A trader needs to have an understanding of information that can’t be extracted from usual price charts. So, they use technical analysis tools to gain additional insight. Although the tools can give information and suggestions, they can sound almost like a foreign language. It’s so important for a trader to have a basic knowledge of these tools. And once explained, they truly help traders make better-informed trading decisions, giving them ammo to aim at the market.
Candlesticks are the most commonly used method for trading in the FOREX markets. They show the most vital four analytical points when trading. The only thing they are missing is the volume of trades being pushed through. Although, there are Volume Candlesticks that do present that information for you. However, with the FOREX market’s lack of centralization, an accurate measurement on volume is near impossible. So, with FOREX, candlesticks show the vitals: High, Low, Open, and Close.
Day trading often has a bad reputation due to the pattern day trading rule primarily seen in stocks. This rule makes it so that traders cannot open and close a trade more than four times in a five day period if the account is margined. This rule can be circumvented if you have an account size over 25K, or if you trade in a different market like FOREX. So, since most people reading this are trading FOREX or looking to get into the currency market, here, Apiary Fund will review a few day trading tips to get you along while trading in the currency markets.