Investing + Trading

Traders need to be familiar with Forex Trading Psychology to thrive

Forexabodeman

Traders of Foreign Exchange (Forex) now get lots of chances to trade profitably. On the other hand, small unfavorable issues related to psychology have an effect on successful trading nowadays. Many people all through the globe decide on different trading platforms to succeed in Forex trades. They have to improve their trading skills in addition to decision making skills successfully. This is because of a trader with a plenty of options alike how a person can identifies his fortune without delay. It is time to throw out trading anxiety completely. Emotional issues during trading activities not at all lead to a profitable situation. That is why many traders with the best awareness about how negative emotions affect their trades now listen to ways that help them to improve their trading skills. They can succeed when they get a noticeable improvement of their ability to control emotions.

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Which is the best trading method for your business?

forex1

Today people are making money on the trading market by simply trading the foreign currency and use secret trading methods in order to gain more profit on their business. There are many trading methods and strategies are followed by traders in order to make their dream come true. Some of them only really work. Many of them lead us to loss. Before entering or trading in the Forex market must follow the advice from the experienced or expert people who are in this field for several decades. Many online tool and software is available for this purpose.

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The Forex Exchange Market for Beginners

forex

An easy way to take home money satisfies everyone in this unstable economic world. However, every system to earn money has both pros and cons.  Many individuals throughout the world now like to give attention to the forex market. The forex market is foreign exchange market in which different currencies are traded. As the largest successful trading market in the world, forex has users increasingly. People all around the world keep an eye on comings and goings in this market. It is time to give attention to this market in depth.   The forex market has traders not only from the large financial institutions, financial corporations, wealthy people but also every person with the best knowledge about buying and selling currencies profitably. Beginners to this trading world have to keep in mind several vital issues as follows.

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EURUSD Jumps Up

At the end of the past week EURUSD has made a break into 1.3 level before dropping back a little …

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Trading EURUSD, June 25th

So the last trade didn’t go exactly as I expected and the EURUSD didn’t reach my target before it bounced back down. I did, however, move the stop loss to break even when the price was up.

Following the same strategy I’ve now opened a position at 1.2499 with a T/P 1.2415 and a S/L 1.2580 as I expect the pair to continue to plummet at least until the upcoming European summit.

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Trading EURUSD, June 19th

I’ll try something new on this blog. I’ll trade live and post as I go. The purpose of this exercise is not to give out signals but it’s just for informational and entertainment purposes – just a regular guy trading. You should not attempt to repeat what I do here and should you choose to do so do it at your own peril.

I’m going to trade EURUSD using a very simple support/resistance based strategy coupled with some global economy insight (fundamental analysis).

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The Hammer and the Hangman Candlestick Patterns are Important Reversal Signals

Illustration: Currency

The hammer, the hangman and the doji are some of the few most important candlestick patterns that every trader should recognize. Both the hammer and the hangman have a small real body and a long lower shadow with almost no upper shadow. To be a hammer or a hangman, the shadow should be at least two times the body (the longer the shadow the more significant the pattern). However, it is very easy to confuse hammer with the hangman.

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Combining Doji Candlestick Patterns with Bollinger Bands and Stochastic

Illustration: Forex Chart

Doji is considered to be one of the most important candlestick patterns. Appearance of a Doji signals the beginning of a minor or an intermediate trend reversal. Failing to recognize the Doji pattern, means you run the risk of buying at the top or staying far too long in a trade. As a trader, you must be able to immediately recognize the four different type of Dojis. The four type of Dojis are:

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What You Should Be Doing When You Hit A Losing Streak Day Trading

Illustration: Money

If you have traded the markets for any length of time you know that markets can and will change every so often. The problem with most trading systems is that they are designed for one type of market condition and that is it. As soon as conditions change, you are left with a system that under-performs. The great part about the NetPicks systems is that they are very flexible and can be adjusted to fit different market conditions. The Seven Summits Trader indicators give us access to so many different inputs that we can fine-tune our system should markets change. This gives us an incredible amount of power with our trading.

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Three Reasons Why the Euro is Going Back to 1.45

Illustration: Euro

At the time of this writing — February 2012 — the Euro is trading at around 1.31. Though it may seem unlikely now, here are three reasons to believe EURUSD is headed back to 1.45 in the years to come.

