Forex Indicator Definitions

Simple Moving Average (SMA) - The average price of a given time period, (5 minutes, 10 minutes, 1 day, etc.) where each of the chosen periods carries the same weight for the average. Example using the closing prices of the USD/JPY currency pair: Day 1 close = 124.00, Day 2 close = 126.00, Day 3 close = 124.00, Day 4 close = 126.00; The 4-day SMA is 125.00 (the average of the prior four...

Learn To Trade Forex Profitably In 1 Weekend Or Less!

We have all herd the forex buzz in the past few years, thousands of beginner currency traders come into the market every month with the sure opinion that they will master the market and make millions. We all know how that ends up.Forex Currency Trading For The Beginer does not have to be complicated at all in fact you will probably be shocked when I tell you what some traders I know are doing to make...

Profits from Forex

As a trading advisor in the markets for almost half a decade, I have come to realize a few things about taking the profits. The first thing is to find a low risk trading opportunity then make sure your risk is lower than your potential gain and executing the trade with discipline. In the beginning the best thing is to do this on a demo account or on a single contract basis.The good thing is that the...

Two Most Important Questions You Must Answer Before You Trade Forex

As a young graduate who was earning a good starting income many, many years back,I was attracted to trading stocks and shares as a traditional way of investing my hard earned money to try to create personal wealth. Since then, I often meet people who would tell me that right now, opportunities to make money from investing in the stocks and futures market, the forex and commodities markets are much...

Today, August 10 2007

INTRA-DAY EUR/USD OUTLOOK - 1.3680Although euro has retreated after meeting renewed selling at 1.3712/15, a breach of 1.3654 sup isneeded to confirm decline fm 1.3840 has resumed nextend marginal weakness to 1.3635/40 but loss ofnr term momentum shud limit downside to 1.3609.Wud be prudent to take profit on present fall nlook to sell again on subsequent recovery...Rate: 1.3680Strategy: Exit...

GBPUSD New Signal

If you are running a bad position and the market is still going against your trades, providing the open position details and we would be more than glad to help you out.Aug 09 Spot Trade:Currency: GBPUSDTrade Objective: Resilient-Trend FollowerChart: DailyTrade volatility: mediumTrade duration once triggered: min 02mn, max 07 days.Spread Consideration: Set the trade as it is below in its exact formLong...

Aug 08 Spot Trade:

*************************************** INTRA-DAY AUD/USD OUTLOOK - 0.8563Update Time: 08 Aug 2007 01:17 GMT Despite intra-day rise to 0.8578, lack of upsidefollow through n current retreat suggest consolida-tion wud be seen n weakness to 0.8540/45 cannot beruled out, however, y'day's 0.8514 low shud remainintact n yield further choppy trading....

GBP/USD Today

Pivot 2.0399R1 2.0446R2 2.0475R3 2.0522S1 2.0352S2 2.0323S3 2.0276Buy Stop 2.0445Sell stop 2.0...

Buy/Sell Signals for Ranging Markets

Why the Forex Market ChangedThrough the 1980s and 1990s, and even into the new century,...

US Dollar, Fed Rate Hike Expectations Hinge on FOMC Statement

AUG 7 FOMC Rate Decision (14:15 EST; 18:15 GMT) Expected: 5.25% Previous: 5.25% How Will The Markets React? There is little doubt that the Federal Open Market Committee will leave rates steady at 5.25 percent on Tuesday at 14:15 EST, as Federal Reserve Chairman Ben Bernanke told Congress in mid-July that the central...

USD Falls on Softer-than-expected US Data

• The dollar dropped against major currencies on Friday after reports showed slowdowns in payrolls growth and services industries. Today’s softer-than-expected US data led to declines in the US stock market and exacerbated the dollar’s sell-off.• Sterling had a weekly gain against the yen and dollar as carry trades resumed and on expectations the Bank of England will raise interest rates at least...

Forex Market Outlook on Minors/Crosses

*************************************** INTRA-DAY AUD/USD OUTLOOK - 0.8547Update Time: 05 Aug 2007 23:29 GMT Although aussie has rebounded after intra-dayfall to 0.8521, abv 0.8580/85 is needed to signalthe retreat fm 0.8604 has ended, otherwise, furtherchoppy consolidation is in store n marginal fall to0.8510/15 cannot be ruled out. Incline to...

