On this page you can find educational Forex and trading information. The articles below offer you trading tips, strategies and other information every trader must know, all written by the FX Empire expert analysts.

Here you can find Forex & Binary Options educational articles for the novice & experienced traders alike with much needed information, explanations and trading strategies.

September 19, 2012| Mustapha Azeez

What I’ve Decided to Do in the Markets

TREND FOLLOWING IT IS! “The trending market is an ideal market to trade and make money. What trend following is not is prediction or forecasting about how the markets will go. Trend following is based on reacting to price, price and again, price. It is not based on trying to predict price directions.” – Michael Covel Hello: Perhaps the most crucial aspect of the dynamics of the market is their current bias whose relevance is due to the reality that...
August 28, 2012| FX Empire Analyst - Irit R

How to Choose a Forex Trading Spread

Sometimes it becomes necessary to help traders learn all there is to know about a Forex trading spread. However, in order to do so, there are some basics that will need to be understood. First of all, the primary goal of the trader will be to learn how to make money placing trades whether the market rises or falls. In order to do this, they will need to learn more about Spread betting cash-back. This form of trading is not...
August 08, 2012| FX Empire Analyst - Barry Norman

A Breakeven Calculator for Binary Option ?

A reader recent asked if we could write an article or develop a "Breakeven" Calculator for Binary Options. I decided to do some research to see if I could answer this question properly and accurately. I first looked up the definition of a breakeven calculator; the best basic definition I found was "a breakeven analysis calculator is designed to demonstrate how many units of your product must be sold to make a profit." Ok, I said to myself, this doesn’t...
August 05, 2012| Martin Kay

Is Binary Option Legal?

An Introduction to Binary Options In the modern age, new businessmen & experienced traders are being appealed by a relatively new trend in online trading; called binary options. Let us first look into some detail about this term. The word binary means ‘of two’, hence as the name suggests, binary options is a trade setting offering only two ways to place a trade deal, followed by two outcomes. The outcome can either be in the money, or out of the...
July 29, 2012| Jay Hawk - BinaryOptionsNow.com

MACD Binary Option Trading Strategies

The Moving Average Convergence Divergence or MACD histogram is one of the most popular technical indicators used by traders. The MACD was created by Gerald Appel in the latter part of the 1970s to signal changes in the direction, strength and momentum of a stock price trend. The MACD basically plots the difference between two different Exponential Moving Averages or EMAs. An EMA consists of a moving average which is weighted with each older data point decreasing in importance without...
July 19, 2012| Vladimir Ribakov

Nostalgia – How Forex used to be  

Hi friends, A friend from my Forex club share a wonderful video about how Forex market used to be in 1985. That’s a wonderful video which shows us that the current period we live in and trade in is not so bad I hope you will enjoy it: Have a wonderful day Vladimir Ribakov.
July 17, 2012| Martin Kay

Binary Options Trading – Legitimate Earning Opportunity, or Gimmick?

You may have heard of binary options trading before and thought it sounded good, but wrote it off as a scam.  After all, as with casinos and most work-at-home programs everyone is just looking to make a dollar at your expense. While this may be true, with binary options trading, you have an advantage. By developing skills and simple strategies you can shift the odds to your favor. How do Binary Option Trading Platforms Make Their Money? It is true...
June 29, 2012| Gareth Tade Mansfield

EURUSD – The 1.2436 level: Lessons You Can Apply to Your Trading

This is a typical case when people simply hear the bad fundamentals about Euro zone and immediately wanting to short the EUR and Long the USD. Even if you are right 5 months down the road, it is still not a prudent move. As mentioned in the article, EURUSD has met its support at 1.2436 areas, and it is not expected of the trader to long it or short it. Ignoring it is like ignoring the tactical advantage that is...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 1 (of 7)

One of the earliest technical indicator is the moving average. By definition it is a very simple calculation of a price over a certain period of time, but its applications are numerous and can get pretty sophisticated. Here we will explore the different ways the moving average are used in analyzing the charts of a financial market. This article is meant to highlight how a simple indicator can be used, from providing trading signals, filtering out trades, and even creating other technical indicators. Example of EUR/AUD...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 2 (of 7)

As an indicator of general trend based on the 2 different moving averages: - Moving averages of different lengths represent a general price of different degree. For example, the 21-SMA represents short-term mean price action versus the 200-SMA, which represents a long-term mean price action. - A crossover between a shorter to a longer term moving average (ie. 55 SMA crossing 100 SMA) reflects a change in trend. Meanwhile,  if the distance between the 2 moving averages are spreading, we...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 3 (of 7)

