Archives

What is The directional movement index in Forex Trading?

The directional movement index (or DMI) was created by J. Welles Wilder for determining the overall direction of a asset’s given prices. DMI consists of two lines. One line represents positive direction (+DI) and other line represents a negative direction (-DI). Investor has to measure the difference among the present high and the past high […]

What is discretionary account in Forex Trading?

The account holder of the discretionary account gives powers to another person to handle and manage trading of his/her investments. In addition, account manager has extra powers of even  currency pairs to trade. This account is also referred as managed or controlled Forex trading account.

What is Discretionary trading in Forex Trading?

Discretionary trading is a kind of trading technique which uses all kinds of trading strategies to make a buying and selling decision. The list of trading techniques used by discretionary trading includes mathematical formulas, fundamental analysis, price action patterns, and technical analysis. This kind of trading relies on  well developed trading processes and framework of […]

What is disparity index in Forex Trading?

The disparity index is a % measurement for the position of the present  closing price of an asset as compared to moving averages of other assets.  Disparity index was introduced by world renowned author named Steve Nison in his book  ”Beyond Candlesticks”.The disparity index has both negative and positive values as  price of items included […]

What is Detrended Price Oscillator (DPO) in Forex Trading?

The Detrended Price Oscillator (DPO) is a very effective technical analysis tool which is used to provide information about the price of any asset without considering current pricing trends.  The main  logic behind using this tool is to help investors use detrended prices  to understand the selling and buying  pressure in a Forex market on […]