Developing Your Forex Trading Style

Forex trading style comprises of a set of formalized rules, which directs the process of your trading. Without a pre-designed trading style, your trading is like a ship without a destination. A fully formulated forex trading style turns your trade into a profitable business. In general, forex trading styles are based on two main fields of studies: technical analysis and fundamental analysis. You must...

Power Lift Your Trading

Successful trading requires having a firm understanding of the risk and reward picture before taking a trade. It requires having a good idea as to the trend direction of the market within a time frame that is higher than the one used to trade from.For instance, if a trader usually takes trades that do not last more than one day, then it is likely that intraday charts are used in making trading decisions....

Forex Myths 10 That Cause 95% of Traders to Lose

I have been a trader for over 25 years and the myths below are common ones and if you make anyone you will lose your equity and join the 95% of traders who lose. Let’s look at these forex myths and why they will guarantee you lose.1. You Can Predict The MarketThis is a common myth and the bulk of novice traders think they have to predict where prices are going to succeed – wrong. In forex trading...

Become A Professional Forex Trader - Living The Dream In 3 Simple Steps

Everything about forex trading can be learned yet 95% of traders lose however if you follow the 3 simple tips enclosed you could enter the elite 5% who achieve currency trading success. Let's look at 3 tips for forex trading success.Forex trading is one of the few areas you can build wealth quickly and the opportunity is open to all - but to make your forex trading successful you need to have the...

Forex Day Trading - Want to Try It? Then Get Ready To Lose

One of the biggest myths in forex is that day traders make money longer term - they don't and if you don't believe me then consider these two facts:Fact 1 – No Valid Data to Work WithTrillions of dollars are traded daily by millions of different participants and to believe that you can work out where prices may go in a day is laughable.The data is to short in time span and support and resistance levels...

Forex - Currency Traders Marriage Survival Tips

Trading in the foreign exchange (FOREX) market can be a lonely experience for both you, the trader, as well as your spouse. As a currency trader, you can become so engrossed in your investment activities that you forget to take time for the basics of life such as marriage, family and everyday fun. Consequently, unnecessary tensions develop in the home. If your marriage is in danger of being rocked...

Forex Charts - Novice Trading Mistakes

Using Forex charts is like being a ships captain at sea: Your charts can help you navigate successfully to port or you can hit the rocks and drown - the choice is yours. It’s the same with forex charts 95% of users drown – Let’s look at common errors that novice traders make and how to avoid them.1. Predicting PriceNo one can predict price movement and if you do - you are simply hoping levels will...

Trading Forex - Outside The Dollar

Almost all newcomers to the currency trading start their journey with the so called “majors”. And not surprisingly so. These instruments are the most popular, most liquid, and most prominent. They are also all dollar based.What are the “majors”? While there is no formal definition for that term, “majors” are the USD denominated currency pairs. Virtually every time you enter a forex broker’s site,...

About Short selling

There were few postings on Traderswin stocks trading blog targeting on shorting candidates over the past few days. From BeautyChina, HTL Intl to StatsChipac , Datacraft and DMX tech. With the negative market sentiment, these counters are currently moving our favour. I have quoted some rules for short selling from Leon Wilson, a outstanding Australian private trader. In SG market, short selling is...

Weighted Moving Average (WMA)

WEIGHING OF moving AVERAGE OR ITS ALIGNMENT?While simple average is used more only, the some people analytics prefer to pay additional attention more to late action of the price This idea supports weighted average environment sliding. Weighed average gives more weights to latest candles for trading-They to the price data and have less than weight to the perspective prices. This is the reason weighed...

Simple Moving Average (SMA)

SIMPLE Moving AVERAGEGraphic packages offer a wide variety of ways of times for Simple Moving Average. For example, the user can use it itself or to combine one average sliding line two average Lines in forex trading for creation of signals of crossing the Length of lines can alsoTo differ depending on, whether places swing currency trading or short-term trends. First choice which, however, it is...

