumption that the prices of each currency will change. They measure the change in the price in pips, and they use these pips to establish trade positions. The value of each currency is represented by…
What is Hammer Candlestick Pattern?
The hammer candlestick pattern can be a powerful indicator of trading success. It depicts the relationship between demand and supply in a market. Usually, a hammer appears after a price has declined significantly. It can also signal a possible reversal of trends in the market. However, to confirm this pattern, the price must show momentum….
The Different Models of Foreign Exchange Markets
There are two main models of foreign exchange markets: the monetary approach and the asset approach. The former aims to determine the exchange rate based on relative money supply and demand. The latter, on the other hand, focuses on relative bond supply and demand. Both models consider the same economic variables but are different in…