Forex Glossary

As a tool used in technical analysis, wedge helps to predict the change in the market tendency. Although similar in appearance to the ‘Triangle’ formation, the difference between the two is in the direction of the lines.  The wedge is a reversal formation due to the similar direction of the lines. Even if theoretically as per the typical reversal formations, a wedge … [Read more...] about Wedge

When it comes to the sheer trading volume, no market is comparable to the forex. On a daily basis, it turns out trade in excess of $5 trillion. The pairs on this market are traded, which is why it is incumbent upon anyone looking to get a piece of the forex pie to get thoroughly acquainted with currency pairs. Starting out with forex trading requires one to understand how … [Read more...] about Currency Pair

Forex traders conduct two basic forms of market analysis, fundamental and technical. It is similar to how stocks are analyzed. The price is reflective of all the news and one does an analysis of charts. But, without any balance sheets for different currencies, how can they be analyzed fundamentally? In this article, we go through the components that affect the movement of … [Read more...] about Fundamental Analysis

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)