FXCM Research Team consists of a number of FXCM's Market and Product Specialists.
Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.
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The channel is a simple and effective technical analysis tool for charting and trading on a price trend. Channels can be used to identify a trend and the possible points of a reversal or a price breakout to a different trading level. What Is A Channel And How Is It Identified? Channels are customarily created by pinpointing the upper and lower limits of price action within an ongoing price trend…
The evening star is the name for a classic bearish pattern appearing in candlestick charts that signals the end of a price uptrend and the beginnings of a downtrend. The pattern appears at the climax of a trend as a cross-like star formation. It's often used to identify a selling opportunity upon a reversal or help traders prepare for further selling opportunities as a new bearish trend gains momentum. Candle…
A pennant is a triangle-shaped chart pattern formed by consolidating price action following a directional market move or trend. Pennants are classified as continuation patterns, meaning their presence acts as a signal that the market is merely taking a pause, and the preceding trend has a good chance of extending its range in the near future. Market Conditions In general, chart patterns have the most predictive value when they exhibit…
In the realm of technical analysis, a "flag" is a chart pattern that illustrates a temporary pause or compression in directional price action. A flag is classified as being a "continuation" pattern, suggesting that price is likely to resume movement in concert with a previously defined trend. Flags are widely accepted by long-term, swing and intraday traders as signals of potential breakouts. In addition, they provide technical traders a means…
In the financial marketplaces of the world, there are numerous different styles and trading methodologies employed with the goal of achieving profitability. One of the most prominent forms of trading used by both retail and institutional traders alike is known as "scalping." Scalping is a trade management strategy in which the trader elects to take small profits quickly as they become available within the marketplace. Often referred to as "picking…
Brief History Of Trading By definition, the term "trade" is the act of buying, selling, or exchanging goods with other parties. Dating back to the beginnings of human civilisation, "trade" has been the apparatus by which people have exchanged valued assets in an attempt to prosper or survive. The instrument of trade is credited with linking different cultures and acting as a conduit for the transmission of culture and ideas.…
In a not-so-distant past, investors who were interested in pooled investments commonly purchased mutual funds, where they could capture the returns of a diversified portfolio using a single investment vehicle. Those funds, however, came with some limitations, among these the fact that positions in them can normally only be adjusted after market hours according to their net asset value (NAV). In more recent years, a new type of pooled investment…
Throughout the U.K.'s history and its interaction within global events, the British pound has served as a conduit for international trade and as a safe haven for investors.
Dark pools are networks of privately held trading forums, exchanges or markets that provide a platform for the anonymous trading of securities. Dark pools facilitate non-exchange-based trading practices between broker-dealer firms and investors interested in placing orders for the trade of specific securities outside of public scrutiny. Dark pools are also referred to as "dark pool liquidity" or "dark liquidity." Purpose Of Dark Pools The main objective of a dark…
The death cross and the golden cross are technical indicators that traders use in attempt to predict bearish and bullish market momentum.
The average directional index (ADX) is a charting tool that judges trend strength. It was formulated by market technician J. Welles Wilder and presented in his 1978 book New Concepts in Technical Trading Systems, along with the minus directional indicator (-DI) and the plus directional indicator (+DI). Trading on a price trend can be profitable, but for some it may also be nerve-racking, especially given uncertainties in market movements that…
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