What is a hammer candlestick? Considered a reversal formation and forms when price moves well below open, but then rallies to close near open if not higher. (Inverted hammer is the mirror opposite) Forms a candlestick with a long lower shadow (tail), and a small body with little or no wick–looks like a hammer, or […]

How is Forex regulated? Forex is the largest, most liquid market on the planet. That size and scope creates unique challenges regarding market regulation. How do you regulate a market that is trading 24 hours a day, all over the world? There is no centralized body governing the currency trading market; instead, several governmental and […]

What is a Doji? Why are doji candles important? So how do I use doji to place trades? Doji candles in determining risk vs. reward Disadvantages of doji patterns: Determining a winning percentage: What is a Doji? A Doji forms when the open and close of a candlestick are equal, or very close to equal. […]

What are bullish and bearish flags? Bullish flags are formations occur when the slope of the channel connecting highs and lows of consolidating prices after a significant move up is parallel and declining. The trend before the flag must be up. Bearish flags are formations occur when the slope of the channel connecting highs and lows […]

11 chart patterns you should know? When you analyze trading charts, you’ll see certain formations crop up repeatedly. Some traders use these to find new opportunities. Here, we’re going to explore the chart patterns you should know and recognize. What is a chart pattern? A chart pattern is a set price action that is repeated […]

What is the 5-3-1 trading strategy? The 5-3-1 trading strategy is a simple guide used by forex traders to help establish the best forex trading plan for their own style. The 5-3-1 strategy is especially helpful for new traders who may be overwhelmed by the dozens of currency pairs available and the 24-7 nature of […]