Posted by Rocky on

Bull and Bear Candlestick Pattern

Bull and Bear Candlestick Pattern

 

At any trading time frame, there is always a battle between the bear ( who makes profit in downtrend or when stock prices decrease) and bull (who makes profit in uptrend or when stock prices increases).

Using Candlestick patterns to identify entry points for bull is called bullish candlestick pattern, and the opposite candlestick signal for bear is called bearish candlestick pattern.Here are 4 popular signals to show you the difference between both patterns:

Bullish Candlestick pattern 1: Bullish Engulfing Patterncandlestickpatternfinder_img1

This Pattern shows a strong bull move represented by a light body that overshadow a previous small dark body. This formation suggest that next move is controlled by the bull and the price will increase as there are more buyers than sellers.

Bullish Candlestick Pattern 2: Bullish Harami Pattern

In a downtrend when the small white candlestick appear after a dark body and it’s high and low is within the length of the previous dark body then this pattern suggests that the bull is taking over the trend and they will increase the price because of the buying activity.

Bullish Harami Candlestick

Bearish Candlestick Pattern 1: Bearish Engulfing Pattern

This example in the picture shows a dark body will overcast a smaller white body.In this pattern bears are taking over because there will be more selling activity here and the price will fall, so the next candlestick signal will suggest a price rise.

Bearish Engulfing Candlestick

Bearish Candlestick Pattern 2: Bearish Harami Pattern2

The candlestick formation will show a dark body followed by a smaller white candlestick that has its high and low within the length of previous dark body. This pattern suggests a lower prices ahead as bears are winning by selling more than bull are buying, same as for harmonic trading patterns.

Bearish Harami Candlestick

By studying candlestick charts often, you’ll train your eyes to spot these strong signals and with the addition of other technical and fundamental analysis you can dramatically increase your winning stock picking system.

 

Posted by Rocky on

The Wonder of Forex Robots

The Wonder of Forex Robots

Forex trading was once a business of the experts only. Only those would risk their money who knew all the ins and outs of the system. The people with no experience were kept out of it. There were many difficulties that the entrepreneurs had to face. This discouraging situation remained there for many years until the innovation of Forex trading robots or pilots.

As reported by NY Times, these software are optimized to handle the Forex trading automatically and the entire business is put on auto-piloting. This technology has allowed the new comers to enter into the business hence helping the forex trading to grow. This business has grown so much now that it is believed that the daily forex trading is of worth 3 trillion dollars. The automated Forex rebots have played a very important role to achieve this height.

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A good Forex robot has the ability to sell in almost every currency pair and use any platform including metatrader 4. Though you may find robots who are currencies specific but a robot generally has the ability to handle many currency pairs. Diversity will be the main thing to look for while selecting the Forex robot for your forex trading business. The robots should have a maximum ability to handle any strategy. They should handle both, the long term and the short term strategy. Though a robot is not better than human in many aspects and it will not be able to handle different strategies 100% accurately but you must look for an accuracy around 85% at least. The robots will also predict the market behavior. There are plenty of robots who can do that. They will normally predict a behavior relevant to the immediate future, generally 3 to 4 hours from the time they are making the prediction.

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Remember that the robots that focus on less currency pairs will have less diversity but they will generally have high accuracy. This is good for you if you are looking for forex trading in certain currency pairs and you have no plan to try out the other pairs. But if you are seriously trying to work with any currency pair which is more profitable at the given time, you better look for those robots with more diversity.
The forex robots work for humans and they reduce the work and mathematical effort that is required by the Forex trading business. These robots do all the calculations and solve the intricate algorithms for the humans and they are more accurate. The humans are often supposed to make mistakes as the human mind cramps under the pressure and huge calculations. These robots make all the calculations and then predict the scenario. Most of the robots will have a look at the current market and they will work accordingly.
With the forex robots on work, the human labor reduces. The businessman has to just place his order with a broker and then the software will take over. All this is automated and the person gets lots of free time to do the market search and read useful information regarding the market trends. Remember that putting your business on robots does not mean that you do not need to get involved any more, keep your self updated with the latest market trends and read about the market situation.

Posted by Rocky on

5 Reasons to Invest in the Currency Trading Market

5 Reasons to Invest in the Currency Trading Market

Some investors choose to bypass the currency trading market. They may either be too comfortable with a stock trade system or they may not know enough about foreign exchange to trade confidently. If you are looking for a new investment opportunity or challenge, now might be the right time for you to trade currencies. There are a number of good reasons to do so.

#1- The leverage potential of the market is tremendous.

In foreign exchange, leverage is perhaps the most common benefit you will ever read about. What leverage can mean for you is that you have the chance to earn a whole lot of cash even if you only start with a small investment float. Depending on your specific trading firm, you may be allowed to put in as small as a few hundred dollars and trade for thousands or even millions. The huge profit potential is the major draw of Forex investment trading.

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 #2- Assets are quite liquid.

Liquidity follows leverage potential as an attractive quality of the Forex market. Liquidity here means that there are always traders who are willing to do business with you and you will always have an avenue to apply your Forex trading system. Liquidity also implies that you will always have ready access to your profits. The reason behind this amazing market quality is the size of the market itself. Forex is so huge that it is bigger than commodities and stocks markets combined. The good news about Forex is that it is unaffected by how the other investment markets move. There is therefore no chance that a falling stock market can pull the currencies market along with it.

#3- The market is volatile.

A volatile market tends to shift movement fast. At first glance, this may seem like a bad thing. You should however view this from the perspective of earning potential. A market that doesn’t move in any direction at all is far worse than a volatile one simply because there is no opportunity to either win or lose. In a stagnant market, assets simply sit where they are and you get absolutely nothing in return. Market movement is an indication of great market health.

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#4- Market doors are open all the time.

The business of trading currencies never sleeps. It doesn’t even take a nap. This is good news for hard working investors because there is always someone in some part of the world who would be willing to trade. Eager traders have perhaps increased even more because of the advent of convenient online Forex currency trading tools.

#5- Demo and small accounts exist.

You don’t have to lose thousands of dollars learning to trade. Some online Forex sites will let beginners trade using demo accounts. You will be given access to actual trading data but you will not be required to put in cash. After trying a demo account, you can move on to opening a real account. If you don’t have a lot of investment cash to begin with, you can always sign up for a small trading account. Some sites permit trading for as little as a hundred dollars.

There is no question that the currency trading market can make you wealthy. You do have to make sure though that you follow a good system that will keep you from losing a lot.