Bullish Measured Move Trading Example. Now let’s look at an example of how this would look on an FX price chart: The image above is the daily chart of the USD/CHF Forex pair for Nov – May The image shows a bullish Measured Move trading blogger.comted Reading Time: 10 mins One of the key benefits of forex trading is the opportunity it offers traders in both bull and bear markets. This is because forex trading is always done in pairs, when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets Apr 22, · Bearish Pennants. A bearish pennant is formed during a steep, almost vertical, downtrend. After that sharp drop in price, some sellers close their positions while other sellers decide to join the trend, making the price consolidate for a bit. As soon as enough sellers jump in, the price breaks below the bottom of the pennant and continues to Estimated Reading Time: 2 mins
Bullish and Bearish Bias in Forex Trading
Is there such a thing as a bullish or bearish bias in Forex trading? Is finding such a bias in your own trades bad? To answer these questions, it is first necessary to get a clear understanding of the terms.
In Forex trading, when you are buying a currency pair going longexpecting it to rise, it is said that you are bullish on that currency pair. Also, when a currency pair rises, that exchange rate movement is said to be bullish. When you are selling a currency pair going short in Forex, i. When a currency pair declines, such an exchange rate movement is said to be bearish.
When the average number of long currency trades is higher than the average number of bearish currency trades due to some fundamental or technical reasons, it is said that the market has a bullish bias. The same is true for your own trade history, if you have significantly more long trades than short ones on one currency pair, then there is a bullish bias in your system. If short currency trades prevail over long currency trades, then such a situation is called a bearish bias.
If your Forex trading account statement contains more short trades than long ones when looking at a given currency pair, then you have a bearish bias in your trading. Stock market is known to have a rather strong bullish bias as it's much easier for investors to buy the stocks rather than sell. Forex, on the other hand, should be completely unbiased, as it is a completely symmetrical market, where a long trade on a currency pair e.
However, bearish and bullish biases against specific currencies are commonplace. For example, there is a long-term bearish bias in US dollar as its yearly chart is definitely downward-trending since Checking your trading journal for biases can be a good idea to learn if you are predisposed to take one side of trades more than the other side.
But you need to be cautious interpreting such a bias, bullish and bearish trade in forex. If your bias coincides with the actual direction of the exchange rate movement during the same period, bullish and bearish trade in forex, then there is nothing to worry about.
If your bias goes against what was happening in the market, then there is a bullish and bearish trade in forex. On the other hand, if your bullish bias coincided with a period of decline in the currency pair, that is a reason for worry — you shouldn't let such biases spoil your trading performance. If you have any comments or questions regarding bearish and bullish biases in Forex trading, you can discuss them in our Forex forum. If you want to get news of the most recent updates to our guides or anything bullish and bearish trade in forex related to Forex trading, you can subscribe to our monthly newsletter.
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Bull Trap Trading Strategy for Forex Traders ��
, time: 7:14How to Trade Bearish and Bullish Pennants in Forex - blogger.com
One of the key benefits of forex trading is the opportunity it offers traders in both bull and bear markets. This is because forex trading is always done in pairs, when one currency is weakening the other is strengthening thereby allowing you to take advantage of rising and falling markets. Bull and bear markets are important to pay attention Is there bullish or bearish bias in Forex? Stock market is known to have a rather strong bullish bias as it's much easier for investors to buy the stocks rather than sell. Forex, on the other hand, should be completely unbiased, as it is a completely symmetrical market, where a long trade on a currency pair (e.g., EUR/USD) is a short trade on Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosure. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. *Increasing leverage increases risk. GAIN Capital Group LLC (dba blogger.com) US Hwy / Bedminster NJ , USA
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