Euro Bulls are Defending 1.28. As the monthly chart below illustrates, 1.28 has historically been a support/resistance zone — meaning a focal point where strong buyers/sellers capable of pushing the market step in. On top of that, technical analysts will observe that it is around the 38.2% retracement level of the big move up from the Euro’s inception in 2001 to its 2008 highs past 1.60 while also being around where the 200 month exponential moving average is. The fact that these technical indicators are all finding themselves in roughly the same price zone tells us that there is a “price wall” of sorts; it will be tough for sellers to push through this zone, as those who have been short sellers for a while will look to take profits, while speculative buyers will feel comfortable jumping in here.

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Vital Components of a Comprehensive Trading Plan

Illustration: Analyze

You must have heard several times that it is important to have a trading plan and stick to it. Not having a trading plan is like an invitation for failure as a trader. What is meant by building a trading plan? Here are some broad points to consider.

The Importance of a Trading Plan

Trading plan is nothing but a checklist. You refer to it before taking a trade. When in a trade you refer to it to make sure that you take a decision according to a plan. Checklist also helps you to stay away from trades which are low probability set ups. The whole idea behind the trading plan is to keep emotions away and take decisions logically.

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Dealing with Your Forex Losses

Illustration: Currency

There’s no denying that forex trading is an exciting way to make money. You can get a return on your investment in a matter of minutes if the market goes your way. It is inevitable however, that you will take some losses, but if managed correctly they can form part of a successful strategy. Here, we will look at different methods for dealing with losses.

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GBP/USD Forex Strategy That is Very Simple and Makes 20 Pips Daily Using Pending Orders

Illustration: USD

GBP/USD is one of the major pairs that gets heavily traded. GBP/USD pair is also known as the Cable. GBP/USD pair is affected by the interest rate differential between the Bank of England (BoE) and the Federal Reserve (FED). GBP/USD pair tends to have a positive correlation with EUR/USD and a negative correlation with USD/CHF. For example, a few days back this pair was trading in tandem with the EUR/USD pair.

Many traders trade GBP/USD and EUR/USD. They need to keep the positive correlation between the two currency pairs in view when trading both these pairs together. There are many strategies to trade the GBP/USD pair. Some are heavily based on the London Market Open as this pair normally starts trading in a range a few hours before the London Market open and tends to make a breakout after the London market open.

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EUR/USD Rises on Easing European Borrowing Costs

Illustration: Euro

EUR/USD climbed as solid eurozone sovereign debt sales and signs of Greece moving closer to a vital debt-swap deal eased concerns and renewed confidence over Europe’s refinancing capability. Spain and France sold bonds at lower yields yesterday and today Greece and its private bondholders will resume debt-swap talks to overcome differences on interest payments. Currency strategist at Bank of New Zealand, Mike Jones said “Given that the European debt markets are the focus at the moment, positive signs emerging there have helped sooth any investor nerves. The market really focused in on the negative headlines rather than the arguably slightly firmer details of that employment number”.

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How to Apply the Fibonacci Retracement Tool Correctly?

Illustration: Analyze

The Fibonacci retracement tool is one of those tools in forex that a forex trader simply cannot do without. This is because in the financial markets, prices do not move in a continuous straight line, but in a convoluted twist of pullbacks and advances. Whenever the price action of a currency has moved substantially in a particular direction due to a very strong trend, those traders who were able to get in early would at some point, decide to take some profits from their trades. This will place the gaining currency on offer and will lead to a supply excess over demand for that currency at that particular time, leading to price pullbacks.

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7 Mistakes That Forex Traders Make: How to Stop Losing Money

Illustration: Forex Chart

Forex trading is a great way to make good money by leveraging your capital against the small currency movements which happen every day. Unfortunately it can sometimes get a bad name due to all of the systems and courses online which promise to make you rich overnight.

The good news is that you can still make money from trading currencies, but there is a steep learning curve and plenty of mistakes that you will need to avoid. To get you started, here are the worst ones:

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Scaling In and Out of a Position Gives You the Needed Flexibility to Manage a Forex Trade

Illustration: Euro Currency

The ideal way to enter into a trade is to do it gradually. This is also known as Scaling In A Position. In the same manner, it is best to exit the trade in a gradual manner. This is also known as Scaling Out Of A Position. Trying to figure out the perfect entry and exit is only going to make you more confused and hinder you in making your trading decisions. There is no perfect entry or exit. You will never be able to catch the top or the bottom at the precise moment.

