Breaking Down the Core FX Strategies

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Breaking Down the Core FX Strategies
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• Regal Core Markets recently reported on the
  significant impact COVID-19 has had on online
  trading and how trades take place. Due to
  multiple factors - from mass paranoia, to
  industrial shutdowns, and speculations - markets
  have also borne the brunt of the pandemic,
  leading to a newfound volatility among most
  currencies. Traders are now more inclined to hold
  on to their money and conduct low-risk
  investments, the report noted,  focusing more
  on the necessity of in-depth monitoring tools and
  analysis reports. The internet is brimming with
  increased online trading activity, and developers
  are pressured to provide more ways to ensure
  forex trade security.

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Trend Study

• In simple terms, a trend study refers to the
  analysis of the verification of trends that take
  place within a given market. Traders analyze
  these trends for one reason to understand a
  pattern, and act on them as soon as possible in
  order to make an optimal profit. There are two
  directions in which currency pairs can go - in a
  Bullish direction (upwards) or in a Bearish
  direction (downwards). It is important to have as
  clear an idea as possible of what direction a
  currency pair is trending towards, within a given
  period, so that the right decision can be made. 

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Range study

• During a range study, traders closely follow
  the Upper and Lower limits of the currency they
  want to make a call on. The reason why they do
  this is to gain a clearer and better
  understanding of the prices fluctuations so that
  they can capitalize on them when the time is
  right.  This works by purchasing the currency
  during its lower limit and selling it during its
  upper limit. But, whats important here is the
  fluctuations within the parameter of the price.
  According to Regal Core Markets, the timeframe
  of the low points (low price), as well as the
  high points (high cost) of a particular currency,
  are significant factors for effective trade. So
  essentially, with this core strategy, attention
  to detail is imperative.

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Breakout study

• This study pays attention to an assets
  breakout point - the point where the price goes
  past its upper or lower threshold for a certain
  range. When an asset performs like this, then it
  indicates that its price could start to trend in
  that direction. For example, if an assets price
  breaks its upper threshold, then this means that
  it will start trending higher. If these breakouts
  happen in high volumes, then the chances of the
  trend taking that new direction are much
  higher. Using the same buying-low and
  selling-high technique, Regal Core Markets
  notes.  traders can increase profits by
  utilizing a reliable and systematic approach in
  dealing with the price fluctuations.