trading

Common Pitfalls and How to Avoid Them The first pitfall is trading bias instead of price. The second pitfall is overtrading the noise. In financial markets, understanding price trends and volumes provides a critical advantage for traders, particularly those active in dynamic markets such as currency trading. In the Philippines, an increasing number of individuals have turned to forex trading as a means of income generation and wealth accumulation. Forex trading demands a sharp eye for technical indicators, especially when predicting market reversals and trend continuations. Filipino traders leveraging divergence signals between price and volume find themselves better equipped to navigate market volatility and secure more profitable trading positions. Price-volume divergence happens when the price of an asset moves in one direction while trading volume moves in another. For instance, if the price of a currency pair, such as USD/PHP, continues to rise but trading volume steadily declines, it signals weakening bullish momentum. Read more in our articles including "What Traders Can Learn From Fed Minutes About Global Currency Trends" and "How Divergence Between Price and Volume Signals Early Trend Shifts".