JAPANESE CANDLE STICK ANATOMY

Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there’s nothing naughtier than checking out the bodies of candlesticks!

LONG BODY vs SHORT BODY

Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. This means that either buyers or sellers were stronger and took control.

Short bodies imply very little buying or selling activity. In forex lingo, bulls mean buyers and bears mean sellers

LONG CANDLESTICK SHADOWS

If a Japanese candlestick has a long upper shadow and short lower shadow, this means that buyers flexed their muscles and bid prices higher.

But for one reason or another, sellers came in and drove prices back down to end the session back near its open price.

If a Japanese candlestick has a long lower shadow and short upper shadow, this means that sellers flashed their washboard abs and forced price lower.

But for one reason or another, buyers came in and drove prices back up to end the session back near its open price.

LESSON 6: MOVING AVARAGES.

Moving averages are one most commonly used technical indicators.

A moving average is simply a way to smooth out price fluctuations to help you distinguish between typical market “noise” and actual trend reversals.

By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods.

The “length” or the number of reporting periods including the moving average calculation affects how the moving average is displayed on a price chart.

The shorter its “length”, the fewer the data points that are included in the moving average calculation, which means the closer the moving average stays to the current price.

Now, you’re probably thinking, “C’mon, let’s get to the good stuff. How can I use this to trade?”

You need to know the basics first!

After you’ve got that on lockdown like Argentinian soccer player Lionel Messi’s ball-handling skills, we’ll teach you the different ways to use moving averages and how to incorporate them into your trading strategy.

By the end of this academy, you’ll be just as smooth as Messi’s!⚽️🥇🏆

LESSON 7: FUNDAMENTAL ANALYSIS

Whenever you hear people mention fundamentals, they’re really talking about the economic fundamentals of a currency’s host country.

Economic fundamentals cover a vast collection of information –whether in the form of economic, political or environmental reports, data, announcements or events.

Fundamental analysis is the use and study of these factors to forecast future price movements of currencies.

We like to be a little crazy by saying you should use BOTH!

Technically-focused strategies are blown to bits when a key fundamental event occurs.

In the same respect, pure fundamental traders miss out on the short-term opportunities that pattern formations and technical levels bring.

A mix of technical and fundamental analysis covers all angles. 

Fundamental Factors That Affect Currency Values

There are several fundamental factors that help shape the long-term strength or weakness of the major currencies and will affect you as a forex trader.

We’ve included what we think are the most important for your reading pleasure👇🏼

-Economic Growth and Outlook: It’s easy to understand that when consumers perceive a strong economy.
Consumers feel happy and safe, and they spend money. Companies willingly take this money and say, “Hey, we’re making money! Wonderful! Now… uh, what do we do with all this money?”

Companies with money spend money. And all this creates some healthy tax revenue for the government.