The most powerful tool of any forex trader is being able to identify whether the market is in trend or not, being able to work out if a trend is beginning or ending. Mastering this knowledge is one of the most powerful tools you can have as a forex trader. The strength of a trend is mostly referred to as momentum and there are several
Momentum indicators, a type of Oscillator, that can measure this. Momentum indicators vary between two points on a graph to indicate oversold and overbought positions. They are used as a signal to confirm a strong trend as well as trend reversal. The calculation behind the momentum indicator is the comparison between a certain price and price set a few periods before that.
The following are the most famous and commonly used indicators, the RSI, Sto... Read More
There is a deep-seated misconception among newbie forex traders that when a market is moving in a certain direction it will move so in a perpendicular angle, I know this cos that’s how I thought so too initially but in reality the market moves in zig zags whether going long or short. As a trader you need to learn and identify these changes as they are very crucial in making you a successful trader. These zig zag patterns are identified as support, resistance levels, higher highs, higher lows (uptrend), lower highs and lower lows (downtrend).
In my early days trading Forex I came across a Facebook advert from Learn to Trade. They had an opt in form to book depending on where you were in Gauteng.
I enthusiastically booked for me and my son on a session that was in Sandton. On the said day I booked an afternoon off from work and drove to Sandton with Linge.
Got there in time with other enthusiastic would be Forex traders. Don’t remember which floor their offices were but it was a very plush office space. Tea and biscuits were served before the start of the session and we had to sign in confirming our presence.
The session started where we were shown the philanthropic work done by the founder of Learn to Trade all over the world and then we were sold the sales pitch... Read More