Naked Forex Trading

Naked Forex Trading

Naked forex trading is defined as trading without the help of indicators. It can also be called price action trading. Naked trading can be considered a type of technical analysis because it is the only information a trader has at his/her disposal. What is the naked forex trading? The concept of naked trading is based on the current market situation. It does not rely on complicated indicators; rather, it focuses on the price in the present. The naked trading is all about what traders can see on the candlestick charts, and then make their trading decisions. Indicators are usually based on …READ MORE

What Is The Rounding Bottom Pattern & How To Trade With It

Rounding Bottom Pattern

The Rounding Bottom is a chart pattern that identifies a series of price movements. These price fluctuations appear like an alphabet U. What is the Rounding Bottom pattern? As its name suggests, Rounding Bottoms is a kind of slope that occurs after a long downtrend. The Rounding Bottoms mention that the price is about to reverse. Usually, traders look for the pattern on a weekly or a monthly chart; however, Rounding Bottoms rarely emerge on the chart. The Rounding Bottom signifies that there is a strong supply, making the price decline. After this, the upward movement happens only when the …READ MORE

What Is The Volatility Index & How To Trade With It

Volatility Index

The Volatility Index, or VIX, is a market index that represents the market’s volatility of the next 30 days. It was created by CBOE (Chicago board options exchange) in 1993 for the S&P 500 Index. Since then, the VIX is commonly used as a gauge of U.S. equity market volatility. The VIX provides a measure of market risk and traders’ sentiments. It is also called “Fear Gauge” or “Fear Index.” What is the Volatility Index? Volatility is the measurement of price movements that asset experiences over a certain period. The stronger the price fluctuations, the higher the volatility of an …READ MORE

What Are Failure Swings & How To Trade Them

Failure Swings

In his book, J. Welles Wilder, New Concepts in Technical Trading Systems describes strong market reversals. He used the RSI (relative strength index) to measure these swings. He then gave these sharp price movement names of failure swings. There are plenty of indicators like the MACD, CCI, RSI, and the Stochastics that are plotted separately on the chart. They all give failure swings. However, almost all technical indicators show failure swings in one form or the other. What are Failure Swings? According to J. Welles, failure swings mostly occur in momentum oscillators because they show price movements in a specific …READ MORE

What Is The Triple Top Pattern & How To Trade With It

Triple Top Pattern

The Triple Top pattern is a type of technical analysis that is used to try and predict possible market reversals. What is the Triple Top pattern? Consisting of three tops or peaks, the Triple Top identifies downward momentum of the price and surface in an uptrend. The formation of the Triple Top happens when the price creates three peaks at an equal level. These peaks form resistance levels, and the low points between these peaks are the swing lows. After the appearance of the third peak, the Triple Top pattern completes. For example, assume the price of EUR/USD makes its …READ MORE