Forex FAQ Central:

A doji is a candlestick where the open price and close price are almost the same, so the candle has little or no body. It looks like a plus sign or a cross on the chart. A doji means buyers and sellers fought to a draw during that time period. Neither side won. This usually signals indecision in the market, and it often shows up right before a trend pauses, reverses, or conti...

MACD stands for Moving Average Convergence Divergence. It's a popular indicator that helps traders spot changes in momentum and trend direction. It's made up of two lines and a set of bars called a histogram. When the lines cross or the histogram flips from positive to negative, traders read that as a possible shift in the market. MACD doesn't predict the future, but it helps...

The Average True Range, or ATR, is an indicator that measures how much a currency pair typically moves in a given period. It doesn't tell you direction — it doesn't say whether price will go up or down. It only tells you how much movement to expect. If ATR is high, the pair is moving a lot. If ATR is low, the pair is quiet. Traders use this to set smarter stop-losses and to j...

Revenge trading is when you open a new trade right after a loss, not because the setup is good, but because you want to "win back" your money fast. It's driven by emotion, not strategy. You increase your position size, skip your checklist, and chase the market. It almost always leads to bigger losses. Stopping it means recognizing the emotional trigger and having a firm rule ...

ADX stands for Average Directional Index. It measures how strong a trend is, not which direction it's going. ADX gives you a number from 0 to 100. A low number means the market is flat or choppy. A high number means there's a strong trend happening, either up or down. Traders use ADX to decide whether trend-following strategies will work right now, or whether they should stay...