Learn More About Forex and Stock Market

  Breakouts are a common phenomenon in the Forex market and occur across different chart intervals. It is therefore no surprise that break out trading strategies have become one of the most popular ways of trading Forex , besides other strategies such as trend following methods. What is Breakout in Forex? A breakout is a price movement of a security through an identified level of resistance, which is usually followed by heavy volume and an increased amount of volatility. Traders buy the underlying asset when the price breaks above a level of resistance or when it breaks below a level of support. A breakout is the point at which the market price breaks away, or moves out of a trading range . The trading range can be for any length of time but once prices exceeds the high or low of the range, a breakout has occurred. The accepted market wisdom is “buy low sell high”. What is False Breakout in Forex? A false breakout is when price temporarily moves above or below a key support or...

 To be successful in the foreign currency markets you must be able to follow a proven recipe and adapt to all of the variables that can be thrown at you during any given trading day. It is inevitable that you will make some bad trades from time to time. Even the best traders make bad trades. But the question you need to ask yourself is have you learned from your mistakes? It can be easy to be short-sighted when gold trading, but you can’t get too high or too low at any given time. Here, we explore 5 timeless rules that are an important part of successful trading, no matter the techniques, markets or time frames you trade. Equidious Forex Signals follows these rules while providing the signals to their clients. 1. Treat trading like a business Like any business, trading incurs expenses, losses, taxes, uncertainty and risk, and these factors must be taken into account. The key to developing a successful trading business is good planning, both for the overall business...

  People always want to find the best type of trade to invest in. This particularly holds true for short-term and long-term trading. This decision, however, varies from person to person. Ideally, the trader must decide on a trading type that best suits his/her personality. Let’s us take a closer look at short and long-term trading to gain some insight. Short-term trading When the duration between buying and selling ranges from a few days to a few weeks, it is considered as short-term trading. Pros of short-term trading Faster means of making money : The benefits of a trade can be realized in a short period through this method. You can earn profits within a day by investing in intraday trading. Short-term risk : If you discover that a wrong decision was taken on a trade, you can free up the capital invested and reinvest it in fresh stocks. This is because capital is at risk for a shorter period. Cons of short-term trading Volatile market : There are chances that yo...

Forex Currencies and Gold shares important correlations as follows: Gold and USD During times of Economic Unrest, investors shows lack of interest in Dollar(USD). Hence, when gold goes up, USD falls. Gold and AUD/USD Australia is the third largest gold producer in the world, selling approx. $5Billion/year. So AUD/USD raises when gold goes up. Gold and NZD/USD New Zealand is also one of the biggest gold producer in the world. With gain in gold, NZD/USD also goes up. Gold and USD/CHF CHF raises when gold goes up as 25% of Switzerland's reserve are backed by gold and pair moves down. Gold and USD/CAD CAD raises when gold goes up as Canada is 5th largest producer of gold. Hence, when gold raises up, USDCAD goes down Gold and EUR/USD Both Gold and Euro are ANTI_DOLLARS. If price of gold goes up then EUR/USD may go up as well. Oil and USD/CAD CAD raises when Oil goes up as Canada is one of the top Oil Producer that exports 2 Million Barrel/Day . USDCAD goes down w...

Best Forex Signals and Insights from Equidious Research USDJPY Analysts explained that USD/JPY has eroded the 55-day ma and the 2-month uptrend at 110.25/33 USD/JPY is currently trading at 110 the figure, trading between a range of 110.24 and 109.70. Japanese yen near six-week highs on global growth fears and moved for its biggest gain since January as safe-haven buying propelled the currency. USD/JPY attempts the retrace the sharp decline following the Federal Reserve meeting, with the pickup in volatility spurring a more material shift in FX sentiment, but recent price action raises the risk for a further decline in the dollar-yen exchange rate as it extends the series of lower highs & lows from the previous week. EURUSD Euro firmed on Monday as a stronger-than-forecast German business confidence survey allayed some fears about a recession and pulled the safe-haven yen from a 6-week high against the dollar. Euro gets a boost as IFO survey data beats ...

As the prefix “macro” in the name suggests, macroeconomics deals with the bigger picture. It is not only one specific economy that traders consider, but the implications in the overall global picture.  Forex market is primarily driven by overarching macroeconomic factors. These factors influence a trader's decisions and ultimately determine the value of a currency at any given point in time. GDP- Gross Domestic Product This is the measurement for goods and services that were finished over a period of time. GDP may be the most obvious economic report, as it is the baseline of a country's economic performance and strength.  The GDP is broken down into 4 categories: Business Spending Government Spending Private Consumption Total Net Exports Inflation Inflation is also a very important indicator, as it sends a signal of increasing price levels and falling purchasing power.  This is the measure of increases or decreases in pricing levels over a ...