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Using Parabolic SAR Indicator for Entry and Exit

Illustration: Money

In this article, we will discuss how to use the Parabolic SAR indicator for entry and exit in actual trading. When the dots of the Parabolic SAR are located below the price, it means the trend is up and the price momentum is also in an upward direction and will stay like that till the price action hits Parabolic SAR. This is also a signal for a long trade.

When the price action is below the dots of the Parabolic SAR, it means that the trend is down and the price momentum is also in a downward direction and will stay like that till price action hits the Parabolic SAR. This is also a signal for a short trade. The dots will move down as a trailing stop.

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Understanding Parabolic SAR Indicator

Illustration: Analyze

Parabolic SAR is a trend following indicator that is often used as a trailing stop. Parabolic SAR indicator was introduced in 1978 by J. Welles Wilder, Jr. in his famous book, “New Concepts in Technical Trading Systems.”The term Parabolic is used because when this indicator is applied to the chart it forms strings of dots that look like a parabola, a shape you might remember from high school algebra.

The term SAR on the other hand simply means Stop and Reverse because when reached by price action, this indicator switches direction and reverses to the other direction. So a Parabolic SAR is used to identify entry and exit points based on a trailing stop that reverses when reached by the price action.

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The Simplified Currency Conquistador Strategy

Illustration: Money

The Currency Conquistador is a forex strategy that was originally conceived by Bruce Babcock in 1991. Bruce is considered to be a pioneer of futures trading. Bruce traded with this Currency Conquistador strategy for a few years then released the Currency Conquistador II Strategy.

Nelson Freeburg also published an enhancement of Currency Conquistador Strategy in 1994 that was more simplified than the original Babcock version and worked for many futures contract as well. Let’s discuss this simplified Currency Conquistador Strategy. First, you need to check these conditions everyday:

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ADX Trade Entry and Exit Filter That Will Improve The Performance Of Your Trend Trading System Drastically

Illustration: Analyze

Average Directional Index (ADX) was developed by J. Welles Wilder. ADX was constructed to measure the strength of the trend no matter if it was an uptrend or a downtrend. The idea behind the development of ADX indicator was not to identify a trend but to measure how strong a trend is when it is in place.

ADX is an oscillator that fluctuates between 0 and 100 values. However readings above 60 are rare. Readings below 20 indicate that the trend is weak and a reading above 40 indicates that the trend is strong. The trend can be up or down. ADX does not tell the direction of the trend. It only gives its strength. Direction of the trend can be easily found by just eyeballing the charts or drawing a simple trendline on the chart.

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What Makes a Successful Forex Trader?

Illustration: Currency

There are many components that make up a successful Forex trader. Though certain individuals may showcase a particular talent for currency trading, anybody can become a successful Forex trader if they work hard and let reason guide all their transactions. There is much to gain from the high liquidity of the Forex market, but traders who behave irresponsibly will almost certainly suffer losses.

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Trade Forex as a Business

Illustration: Forex Chart

So you want to earn lots of money and become amazingly wealthy. You have heard the rumours about Forex trading $3 trillion DAILY, and you figure you want a piece of that, just a little bit as you are not greedy…

So you now go out and buy the latest crazes of an EA, one copies the trades of a real life trader, and the other is the best EA on the market that shows that the creator (who used to work as a bin man, and now codes EA’s and buys the latest sports cars etc) turned a measly $100 to earning $56,637 per month stress free…

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Make Money by Following Experienced Forex Traders

Illustration: Money

The Forex Trading Market is a big one. Over 2,5 TRILLION dollars fluctuate this market every day. This is a nice way to get a small piece of a big pie and become very rich in an enormously fast way. That is why so many young traders decide to dive into this market and invest their life savings without digging a lot deeper into the success secrets. This can be very dangerous for any investor. So there are a couple of ways how to insure earnings when you are using Forex Trading system.

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Forex Trading During Interest Rate Changes

Illustration: Euro

Forex trading is more affected by interest rate changes made by any of the world’s eight central banks than any other influence. These banks include:

  1. The Fed (U.S. Federal Reserve System)
  2. ECB (European Central Bank)
  3. BoE (Bank of England)
  4. BoJ (Bank of Japan)
  5. SNB (Swiss National Bank)
  6. BoC (Bank of Canada)
  7. RBA (Reserve Bank of Australia)
  8. RBNZ (Reserve Bank of New Zealand)

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Why PIPS are Almost Irrelevant for Measuring Forex Trading Performance?

