Trading has been going on for centuries. One country has something the other company either need for desires so daytrade something that country wants an exchange. One country was a lot of minerals might trade with another country whereas the food they need. For hundreds of years, this was the method of trading. When nations started using currency, it became the mode of exchange. The value of this currency fluctuates, depending on the condition of their economy. Some countries currency have a higher value than another’s. When the world advanced to the point of becoming global, economically, there was a need to understand the value of one currency against another. They had to know how much the goods of one country would cost, and how their currency compared to the other.
Now, all the foreign exchange markets help international trading, by enabling currency conversion. This facilitates trade and investment. It helps one country to buy goods with another person’s currency.
Eventually, individuals began to discover that they could simply trade currencies. They could speculate on the difference between one currency to the other. Depending on how well they could do this, they could make a profit. This foreign exchange, or Forex for short, goes on 24 hours a day, unlike the stock market, which opens and closes each day.
Although the major traders have been a large commercial banks and security dealers, in recent years individual traders has become an important part of this market. Most of these traders rely on brokers to make the trades.
Much of the trading that goes on is speculation, and the trader has no intention of actually taking delivery of the currency.
In the days of computers and other technical advances, is possible to write an algorithm that can predict prices in a two day. These programs expressed are predictions in the forms of graphs. These graphs show the candlestick charts. Candlestick charts show the price action over a specific period. Each daily chart candle is a 24 hour period that has information on that day’s opening and closing price. In the hourly chart, the candle represents an hour. The body part of the candlestick never sends to open and close price. Lines coming out of the top and bottom reverse of the highs and lows of the price.
The Heiken Ashi indicator was developed to smooth out your erratic portions of the chart so that it easier for trader to make an informed decision. This indicator is often placed right next to the candlestick chart to show the complete picture so that the trader it’s a better idea of what is going on. This way the trader has a more complete picture of what is actually happening. The function of the Heiken Ashi indicator is to average out the open close high lows to get more appealing display.
Since Forex trading is about rapid and continuous fluctuations in the prices of currencies, it’s important for the trader to be able to see what’s going on. The Heiken Ashi indicator fulfills his purpose.