Forex trading can be a great option to earn an income these days, especially if you are looking for an activity you can do from home or from anywhere else as long as you can have access to an internet connection and without the need of having a fixed office seat where you must be present and attached the entire day.
But similarly to most activities and professional occupations you must be willing to learn the basics of forex trading in order to be successful and become a profitable trader. Among the things you must learn as a forex trader you will find that technical indicators will be of great help so you can predict with a high accuracy the behavior of the forex market before you finally enter a trade.
The obvious reason for working on making these predictions is to be as profitable as possible and avoid by all means to incur losses in your account. Two important forex indicators you should consider are "Bollinger Bands" and "Fibonacci Retracement Levels".
"Bollinger Bands" analysis is based on the observed behavior that currency prices tend to stay within the space formed by the tracings of an upper and a lower band. The gap or spacing between the bands varies depending on the volatility of the market. These bands are plotted two standard deviations above and below a simple moving average (SMA). When prices are closer to the upper band, this I s, above the SMA then it indicates a sell signal, and if the prices are below the SMA and closer to the lower band this will indicate a buy signal.
"Fibonacci Retracement Levels" are based on a sequence of numbers that are closely tied to many cycles we can observe in natural phenomena. These levels are very effective as a prediction tool in forex trading , this means that by using Fibonacci analysis you can predict when the trend of the market will change and use this information in your favor. The most common Fibonacci ratios use to determine the retracement levels are these: 23.6%, 38.2%, 50%, 61.8% .
Forex can be a great way of making a living from home or anywhere else your laptop and internet connection happens to take you. Learn more about the basics of forex trading and the best forex trading systems in the market right now: |
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