FX Trading Market Analysis 101 | Regal Core Markets

 

Technical Analysis relies on the usage of charts such as those found in the Regal MT4 Trader. Charts allow traders to study historical price movements to determine the future direction of an asset’s price. The basic idea behind Technical Analysis is that everything that is important to a trader (i.e., everything which affects an underlying asset) has already been reflected in its price. If the only important thing in the study of a financial market is the price of an asset, then price action is the only thing a trader needs to pay attention to and understand in order to trade—that is the premise of Technical Analysis.

While the study of price charts remains very subjective, on a broad level, trading off Technical Analysis can be thought of as a self-fulfilling prophecy—that is, that traders will trade according to price patterns they observe, in turn reinforcing those very patterns.

Both the Regal MT4 Trader and Regal FX Derivatives Trader allows you to trade directly off charts through the MT4 platform itself. Here are some different types of price charts which you should familiarize yourself with so as to ensure you will be able to utilize them to their full potential and gain an edge on the international FX market:

Line Chart

 

While line charts provide the least amount of data as compared to other price charts, they are extremely handy for determining trends at a quick glance. This is a case where less may indeed be more, with the chart only displaying the current and close price of an asset.

Many traders believe the close is the most important price of the day, and this is where the line chart shines, with its simplicity allowing trends to be defined without extraneous information. Due to the limited amount of information provided in a line chart, however, it is important to note that it is not ideal for traders looking to place Stop Loss or Take Profit orders.here the line chart shines, with its simplicity allowing trends to be defined without extraneous information. Due to the limited amount of information provided in a line chart, however, it is important to note that it is not ideal for traders looking to place Stop Loss or Take Profit orders.

 

 

Comments

Post a Comment

Popular posts from this blog

Why trade cryptocurrencies with Regal?

Image
Go short as well as long Take a position even when you expect cryptocurrencies to fall in value, not just when you expect it to rise No exchange account needed Get started straight away, without the hassle of an exchange account Risk Control To counter the volatility of cryptocurrency, we have a preset algorithm to limit our risk exposure Trade on leverage Gain exposure to major cryptocurrency pairs without tying up lots of capital Improved liquidity So there’s more chance of executing your full trade at your chosen price
Read more

What is currency trading? - Regal Core Markets

  According to a study published by Regal Core Markets , “Forex or Foreign Exchange (FX) refers to a type of trading that occurs across different currencies and markets. Compared to other types of financial exchanges, Forex is deemed to be the most stable because it has the busiest traffic with an estimated total of more or less $4 trillion daily transactions. It is also considered the most liquid since Forex utilizes no centralized governing body with transfers occurring through brokers, banks, financial institutions, and dealers.” Forex trading is all about the buying and selling of currencies in pairs. Traders must have information about how much the currencies are worth to one another. This relationship is what defines a currency pair. A currency pair quotes two currency abbreviations, followed by the base currency’s value, which is based on the currency counter. According to Investopedia , “currency pairs compare the value of one currency to another — the...
Read more

Strength in Diversity - Regal Core Markets

Trading through Regal Core Markets allows you to benefit not only from world-class trading technology, innovative user features and superior charting capabilities, but also from a wide range of financial instruments. We offer competitive spreads which are aggregated from the most recognized banks and institutions around the world, allowing you access to optimal market conditions all the time. Trade across multiple asset classes such as FX, FX Derivatives, Precious Metals, Commodities and Stocks. No matter your preference of financial instrument, you will be able to trade on it through our Regal MT4 Trader and Regal FX Derivatives Trader . Having such a diverse range of choices in terms of financial instruments is a surefire way to strengthen your trades and place yourself on the path towards unrivalled success.  
Read more