Should a colleague, one who has a reputation of borrowing money and returning it later than proposed, ask to borrow $100 and offer to pay back $110 the following month, what would your initial thought be? It’s probably not worth the risk or the hassle, right? However, what if the said colleague offered to repay … Continue reading Understanding Risk/Reward Ratio in the Foreign Exchange Market
As the sea rises and falls along a shoreline, price action ebbs and flows in a similar manner. Perhaps one of the most disregarded facets of technical analysis, yet one of the most essential, is the identification of market structure. Many analysts identify market structure as an art form, constantly evolving from one phase to … Continue reading Basic Market Structure in the Forex Market
Successful traders always follow the line of least resistance – Jesse Livermore. While intricate trading strategies may impress, it’s unnecessary to succeed in the financial markets – keeping things simple is essential. Most trading systems have one thing in common: the trend. In retrospect, a trending market is easily recognised on a price chart. The … Continue reading Exploring the Power Behind Trend Line Studies in Forex
Developed by Scott Carney, the harmonic bat pattern, a variation of the Gartley harmonic pattern, is a 5-point retracement structure composed of Fibonacci measurements used to create a potential reversal zone, or PRZ.
There will be times a trader finds themself caught up in the motions of trading that they lose sight of the primary objective: protecting capital. A trader’s cut-off point is the point in which a trader’s pre-determined risk tolerance is met. Think of it as a pressure relief valve. Like a boiler has a pressure … Continue reading Do You Have a Cut-Off Point?
