Pattern recognition software is a broad name for programs that use mathematical algorithms and artificial intelligence to identify specific graphic patterns in price movement. This type of software is used by traders in tandem with charting software to inform their trading strategy, timing, and position. Using AI, pattern recognition software scans price action charts for specific breakout patterns that are commonly understood as indicators of market change, thereby alerting traders to possible profit opportunities and helping them manage risk.

Different analytical tools in your trading tool kit can help you locate buy and sell signals, identify and anticipate market trends, and help inform what position you should take. But to create a consistent and effective forex strategy, you need to understand how your chosen indicators can be used as checks and balances in a more comprehensive trading strategy.

The most successful traders are able to manage risks and rewards and see the bigger picture of their trading decisions by populating their tool kit with four types of tools: trend following, trend confirming, overbought and oversold, and profit taking. We’ve outlined why these four roles are essential and how they can complement one another to make you a savvier trader.

Stop-loss orders are the fail-safes of the trading world and the most common means by which traders balance risk and reward without staying glued to their computer screens 24/7. Like the name suggests, stop-loss orders are meant to limit potential losses by automatically exiting traders from their position in the event that price moves against them. If you were to buy a currency expecting an increase in price (called “taking a long position”), then you would place a stop-loss order to sell and exit your position directly below the current market value. This stop-loss order would only be triggered if the price drops below your stipulated threshold—in short, it will exit you from your position and limit your losses if the price decreases. If you entered into a short position expecting a decrease in price, you would place your stop in the opposite fashion, above the current market value.

This month we have seen global equities fall strongly, the US dollar continues its strong run on the back of the Federal Reserve's outlook for another rate hike in December, three more next year, and one increase in 2020. Trade talks took a back seat during October as central bank moves dominated the market commentary.

What is a grid trading strategy, how does it work, and when is it most effective? We’ve outlined everything you need to know to understand grid trading in forex.

Economic calendars lay out the dates and potential impact of scheduled national and international events that are likely to affect the price and popularity of given markets or assets. Because certain types of events have been known to impact trade in significant, predictable ways, the nature and date of each event on an economic calendar can be used as a trading indicator to maximize profit potential.

Technical analysis is the study of actual movements in the price of a financial product.  However in my opinion, technical analysis is less about trading and more about the study of mass psychology.  We study the way people react in certain situations in the market, which is quite prevalent when identifying and trading using chart patterns.

The Dow Jones Industrial Average moves to an all-time high, the Federal Reserve hikes rates again, and the US dollar finishes the month stronger on the back of the Federal Reserve's outlook for another rate hike in December, three more next year, and one increase in 2020.  Central banks and trade talk continued to dominate the markets and there remain many loose ends as United States and China continue their ‘tit for tat’ antics in trade talks, and more recently with Canada and the North American Free Trade Agreement (NAFTA). 

Margin and margin requirements are something that no forex trader can afford to ignore. Margin has often been labeled a “good faith deposit” to open a position.

Margin is usually presented as a percentage amount of the full position—0.25%, 0.5%, 1%, 2%, and so on. You can calculate the maximum leverage you can use with your trading account based on the margin required by your broker.