Forex Signal Indicator | Forex Trading System

Forex Reversal Strategy

2011-09-18T10:19:00.002+07:00

Spike Reversal Strategy

Steep, fast rallies in currency prices, better known as spikes are often caused by major economic news releases such as the non farm payrolls report (NFP). The vast majority of traders lose a lot of money trading spikes in Forex. Therefore, I reveal my favorite forex reversal strategy on how to make regular profits from spikes utilizing bullish and bearish pin bars. This strategy works best on 5 min charts and provides good risk-to-reward ratio's.

Trading Setup

Time Frame: 5 min chart
Currency Pairs: Majors (EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD and NZD/USD)
Trading Sessions: all

Rules For Sell Trades
1) Wait for a significant upward spike to occur in any of the major currency pairs. The spike must be clearly visible on the 5 min chart.
2) The appearance of a bearish pin bar in the vicinity of the spike high price triggers a sell order.
3) Open a short position at market on the close of the bearish pin bar.
4) Our stop is placed at the high of the pin bar.
5) Our target is the low of the upward spike candlestick.

Example - Forex Spike Reversal Strategy, GBP/USD 5 Min Chart

In the GBP/USD 5 min chart above, a 50 pip spike occurs in the market. Four candlesticks later at 13:00 on October 26, a bearish pin bar appears on the chart and we enter short on the close of the pin bar at 1.5882. Our stop loss is placed at the high of the bearish pin bar at 1.5894. Our target is the low of the upward spike candlestick at 1.5849. The trade was closed 75 minutes later, banking 33 pips of profit.

Rules For Buy Trades

1) Wait for a significant downward spike to occur in any of the major currency pairs. The spike must be clearly visible on the 5 min chart.
2) The appearance of a bullish pin bar in the vicinity of the spike low price triggers a buy order in the market.
3) Open a long position at market on the close of the bullish pin bar.
4) Our stop is placed at the low of the pin bar.
5) Our target is the high price of the downward spike candlestick.

---- sbudij ----- by. Jimmy Gastaz fxtsp -----

Forex Trading Strategy

2011-08-27T10:15:00.006+07:00

Moving Average - Multiple TimeFrame
The multiple timeframe moving average trading strategy uses one medium-term and one short-term timeframe to improve the odds for successful currency trading. The strategy is designed to trade only in the overall direction of the market trend. Always remember: the trend is your friend. If you buy dips in the uptrend, you are making pips. If you try to short, you will lose pips.

Forex Chart Setup
Time Frame's Used : 1 hour and 5 min chart
Indicator 1 Hour Chart: 100 Exponential Moving Average (EMA)
Indicators 5 Min Chart: 200 Simple Moving Average (SMA) and 5 Exponential Moving Average (EMA)
Recommended Trading Sessions: Euro and US
Currency Pairs: Any

Step 1) Defining The Overall Currency Trend

Price trading above 100 EMA > Trend is up.
Price trading below 100 EMA > Trend is down.
>>> In the example above, the overall trend in the Pound/Dollar is clearly up.
Forex Moving Average Cross-over system defined
A moving average cross-over system consists of at least 2 moving averages, a long period MA and a short period MA. A signal to go long is generated when the short MA crosses the long MA from below. A signal to go short is generated when the short MA crosses the long MA from above.

Step 2) Using A Moving Average Cross-Over System To Enter A Trade

The price is trading above the 100 EMA in the 1 hour GBP/USD chart, so we will look for long trades only.

GBP/USD Trade Explained
• The moving average cross-over system gave us a signal to go long @ 1.5889 in the uptrend defined by the 1 hour chart.
• Stop loss is placed 3 pip below the most recent level of support @ 1.5860.
• Target is twice the risk or at least 50 pips.
• Target is 58 pips @ 1.5947.
• About one hour later, the trade hit our target for 58 pips.

See other trading indicator.... Click Here..

