Moving Average Convergencedivergence Macd

The MACD is another trend indicator based on momentum and market sentiment that shows the relationship between two moving averages of price. It is calculated by subtracting the EMA of the higher number of periods from the EMA of the shorter periods. Another EMA of an even shorter period is used as the signal line and serves as a trigger for buying or selling. The standard values are 26, 12, and 9, respectively. In the figure below, the value resulting of the subtraction of both moving averages...

Scalping

The main idea behind the scalping strategy in FOREX trading is to take very small profits very quickly from very small movements of price, such as 2 to 10 pips. The trades normally are entered and exited within minutes or even seconds. Small profits add up because the number of daily trades can be very high, ranging from 20 to 100 trades on average. Scalping is considered to be a risky trading style. However, this will depend on which times of the day and which types of markets are used....

Trading Psychology

Most traders can spend years trying to find and develop the right system with the expectation that it will yield excellent results and make a lot of money for them. However, very few would dedicate as much time to delve deeply in their own psychology as human beings and as traders, thus neglecting the most important part of the FOREX trading scene the individual trader. Having a good system, coupled with a sound money management and a disciplined trading plan, is fundamental indeed. But it will...

Pip Range Bar Or Candlestick Charts

Pip range bar charts were designed by Vicente Nicolellis, a Brazilian broker and trader, in 1995. He wanted to solve the problem of handling the extreme volatility of local markets and finally decided that the best way to achieve this was to take time out of the equation, focusing solely on price. This is similar to a point and figure charts approach, where only price changes are recorded. Constant ranges are used to define the bars or candles. Usually, you can find ranges of 8, 10, 15, 20, and...