Forex Education
This section holds our Forex Educational library: Our trading library consists of a collection of the most excellent educational articles written by our top market experts. It is primarily focused on those subscribers who aim at initiating or consolidating a professional trading career; that is, for people who take trading seriously. It is our mission to continually enrich our library over time, as well to cover all sorts of useful topics, from foundational to the most advanced ones. We have separate sections for Advanced Forex Education, beginners Forex Education, A daily Forex Topic and a Complete Forex Course.
An Old Theory about Support/Resistance
Support and Resistance are the two extremely important components in financial trading. Price action traders rely on them as a critical component of their trading strategies.
Fundamental Analysis – A Brief Introduction
Most traders just focus and use technical analysis (TA) to make trade decisions, but they forget that trading is connected with value. The perceived value of an asset is what makes the market move up and down. And the perception of that value by the market is directly related to the fundamental information available.
A Story of a False Bullish Breakout
In today’s lesson, we are going to demonstrate an example of a short entry that is derived from a false breakout. It contains two lessons. Let us get started.
Caution! A Big Round Number Ahead
In today’s lesson, we are going to demonstrate an event to find out what the price may do around the big round number. A big round number plays a significant role as far as traders’ psychology is concerned. The price usually gets volatile around a big round number. It may get tough for the traders to find out entries around the big round number. Let us now dig into USDCHF recent activities around the big round number 1.00000.
Forecasting with the Elliott Wave Principle
The analysis and forecast process of any financial asset can support the decision process to take any positioning on the market. However, the time dedicated to developing it could increase the cost of the trade as this grows on time. In this educational article, we will review how to analyze and make a forecast by applying the main concepts of the Elliott Wave Principle.
No Breakout Confirmation or No Consolidation Means No Entry
Price Action traders crave for the breakout. Breakout is one of the most important components of price action trading. However, there is another equally important thing, which is breakout confirmation. Since the Forex market is very action-packed, it is often found that the price does not come up to the breakout level to confirm the breakout. It consolidates and produces a reversal candle to offer entry. The question is, does it always consolidate and offer an entry.
Test your knowledge about Candlesticks
After our discussion about short-bodied candlestick in our article
Is Drawing One Trendline Enough?
The Trendline is an excellent trading tool that the price action traders love using on their charts. Drawing trendline as accurate as it can get and adjustment with spikes are two factors that traders are to look after before using trendline. Another factor trendline traders often need to do is drawing multiple trendlines on the same chart. In this lesson, we are going to demonstrate an example of that.
Analysis and Trading with Triangles
In our previous article, we discussed how we could simplify the zigzag and flat pattern by the chartist figure known as a flag. In this educational article, we will see how triangles can be used in wave analysis.
Candlestick Trading Patterns II – Everything you need to know about...
This article is to be dedicated to single candlestick key figures. The majority of patterns are created by more than one candle, but some particular candlestick shapes are key figures to gauge the market sentiment and spot reversals.
A Breakout Brings More Momentum than any Other Trading Factor
A Breakout Brings More Momentum than any Other Trading Factor
Candlestick Trading Patterns I – The Story
The Financial markets are an exciting place for many people, attracted by dreams of infinite wealth. However, these markets are one of the most complicated environments on earth. The fact that millions of people exchange assets in financial markets makes them very difficult to predict, as each of the participants has its own vision, interests, and objectives.
Corrective Waves and the Flag Pattern
Is it possible to simplify the wave analysis and compare it with classic chartist patterns? Identifying Elliott Wave patterns can seem confusing, especially if you are looking to differentiate between a flat or a zigzag pattern. In this educational article, we will look at some of Elliott’s patterns and compare them to traditional chartist figures.
What Wastage of Time!
The H4-H1 combination is one of the best combinations to trade for intraday traders. The H4 chart is the most consistent intraday chart in the Forex market. The H1 chart integration with the H4 chart offers many reliable entries. However, it is often seen that the H4 chart doest its part, but the signal never comes on the H1 chart. In today’s lesson, we are going to demonstrate an example of an H4-H1 chart combination, which is about to give us entry, but it ends up not producing a trading signal. Let us find out how the story goes.
29. What Is Margin Level and How Is It Calculated?
Introduction
The margin concepts such as Used margin and Equity have proved to be essential to understand other margin terms. In this lesson, the concept of Margin level too revolves
An Inverted Hammer at a Double Bottom
The Double Bottom is a pattern, where the buyers eagerly wait to get a bullish reversal candle at. Typically, a Bullish Engulfing Candle, a Bullish Pin Bar, a Bullish Truck
These Are Some Of The Best Position Sizing Techniques You Should...
