A reversal refers to a change in the direction of an asset’s price trend. This means that if a market has been moving upward (an uptrend), a reversal would signal the start of a downward trend, and vice versa. Reversals can occur in any financial market and over various timeframes, from minutes in day trading…
A resistance level is a price point on a chart where an asset’s upward movement tends to slow down or reverse due to an increase in selling pressure. Traders often view resistance as a barrier that the price struggles to break through. This level is usually identified by past price action. Past price action is…
AI brings a different dimension. It can identify non-obvious patterns, simulate various market regimes, and more. Rather than simply executing rules, AI systems learn from data and adjust based on patterns
The quote currency is the second currency listed in a currency pair in the foreign exchange (Forex) market. It represents the amount of that currency needed to buy one unit of the base currency, which is the first currency in the pair. For example, in the EUR/USD pair, the U.S. dollar (USD) is the quote…
A pip, short for “percentage in point” or “price interest point,” is the standard unit of measurement used to express the change in value between two currencies in a forex pair. For most currency pairs, one pip equals 0.0001, or one-hundredth of a percent. For example, if the EUR/USD moves from 1.1050 to 1.1051, that’s…
A One Cancels the Other (OCO) order is a type of conditional order used in trading that combines two separate orders. When one of the orders is triggered and executed, the other is automatically cancelled. This allows traders to plan for multiple market scenarios while ensuring that only one of the two outcomes takes place….
Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. There are two main types of options: call options, which give the right to buy, and put options, which give the right to sell. Traders…
Non-Farm Payrolls (NFP) is a key economic indicator released monthly by the U.S. Bureau of Labor Statistics. It measures the total number of paid workers in the U.S., excluding employees in farming, government, private households, and nonprofit organizations. NFP data provides a snapshot of employment trends. It is considered a strong indicator of overall economic…
A net position refers to the overall exposure a trader or institution has in a particular financial instrument, after accounting for all buy (long) and sell (short) positions. It represents the difference between total long and total short positions. If a trader holds more buy positions than sell positions, the net position is net long;…