Free forex trading course. Hello everyone, this time we bring you a complete guide and basic to advanced course in forex trading, so without further ado to learn for free how to analyze the forex market. We won’t ask you for your email address, nor to register, now you will learn from scratch everything about trading, or at least what we have to teach you in a practical and fast and free way. If you already have knowledge on how to trade in mt4 and mt5 you can skip the basics and go straight to the section of the guide that interests you, that said let’s start. Trading classes for everyone online and more in this free course.
FREE TRADING COURSE: Unleashing the Secrets of Successful Trading
The Power of Knowledge in Trading
Welcome to the world of trading, where fortunes are made and lost within the blink of an eye. Trading can be a lucrative venture, but it requires skill, knowledge, and a deep understanding of the markets. In this article, we will take you on a journey to discover the secrets of successful trading. Whether you are a seasoned trader or a newcomer, this free trading course will equip you with essential tools and strategies to navigate the financial markets with confidence.
Understanding the Basics of Trading
What is Trading?
To begin our journey, we must first grasp the concept of trading. Trading involves buying and selling financial instruments, such as stocks, currencies, commodities, or cryptocurrencies, with the aim of making a profit. The market is driven by supply and demand, and successful traders understand how to analyze these dynamics.
Different Types of Trading
We’ll explore the various forms of trading, including day trading, swing trading, and long-term investing. Each style has its merits and suits different personalities and risk appetites.
The Foundation: Risk Management
Embracing Risk and Uncertainty
Trading inherently involves risk, and the ability to manage it effectively is crucial for sustainable success. We’ll delve into risk management techniques that safeguard your capital and minimize potential losses.
Setting Stop-Loss and Take-Profit Orders
Learn how to use stop-loss and take-profit orders strategically to protect your investments and lock in profits when the market moves in your favor.
Market Analysis: The Key to Informed Decisions
We’ll explore fundamental analysis, where traders evaluate a company’s financial health, economic indicators, and geopolitical factors to make informed trading decisions.
Technical analysis involves studying past market data, identifying patterns, and using various indicators to predict future price movements. Mastering this skill is vital for spotting trends and entry/exit points.
Understanding market sentiment can provide valuable insights into crowd psychology and potential market reversals. We’ll show you how to gauge sentiment and use it to your advantage.
Developing a Trading Strategy
Creating Your Trading Plan
A well-defined trading plan acts as your roadmap to success. We’ll guide you through the process of building a personalized trading strategy that aligns with your goals and risk tolerance.
Backtesting Your Strategy
Backtesting involves testing your trading strategy using historical data to evaluate its performance and make necessary adjustments before risking real capital.
The Psychology of Trading
Mastering Your Emotions
Emotional discipline is paramount in trading. We’ll address common psychological pitfalls and techniques to stay level-headed during market fluctuations.
Developing Patience and Discipline
Patience and discipline are virtues that successful traders possess. Learn how to cultivate these qualities to avoid impulsive decisions.
Diving into Advanced Trading Techniques
Fibonacci Retracement and Extension
Explore the powerful Fibonacci tool that helps identify potential support and resistance levels, aiding in more precise entry and exit points.
Diversification and Portfolio Management
Discover the art of diversifying your portfolio to spread risk effectively and optimize your overall returns.
Congratulations! You have completed our free trading course, equipping yourself with valuable knowledge and strategies to conquer the world of trading. Remember, successful trading requires continuous learning, practice, and adaptability to evolving market conditions. Embrace the journey and remain committed to honing your skills.
Some questions about trading
Can I become a successful trader without any prior experience? Absolutely! This free trading course is designed for traders of all levels, from beginners to experienced professionals.
Is trading the same as gambling? No, trading involves a calculated approach based on analysis, risk management, and strategy, while gambling relies on chance.
How much capital do I need to start trading? The amount varies depending on your chosen markets and trading style, but it’s essential to start with capital you can afford to lose.
Are there any hidden costs associated with trading? While some fees are involved in trading, we’ll guide you on how to minimize costs and maximize your profits.
Can I trade with a full-time job? Yes, trading can be adapted to fit your schedule, making it accessible to those with full-time commitments.
