If you are looking to make money then Forex (FX) trading is a great platform to trade upon and to make money. Compared to all other markets, the FX market is a lot better, as it stays open for longer hours giving you more flexibility to trade. Its hours of operation start from Sunday afternoon and end on Friday evenings. During the course of the working week it remains open for 24 hours daily.
Like all other markets FX markets also have three phases. If the trends or prices are on the higher side and rising with higher highs and higher lows then that means the market is “Trending up.” If the prices are exhibiting lower lows and lower highs, then that means the market is “trending down.” And the third phase is of “Ranging” or “sideways.” In this phase the market does not propagate in a specific direction, it goes up and then down in between two support and resistance levels. This happens when the upper and lower bands get extremely close to one another.
For simplicity you need to know that the three phases mentioned above can be reduced to two; “trending” & “Ranging.”
The actual benefits of trade can be experienced once you learn to understand when to enter and exit the trade using the help of indicators. Indicators help you read the trends and range, thus enabling you to predict the outcome.
Indicators help traders identify momentum of price changes, they highlight trends by identifying direction and strengths of price movements, they also help in identifying the support and resistance levels, they identify volatility of assets and with the help of all of the above mentioned information a trader can make his/her move for the entry and exit. The important thing to remember is that indicators can only act as assisting tools for the trader to predict price changes, they may not always hold true.
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