Forex Signals, Analysis, and Community - since 2008

Forex Q&A

dip or dips

dip or dips

A dip is a drop in the price action of a currency. Traders frequently wait for dips to buy in uptrend markets or in overbought markets.

Crosses or Cross Pairs

Crosses or Cross Pairs

“crosses” are basically pairs that do not include the USD. For example, the GBP/JPY and EUR/JPY are both popular crosses. It is called a cross because your are taking two pairs, for example the GBP/USD and the USD/JPY and crossing … Continue reading

consolidation pattern

consolidation pattern

Certain chart patterns (examples are the pennant, the flag and the broadening formations) that indicate a market is consolidating its position. Consolidation periods are thought to indicate periods of indecision among traders for the direction of a pair as traders … Continue reading

confirmation

confirmation

A confirmation signal is used by traders to confirm the direction of their trade. Different traders prefer different tools as confirmation signals – candlesticks, technical indicators, news events. In theory, waiting for confirmation reduces the amount of risk you take … Continue reading

channel

channel

Two parallel lines on a chart that contain current price action. The channel top should connect at least two highs on the currency charts and the channel bottom should connect at least two lows on the charts. Channel tops are … Continue reading

candlesticks

candlesticks

The most popular method of viewing currency charts as traders can very quickly get a lot of information about the currency pair, including highs, lows, open and close prices. Generally candlesticks are two colors with one color meaning it is … Continue reading

break or breakout trade

break or breakout trade

(also called a break)- a “break” or “breakout” occurs when an important level of support/resistance has been broken and the pair may be starting a new trend. Breaks are frequently used in swing trading to indicate a change or reversal … Continue reading

ATR (average true range)

ATR (average true range)

The Average True Range, or ATR, is an indicator that is used to help gauge the volatility of a given currency pair on any timeframe. Many traders use this information to help determine their stop size. For example, if the … Continue reading

Should I buy/sell right now? Is EUR/USD going up/down next?

Should I buy/sell right now? Is EUR/USD going up/down next?

We would love to help everyone that we can. Unfortunately due to time constraints, the vagueness of a lot of these questions and the volume of emails we get every day there is no way we can answer them, and … Continue reading

What timeframes do you use?

What timeframes do you use?

I primarily use the 1h and 4h charts. Occasionally I dip into the 30m for an entry point, and I regularly check the daily, weekly charts for a better view on an up or downtrend. But 90% of the time … Continue reading

LEGAL DISCLAIMER AND RISK WARNING

Foreign currency exchange trading is highly speculative and is suitable only for those who (a) understand and are willing to assume the risks involved, and (b) are financially able to assume significant economic losses. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Trading on margin can amplify both gains and losses in your account. Before deciding to trade foreign currencies, you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign currency exchange trading and seek advice from an independent financial advisor if you have any doubts.

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