Illustration: Analyze

When forex traders or companies want to tell other traders or people who might be interested in their trading about their performance they will often show them the number of pips made in a trade or in a given amount of time. Which is not bad at all but not enough information to say if a trader is consistently profitable. A pip in the forex world is commonly known as a point a currency pair moves either up or down. For example if the EURUSD jumps from 1.3800 to 1.3801 it has moved exactly up by one pip. What most traders or signal services do not publish is how much money value each pip has so there can never be made a real conclusion about how much money a trader has won or lost in a trade or during a time period with pips as the only performance information.

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Top 4 Issues Facing the Currency Trader

Illustration: Euro

From my experience, the key to longevity as a Forex trader is to understandthe challenges that abound in the unpredictable world of currency trading.

By knowing your market and having a deep appreciation of the main variables at play, an experienced trader can equip him or herself with the necessary arsenal of tools to ensure consistent results over a profitable trading career.

In my mind, there are 4 key aspects to this:

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Cross Currency Forex Technical Analysis

Trading Strategy

The major Forex pairs often move in harmony with each other as we all know. GBP/USD may be moving higher while USD/CHF moves lower. This is obviously related to the dollar as the common denominator in this particular scenario. Currency correlations can be very useful when conducting our analysis.

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A Brief Guide to Avoid Common Forex Mistakes

Trading Strategy

When getting involved in foreign exchange (forex) trading, it is important to watch out for common mistakes that even experienced investors find themselves making. Given that forex trading is one of the most unpredictable, volatile activities currently out there for investors, it can be troublesome finding a sure-fire strategy without incurring painful losses. In order to minimize your losses while still maintaining an acceptable level of earnings, consider the following guide to help you achieve success in forex trading.

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Forex Signals Trading – Turn $250 into $1 Million in 12-24 Months (Part I)

Trading Strategy

Many new traders waste their money on buying expensive forex software while searching for a Holy Grail that can make them rich. But most get disappointed when the forex software does not work. In this article we will discuss a simple strategy that if properly implemented can turn $250 into $1M in 12-24 months. This strategy does not involve becoming a master of forex trading. But you need to have a some manual forex trading experience plus understand how the forex market works.

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Binary Options Signals – Turn $300 into $50K in 5 Months Trading Not More Than 10 Minutes Daily

Illustration: Currency

Binary options are a new way to trade the market volatility. You simply have to bet whether the market price will be above or below a certain strike rate in order to make returns like 181% per hour. Once you enter the trade, you don’t need to monitor it. It is set and forget. Either it will end up in the money or it will end up out of money. No need to worry about the stop loss or the take profit like in forex trading. Your risk is already calculated once you enter the trade and is equal to your investment.

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Forex Currency Pairs for the Novice Trader

Illustration: Currency

When looking to get involved in forex trading, there are several basic concepts that you must first understand. The most fundamental aspect of forex trading is that of currency pairs. Every trade involves an exchange between two currencies, with the most popular ones in the forex trading markets currently being: the Euro (EUR), the US dollar (USD), the Australian dollar (AUD), the Japanese yen (JPY), the Swiss franc (CHF), the Canadian dollar (CAD), and the British pound (GBP).

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Traders Really Do Need to Let the Winners Run

Trading Strategy

Foreign exchange currencies often present big trend opportunities when the fundamentals line up.  Many of those trends may last for years, however, many inexperienced traders come up with a fundamental oversight when attempting to transform those trends into a financial gain.

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How to Choose a Reliable and Profitable Forex Signal Provider

If you are new to the forex world, are not profitable yet or don’t have the time to trade full time a forex signal provider can be a stress free way to generate profits from the forex market. Most people interested in Forex do not like the idea sitting 24/5 in front of their computer glued on the charts and analyzing data. Handling this kind of work to someone else and just check the account for profit and losses from time to time is possible by using a forex signal provider. Choosing a reliable and profitable provider can be quite tough and a lot of things have to be taken into account when searching for a trustable partner helping you with your financial gains.