Moving Averages (MA)

One of the most popular trading indicators..comes in various variations Exponential (EMA), Weighted (WMA), Simple (SMA) etc..Moving AverageMoving Average has pluses and minuses. The Minus that it beforehand does not speak to you, that change of a trend has comes nearer. This technical indicator will help you to define, whether goes existing Trend and to confirm, when there was a change of a trend...

How to adjust RSI

The basic value of the technical indicator RSI is in definition, when the forex trading market has reached area overbought (above 70) or undersold (is lower 30). In very quiet market with low volatile (Movement) you can notice, that fluctuations of line RSI remain Between 70 and 30 In that case line RSI has small value youCan want to try to raise its curve by changing the value depending on trading...

RSI (Relative Strength Index)

This popular technical indicator has been described as relative strength index. The value of RSI is that it represents top and borders of the range trade in currency or so called forex market in day or swing trading.Values of RSI are ranged from 0 to 100. Indicatior value higher than 70 are considered as overbought. Indications are lower 30 are considered oversold on the trading charts. Application...

MACD technical indicator

This indicator developed, uses three Average sliding in the design though on the schedule are shown Only two lines on forex charts. The first line (line MACD refers to) isDifference between two trending lines, smoothed by average Sliding the prices (it is usual the periods 12 and 26). The charts subtracts Long average (26) from short (12) also receives line MACD. Average sliding (9 periods are usual)...

MACD as following the trend

Interpretation of two lines of system MACD is relative also it is similar to the techniques of currency trading of crossing described in discussion about exponential moving average(EMA).In other words, signals of purchase when fast line MACD crosses from above slow moving average line. Signals of buy arise, when a fast line Crosses from below slow. Thus, are given significant entry signals for placing...

Using MACD with Histogram

How indicator MACD was good, there is this way to check while doing currency trading . This technics refers to "Histogram MACD". The histogram MACD gives earlier preventions of changes onchange in an occuring a trend and strongly increases value of it on the charts. As the histogram shows signals of crossing MACD (it is a little in another way), at its use it is lost nothing. The way of creation of...

Continuing MACD

If the histogram is above a zero line (bull), butStarts to fall to a zero line, it tells us, that (or the spread) between two lines MACD begins the attitude To weaken currency trading analysis.Remember, whether that the histogram measures distinction between MACD or even RSI. Value of the histogram with plus or a minus (is higherOr to below zero line) tells us to enter the trade or exit the trade,...

Forex day trading using EMA and RSI

EMA and RSI are the easiest of indicators to use when it comes to trading..let it be any trading such as options, commodities and forex.Thats because they are evry easy to understand and apply on the forex charts. So your forex trading system can contain EMA as a leading indicator and RSI as a confirming indicator.One trading system that uses the EMAs very beautifully is the one that is written by...

Forex Day trading - Breakout in all major currency pairs

Breakout in all major currency pairsToday the major pairs such as EUR/USD, GBP/USD and others broke out from a long range trading. Its more like the currency pair rested for a while to gain strength and get going. The stochastic and RSI were showing overbought. So why did these forex pairs move up?Thats because the technical pairs only indicates probability. One should not enter the trade till the...

Forex Trading Sytem - How to do Technical Analysis?

How to do Technical Analysis?Most of the beginners struggle on how to do the analysis? Should they be doing trading using forex trading signals or should it be by reading charts? Or is there any other way?Well, technical analysis is the way to go..Use a popular oscillator such as RSI or MACD or stochastic. Using more than one oscillator may not help, infact many a times it gives false signal. My personnal...

GBPCHF - Hedging Strategy of the Week (Profit Potential: 600 pips)

Currency Pair: GBPCHF Entry Zone: Go both long and short at the market if the price is at any level within the 2.42-2.48 range Protective Stop: Long stop below 2.3750 and short stop above 2.5250 Profit Target: Long Target at 2.48 and Short Target at 2.42 Profit Potential: 600 pips (excluding transaction costs and slippage) For more information on FXCM hedging strategies please visit http://www.fxcm.com/hedging.jsp...