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Bob The Builder
Hello guys, Am Patrick Bob.
Partick Bob
Today let's learn about Breakout Trading guys.
A breakout occurs when price moves beyond a defined level of support or resistance with increased momentum. Traders look to enter trades in the direction of the breakout, expecting price to continue moving strongly in that direction.
Example: Gold has been stuck between 2000 and 2050 for two weeks. When it breaks above 2050 with strong momentum and volume, a breakout trader would enter a buy trade expecting price to continue higher.
A breakout occurs when price moves beyond a defined level of support or resistance with increased momentum. Traders look to enter trades in the direction of the breakout, expecting price to continue moving strongly in that direction.
Example: Gold has been stuck between 2000 and 2050 for two weeks. When it breaks above 2050 with strong momentum and volume, a breakout trader would enter a buy trade expecting price to continue higher.
Partick Bob
Candlestick Chart
A candlestick chart is the most popular chart type among traders. Each candle shows the open, high, low, and close price for a given period. The body of the candle shows the range between open and close. Lines called wicks or shadows extend from the body to show the high and low. A green or white candle means price closed higher than it opened. A red or black candle means price closed lower than it opened.
Example: If EUR/USD opened at 1.1000 and closed at 1.1080, the body of the candle spans those 80 pips. If the price briefly went up to 1.1100 during the period, there will be a wick extending above the body to that level.
A candlestick chart is the most popular chart type among traders. Each candle shows the open, high, low, and close price for a given period. The body of the candle shows the range between open and close. Lines called wicks or shadows extend from the body to show the high and low. A green or white candle means price closed higher than it opened. A red or black candle means price closed lower than it opened.
Example: If EUR/USD opened at 1.1000 and closed at 1.1080, the body of the candle spans those 80 pips. If the price briefly went up to 1.1100 during the period, there will be a wick extending above the body to that level.
Partick Bob
Bar Chart
A bar chart shows four pieces of information for each period: the opening price, the closing price, the highest price, and the lowest price. A vertical line shows the high and low range. A small horizontal tick on the left shows the open and on the right shows the close.
Example: If GBP/USD opened at 1.2500, reached a high of 1.2550, dropped to a low of 1.2480, and closed at 1.2530, all of this is represented in a single bar.
A bar chart shows four pieces of information for each period: the opening price, the closing price, the highest price, and the lowest price. A vertical line shows the high and low range. A small horizontal tick on the left shows the open and on the right shows the close.
Example: If GBP/USD opened at 1.2500, reached a high of 1.2550, dropped to a low of 1.2480, and closed at 1.2530, all of this is represented in a single bar.
Partick Bob
Margin Call
A margin call happens when your account equity drops below the required margin level. The broker warns you that your account no longer has enough funds to support your open positions. If you do not add more money or close trades, the broker may start closing your positions automatically.
Example: You open a trade requiring 500 USD margin. The trade moves against you and your equity drops to 400 USD. The broker issues a margin call because you no longer have enough to cover the position.
A margin call happens when your account equity drops below the required margin level. The broker warns you that your account no longer has enough funds to support your open positions. If you do not add more money or close trades, the broker may start closing your positions automatically.
Example: You open a trade requiring 500 USD margin. The trade moves against you and your equity drops to 400 USD. The broker issues a margin call because you no longer have enough to cover the position.
Partick Bob
5. Pips and Points
A pip is the smallest standard price movement in a currency pair. For most pairs, one pip is the fourth decimal place. For pairs involving the Japanese Yen, one pip is the second decimal place. A point is one tenth of a pip, shown at the fifth decimal place.
Example: If EUR/USD moves from 1.10500 to 1.10600, it has moved 10 pips. If it moves from 1.10500 to 1.10510, that is 1 pip or 10 points.
A pip is the smallest standard price movement in a currency pair. For most pairs, one pip is the fourth decimal place. For pairs involving the Japanese Yen, one pip is the second decimal place. A point is one tenth of a pip, shown at the fifth decimal place.
Example: If EUR/USD moves from 1.10500 to 1.10600, it has moved 10 pips. If it moves from 1.10500 to 1.10510, that is 1 pip or 10 points.
· 2
Partick Bob
Spread
The spread is the difference between the bid price and the ask price. It is how most brokers make money. A tighter spread means lower trading costs. Spreads can be fixed or variable depending on the broker and market conditions.
Example: If EUR/USD bid is 1.0850 and ask is 1.0853, the spread is 3 pips. If you enter a trade, you are immediately starting at a small loss equal to the spread.
The spread is the difference between the bid price and the ask price. It is how most brokers make money. A tighter spread means lower trading costs. Spreads can be fixed or variable depending on the broker and market conditions.
Example: If EUR/USD bid is 1.0850 and ask is 1.0853, the spread is 3 pips. If you enter a trade, you are immediately starting at a small loss equal to the spread.
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Alexis Napoli
Воскресенье
The market is also crucial for the spread; whether it's the Asian market, London, or another market, the spreads will vary.