Suppgrt and Ressistance lines

•Resistance line is an imaginary line that upward price action cannot penetrate.when a resistance line is broken, it turn to a support

•Support  line is an imaginary line which  downward price action cannot break through.When a support line is broken,it turns to a resistance line. see diagram above.

Types of Trend

•Uptrend-rising market

•Down trend-falling Market

•Flat trend-ranging market

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Time Frames

•Fx market is regemented into time frames as follows

•Monthly

•Weekly

•Daily

•4 H

•1H

•15mins

•5mins

1min
This means that each candle stick represent data for the time frame you choose.

How price action is denoted in Fx market

•line chart

•Bar chart

•Candle stick. most traders prefer the use of candle stick.

https://www.mql5.com/en/charts/8547502/usdchf-h1-fxtm-ft
https://www.mql5.com/en/charts/8547568/usdchf-h1-fxtm-ft-global

Concept of Fx Market

•Different Countries have differernt currrencies.What is a legal tender in one country may not be the same in same in another.There is need for exchange.Currencies are traded in pairs.Stronger currencies are paired with weaker currrencies.eg Eur/usd Eur=europian currency,Usd=US currency.The pair is called Fx instrument.You can buy or sell the Pair .currency at the left hand side of the pair is stronger, it is called the base currency.The currency at the right hand of the Quote is weaker,it is the Counterquote currency.If the base currency is strong, you buy the pair.conversely,if the  the counter quote is stronger,you sell the pair.The strength and weaknes of a pair depend on several economic indices

DEFINITIONS

•Margin: The amount of money deposited with your Broker inorder to hold position in Forex market.

•Leverage: The amount given to you by your Broker inorder to hold a position in the forex market.It is expressed in ratio eg 1:25, 1:50;1:100, 1:200,1:500.

•Lot size: It is the fraction of your margin needed to place trade in forex market.•The  the larger the leverage, the the bigger the profit or loss

•Bull Market:it is a market that is Trending up.

•Bear Market: It is market that is trending down ward.

•Spread: It is the difference between ask and bid.

•Pip:Pip is an acronyn.It is a unit change in the last decimal figure of a currency quote

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INTRODUCTION TO FOREX TRADING

What is Forex

Forex  means forein  exchange.forex market is the most Liquid market in the world.About 1.3$ is traded in forex market daily.

Requirement for Trading forex

•Knowlegde

•Computer

•Strong Internet connection