---- sbudij / karawangForex ----- by; Luca De Vid --------

Trading with Donchian Bands and 3 WMA

2011-04-11T09:40:00.004+07:00

Trading with Donchian Bands and 3 WMA
Indicator :
Time Frame : 30 min and 1 hours
Donchian Bands Click here
5, 20, 100 LWMA
100 LwMA is Major Trend
BUY the exchange rate when the 5 WMA crosses up past the 20 SMA
SELL the exchange rate when the 5WMA crosses down past the 20

Trend Following Stochastic

2011-03-04T09:39:00.006+07:00

The trend following stochastic forex trading strategy is an easy to understand yet profitable strategy to trade currencies. The only tools we need in order to apply this method is the stochastic indicator, ATR(14) and trend lines. If you have no idea what trend lines are, please read this article first.
Forex Chart Setup
Preferred Time Frame's: 30 min and above
Trading Indicators: Stochastic Oscillator (5,3,3) and Average True Range ATR(14)
Recommended Trading Sessions: Any
Currency Pairs: Any
Rules for a Long Trade
1) Find an up trending market and draw a rising trend line connecting the successive temporary support bottoms.
2 Wait for the price to pullback towards the rising trend line.
3) Go long in the vicinity of the rising trend line if the Stochastic Oscillator turns positive from oversold market conditions.
4) Place stop 3 pips below the most recent level of support.
5) Trade objective: 50% of 14 day average true range (ATR).

Trading example (GBP/USD 1 Hour Chart)

The gbp/usd is in an up trend supported by the rising trend line. The price pulls back towards the rising trend line while the Stochastic Oscillator turns positive from oversold market readings (below 20). We open a long buy at 1.5590 with stop 3 pips below the most recent level of support at 1.5590. Our trade objective is 50% of ATR which is 75 pips. The trade was closed about 4 candlesticks later at 1. 5690 for 75 pips while the risk was only 25 pips (+ spread).
Rules for a Short Trade
1) Find a down trending market and draw a falling trend line connecting the successive temporary resistance tops.
2 Wait for the price to rally towards the falling trend line.
3) Go short in the vicinity of the falling trend line if the Stochastic Oscillator turns negative from overbought market conditions.
4) Place stop 3 pips above the most recent level of resistance.
5) Trade objective: 50% of 14 day average true range (ATR).

Related Indicators.... See..Free Forex Signal - Forex Indicator

------ sbudij ---- by; Willie Van Der Perre ---------

3 EMA's Forex Trading System

2011-02-24T22:58:00.002+07:00

3 EMA's forex system is used to find low risk to reward entry points in a trending currency market.

Chart Setup

Moving Averages: (EMA34 High, EMA34 Close, EMA34 Low)
Stochastic Oscillator (5,3,3)
Trend confirmation: bullish and bearish candlestick patterns

3 EMA's Forex Trending System EUR/USD 5 Min Chart

How it works

1. Determine the trend: Are the 3EMA's pointing up, down or flat? DOWN. (we enter no trades in a flat market)
2. As a result, we will only look for possible sell entries in the euro/dollar.
3. We wait for a rally back toward the 3 EMA's for the best possible entry (low risk).
4. Rally back towards the 3EMA's? Check the stoch oscillator (Is it overbought, value +80)? If yes,
5. Now check for a bearish candlestick pattern to pinpoint your short entry in the market.
6. The picture above shows where we entered short the EUR/USD (3EMA's down, Stoch overbought, bearish pattern).
7. Set stop loss above the bearish candlestick pattern and use risk to reward 1.5 or better

---- by : fxstp ---------

Trading FOREX With The TRIX Indicator

2010-11-16T14:44:00.005+07:00

The TRIX indicator is a less known indicator, though it has powerful trading signals when used right. In this article we will explain the construction of the indicator and the means of trading it.

Introduction
The TRIX Indicator was developed in the early 1980s by Jack Hutson who was an editor for the Technical Analysis of Stocks and Commodities magazine. Its name is comprised of its calculation: Triple Exponential. The TRIX is calculated using triple smoothing of price and therefore it is generally trend-following and a bit lagging in signals.

