Forex and Stocks Trading: Baby Bird Capital

 Accumulation occurs after a prolonged downtrend, which is also known as the Mark down phase. The accumulation and the distribution phases are range bound trading periods where there is no clear direction of price movement. The distribution phase occurs after an uptrend which is also known as the Mark up phase. You may find this article helpful:  Price action analysis using the Wyckoff method Accumulation Schematic There are five phases to the Wyckoff accumulation schematic. Phase A  Phase A starts with price moving in a downtrend and volume steadily increasing. Buyers begin to enter the market  and are trying to change the direction of the market resulting in preliminary support. However, the buying power is not enough to stop the downward movement of price till it reaches a selling climax. A selling climax is a sharp decrease in the prices of stocks or derivatives for a very short period of time alongside increased volume. At this stage, price has been oversold and...

 You have decided that you want to start your trading journey and you want to deposit your money to a forex broker, or perhaps you are exploring your options on how you can deposit and withdraw money from your account instantly. If you using Deriv as your forex broker, you probably have heard about the Deriv peer to peer service, or you have heard people talking about it but you are still not sure how it works.  The Deriv peer to peer service allows you to easily deposit or withdraw money from your account by buying or selling Deriv credits in exchange for your local currency. We will explore the two methods that you can use this service and these methods are: Using the Website Using the Application  Using the website to do a Deriv peer to peer transaction To access the website, click here .   Then follow the steps as shown below. If you are new to Deriv please start by creating your account by signing up here . This artice on  Getting started with trading ...

 The Dow theory was developed in the late 19th century by Charles H. Dow. The theory expresses his ideas on price action in the stock market. Charles also invented the famous stock market index known as the Dow Jones Industrial Average (also known as the Dow). The Dow is price weighted and its value is affected by the performance of the most prominent companies listed in the stock exchanges in the United States as well as macroeconomic factors. Most methods and indicators used in technical analysis are based on the Dow Theory.  The Dow theory is made up of six principles: The averages discount everything  This principle states that all the fundamental factors, economic, political, technological factors, future events and other important factors affecting price have already been factored in and priced into the market except for natural calamities such as earthquakes. The only remaining influence on the stock price is human emotion.  The market has three major trends A...

Introduction Richard D. Wyckoff was a very famous stock market trader. He is considered one of the five titans of technical analysis along with Dow, Gann, Elliott and Merrill. Wyckoff proposed a method to help traders understand price movements in markets. This method is called the Wyckoff method. Wycoff advised traders to try to understand the market and play the market game as the Composite man. The fluctuations in the market in all the various stocks should be studied as if they were the result of one man`s operations. Let us call him the composite man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it    ~R.D Wyckoff   A composite man is a highly skilled and better informed investor who has the ability to shape the market and control the price. He carefully plans, executes and concludes his campaigns. His aim is to gather as...

What is a trend? It is the general direction which a financial market develops. There are three types of trend within the market: primary, secondary and minor. The primary trend is the major trend lasting at least six months. The Dow Theory describes the secondary trend as a market movement lasting from three weeks to three months. Minor trends have a short life span stretching from minutes to several hours. In financial markets, price tends to move in a series of zigzags forming waves. These waves constitute a market trend. Trending markets are easy to identify, do not try to complicate things. You do not need indicators to determine if the market is bullish or bearish in nature.  Remember to always trade with the trend.  If the market is bullish, then look for buying opportunities and if the market is bearish then look for selling opportunities. " Buy things that are going up. Sell things that are going down. And when they stop, get out! "  – Rob Smith The ...

In order for a person to reach their goals there are certain steps that they need to take. To reach the top of the mountain, you need to climb the mountain one step at a time. Similarly, to become a good forex trader you need to focus on making a dollar first, then focus on making ten dollars, then a hundred dollars and so on. A trading journal has proven to be an effective performance and confidence booster when executing trades. Trading without a diary is like shaving without a mirror.   ~Dr. Alexander Elder, Author of Trading for a Living. What is a trading journal? A trading journal is a record of observations, experiences, ideas, or reflections kept regularly for tracking progress and for future reference. Why do you need a trading journal? Tracking progress When you keep detailed records on your profits and losses it becomes easier to study mistakes made when entering or exiting trades Enhances performance Psychology and mental state plays a big ro...

A candlestick is a Japanese price chart that is formed by the following elements: Open: refers to the open price Real body: refers to the filled part of the candlestick  Upper and lower shadows: the lines above and below the real body. High: refers to the top of the upper shadow Low: refers to the bottom of the lower shadow. Close: refers to the close price. There are two types of Candlesticks: Bullish candlesticks and Bearish candlesticks. If the close price is above the open price this means that the candlestick is bullish. However, if the close is below the open, it means that the candlestick is bearish. Advantages of Japanese Candlestick Charts They provide a visual representation of what is going on in the market They accurately indicate a market trend, i.e. whether the market is going up or down. They can be used alone or with other technical analysis tools such as trend lines, moving averages or the elliott wave theory Types of candlestick chart patterns Hammer A hammer i...

The Elliott wave theory was discovered by Ralph Nelson Elliott.  According to the Elliott wave principle, market prices follow some recurrent cycles called waves.  Waves are patterns of directional movement. Prices change their dynamics based on crowd behaviour. The Elliott wave principle is predictive in nature. It gives some insight about the probable future direction of the market.  Elliott suggests that there is a five wave pattern. This five wave pattern consists of impulse waves and corrective waves.  There are three impulse waves going alongside the major trend and two corrective waves going against the major trend. Elliott wave guidelines • Wave 1, wave 3 and wave 5 determine the direction of the market • Wave 2 and wave 4 are counter waves to wave 1, wave 3 and wave 5 • Wave two never retraces more than 100% of wave one. • Wave 3 is usually the largest and most powerful • Wave four does not overlap with the price territory of wave one.  Elli...