With fundamental releases being the order of the day, the Forex market is ever moving and occasionally taking dives and dips and mostly important forming trends. A trend can be defined as the tendency of an object to extend, incline, or veer in a specified direction. In this case it’s the tendency of the market to incline and extend in a particular direction, often due to the influence of a major fundamental release.
So how to do we approach trends?
Key Support and Resistance levels are simply regions where the prices on the chart have found it difficult to fall below or above, and often rejected any attacks to break those levels. Because of these reactions, they refer to key areas on the chart where institutional traders are likely to buy or sell their instrument, take profit, or place their stop around.
The engulfing bar reversal pattern is one of the important candlestick patterns that traders can use to benefit from when trading the forex market. It is a candlestick reversal pattern that can be used to trade bullish and bearish reversal setups. In this article, we explain what the engulfing bar trade setup is all about and how it can serve you as a profit maker in the forex market.
Trading breakouts can prove to be extremely fruitful. As we all know a breakout occurs when the underlying price of a commodity or forex pair breaks its support or resistance levels. Such a scenario can occur during any market condition and thus several traders focus only on them and earn good profits. Here are some tips for trading breakouts.
Evolving or dynamic support and resistance is one topic that has been attracting many questions, especially from newer students. This article discusses what dynamic support or resistance represents and how you can use it in trading.
Every trader knows that Pin Bars are an excellent reversal pattern, strongly recommended when a correction within a primary trend is considered has formed and you are trading with trend. A Pin Bar certainly provides an important technical signal, but its validity is strengthened when it is carried out in a price area rich in support and resistance levels.
One of the methods often combined when using Pin Bars is the Fibonacci retracement tool.
The retracement was created by Leonardo Fibonacci in the 12th century. The Italian mathematician popularized a simple sequence of numbers, known as the “sequence of Fibonacci numbers.” The Fibonacci numbers are as follows: starting from 0 and 1, each number is the sum of the two previous numbers.