Japanese Candlesticks – The Norm?

As a technical trader, you need to dig deeper into charts to know future price movements. There are different types of charts you can use for this purpose. However, the one that stands out is the Japanese candlestick chart. Japanese candles are a graphical representation of what the asset has done during a specified period. According to the market, the Japanese candlesticks were used around the year 1700 by rice sellers who were trying to get the best return on their products. The creator of the candlesticks was a Japanese named Homma. In the western world, it became known in 1991 when Steve Nison published his book "Japanese Candlestick Charting Techniques". Candlestick charts have aided traders in forecasting market sentiments since their creation. Traders can improve their trading methods by combining candlestick patterns with other technical indicators. Let’s dive in deeper on candlestick charts.

Heikin Ashi Candlesticks Chart – Explained

Translated, the words Heikin Ashi mean "average bar" in Japanese. Created in the Japanese rice markets, Heikin Ashi has been around for more than two centuries. Let’s find out more about how Heikin Ashi works. Due to the great volatility of the markets, price fluctuations often create false signals that make us go in the opposite direction. To reduce all the noise of market operations, the Heikin Ashi Candlestick Chart was developed. This chart is derived from the traditional Japanese candlestick chart that allows traders worldwide to identify trends easily. Heikin Ashi candles are both a chart and an indicator. Instead of reflecting prices, these candles show the trader the price movement over time. In this way, it manages to eliminate the market noise showing only significant changes in trend.

Volume Indicators in Forex Trading

If you trade stocks, you have access to information from a stock exchange regarding trading volumes. This data enables you to determine if market participants support a price trend or not. On the contrary, the forex market is decentralised. Because we trade over the counter, we do not have a centralised exchange of the entire volume. So, to find out the volume, we use volume indicators. Let's dig deeper into what are forex volume indicators and how do they work. What are forex volume indicators? Forex is a very volatile market that fluctuates based on supply and demand. Therefore, the forex volume trading indicators are essentially a visual representation of supply and demand. Furthermore, the indicators help filter somewhat hazy data obtained by just looking at the total number of sellers and buyers. When the market is trending upwards, there are more buyers than sellers. When it falls, it indicates that there are more sellers than buyers.

Benefits of Trading On a Demo Account First

If you are familiar with gaming, think of a demo account as a gaming simulator. Just like a simulator, a demo account allows you to imitate real-life situations. A demo trading environment allows you to familiarise yourself with trading practicalities while also polishing your trading skills. So, let's walk you through the benefits of trading on a demo account first. One of the most significant advantages of a demo account is that you can practise without risking any of your hard-earned money. A demo account, similar to fun gaming, allows you to trade successfully without risking any money. It's just a great method to get a feel for trading, so you can see if you're comfortable with it. This is a great method to learn more about trading and see whether it's appropriate for you, rather than going in headfirst and losing money only to discover it's not for you.

The Impact of Non-Farm Payrolls

In the US, consumer spending accounts for almost two-thirds of the GDP. That's why job data is so crucial for traders and investors. For currency traders worldwide, non-farm payrolls (NFP) are a critical economic indicator. Investors and Forex traders anxiously await the NFP report from the Bureau of Labor Statistics (BLS). NFP releases its monthly report on the first Friday of each month at 8:30 am EST. Traditionally if the 1t falls on a Thursday it moves over the following Friday. The report includes data about the total number of employees of the private sector in the US, excluding government offices, private households, nonprofits, and agriculture. In addition to this, the report provides comprehensive data about inflation, consumer demand, and economic growth in the US. US dollars serve as the world's reserve currency since they are the world's largest economy.

Order Execution – Slippage Explained

Are you aware of any instances when orders were executed at a different price from your current stop-loss or take-profit levels? Are you aware of the reason behind it? Is there something wrong with the platform? Mostly, slippage is easy to understand, but there may be questions if you're unfamiliar with it. In the sections below, we present the information you might find useful if you are trying to understand why and when slippage occurs and how to avoid it. In addition to learning how the orders work, you'll also be able to understand how the orders move from the moment you click the execution button to the moment it gets filled. Moving down the article, you will get the habit to stay aware of the following points in the market

Forex Trading in South Africa – Legal?

Do you want to know if Forex trading is legal in South Africa? The legality of Forex trading is not explicitly addressed in South Africa's laws. Therefore, trading Forex is entirely legal in South Africa. South Africa's Reserve Bank is responsible for overseeing money flow between countries. As long as you follow all financial laws to prevent money laundering, forex trading is legal in South Africa. However, you are obligated to declare all your income tax assets for Forex trading. No law mandates the use of a regulated broker. Although some brokers are regulated under the FSCA, it doesn't apply to everyone. Several well-known international organisations regulate others.

FSCA Regulatory Entity in South Africa

FSCA is an acronym for "Financial Sector Conduct Authority". A new financial sector regulation act was passed in 2017 creating this regulatory body. As an independent authority dedicated to monitoring the financial markets, it replaced the Financial Services Board (FSB). The FSCA is a market conduct regulator for all financial institutions in South Africa. They control all businesses or institutions providing financial services or products. As a result, the FSCA is responsible for managing financial centres complying with financial sector laws. For example, it could be retirement funds, insurers, banks, or financial markets. The FSCA's main objective is to protect South African investors, traders, and even the whole economy. In fact, it protects people from money laundering and other fraudulent schemes. Additionally, investors and traders can contact any broker registered with the FSCA outside South Africa. Investors and traders should always consider choosing brokers who are FSCA-regulated to ensure the safety and security of their funds.

Autochartist – Charting Software

Autochartist is, at the core, a market scanning tool that can save traders a great deal of time scanning the markets for potential trade setups. The Autochartist software is aimed to enable traders to make a trading decision and at a faster pace. Over 50 online forex brokers use this software, which boasts an online community of over 50,000 traders spread across more than 80 countries. It has clearly established itself as the primary chart pattern recognition solution for brokers and traders alike as a third-party tool. Autochartist' popularity is due to many forex brokers advertising it as a value-add service for their traders. The Autochartist platform has thus been used by the majority of the trading community at some point or another. You can identify chart patterns, Fibonacci patterns, key support and resistance levels, and even trade based on those patterns through the platform. A good strategy is fundamental for performance and makes better decisions in the long term

Forex trading strategies – Explained

Strategies are a set of tools and rules used by traders to help them make the right call. The goal of the tools is to analyse the available information so the traders can make an informed decision. A good strategy is fundamental for performance and makes better decisions in the long term

Contact us