Guide page 2

Channel forex trading strategies are very popular among traders. This fact is because the channel within which the quotes move is regularly formed on any instrument, any time frame, and can be used in a variety of ways (breakout strategy, rebound strategy, etc.) as a ready-made trading tactic.

Understandably, novice traders ask numerous questions at the beginning of their careers, and this approach cannot be called wrong. First of all, newbies to the market are usually interested in what amount is needed to start trading stocks or what kind of deposit they need to start trading currencies. The thing is that no experienced trader will ever tell you exactly what capital is required to start trading – this question has many nuances. Further on, we will try to grasp the subject in detail.

Technical analysis of the forex market includes many different concepts and definitions, one of which is overbought and oversold. These terms have existed on the market since the very inception of technical analysis and are very important tools in the arsenal of any trader. They are used on all world exchanges and are still relevant.

The value of assets changes every second and this process can be represented in the form of a chart, and on the basis of the accumulated statistical data, it is possible to assume with a higher probability the forthcoming price movement. What are the graphical patterns and which tools are the most effective and popular among successful traders? Today we will talk about graphical analysis, its advantages, and stages.

Each trader wants to know which way the price will go. However, to get the closest to an answer to this question, it is necessary not only to watch the chart on the trading platform but also constantly keep track of what is happening in the world. A key referendum, presidential comments, or release of negative statistics about the country can dramatically affect the national currency rate. You must have heard such phrases: "The dollar fell on the news... The euro jumped against the franc because of the news...".

The ideal strategy is the one that allows a trader to capitalize on any market, regardless of whether the price is falling or rising. Such trading systems are called arbitrage trading systems. There is true arbitrage and statistical arbitrage. And while the first is available to a vast minority, the second can be handled by every trader.

Margin trading allows a trader to participate in trades that require more funds than they have on deposit. Accordingly, the trader's gain from such transactions increases. But margin trading has a downside – increased risk. It can be minimized by following the rules and taking into account a broker's trading conditions on margin so as not to get a margin call.

Sometimes the market brings surprises to those who work in it. A rate, which has not been characterized by impulsive movements and has been moving quietly up or down, suddenly bursts like a rocket. It rises in price at breakneck speed, knocking down all orders on its way and throwing unlucky players out of the market, at some point it stops and just as rapidly comes back to the place or level close to the point of takeoff.

Cluster analysis is a very useful tool that allows you to find the best points to enter the market, thus increasing the efficiency of the trader. Someone hears about it for the first time, for someone it is familiar but incomprehensible. It can be used to understand how the real picture of the market is presented and what ratio is observed between the buyers and sellers. In this article, we will provide an insight into the cluster analysis, learning in detail what it is and how to apply it competently in trading on the financial markets.

Indicators for technical analysis allow you to detect levels and patterns on charts. This is important for trading because around them there are favorable points for setting Stop Losses and market entries. Indicators are software solutions, which are integrated into the trading terminal and modify the standard price chart according to their work algorithm, and trader's presets, are used for automatic determination of support/resistance levels, detecting overbought/oversold areas, finding patterns on charts, etc.