Becoming a professional forex trader, part:2
Pip and swap
Pip (percentage in points) is the value of change in Paris. A pip is the price movement that can be made with an exchange rate of the forex market. Below is a better idea.
For instance Buy signal @1.24684
Swaps are charges imposed by the brokers if a position is not closed and carried over to the next day. So when opening your real account choose a broker with low spread like octafx for example
Market types
There are only two types of markets which are;
1.Bullish market: when the market increases in price , that's the market is on an up trend 📈 and here investors buy the market.
2.Bearish market: when the market declines , it is a down trend 📉 and investors sells the market here.
Cycles of market
There are multiple phases which determine the actions you take when entering a trade.
Phase 1: Accumulation
Phase 2: Mark up
Phase 3: Distribution
Phase 4: Mark down
The market goes around these phases everyday to determine when to get in and out of a trade you follow these cycle.
- Accumulation: smart money recognizes cheap price markets and start to collect them in large numbers.
- Mark up: during this phase, smart money would have collected all the stocks and started to move up after breaking the resistance level of a price.
3.Distribution:this is when smart money will find the price that is at it's peak and start to release their holdings. The previously bullish momentum will drop due to the release of shares. Buyers will usually get stuck here.
4.Markdown: smart money let's go of all their shares and the price will fall even more. They will wait for price to drop at a level considered to be too low to regroup and recollection will continue again.
hi @obiwoke
Please slow down with amount of publications posted within Project.hope community.
Ok @crypto.piotr