Analyzing trends and price changes are two very important things traders focus on to gain profit. Trends allow traders to predict future prices and how they would change.
Two types of trends that exist in the market today are uptrends and downtrends.
Each type of trend tells a different story and has its own impact on a traders success in the market. While...
GBPUSD is poised for a breakout if BOE sounded hawkish tomorrow.
- The Bank’s Monetary Policy Committee meets tomorrow to decide what to do on borrowing costs, which remain at record lows of 0.1%.
- If BOE hinted that it may raise rates in first half of 2022, specially after the inflation hit 10 year high in NOV
- Inflation at 10-year high puts fresh pressure on...
GBPCAD Formed Crab Harmonic Pattern which supports the bullish bias targeting 1.7110
stop loss should be placed at 1.6620
GBP has also lost a key tailwind since the emergence of the Omicron eased expectations for a BoE rate hike this month.
Omicron variant introduced significant uncertainty into global markets, with a BoE rate hike...
A descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that the downward momentum.
the pair is...
What is a rising wedge?
A rising wedge is a technical pattern, suggesting a reversal in the trend . This pattern shows up in charts when the price moves upward with higher highs and lower lows converging toward a single point known as the apex.
There are 4 ways to trade wedges like shown on the chart
(1) Your entry point when the price breaks the lower bound...
Steps for opening a trade based on support and resistance
- Mark support and resistance on the chart by spotting peaks and trough around the same price level
- wait for price bounce from support level / or rejecting from resistance (reversal candlestick would be favoured)
- place your stop loss under the support level and take profit below resistance level in...
A moving average can act as support or resistance. In an uptrend, a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure.
In an uptrend , a moving average may act as support; like a floor, the price hits the level and then starts to rise again. (1)
In a downtrend , a moving average may act as resistance; like a...