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Learn About the Currencies You Trade

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Noviarini

Learn About the Currencies You Trade in Forex Education_xx
To get started, you'll need to understand what you're trading. Understanding the currencies that you buy and sell makes a big difference. For example, a currency may be bouncing upward after a large fall and encourage inexperienced traders to "try to catch the bottom." The currency itself may have been falling due to bad employment reports for multiple months. Would you buy something like that? Probably not, and this is an example of why you need to know and understand what you buy and sell. Currency trading is great because you can use leverage, and there are so many different currency pairs to trade. It doesn't mean, however, that you need to trade them all. It's better to pick a few that have no relation and focus on those. Having only a few will make it easy to keep up with economic news for the countries involved, and you'll be able to get a sense of the rhythm of the currencies involved.


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#1 - February 05, 2019, 03:37:58 AM
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yes, we really have to study the type of currency we trade because it is very important for our trading progress so that it is not misguided,

on the basis of knowledge for each of the currencies we trade into mandatory rights, for example, we trade the EURUSD currency, we must know the characteristics of the euro and US Dollar, because fundamental learning is strongly recommended because apart from technical references fundamental also becomes a very important thing that cannot be separated
#2 - February 05, 2019, 11:59:57 AM

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in my opinion trading should focus on the technical we use, because that's what we use to enter the market. currency problems for me just enough to know the average daily range so that we can choose where the potential currency is or not. So there is no need to go into detail, because it will actually make you confused and miss opportunities in other currencies because you only focus on one currency
#3 - February 06, 2019, 06:31:26 AM

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To get started, you'll need to understand what you're trading. Understanding the currencies that you buy and sell makes a big difference. For example, a currency may be bouncing upward after a large fall and encourage inexperienced traders to "try to catch the bottom." The currency itself may have been falling due to bad employment reports for multiple months. Would you buy something like that? Probably not, and this is an example of why you need to know and understand what you buy and sell. Currency trading is great because you can use leverage, and there are so many different currency pairs to trade. It doesn't mean, however, that you need to trade them all. It's better to pick a few that have no relation and focus on those. Having only a few will make it easy to keep up with economic news for the countries involved, and you'll be able to get a sense of the rhythm of the currencies involved.
The point is that our trading is easier by mastering the pair that we are trading and knowing because the fundamentals of the price movements of the market are fundamental. That way trading will be directed and no doubt when we take buy / sell positions according to our analysis.

Each pair does have its own characteristics and we must understand it, each pair is also different from each other so we only need to trade with a pair that is really close to our understanding.
#4 - February 07, 2019, 08:18:15 AM

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The point is that our trading is easier by mastering the pair that we are trading and knowing because the fundamentals of the price movements of the market are fundamental. That way trading will be directed and no doubt when we take buy / sell positions according to our analysis.

Each pair does have its own characteristics and we must understand it, each pair is also different from each other so we only need to trade with a pair that is really close to our understanding.

right.
Every currency pair must have a reason why it goes up or down, and we have to understand that. We must also understand every factor that can move the value of a country's currency.
For example, when the GBPUSD pair drops, it does not mean that the USD currency is strong, the GBP currency may be weak.
#5 - February 08, 2019, 04:17:02 AM

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right.
Every currency pair must have a reason why it goes up or down, and we have to understand that. We must also understand every factor that can move the value of a country's currency.
For example, when the GBPUSD pair drops, it does not mean that the USD currency is strong, the GBP currency may be weak.
To find out the reason why a pair weakens / strengthens indeed we have to know the two currencies that we are trading. In addition, it is also important to note the correlation between pairs so that we are easier to find out what currencies are dominant.
#6 - February 08, 2019, 04:36:47 AM

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To find out the reason why a pair weakens / strengthens indeed we have to know the two currencies that we are trading. In addition, it is also important to note the correlation between pairs so that we are easier to find out what currencies are dominant.

