Forex How To Define The Flat
Definition: For convertibles, trade without accrued interest. Preferred stock always 'trades flat,' as do bonds on which interest is in default or is in doubt. Trade flat: read the definition of Trade flat and 8,000+ other financial and investing terms in the NASDAQ.com Financial Glossary. Binary options brokers. The name of these patterns, double and triple running flats, tells us that the x-wave is a large one, as only large x-waves can possibly form in running corrections. In other words, by the time the first running flat is completed (which is already a powerful statement about the move to come!), a large x-wave should form. A price consolidation is when after a trendy move by market, prices come to a flat period where prices don’t move much at all on either side. You can say that the forex market is taking a rest before it continues trending.
now the dollar forex The flat top breakout is very similar to the bull and bear flag pattern you can find here. You have the same trend, followed by consolidation period and then a continuation of the trend. The main difference will be during the consolidation period. In the flat top breakout instead of the consolidation having a gentle slope in the opposite direction as the pole, there is no pull back and the consolidation takes place within a few pips of the new high. To go along with this time of consolidation you will see very low volume compared to the initial trend.
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These patterns have some of the most powerful breakouts and should be immediately entered when you first find them as the price is not likely to retrace back to the breakout price.
In all financial markets, including the (short for Foreign Exchange), you 'go short' by shorting an equity or a currency when you believe it will fall in value. With a stock, what you're doing is borrowing shares you don't actually own and agreeing to pay for those shares at some time in the future. If the shares fall in value from the time you execute the short sale until you close it out (by buying the shares at the later and lower price), you'll make a profit equal to the difference in the two values. When you “go short' on the Forex, you are simply placing a sell order on a currency pair. In Forex trading, all currency pairs have a base currency and a quote currency. The will usually look something like this: USD/JPY = 100.00. Dollar (USD) is the base currency and the Japanese Yen (JPY) is the quote currency.
This quote shows that one U.S. Dollar equals 100 Japanese Yen. When you place a short trade on this currency pair, you are going short on the USD Dollar and, as a result, simultaneously on the Japanese Yen.