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Foundations of Forex Trading π₯
β’ What is Forex?
The Forex market is where currencies are traded 24/5. It's decentralized, with the largest volumes traded in pairs like EUR/USD, GBP/USD, and USD/JPY.
β’ Key Participants:
β’ Banks, institutions, governments, retail traders.
β’ Central banks (e.g., Federal Reserve, ECB) influence prices via monetary policy.
β’ Terminology:
β’ Pip: Smallest price movement (e.g., 0.0001 for most pairs).
Spread: Difference between bid/ask prices.
β’ Leverage: Borrowed capital to amplify trades (e.g., 1:100).
β’ Margin: Collateral required to open leveraged positions.
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Final Tips
β’ Backtest: Test strategies on historical data.
Combine Analysis: Use technical + fundamental analysis for better accuracy.
β’ Stay Updated: News events (e.g., Fed rates, GDP) can override technical signals.
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β’ Bearish Divergence: Price makes higher highs, but RSI makes lower highs.
. Breakout Trading
β’ Buy when price breaks above resistance with high volume.
β’ Sell when price breaks below support.
4. Bollinger Bands Squeeze
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