Category: Trading

The relative strength index or the RSI is a momentum oscillator used to measure the velocity and magnitude of directional price movements.  The indicator provides will help you determine overbought/oversold levels, as well as provide buy and sell signals. The RSI indicator with standard settings The RSI is basically a single line that fluctuates in the corridor between 0 and 100. The closer this line gets to the zero mark the higher are the chances for the asset to be oversold. When the RSI gets close to 100, the asset is likely to be…

However, there are two tools that I still use, because in some circumstances they are very helpful. Before we decide to open an order, we seek additional confirmation that our analysis of the situation is correct. When the conclusions resulting from the observation of the price behavior additionally are supported by correct interpretation of what the indicator shows us – we have in some sense a confluence allowing us to make successful trading decision. The indicators with which I did not part with and they accompany me on a daily…

Often traders face a situation when, given stable virtual profits on a demo balance, as they switch to the real balance, their trading strategy becomes ineffective. How can it be, isn’t trading on both of these balances identical? Well, yes. However, there’s one key factor that makes a difference – our emotions. While we don’t care about losing virtual funds, investing our own money involves financial risk. This risk affects our decision-making and often leads to irrational behavior in trading, which is so common that it stands out as a…

The IQ Option platform offers an extended list of trading instruments to choose from: options, Forex, stocks, commodities, cryptocurrencies and ETFs. For a newcomer, they all may seem identical but in fact behave quite differently. What works for some assets won’t work for the other, and vice versa. Choosing the right asset to trade is a logical step for a rookie investor. And even if you know about the differences, you may want to dig deeper to find the one instrument that suits you best. In order to understand what instrument…

While charts carry historical data for many years back, with past quotes becoming less significant over time, it’s natural to limit your analysis to one (often, more than one) timeframe, which provides enough information to perform a trade. Defining your main timeframe gives you the perfect grounding for identifying the trend and market reversals, and for refining your trade’s entry and exit points with graphical tools and indicators. Choosing the right timeframe is therefore essential for any good technical analysis, which should capture as much relevant data as possible while minimizing…

Trading is a desirable pursuit. However, few become professional traders capable of turning a stable profit. In order to become a PRO, you will need to study and practice a lot. Knowing what to learn and how to sharpen your newly acquired skills is as important as your persistence and diligence. Today’s article is a step by step guide that will take you from a rookie trader to a hardened investor. Learning the basics As with any activity, whether profit-oriented or not, you would want to start with the basics. Seems logical,…