3) Other multiple moving average systems: Analytical and trading signals can be created with more moving averages as well. - 3 moving average system: With an additional MA we can generate entry signals different from exit signals. This attempts to deal with the usual lag that 2 MA crossover systems have. The idea is to enter when medium length MA crosses longer term MA. Exit is provided when short-term MA crosses the medium one. Entry and Re-entry Into a Trend:...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 4 (of 7)

4) MACD: Short for Moving Average Convergence/Divergence. Traditionally, this indicator is constructed by using a 12 and 26 exponential moving average and calculating the difference. The difference is plotted and called the MACD line. A 9 period simple moving average of this MACD line is plotted and called the signal line. The difference between the MACD and the signal line is plotted as a histogram. This creates a centered oscillator. There are 3 basic signals generated by the MACD oscillator:...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 5 (of 7)

5) MA envelop – Bollinger Band: If you consider the moving average as the mean price action of a certain period, then that means a range-bound market should revert back toward it. Thus the farther price is away from the MA, the more more likely it wants to “regress to the mean”. The bollinger band is designed to measure where the market might be too far from the moving average. Traditionally the bollinger band plots the 20-day moving average and...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 6 (of 7)

6) Horizontal shift; in Ichimoku Charts: Moving the MA forward is an attempt to use it as a guide for future support or resistance. The Ichimoku Kinko Hyo – hereon called simply Ichimoku – indicator/system manipulates moving average to give us visual cues of support and resistance as well as generate trading signals. However, instead of using the moving average of the closing price, it uses the MA of something different. Refer to the calculation below copied over from the...
June 27, 2012| Fan Yang - FXTimes

The Many Applications of the Moving Average – Part 7 (of 7)

7) “Smoothing Out” other Indicators ie. Stochastic Oscillator: The construction of the Ichimoku shows that we don’t have to use the MA of the close price. In fact if you think about what the moving average really is, it is simply a look at a series of data and smooths them out. Therefore, another use of the MA is to smooth out not only price data, but indicator data. For example, the stochastic oscillator uses a smoothing out process in...
June 14, 2012| Gareth Tade Mansfield

The Frequent Misconception of Price That Disillusioned Investors

What is the big deal about price? Prices tend to fluctuate over time, and occasionally have a sudden rise and drop that results some people to conclude that prices are deviating from their “Real Value”. But the price under normal condition is no more real or valid than their higher or lower levels under extreme conditions. The new and higher/lower price reflects the new reality just as well as the previous price reflected the previous reality. Often you may hear...
June 14, 2012| Martin Kay

Keys to Binary Options Trading

Binary options have become the latest trend in recent times. Most people are using the opportunity and starting to make investments that are high and make fast income. This is mainly because you could generate profits as high as 75 to 80 percent of your initial investment in less than one hour. However, just like every other investment, the binary options have its fundamentals which aid in ensuring trade runs smoothly. Working on your knowledge of trade and skills If...
June 12, 2012| Gareth Tade Mansfield

The $100K Challenge is not a Good Idea Until You Understand

Here’s the challenge, blindfold yourself and walk across a busy highway, if you made it across safely you earn yourself $100k. At this moment, you may be thinking it will take you 2-3 years of hard work to earn this amount. Before you take up this challenge, think about the risks. In most Forex Trading account, brokers may offer you leverage of 1:100 or even 1:1000. The plus side, you can start your investment dream with  just $50USD. Immediately, the...
June 12, 2012| FX Empire Analyst - Irit R | Comments (2)

How to use Bollinger Bands® in your Forex Trading Strategy

There are many different ways to trade forex, but the one thing that all traders have in common is their reliance on data and charting. While new techniques are constantly being developed, some methods that have been around for many years remain as popular as ever. Bollinger Bands® have been around for more than 20 years but remain one of the best ways to track volatility in the market. Understanding the degree of volatility is essential as it can often be...
June 12, 2012| Gareth Tade Mansfield

The 2 Formulas You Need Before You Start Trading Forex with Your Money

Why would anyone give you any tips anyway? To help you trade better? Maybe. To help you become the next millionaire in town? Definitely not! I am sharing these true winning tips with you to help you reduce your emotions during live trading. Imagine stepping the acceleration pedal and brake at the same time, you will not be able to accelerate fast enough. Emotions in your trading are just like the brake that slows you down (in a game of...
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