1.forex trading plan It is the systematic approach to currency approach that controls all aspects of the trading .The trading is conducted through simultaneous application of three different systems : forex trading system money management system emotion management system The rule set of each system are converted into simple to follow instructions that named as [...]

1. What is Technical Analysis? Technical analysis is the study of past price patterns to forecast future price action. The price of a currency pair is the only input studied by technical analysists because they believe it to be the ultimate representation of market sentiment at any given moment. Technical analysis uses price charts to [...]

1. What is a Forex Trading System? Forex trading system is the subsystem of the forex trading plan which controls when and at which price you open and close your trades. A trading system operates on the signals generated by technical analysis and/or fundamental analysis  . The signals are processed to determine if the trader [...]

1. What are Support and Resistance? Support is the price zone below the current price where price declines are likely to stop and reverse. Resistance is the prize zone above the current price where price advances are likely to stop and reverse. In an uptrend , price advances (price thrusts) are blocked by resistance and [...]

1.what are trendlines? Trendlines are straight lines that connect each successive rising bottom to show an uptrend  or each consecutive declining top to indicate a downtrend . There should be 2 price points for the trendline to be drawn. The longer the trendline and the more points it connects the stronger it can support / [...]

1.what are Fibonacci Retracements ? Fibonacci retracements are percentage values which can be used to predict the length of corrections  in a trending market. Most popular retracement levels used for the forex trading are 38.2%, 50%, and 61.8%. In a strong trend you can expect the currency prices to retrace a minimum of 38.2 percent; [...]

1. What are Bollinger Bands? Bollinger bands are lines traditionally placed at 2 standard deviations above and below the 20-period simple moving average  – far enough to keep 95% of currency price action between them. Because of the way they are constructed, bollinger bands expand or contract in response to changes in price volatility: when [...]

1. What are Moving Averages? Moving averages clarify the direction of the underlying trend by smoothing out price fluctuations. This is done by taking the average of the closing prices seen during a fixed period of recent price action. For example, a 50-day simple moving average will sum up the closing prices for the last [...]

1. What are forex indicators? RSI, MACD and Stochastic are the 3 most widely used forex indicators, employed primarily to identify overbought and oversold market conditions. These indicators are plotted at the bottom of a price chart and move back and forth (the reason they are also called oscillators) between a minimum and a maximum [...]