How to Trade page 5

Forex economic calendar is one of the key services, which is necessary for the effective work of all traders.

In trading, levels where price changes direction (resistance or support) are often used.

Political and economic news is a powerful source of fluctuation in global financial markets.

Gold is one of the most traded commodities in the world along with oil, natural gas, and grain. But this precious metal is also one of the most interesting assets because it is considered to be a major safe-haven asset and is used to hedge the risk of inflation. In addition, gold is widely used in various industries including jewelry, dentistry, medicine, cell phone manufacturing, etc.

All traders on the forex market want to be successful. But how is this financial success evaluated? In most cases, we compare the size of incurred losses with the return value. However, this indicator by itself cannot be sufficient motivation. In case of a series of losing trades, we run the risk of falling into one of the psychological traps.

Most traders and investors are often confronted with such a purely market concept as "volatility". This term is used to analyze price movements as well as to characterize the trading instruments themselves in any financial market. Below you will learn what is the volatility of currency pairs - the concept, definition, characteristics, and how to use it when making trading decisions. What is the volatility of currency pairs? Volatility is a statistical financial index that describes the amplitude of price movements of a single trading instrument.

The Wolfe Wave pattern is a trading method, which was originally invented by Bill Wolfe and is described in detail and clearly in his book. Wolfe's method, of course, was developed specifically for the stock market of those years, but now you can see his markup on currency pairs and other instruments as well. Thus we can safely say that Wolfe waves can be applied boldly to the forex market.

Trading volume is the main measurable indicator in determining price levels in the market. The trading volume increases at the highest activity and can influence the price trend, either strengthening it or changing its direction. Actually, the main reason for studying this indicator is an objective analysis of the market situation at the moment. Most traders prefer the Market Facilitation Index (MFI) indicator, as it perfectly copes with the above tasks. Let's take a closer look at the functionality, setup, and application of this tool.

The forex market, like other financial markets, has its nature. The use of trend lines, horizontal levels, and candlestick patterns are the basis of price movement analysis, but they are often not enough to find good signals to open trades, especially during a flat. Every kind of asset, whether it is a stock, a bond, or, in our case, a currency, moves in different ways.

Indicators continue to confidently spread their influence on the formation of trading strategies. The modern trader, be he a beginner or a pro, cannot miss the opportunity to rely on the support of automated assistants. MACD fits perfectly into the format of modern trading offering a wide set of important trading signals. It hasn't lost its appeal despite its venerable age. Traders of different qualifications successfully use it in simple and complex trading strategies, including MACD as a mandatory component of the system.