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...

FOMO is Fear of Missing Out type of traders, which influences our daily trading habits and decision making capability in Forex Trading. There are following causes which leads FOMO Traders: High Expectations FOMO Traders thanks that one needs to double the account by next month and you are missing out if you do not make a lot of money as soon as possible. This leads to higher risk and large position sizes. One wrong trade and you will regret of choosing wrong position sizing and trade. Over Confidence When you come from a winning streak and feel invincible and then take random trades or too large positions because you think we can “feel” what the market is going to do. Lack of Confidence After a few losing trades, many traders will try to play catch up and then enter random trades just to get into the market and hopefully somehow generate a profit. No Rules When you do not have a system or rules, to begin with, then FOMO is your default mode, always jumping in a...

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 ...

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...

EUR/USD: EUR/USD appears to have met a tough resistance in the 1.1450 region, where sits the key 100-day SMA. Extra gains need the pair to clear this area on a sustainable note. The 1.1500 neighbourhood should then emerges as the next target.  EUR/USD should remain unchanged while underpinned by the 1.1290 area, where coincide YTD lows and the short-term support line. GBP/USD: The recovery in the  GBP/USD  pair from weekly lows of 1.3058 lost legs just shy of the 1.31 handle, as the bears keep the upside attempts capped amid the return of the Brexit deal-related uncertainty.  EU likely to reject May’s new plan, Cable could drop further to 1.3000. All eyes on FOMC decision ahead of the UK-EU renegotiation. UK PM May to renegotiate the Irish backstop with the EU, as Brady’s amendment was approved.  USD/JPY: The USD/JPY pair met with some fresh supply and is currently placed at the lower end of its daily trading range.  The USD ...

Money Management in forex is one of the important factor for consistent profit. Due to its volatility, the Forex market is inherently risky. Money management in Forex is therefore a non-negotiable success factor for both beginners and experienced traders alike. Successful traders in the long run about the single most important factor in trading, and the majority of them will tell it’s a strict way of managing your money and risk. Even the best strategy in the world won’t be of much help if you don’t take care about your risk per trade, reward-to-risk ratios, don’t use stop-loss orders or trade too aggressively. Money Management in Forex Courtesy: Equidious Research RISK PER TRADE Risk per trade is the amount of your trading account that you’re ready to risk on a single trade. It’s a key aspect of prudent money management that prevents...

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...

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  ...

What is the need of Currency Exchange? There has never been a more challenging and exciting time to be trading in the  foreign exchange market . What started out as a market for professionals is now attracting traders from all over the world and of all experience levels.  The forex market  mainly exists because of the need to ease or facilitate currency exchange. There is a need to  exchange currencies  because one country’s currency is not accepted in another. Currencies are needed everywhere to facilitate trade of goods and services. How Currency Exchange Works? The forex market works just like the other financial markets.  Currencies  are sold and bought at the current rate. The price of a currency with respect to another currency is called the exchange rate. Since the U.S. dollar is the currency that dominates in financial markets,  exchange rates  are expressed mostly in US dollars. Except when the exchange rate is pegged or fix...

Participants of  Forex market  are divided into two groups by their activity and influence on exchange rates: Market Makers Market Users ( same as price takers ) Who are Market Movers? The notion of  market makers  involves large banks and financial institutions, which determine the current level of the  exchange rate  due to a significant proportion of their operations in the total world market.   Market makers set the current exchange rate by conducting  transactions  with each other, as well as with smaller banks, which are also market participants. Market makers set the exchange rates for the smaller banks, organizations and individuals. Market makers constantly monitor the rates of various trading tools (ex.  Forex currency pairs ) as they enter into the transactions with them. Market makers are market participants who provide the  liquidity  of certain instruments, exposing orders to buy or sell. Market m...

Traders can get conflicting views of a currency pair by examining different  time frames . While the daily might be showing an up-trend, the hourly can be showing a down-trend. It can be really confusing for beginning traders, which time frame to build strategy on? Perhaps the best way to explain this variation is that the time periods these commonly used terms refer to tend to depend on the usual time a position is held given the type of trading strategy that a trader employs. Some of the most common incremental time frames used by technical analysts when reviewing exchange rate movements for Forex currency pairs include the following: The one minute time frame The five minute time frame The fifteen minute time frame The thirty minute The one hour time frame The four hour or 240 minute timeframe: The one day or daily time frame The one week time frame The one month time frame The one year time frame Forex Time Frames by Trading Strategy Although trading time fr...