Author: Yokoyi

In an upward trend, there are points where buyers exit the market either to secure their profits or cut their losses; so, this causes price to fall temporarily (red candles) & this is called a downward retracement. The same scenario plays out in a downward trend when short sellers begin to exit the market by…

What is Resistance in Forex? Resistance is a highpoint on a chart where upward trends are subdued & they reverse course to a downward direction. A resistance level acts like an invisible ceiling and upward price movements have trouble breaking through it. With your resistance level found, the chances are high that the next time…

A trend is a Birdseye view of the market & a trend could be moving in either an upward, downward, or sideways trend. You can use the trend line drawing tool on your trading platform/app to draw lines to mark where trends start and end on a chart. What is an Upward Trend in Forex?…

Click on the Currency Pair You need to select the currency pair whose chart you want to view & when you do that the chart will appear on your screen. The price is always on the vertical axis while the date and time is at the bottom of the chart. Select chart type You can…

The Dow Theory is named after Charles H Dow, cofounder of the Wall Street Journal. Although initially postulated for the stock market, forex traders can learn a lot from Dows Theory as it forms the basis for technical analysis which is the cornerstone of forex trading. 5 Tenets of the Dow Theory The Market Discounts…

A forex chart is a visual representation of how prices have moved in the past. Traders study the charts & try to predict how prices will move in the present. While the most popular forex charts are based on the time variable, there are charts that don’t depend on time. On time-based charts, bars form…

Step 1: Register with a regulated forex broker The first step in trading forex is to register with a regulated forex broker and log on to your personal area on the broker’s website. During registration, your broker will ask you to choose an account currency (base currency) in which your wallet will be opened. Your…

The forex market opens at 5pm on Sunday and closes at 5 pm on Friday. However, even though the market is open it doesn’t mean the majority of the traders are awake. When traders in a location are inactive or sleeping it reduces the market flow & liquidity. There are periods when traders from different…

What Does CFD Stand For? CFD stands for Contract For Difference and it is an Over-The-Counter (OTC) derivative financial instrument. Over-The-Counter means CFDs are not traded on a regulated exchange (such as a stock exchange) making CFDs cheaper & more flexible but more risky than Exchange-Traded-Derivatives (ETDs). Derivative means that CFDs can be derived or…

What is Leverage in Forex? Leverage is when your broker borrows you funds to trade with. This loan enables you to open bigger trades than your account balance would have allowed. Leverage is expressed as a ratio like 1:30, 1:200, 1:1000 etc. If you wanted to open a trade valued at $100,000 & your broker…