That's what I want to ask, about currency pair correlation. Because according to some sources, this correlation technique can be used to maximize profits.
So can you explain a little about this correlation?
#7 - February 08, 2019, 04:49:56 AM

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That's what I want to ask, about currency pair correlation. Because according to some sources, this correlation technique can be used to maximize profits.
So can you explain a little about this correlation?
Pair correlation is the relationship between pairs, the value of correlation in general ranges between -1 and 1. Correlation -1 means that both pairs have a perfectly negative relationship, meaning that the pair moves in the opposite direction. If one of them rises, then the other one will go down.

Conversely, correlation 1 means that both pairs have a perfectly positive relationship, where both move in the same direction. If one pair rises, the other pair will also rise.

For example the EUR / USD pair and GBP / USD have a positive correlation and tend to move in the same direction even though not both pairs are in rhythm because the correlation between pairs is dynamic.
#8 - February 08, 2019, 04:57:41 AM

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Pair correlation is the relationship between pairs, the value of correlation in general ranges between -1 and 1. Correlation -1 means that both pairs have a perfectly negative relationship, meaning that the pair moves in the opposite direction. If one of them rises, then the other one will go down.

Conversely, correlation 1 means that both pairs have a perfectly positive relationship, where both move in the same direction. If one pair rises, the other pair will also rise.

For example the EUR / USD pair and GBP / USD have a positive correlation and tend to move in the same direction even though not both pairs are in rhythm because the correlation between pairs is dynamic.

So when I choose buy EURUSD, then I can also buy GBPUSD? that way I can maximize my profit.
But in my opinion this technique is a double-edged knife. You could say we will get a double profit when my analysis is correct, but I will also experience a substantial loss if my analysis is wrong. ::)
#9 - February 08, 2019, 06:21:46 AM

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To get started, you'll need to understand what you're trading. Understanding the currencies that you buy and sell makes a big difference. For example, a currency may be bouncing upward after a large fall and encourage inexperienced traders to "try to catch the bottom." The currency itself may have been falling due to bad employment reports for multiple months. Would you buy something like that? Probably not, and this is an example of why you need to know and understand what you buy and sell. Currency trading is great because you can use leverage, and there are so many different currency pairs to trade. It doesn't mean, however, that you need to trade them all. It's better to pick a few that have no relation and focus on those. Having only a few will make it easy to keep up with economic news for the countries involved, and you'll be able to get a sense of the rhythm of the currencies involved.
the answer to all your quotes we must master the technical and fundamental analysis of a currency, and do not try to enter in a hurry if you have not yet received a technical and fundamental sign that this eye is weakening or is strengthening, but if the tips can master both of them then the currency is our friend heheh
#10 - February 08, 2019, 03:33:53 PM

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The point is that our trading is easier by mastering the pair that we are trading and knowing because the fundamentals of the price movements of the market are fundamental. That way trading will be directed and no doubt when we take buy / sell positions according to our analysis.

Each pair does have its own characteristics and we must understand it, each pair is also different from each other so we only need to trade with a pair that is really close to our understanding.
Choosing currency pair for trading also an important part as trader, many trader maybe choose eurusd because this pair has characteristic with good average movement and small spread, for scalping trading this pair is very suitable for scalper, indeed currency also influenced by fundamental news on these countries, although not all news will giving impact but reading news also good for trader
#11 - February 09, 2019, 07:30:28 AM

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Choosing currency pair for trading also an important part as trader, many trader maybe choose eurusd because this pair has characteristic with good average movement and small spread, for scalping trading this pair is very suitable for scalper, indeed currency also influenced by fundamental news on these countries, although not all news will giving impact but reading news also good for trader
a slow and calm pair is very suitable for beginners plus a pair with a small spread will make it easier for us to get maximum profit.
#12 - February 09, 2019, 08:26:24 AM

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To get started, you'll need to understand what you're trading. Understanding the currencies that you buy and sell makes a big difference. For example, a currency may be bouncing upward after a large fall and encourage inexperienced traders to "try to catch the bottom." The currency itself may have been falling due to bad employment reports for multiple months. Would you buy something like that? Probably not, and this is an example of why you need to know and understand what you buy and sell. Currency trading is great because you can use leverage, and there are so many different currency pairs to trade. It doesn't mean, however, that you need to trade them all. It's better to pick a few that have no relation and focus on those. Having only a few will make it easy to keep up with economic news for the countries involved, and you'll be able to get a sense of the rhythm of the currencies involved.
aside from technical and fundamental, many pair has their own characteristic, and thats why i agree from what you said. we need to know and fully know about each pair and the major pair like GBPUSD EURUSD and many more, of course ti gain some pip and profit haha
#13 - February 09, 2019, 09:13:31 AM

