Education on Forex trading and financial markets for beginners and professional traders interested in earn money trading
The list of economic indicators shown below is of high relevance to New Zealand and therefore for its currency, the New Zealand dollar, and should be followed carefully for traders and investors who trade in this currency. However, is important to take into account that this country does not publish indicators very often.
In this article we finish the series on daytrading and scalping strategies based exclusively on price action applicable to Forex and other markets, we hope you have liked it.
These strategies are based on the identification of classic price patterns from technical analysis.
You can access the third article in the series at the following link: The Best Forex Daytrading Strategies III
In trading, in addition to the opportunity to obtain high benefits at very low costs, one of the main advantages is the availability of tools that allow anyone to learn how to invest without putting their own capital at risk from the start.
These tools are called demo accounts. In this article, we are going to explain how to properly use demo accounts to learn how to trade in the markets before using a real account and risking our money.
The Forex market has been particularly active since the 1970s. It has become the world’s largest financial market, with an average daily trading volume growing from around 1.2 trillion in 1995 to 5.1 trillion in 2019, according to figures from the Bank for International Settlements.
Although large financial institutions and banks are responsible for a substantial part of the trading volume in this market, modern technology has also made it accessible to a broader customer base. Forex brokers have developed easy-to-use online trading platforms, which have simplified the trading process, and made it available from almost anywhere in the world.
In fact, 9.6 million people worldwide are now online traders – that is, 1 in 781 people.
In this article we will continue with the series of articles on scalping and daytrading strategies based exclusively on Price Action that may be useful for you to trade in Forex, although they can also be adapted to other markets.
These strategies are based on the identification of classic price patterns from technical analysis.
You can access the second article in the series at the following link: The Best Forex Daytrading Strategies II
After Thursday’s blow to the Mexican peso along with other emerging currencies, risk appetite returned to end the week as two-thirds of Thursday’s losses recovered on Friday, leaving USD/MXN only 3.6% higher in a week dominated by the Fed’s grim recession warning, as Covid-19 cases re-emerge worldwide.
But this week begins with complications for the Mexican peso, which has fallen 2.5% against the US dollar since Friday’s close. Added to the weakness of the peso is the drop in oil prices, with a 4.5% drop in US crude since the start of the new week, as a surprising increase in US inventories gave another blow to the commodity, which has lost $5 a barrel from last week’s highs.
The rectangle is a trend continuation pattern and consists of a price formation in which demand and supply are apparently balanced for a certain period of time. The price moves in a narrow range where it finds a support at the bottom of the rectangle and a resistance at the top of the figure.
Finally, the price ends up breaking out the rectangle range, either through support or resistance. If the previous trend was bullish, then the breakout is most likely to be bullish, but if the previous trend was bearish, the move will most likely be bearish.
However, the rectangle can also be a reversal trend pattern, for example if the previous trend was bullish and the pattern breakout occurs on the downside or when the previous trend was bearish and the price breaks through resistance.
The economic cycle is a series of phases that the economy goes through and that happen in order until reaching the final phase in which the economic cycle begins again.
Each cycle goes through periods of recession and periods of expansion. This phenomenon has been common throughout economic history, being known by other names such as “business cycles” or “cyclical fluctuations“.
It is known as economic cycle because once finished it starts again from the beginning forming a continuous wheel. However, due to its unpredictability this cannot be taken as a formal rule.
In the upward phases the economy improves and jobs are created, while in the downward phases the economy decreases. It is in the periods of contraction when economic crises break out. When oscillations of great intensity occur, economies can experience economic bubbles.
In a previous post we saw the use of the Andrews Pitchfork, a trading technique very used and known by many traders. But there is a less known variant of this method developed by a student of Andrews surnamed Shiff, who worked as a trader on the NYSE. The technique developed by this trader is intended to solve the problem that occurs when the Andrews Pitchfork presents a very marked inclination.
In this case, the Schiff Pitchfork shares with the Andrews Pitchfork the use of the line that is between points A and B, which is referred to as midline. The main difference however is that the construction of both Pitchforks is somewhat different. To construct the Schiff Pitchfork the following procedure is used: