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Intermediate Level

//Intermediate Level

What is inflation? How it influences the currency rates?

Inflation is the sustained rise in prices in an economy over a period. Say, you had stuffed a $1 bill somewhere when you were a child and accidentally you come across it now. Can you buy what you desired at that young age now with the same $1 bill? Of course, it's not possible since the prices are not the same, then and now. It is nothing but inflation. And the same context can be interpreted in two ways. One, it is the depletion in purchasing power of the currency. Two, the increase in the price of the commodities. [...]

What is inflation? How it influences the currency rates?2019-06-29T09:41:12+04:00

GDP : What a forex trader needs to know to better the market

GDP - You might have heard politicians, business people, economists, traders and the common man (here and there) talking about it often times. If you’re confused about what it is and how it affects or say dominates, these many paradigms, you can have your answer here. What is GDP? Gross Domestic Product, as the name indicates, is the total monetary value of all the goods and services produced within the country in a certain period, usually a year or a quarter. Note: A company has its headquarters in country A, but produces its goods in country B,  then country [...]

GDP : What a forex trader needs to know to better the market2019-06-29T09:44:17+04:00

What are Bollinger Bands? How to master Bollinger Band squeeze

What are Bollinger Bands? Bollinger Bands are two standard deviation lines drawn in parallel to a simple moving average. The bands move parallel, in tandem, with the moving average. The two main applications of the bands are to identify -- consolidation, by Bollinger band squeeze and the overbought and oversold condition in a sideways market. The most commonly used SMAs in Bollinger bands are  20 and 25. It was named after its developer John Bollinger. The bandwidth of the Bollinger bands The difference between the upper band and the lower band is the bandwidth. The bandwidth represents the maximum volatility [...]

What are Bollinger Bands? How to master Bollinger Band squeeze2019-06-22T15:20:43+04:00

RSI Indicator | How to trade the overbought & oversold condition?

Technical Analysis isn't just about trading the trend. It has techniques up its sleeve to identify the reversal. And the best among the lot to identify the reversal is the Relative Strength Index, aka RSI indicator. It defines the overbought and oversold zones of the market and the RSI crossover from the zones signals a profit booking (correction) rally or trend reversal. So when the trend bucks, make bucks with the RSI indicator. Relative Strength Index - The momentum oscillator RSI indicator is a measure of strength and momentum of the price moves. And the measure is plotted on [...]

RSI Indicator | How to trade the overbought & oversold condition?2019-10-22T13:26:18+04:00

Support and Resistance: Can the indicators do the trick for you?

The concept of support and resistance is beyond the paradigm of chart patterns, indicators or even the technical analysis. It is the classic case of supply and demand acting at specific price points. But are they bound to remain the same ever, at the exact spot? Let's visit the basics first, before delving deeper into the subject for your answer. Support and Resistance Support is the area in which maximum demand for an asset class exists. The buyers outnumber the sellers in the support areas. On the flip side, the area which has maximum supply is the resistance. Likewise, [...]

Support and Resistance: Can the indicators do the trick for you?2019-04-05T11:13:14+04:00

Moving Average | SMA | EMA – Oldest trick or the golden ticket?

Regarded by many as the oldest, lamest trick on the book -- Moving Average -- yet it identifies the trend precisely and remains contemporary. However, it can get you chopped in a choppy market. So, the tricky part is knowing when to embrace the moving averages, SMA and EMA, and when to let go. What is a Moving Average? Moving average is a lagging indicator which smoothens the past price action, filters the noise and decodes its complexity. It doesn’t predict the trend. Instead, it merely identifies the trend. Why is it important? In any field, be it sports or finance, [...]

Moving Average | SMA | EMA – Oldest trick or the golden ticket?2019-05-04T10:19:33+04:00

Technical Analysis – The art of forecasting supply and demand

There are two factions in market analysis. One being technical analysis and the other being fundamental analysis. Both the camps are extreme and contrast. They diverge in their view and the method of analysis but converge at one point- forecasting. Technical Analysis Technical Analysis is a technique to infer the supply and demand for an asset.  The inference is made upon the studies of the historical price action and psychology of the investors. It disregards the study of the intrinsic value of the asset and analyzing the politico-economic news. Well, from the outset, it might seem ridiculous, but it isn’t. [...]

Technical Analysis – The art of forecasting supply and demand2019-05-13T17:25:39+04:00