Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

Trading bias is a predisposition or perspective of the financial markets whereby traders believe there is a higher probability of a certain outcome as opposed to any other alternate possibilities.

These trading biases are determined by technical and/or fundamental factors that support a specific outlook that explains market behaviour. This often relates to market trends being either bullish/bearish which signals appropriate trading strategy and style.

Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

It’s not uncommon for forex traders to approach trading with the aim of collecting ‘x’ many pips a day from the market. Some may even consider adopting a strategy that only makes X amount of pips per day. However, there are complications that arise from this approach and setting such unrealistic goals.

This article will answer the question: “how many pips per day?” and explore the best approach to using pips – considering market fluctuations which affect daily pip movements and how to capitalise on this with a solid trading strategy.

Bitcoin prices fell more than 3.5% since the start of the week with BTC/USD trading at 45335 in early US trade. A breakout in early-august trade may vulnerable here and while the broader outlook is weighted to the topside, the threat for a near-term correction within the confines of the uptrend remains. These are the updated targets and invalidation levels that matter on the BTC/USD technical price charts. Review my latest Strategy Webinar for an in-depth breakdown of this Bitcoin setup and more.

The price of oil slips to a fresh weekly low ($65.04) despite a larger-than-expected decline in US inventories, with crude on the cusp of taking out the July low ($65.01) as US production increases for the second straight week.

Geopolitics, COVID-19, Fed trepidation and uninspiring local data have prompted a bullish bias this week as global risk aversion increased. The South African rand touched July swing highs yesterday and now hovers around 14.9000 after predictable inflation data (see chart below).

Source: Stats SA – Consumer Price Index (CPI)

Retail sales data for June has given some respite to rand bulls as actual figures (10.4%) beat estimates of 9.6%. I believe this will only be temporary as this marginal outperformance remains a minimal factor on the USD/ZAR currency pair.

AUD/USD remains under pressure as the RBA Minutes warns that “the current virus outbreaks and lockdowns had interrupted the recovery,” and the exchange rate may face a further decline ahead of the Kansas City Fed Economic Symposium scheduled for August 26 – 28 amid the diverging paths for monetary policy.

It seems as though the RBA is on a preset course as the central bank plans to “continue with the bond purchase program at a reduced rate of $4 billon a week, once the second $100 billion of purchases is complete in September 2021,” and Governor Philip Lowe and Co. appear to be in no rush to switch gears as the “Board would be prepared to act in response to further bad news on the health front should that lead to a more significant setback for the economic recovery.”

As a result, the update to Australia’s Employment report may keep the RBA on the sidelines at its next interest rate decision on September 7 as the economy is expected to shed 46.2K jobs in July, and...

The USD/CAD recovery has continued after last week’s test at a very key area on the chart. The 1.2500 psychological level has had pull in USD/CAD price action since March of this year; and that price makes up the bottom portion of a longer-term zone on the chart that spans up to the 1.2622 Fibonacci level. And as looked at last week, that price was also confluent with a trendline that can be found by connecting swing lows from early-June and late-July trade.

If you’d like to learn more about drawing trendlines, check out DailyFX Education

Chart prepared by James Stanley; USDCAD on Tradingview

After a rather pensive test of support last week, with the US Dollar falling on the heels of consumer sentiment data released on Friday, bulls sparked a topside push shortly after the open this week. Prices have run up to the topside of the support zone, with the 1.2622 Fibonacci level helping to hold the highs for now.

This keeps the door open for breakout...

EUR/USD has once again bounced off its key support area after falling to 1.1702 in Tuesday’s session. This is its lowest level since the beginning of November, and the third time the pair enters its support area (1.1738 - 1.1700) since then. Breaking below the 1.17 mark seems inevitable now but we may see another upside reversal before sellers are actually able to break this level. I’m also not sure whether they’ll be able to achieve much consolidation when they do, as buyers are swiftly picking up momentum once a break lower is achieved.

Despite the weaker retail sales reported earlier in the day, the US Dollar picked up some defensive momentum and was the best performer in yesterday’s session, which put extended pressure on EUR/USD. There is still some further upside for the Dollar in the short-term so that’s why I believe we still have room for a break below 1.17 for EUR/USD, and the next area that attracts my attention is 1.1624 – 1.1613, which was key at...

“Is there a best time frame to trade forex?” is a common question a lot of traders ask, especially those new to the forex market. The truth is, there is no single answer. It all depends on your preferred trading strategy and style.

Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Trend charts refer to longer-term time frame charts that assist traders in recognizing the trend, whilst trigger chart pick out possible trade entry points. This article will explore these forex trading time frames in depth, whilst offering tips on which can best serve your trading goals.

Talking points:

A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. This is also known as “rollover” and forms an integral part of a carry trade strategy. Traders gravitate towards this strategy in the hope of collecting daily interest payments over and above any currency appreciation from the actual trade.

This article explains FX carry trades with the use of examples and presents a top carry trade strategy to use in your trading.

The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. This article will look at the potentially higher probability forex trading opportunities of the bull flag pattern.

Learn to trade the bull flag pattern: Main talking points??

The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA).The MACD displays a MACD line (blue), signal line (red) and a histogram (green) - showing the difference between the MACD line and the signal line.

The MACD line is the difference between two exponentially levelled moving averages – usually 12 and 26-periods, whilst the signal line is generally a 9-period exponentially smoothed average of the MACD line.

These MACD lines waver in and around the zero line. This gives the MACD the characteristics of an oscillator giving overbought and oversold signals above and below the zero-line respectively.

The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Often associated with indecision in the market, Spinning Top candles can provide valuable supporting information to a trading strategy. The main talking points of this article are:

Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

Risk management is at the core of any good trading plan, without having a sound set of principles to follow a trader is doomed to fail. We outline rules and factors to consider when customizing a risk management game-plan right for you.

We understand the difficulties of trading, which is why we’ve put together a variety of guides designed to help traders of all experience levels.

Risk management is one of the most important aspects to successful trading, but far too often it’s overlooked. Job #1 for a trader is to always keep yourself in the game. A sound strategy and the discipline to follow it will go long way towards ensuring you stick around.

If you are in the learning stage, your objective is to keep losses very small until you figure out what you are doing from an analytical and strategy standpoint. Adhering to sound risk parameters early-on will go a long way towards building a foundation for later on.

For the more...

It’s not uncommon for forex traders to approach trading with the aim of collecting ‘x’ many pips a day from the market. Some may even consider adopting a strategy that only makes X amount of pips per day. However, there are complications that arise from this approach and setting such unrealistic goals.

This article will answer the question: “how many pips per day?” and explore the best approach to using pips – considering market fluctuations which affect daily pip movements and how to capitalise on this with a solid trading strategy.

The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. As a result, the ISM manufacturing, construction and services indicators can provide unique opportunities for forex traders, which makes understanding this data (and how to prepare for its monthly release) essential.

Talking points:

Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.