Calculation
1. Smooth price with 14-period Exponential Moving Average (EMA).
2. Smooth the EMA from step 1 with 14-period Exponential Moving Average (EMA).
3. Smooth the EMA from step 2 with 14-period Exponential Moving Average (EMA).
4. Divide the value (triple smoothed) of today from the one of yesterday. The result is the TRIX.

A signal line (Slowed version of the TRIX) is then calculated, to be used in generating signals.

Trading with the TRIX
The TRIX is traded in several ways, generally like the MACD which is visually similar.

Trading Method #1: Signal Line Cross
This method uses the signal line to generate buy and sell signals. The trading rule is similar to the one used at MACD, Stochastic and more traditional indicators:

Trading Rules:
Buy when TRIX crosses its Signal Line from below.
Sell when TRIX crosses its Signal Line from above.

Trading Method #2: Zero-Line Cross
Since the TRIX revolves around its zero-line, it can be used as a pivot to gauge trend direction. This approach is similar to CCI and RSI trading signals.

Trading Rules:
Buy when TRIX crosses zero-line from below
Sell when TRIX crosses zero-line from above

Trading Method #3: Divergence
This trading method is used when the TRIX's visual behavior differs from the ones of price. Example: When TRIX is making lower highs and price making higher highs. This can be a signal of irregular trend that is weaker and prone to reversal. Opposite also valid: When TRIX is making higher lows and price is making lower lows. This can be a sign of a bullish reversal

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….others indicator ….Click here……

Forex Trading Strategy - GBP / USD

2010-03-03T09:04:00.001+07:00

I've just started trading a strategy which is based on the close of the first 15 minute bar after midnight GMT on GBPUSD.
1.) Take the closing price of the first 15 minute bar after midnight GMT on GBPUSD
2.) Place a buy order 50 points above the close and a sell order 50 points below the close
3.) Both orders should be placed with a 20 point stop loss and a 20 point limit order to take profits
4.) Once 1 trade is triggered, cancel the other.
This has averaged 74 points per month since April 08 which doesn't sound much, but given the short stop distance you can afford to place large trade sizes. I trade with £10k capital and am placing £12.50 per pip or 2.5% per trade. Based on last years results that's almost a 10% monthly return

I have tested this with 20, 30 and 40 point targets, the 20 point target won 960 points over 13 months, the 30 point target won 780 and the 40 point target won 960. I prefer to stick with 20 as a safe option.

---- by Rich fxStrgyrvl -----

Trend Hugger Trading Strategy

2010-02-23T21:40:00.002+07:00

1. Works with all types of time frames (hourly, 4 hour, daily, weekly, monthly).

2. Create a MACD or OsMA chart using the following parameters:

Fast EMA 40
Slow EMA 50
Signal SMA 100

3. The MACD and/or OsMA value will change for every price bar.

4. Use 50 PIP stop on all trades...

Buy Signal: When the current price bar MACD or OsMa signal is greater than the previous price bar MACD or OsMA value

Sell Signal: When the current price bar MACD or OsMA signal is less than the previous price bar MACD or OsMA value

That is it. This system will allow execution of buys at the very low point of a trend and the execution of sells at the very high point of trends...

Your only preference should be the timelines. If you have time to monitor the market daily, use the hourly chart. If not, use the 4 hour or daily chart. The greater the timeline, the fewer the trades.

The Fisher Indicator

2010-02-15T21:50:00.004+07:00

With extracts from the article “The Inverse Fisher Transform” by John Ehlers
This article may at first appear very technical, but once you understand how the Fisher indicator works, and what it shows, you’ll increase your success in timing your trade.
The purpose of technical indicators is to help with your timing decisions to buy or sell.
Hopefully, the signals are clear and unequivocal. However, more often than not your
decision to pull the trigger is accompanied by crossing your fingers. Even if you have placed only a few trades you know the drill…
We’ve made it easier for you with this custom indicator…

The rules for the fisher are basically…
•Only Buy when the Bars are Green (below the zero line and rising)
•Only Sell when the Bars are Red (above the zero line and falling)
•Move to break-even when the bars are yellow, and manage your trailing stops.

