How To Trade Forex Technical Analysis.Advice
Author: Roman Sadowski
You have traded Forex exchange market for quite a while now. You have read hundreds of Forex guides and ebooks or Forex trading advice widely spread over internet. Those gave you basic knowledge about forex. Now you know the terminology, rules, currency movement trends and all factors influencing whole Forex market.
There is a lot to take at once.But let me tell you something here,Forex is something people learn all their lives and still there is something left.
You have probably wondered many times before which tactic to take.
Will I rely on technical analysis?
Should I look at the bigger picture and consider all economic conditions?
Will I trade news for quick profits or maybe invest long term.
I believe you went through many demo trading accounts to try them out.
If you picked up your strategy and you decided to go and trade technical chart analysis here is so much else left to consider. At this stage your knowledge should extend to whole terminology including:
support, resistance, chart names. You should know about moving averages, Bollinger band, Fibonacci or Elliot wave theory, Pivot points etc. Now all you have to do is apply all the above rules on your chart and here we go happy pips. Well it is not as easy as it seems to be!
There is one piece of advice that we would like to give you.
Not all the rules apply to all the currencies. That is right. If you have had enough experience and spent thousands of hours watching charts moving you have probably noticed that almost every single combination of currencies have their own flings and this makes them difficult to predict. Not all pairs would create head and shoulders, double top or bottom to signal the potential major movement. Some of them will but that may mean nothing.
Another combination would not necessarily bounce back from 55 or 200 hours moving average or follow pivot points. Other will not create hammers to indicate diversion. All above rules would apply to successful technical analysis trading.
We strongly advise you to do your homework and research. Before you select certain rules for certain pairs make sure that there is a pattern to follow. Adjust moving averages, Play with a few values and backtrack to see where there is a rule that you could use in the future forex trade.
There are many examples to learn from. If you study eurjpy and euraud pairs you will see how different they are. Euraud seems to have a strong trend on daily charts where eurjpy has not got one.
Take also eurusd and we will see that there was strong head and shoulder with the bottom formed on 22 Jan 2008 and instead moving significantly up it did not. Compare the daily chart of eurchf which on the other hand follows nicely its double top and bottom pattern.
We encourage all beginner traders to consider those factors before trading real money.
Select your indicators to your pairs in the way they are most suitable for each one of them.
Make sure it is backtracked and there is evidence for such a selection.
Remember: plan your trade and trade your plan.
Article Source: http://www.articlesbase.com/currency-trading-articles/how-to-trade-forex-technical-analysisadvice-537058.html
About the Author:
If you are serious about generating full time income Explore oportunity at http://www.forexmoneysignal.com
Friday, October 31, 2008
Wednesday, September 10, 2008
Forex Currency Trading: The Indicators In Your Trading System
by Bret Freak
From reviewing a number of forex currency trading systems and methodologies available online, I have found that the majority are based on having a number of indicators pointing in the same direction giving you a what’s known as a ‘confluence’ of indicators which is much more likely to be an accurate signal.However, it is not just any combination of technical/fundamental indicators. The well thought out systems available on the internet makes use of different types of indicators. For example they might first decide to observe some type of resistance level such as a fibonacci retracement level, a pivot point, or a double bottom. This provides the initial support area. From here they may look to price action, for example they may decide that their system requires a certain candlestick formation to occurm such as an evening star, or morning star formation. Alternatively, they may just wait for any candlestick reversal signal to occur around that area, to take the trade.
Some traders would be happy to take the trade with just those two criteria. Others may require additional indication that a change in trend is about to occur. For example, they may use a bearish Stochastic, or MACD signal to confirm the change in trend.Another less used method of trading might be, to incorporate the use of support and resistance type indicators as mentioned above, they may decide to make use of cycles. I wont go too far into the subject of trading using cycles since it would go off topic, and my aim here is to introduce you to the possibilities, and what other traders are using in there forex trading systems. However, one method of cyclic analysis comes to mind, it’s called the Delta Phenomenon.
