ADX was created by Welles Wilder in 1978, the Average Directional Movement Index (ADX) is a technical analysis tool used by traders to speculate trend strength as well as trend direction. It is common investing wisdom that detecting and trading in the direction of a strong trend is a profitable strategy with minimal risk. This […]
Trading will be more profitable for you if you execute it correctly. Thus, there are indicators specially designed to understand the strength of trends or at least parts of them. The Average Directional Movement Index (ADX) is an indicator that shows both processes. In this blog, let’s explore the Average Directional Movement. J. Welles Wilder […]
The head and shoulders pattern is a famous price reversal pattern that allows you to analyze if an ongoing uptrend is coming to an end. The head and shoulders chart pattern is well known for trend reversals. It helps you to get an early exit signal. By exiting a stock at the right time, you […]
While trading head and shoulder patterns you should consider a whole range of factors, including the placement of stops, entry levels, and targets. This head and shoulders chart pattern is used by experienced traders to speculate both Forex and stock markets. The benefit of these patterns is to define areas to set risk levels and […]
In general, the spread is the difference between Ask and Bid prices. It was calculated in pips. A trader can significantly profit by using spread. During trading, spread size plays a vital role, because a high spread results in significant losses to the client during active trading. If you wish to speculate the market in […]
Fixed spreads have smaller capital requirements, thus trading with variable spreads needs a lot of liquidity which many retail traders cannot afford. So, fixed spreads offer a viable and cheaper alternative. Better trade planning is execute by using fixed spreads while trading. This is because traders always have a clear plan of what they can […]
