Forex Glossary Below is a forex glossary of the most common terms which I trust you should find useful AUD Australian Dollars CAD Canadian Dollars CHF Swiss Francs Currency Account/Lot The amount of currency traded on. The amount can be either $100,000 or $10,000. Not to be confused with Traders Account EUR Euros GBP Great […]

Controlling Trades The Forex market is a very fluid market with high volumes of buyers and sellers. The spread is greatly affected depending on whether there is mainly buyers or sellers of the currency pair at any one time. A market that is mainly buyers will drive the price of the currency up whereas a […]

Forex Lesson 1: The Bare Essentials Forex trading is a type of currency trading based on the exchange rate between two currencies. In Forex the points are known as the pips and are worked out in different ways depending on the currencies being traded. The pip is always the last decimal place quoted, In most […]

Forex Lesson Two: Technical Analysis Revisited (1) Market Trends When trading FOREX there are two main types of market that it is important to be able to remember and recognise. The first is known as a Broad Range Consolidation Market, or simply a range bound market. Trades in a Broad Range Consolidation Market tend to […]

Moving Averages Moving averages depict an average closing price for a currency pair over a specific time period. Simple Moving Averages take all the specified time period into account and average out the data for the whole time period. Exponential Moving Averages also give the average price data for the same time period but pay […]

Forex Lesson 3: Methods of Application The use of candlesticks in charting applications is becoming evermore popular. Candlesticks are simple and easy to use with the colour coding making trends more obvious. Traditional traders may be more familiar with line or bar charts but will find candlesticks just as easy, if not easier to use. […]

Fibonacci Retracements Fibonacci retracements are lines drawn on candlestick charts that show likely points of support and resistance for a trade. The initial Fibonacci line needs to incorporate the whole trade being looked at. The starting point for the initial Fibonacci line in an upwardly trending market needs to be the lowest point of support […]

Forex Lesson 4: Bollinger Bands Bollinger Bands are another method of interpreting and analysing market activity. Bollinger Bands are lines that trace the points of resistance and support .The area in between the Bollinger Bands reflects the market activity. If the market is range bound the bands will be narrow and compressed reflecting little fluctuation […]

Forex Lesson 5: Stochastics Stochastics are a pair of indicators that usually fall between the levels of 80 and 20 on a chart. The pattern that stochastic indicators follow can be used to predict the market trend. If the stochastic indicators break out either above the 80 level or below the 20 level and cross […]

Range Bound and Trending Markets Let’s quickly recap the different types of market. Forex markets tend to be either range bound, where a currency pairs trades between two specific points of support and resistance with no sign of breaking these points, or trending where the currency pairs fluctuate reaching new highs and lows, breaking points […]