Essential information and the Trading basics with Exness Africa
A guide to explain important aspects of trading, definitions, analysis, charts and more.
Important definitions for the world of trading
Below most common phrases and definitions you will be hearing during trading and investment. It is crucial to use trading instruments and tools to get profits. Trading is not an easy task. It is a lifetime process with improvements losses and gains. Exness Africa offers variety of platforms as well as markets to maximize your trading experience.
- OHLCThis is the abbreviation of Open High-Low-Close.
- MajorsMajors are the currency pairs that incluse US Dollars.
- CrossesCrosses do not include US Dollars.
- MinorsMinors are, currencies from large, strong economies that do not include the US Dollars.
- Ask and BidAsk price is always higher by rule. Ask price is the price that you would be quoted at.
- SpreadThis is the difference between the buy and sell prices. Exness broker has tight spreads.
- Short SellingWhen you think the price is going to fall and then selling it on the open market
- LeverageSimply it is the action of borrowing funds for an investment. Exness India has different options for leverage, providing different trading strategies.
- Take Profit (TP)A condition that checks, whether price is at the level or higher that you decided
- Stop Loss (SL)A similar condition to Take profit, it is linked to buy order, if price decreases to a determined position, you close the order to not lose more money.
- Buy LimitWe expect the market to go down first a little bit and then go up and sell it.
- Sell LimitWe expect the market to go up and then go down.
There are three main types of forex analysis when it comes to forex trading. Forex means Foreign exchange It is the worldwide electronic market where international currencies and their derivatives are traded. Examples can be: EUR/USD, USD/JPY, GBP/CAD. Also Exness forex broker provides many more forex pairs. Remember the rule: DYOR: Do your own research. Also accept the fact that there will be losses and gains altogether.
Forex Analysis
There are three main approaches to make forex analysis:
- 1Fundamental analysisThis means look for unknown information somewhere (for example: reading – news about global economy) Or economic calendar, this is more conservative approach for few pairs for forex, becoming very good with those pairs such as EUR/USD, or USD/JPY.
You can also check forex factory for information about forex trading and news, As an example of event: every first Friday for every month is important to check, unemployement rate & non-farm employement change are released in US. - 2Technical analysisthis approach is different: all information is already in chart, everything is there in charts,
seeing a situation, he has seen before in charts for example, with this approach, you can have many more forex pairs, easily switch analysing pairs, unlike fundamental analysis approach. - 3Sentiment analysisThis is not a standalone approach, trying to understand general mood of market and expectations. For example checking twitter, discord, telegram channels or facebook.
At the end of the day, it matters what people think.
TECHNICAL ANALYSIS
Upward trend, Support line indicates upward trend, expect to go up.
Downward trend, Resistance level, going downward.
Sideways or flat market
A support level can represent a barrier when prices are going down, as prices are coming near to support, people become hesitant
Price can bounce back upwards, or test support level, or can go down further.
Resistance level upwards, is the similar situation, can cross the resistance level, or go down or test the level. Below observe three different main chart types:
Downward trend, Resistance level, going downward.
Sideways or flat market
A support level can represent a barrier when prices are going down, as prices are coming near to support, people become hesitant
Price can bounce back upwards, or test support level, or can go down further.
Resistance level upwards, is the similar situation, can cross the resistance level, or go down or test the level. Below observe three different main chart types:
Two Main Types
Historical and psychological levels
Historical when it repeats a pattern as before
Psychological is a known or predicted price for example a currency is traded with 1.5
Historical and psychological levels
Historical when it repeats a pattern as before
Psychological is a known or predicted price for example a currency is traded with 1.5
Channels
Price is moving in a channel or a corridor.
Triangle pattern
Price is keep progressing in a triangle, after some point, price will have no place to go, the amplitude is decreasing. After some point, after the end of triangle, market can expect an upwards or downwards pulse. Triangles can provide an advantage as it can give profit
Fibonacci
1,1,2,3,5,8,13 ( it is the sum of previous 2 digits and goes on)
When we divide these elements its always around 1.6, it starts high and then the difference is getting smaller at golden ratio of 1.618
Golden ratio is a fundamental concept, golden ratio can be in many places such as in anatomy. Or in nature or even in galaxies. And finally in human DNA.
How can we use this in trading?
We can predict that the pattern will follow the ratio.
You can use Exness broker instruments to use Fibonacci ratio effortlessly.
Forex Robots and Algorithmic Trading
Instead of you sitting and trading, robots are trading for you, can have a huge advantage, as
Trading is a cold blooded action and when you are doing it, you might decide emotionally, eventually this can cause a loss. Robots allow you to take out the emotions. All your relying on is if your trading strategy is correct in long run.Front matter, or preliminaries, is the first section of a book and is usually the smallest section in terms of the number of pages. Each page is counted, but no folio or page number is expressed or printed, on either display pages or blank pages.
Price is moving in a channel or a corridor.
Triangle pattern
Price is keep progressing in a triangle, after some point, price will have no place to go, the amplitude is decreasing. After some point, after the end of triangle, market can expect an upwards or downwards pulse. Triangles can provide an advantage as it can give profit
Fibonacci
1,1,2,3,5,8,13 ( it is the sum of previous 2 digits and goes on)
When we divide these elements its always around 1.6, it starts high and then the difference is getting smaller at golden ratio of 1.618
Golden ratio is a fundamental concept, golden ratio can be in many places such as in anatomy. Or in nature or even in galaxies. And finally in human DNA.
How can we use this in trading?
We can predict that the pattern will follow the ratio.
You can use Exness broker instruments to use Fibonacci ratio effortlessly.
Forex Robots and Algorithmic Trading
Instead of you sitting and trading, robots are trading for you, can have a huge advantage, as
Trading is a cold blooded action and when you are doing it, you might decide emotionally, eventually this can cause a loss. Robots allow you to take out the emotions. All your relying on is if your trading strategy is correct in long run.Front matter, or preliminaries, is the first section of a book and is usually the smallest section in terms of the number of pages. Each page is counted, but no folio or page number is expressed or printed, on either display pages or blank pages.
Fibonacci
