The trends in sideways markets are fairly easy to spot. To detect sideways markets across a range of timeframes, you should determine the highest and lowest price levels. These two levels establish your range. Next, in the present price range, we want to watch how the asset behaves. If it is struggling to overcome support or resistance, it signifies that the pair is trading … [Read more...] about How to Trade in a Choppy Forex Market
Forex Basics
What Is Slippage and Why Do Forex Traders Dread It?
Slippage is a case whereby an order is fulfilled at a price other than the customer's order. Slippage is an expression used by both stock traders and FX dealers. Because of the rapid price fluctuations in the financial markets, the time required to fulfill the order might lead to slippage. Occurrence of slippage In instances when the market is highly volatile, or … [Read more...] about What Is Slippage and Why Do Forex Traders Dread It?
Gap Trading in Forex
A forex gap is defined as an instance where the previous day's closing price does not match up with today's opening price. This results in the creation of an empty space or gap in between the two candlesticks, as shown below: Forex markets, which are open twenty-four hours every day, are technically closed for the weekend. Only retail traders are barred from participating … [Read more...] about Gap Trading in Forex
Forward Swap and How to Use It
Before we can define what a forward swap is, it’s important first of all to understand what a swap is in foreign exchange. A foreign currency swap is a mutual accord between two entities concerning the exchange of legal tenders. Swap agreements usually contain a swapping of capital and returns of payments on a loan created in a legal tender for capital and … [Read more...] about Forward Swap and How to Use It
Currency Pair Correlations
A currency correlation is a measure of the extent to which two currencies have a statistically significant link in terms of value and the chance that market readjustments would cause their prices to move in the same direction. Forex markets tend to reward traders based to a large extent on their understanding of the nature of relationships between different … [Read more...] about Currency Pair Correlations