Free trading course : Basic – PART 1
The first thing you need to be able to trade is to choose the market in which you want to operate, in this page we will talk mainly about two markets. The Forex market and the synthetic index market.
Both of them can be traded through two platforms
Metatrader 4 y Matatrader 5
All about trading : For beginners and intermediates who want to learn how to invest in the stock market and become a trader.
Online trading classes for everyone
FREE COURSE PART 1
FOREX TECHNICAL ANALYSIS
The technical analysis is used to operate any financial asset as long as it has a graph of a considerable time for analysis, it should be noted that all slos markets are exposed to manipulation by the «financial whales» which are entities that accumulate large capital that can alter the price momentarily in the market to generate a movement not expected by the technical analysis. In the forex market these manipulations are generated mainly by investment funds, banks, government entities that participate in the liquidity of these markets. We will talk about them later in the case of cryptocurrencies, but let’s not get ahead of ourselves.
To avoid being a victim of one of these irregular movements of forex markets we must be aware of the news that affect the currencies to operate, a page you should know is www.forexfactory.com
On this page you can see the calendar of important news affecting the most important currencies. Do not operate during these times of the day to avoid entering into a manipulation, unless you want to speculate on some news, for this we will soon try to include on this page a guide to fundamental analysis.
TYPES OF ENTRIES
Buy : Buy direct by market at current price
Sell : Sell direct by market at current price
Sell limit : Use sell limit to wait for a price reversal and take a good sell.
Buy limit : A buy limit to take a good buy on a price reversal.
Sell stop : When you want a sale to be executed after exceeding a certain price, use sell stop.
Buy stop : When you want a buy to be executed after a certain price level use buy stop
At the moment of making operations we must go in the direction of the trend, this is a rule that we must respect otherwise we will enter into small short movements called pullbacks.
The basic concept of any investment is to find a good price where there is a higher probability of having a winning trade either up or down.
How do we identify a trend:
The highs are lower and the lows are lower.
Higher highs and higher lows
Metatrader indicator alert
CHANGE IN TREND
The moment a trend breakout occurs, it is a signal that the market is ready to switch from sellers to buyers in the event of an upward breakout as in the following case.
Identifying the main trend will allow you to take more liquid and volatile positions.
Another important concept to understand is that according to the time frame in which we do our analysis, there are upper and lower trends.
For example in a daily chart there may be an uptrend, which consists of smaller movements with its different waves, there are also theories such as the Elliot waves in which you can place yourself in lower temporalities in some of these waves and make a trade in favor of the trend.
SUPPORTS AND RESISTANCES
Another important concept to take into account when observing the market are the support and resistance zones since historically the market has to respect certain points in which previously had a behavior. This behavior is largely due to institutional zones where large banks and funds carry out their buying and selling operations, for example in monthly or quarterly supports among others.
In order to identify these areas of high probability of buyers and sellers need to identify supports in different temporalities , monthly , weekly , daily, in h4 , h2 , h1 , and m15 always marking them with different shades to differentiate them and from higher to lower as seen in the following picture
It becomes support when the price bounces twice at the same point and resistance when the price bounces two or more times at the same point.
As you get closer in time it will show you new supports and resistances, you can mark the most important ones as daily supports, h2 and m15 to identify the main ones.
Whenever you are going to enter a trade in favor of a trend and affirming some support for buying and resistance for selling.
ACCUMULATION AND DISTRIBUTION
Once the trend is identified and the price waves reach a considered extension, the price will begin to enter a kind of fatigue and thus enter a range or consolidation.
When it is an uptrend at the end it is called the distribution phase
When it is bearish at the end it is called accumulation phase
At the end of each phase we can choose to enter short or long depending on where the consolidation channel breaks. In the case of an accumulation, in order to take better entries we recommend buying from the base of the support and in favor of the trend.
ACCUMULATION AND DISTRIBUTION IN TRADING
When it comes to trading in financial markets, understanding the concept of accumulation and distribution is crucial. These two fundamental principles play a significant role in the behavior of asset prices. Traders who can comprehend and apply these concepts to their trading strategies gain a competitive edge in the market. In this article, we will delve into the concepts of accumulation and distribution, exploring their definitions, factors influencing them, and their relevance in trading.