The rules for the fisher are basically…
•Only Buy when the Bars are Green (below the zero line and rising)
•Only Sell when the Bars are Red (above the zero line and falling)
•Move to break-even when the bars are yellow, and manage your trailing stops.

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---- by; Forex Breakout System -------

Scalping system - 5 pips with GBP/USD

2010-02-13T09:41:00.003+07:00

This simplified Forex trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.

Trading setup

Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)

Trading rules
Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one Parabolic SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.

Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.

exits
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.
Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.

Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.

--- by; E.Revy fxStrtg Rvl team -----

SuperTrend Indicator

2010-02-07T00:20:00.003+07:00

SuperTrend Forex Trading Indicators
SuperTrend was developed by Olivier Seban , This indicator has the enormous advantage of working on all the time bases and all media.
So you can use on equities, futures or forex, as well as weekly in 5 minutes.
It is ideal to accompany the trends and optimize your output.

SuperTrend moving above or below the price depending on the trend developed.
He repositioned based on the closing day, which has the main advantage to filter false signals that may occur when the trend slows or during periods without trend.

SuperTrend is calculated from a coefficient applied to the average volatility of the last candlesticks (or bar charts according to the display mode).

Although the author recommends using the parameters 3 and 10, respectively for the multiplier and the number of candlesticks taken into account to calculate the average volatility, you can adjust them to your needs or affinity.

As the SAR Wilder SuperTrend accompanies the award as a follower stop except that it does not progress or does not close on price for the areas of advanced horizontal.
This gives more space and time for prices to move, giving you the opportunity to capture a larger movement. You can use it as an indicator of output when this change of direction or position of the stop loss.
Generally it is preferable to focus on positions where buyers SuperTrend evolves below the price and hand it is preferable to take only short positions when SuperTrend evolves over prices.

Forex Scalping Strategies

2010-01-27T21:06:00.004+07:00

Forex Scalping System For Currency Traders
Therefore in this post, I will go through some of my forex scalping strategies so that you can put them to use for your trading.
When it comes to scalping the market, there are a few factors you have to put in mind.
• You are going to have low risk reward ratio. When you are scalping the market, you are only looking for profit around 15 to 20 pips but it is hard to find entry with low stop loss less than your profit. Therefore you are going to lost more than you can make for every loss trade.

• To compensate for that, you need to have a high winning probability for forex scalping to be feasible for your account.
Here are some forex scalping system that I use
• Look for key support and resistance: As price usually are repelled by the key support or resistance level, there are a high chance that you can enter a trade opposite to the current movement trying to make profit from the repulsion.
What are the key support and resistance levels?
• Pivots: pivot trading are used by big dog and it usually provides very strong support or resistance and this is where you can enter your trade.
• Fibonacci Extension: Fibonacci also serve as good level of support and
Past Highs and Lows: You need to know that the previous high will now turns into your new support and previous low will now turns into your new resistance.

With the understanding of these important support and resistance levels, you can now setup your own forex scalping system with these levels in mind.

---- forex strategies by Kelvin ----------

Forex trading strategy - RSI, Bollinger & 75EMA

2010-01-22T12:11:00.005+07:00

Time Frame H1
Indicator RSI 14, 75ema, BB 20, 5ema shift 5

GOING LONG: When a candle closes above the 75 ema as well as the bollinger middle line, and the RSI line breaks above the 50 line or a resistance pattern, enter LONG.

Stop loss - there will be 3 notable levels below your entry - the low of the signal candle, the 75 ema, and the recent swing low of the 5 ema. Of these three I will use whichever is in the middle of the others to place my stop 2 pips below.

GOING SHORT: When a candle closes below the 75 ema as well as the bollinger middle line, and the RSI line breaks below the 50 line or a support pattern, enter SHORT

Stop loss - same as for long - I will place my stop 2 pips + the spread above whichever is the middle of the 75ema, high of the signal candle, and swing high of the 5ema

I will either use a 1:1 R:R, or a 1:2, so either close my trade at 100% the distance of my stop or 200%,
depending on how wide the stop is to begin with - for example if my stop ends up only being 45 pips on GBPJPY and the trade was opened near the beginning of London, I will use a target of 90 pips. But if my stop is 78 pips on EURUSD, I will use a take profit of 78 pips as well.