The Delta Phenomenon can tell you with great accuracy, WHEN in time a move is about to occur, as well as the DIRECTION. However, to increase your probabilities of being correct you should refer to the Elliott Wave Principle. The Wave Principle basically can give you the FORM of the wave, as well as the ability to predict its DIRECTION. So if you had indications from both the Elliott Wave Principle and Delta that a change in trend to the upside was about to occur, wouldn't you feel more confident in taking the trade? Of all the methods and systems I have reviewed and examined, I have never come across a methodology that made sense as much as the method I have briefly described above involving the use of both Delta and the Wave Principle.Of course it is essential that you keep in mind other factors such as money management, and expectancy when developing and implementing your own forex trading system.
ConclusionThere is literally an endless mix of technical analysis techniques that you could use in your forex currency trading system. The one you choose largely depends on what you are comfortable with. Some prefer not to use market timing techniques that take some time to learn and implement, however if you have the time and patience to learn analysis techniques such as the Elliott Wave Principle, and the Delta Phenomenon, it might just be the ticket to your success.
Trading-forex-online.com makes it easier to choose a forex currency trading system that suits your needs. Whether you are interested in a fundamental based trading strategy, or a more technical analysis based system, you should find something of interest here.
Article Source: http://www.articlesnatch.com
From reviewing a number of forex currency trading systems and methodologies available online, I have found that the majority are based on having a number of indicators pointing in the same direction giving you a what’s known as a ‘confluence’ of indicators which is much more likely to be an accurate signal.However, it is not just any combination of technical/fundamental indicators. The well thought out systems available on the internet makes use of different types of indicators. For example they might first decide to observe some type of resistance level such as a fibonacci retracement level, a pivot point, or a double bottom. This provides the initial support area. From here they may look to price action, for example they may decide that their system requires a certain candlestick formation to occurm such as an evening star, or morning star formation. Alternatively, they may just wait for any candlestick reversal signal to occur around that area, to take the trade.
Some traders would be happy to take the trade with just those two criteria. Others may require additional indication that a change in trend is about to occur. For example, they may use a bearish Stochastic, or MACD signal to confirm the change in trend.Another less used method of trading might be, to incorporate the use of support and resistance type indicators as mentioned above, they may decide to make use of cycles. I wont go too far into the subject of trading using cycles since it would go off topic, and my aim here is to introduce you to the possibilities, and what other traders are using in there forex trading systems. However, one method of cyclic analysis comes to mind, it’s called the Delta Phenomenon.
The Delta Phenomenon can tell you with great accuracy, WHEN in time a move is about to occur, as well as the DIRECTION. However, to increase your probabilities of being correct you should refer to the Elliott Wave Principle. The Wave Principle basically can give you the FORM of the wave, as well as the ability to predict its DIRECTION. So if you had indications from both the Elliott Wave Principle and Delta that a change in trend to the upside was about to occur, wouldn't you feel more confident in taking the trade? Of all the methods and systems I have reviewed and examined, I have never come across a methodology that made sense as much as the method I have briefly described above involving the use of both Delta and the Wave Principle.Of course it is essential that you keep in mind other factors such as money management, and expectancy when developing and implementing your own forex trading system.
ConclusionThere is literally an endless mix of technical analysis techniques that you could use in your forex currency trading system. The one you choose largely depends on what you are comfortable with. Some prefer not to use market timing techniques that take some time to learn and implement, however if you have the time and patience to learn analysis techniques such as the Elliott Wave Principle, and the Delta Phenomenon, it might just be the ticket to your success.
Trading-forex-online.com makes it easier to choose a forex currency trading system that suits your needs. Whether you are interested in a fundamental based trading strategy, or a more technical analysis based system, you should find something of interest here.
Article Source: http://www.articlesnatch.com
Sunday, August 3, 2008
The 5 Best “how To” Guides for Forex Trading
The 5 Best “how To” Guides for Forex Trading
Author: Robert Gowan
7 Winning Strategies for Trading Forex Many traders go around searching for that one perfect trading strategy that works all the time in the global FOREX (foreign exchange/currency) market. Frequently, they will complain that a strategy doesn't work. Few people understand that successful trading of the FOREX market entails the application of the right strategy for the right market condition. Learn how you can select high-probability trades with good entries and exits.
