Trading Articles

Decision Point Price Momentum Oscillator

Let Us Show You How it Really Works!

Oscillators are particular stock phrases that scrutinize the utility of a particular market. Most oscillators are in general lagging indicators because they evaluate and pile up the facts and statistics in reaching at the product of their estimate. They provide you a superficial analysis of the information they are planned to evaluate. The gauge referred to as the Decision Point Price Momentum Oscillator (PMO) is a set-up by which you could carry out relative force status of various stocks, mutual funds and indicators. It also serves as an impetus gauge for evaluating the following:

  • Progress of price
  •  Inner force  
  • Arriving at judgments of purchasing and vending

This twofold task is the only one of its kind, on account of the fact that while checking it out in its role as a customary scrutiny set-up, we also acquire a good judgment of the likely performance of the gauge within the milieu of comparative strength gyration.

How to Improve Your Profits with Micro Forex Account

A Successful Forex Micro Account

In the past few years, forex trading has become quite popular among traders, because of the potential to earn high returns. With the advancement in technology, traders can quickly access the information now and easily learn about forex trading online. Therefore, if you wish to learn about its different tools and techniques, you should consider using Micro Forex Account, because it provides a low trading risk and you can earn high profits with the minimum risk of loss.

Identify the Difference between Forex Trading Accounts

It is important to understand the basic differences between the forex trading accounts. With the regular trading account, you may have a minimum capital requirement of thousands of dollars before you start trading. On the other hand, the micro account does seem like a great opportunity where you need to have a small amount of investment, but you must use the right amount of initial capital to start trading with this account. So, when you choose to trade with a micro account, make sure you select the reasonable broker, who can efficiently manage your trading account.

How to Improve your Development in the Forex Market

Improve Your Development in the Forex Market

Most of the traders, who start trading in the forex market, consider it gambling where they can earn huge profits on their investments. However, what they do not realize is that forex trading is not a poker game and the forex market is not a casino. In fact, it is a proper business that demands effective decision making and time management. Like any other business, forex trading also has a potential to generate huge profits if a trader is able to design reasonable strategies on the basis of market signals, news feeds, announcements and constantly changing trends. So, being a trader, if you wish to make profits through forex trading, you have to take it as a serious business and devise your strategies accordingly.

Every business carries a risk of loss. There are many traders who stop trading altogether if they suffer losses in forex trading. Therefore, when you invest in the forex market, you have to understand that you may face losses at a certain point while trading, and in order to be confident about your trading decisions, you should start with the demo accounts before jumping into the real market.

The Index Option Trading

How Can I Use Index Option Trading?

Index option trading is a category of investment. An index is a record of a number of different stocks that are used in common with others. It symbolizes the combination aggregate worth of all of them. Indices are possibly one of the most inferiorly used trading resources owing to their deficiency of recognition and their reserved status. All those who are not knowledgeable with the indices, it would be sufficient to learn that indices are meant to reveal and assess alterations in the financial system.An example is the Dow Jones Industrial Average which denotes the worth of the thirty leading and most extensively held trade stocks on the New York Stock Exchange. The Standard and Poor's 500 is one more index that characterizes 500 diverse stocks. These two acclaimed indices are often used for determining the advancement of the financial system and the broad-spectrum vigor of the stock market.

The Almighty Dollar and the index option trading:

By and large the worth of dollar will constantly influence the value of an index. Indices are employed as a means to gauge certain market conditions and chattels; hence if the price of the dollar upsurges, so does the price of some but not all indices. The reverse could be supposed when the value of the dollar goes downhill; some indices will go up, others will plunge in worth. Although indices do not hold any true worth verifiably, yet their price is in some way shaped by market resources and circumstances. When the value of the dollar is going up, the well-liked resources to consign call trades with would be as follows;

Advance Decline Line Strategy

How Does the Decline Line Strategy Work?

The Advance-Decline Line (AD Line) is a range of values converged on Net Advances, which is the total of proceeding capital stock, excluding the number of decreasing capital stock. Net Advances are distinct and crystal clear, when advances exceed declines and downbeat when declines go beyond advances. The AD Line is a collective estimate of Net Advances. It boosts when Net Advances are explicit and drops off when Net Advances are downbeat. Generally, the advance-decline data originates from the NYSE or NASDAQ on a daily basis. Brokers can use the AD Line for the index and compare it to the movement of the bona fide indicator. The AD Line is meant for assurance of a cost increase or decrease with identical motions. Bullish or bearish disparity in the AD Line specifies adjustment in the participation that could indicate price invalidation.