I generally risk 2% of my total account for this particular strategy.

On the picture, the red arrow is pointing down to the candle that generates the signal, and the position is taken when that candle closes. The blue line indicates the entry price for
the short, the red line indicates the stop and the green line indicates the target.

--- by; Ed.Revy / FxStrgyRvl -------

Reversal Chart Pattern - Double Top

2010-01-17T17:55:00.005+07:00

Double Top Definition
Double Top is a chart pattern with two swing highs very close in price. This pattern can be seen in all time-frames. There are a few requirements to classify a chart pattern as a double top:

1. Two peaks that are near equal in price
2. Equal distance in terms of time between highs
3. Volume decreases on the second top

Double tops have an enormous amount of "cause" or breakout potential as the price of the stock has moved back in forth within a defined range. So, when the stock finally breaks out, there is an expansion in volume and price movement. Breakouts can occur to both the upside and downside. If you enter a breakout of a double top chart pattern, you will want to keep a close stop above/below the support and resistance level.
Double Top Price Target

When a stock breaks out of a double top formation, the price target is the range of the formation added to the breakout level.

Double Top Breakout

Double Top Breakdown

Raff Regression Channel - Tech. Indicator

2010-01-12T11:25:00.004+07:00

Developed by Gilbert Raff, the regression channel is a line study that plots directly on the price chart. The Regression Channel provides a precise quantitative way to define a price trend and its boundaries.

The Regression Channel is constructed by plotting two parallel, equidistant lines above and below a Linear Regression trend line. The distance between the channel lines to the regression line is the greatest distance that any one high or low price is from the regression line. Raff regression Channels contain price movement, with the bottom channel line providing support and the top channel line providing resistance. Prices may extend outside of the channel for a short period of time. However, if prices remain outside the channel for a long period of time, a reversal in trend may be imminent.

Interpretation

Raff Regression Channels contain price movement, with the bottom channel line providing support and the top channel line providing resistance. Prices may extend outside of the channel for a short period of time. However, if prices remain outside the channel for a long period of time, a reversal in trend may be imminent.

Usage

This method finds the maximum distance between any closing price and the regression line. This distance is then used as the basis for the channels. The channels are drawn parallel to the regression line, at a distance above and below the line equal to the
maximum distance computed. The upper channel is then used for support, while the lower channel is used for resistance.

For information on other channel-based line studies, see Envelopes, Standard Deviation Channels, Standard Error Bands, and Standard Error Channels.

InstaForex News Update : 30 % Bonus from InstaForex for all deposits

2010-01-09T07:38:00.003+07:00

In the new started year InstaForex Company has prepared a fascinating offer for its present and potential clients which will be valid during the whole 2010.

To all accounts which will be opened from 00:00 of January 3rd, 2010 to all future deposits will be added a bonus amounting to 30%. . Take a notice that previous bonus size for deposits was reaching just 25%.
In such a way, if you make a deposit, for example, in the amount of 100 USD - InstaForex Company gives you more 30 USD.
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Kagi Charts ; Technical analysis

2010-01-06T09:28:00.006+07:00

Kagi Trading Charts - Technical Analysis Charting Method
Kagi charts display the price action for a security. This method was developed by the Japanese in the late 1800s. Kagi charts are similar to point and figure charts in that it is not time based, but is dependent upon the price movement of the security to print a new line on the chart.

How to Construct a Kagi Chart
Kagi charts are a combination of vertical and horizontal lines. Each vertical line represents the total price movement from low to peak before a counter move occurs. As each previous high or low is exceeded a thick black line is drawn to indicate that dominant trend is still in play. While all counter moves are indicated by a thin colored line.

