For those who want to enter the foreign exchange market, it will be a hard and grueling path but definitely very profitable. If one wants to make a lot of money this way, then one has to learn to trade forex england so that he will know exactly how to maneuver in this market and ride along the trends in order to make some cash. If one is interested, then here are a few things to know about.
When one starts to learn foreign exchange trading, the first thing that one has to know about would be the chart. Now, most people would make use of the candlestick chart since this is the chart that allows one to see the exact movement of the price. As long as one knows how to read a candlestick chart, then he will have no problem understanding the price movement of a currency pair.
When one looks at the candlestick chart, there are two parts that he has to know of which are the bull and bear candles. A bull candle indicates that the market is heading upward and is usually marked by the color white. The bear candle, on the other hand, indicates a downward movement of price and is usually marked by being color black.
Once one already knows how to read the candlestick chart, then he has to understand how support and resistance zones work. To make it simple, support and resistance zones are simply zones where the price bounced and made some sort of peak shape in the graph. These zones can help one determine whether there is a trend change or a trend continuation in the price.
Just to give an idea, a support level is basically the price level where a downward peak formed. If ever the price level breaks that level, then there is most likely a continuous trend downward that will keep on going down. The resistance level is the opposite of a support level wherein it is a price level where an upper peak is formed and if the price breaks the level it will indicate an upward trend.
Now that one knows the basic concepts of trading, one has to know some basic patterns to know if the market is going up or down. The most basic one is through the M and W patterns. Basically, one has to look for an M and W in the chart and trade based on that.
If one sees an M, it means that the market is bearish or going down and will continue to go down. If the graph forms a W, then it means the graph will continue going up in that motion. This is the general rule but there are some exceptions to the rule which one will learn as he goes along.
These are some of the basic aspects of forex that one has to know. As one proceeds, he will learn more and more things. However, he has to get the basics down before going to the advanced stuff.
When one starts to learn foreign exchange trading, the first thing that one has to know about would be the chart. Now, most people would make use of the candlestick chart since this is the chart that allows one to see the exact movement of the price. As long as one knows how to read a candlestick chart, then he will have no problem understanding the price movement of a currency pair.
When one looks at the candlestick chart, there are two parts that he has to know of which are the bull and bear candles. A bull candle indicates that the market is heading upward and is usually marked by the color white. The bear candle, on the other hand, indicates a downward movement of price and is usually marked by being color black.
Once one already knows how to read the candlestick chart, then he has to understand how support and resistance zones work. To make it simple, support and resistance zones are simply zones where the price bounced and made some sort of peak shape in the graph. These zones can help one determine whether there is a trend change or a trend continuation in the price.
Just to give an idea, a support level is basically the price level where a downward peak formed. If ever the price level breaks that level, then there is most likely a continuous trend downward that will keep on going down. The resistance level is the opposite of a support level wherein it is a price level where an upper peak is formed and if the price breaks the level it will indicate an upward trend.
Now that one knows the basic concepts of trading, one has to know some basic patterns to know if the market is going up or down. The most basic one is through the M and W patterns. Basically, one has to look for an M and W in the chart and trade based on that.
If one sees an M, it means that the market is bearish or going down and will continue to go down. If the graph forms a W, then it means the graph will continue going up in that motion. This is the general rule but there are some exceptions to the rule which one will learn as he goes along.
These are some of the basic aspects of forex that one has to know. As one proceeds, he will learn more and more things. However, he has to get the basics down before going to the advanced stuff.
About the Author:
To learn to trade forex England trading experts are the best people to turn to. Find out more by visiting http://www.elizathetrader.com/learn-trade-forex.
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