Quantitative Easing
Technique used by central banks in times of crisis to create money by increasing the supply of a currency. To do this, the central bank lends money to the state by buying treasury bills and other financial products. The long term goal is to lower interest rates in order to help businesses, government and households […]
Quote (Counter) Currency
The quote currency is the second currency in any currency pair. This is frequently called the pip currency and any unrealised profit or loss is expressed in this currency.
Rally
A price recovery which follows after a period of declines.
Ranging (Flat) Trend
A sideways trend which represents uncertain market conditions. Neither of the market forces (sellers or buyers) is dominant.
Rejection Candle
In candlestick trading strategies, the rejection candle refers to a pinbar, hammer, inverted hammer, shooting star or a hanging man candlestick pattern that signifies a potential reversal in a trend. The rejection candle has the potential to divert a bullish trend into a bearish trend and a bearish trend into a bullish.
Requote
Sometimes, in highly volatile market conditions, your broker cannot execute an order at the asking price, because by the time he receives your order the price has already quickly moved up or down. In this case, the broker sends a re-quote (requote) on the platform to inform you and allow you to accept or reject […]
Reserve Rates
The tool of monetary policy, according to which every commercial bank is required to keep the certain portion of its deposits with the central bank to avoid liquidity risk. The higher reserve rates, the more decreases in the money supply in the economy and vice versa.
Resistance Level
The upper barrier of a trend (Buyers’ ceiling). The level at which a current uptrend is expected to stop as the price rise encounters “resistance”.
Reversal Patterns
In the forex market, a reversal refers to a change in the direction of a price trend, whereas the reversal pattern is a formation of the support and resistance, reversal candlesticks and various chart patterns that have or can cause a reversal in the price trend of a currency pair. For instance, in the candlestick analysis, […]
Risk Management
Foreign exchange risk management allows the trader to define himself as a trader in terms of risk vs. odds. Smart risk management puts under control the levels of risks that the trader wishes to take throughout his trading. Risk management should determine your Forex trading strategies. It is designed to preserve the value of your currency […]