"The 7 Winning Strategies For Trading Forex" covers: Why people should be paying attention to the FOREX market, which is the world's largest and most liquid financial market; How understanding the structure of this market can be beneficial to the independent trader; How to overcome the odds of success; and seven winning strategies for trading FOREX. Grace Cheng highlights seven trading strategies, each of which is to be applied in a unique way and is designed for differing market conditions. She shows how traders can use the various market conditions to their advantage by tailoring the strategy to suit each one.
The Forex Trading Course: A Self-study Guide to Becoming a Successful Currency Trader A pioneer in currency trading shares his vast knowledge. "The Forex Trading Course" is a practical, hands on guide to mastering currency trading. This book is designed to build an aspiring trader's knowledge base in a step by step manner with each major section followed by a thorough question and answer section to ensure mastery of the material. Written in a straightforward and accessible style, "The Forex Trading Course" outlines a practical way to integrate fundamental and technical analysis to identify high probability patterns and trades; reveals how to develop a trading plan and appropriate strategies for different size trading accounts; how to control emotions and use emotional intelligence to improve trading performance; and much more. Filled with in depth insight and practical advice, "The Forex Trading Course" will prepare readers for the realities of currency trading, and help them evolve and achieve success in this dynamic market.
Forex Conquered: High Probability Systems and Strategies for Active Traders Praise for "Forex Conquered": "In this amazing book, John covers it all. From trading systems to money management to emotions, he explains easily how to pull money consistently from the most complicated financial market in the world. John packs more new, innovative information into this book than I have ever seen in a trading book before." - Rob Booker, independent currency trader. "John Person is one of the few rare talents that are uniquely qualified to help traders understand the process of successful trading. With today's markets becoming increasingly challenging, John has cut right into the essentials and brought forward the much needed tools of forex trading. This clear and well organized publication is a major step forward in helping traders gain an edge. I would highly recommend "Forex Conquered" as a valuable handbook for both aspiring and experienced traders alike." - Sandy Jadeja, Chief Market Analyst and EditorLondon Stock Exchange, London, England. ""Forex Conquered" is a bold title, but this book delivers the tools needed for successful forex trading. There is no fluff here, just the wisdom of a trading veteran that I have always respected and followed."
Forex Made Easy: 6 Ways to Trade the Dollar This title shows how investors of every size can profit from today's largest trading market. Newly-developed online trading tools and tactics have helped individual investors smash the barriers between Main Street and Wall Street. Nowhere is this more evident than in the foreign currency market, or FOREX. Recent rule changes have opened this phenomenally lucrative market - formerly reserved for banks, corporations, and high net worth individuals--to independent investors, many of whom start with as little as $300! "Forex Made Easy" is the first no-nonsense, step-by-step introduction to making the FOREX an integral part of your overall trading program.Pulling back the curtain to reveal how simple and straightforward FOREX trading actually can be, this results-based manual takes you through an easy-to-follow, six-step process to: use unheard-of 100:1 leverage to make the most of your limited trading capital; practice market-proven techniques guaranteed to minimize your risk exposure; and, trade the FOREX market online, 24 hours a day, six days a week FOREX trading has quickly become one of the investing world's hottest opportunities, for all traders and investors, regardless of their size or strategy.
The 10 Essentials of Forex Trading A renowned trading educator reveals his proven forecasting methods for the Forex market. The largest market in the world, Forex is the new wave of investing for individual and active traders. In "The 10 Essentials of Forex Trading", trading innovator Jared Martinez shows you how to understand trading patterns and turn them into profit, no matter what your investment level is. Martinez, who created the Kings Crown method, delivers 10 essential keys for succeeding in the Forex market, with charting methods and insights that will help you begin trading currencies immediately. The keys include coverage of balancing equity management, identifying trend reversals, and forecasting sideways movement and trading it.
Article Source: http://www.articlesbase.com/currency-trading-articles/the-5-best-how-to-guides-for-forex-trading-490522.html
About the Author:
Robert Gowan is a professional book reviewer and writes book reviews and reports on a wide range of subjects.
For more information, tips and guides on forex trading please visit our site at :
http://www.free-forex-buy-and-sell-indicator.info/
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