- Reviewed by James Stanley, Nov. 24, 2021
The Morning Star candlestick is a three-candle pattern that signals a reversal in the market and can be used when trading forex or any other market. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal.
This article explores the following talking points:
What is a Morning Star candlestick?
How to Identify a Morn
LEARN TECHNICAL ANALYSIS: MAIN TALKING POINTS
Technical analysis is a popular field of study for FX and commodities traders as it can help to make trading decisions with an eye on risk management.
At DailyFX, our analysts and strategists share several different technical analysis methodologies and practices in their reviews of the markets, which can inform trading strategies and help to shape key decisions.
DailyFX technical analysis also includes a plethora of research and e
TRADING PSYCHOLOGY: BEYOND THE BASICS
The psychology of trading is often overlooked but forms a crucial part of a professional trader’s skillset. DailyFX is the perfect place to learn how to manage your emotions and hone your trading psychology; our analysts have already experienced the ups and downs, so you don’t have to.
Keep reading to discover their top tips, and to learn more about:
What is trading psychology
How to get in the mindset of a successful trader
The
- Reviewed by James Stanley, Nov. 24, 2021
Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. To put simply, margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool.
Closely linked to margin is the concept of margin call - which traders go to great lengths to avoid. Not knowing what margin is, can turn out to be extremely costly which is why it is essential for forex traders to
- Reviewed by James Stanley, Nov. 24, 2021
The Morning Star candlestick is a three-candle pattern that signals a reversal in the market and can be used when trading forex or any other market. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal.
This article explores the following talking points:
What is a Morning Star candlestick?
How to Identify a Morn
- Reviewed by James Stanley, Nov. 24, 2021
The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move.
Rising wedges appear regularly in the financial markets and traders gravitate towards the pattern because of its simplicity in identification and application. This article will explain how to spot a rising wedge on forex charts and how to trade them.
LEARN TO TRADE THE RISING WEDGE:
In spring 2020, the temporary closures of professional sports leagues during the initial coronavirus pandemic lockdown, coupled with the infusion of fresh capital into financial markets by the Federal Reserve and US Treasury, anointed a new class of retail traders in financial markets. This wave of new market participants brings with it a wave of liquidity that had been otherwise out of the reach of traditional financial markets.
Click here to read 'Why a Rise in Reta
- Reviewed by James Stanley, Nov. 24, 2021
Lagging indicators are often misunderstood in their foundations however, they are a great way to analyse financial markets. This article will outline:
What lagging indicators are
Examples of lagging indicators
Benefits of lagging indicators
WHAT IS A LAGGING INDICATOR?
A lagging indicator is a tool used by traders to analyse the markets using an average of previous price action data. There are multiple lagging indicato
- Reviewed by James Stanley, Nov. 24, 2021
Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Being aware of these errors, can help traders become more efficient in their forex trading. Although all traders make trading mistakes regardless of experience, understanding the logic behind these mistakes may limit the snowball effect of trading impediments. This article will o
Reviewed by Nick Cawley on December 16, 2021
Forex speculation is the name of the game in trading. Every trader, at some point or another, has to click ‘buy’ or ‘sell’ and commit to a position based on their analysis even though there is no guarantee of success. Unfortunately for traders, the market can have a very different viewpoint of the market and this can bring about a moment of serious introspection.
This article seeks to deal with some of those har
Penny stocks, or penny shares, remain a firm favourite among traders. Check out our top penny stock trading tips for beginners – and find out how you can buy, trade or invest in these shares with us.
Source: Bloomberg
Shares Commodities Penny stock Stock CFD Stock trader
- Reviewed by James Stanley, Nov. 24, 2021
Many people think that trading foreign exchange (FX) requires a lot of time to research the market and to identify trading opportunities. However, the 24-hour nature of FX makes it easier for part time day traders to take advantage of trends in currencies because they are not bound by when an exchange allows them to trade. Therefore, forex trading can be convenient for individuals who cannot afford to invest large quantities of time on trading.
- Reviewed by James Stanley, Nov. 24, 2021
The New York forex session is one of the most liquid forex trading sessions. When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day.
WHAT TIME DOES THE NEW YORK FOREX SESSION OPEN?
The New York forex session opens at 8:00 AM ET and closes at 5:00 PM ET. The ‘overlap’ occurs when the US Forex session overlaps with the London forex market session. The London Forex market se
- Reviewed by James Stanley, Nov. 24, 2021
WHAT ARE CANDLESTICKS IN FOREX?
