Forex Trading

However, the bulls weakened with each attempt, and the bears became stronger. This is evidenced by the formation of several bearish patterns, including reversal patterns, for example, hanging man, shooting star, and marubozu. Unlike the evening star, the bearish shooting star is a weak trading signal and does not always …

The difference is that the inverted hammer will have a bear run prior to the candle you’re looking for. In the intricate world of candlestick patterns, the Shooting Star stands out as a critical bearish reversal indicator, particularly effective after an uptrend. However, its true power lies in its use …

Shorting or taking long positions tends to be profitable as long as the investment strategy is developed with sufficient study and analysis. It is advisable to always study the two or three candlestick patterns that follow the shooting star patterns to first confirm the downtrend and eliminate any false signals. …

Conversely, learning from missed opportunities is equally instructive. A common oversight is ignoring divergence signals when trading in strongly trending markets, dismissing them as mere anomalies. A trader once recounted missed gains in a bearish RSI divergence in GBP/JPY during a robust uptrend. How to trade extended divergence? RSI and …

Identifying divergence in forex trading is a skill that, once mastered, can significantly enhance a trader’s ability to forecast market movements. Several technical indicators excel in spotting divergence, each adding a unique perspective to the analysis. Divergence in forex trading offers a window into the underlying momentum of the market, …

Instead, traders study a correlated asset and look for mismatches there. A typical instrument here is the dollar index (USDX), which is used to replace the indicator. It looks at two or three correlated trading assets to identify institutional accumulation or distribution. Let us continue by exploring the different types …