Market order continue

§Buy limit:This the pending order you place at particular price level below the current price,anticipating that price will fall  to such level when the market is in buy mode.

§Sell limit:This the pending order you place at given price level above the current price, anticipating that price will rise to that level when the market is in a sell mode

§Stop order:This the order you place at given price level either buy or sell market such that if the market is going against you,the order is triggered to stop further loses.

Market orders

•Market exution:This  is excuting the market either buy or sell at the current market price.

•Pending order: It is order you place outside the current price anticipating that price will get to certain level either buy or sell.

i.Buy stop:This is the pending order you place at a given price level above the current market price when the market is in a buy mode

ii.Sell stop:This the pending order you placed at a certain market level below the current price when the market is in a sell mode

Resistance and support 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.

Market Analysis

•Fundamendal Analysis:This market analysis using economic indices such as Gdp,interest rate.inflation,unemployment nonfarm pay roll.These factors can affect the currencies either positively or negatively

•Technical analysis:This is analyzing market using Technical indicators.These indicators can point market strenght and weakness.They can be deployed effectively in entering and exiting trade eg moving averages,schostatic slow,RsI commodity channel index.bolligerband, etc.

•Fundamendal Analysis:This market analysis using economic indices such as Gdp,interest rate.inflation,unemployment nonfarm pay roll.These factors can affect the currencies either positively or negatively

•Technical analysis:This is analyzing market using Technical indicators.These indicators can point market strenght and weakness.They can be deployed effectively in entering and exiting trade eg moving averages,schostatic slow,RsI commodity channel index.bolligerband, etc.

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