Traders commonly interpret payment for retaining an open position overnight (aka Swap) as an additional fee, which they must pay to their broker, since Swap is negative for most of currency pairs. In other words, it is a debit to customers’ account. However, for some currency pairs it is ...
If you are a long term trader, then you should have a close eye on various price patterns that occur frequently at various timeframes. These patterns may yield huge and easy return with minimum risk. Let us have a look at some famous price patterns. Head & Shoulder (H&S) H&S is one ...
Financial markets changed, and they will continue to change, becoming more complex as our society develops. Some markets disappeared, some others were born (e.g., oil, foreign exchange, crypto), and, in time, the cycle will repeat. Due to this complex market evolution, it is impressive how some ...
Divergences were born from the desire of having an alternative to chaotic price movements. Since the Personal Computer (PC) invention, traders find it easier to plot charts and calculate complicated oscillators using sophisticated mathematical formulas. An oscillator appears at the bottom of ...
Algorithmic trading dominates the price action in all financial markets. In the last decades, computer programs more and more sophisticated, began replacing human trading. As computers began more reliable in time, coding reached new levels. To have an idea of how serious the algorithmic ...
The currency market or foreign exchange appeared with the United States decision to drop the gold standard. At the start of the 1970s, the Nixon Administration’s decision set the stage for what will become the most significant financial market in the world. Also known as the interbank market it ...
Regardless of the trading platform used, some elements in a trading account always appear. We’re not talking about swaps, spreads, and commissions, that vary from broker to broker. Instead, this article aims at explaining the importance of balance, equity, and margin in a retail trading ...
The Elliott Waves Theory was developed in the first half of the 20th century. Ralph Elliott noted that the market forms corrective and impulsive waves when rising or falling. Using an ingenious approach of interpreting market cycles, Elliott defined the waves within the overall theory. First, ...
Contracting triangles are the favorite way of markets to consolidate. For this reason, whenever it is likely that the market consolidates (e.g., a few days ahead of the NFP – Non-Farm Payrolls report), the chances favor a contracting triangle to form. Various types of contracting triangles ...
A zigzag is a corrective wave. As Ralph Elliott put it back in the 1930s, this is the trickiest corrective wave of them all. How come? The answer is quite simple: it has not one, but two impulsive waves of a lower degree. Hence, traders confuse the pattern with an impulsive wave of a larger ...