What is Accumulation?
Accumulation refers to the phase in which smart money investors, institutional traders, or market participants start accumulating a particular asset or security gradually. During this phase, the asset’s price tends to consolidate or move sideways as buying pressure increases. Accumulation typically occurs after a prolonged downtrend or during a market correction.
Key Factors Affecting Accumulation
Several factors influence the accumulation process, including:
- Market Sentiment: Positive sentiment attracts more buyers, leading to increased accumulation.
- Fundamental Analysis: Positive news and strong financial performance of the underlying asset can drive accumulation.
- Supply and Demand: When demand outstrips supply, accumulation is likely to occur.
- Market Manipulation: Certain market participants may manipulate prices to facilitate accumulation.
Identifying Accumulation Patterns
Traders use technical analysis to identify accumulation patterns on price charts. Common patterns include:
- Cup and Handle: A rounded bottom (cup) followed by a slight dip (handle) signals potential accumulation.
- Double Bottom: A formation with two distinct lows, indicating accumulation might be taking place.
- Bullish Divergence: A discrepancy between the price and a technical indicator can suggest accumulation.
Understanding Distribution in Trading
Distribution is the opposite of accumulation. It occurs when market participants, especially smart money investors, start selling off a particular asset. During this phase, the price may consolidate or move sideways as selling pressure increases. Distribution usually follows a prolonged uptrend or before a market reversal.
Factors Influencing Distribution
Distribution is influenced by factors such as:
- Overbought Conditions: When an asset becomes overbought, profit-taking can lead to distribution.
- Negative News: Adverse news or poor financial performance can trigger distribution.
- Fear and Uncertainty: Uncertain market conditions may prompt investors to distribute their holdings.
Detecting Distribution Patterns
Similar to accumulation, traders use technical analysis to identify distribution patterns, including:
- Head and Shoulders: A formation with a peak (head) between two smaller peaks (shoulders) indicates distribution.
- Double Top: Two distinct highs signaling a potential distribution phase.
- Bearish Divergence: When the price and a technical indicator move in opposite directions, it may imply distribution.
The Importance of Accumulation and Distribution in Trading
Understanding accumulation and distribution can help traders:
- Time Their Entries and Exits: Identifying these phases assists traders in entering positions at optimal price levels and exiting before potential reversals.
- Confirm Trend Reversals: Accumulation and distribution patterns can serve as confirmation signals for trend reversals.
- Spot Market Manipulation: Recognizing accumulation or distribution manipulation allows traders to make more informed decisions.
Common Trading Strategies Based on Accumulation and Distribution
Several trading strategies revolve around accumulation and distribution patterns:
- Breakout Trading: Traders wait for the price to break out of the accumulation or distribution range before entering a trade.
- Trend Reversal Trading: Accumulation or distribution patterns can indicate potential trend reversals, prompting traders to take positions opposite to the previous trend.
Technical Indicators for Accumulation and Distribution Analysis
Traders use various technical indicators, such as:
- On-Balance Volume (OBV): Indicates the cumulative volume flow, which can reveal accumulation or distribution trends.
- Relative Strength Index (RSI): Helps identify overbought or oversold conditions, indicating potential distribution.
Risk Management in Trading Using Accumulation and Distribution
While accumulation and distribution provide valuable insights, traders should implement proper risk management strategies, including:
- Setting Stop-Loss Orders: Placing stop-loss orders helps limit potential losses in case of unexpected price movements.
- Diversification: Spreading investments across various assets reduces the impact of adverse price movements.
Integrating Accumulation and Distribution with Other Technical Analysis Tools
Accumulation and distribution analysis work best when complemented with other technical indicators like moving averages, Fibonacci retracements, and candlestick patterns.
Case Studies: Real-life Examples of Accumulation and Distribution
To better understand these concepts, let’s examine real-life examples of accumulation and distribution patterns in different financial markets.
