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How to use technical analysis when trading forex

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How to use technical analysis when trading forex

The foreign exchange (forex) market is one of the most actively traded, volatile and highly liquid markets in the world. The exchange of currencies is an important part of modern life, facilitating the international trade of goods, products and services. The forex market currently oversees a huge daily trading volume of $5 trillion, with online trading platforms offer 24-hour access to the global market. 

The market’s volatile nature, presents you with potential to make gains on your position, however it can increase the risk of incurring losses. To help minimise the risk of making losses, it’s important to partake in thorough research to understand the factors that can affect your trade, as well as choosing to use either technical or fundamental analysis to help you effectively make informed decisions with regards to your position in the market. 

In this article, we will help you to find out more about forex trading, explaining technical analysis, and how you can use it when trading forex. 

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What is technical analysis?

Technical analysis is a variety of different techniques used to try to forecast future price movements of financial products, based on data from historical price movements and patterns. The forex market is particularly suited to technical analysis, as markets tend to trend over time, and patterns start to develop.

Technical indicators

There are many types of technical indicators that forex traders can analyse as part of their trading strategy, including: 

  1. Moving averages

Moving averages are leading technical indicators that help to identify a break in price actions, as well as gage the general direction of the market. Taking the form of a line drawn on a chart, a moving average is used to find the mean value of a forex pair over a set amount of time, offering the trader an insight into the general movement of the value of the currency pair.

Whilst moving averages are generally more beneficial to traders who are working with longer time frames, such as position traders, they are usually based on historical data, meaning they are slower to respond to fast-evolving market conditions.

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Also Read: 3 of the Best Forex Brokers

  1. Oscillators 

Oscillators can be used to identify the point at which the market reaches a limit, meaning a trend is likely to change. When a currency pair’s price gets soars, it is said to be overbought, meaning that the price is likely to either stay stable or decrease. If the asset’s value fell, new traders would likely open a position, which could in turn, raise the price. 

As one of the most significant forex indicators, oscillators help traders to identify trends ahead of time, helping you to anticipate price movements and maximise your opportunities to profit. It’s important to note however, that whilst they can offer valuable insight into the speed and momentum of the market, oscillators can display false signals, so they can be best used in conjunction with other indicators.

  1. Bollinger Band

Bollinger Bands are relatively straightforward and are widely used by forex traders. They are a volatility channel that indicates the start of a trend if the price of a currency pair surpasses a moving average. Bollinger Bands offer a wide, easy visual representation of volatility in the market. Increased market volatility is reflected by a wider distance between the two outer bands, and a narrowed distance between the bands represents the potential of a price breakout. 

Bollinger Bands are a reflection of past performance, meaning they can become less accurate and tricky to use if you’re hoping to identify trade opportunities ahead of time. Because of this, Bollinger Bands are more useful when paired alongside other technical and fundamental indicators. 

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Also Read: Forex Day Trading for Beginners: How to Get Started and Strategies You Must Learn to Trade Successfully

When forex trading, it is important to take into consideration the variety of factors that can influence the market. You should undertake extensive research and learn about the strength of the economy in the country’s currency you wish to trade, as well as keep up to date with news stories and other events that may influence the value of a currency pair.

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Passionate news enthusiast with a flair for words. Our Editorial Team author brings you the latest updates, in-depth analysis, and engaging stories. Stay informed with their well-researched articles.

Net Worth

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

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Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Who is Alan Patricof?

Alan Patricof is a prominent figure in the American investment landscape, renowned for his contributions to venture capital. With a career spanning over four decades, Patricof has been instrumental in shaping the growth of numerous global companies, including America Online, Apple Computer, and Audible. His legacy extends beyond business, with involvement in community organizations and government initiatives.

Alan Patricof Career

Alan Patricof’s career in venture capital began in the industry’s early days. He founded Patricof & Co. Ventures Inc., a precursor to Apax Partners, one of the world’s leading private equity firms. Later, he established Greycroft Partners, focusing on early and expansion-stage investments in digital media. Throughout his career, Patricof’s vision and leadership have played a pivotal role in advancing the venture capital field.

Alan Patricof’s Net Worth

As of May 3, 2024, Alan Patricof’s estimated net worth stands at over $1 million. His wealth is derived from various investments, including holdings in Boston Properties Inc. and successful ventures in digital media. Despite humble beginnings, Patricof’s entrepreneurial spirit and strategic acumen have propelled him to financial success.

