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Showing posts with the label forex chart

The Power of Combining 6-Period and 18-Period Smoothed Moving Averages for Short-Term Day Trading

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by: Ivan Cavric Short-term day trading involves buying and selling securities within a single trading day. As a result, traders must be able to quickly identify trends and make informed decisions to maximize profits. In this fast-paced environment, using a moving average can be a helpful tool to assess market trends and make informed decisions. One of the most popular and effective moving averages used by short-term traders is the 6-period and 18-period smoothed moving average. This combination is considered the best because it strikes a balance between sensitivity and smoothness. The 6-period moving average is a highly sensitive indicator that can quickly detect short-term price changes. This is especially important for day traders who are looking for quick profits. However, a highly sensitive indicator can also lead to false signals, causing traders to make poor decisions. The 18-period moving average provides a smooth representation of the trend and eliminates short-term fluctuati...

Just Who Trades Forex Currencies?

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By:  Ivan Cavric Fifteen years ago, the Forex market was a domain reserved for central banks, large hedge funds, and financial giants like Warren Buffet. Today, however, the Forex market is the most fluid in the world, with almost 2 trillion dollars traded daily from Sunday to Friday afternoon. This 24-hour accessibility, coupled with the advent of online trading platforms, has made the Forex market a popular choice for investors from all over the world. One of the main attractions of the Forex market is its accessibility. Trading occurs 24 hours a day, 5 days a week, which means that investors always have the opportunity to trade and potentially make a profit. Online trading platforms also make the process of trading easier and more personalized to suit the individual trader's needs and style. Another attractive feature of the Forex market is its size and liquidity. With a daily trading volume of nearly 2 trillion dollars, it is easy for investors to enter and exit positions in th...

Apply “The Secret” To Forex Trading Success

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By:  Ivan Cavric   The Forex market is the largest trading network in the world with $1.8 trillion dollars being exchanged every day.  There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include:  EUR (Euro), GBP (British pound), JPY (Japanese yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar).  Each of these currencies is exchanged with the currency of other nations at different exchange rates—which are always in a state of flux because the market trades around the clock (Sunday through Friday). The volatility and sheer size of the market means that there is ample fluctuation to produce big profits—and losses.  The challenge for the investor, as always, is to predict which direction the rates of currency pairs will fluctuate.   The beginning point in any investment strategy is determining what type of analysis will be used to h...

How Do Forex Brokers Make Money?

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By:  Ivan Cavric It is one of the most talked-about advantages of trading on the Forex—the commission-free trades!  Unfortunately, while we would all like to think that Forex brokers are just out there executing trades for the fun of it, the simple truth is that everyone needs to make money—even the brokers.  While they may not charge a traditional commission, brokers on the Forex still make their money whenever trades take place.  Brokers actually are compensated in a number of ways, including: Buying/Selling Currencies Earned interest on deposited funds Converting and holding currencies Rollover fees It is in the buying and selling of currencies that brokers make the majority of their money.  They make this money in something known as the “spread”, or the difference between the asking and bidding price of the currency pair.  The “ask” is the price a retail Forex trader would pay for a position.  The “bid” price refers to the amount that an investor c...