Forex Wiki

Indirect Currency Pair

For indirect currency pair, the domestic currency is the quote currency and the foreign currency is the base currency. That means the quote indicates how many domestic currencies are needed to purchase one unit of foreign currency.

Head and Shoulders Pattern

Head and shoulders is a classical chart pattern. It is one of the popular and most reliable trend-reversal patterns, meaning that the price is likely to move against the previous trend. There are two types of head and shoulders pattern: ‘Head and shoulders top’ and ‘Head and shoulders bottom’, the first one occurs in an uptrend and later one in a down-trend.

Hedge

Hedging is a type of investment intended to nullify potential losses that may be incurred by another investment. In simple terms, when you hedge, you insure yourself in case of a negative event.  Hedging is widely used in Forex.

Harmonic Patterns

Using Harmonic patterns one can point to a specific area which can be the possible turning points on the price chart of any currency. It makes use of Fibonacci extensions and Fibonacci retracements. Harmonic patterns are effective because the guesswork is least and the pattern depends on the fixed Fibonacci numbers.

Hanging Man

The Hanging Man candlestick pattern is a bearish reversal pattern. Just like its name, the candlestick looks like a hanging man. It is characterized by a small real body near the high of the candle. The real body can be black or white, although a black candlestick is preferable. It has a long lower shadow that should be at least twice the length of the [...]

Hammer

Hammer is a candlestick chart pattern used in technical analysis. It is made up of only one candle. As the name suggests the candle looks like a hammer. It has a long lower shadow and a short body at the top of the candlestick with little or no upper shadow, the lower shadow must be at least two times longer than the length of the [...]

Fundamental Analysis

Fundamental analysis is a way of predicting future currency value by studying the economic, political and social factors that are relevant for the currency. fundamental analysts study the supply and demand for the country’s currency, products or services, quality management, government policies, past and forecast of performance, future plans and all the economic indicators like Gross Domestic Product (GDP), industrial production, interest rates, international trade, [...]

Forex Market

Forex stands for ‘Foreign Exchange’. Forex market is a global, worldwide financial market for trading currencies. Forex is a decentralized market meaning it does not have one physical location or exchange like in stock market where all the trading happens. It is the most liquid financial market in the world. It has the largest daily volume of around US$ 4 trillion dollars. Forex market contains [...]

FIFO (First in, First out)

FIFO rule is implemented by NFA (National Futures Association) on August 2, 2009 which states, “Forex Dealer Members (FDMs) may not carry offsetting positions in a customer account but must offset them on a first-in, first-out basis.”

Fibonacci Numbers

Fibonacci ratios we use in forex trading are derived from Fibonacci numbers. These numbers were discovered by the mathematician Leonard Fibonacci. The first two Fibonacci numbers are 0 and 1, and each subsequent number is the sum of the previous two.