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Fundamental analysis is a technique of predicting price movement by using economic information/data about the instrument. If a fundamental trader is analyzing stocks he will look at earning reports, balance sheets, & that sort of thing But for forex traders, fundamental analysis is carried out by listening to the news for information on interest rate…

Head & Shoulders Pattern The Head & Shoulders price pattern can form on any type of trading chart (Candlestick Chart, Line Chart, Area Chart etc.) A Head & Shoulders pattern is an indication of a trend reversal and when formed in an upward trend it means a downward trend is coming. The Head (H) is…

Hammer Candlestick Pattern This is a single candlestick pattern that resembles a hammer and could be either red or green color. For a candlestick to qualify as a hammer, the wick must be at least twice as long as the body & the head must have a small or no wick at all. Green Hammer…

Price action trading is trading in its rawest form with no sort of “filters” such as technical indicators. Price action trading is just looking at the naked charts and looking for patterns while using basic tools like trend drawing lines. You should not just depend on filters such as technical indicators because those indicators were…

A Volume Indicator helps you pinpoint entry & exit points on a forex chart. When the volume bars are green it indicates traders are staying in the market & buying. The taller the red volume bar, the higher the number of traders still in the market. When the volume bars are red, it indicates traders…

The MACD is a technical indicator used in finding trends in their infant stage of formation. MACD indicator is made up of 4 important parts: MACD Line Signal Line Middle Line (Zero Line) Histogram When the MACD line crosses the signal line from bottom-up, the histogram turns green indicating buying potential. When the MACD line…

What is RSI in Forex? Relative Strength Index (RSI) is a technical indicator that shows you when an instrument is overbought & when it is oversold. You can use this information to detect a trend early & ride it to profitability. The RSI indicator appears under your chart and for precise reading, you should use…

Bollinger Bands show you overbought & oversold price levels for an instrument & this information is useful in detecting trends as they form. Bollinger Bands consist of an upper, middle, & lower band which are superimposed on your chart. The Upper Band: is automatically formed by setting the standard deviation to 2.0 so that 95%…

The Exponential Moving Average (EMA) is used to quickly detect market trends as it plots a line showing the direction of the market. The EMA is more precise & accurate than the SMA because it assigns greater priority/weight to recent price & less priority to older price; resulting in a more precise line. When the…

A Simple Moving Average (SMA) helps you confirm the direction of an existing trend as per your current timeframe, which is extremely important because you don’t want to trade against the primary trend. If the price is moving above the SMA, then the market is in an uptrend. If price is moving under/below the SMA…