Introduction
In our previous article, we addressed the concept of position sizing, drawdown, and techniques. Now we extend this discussion and look at other crucial aspects of position sizing, which
28. Other Important Margin Trading Terminologies – Free Margin
Introduction
In the previous lesson, the concept of used margin and equity was discussed. Apart from having their importance, these terms prove to be significant to understand other terms as
How to Use ETFs to Create Spreads
Exchange-Traded Funds, or better known as ETFs, are investment instruments that are traded in a centralized market. In this educational article, we will see how we can use them to
Having the Mindset to Deal with a Frustrating Situation
Patience is one of the most essential components of Forex traders. Traders are to keep patience in every single second. Before triggering an entry, a trader is to find out
Finding The Optimal Risk % In Forex Trading
Introduction
Calculating risk is one of the most important parts of Money Mangement. Many novice traders or traders with limited experience won't be aware of the amount of risk they
Understanding Drawdown & Its Relation With Position Size
Introduction
Do you know that there is a safe way to choose the maximum lot size when you trade? That too while keeping your account safe from blowing when a
The H4-H1, an Action-Packed Combination
In today’s lesson, we are going to demonstrate an example of the H4 and the H1 chart combination for taking entries. Both are intraday charts. A large number of traders
The USDJPY and its 3-Year Triangle
The triangle is one of the three basic corrective patterns along with the Flat structure, with more variations within Elliott’s Wave Theory. In this educational article, we will review the
27. What Should You Know About Used Margin and Equity
Introduction
In the previous lesson, three terms related to margin was discussed. There is another term called used margin, which comes under the same roof of the margin requirement and
Trading With The Bollinger Band %B Indicator
Introduction
If you have experience trading with the Bollinger Bands indicator, you will find it easy to trade with the Bollinger Band %B indicator. The only difference is that, in
A Story of an Early Exit
Risk-Reward is a factor, which every successful trader takes care of. Before choosing a chart to take an entry, the first thing that is to be considered is the trend
Masteting Stop-Loss setting: How about using Kase Dev-Stops?
The stop-loss setting is a crucial component to the long-term success of a forex and crypto trader. The market forces cannot be adapted to the wishes of traders. Successful traders
A Winner is Not Always a Good Trade
Price action traders use chart combinations such as Weekly-Daily, Daily-H4, H4-H1, and H1-15M, etc. Intraday minor charts’ traders such as the H1, 15M, 5M do not have an undeviating relation
The Case for Average True Range-based Stop-loss Settings
Most traders are taught to use stop-losses based on critical levels. The basic idea is to spot invalidation levels based on previous low or high. The assumption is that by
Experiencing a Losing Trade
A losing trade hurts. Beginners find it tough to encounter losing trades. However, in the Forex market, losing is inevitable. The market is so action-packed that even an experienced trader
Trading Price Channels Like A Professional Forex Trader
Introduction
One of the most important characteristics of price in the Forex market is that it moves in the form of channels 20-25% of the time. So it is crucial
Advantages & Risks Involved With Volatility Trading In The Forex Market
Introduction
The forex market offers a lot of trading opportunities, but still, many traders find it difficult to make profits consistently. Emotions combined with undue risk and money management are
Dollar Index and the Alternation Principle
In our article "Impulsive Waves Construction - Part 1," we introduced the concept of "alternation." In this educational article, we'll apply this concept to the Dollar Index Analysis.
The
26. Understanding Margin Amount, Margin Requirement, and Required Margin
Introduction
In the previous two lessons, the basic terms in a margin account were discussed. And this lesson shall talk about the concept of Margin in detail. Precisely, this chapter
Basics of Risk To Reward Ratio In Forex Trading
Introduction
The Risk to Reward Ratio is one of the most critical aspects of risk management in Forex trading. Traders with a clear understanding of what RRR is can improve
25. Margin Terminologies – Unrealized P/L and Realized P/L
Introduction
In the previous lesson, the concept of balance was discussed. And in this lesson, two more terms shall be opened up, namely, unrealized P/L and realized P/L. First up
Perfecting The Fibonacci Retracements Trading Strategy
Introduction
The Fibonacci tool was developed by Leonardo Pisano, who was born in 1175 AD in Italy. Pisano was one of the greatest mathematicians of the middle ages. He brought
Attributes of the Signal Candle Not to be Ignored
After choosing a pair to trade, traders wait for the signal candle at the desired zone/level to take an entry. The attributes of the signal candle are important. Ideally, a
24. Margin Terminologies – Balance & Rollover
In the previous lesson, we have understood the fundamentals of margin/leverage trading. In this lesson and the following few lessons, we shall be discussing different terms related to margin and
Using Trailing Stop: An Art to Be Learned by Traders
Using a trailing stop is a way to lock a profit in trading, at least with some profit. A floating profit trade may not always hit its Take-Profit level. Thus
A Strategic Plan for Trade Management
I've already stated my view that most wannabe traders put their focus in technical analysis of the market and on trading signals, mostly provided by others, hopefully, more knowledgeable than
23. Fundamentals Of Margin Trading
Introduction
Margin, which allows for Leverage trading, is one of the crucial reasons why most of the traders prefer trading Forex. It is an aggressive form of trading where traders
The Simpler the Better
Financial traders follow many charts, patterns, and trading strategies. Each one has its own advantages and disadvantages. Nevertheless, there is a saying, ‘the simpler, the better.’ In the financial markets
22. A Brief Comparison Between The Stock Market & The Forex...
Introduction
The Stock market and the Forex market are the most widely traded markets in the world. Many traders who enter the universe of trading are often in a dilemma