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RELATIVE STRENGTH INDEX (RSI)
The Relative Strength Index (hereinafter we refer to it as RSI), has similarities to stochastic in terms of helping to recognize overbought and oversold conditions. This indicator was developed by J. Welles Wilder, Jr. and was introduced in 1978. Wilder junior himself is a mechanical engineer better known as a technical analyst who gave birth to several well-known technical indicators besides RSI.

RSI has values from 0 (zero) to 100 (one hundred). RSI can help you to predict overbought and oversold conditions. The market is considered overbought if the RSI is below 30 and is considered overbought if the RSI is above 70.

RSI
RSI

In general, RSI is used to look for buy and sell signals, like other indicators. The sell signal is sought when the RSI has entered the overbought area, instead a buy signal is sought when the RSI has entered the oversold area.

Sell signal confirmation is when the RSI drops from the overbought area and is below 70, while the buy confirmation is when the RSI rises from the oversold area and is above 30.

RSI SIGNAL
RSI SIGNAL

RSI is not as aggressive as stochastic. RSI is an indicator that rarely raises buy or sell signals. Therefore RSI may not be suitable for aggressive traders, namely traders who want to make as many and as many transactions as possible.

But because the RSI rarely raises a signal, usually the appearance of a signal is followed by a fairly long movement. Therefore the RSI is suitable for traders who tend to be calm, who are very patient waiting for the RSI signal to make transactions.

There are several tips that you can use in using RSI to anticipate the appearance of fake signals. We call it a "six step RSI move". 🙂

Rules for buying:

The RSI must be in the oversold area (below 30).
Wait until the RSI is released from the oversold area (up to 30).
As an amplifier, make sure there is a bullish candlestick when the RSI is released from the oversold area.
Wait until the candlestick is closed.
Entry (buy) at the opening of the next candlestick.
Place the stop loss just below the last swing low.
The illustration of the steps above are as follows:

Step 1 - 3:

Buy RSI 1

Step 4 - 6:

Buy RSI 2

And the next incident turns out:

Buy RSI 3

 Tip: do not place the stop loss at the last swing low. In anticipation, keep it slightly below the swing low.

Along with experience and the amount of practice, you will be more familiar with the characteristics of the market so you can estimate where you should place your stop loss.

Rules for selling:

The RSI must be in the overbought area (above 70).
Wait until the RSI leaves the overbought area (drops below 70).
As an amplifier, make sure there is a bearish candlestick when the RSI is released from the overbought area.
Wait until the candlestick is closed.
Entry (sell) at the opening of the next candelstick.
Place the stop loss just above the last swing high.
The practices of the above moves are as follows:

Step 1 - 3:

Sell RSI 1

Step 4 - 6:

Sell RSI 2

And ... voila!

Sell RSI 3

 

Divergence with RSI, why not?

RSI can also recognize when divergence occurs. The method is the same as recognizing divergence in other indicators such as stochatic and CCI.

A bullish divergence example using RSI:

RSI bullish divergence
RSI bullish divergence

The following is an example of bearish divergence with RSI:

RSI bearish divergence
RSI bearish divergence

Well, that's how we discuss the RSI. Keep on practicing, so that your sensitivity is more honed!
RSI is good indicator indeed but i feel like when there is a high impact news, rsi will not have any function at all, not only in minor but major pair also, like i say in top, its better to know all pair characteristic to get to know what will happen, dont forget about fundamental and technical
#14 - February 09, 2019, 10:15:49 AM

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This is why I always trade in 2 or 3 pair, never jump to 5 or more pair if you dont know how the market work, at least focus in 1 or 2 pair for started. If you think you good enough, then go to other pair

Cheer
#15 - February 09, 2019, 10:18:42 AM

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