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Alan Patricof Age

Born in 1934, Alan Patricof is currently in his late eighties. Despite his advanced age, he remains active in the business world, leveraging his wealth of experience to mentor emerging entrepreneurs and drive innovation.

Alan Patricof Family: Wife and Children

Alan Patricof has been married to his wife Susan for over 48 years. Together, they have three children and seven grandchildren. Family holds great importance to Patricof, and he credits his upbringing and heritage for shaping his values and work ethic.

Alan Patricof Height and Weight

While specific details about Alan Patricof’s height and weight are not readily available, his stature in the investment community is undeniable. Patricof’s impact transcends physical measurements, as he continues to leave a lasting legacy in venture capital and philanthropy.

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Net Worth

Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

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Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

Who is Stephen M. Ross?

Stephen M. Ross, the Chairperson of The Related Companies, is a distinguished figure in the real estate sector, renowned for his significant contributions and profound impact. Born on May 10th, 1940, in Detroit, Michigan, Ross embarked on his journey into real estate at a young age, demonstrating remarkable diligence and entrepreneurial spirit. Despite initially pursuing a career as a tax attorney, Ross soon discovered his genuine passion for real estate investment, laying the foundation for his illustrious career.

Stephen M. Ross Career

Ross’s career trajectory is marked by pioneering ventures and transformative projects. In 1972, he founded The Related Companies, which initially focused on subsidized low and moderate-income apartments. Over the years, Ross transitioned to higher-profile projects, including the iconic Hudson Yards development, valued at over $7 billion. His visionary approach and strategic partnerships have cemented his reputation as a prominent figure within the real estate industry.

Stephen M. Ross Net Worth

As of 2024, according to Celebrity Net Worth, Stephen M. Ross’s net worth stands at an impressive $10 billion, solidifying his status as one of the wealthiest individuals globally. Ross’s wealth accumulation is attributed to his unparalleled success as a real estate mogul, with an estimated annual income of nearly $700 million derived from royalties on his diverse property holdings. His continued involvement in the real estate sector, with ongoing projects in New Jersey and Florida, further contributes to his substantial net worth.

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Stephen M. Ross Age

Currently, Stephen M. Ross is 83 years old, born on May 10th, 1940. Despite his age, Ross remains actively engaged in his professional pursuits, demonstrating resilience and dedication to his craft.

Stephen M. Ross Family: Wife and Children

Ross’s personal life is characterized by familial bonds and enduring relationships. He is happily married to Kara Ross and is the proud father of four children. Ross’s commitment to family values underscores his holistic approach to life and business.

Stephen M. Ross Height and Weight

Physically, Stephen M. Ross stands at a height of 6 feet 2 inches (1.88m) and maintains a healthy body weight of around 72 kg. Despite his busy schedule, Ross prioritizes his health and well-being, engaging in activities such as volleyball and tennis.

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Net Worth

Mike Markkula Net Worth 2024: How Much is the Former CEO of Apple Worth?

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Mike Markkula Net Worth 2024: How Much is the Former CEO of Apple Worth?

Who is Mike Markkula?

Mike Markkula, born Armas Clifford “Mike” Markkula Jr. on February 11, 1942, in Los Angeles, California, is an American entrepreneur renowned for his pivotal role in the early days of Apple Inc. After graduating from the University of Southern California with degrees in electrical engineering, Markkula amassed considerable wealth through stock options while working at Fairchild Semiconductor and Intel.

Mike Markkula Career

Markkula’s career trajectory took a significant turn in 1977 when he was introduced to Steve Jobs by Venture Capitalist Don Valentine. Recognizing the immense potential of the Apple II computer, Markkula became the company’s first major angel investor, providing $250,000 in funding. He subsequently served as Apple’s CEO from 1981 to 1983, overseeing critical phases in the company’s growth and development.

Mike Markkula’s Net Worth

As of 2024, according to Celebrity Net Worth, Mike Markkula boasts an estimated net worth of $1.2 billion. His wealth stems from astute investments, particularly in Apple Inc., where he played a foundational role as an early investor and executive.

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Mike Markkula Age

Born on February 11, 1942, Mike Markkula is currently [age] years old.

Mike Markkula Family: Wife and Children

Markkula is married to Linda, and together they have made significant real estate investments, including properties in Carmel Valley, Woodside, and Hawaii. They have engaged in philanthropy, with notable donations to Santa Clara University’s Markkula Center for Applied Ethics.

Mike Markkula Height and Weight

Unfortunately, information regarding Mike Markkula’s height and weight is not readily available.

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