Forex Education Articles for Beginner and Experienced Traders
The main objective of Forex Dominion is to educate all those interested in Forex trading about the most important aspects to succeed in investing in the currency markets. Undoubtedly, the Forex market offers excellent opportunities to obtain high incomes in a short time, but it also entails significant risks that must be taken into account. Therefore, it is essential to have deep knowledge about the markets, especially about the currency pairs in which we trade, in order to have a clear picture of what we can or can not expect. Many people get carried away by the promises to earn a lot of money in a short time, which are mainly used by brokers and other related companies that seek to attract new customers eager to invest. However, the reality is that many people who open a trading account in a broker specializing in Forex trading end up losing their money in a short time because they believe that everything comes down to buying and selling when the reality is something more complex.
The fact is that like in any other occupation in life, trading requires study, practice, and patience. It’s not just about opening an account and becoming a millionaire overnight. The most successful traders, usually are studious people who are dedicated to learning everything related to what is for them, their modus vivendi. They are people who study the market, know it deeply, and master all aspects that can influence their chances of success. Some even spent months and even years learning about the market before risking their money without further consideration.
Therefore, it is clear to the naked eye that education in trading is basic if we want to have any chance of success as traders, whatever the market in which we are trading, be it the Forex or the stock market for example. For example, we can have the best trading system, but if we do not have the right psychology or a good money management plan, in the long term we will end up failing.
The lack of education of many beginning traders is evidenced by the simple fact that most traders do not know that a money management plan is essential if you want to stay alive in the market. In fact, a good trading strategy without a good money management plan is less likely to succeed than a regular trading strategy without a sound money management plan. It’s that simple!
Therefore, much of the educational content of this site focuses on basic aspects related to trading, mainly the following:
Technical Analysis
- Center of Gravity Indicator (COG) of John Ehlers
Technical analysis offers traders numerous tools to decode market movements, and among the lesser-known but highly effective indicators is the Center of Gravity (COG). This unique oscillator, developed by renowned … Read more - Long Black Candlestick Pattern
The Big Black Candlestick is a confirmation pattern for downtrends and is noted for having a high reliability. Itis characterized by open near the maximum and close near the minimum, with … Read more - Woodie’s Pivot Points – Definition and Formulas
Pivot points are a valuable tool for traders as they allow the calculation of support and resistance levels that can be used as a reference point to develop an entire … Read more - Long White Candlestick Pattern
The Long White Candle candlestick pattern appears opening near the minimum and closing very near the maximum of the market session. Its figure is much larger than those produced by … Read more - Oscillator of a Moving Average (OsMA) – Main Features
The OsMA (Moving Average of Oscillator) is a technical analysis indicator that measures the difference between an oscillator (usually the MACD) and its signal line (usually a moving average of … Read more - Klinger oscillator in trading: how to take advantage of this indicator?
The Klinger oscillator in trading is one of many technical indicators used to find buying and selling opportunities in financial markets. The Klinger oscillator is unique in that it takes … Read more
Fundamental Analysis
- United States Existing Home Sales Indicator
General Definition The US Existing Home Sales is a report released by the National Association of Realtors (NAR) that provides information on the number of previously owned homes that were … Read more - Stagflation – Definition and Effects on the Economy
Stagflation in a country is the combination of inflation and economic stagnation. This phenomenon unites these two concepts, which when they occur at the same time are devastating for the … Read more - Central Banks – What are they, Definition and function
Central banks are the entities that have a monopoly on the production and distribution of official money in a nation or bloc of countries. In turn, it is the institution … Read more - What is a K-shaped economic recovery?
The outbreak of the COVID-19 pandemic brought an unprecedented slowdown to the world economy. Now, economists wonder what kind of economic recovery awaits us. With COVID-19 spreading around the world … Read more - Effects of Macroeconomic Events in the Forex Market
The traders and investors that trades in the Forex market in the short term focus mainly on the most important economic news of the week and how they can affect … Read more - Personal Income and Consumption Index Indicator
General definition The Personal Income and Consumption Index is a report from the United States that includes both personal income and consumption expenditures from all sources. This is a monthly figure, which … Read more
Forex Systems
- What is the Sharpe ratio?
The Sharpe Ratio was developed by Nobel Prize William Sharpe of Stanford University. It measures numerically the historical Profitability/Volatility (standard deviation) ratio of an Investment Fund. It is calculated by dividing the … Read more - Mean Reversion Trading Strategies
Mean Reversion Strategies aim to generate profit when prices return to the mean after deviating from it. A typical example is buying when a stock’s price drops significantly, anticipating a … Read more - Trading System with the Awesome, Stochastic, and EMA indicators
Next, we will present a simple technical analysis trading system based on signals from three well-known technical indicators: the stochastic oscillator, the Awesome oscillator, and the exponential moving average (EMA). … Read more - Algorithmic Forex Trading: What it is and How it Works?
Algorithmic trading is a form of trading in which you use an algorithm, based on a set of predefined parameters, to open or close positions on your behalf. Algorithmic trading … Read more - The SQN ratio (System Quality Number)
Introduced by Van Tharp in 2008 in his book The Definitive Guide to Position Sizing, the System Quality Number, abbreviated as SQN, is an indicator designed to evaluate or measure … Read more - The win rate in Forex
The win rate is a popular performance indicator used in Forex trading to measure the success of a trading system or strategy. The win rate is the percentage of winning … Read more
Forex Analysis Tools
- HighLow Zones Indicator for MetaTrader 5
In this article, we will present a modified indicator for MT5 called HighLow Zones, which plots the high/low price levels of the previous day, previous week, and previous month. These are price zones where interesting price … Read more - Mean Reversion Indicator for MetaTrader 4
Below, we present a modified indicator for the well-known MetaTrader 4 platform, designed to detect when the price on various instruments and timeframes is overextended either upwards or downwards relative to the average, represented by … Read more - Stochastic RSI Screener For Metatrader 4
Modified indicator for Metatrader 4 that displays bullish and bearish signals from the Stochastic RSI oscillator, which, as its name suggests, is based on the well-known Relative Strength Index (RSI). This indicator, called RSIEst Screener, … Read more - RSI Screener Indicator for Metatrader 4
The RSI is one of the most popular oscillator-type indicators because it tends to generate fewer false signals than other similar indicators and provides more reliable overbought and oversold signals. Many trading systems, including countertrend … Read more - Stochastic RSI for Metatrader 4 – Free Indicator
In this article, we will introduce a version of the Stochastic RSI indicator for the Metatrader 4 trading platform. It is a simple indicator that displays the value of the Stochastic RSI below the price … Read more - Donchian Scanner Signals Indicator for Metatrader 4
In this article, we will showcase a modified indicator for Metatrader 4 called Donchian Scanner Signals, designed to display signals from this technical analysis tool on any timeframe and instrument provided by the broker. This … Read more - ADX Analyzer – ADX Signals Indicator for Multiple Timeframes for MT4
ADX Oscillator Signals Indicator for Multiple Instruments and Time Frames ADX-Analyzer, designed for the Metatrader 4 trading platform. This tool analyzes the general price trend in different markets using the ADX, an indicator that shows … Read more - ILRS (Integral of Linear Regression Slope) Indicator for Metatrader 4
In this article we are going to show a modified technical indicator for Metatrader 4 that plots an ILRS (Integral of Linear Regression Slope) moving average on any price chart of this trading platform. It … Read more