Forex encyclopedia

Every day, many people around the world try their hand in forex trading. Many of them failed and never look back, some persist for years but never achieve anything, a few soar in almost no time at all. With all those information, including entry-exit strategy, money management, and psychological control available freely in the Internet, supposedly everything is not as different. So how a newbie can advanced to a higher level as a trader? Many mistakenly think that the difference between a successful trader and a struggling one is the entry-exit strategy, personality or even experience. But all those things are simply skin-deep. They don't explain why some traders work for years without achieving significant results except maybe the amount of their losses. True, to succeed, a trader needs to have the right entry-exit strategy, apply money management and some experience. But, if there is something which makes a difference between years of struggling or a relatively short time to achieve, it is this.... Well, actually there are three:
A number of reversal patterns is indicated in Forex: Head and Shoulders, Double top, Double bottom, Triple top, Triple bottom, Diamond. Head and Shoulders Top – is a classical reversal pattern of technical analysis, which is formed following to a long upward trend. The model is considered to be fair reliable and is often formed. But despite above-mentioned, many beginning traders do not manage to take profit using this graphic pattern. The reason is that positions are opened prior to forming this model. Let's figure out the structure of the figure and its formation on the chart of trading terminal. The model consists from three subsequent price extreme points, the middle one is higher than others (head), and the rest two are below the middle one and are roughly equal (shoulders). All three uphills are supported by the neck line.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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