Traders use the DMI for assessing the direction of price trends. It is an essential tool to assess the direction of the price and the strength of the movement. Traders using trend strategies will find this indicator very useful. This is because it emphasizes the trend’s weakness or strength so the trader enters a trade during a real momentum. Another advantage of DMI is any … [Read more...] about Directional Movement Index (DMI)
Order Flow Trading In Forex, Explained
Overview Order flow trading is one of the fascinating philosophies in financial markets. For the longest time, retail traders have always been interested in seeing the markets in the eyes of the so-called ‘big boys,’ i.e., institutional banks and other large financial firms. Though the idea of order flow is relatively old, interest has surged recently with the increase of … [Read more...] about Order Flow Trading In Forex, Explained
Gross Domestic Product (GDP)
GDP is a chief indicator of a country’s economic performance. The value is measured during specific periods like annual or quarterly. Globally, it is used to gauge the financial status of a country. In countries with middle or low-income, high Gross Domestic Product progress annually is crucial for satisfying the mounting developmental needs of their … [Read more...] about Gross Domestic Product (GDP)
Fisher Effect
Fisher Effect Basics In this article, we go through the theory and show how it comes in handy in determining the currency changes in the forex. The equation of the theory says that the real interest rate can be derived by deducting inflation from nominal rates. The Fisher Effect is in play on the money that one has in one’s savings account, for the rates being … [Read more...] about Fisher Effect
Difference between Investing and Trading in the Forex Market
Often times when we hear the term “forex market”, chances are that it is referring to the spot forex market. The Spot Forex market is the place where a trader buys or sells currency at the current price on the date of the contract for delivery within two business days. There are many articles on the web that talk about how to invest or trade properly in the forex market. … [Read more...] about Difference between Investing and Trading in the Forex Market
