Trading Articles

What is Order Flow Trading?

For most of the traders, order flow trading has remained a mystery – a mystery that everyone wants to unveil but fear of losing investment capital hampers such trading expeditions. This article is for all traders who want to know this trading method.

Option Flow Trading:

Order flow trading can be executed in various forms of trading systems. It is based upon anticipating the prices in situations where big market players have very large pending orders. Option flow trading is not a very difficult strategy to implement, but the problem why it is not widely used is described below.

Using Binary Options in Advancing Markets

A trader has always wished to earn huge profits in the binary options market and for that to happen, it is important for him to have a basic knowledge to recognize potential trading opportunities. If he is able to predict the market correctly, he can get a chance to secure high returns equal to the profit of one month by trading just a few times during the rally. But how can traders efficiently deal with these types of advances?

How Does A Solid Mindset Affect Trading?

Does specific psychological traits really affect FOREX trading? Or, is it just a hoax marketed by brokers so the trader blames himself for the losses instead of paying attention to the market manipulation done by trade firms?

The answer:

YES. The psychology of a FOREX trader affect his ability to make profits, but it is not the only factor that has profound effect on his trading abilities. If a trader is experiencing bad days at FOREX trading, he needs to look far beyond his mental state to pin-point the cause.

How Much Risk Should You Take?

Every FOREX trader wants to know how much risk he should take and how position sizing can help him sustain a profitable trading business for a long time. Let us first burst some misconceptions about FOREX trading before moving onto the benefits of position sizing and risk management.

Does diversification improves profit making chances in FOREX trading?

Many investors and online tutorial resources emphasis on a diversified investment portfolio. Many wrongly quote Warren Buffet famous words about putting your eggs in different baskets. At this juncture you should ask yourself “Am I doing FOREX trading to become wealthy or just to survive”.

Learn to Read Candlesticks Accurately

One of the requirements of technical analysis is that a trader must have some sort of market related tool at his disposal. Charts are considered as a useful measure to fulfill that requirement. There are different types of charts, such as, Point and Figure, OHLC, Candlestick, Volume Delta etc. Every chart represents a different perspective of the investment market to assist the traders and investors in decision making. One of the commonly known chart type is Candlestick, which comprises of bar charts and represents the relationship between the closing and opening prices.

Learn to Read the Waves!

Day wave trading is a short term trading technique that is produced by using Fibonacci Retracement. Being a trader, you will be aware of what Fibonacci Retracement is. It is a process by which potential points of resistance and support are predicted and extrapolated on a chart of prices of a financial asset. The retracements are defined on the basis of the golden ratio and are produced by drawing a trend line between two maximum points and then separating the perpendicular distance with the help of key Fibonacci ratios of 23.6%, 38.2% etc.

These ratios correlate with the mathematical link that exists throughout nature. For example, the ratio of the length of a human arm to his height can be defined in the same way as the spiral formation of sunflower seeds found in the head.

The Art of the Chart Starts Here!

Most of the Forex traders face problems such as too much unnecessary trading, fear of committing trades, wasting precious time with over-analysis, becoming too involved in trading or trading in a very casual manner.

How to improve trade results by avoiding problems in FOREX trading?

By using daily charts, you can evade all problems associated with FOREX trading. Let us see how daily charts help in FOREX trading.

Avoid over trading: Daily charts offer less signals meaning there will be fewer impulses to trade, this doesn’t mean you will be making less profits. The signals will be few in number but more accurate, so you will be making more profits with fewer trades.

Analyzing Signals and Market Indicators Correctly

The job of technical analysts is to explain and understand the signals and market indicators. Signals usually define the profits we can earn or the losses we can suffer if we go wrong. As a trader, you are required to identify these signals by analyzing the market and observing the prevalent trends, because signals don’t pop up by themselves. In a candlestick pattern, for example, the white and black candle appears at any given point of time for any possible reason. So, does it mean the trend will alter if there is an upward trend in the market and a black candle occurs? Of course not! It does not happen, at least not more than the selected oscillator that extends against the current trends prevalent in the market. It is not easy for a new trader to understand that any indicator might form bearish or bullish signals at a certain period of time because they end up misinterpreting the signals and keep reversing their position when in fact they were trading correctly.

Here's a Really Good Forex Pin Bar Strategy!

The pin bar is a combination of a long tail which is usually called a wick, and a small body which is either filled with solid color or is completely hollow. Although this strategy can be deployed with any chart constituting of pin bars, it works best with candlestick charts for reasons that will be explained later. Let us analyze how a trader can take advantage from the pin bar strategy in FOREX trading.

How to trade?

Some occurrences of pin bars indicate an impending reversal in market trend. It will be explained later how a pin bar formation can be used to detect bearish or bullish market trend. To maximize successful trades there are several market entry points available:

Learn to Trade Based on Price Movement

The three best strategies for FOREX trading that are based on price action and involve using the candlestick charts are pin bars, inside bars and Fakeys. With education, discipline, dedication, and patience you can prove to be one of the most successful FOREX traders equipped with the following strategies.

Pin bars are one of the most accurate setups in a trending market when appearing at regular basis in the chart. If the pin bars occur at strategic support and resistance levels, the market trend can be predicted very precisely. They are also very good indicators of reversal patterns, in-case they give a well-defined impression with longer protrusions than the neighboring price bars.

Strategy based on Pin Bars