Breakout Strategy with Drop and Stop Trade

Breakout Strategy With Drop & Stop Trade

This strategy is somewhat similar to the Pop and Stop trading strategy, because a lot of principles associated with this strategy are the same as used in Pop and Stop trading.

If you look at the chart, you can see a channel breakout trading pattern, which is favorable when the market opens. At the right side of the chart, a price moving in an upward direction can be seen over a narrow range on the left side. Although, it was not possible to have the entries at this point using the pop and stop strategy, yet, an evening star candlestick pattern was created by the price at the weekly pivot point (shown as blue line). Based on other confluences, you can enter a short trade once the first long candle is down.

How does Fibonacci Resistance Lines Work?

Utilizing Fibonacci Resistance Lines

Every trader should know how to use the Fibonacci Resistance lines on the price action. In fact, the Fibonacci ratios carry great importance among binary traders, because it can be applied to all the price patterns. Straight lines are used to represent the support and resistance points on the key Fibonacci levels before they move toward the original point. These levels are formed by creating a trendline between two extreme ends, after which the vertical distance is separated by the fundamental Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. If you are a binary trader, you can easily find the high and low appearing on a price chart. Fibonacci links these high and low, and as a result, Fibonacci ratios are formed.

 The Fibonacci Retracement is a prospective retracement of the original price movement of a financial asset. Stops and Limits are visible near the Fibonacci lines, and you can also see Puts and Calls in that area. Although, you cannot predict the market of the underlying asset by using Fibonacci lines, yet, these lines can be used as the markers to identify the support and resistance points. This is the reason why binary traders prefer to use it, whenever they trade in the binary options market.

Understanding Ascending Triangles and RSI

Understanding Ascending Triangle & RSI

When you are trading in the binary options market, there are a number of strategies and tools that can be used to make profitable trades. Moreover, you can also trade successfully if you learn to use the market signals efficiently. For example, if you know how to trade ascending triangles, you can earn substantial profits in no time. Ascending triangles are upward trending signals, and the price should move in an upward direction when they appear on a chart. The following discussion also applies to descending triangles, because one of it is applied when the market is bullish and the other one is applied when the market is bearish.

Triangle usually moves within 5 waves, labelled as a, b, c, d, and e where the price creates a horizontal line for the trend line from b to d. This is similar to the price-building energy for an upward trending break, and is described by a sequence of higher lows, which means that the price tries to break out of the already built lows just to fail every time and move in the other direction until the trend line from b to d, is broken down.

Binary Options Martingale and Anti-martingale Strategy

It's a Bird, It's a Plane, It's the Martingale Strategy

Being a binary options trader, your primary goal is to always place successful trades in order to earn higher profits. This can only be done if you devise the right strategy by keeping in mind the current trends and formation of patterns in the binary options market, as it enables you manage your investments and place your trades wisely.

Among many other binary options strategies, traders also use two strategies called a Martingale strategy and the Anti-martingale strategy.

Martingale Strategy

Martingale strategy is used if a trader raises the bet two times the normal bet after the previous bet fails. As a result, a trader is able to get a winning trade. This strategy is based on the expectation that by doubling the bet, previous losses will be compensated and a trader will receive his allowed profit. However, being a binary options trader, when you use this strategy, make sure that not only you double all the previous bets, but also the aggregate of every bet that was lost. It can also be understood with the help of a following example:

Understanding Breakout Strategy with Drop and Stop Trade

Stop, Drop and Trade!

This strategy is somewhat similar to the Pop and Stop trading strategy, because a lot of principles associated with this strategy are the same as used in Pop and Stop trading.

If you look at the chart, you can see a channel breakout trading pattern, which is favorable when the market opens. At the right side of the chart, a price moving in an upward direction can be seen over a narrow range on the left side. Although, it was not possible to have the entries at this point using the pop and stop strategy, yet, an evening star candlestick pattern was created by the price at the weekly pivot point (shown as blue line). Based on other confluences, you can enter a short trade once the first long candle is down.


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