Tag Archives: strategy

Forex Indicators

Forex Indicators, put simply, are various indicators used to find patterns in the currency market. Generally, they manipulate raw data in various ways to try to create trading scenarios. Forex indicators try to pinpoint price data, which is an invaluable tool to a currency market trader. Using the information generated from a Forex indicator, a trader can find and exploit opportunities that he or she would have otherwise missed and therefore not profited upon.Image

The indicators are neither right nor wrong, but rather are more tools in the currency traders’ toolbox of financial capabilities. Because each Forex indicator simply provides signals to a trader, they must be used appropriately and properly integrated into a sound money management strategy that is already been developed by a confident and competent investor.

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Basic market literacy is necessary to be able to completely utilize an indicator, and what is desired from an indicator must be made completely clear when it is created. Different techniques and constructions of an indicator can lead to different outputs when it is used, meaning that it should be carefully vetted before being put into use.

Using an indicator, you can understand the Forex market much better than you would by simply observing it. Using the indicator, it is possible to predict outcomes, and from these outcomes a savvy trader can find the best plan for the market. Using an indicator alongside various other market analysis techniques is a good way to watch your money grow, as well as protect it from market volatility.

The goal of a investor who is trying to find out which indicator is the best should be to rather find out which indicators he should group together to create the best set of indicators. When multiple indicators are working together in a set, they can confirm each other’s predictions, thereby confirming and strengthening the viability of the prediction.

Many different indicators are available on advanced platforms, and this can create a challenge for even an experienced trader, let alone a beginner. Two of the most popular Forex indicators are Moving Averages and Stochastic Indicator. One great benefit of the Stochastic Indicator is that it is able to signal an investor when the market is either overbought or oversold, sending warning signals before anything calamitous has happened

Best trading strategy with Ichimoku system

If you are training Ichimoku strategy then you’re in for a treat. A lot of trainers are actually adept at training various scenarios and solutions. In fact, most corporate trainers have a huge following when it comes to being able to conduct training sessions. If however you are a first time trainer and have never really run a class and are just starting, then there are ton of things that you’ve got to learn before your first day of training.

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Many people think that training a group of adults in Ichimoku strategy is pretty much the same as training a group of students in college. Unless you’re training an adult class of fresh graduates then this is probably going to be too much to ask for. The truth is your audience is going to be made of people from different walks of life, all hoping to somehow learn few tricks that will enable them to learn exactly what they need in order to make some extra cash or go into a new career. What this means for you is that you’ve got one advantage and one disadvantage. Your advantage is, they want to learn from you. Your disadvantage is they want to learn from you.

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Adults, especially those who have worked before or maybe even someone you know will not be happy with a training session they can’t learn from so you have to make sure you know all your facts and are able to train them out. An effective training tip is to use stress balls. Stress balls are those round cushy things. You can use the item as balls to throw around. Try to throw them around when teaching a training class. It doesn’t just make the Ichimoku strategy session fun, it also makes the session easier to grasp and understand.

The Ichimoku Strategy and the Various Cloud Features

In making use of the Ichimoku strategy, there’s a lot that you can gain simply by looking at the kumo or the cloud. Either way that you go, you can interpret the data from the Ichimoku chart by component or as a whole and you’ll have a clear picture of what the Forex market is at a given time. Focusing on the cloud, this is the formation on the chart made by the Senkou span A and the Senkou span B. When you analyze the cloud in relation to how thick it is for example, you’ll find a few features out from the market.

When cloud thickness is the basis of your Ichimoku strategy, it points to the prices that will or will not manage a substance break. For a thicker cloud, it means that price with a sustained break through is less likely to be managed. When the cloud is thinner, the break through the cloud will have a better chance. It wouldn’t really matter what span is on the top. It can be span A or span B but the point of reference for you will be the thickness.

Predicting the next candle

Professional traders have also used candlesticks to trade the Forex market, but their application on the Forex charts can be a little different. For example, since the currency market is a 24 hour market, there will be fewer gaps up and down between candlesticks (except during weekends), so you will need to change your approach.

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1. What Are Japanese Candlesticks?

There are 2 types of candlesticks. The one that is bearish is usually red or colored, whereas the bullish one is green or transparent.

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A bearish candle is one that has closed below its open price, while a bullish candle has closed above its opening price. Usually there will also be shadows, otherwise known as “wicks”, that appear above and below the candlestick body. This is the price range that the currency pair has traded within the time period.

2. My Experience with Using Forex Candlesticks Made Easy

Inside this eBook I have learned all the major chart patterns that can predict price swings and continuations very reliably. Some of these patterns include the shooting star, Marubozu, engulfing patterns that can predict price movements reliably.

Of course, you will need to be more creative when looking for engulfing patterns, since it is harder to find this pattern when the next candle always opens at the same price as the previous candle’s close.

simple price action scalper method

Scalping trade is one of preferred ways of trading by retail traders. You might also like this style of trading if you have enough time and a strong mental ability to continuously watching your chart. Scalping is a trading method that aims to gain small profit but done repeatedly in one trading day.

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In addition to the ability to continuously monitor your chart, you must also be able to think and act quickly to be successful with your scalping trade. If you do not have all of these abilities then you should forget about this trading style and look for another trading style that is more suitable for you. Many traders who perform this style of trading can do a dozen times of scalping trade a day. Not all winning trades, but usually they have a good strategy that can be relied upon so that by the end of the day they still generate some profit, although only small ones, from their trading.

