Moving average convergence divergence (MACD) is a financial market indicator that can discover opportunities. Because understanding how to use the instrument is critical to a trader's performance, we've looked at three common MACD techniques. What is MACD? MACD, or the moving average convergence divergence, is a trend following and momentum indicator that calculates the difference in two moving averages of prices. It can be used to determine the direction of a trend. MACD is calculated by subtracting the 26-day exponential moving average from the 12-day exponential moving average and dividing it by a 9-day exponential moving average of its difference. The MACD line can be used to identify trends as well as divergences that may signal a trading opportunity. A bullish divergence occurs when prices rally but the MACD makes lower highs and higher lows, signaling that buyers are stepping in at lower prices than sellers are willing to sell at. . Conversely, a beari...
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Becoming a Forex trader necessitates a significant amount of time and effort. Forex trading is one of the most popular commodities in the financial sector, and as a result, many individuals want to jump on board and become a part of the train. Forex trading necessitates a strong grasp of statistics and the ability to correctly time markets — in other words, self-control and patience. You'd rapidly find yourself in a hole if you didn't have these talents, because you'd be tempted to act on instinct when conducting forex trading. Forex is essentially a competition with the next person; if you correctly estimate the outcome, you will win. The profit margins in this industry are incredible. These ten tips, which I'll outline below, can help you become a good forex trader. 1. DEVELOP THE APPROPRIATE SKILLS: When you're trying to start a forex business, self-development is critical because, believe me, you'll be pushed backward on a regular basis...
We’ll go over methods of detecting and trading during range-bound markets. Join in to discover new ideas, indicators and tools to gain additional control over range-bound trading. The fact is, during well trending markets majority of Forex traders trade profitably and comfortably, but once a trend is over all kinds of problems arise: trend-following systems no longer work, frequency of false entry signals increases bringing additional losses which eat up earlier accumulated profits. Taking into consideration that Forex market spends up to 50% time in non-trending, sideways state, the knowledge of how to deal with range-bound markets becomes vital. What is the simplest thing we know about the range-bound market? ...Its beginning is difficult to spot. Quite often by the time we realize that the market is ranging we’ve already made few errors and paid for it. There are various strategies that tell how to trade during range-bound markets, but there are few that...
A trading plan, together with a thought out trading routine is what I attribute most of my trading profitability to. The benefits of having a trading plan are manifold and they range from creating a stress-free trading environment, missing fewer trades, to becoming more aware of your trading behavior which then allows you to make very targeted progress. If you are not having a trading plan, or if you are looking for ways to leverage the benefits of utilizing a trading plan, this article will show you exactly how to take your trading to the next level. Intro: what is a trading plan? We will talk about how to create a trading plan in detail at the end of this article but to use the information and tips in this article effectively, we will briefly explore what a trading plan is first. Basically, a trading plan is like a road map for your trading day/week. Over the weekend, a trader analyzes the markets that he considers trading and creates potential trade ideas. In his tr...
This is a very controversial topic and one that, if understood correctly, can make the difference between a losing and a consistently profitable trader. So let’s get it out right away: Entries don’t matter! This is, especially if you are a new trader, hard to grasp and many people will not agree – keep on reading and it will become clearer. By the end of this article, everyone will understand why entries are not as important as they think. Most traders are always looking for better indicators, new trading tools or change (read: mess with) their trading rules because they believe that finding “better” entries will make them better traders. Let me tell you, the way you define entries has very little to do with your success or failure as a trader. But what is it then that you should be looking for to become a better trader? Every trade has 6 stages and it doesn’t matter what type of trader you are, all traders will go through the same 6 phases – the entry is just 1 one th...