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5 Trading Myths Busted

Illustration: Currency

In recent years, as Forex has become more popular, a mythology has sprung up around the foreign exchange markets, mostly propagated by people who don’t really understand what they’re talking about ­ or worse, do understand what they’re talking about and deliberately mislead people. Here are a few of the popular myths busted.

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The Top 5 Forex Trading Web Communities

Illustration: Currency

Traders speculate on international currency values before exchanging currencies on the Forex market – the world’s foreign currency exchange.

Traders use Forex web communities to share useful tools and insights before trading.

Read on for more on currency trading and the top 5 Forex web communities.

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Do You Have a Day-Job and Don’t Have Time to Trade?

Trading Strategy

There is a good chance that YOU currently have a job, right? Let me ask you a question: “Why are you not making money in trading yet?” I mean, before you’re reading this then – you can’t be where you want to be in your trading.

Most traders stick to intraday trading for two reasons:

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The Simple 20/20 Channel Breakout System That Made Many Millionaires

Trading Strategy

20/20 Channel Breakout Trading System is a simple system that was first suggested by Richard Donchian. Richard Donchian is considered to be a pioneer of technical analysis. He was the first person to talk about channel breakouts. He suggested a 4 week rule for trading channel breakouts. It was Richard Dennis who used this channel breakout trading system extensively and made a fortune in the commodities market.

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US Butterfly Effect and Greek Default

News

Some may consider Greece to be both literally and economically distanced from the United States. Ironically, comparisons between the US ‘Lehman brothers’ and the Greek default are being uttered across the European financial landscape and media network. This cross country comparison serves as a powerful and equally haunting reminder of the connectivity between global markets and individual economies. The global financial beast is one and the same. Greek wings are flapping within the European ecosystem pushing Europe to the verge of a financial epidemic. An epidemic Jeremy Cook, Chief Economist at World First believes could make “the (financial) falls of three years ago look like a picnic.”

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Things You Never Knew About Forex Success

Illustration: Currency

It’s funny how, in this crazy world of Forex; success seems so close… yet so far away. Do you get frustrated why you buy a Forex system – and it seems like a “re-hash” of something you’ve seen before?

Well, if I may ask you a question… What are you expecting in a “new” Forex system?

Are you expecting some revolutionary, latest-technology, never-before-seen system like you’ve never seen before?

If so, then you may have a long time to wait before you finally start getting success in Forex.

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Who Wants a Simple Forex Strategy?

So you just want a simple Forex strategy to trade? Okay, let’s see what we can do…

Firstly, you want to get the probabilities in your favour; this means making sure you’re trading WITH the trend. Yes, I know, you’ve heard it before – but it’s true; trading with the trend will increase the probabilities for you.

The first thing we do is place two moving averages on the chart. The first moving average is a 50 Period Exponential Moving Average of the Highs; and the second is the same, a 50 EMA, but this time of the Lows.

You should have something that looks like this:

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The Ultimate Low-Risk Entry in 3 Simple Steps (FREE Download)

Trading Strategy

I’m going to show you the lowest-risk, most reliable trading entry signal there is. It requires no fancy software or cutting-edge, “latest and greatest” system. In fact, it’s something you may have even heard of before, but ignored it as you were perhaps persuaded by some “fancy” new system.

Anyway, let’s get to it…

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How the Dollar Index Works

Trading Strategy

When trading in the foreign exchange market, the value of the dollar has an impact on much of what goes on. The value of the dollar is influenced by many factors such as the gross domestic product, interest rates and other economic data. To determine the value of the dollar in relation to the other major currencies of the world, analysts and investors use a tool known as the U.S. Dollar Index. The dollar index is a numerical comparison to a basket of six of the major currencies that are represented in the world markets.

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How to Use Carry Trade in Forex

Trading Strategy

The carry trade is a special kind of position (long term) trade in Forex. The idea is to locate a currency pair with a high differential in interest rate which preferably is trending in the appropriate direction, and purchase the currency with the high interest rate and sell the currency with the low interest rate. You want the currency you’re purchasing to be trending bullish. Then you wait, and accumulate profits, and eventually, you get out. And that’s about it.

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A Very Simple Breakout Strategy for Beginners

Trading Strategy

This is a very simple breakout strategy. This simple breakout strategy uses only a line chart and RSI indicator. Line charts are the most simplest of charts. So, when you trade using this simple breakout strategy, you don’t need to get confused with candlestick patterns.

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