Tips for Applying Accumulation and Distribution Principles Effectively
- Patient Observation: Accumulation and distribution patterns might take time to develop, requiring patience.
- Confirm with Volume: Analyzing trading volume alongside price movements can validate accumulation or distribution signals.
Advantages and Limitations of Accumulation and Distribution Analysis
While these concepts offer valuable insights, they are not foolproof. Market conditions can change rapidly, affecting the accuracy of accumulation and distribution analysis.
Accumulation and distribution are essential concepts for traders seeking to make informed decisions in financial markets. By understanding these phases and recognizing patterns, traders can gain a competitive edge and improve their trading strategies.
- What is the difference between accumulation and distribution?
Accumulation refers to the gradual accumulation of an asset by buyers, leading to potential price increases, while distribution involves the gradual selling off of an asset, possibly leading to price declines.
- Can accumulation and distribution patterns be manipulated?
Yes, market participants can attempt to manipulate accumulation and distribution to influence asset prices.
- Are accumulation and distribution patterns time-sensitive?
Yes, these patterns might take time to form, so patient observation is crucial.
- Can I solely rely on accumulation and distribution for trading decisions?
While accumulation and distribution provide valuable insights, it’s essential to consider other technical indicators and risk management strategies for well-rounded trading decisions.
- Where can I learn more about using accumulation and distribution in trading?
To enhance your knowledge, consider reputable financial education resources and books dedicated to technical analysis and trading strategies.
Free Trading Course
MARKET GEOMETRY AND CHARTISM
Geometry is also the best way to relate prices, through chartist figures we can predict certain behaviors in the market based on how it has responded over the years, there are different identified by experts and I will show you below so you can determine when you could complete a pattern.
Price keeps bouncing between two points without making new highs or lows
ONCE THE PRICE HAS PASSED THE RESISTANCE IT RISES AT LEAST THE SAME AMOUNT OF PIPS OF THE PRICE FROM ITS SUPPORT AS SHOWN IN THE IMAGE
Real-time forex alerts
Once it breaks upwards this triangle rises at least the same amount of pips as its opening
In this triangle, when it breaks its minimums or maximums, depending on the case, its profit extensions are equal to the opposite extensions
Once you reach your meeting point with the top is ideal for sales
OBSERVE HOW IN THIS CASE IT COMPLIES WITH BOTH, THE EXPANSIVE TRIANGLE AND THE CONSOLIDATION, WHICH MARKS AN IDEAL SELLING POINT AT THE TOP AND A BUYING POINT AFTER THE BREAK OF THE CONSOLIDATION
FLAG OR PENNANT
The pennant can be traded once it breaks to the upside or at its supports on purchase.
The take profit would be equal to the length of the upward extension of the flag and the stop loss would be set below the support of the flag.
Once it touches the first support point it forms a triangle pattern and breaks below the move, trade from the extremes or at the breakout.
The take profit would be equal to the length of the beginning of the fall to the first support in extension towards the trend since the breakout and the stop loss would be set below the top of the triangle.
The wedge is formed in the period of accumulation or distribution of a trend, and is reflected in the weakening of the momentum volume forming a kind of range or consolidation in peak ending the backward movement
Wedges can be applied to both bullish and bearish scenarios so you must first learn to differentiate when the price is entering a final phase of the movement
SHOULDER HEAD SHOULDER
In the drawing above we can see that the extension of the fall at the moment of the rupture is equal to the size of the HCH head and in the graph below we can appreciate how you can look for it, they are not always perfect but at the moment of crossing the support it falls with enough liquidity.
It should be noted that the shoulders head shoulders can be found both in this form and inverted and have the same validity.
Two highs marking resistance, the breakout is at the neck and last support up to previous resistance, stop loss above the ceilings
Two lows in a support zone, the break of the last high can be traded
JAPANESE CANDLESTICK PATTERNS
CLICK ON THE BUTTON TO GO TO THE JAPANESE CANDLESTICK PATTERNS PAGE AND LEARN MORE ABOUT CANDLESTICKS IN DETAIL
Fractality and proportion in trading
The elliot’s theory says that the market moves by waves and these are composed of two types of impulses mainly: impulsive waves and corrective waves.