Forex candlesticks provide a range of information about currency price movements, helping to inform trading strategies
Trading forex using candlestick charts is a useful skill to have and can be applied to all markets
What could possibly be more important to a technical forex trader than price charts? Forex charts are defaulted with candlesticks which differ greatly from the more traditional bar cha
Spiking inflation has been a hot-button topic in 2021, but U.S. Treasury yields have actually declined in recent weeks, suggesting there may be more to this story than meets the eye.
This story ran in June 2021 and may have dated references, but it remains relevant and a fascinating read for traders
Like an ominous scene from a classic horror movie, rising inflation in 2021 was expected to be the boogeyman that killed the “everything rally” in 2021. But with the
S&P 500 u
- Reviewed by James Stanley, Nov. 24, 2021
The primitive forces of capitalism rule markets like the laws of gravity. Buyers and sellers provoke a battle to find a happy medium agreement in every financial market. As prices dance around on charts, traders are often looking for reasons to explain price movements however, the underlying source of price movement boils down to the relationship between supply and demand.
Generally, positive news means increased demand and lessened supply – e
- Reviewed by James Stanley, Nov. 24, 2021
FOMO – Fear of Missing Out - is a relatively recent addition to the English language, but one that is intrinsic to our day-to-day lives. A true phenomenon of the modern digital age, FOMO affects 69% of millennials, but it can also have a significant bearing upon trading practices.
For instance, the feeling of missing out could lead to the entering of trades without enough thought, or to closing trades at inopportune moments because it’s what o
- Reviewed by James Stanley, Nov. 24, 2021
The COT report is a weekly sentiment report that can provide forex traders with important information on the positioning of currency pairs. Issued by the Commodities Futures Trading Commission (CFTC) the COT report can be cross-referenced with a trader’s underlying forex strategy.
The forex market is not the only financial market included in the COT report analysis, which makes this valuable commentary for all traders.
COT Report Analysis
TRADING WITH THE HARAMI CANDLE: MAIN TALKING POINTS
The Harami candlestick pattern is frequently used in forex trading to identify trend reversals or extensions. Technical traders respect the indications produced by the Harami candle which makes this pattern invaluable in a trader’s arsenal. This article will cover the following principal topics outlining the Harami candlestick pattern in forex:
What is a Harami candlestick?
Uses of the Harami candle in forex trading
Har
STOCK TRADER SARA GOLDSTEIN ON DEVELOPING AN EXPERTISE
Sara Goldstein clearly remembers the cold day in January 2015 when the Swiss National Bank suddenly dropped its cap on the franc sending the safe-haven currency soaring against the Euro. In minutes, the Swiss Franc rose nearly 30% against the Euro. The move bankrupt some stock traders caught on the wrong side of the trade. “There are different types of volatile days. There are the ones you can predict, like a Fed rate decision, and th
- Reviewed by James Stanley, Nov. 24, 2021
WHAT IS A TRADING JOURNAL?
A trading journal is a log that you can use to record your trades. Traders use a trading journal to reflect upon previous trades so that they may evaluate themselves, and you should too! You can use journals to evaluate where you can improve your trading. They are a useful form of record keeping.
WHY TRADING JOURNALS ARE USEFUL
Main reasons to keep a trading journal include:
They help you identi
- Reviewed by James Stanley, Nov. 24, 2021
The video above focuses on the main aspects of the trading checklist and this article seeks to unpack further aspects of the trading checklist in greater detail.
WHY YOU SHOULD USE A TRADING CHECKLIST
Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Maintaining a trading checklist presents traders with a list of questions
- Reviewed by James Stanley, Nov. 24, 2021
TRADING GOALS - MAIN TALKING POINTS:
Why set trading goals?
What your trading goals shouldn't be
The effectiveness of process-oriented goals
Goal tracking and measuring your progress
Trading goals: A summary
Setting trading goals can be a useful endeavor to help you navigate the markets, but some goals are more useful to set than others. In this piece, we’ll look at th
- Reviewed by James Stanley, Nov. 24, 2021
There are many types of forex traders, and each demands a different approach. Whether you choose the fast-paced sprint of day trading or the prolonged marathon of position trading, selecting the right style for you will maximize your chance of success. Read on to learn more about the types of forex traders active in the world’s largest market.
THE SIX DIFFERENT FOREX TRADER TYPES
Forex traders tend to fit into one of the following six tra
- Reviewed by James Stanley, Nov. 24, 2021
TRADING EXIT STRATEGIES THAT ARE EFFECTIVE:
Traditional stop/limit (using support and resistance)
Moving average trailing stops
Volatility based approach using ATR
Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine how successful the trade is. This article hones in on 3 trading exit strategies th
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