No market exists that exceeds the foreign exchange (forex) market in terms of market activity and liquidity. In its annual reports on forex, the Bank of International Settlements (BIS) has always noted values above about $5 trillion as average daily transactions. The reason for this significant amount of activity in forex is that many investors have learned how to automate … [Read more...] about Guide To Using Support and Resistance Levels in Algorithmic Trading
Understanding High Frequency Trading
High frequency trading (HFT) is a subset of electronic/automated trading in that all or part of the activities does not involve human input. As the name suggests, this kind of trading is superfast, faster than any human could be. Allegedly, a human finger takes 150,000 microseconds to click a mouse. Now imagine a system that operates faster than this speed. Before the advent … [Read more...] about Understanding High Frequency Trading
Guide to Leveraging Momentum Trading for Long Term Profits
What is momentum trading? Momentum trading is the practice where one buys a currency pair whose price is trending upwards and sells a currency pair whose price is on a downward trend. The idea here is that an up-trending price is likely to continue in that trajectory for the near future. In like manner, a down trending price has the momentum to continue falling. One can … [Read more...] about Guide to Leveraging Momentum Trading for Long Term Profits
An Insight into Confluence Areas in Forex Trading
Trading confluence is an area in the Forex market where two or more structures come together and form a high-probability zone for buying or selling. It is a bit challenging to understand confluence and the way of using it effectively. Some traders depend on indicators solely for developing a trading zone, while others focus on price action. Then again, some prefer combining … [Read more...] about An Insight into Confluence Areas in Forex Trading
Price Action Trading with Momentum
Price action is a trading technique that describes the characteristics of the price movements of a security. It allows a trader to read the market so he can make subjective trading decisions according to the recent and actual price movements. Momentum is a simple and unique technical analysis indicator that is a close replica of price action and useful for traders worldwide. … [Read more...] about Price Action Trading with Momentum
