Forex Basics

Forex Basics

01 – How to Start Trading in 4 Easy Steps

One of the most basic foundations of technical analysis is watching price charts. There are three popular types of charts used by forex traders and these are line charts, bar or open-high-low-close ch…

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02 – Japanese Candlestick Basics

Candlestick charting originated around the 17th century among Japanese rice traders. Munehisa Homma developed this methodology to monitor daily changes in the prices of rice in order to help him make …

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03 – Common Candlestick Formations

Single candlestick patterns are perhaps one of the most straightforward ways of reading price action and interpreting market psychology. Candlesticks with long bodies and short wicks signify strong bu…

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04 – Double Candlestick Patterns

Memorizing double candlestick patterns can be a bit more challenging, but the trading results can be very rewarding. As with the single Japanese candlestick patterns, these come in bullish and bearish…

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05 – Group Candlestick Patterns

Group candlestick patterns are more creative but take time to form. Generally, these are believed to be more effective signals when they occur on the longer-term time frames. First is the three-inside…

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06 – Support and Resistance

Support and resistance are two of the most frequent forex terms you will come across in technical analysis. Simply put, support refers to a floor in price action where a downward movement changes cour…

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07 – Trend Lines and Channels

Forex traders often say that “The trend is your friend” because a market uptrend or downtrend provides several reliable opportunities to catch pips. During these kinds of market behavior, tr…

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08 – Pivot Point Calculation Methods

Pivot point calculation can be tedious for some but there are traders that find this method very reliable when coming up with shorter-term trade setups. Trading the news or economic events can also be…

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09 – Different Types of Inflection Points

There are several types of horizontal inflection points that can be employed in forex technical analysis. Among these, the most common ones are the psychological round numbers, which tend to hold well…

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10 – Fibonacci Retracement

Fibonacci retracement levels, which are commonly used to specify potential entry levels during a trending market environment, comprise another group of inflection points. These retracement levels were…

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11 – Fibonacci Extension

As introduced in the previous section, Fibonacci extension levels serve as excellent points for setting profit targets. After all, it’s not enough that you try to pick the best entry levels for your t…

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12 – Using the Fibonacci Tool with Support and Resistance

This section further illustrates how the Fibonacci retracement and extension levels tend to have a higher probability of holding when they coincide with other types of support and resistance. For inst…

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