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Articles about interesting trading topics or pieces of news analysis. The topic is chosen among uncommon and not well-known subjects, but of key importance for the development of the profession.
How Does Trading Forex Differ From Trading Stocks?
Many people think of trading as a giant single entity that comprises Forex, Indices, Metals, Stocks, and more, when in reality each of the elements within the idea of trading is completely separate. Forex and stocks as an example are often thrown into the same bucket, but there are a lot of differences between them. In fact, the only similarity between them is that you are buying or selling them, pretty much that is it, everything else has differences. Some differences are large, others are quite small, but they are there. We are going to be looking at the differences between trading forex and trading stocks, there are a lot so we may not go over all of them, but you will surely get the idea that they are quite different beasts.
Meet the Steve Jobs of the Forex Industry
Traders that make money are rare. Traders that become famous have a unique advantage few can actually replicate. Listening to what they do when...
What You Need to Know About Forex Spreads
In this article, we will talk about the spread, which is actually an English term that means differential. And this is precisely what it...
Trading Algorithms IX – RSI Failures System
Trading the naked RSI system depicted in this series's previous video as an overbought/oversold signal generator is too risky, and its long-term results questionable. The system is profitable only in sideways movements. Thus, a trending filter or a detrending step will be needed to avoid the numerous fake signals.
Trading System design -Creating Your Strategy with Tradingview’s Pine Script –...
In part 1 of this article series, we have created the Stochastic RSI indicator as part of our idea for a scalping strategy. Now that we have it functional, we will make the bull/bear phases and visually inspect whether it captures the turning market's turning points.
Trading System design -Creating Your Strategy with Tradingview’s Pine Script –...
As promised, in this article, we will go through the steps to create a custom strategy, from the initial idea to the implementation of signals, stops, and targets.
Trading System design – A Summary of your Best Options to...
In our latest article, we have seen that manually backtesting our strategy is cumbersome if performed correctly. Also, It is usually subjected to errors and the interpretation of the trader. Therefore, a basic knowledge of trading algorithm development and computer coding is a desirable task for any trader. The good news is, nowadays, there are many easy ways to do it since high-level languages are very close to natural language.
Trading System design – Manual Backtesting your Trade Idea
Trading System design - Manual Backtesting your Trade Idea
GBP/AUD Global Macro Analysis – Part 3
GBP/AUD Exogenous Analysis
GBP/AUD Global Macro Analysis – Part 1 & 2
Trading System design – The pathway to Success
This article outlines the steps needed to find, create, test, and verify a trading system. We have to bear in mind that there is no way to create a forex trading system with an equity curve straight upward. Well, yes, it can be made. I've made it, but only optimizing it so much that expecting it to continue performing like this under real trading would be silly. Most trading bots advertise curves like this. If you believe them, your money will be in jeopardy.
Trading System design – Basic Concepts
In previous articles, we explained the importance of a plan to succeed in Forex and described its general features. In this article, we will describe the concepts that need to be considered when designing a trading system.
Building a Trading System: Elements of a Trading Plan
Now that we know the importance of having a plan, let's discuss the necessary components of a trading plan.
Building a Trading System: Why do you need a trading plan?
The necessity of a trading system has been discussed many times. Still, new traders don't consider it important when, in fact, it is a crucial element. Could you conceive building a bridge without a project, playing tennis, or chess, with no strategy?
The Trading Log: Key Component for a Pro Trader
At forex.academy, we understand that a trading record is a decisive component to be successful in Forex. That's why we took the time to create a free trading log on an Excel Spreadsheet. It was designed to present all the needed information at a glance. Here we present its guide.
Forex Trading Algorithms Part 7 Elements Of Computer Languages For EA...
Position Sizing Part 1 Drawdown – Why You Keep Blowing Your...
Forex Academy’s Guide to Position Size
After completing our series on position size, we would like to summarize what we have learned and make conclusions.
How to Trade Forex Anonymously with Bitcoin
Anonymous trading used to be a reserve for high-profile investors. But with the increasing acceptance of crypto in forex trading, anyone can trade anonymously now. There are both advantages and limitations to trading anonymously. If you choose to trade forex anonymously, you could use Bitcoin or any altcoin accepted by your broker.
Chart Patterns: Ascending Triangles
[caption id="attachment_57083" align="aligncenter" width="3338"] Ascending Triangle[/caption]
Leverage and Risk
This is a small presentation about how, at Forex.Academy, you could discover the secrets behind risk control; and how position size could affect your profits and your probability of ruin.
Position Size Risk and System Analysis
Introduction Some authors label this topic as Money Management or Risk Management, but this misses the point. Money Management doesn't tell much about what it does, and Risk Management seems
Secret Techniques For Profitable Forex Trading Part 1!
How To Trade The Markets Now- Joe Biden The President Elect...
