Developed by famous technician J.Welles Wilder Jr., the Parabolic SAR, also known as the parabolic stop and reverse, is a popularly used indicator. It is mainly used by traders for determining the short-term momentum of any given asset. It can easily be applied to any trading strategy, enabling the trader in determining where stop orders should be placed. The calculations … [Read more...] about How to Use Parabolic SAR in Forex Trading
Tick Chart vs. Time Chart: Which One Should You Use?
Many traders or forex robots work with time-based charts when it comes to technical or fundamental analysis. With time-based charts, a candlestick often represents price action over a given period. For instance, one bar could represent price action over one minute, five minutes one hour, or one day. In addition to time-based charts, forex tick charts are becoming … [Read more...] about Tick Chart vs. Time Chart: Which One Should You Use?
Guide To Using Renko Charts for Profitable Forex Trading
Renko charts are a trading utility that helps the trader to exploit the price trend for profit. The charts appear like bricks where a green or white brick represents an upwards price movement. On the contrary, a red box shows that the price is falling. Particularly, Renko charts have a smoothing effect; they do not focus on small price movements. The indicator only … [Read more...] about Guide To Using Renko Charts for Profitable Forex Trading
Major Chart Patterns in Forex Trading
Anyone trading on the forex market is aware of the importance of different chart patterns used during forex trading. Forex chart patterns can be best described as an on-chart price action patterns, which have a higher than average probability of following through in one fixed direction. These chart patterns form the basis of technical analysis conducted by numerous traders … [Read more...] about Major Chart Patterns in Forex Trading
Why MACD Can Be an Unreliable Signal
MACD or Moving Average Convergence Divergence is an indicator in trading, used mainly to measure the potential entry and exit points for traders. It does this by comparing short-term and long term price trends. This indicator allows analysts to derive future price movements and place trades for profits. MACD is a trend or momentum indicator and as a momentum indicator, … [Read more...] about Why MACD Can Be an Unreliable Signal
