Month: October 2022

How to Trade Support and Resistance

Now that you know the basics of how to trade support and resistance, it’s time to apply these basic but extremely useful technical tools in your trading. Because here at BabyPips.com we want to make things easy to understand, we have divided how to trade support and resistance levels into two simple ideas: the Bounce and the Break. The… Continue reading How to Trade Support and Resistance

Trend Channels

If we take this trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend, we will have created a “channel”. No, we’re not talking about ESPN, National Geographic Channel, or Cartoon Network. These channels aren’t television channels, they’re trend channels, sometimes also called price channels. Still, this doesn’t… Continue reading Trend Channels

Trend Lines

Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way… Continue reading Trend Lines

3 Types of Forex Charts and How to Read Them

In order to study how the price of a currency pair moves, you need some sort of way to look at its historical and current price behavior. A chart, or more specifically, a price chart, happens to be the first tool that every trader using technical analysis needs to learn. A chart is simply a visual representation of a currency pair’s price… Continue reading 3 Types of Forex Charts and How to Read Them

Which Type of Analysis for Forex Trading is Best?

Ahhhh, the million-dollar question… Throughout your journey as an aspiring trader, you will find strong advocates for each type of analysis. Whereas technical analysis (TA) involves poring over charts to identify patterns or trends, fundamental analysis (FA) involves poring over economic data reports and news headlines. Hardcore traders in the technical analysis camp scream, “Fundamental analysis doesn’t matter! FU… Continue reading Which Type of Analysis for Forex Trading is Best?

What is Sentiment Analysis?

Sentiment analysis is used to gauge how other traders feel, whether it’s about the overall currency market or about a particular currency pair. Earlier, we said that price action should theoretically reflect all available market information. Unfortunately for us forex traders, it isn’t that simple. The forex markets do not simply reflect all of the information out there… Continue reading What is Sentiment Analysis?

What is Fundamental Analysis?

Whereas technical analysis involves poring over charts to identify patterns or trends, fundamental analysis involves poring over economic data reports and news headlines. (And even random tweets from a certain world leader before he was banned.) Fundamental analysis is a way of looking at the forex market by analyzing economic, social, and political forces that may affect currency… Continue reading What is Fundamental Analysis?

What is Technical Analysis?

Technical analysis is the framework in which traders study price movement. The theory is that a person can look at historical price movements and determine the current trading conditions and potential price movement. Someone who uses technical analysis is called a technical analyst. Traders who use technical analysis are known as technical traders. The main evidence for using… Continue reading What is Technical Analysis?