Economic diversity shows a greater impact on underlying currencies than absolute export numbers. When a country’s principal export is oil or a commodity, its  currency exchange rate  tends to track the global price of that export. When the price rises, so do the exchange rate. The rising global price tends to attract inward investment and resources to the extractive industry, while other export industries struggle due to the high exchange rate – a phenomenon known as “Dutch disease” in which the economy becomes increasingly dependent on its extractive industries. When the prices of  oil and commodities  fall, the currency exchange rates of exporting countries fall in tandem. If the dollar weakens, crude oil prices should rise since oil is priced in dollars. If the dollar is cheaper, purchasers of crude can convert their local currencies into the dollar-denominated crude at a cheaper exchange rate, thus buying crude oil at a cheaper level based solely on the exch...

Forex Spread: The foreign exchange spread (or bid-ask spread) refers to the difference in the bid and ask prices for a given currency. The bid price refers to the maximum amount that a  foreign exchange trader  is willing to pay to buy a certain currency, and the ask price is the minimum price that the currency dealer is willing to accept for the currency. The Bid-Ask Spread Defined The forex spread represents two prices: the buying (bid) price for a given currency pair, and the selling (ask) price. Traders pay a certain price to buy the currency and have to sell it for less if they want to sell back it right away. Example: consider that when you purchase a brand-new car, you pay the market price for it. The minute you drive it off the lot, the car depreciates, and if you wanted to turn around and sell it right back to the dealer, you would have to take less money for it. Depreciation accounts for the difference in the car example, while the dealer's profit accou...

Crude Oil: Oil prices were stable supported by hopes that talks in Beijing between U.S. and Chinese officials might defuse trade disputes between the world's biggest economies OPEC-led supply cuts also tightened markets. There is also concern that a worldwide economic slowdown will dent fuel consumption. Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia. Brent crude futures were at $57.42/barrel rose 0.2% from their last close. WTI crude oil futures were at $48.56/barrel rose 0.1% Gold: Gold prices slid on Tuesday in Asia, as the U.S. dollar rebounded after falling for four straight sessions amid expectations that the U.S. Federal Reserve may shift its position and slow down future increases in interest rates in 2019. Gold Furures for February delivery declined 0.5% to 1,283.50  Price...

What is Currency Correlation? Currency correlation depicts an extent to which two currency pairs have moved in same, opposite, or totally random directions over a period of time. Thought Process: Why a certain currency pair rises, another currency pair falls? Why same currency pair falls, another currency pair seems to copy it and falls also? This is because of correlations between currencies. Correlation is the numerical measure of the relationship between two variables. The range of the correlation coefficient is between -1 and +1 . Positive Correlations: A correlation of +1 denotes that two currency pairs will flow in the same direction. For Example: Correlation between EUR/USD and GBP/USD is an epitome as if EUR/USD rises then GBP/USD is moving the same direction. Negative Correlations: A correlation of -1 indicates that two currency pairs will move in the contradictory direction 100% of the time. For Example: Correlation between EUR/USD and USD/CHF is an epitome of n...

EUR/USD:  EUR/USD is poised to close nearly 5% lower year-to-date with the pair trading just 1.5% off the 2018 lows. For months now, we’ve been tracking a key support pivot in Euro and the focus remains on a breakout of the consolidation range which has governed price since October.   Price holding critical support confluence at 1.13 GBP/USD: Headlines:Sterling moves higher after UK retail sales rise above expectations Sterling is facing resistance and  rallied a bit during the week, reaching towards the 1.27 level. The British pound has broken through a significant support a couple of candlesticks ago, and it now looks as if it is offering resistance yet again.  GBP will continue to struggle, and the breakdown from a couple of candlesticks ago suggests that we are trying to make the next leg lower. USD/JPY: Traders have remained net-long since Dec 18 when  USDJPY  traded near 112.517; price has moved 1.9% lower since the...

Currency Pair Analysis: Perform a world class analysis to determine which currency pairs have the greatest profit potential. Trade Management: Trade management techniques to take the most of each trade when the market moves on their favor. Study the Market: Entry system adapts to the current market conditions, follow the market instead of guessing. Risk Management: Risk management techniques to set stop loss and take profit orders at optimal levels. Accept risk and feel comfortable with their trading, they know it’s the only way to get consistent results. Money management techniques to allow the geometric growth of their account and avoid the risk of ruin. Long-term analysis:  Methodology to determine which currency pairs have the greatest profit potential. Short-term analysis:  Entry systems: breakout, retracement and continuation price action entries. Capital management:  Determine the formula that you will use to decide how much capital to risk on each t...

What is a Carry Trade? A  carry trade  is when you buy a high interest currency against a low interest currency. For each day that you hold that trade your broker will pay you the interest difference between the two currencies as long as you are trading in the interest positive direction. Carry Trade Offers Two Ways To Profit The forex carry trade is a type of strategy in which traders sell currencies of countries with relatively low interest rates, and use the proceeds to buy currencies of countries that yield higher interest rates. Forex carry trading leverages the differences in interest rates between countries. For example, one country’s central bank may lower interest rates in order to create economic stimulation, while the central bank in another country maintains higher interest rates. In effect, the forex trader borrows money in one country with a lower interest rate, and invests it in another country with a higher interest rate, and keeps the differ...