Investing in financial markets is simple, Not easy
The trading online of financial instruments, just a click away !
The financial markets - some basic information
The advantages of trading online are lower costs and possibility to invest in markets all over the world in real time. The trading platforms guarantee you fast and safe executions, tools for trading at the highest level. I advise you to use method and professionalism, the basis for knowingly managing your trading account. By investing wisely, we will profit.
Knowing how to diversify is essential. Using CFDs you can diversify even with a minimum starting capital. Being informed and not neglecting your positions, making conscious investments protects you from bad surprises. Use tools like "stop-loss" to protect you from opposing markets, use "take-profit" to consolidate capital. I advise you to start trading with a DEMO ACCOUNT that allows you to practice without risking real money at least until you are ready!
Real-time charts - Understand the trend of financial markets
In the bullish trend the candles are green (bullish market) or if the trend is falling the candles are red (bearish market).
When certain graphic conditions occur, future price developments can be predicted, as investors tend to always behave in the same way.
The various types of graphs used in the analysis are:
- Bar chart
- Candlestick chart
- Line chart
The most used is the candlestick chart.
On this type of graphs, the candles form the so-called patterns or combinations of candles that can indicate the start of bullish movements, or bearish movements of the stocks market.
Not only that, the analysis of the graphs allows you to identify price behaviors that are repeated and defined as figures. Even the figures can be:
- continuation figures: when they indicate the continuation of the current trend
- inversion figures: when they indicate the exhaustion of the current trend
The graphs indicate the trend of prices according to the time variable (the time-frame) on which they are set.
The Japanese candlestick chart is the most used by traders
Graphically it is the easiest to interpret.
The graph (FIGURE 1) consists of: 'Open price', 'High price', 'Low price' and 'close price'. In figure candles are represented. In the first candle (the green one), we note that at the beginning of the "time frame" (the time frame is the duration of the single candle, the beginning corresponds to the opening price), the value is lower than the closing price ( end of time frame). There was therefore a positive trend (bullish or bullish trend), we also note that during the time frame higher and lower values were reached compared to the opening and closing. In the second candle (the red one) we notice instead a negative trend (bearish or bearish) as the opening value is higher than the closing value.
(FIGURE 2) we see an example of a Japanese candlestick chart for the USD / JPY currency pair with a time frame set at 4 hours.
This is only the first approach with Japanese candle charts. I advise you to practice with the chart above or start with a demo account that allows you to practice study of the charts with Japanese candles.
What we analyze with the chart - Price Support and Resistance Levels
Support and resistance levels are two concepts that are often addressed in the forex market.
- Support Point: is the market's resistance to falling prices
- Resistance Point: market reaction at rising prices
The Trend channel includes the support and resistance lines, shows a corridor of prices, drawing a line parallel to that of the trend line. Increasing in the event of a bullish trend, the channel is upward, ascending; in the event of a bearish trend the channel is downwards.
As long as any direction is not available in price changes, the trend channel is seen as a horizontal plane (lateral market).
select a chart
The head and shoulder model
It is one of the most used and precise models to determine a trend reversal, it is a graphic model that falls into the category of bearish or bullish reversal charts. Occurs at the top or bottom of a trend it is used to determine a bearish or bullish reversal of a price. The head and shoulder pattern is definitively validated at the break out point of the neck line.
The price objective is equal to the height between the neck line and the top of the head, drawn line below the neck line. More info in wikipedia
- Written by Nikis