Category: Trading

What is the Wedge Pattern? One of the pillars of technical analysis theory is the idea that market mentality is mob-like, that price movements will often repeat itself and that those movements are identifiable and predictable. One such is the Wedge Pattern. The Wedge Pattern forms in a trending market and often signals continuation and not just any continuation, but a long-term continuation that will lead to payouts. What is a Wedge Pattern? A Wedge Pattern is a form of triangle that forms within a trend, like a flag or pennant pattern…

Becoming a trader is easy. Open an account with a broker of your choice, and dive right into the exciting world of financial markets. Becoming a good trader, capable of making stable gains and relying on trading as his primary source of income, however, is much harder. What is the difference between the two and what qualities do you need to develop in order to call yourself a great trader? Jack Schwager, the author of “The Market Wizards” book series, seems to know a lot about successful traders, their career paths…

The relative strength index or the RSI is a momentum oscillator used to measure the velocity and magnitude of directional price movements.  The indicator provides will help you determine overbought/oversold levels, as well as provide buy and sell signals. The RSI indicator with standard settings The RSI is basically a single line that fluctuates in the corridor between 0 and 100. The closer this line gets to the zero mark the higher are the chances for the asset to be oversold. When the RSI gets close to 100, the asset is likely to be…

However, there are two tools that I still use, because in some circumstances they are very helpful. Before we decide to open an order, we seek additional confirmation that our analysis of the situation is correct. When the conclusions resulting from the observation of the price behavior additionally are supported by correct interpretation of what the indicator shows us – we have in some sense a confluence allowing us to make successful trading decision. The indicators with which I did not part with and they accompany me on a daily…

The IQ Option platform offers an extended list of trading instruments to choose from: options, Forex, stocks, commodities, cryptocurrencies and ETFs. For a newcomer, they all may seem identical but in fact behave quite differently. What works for some assets won’t work for the other, and vice versa. Choosing the right asset to trade is a logical step for a rookie investor. And even if you know about the differences, you may want to dig deeper to find the one instrument that suits you best. In order to understand what instrument…

While charts carry historical data for many years back, with past quotes becoming less significant over time, it’s natural to limit your analysis to one (often, more than one) timeframe, which provides enough information to perform a trade. Defining your main timeframe gives you the perfect grounding for identifying the trend and market reversals, and for refining your trade’s entry and exit points with graphical tools and indicators. Choosing the right timeframe is therefore essential for any good technical analysis, which should capture as much relevant data as possible while minimizing…

Trading is a desirable pursuit. However, few become professional traders capable of turning a stable profit. In order to become a PRO, you will need to study and practice a lot. Knowing what to learn and how to sharpen your newly acquired skills is as important as your persistence and diligence. Today’s article is a step by step guide that will take you from a rookie trader to a hardened investor. Learning the basics As with any activity, whether profit-oriented or not, you would want to start with the basics. Seems logical,…

One of the most common problems faced by traders is overtrading. The surprising thing is that not many traders know they have this problem, while even fewer know how to overcome it. Taking up more trades doesn’t necessarily mean more profit. Needless to say, this line of thinking can be detrimental to your trading performance. Following the tips below when you feel the urge to overtrade can help you fight this costly habit. Stop micromanaging the trade Have you ever found yourself constantly adding to a trade or moving around…

With the introduction of a new feature “”, IQ Option traders now have an opportunity to open deals (both Buy and Sell) at the opening price of the asset. This feature is obviously meant to be used when working with Forex and CFDs (contracts for difference) due to the fact that these two instruments are not traded 24/7 and have periods of inactivity. But why would you want to use this new feature and, more importantly, how to get the max out of this seemingly minor change to the platform? Read…