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Range-Bound Trading vs. Trend Trading in Forex – What’s the Difference?

However, the Forex market is well-suited to both approaches, giving profitable chances for both trend and range traders.

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7 Effective Tips For Trading The Forex Market

Forex trading may be a highly profitable activity if you understand what you’re dealing with and are aware of the potential risks that come with it. As a forex trader, you must first understand how the market is currently acting, whether you are a manual trader or relying on the best forex trading robots, and what is expected to occur in the future given present conditions.

Trend and range are two unique price qualities that necessitate entirely opposite mindsets and financial management strategies. However, the Forex market is well-suited to both approaches, giving profitable chances for both trend and range traders.

1. What is trend trading?

Trend trading is a trading strategy that involves analyzing an asset’s momentum in a certain direction in order to reap profits. A trend is defined as a pattern of price movement in one direction, including upwards or downwards. Higher lows in an upsurge and lower highs in a downturn are the most basic indicators of trend direction. Irrespective of how trend trading is defined, the aim is the same – get in early and stay in until the momentum reverses.

In order to identify the ideal entry position, trend traders usually trade with restrictive stops and make several confirmatory movements into the market. Short-term movements typically provide exceptional possibilities for currency traders than those who use long-term trends to decide when or whether to trade a pair.

However, when opposing short-term trends occur inside a long-term trend, it’s a challenge to trade trending currency pairings. Analyzing chart patterns may, in general, offer investors a strong indication of a consistent pattern, particularly medium and long-term trends.

When trend traders get the transaction right, the gains can be huge. This is particularly true in the forex market, where huge leverage increases earnings dramatically. The same method that generates fast gains, however, may also bring significant losses. As a consequence, many impulsive traders face margin calls and lose the majority of their speculative funds.

2. What is range-bound trading?

Whenever the price changes of a currency pair remain inside a limited trading range, FX traders call the market environment range-bound. As a result, the upper and lower price points of the currency pair are rather predictable. The price remains in a similar range, frequently approaching either the high or low point before reverting to a place somewhat inside the defined range.

Traders profit from range-bound trading by acquiring at the support trendline and trading at the resistance trendline frequently until the asset breaks out of the price channel. The notion is that the value is more probable to bounce from these levels than to break through them, putting the risk-to-reward ratio in their favor, but it’s still crucial to keep an eye out for a breakthrough or breakdown.

However, whenever currencies trade in ranges, most traders encounter a challenge: there is no clear pattern that the price follows. In practice, predicting when the price will change, in which direction, and to what extent is a near-impossible task. In such conditions, estimating when transactions should be made or withdrawn for the best outcome becomes challenging. Traders often seek moving markets since range-bound currencies provide limited return potential.

3. Factors to consider when determining a currency pair is trending or range-bound

a. Volatility

The level of volatility in two currencies can help determine whether it is trending or range-bound. If volatility is considerable, the currency pair is trending, and when volatility is moderate, markets are range-bound.

b. Average Directional Index

The ADX is a powerful tool for determining if a currency pair is trading range-bound or trending, as well as determining the intensity of the trend.

c. MACD

The MACD is a well-known momentum indicator that evaluates two different Exponential Moving Averages and depicts the result as a single line. The currency pair is trending when the line is ascending, and trading range-bound if the line is descending.

d. Bollinger Bands Review

Bollinger Bands are also widely used by forex traders as a significant indication of volatility.

Conclusion

The Forex market is ideally adapted for both techniques, whether a trader intends to profit from trends with high leverage or trade a range strategy with smaller lot sizes.

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6 Fun Activities For Your Next Virtual Corporate Event

Remote working doesn’t have to be boring because you can spruce it up with fun activities for virtual corporate events. These are fun activities that ensure employees are lively and happy.

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6 Fun Activities For Your Next Virtual Corporate Event

Virtual corporate events are online gatherings often held via video platforms like Webex, Zoom, and Google Meet. Such events offer an excellent way to participate in games and other fun activities. They also aim to help create familiarity and relationships between the attendees and improve work dynamics and communication.

Hosting a virtual event is challenging, especially for an unfamiliar group. However, it has become a new culture nowadays because most companies have allowed their employees to work in a remote setup.

Despite the convenience, working from home has brought countless negatives like burnout, unexpected distractions, and feelings of isolation. It also resulted in positive outcomes, though, like the ability to bond, connect, laugh together, and have fun with each other via 100% virtual means. Thus, businesses and companies have openly embraced virtual events as part of their work process.

If you are tired of the old encounters at events and are struggling to get fresh creative ideas, here is a list of fun activities you can consider:

1. Virtual Happy Hours

Despite having employees working from home, companies must ensure that business operations continue without risking employees’ lives. This opened an opportunity to find creative ways to interact with each other to avoid boredom, including attending corporate virtual happy hour with colleagues.

Virtual happy hour doesn’t mean going to bars or pubs after work. There is no need to wait in line to use the bathroom or stick around for drinks, and none of your coworkers has to call a ride-hailing vehicle to take you home afterward. This is because employees can have conversations and share drinks over a video call.

Virtual happy hours allow remote employees to socialize in a confident and comfortable setting. Working from home can sometimes feel lonely and isolated, but virtual happy hours help people socialize, bringing a sense of connection and belonging despite the distance. This also allows employees to toast to each other from different locations, like when they used to go out for drinks after office hours.

2. Health And Well-being Activities

Cases of mental and physical health issues are more common today than ever before. Hence, incorporating activities beneficial for your mental and physical health into your virtual event is recommended to ensure you are well taken care of, even in a small capacity.

For instance, you can incorporate a meditation break or a short workout between sessions, depending on the event you’ll have.

Excited young man looking at laptop celebrating online victory

3. Online Office Games

Online office games have gained steady popularity since several companies adopted remote work setups. Such games are conducted via a secure videoconference platform and last for 90 minutes. These include trivia, icebreakers, and mini-competitions that somehow break the monotony of work duties employees have daily. The game is headed by an eager host to enhance engagement and entertainment.

4. Social Media Groups

According to Statistica, an average person spends about two hours a day on social media. So, you can create private groups on platforms like Instagram, Facebook, or Twitter for more virtual social connections.

For example, on Throwback Thursday, invite your peers to share an old photo with the team, and they will guess who’s in the photo. You may also ask teammates to tag someone on an image you’ll post, say, Ironman, who may be a favorite Avenger of one or two employees.

5. Virtual Dance Party

Dancing is a great stress reliever and team bonding exercise where coworkers can show their goofy and vulnerable side. To conduct a virtual team dance party, invite your coworkers to a video call, then create an enthralling playlist that will call for silly moves.

Another alternative to a dance party is to hold a silent disco. Here, each participant dances to the music they choose on their headset. Joining a silent disco is easy as each attendee dances to a song of their choice, and teammates can guess the song based on the moves. Virtual dance parties involve movements that may help workers blow off steam without thinking or talking to anyone; only rhythm does all the talking.

6. Digital Prom

Everyone has that prom dress or suit sitting in the closet because there is no opportunity to wear such elegant clothes. However, digital prom allows coworkers to dress up and relieve their childhood nostalgia, using the same prom experience to help them bond.

Although this activity might be silly for some, it offers a playful way to interact with peers and overcome fear.

Conclusion

Remote working doesn’t have to be boring because you can spruce it up with fun activities for virtual corporate events. These are fun activities that ensure employees are lively and happy. So, if you’re looking forward to organizing a virtual corporate event, try the activities discussed here to lift your spirits.

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