1. Forex chart patterns
Forex chart patterns are a set of rules that help traders predict future price movements of currencies. These rules are based on historical data and are used to identify trends and patterns in currency prices. Chart patterns are useful tools for predicting future price movements of currencies and they can be applied to any market.
2. Currency pairs
Currency pairs are two-way exchanges between different countries currencies. There are many currency pairs, including USD/JPY, GBP/USD, AUD/NZD, EUR/AUD, CAD/CHF, etc.
3. Technical analysis
Technical analysis is the study of past price movement of a financial instrument in order to predict its future price movement. Traders use technical indicators to analyze charts and make predictions about the direction of the price.
4. Support levels
Support levels are the lowest price points at which a currency trades. If the price drops below the support level, then the current value decreases. A currency may have multiple support levels depending on how many times the price touches that level.
5. Resistance levels
Resistance levels are the highest price points at which a financial instrument trades. When the price reaches a resistance level, it becomes more difficult to sell. If the price rises above the resistance level, then the value increases.
Trendlines are horizontal or vertical lines drawn on a chart to show the trend over time. Trendlines are often used to determine whether a currency is trending up or down.
7. Fibonacci retracement
The Fibonacci retracement is a ratio that shows the percentage of a currency move that occurred before the current price point. The Fibonacci retracing tool helps traders understand the potential of price movement.