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….
Category: Blog
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…
Things to Consider Before Trading in Forex
Before trading in forex, it’s important to understand how leverage works and how much you can risk. You should never trade in a position that you cannot afford to lose. If you need to pay your bills, think twice before you risk your money. You also need to know how much you’re willing to risk…
An Introduction to Trader Inside Bars
If you’re not familiar with candlestick patterns, you’ve probably never heard of inside bars. They are one of the most underrated and least discussed patterns. They are often used to detect trends but are often overlooked. If you want to make money trading, you need to learn how to identify them and use them to…
Why Protecting Capital Should Be a Priority While Trading?
Protecting capital is critical when trading. Increasing your risk on trade can easily blow up your account. By putting barriers in place to protect your capital, you can minimize the risk of your trades. You can even keep a portion of your capital in a bank account to keep it safe from market volatility. Limit…
An Empirical Study of the Foreign Exchange Market
Empirical studies of the foreign exchange market using surveys of exchange rate expectations are becoming increasingly common. However, most of these studies conclude that the short-term behavior of currency markets is inconsistent with neoclassical characterization and argue that the focus should instead be on the long run. The present paper, on the other hand, treats…