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Showing posts with the label Pending Orders

Rising Three Methods

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  Rising Three Methods Bullish Rising Three Methods is a trend continuation pattern that alerts traders to a weakening in the current trend. The long white candle of the first day is followed by three shorter descending candles. The smaller candles reflect trend resistance, which may include a trend reversal. These 3 candlesticks are usually black and part of their body remains within the price action range of the first day. The formation ends on the fifth day with another white candle. The opening price of this candle is higher than the closing price of the first day. The uptrend should continue. The three-way pattern is a trend continuation pattern that can occur in an uptrend or downtrend. In an uptrend it is called a three-way ascending pattern and in a downtrend it is called a three-way descending pattern. The three-way pattern consists of at least five candlesticks, but can contain more. It is similar to flag or pennant formations and also represents a period of congestion or...

The Aroon Indicator

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 Definition and Use of the Aroon Indicator The Aroon indicator was developed by Tushar Chanda in 1995. Tushar chose this name because the indicators are supposed to reveal the start of a new trend. The Aroon indicator is similar to other momentum oscillators in terms of when the market enters a trend. It becomes more effective in confirming signals or conditions identified by additional technical analysis. Calculation of Aroon Indicators Calculating Aroon metrics is not as complicated as you might think. It simply requires that the high and low prices of an asset be tracked for the number of periods used in the formula. As mentioned above, almost all of the 25 periods of use are recommended by Tushar Chande. Track the ups and downs in the asset price over the last 25 time periods. Note how long it has been since the last high and low. Use these numbers in the Aroon-Up and Aroon-Down formulas below. Aroon-Up = ((25 days from 25-day max) / 25) x 100 Aroon-Down = ((25 days from 25-day...

Harmonious patterns in the currency markets.

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  Harmonious patterns in the currency markets. Harmonious price patterns identify the phases of a pullback so that once the pattern completes, you have a clear signal to buy or sell. Retracements are boring at any time, and any help is always welcome, although, with harmonic trajectory patterns, the orthodoxy is to apply for Fibonacci numbers. Again, Fibonacci numbers are not a proven theory and in fact, there is a lot of evidence that Fibonacci numbers only appear as often as chance allows in stock prices, forex included. However, when a perfect or near-perfect Fibonacci number appears, many traders will see it and get the expected result, so Fibonacci-based trading ideas are not worth dismissing. How can these harmonious patterns help you improve your trading strategy? Depending on the reason (each reason can tell a different story), they can be a clue to: Reversal Pattern - Predicts that the price will reverse and move in the opposite direction. Reason for continuation: predicts...

Fibonacci indicator

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  What are Fibonacci Retracements? Fibonacci retracements identify key levels of support and resistance. Fibonacci levels are generally calculated after a market has made a big move up or down and appears to have stabilized at a certain price point. Traders plot the key Fibonacci retracement levels of 38.2%, 50%, and 61.8% by drawing horizontal lines on a chart at those price levels to identify areas that the market could retreat to before recovering. initial price movement. How does Fibonacci work in trading? Before examining the mechanics of Fibonacci trading and how it translates into a Fibonacci Forex trading strategy, it is important to first understand the Fibonacci sequence and the unique mathematical properties it offers. The Fibonacci sequence is a sequence of numbers in which after 0 and 1 each number is the sum of the two previous numbers. Lasts indefinitely. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765 ... There are some inter...

Average Real Range

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  Average Real Range The actual average range indicates the volatility of a currency pair. In the foreign exchange market, the volatility measure is very important because it is related to direct market movements. In any financial market, increasing volatility indicates a market reversal and decreasing volatility indicates the continuation of the market. The spread of a stock is the difference between its high and its low on a given day. Provides information on the volatility of a stock. Large ranges indicate high volatility and small ranges indicate low volatility. The range of options and commodities (high minus low) is measured in the same way as for stocks.       How Does this Indicator Work? A rising ATR indicates greater volatility in the market, with the range of each bar increasing. A reversal with a rise in ATR would indicate the force behind that move. ATR is not directional, so expanding ATR may indicate buying or selling pressure. High ATR levels are usua...

How to Apply Stop loss or Take Profit on Trades

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  What is Stop Loss?  A stop-loss order is placed by a trader on trade to limit the loss. As the name suggests, a Stop-loss order puts an end to the trade when it reaches the particular amount of loss determined by the trader. It helps investors to prevent large and uncontrollable losses.  Not using the Stop loss order while trading is something that is not recommended to any trader. Not using stop-loss can lead to uncontrollable losses and one may end up wiping out the entire account just in a short period of time.  Types of Stop-loss Orders.  Volatility Stop:   Although Volatility is an important aspect of trading, it can also lead to major losses in investment. Volatility refers to the change in price over a short period of time. Volatility stop-loss order triggers when there is a large price change in the investment being made. This leads to controllable losses and reduces the loss margin.    Time Stop:  As the name suggests, this type o...

Forex chart

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What is a Forex chart?  A currency chart graphically displays the historical behavior of relative price movement between currency pairs during different time periods. Technical analysts and daily traders will examine these charts to identify trends and various patterns that can indicate reversals, continuations, entry points, and exits. Many traders use forex charting software to determine the likely direction of a particular currency pair in conjunction with other technologies, such as predictive forecasting software and online trading, to gain an edge in the forex markets.   Chart Types Charts usually have several different display modes to show price. One method by which the price can be displayed is called Japanese candlesticks. Candlestick charts are the most common display method for displaying prices on a forex chart. There are theories about using candlestick patterns to predict price. Candlestick analysis is designed to provide an almost instantaneous measure of senti...

Pending Orders

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 What are Pending Orders? There are many ways to trade Forex without good or bad; For each trader's style and personality, there is a more comfortable trading method. While market orders are the main type of orders traded, bought, and sold, another type is called a pending order. Here are some of the things to know about pending order trading. Orders are the lifeblood of the foreign exchange market and the main mechanism by which transactions are carried out. Traders use a variety of pending orders to buy and sell currencies, and we've outlined the four most common that you should know about as a new Forex trader. Types of Pending Orders. Sell Limit  A sell order at a price higher than the current market price.  The sell limit should be used when you want to sell a currency pair (open a short position) at a level above the current price. For example, GBP / USD is currently trading at 1.4531 and you think that if the currency pair hits 1.4700 it will surely lower later. If...