Impulsive waves: They are the ones that go in favor of the trend and are longer.
Motor waves: Consists of 5 movements, 3 impulses and 2 reversals where a and b are reversals.
DIAGONAL SHOCK WAVES :
Diagonal waves only appear in the beginning and end waves, in the 1a or 5c .
DIAGONAL CONTRACTILE WAVES :
In this type of wave it is more like a wedge.
Simple corrective waves
The plane is composed of interior waves of 3 – 3 – 5 respectively.
Point b can be below or above point 0.
The 0A movement must be composed of 5 waves maximum.
The AB movement must be composed of 3 waves.
The BC movement must be composed of 5 waves.
The point e can be higher than c , and c than a but the inner part of the triangle must always be f higher than d and d higher than b .
Each wave is composed of 3 movements, the triangle can have up to 5 waves.
It happens in the same way if the movement is in reverse.
FULL CORRECTIVE WAVES
DOUBLE WXY STRUCTURE
TRIPLE WXYZ STRUCTURE
A combination of the above-mentioned waves
POINT C SHOULD NOT EXCEED POINT A
POINT D IS LOCATED AT 127.2 OF FIBONACCI RETRACEMENT
POINT C MUST NOT EXCEED POINT A
POINT D IS BETWEEN 78.6 AND 88.6 OF THE FIBONACCI RETRACEMENT.
Convergences in Trading
Trading in financial markets can be both exciting and challenging. For traders and investors, the ability to predict market trends and make informed decisions is crucial. One approach that many traders use is to analyze chart patterns and indicators to identify potential trading opportunities. In this article, we will explore the concept of «Convergences in Trading,» a valuable technique that traders can utilize to make more accurate predictions.
Convergences in trading refer to instances when two or more indicators or lines on a trading chart come together or move closer to each other. These convergences are considered significant because they often indicate a potential change in the market’s direction. Traders use these patterns to identify possible trend reversals or continuations, helping them make strategic decisions.
What are Convergences in Trading?
Convergences in trading occur when different technical indicators show similar patterns or align with the price movement on a trading chart. They suggest a level of agreement between indicators and the price action, providing traders with valuable insights into market dynamics.
Understanding the Concept
To grasp the concept better, let’s consider a hypothetical scenario where a stock’s price is in a downtrend, making lower lows. Concurrently, an oscillator, such as the Relative Strength Index (RSI), is also trending downward, but it starts making higher lows. This situation indicates a bullish RSI convergence, suggesting that the price decline might be losing momentum, and a potential uptrend could be on the horizon.
Types of Convergences
In trading, various technical indicators can exhibit convergences. Here are some common types of convergences that traders often encounter:
Moving Average Convergence Divergence (MACD)
MACD is a popular trend-following momentum indicator that highlights the relationship between two moving averages of an asset’s price. When the MACD line (the fast-moving average) converges with the signal line (the slow-moving average), it can signal a potential trend reversal or continuation.
Relative Strength Index (RSI) Convergence
RSI measures the speed and change of price movements and oscillates between 0 and 100. When the RSI aligns with the price movement, it can indicate a shift in market sentiment.
Stochastic Oscillator Convergence
The stochastic oscillator compares an asset’s closing price to its price range over a specific period. When the stochastic lines converge, it suggests a possible change in momentum and potential trading opportunities.
Bollinger Bands Convergence
Bollinger Bands consist of a middle band (SMA) and two outer bands that represent standard deviations from the SMA. A convergence occurs when the price moves towards the middle band, indicating a potential trend reversal.
Identifying Convergences in Trading Charts
To identify convergences, traders utilize various technical analysis tools and indicators. These tools help them interpret market data and spot potential trading signals.
Technical Analysis Tools
Some essential technical analysis tools include trend lines, support and resistance levels, and chart patterns like triangles, head and shoulders, and flags. These tools help traders analyze historical price data and predict potential future price movements.
Traders use a wide range of indicators, such as Moving Averages, RSI, MACD, Stochastic Oscillator, and Bollinger Bands, to identify market trends, momentum, and potential trading opportunities.