What’s Better: Bars or Japanese Candlesticks?
There are three types of charts in MT4 terminal: candlestick, bar, and line charts.
Forex Basics
Gap in FOREX: Definition, Features, and Strategy
Successful Forex trading requires not only a good trading system, but also understanding of all the market processes, their correct interpretation, and application.
Correlation in Forex
Correlation is a statistical relationship between two and more random variables. The Forex correlation coefficient usually varies from -1 to 1 or sometimes from -100 to 100.
Synthetic Currency Pairs
A synthetic currency pair is a pair artificially created by opening two opposite positions for other currency pairs in Forex. As a rule, traders resort to the creation of a synthetic currency pair when a broker or a liquidity provider itself doesn’t have this currency pair in their set of symbols.
“Head and Shoulders” Technical Analysis Pattern
“Head and shoulders” pattern is probably the most famous of those occurring in the market and the one from which people start getting to know technical analysis and the market as such.
“Flag” Pattern in Forex
The “Flag” pattern is a technical analysis tool in the Forex trading that predicts continuation of the current market tendency (trend) and consists of two parts: the “flagpole” and the “Flag” (the channel within which the price moves). Here is an example: If we consider the “Flag” pattern in terms of waves, the “flagpole” is an impulse, and the “Flag” itself is a retracement. When the retracement is over, a new impulse occurs and thus the previous trend resumes.
Classical “Pennant” Pattern in Forex
The “Pennant” pattern is a technical analysis tool; when the pattern is complete, trend continuation is expected. The pattern itself represents a temporary pause (retracement) in the actively developing trend.
