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Currency futures contracts, also known as foreign exchange futures, or FX futures, are the kind of contracts where trades are made to exchange a currency for another at a fixed exchange rate. But the fun part is, the transactions are made on a future date. Since the value of the contract is concerned with the […]

Occasionally, you will encounter the term “pullback” when reading about analytic outlooks on price movement. You can trade against the trend using pullbacks in many trading strategies. Do you think it is a wrong concept since theory often teaches to follow the primary trend? You must know about a pullback strategy and how traders can

The moving average ribbon plots different moving averages and creates a ribbon-like structure. The spacing between the moving averages gauges the trend’s strength, and the price in relation to the ribbon can be used to identify key levels of support or resistance. Understanding moving average ribbon Moving average ribbons are typically made up of six

The Island pattern suggests a reversal of a current trend. The pattern has gaps on both sides, giving it the appearance of a divided region. That’s why it’s known as the Island. What is the Island Reversal pattern? The Island pattern can be seen on the chart because of its structure. Both sides of the

An outside bar is a reversal and continuation trading method in which the current candle, high and low, completely engulfs the preceding candle high and low. You can use this method to help you identify bullish and bearish reversal/continuation patterns. How can you identify the outside bar pattern? The bullish and bearish engulfing candlesticks are

Trading forex requires traders to take considerable steps to avoid margin calls. Consequently, understanding how margin calls originate is key to effective trading. Forex traders can leverage a little sum of money to establish positions hundreds of times greater than their account balance, allowing them to profit enormously. But, on the other hand, leverage is

The New Zealand dollar is in the spotlight when it begins trading in the Asia-Pacific region. Investors are on the rise as risky assets rise steadily. New Zealand’s trade surplus exceeded $ 261 million in June, up from $ 469 million the previous month. However, the decline was due to an excessive increase in imports

Wave analysis is based upon the Elliott Wave Principle which recognizes the underlying market psychology as the real driving force behind price movements. The Wave Principle is basically a graphical illustration of how the crowd vacillates from the extreme point of pessimism at the bottom of the chart to the extreme point of optimism at

A brief definition of what the COT report actually is, serves as a useful introduction to the mechanism behind the report. It also highlights how it can add value to FX traders’ methods and strategies, whatever their level of experience. The Commitments of Traders report is a weekly market report published by the Commodities Futures