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The scalper, the term for traders who scalp any markets, typically focus on only small time frames, say 5-minute, 1-minutes and tick charts. They really have to focus because the forex market often fluctuates very fast. But for the scalpers, fluctuations are opportunities. Scalpers love market volatility. Every tick of the price in any market is money in scalper’s eyes.

You can be a good scalper too. Besides the above mentioned capabilities you should have, you will need a good scalping strategy. One simple technique for this trading strategy is similar with a range trading strategy. First of all, you have to identify market trends. If you see the market being in ranging mode, then the chance to scalp the market is in front of your eyes. Next thing you should conduct is identifying support and resistance or the boundary of the ranging market. Once everything has been clearly readable, you have to focus on the 5-minute and 1-minute chart and you can make use of momentum oscillators to see any the buy and sell signals.

Remember that these all require sufficient study and practice so that you can successfully do the scalping trade. You have to be prepared with all the possibilities. You must also be ready to stop any losses quickly and close immediate profit that you have gained. There are many other scalping techniques that you can try. Experiment them one by one, make special note of each technique. Then choose the one that would be the best for you and do it consistently. After this you will become a good scalper.

Theory of market system

To buy foreign goods and services, or to invest in other countries, companies and individuals may need to first buy the currency of the country with which they are doing business. Generally, exporters prefer to be paid in their country�s currency or in US dollars, which are accepted all over the world.

When Canadians buy oil from Saudi Arabia they may pay in US dollars and not in Canadian Dollars or Saudi Riyals, even though the United States is not involved in the transaction.

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The foreign exchange market or the �FX� market is where the buying and selling of different currencies take place. The price of one currency, in terms of another is called an exchange rate.

The market itself is actually a worldwide network of traders, connected by telephone lines and computer screens � there is no central headquarters. There are three main centers of trading, which handle the majority of all FX transactions � United Kingdom, United States and Japan.

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Transactions in Singapore, Switzerland, Hong Kong, Germany, France and Australia account for most of the remaining transactions in the market. Trading goes on 24 hours a day. The London market opens when the Japanese and Hong Kong markets are about to close. While the London market is in its half-day, the New York market opens. San Francisco market opens after trading in London get over. Japan resumes trading when San Francisco market closes down.

The FX market is fast paced, volatile and enormous � it is the largest market in the world. On an average the market records over $1.2 trillion a day.

Forex Pips

If you are interested in forex currency trading you are sure to have seen mention of forex pips on a lot of websites. You probably worked out that foreign exchange traders use them as a measure of gains and losses. They will talk about setting a stop at 10 pips, or boast of a huge profit of hundreds of pips from one trade. If you plan to become a currency trader yourself, you do need to understand forex pips and what they mean in real money terms.

The word ‘pip’ stands for percentage in point (or some say, price interest point). It is the smallest increment of price change, and allows us to measure a rise or fall in currency prices in percentage terms instead of in dollars and cents.

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Why do we need to do this? The reason is simple. All currencies of the world are traded in the forex market. Sure, the US dollar is the most traded currency but it is not involved in all trades. You can trade crosses, that is two other currencies such as EUR/GBP. With a pair like that it would make no sense to express your gains and losses in US dollars. So instead, we use a value that is a small percentage of the quote price of any currency pair. That is a pip.

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Most currencies are quoted to four decimal points and then a pip is 0.0001 of a currency unit. For example, say the bid price for EUR/USD is 1.3505 and the ask price is 1.3507. The spread (the difference between the two) is 0.0002 or 2 forex pips.

In money terms, the pip is 0.0001 times the lot size of the quote currency. So for EUR/USD, if your lot size is $100,000, one pip is $10. If your lot size is $10,000, a pip is $1.

But if the quote currency is not USD, then a pip will be 0.0001 times the lot size in the quote currency, whatever it is. If you are trading EUR/GBP with a lot size of 100,000 British pounds, one pip is 10 pounds.

Just to make things more complicated, there is also the Japanese yen whose value is so low that it is only quoted to 2 decimal places. The price of USD/JPY might be 112.20. Now one pip is 0.01 times the lot size but in yen, not dollars. So you might have a lot size of 10 million yen, giving a pip size of 1,000 yen which at that exchange rate would be worth $11.22.

Super breakout system

If you want to win at Forex trading, then you should study the story of the turtles. This group of people had no previous trading experience and were taught to trade in just two weeks.

The following inforation can be learned to effectively become a forex trader.

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1. Trading is a learned skill and can be learned quickly

Dennis proved anyone could trade successfully if they had the right education and the story of the turtles, should be an inspiration to any new trader.

2. Simple System are Best

Today, everyone thinks that technology can beat the market but as the ratio of winners to losers, has remained constant for over 100 years, this is not so. The best way to trade Forex markets is with a simple system and the one Dennis taught, was a simple breakout system which followed long term trends.

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3. Money Management is the Foundation Success is Built on

Most traders over leverage their and get wiped out quickly. The turtles were taught to apply rigid money management principles and follow them and above all else, defend core equity. They lost far more trades than they won but because profits were run to there maximum potential and losses cut quickly, they made huge gains over the long term.

4. Discipline the Key to Success

No trader will win without discipline which is simply, the ability to follow your trading system through periods of losses and not deviate from it. This sounds simple but most traders can’t do it; they take losses personally, get angry frustrated, or lose confidence and either deviate from their trading plan or throw in the towel.

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