The right ways to Stop-loss Setting
We, at Forex.Academy, try to help novice, and not so novice, traders the best ways to trade in this Forex jungle. Many novice traders put their focus on entries, thinking that to be profitable, you need to be right. Right? - Wrong! in his book "Trade your way to your financial freedom," Van K. Tharp proposed a random entry system as an example to show that trade management is more important than entries. The stop-loss setting is a key part of trade management, so, let's have a look at how to optimize them.
How to Professionally Deal with Fake Breakouts!
In today’s lesson, we are going to demonstrate an example of an H4 breakout at the weekly low. The price consolidates after the breakout and produces a bearish reversal candle right at the breakout level. It is a matter of time for the sellers to go short and drives the price towards the South. Let us find out what actually happens.
Fibonacci Extension: How It Helps Traders
In today’s lesson, we will demonstrate an example of an H4 chart that makes a breakout heading towards the North. However, the chart does not offer entry. We try to find out the reason behind it.
Understanding Slippage Effect in a Trading Strategy
Price Action Trading: Reasons to Skip Entries on Charts with Price...
Forex charts often have price gaps. It usually occurs in minor time frames. However, it sometimes occurs in time frames such as the H1, H4, daily chart as well. Since price movement is the key factor determining its next move for the price action traders, thus price gap creates confusion in price action trading. Thus, it is best to skip taking entries on charts with a price gap. Let us demonstrate an example and find out the reason behind it.
Importance of Choosing the Right Chart
In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the weekly low, consolidates, and produces an excellent bearish engulfing candle. It looks like a good short entry for the sellers. However, things do not go as the sellers would love to see. We try to find out what may be the reason behind it.
Determinin Risk/Reward using Fibonacci Levels
In today’s lesson, we are going to demonstrate an example of a daily-H4 chart combination trading. We also find out how the price reacts to Fibonacci retracement levels and how Fibonacci levels may help us determine risk-reward. Let us start with the daily chart.
150. The Easiest Way To Measure Market Volatility
Trading Within Last Weekly Range
In today’s lesson, we will demonstrate an example of a chart where the price is having a retracement within the last weekly range. The price produces a double bottom and makes a breakout at the neckline. It then consolidates but does not head towards the North as it normally does when it makes a breakout at weekly high/low. Let us proceed and find out the possible reason behind it.
Weekly High/Low Breakout Trading: The Chart You May Want to Avoid
In today’s lesson, we are going to demonstrate an example of a breakout at a weekly high. The price consolidates afterward but fails to make a breakout at consolidation resistance. Thus, the price does not head towards the North. Let us find out how that happens and what lesson it holds for us.
Weekly High/Low Breakout Trading: Count the Breakout Candle’s Attributes
In today's lesson, we are going to demonstrate an example of an H4 breakout at the last week's high. However, the price does not head towards the North as it usually does. Let's find out why that happens.
Breakout at Weekly High/Low, Wait for Consolidation
In today’s lesson, we are going to demonstrate an example of an H4 breakout at the weekly low. The chart produces a strong bearish candle to make the breakout. The Bear looks good to make a strong move towards the South. However, the price does not head towards the downside. It rather gets choppy. Let us find out the reason behind it.
Designing a Trading Strategy – Part 5
Count the Breakout Length
In today’s lesson, we are going to demonstrate an example of a chart where the price makes an H4 breakout at the last week’s low. However, the chart does not offer entries. It rather gets choppy. We will try to find out the reason behind that. Let us get started.
Weekly High/Low Offers a Better Reward in the H4 Chart Trading
We are going to demonstrate an example of a trade setup on the H4 chart. The price, after breaches the last week’s low; it consolidates and produces a strong bearish reversal candle. It then heads towards the South with extreme bearish momentum. Let us find out how that happens.
What Does A Combination of Double Top and Evening Star Do?
We know a double top is a strong bearish reversal pattern. When the price trends with a double top, it usually creates strong bearish momentum. At consolidation, if it produces an evening star, it creates more momentum that is more bearish since the evening star is a strong bearish reversal pattern as well. In today’s lesson, we are going to demonstrate an example of that.
Using Weekly High or Weekly Low in the H4 Chart Trading
The Weekly high or Weekly low plays a significant part in the H4 chart traders. In today’s lesson, we will demonstrate an example of how last week’s high works as a level of support and pushes the price towards the upside by offering a long entry to the buyers. Let us get started.
Keep an Eye at the Last Daily Candle’s Closing
In today’s lesson, we are going to demonstrate an example of the daily-H4 chart combination trading. In the daily-H4 chart combination trading, the daily chart plays a very significant role. As long as the price in the daily chart heads towards the trend, the traders may find the opportunities to take entry. Let us now proceed and find out what that means.
Double Top and Evening Star Drive the Price Far Down to...
In today’s lesson, we are going to demonstrate an example of a double top offering an entry, not right after the breakout. It rather offers an entry upon finding its resistance, which is well below the neckline level. Let us find out how that happens.