Risk management involves identifying, analyzing, accepting and/or mitigating trading decision uncertainty. Since forex trading entails taking considerable financial risks, risk management plays an important role in creating a successful trading Journey, Learning how to minimise losses to maximise Profits.
How accurate is candle stick pattern?
Studies carried out on the effectiveness of candlestick patterns seem to agree that overall, the patterns are successful 50% of the time. As such, traders need to learn how to determine which patterns are likely to turn profitable and which ones will end up losing money.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
For the RSI to hit the 80 level, a ratio of 4:1 is needed. That is an Up Average that is four times larger than the Down Average and is a condition that does not occur very often. When the ratio is 20:1 and the Up Average is 20 times the Down Average, the Relative Strength Index value at this time is only 95.24
Want to learn how to trade like the BANK'S?, What Is the Smart Money Concept?, Smart money is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals. Smart money was originally a gambling term that referred to the wagers made by gamblers with a track record of success