Kagi Charts vs. Candlesticks
Traders that use kagi charts are looking to take a lot of "noise" out of the market. Unlike candlesticks indicator which display the open, high, low and close for each period, the kagi chart will only print if a previous swing high or low is exceeded. So, if a stock is trending in a parabolic state, there will not be enough of a counter move to print any new lines on the kagi chart. All the trader will see in this example is one solid line.

Trading with Kagi Charts
Trading with kagi charts may sounds simple because a trader is only paying attention to the major price swings, but not each minor swing point. However, whenever a trader removes information from the chart, it can leave one in the dark. There is a delicate balance between too much information (gann lines, 10 indicators, etc.) on a chart, but It is important to see how many times a security may test a given level over a period of time. Since the kagi chart only displays the price and not time, there is no way for a trader to know the amount of "strength" at a given resistance level within a given period of time.

The most common method for trading with kagi charts is to wait for a thin line, which indicates a pullback in the security. Then place a buy order above the most recent think kagi line, representing the last swing high. This basic method allows a trend trader to stay in the direction of the primary trend.

Kagi Chart Example :

Pennant Chart Definition

2010-01-04T02:23:00.004+07:00

A pennant chart formation occurs after a security experiences an impulsive up or down move. After such a strong run-up, the security will take a "breather" before continuing in the direction of the primary trend. This breather resembles a symmetrical triangle, where two trendlines converge to a point, hence the term "pennant". While inside the pennant, there are a number of minor price fluctuations that occur on light volume. After this quiet period, the security will eventually erupt out of this consolidation zone with an increase in price and volume. The breakout from the pennant chart pattern will often times be equivalent to the impulsive move prior to entering the symmetrical triangle. The pennant chart formation is one of the more reliable continuation patterns.

Pennant Chart Example

FAPTurbo Team ; New Statement...Trading Result

2009-12-30T18:40:00.008+07:00

We would like to take this opportunity to wish all of our valued
and faithful FAPT customers a Happy New Years and salutations to
another opportunity to start afresh in 2010.

Whether you make OR keep New Years resolutions, the start of a
New Year is always a reminder that change has occurred and once again we are
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hope and possibilities thus allowing us to earn it again.

The FAPT opportunity introduced over a year ago never goes out
Of style and continues to be the most popular Expert Advisor to
date, which serves as a reminder that we control our futures and
in many ways also our pasts through our reflections.

As always we will continue to churn out free updates and
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Last version fapturbo49 has already shown great results. Here is
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Please invite it in ! Not only are we concerned for your financial
Future but we wish you health and happiness for you and your families
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Happy New Year - FAPTurbo Team

Forex Robot : FapTurbo Review

2009-12-21T23:32:00.008+07:00

Read this Before You Buy FapTurbo, Discover the Truth Behind the Hype!
FAPTurbo is not a stranger to most Forex traders. It is one of the most searched EA (Expert Advisor) in Forex trading.

FAPTurbo now has over 40,000 users worldwide.

FAPTurbo will benefit the beginners because even if they do not have years of experience they will still be able to make money with the help of this EA.

The FAPTurbo will also benefit experienced traders as the variables are adjustable to make Fapturbo better and stronger.
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FAPTurbo is a powerful combination of 2 strategies:

* Short Term Scalping Strategy
* Long Term Advanced FAP strategy

Both strategies are built inside one FAPTurbo EA and can be switched on and off easily using parameter in FAPTurbo settings.

Each strategy uses its own designed timeframe and currencies. Only 1 strategy can work on one Chart at the same time but you can open several charts to run different strategies within one trading account.

Well, there are over 300 EAs in the market. Some are good but most are bad! I don’t claim FAPTurbo is the best among the other 300 EAs in the market but it is definitely one of the top rated and popular one.

Here are the advantages of FAPTurbo versus others…

* It is profitable! Their “Short Term Scalping Strategy” works extremely well for EURGBP and EURCHF.

* They have a very active support forum that provide you with up-to-date information. Furthermore, you will find this platform extremely helpful to share trading experience among other users in the world. No other Forex Robots that I know provides such a platform for their users.

* The developers release updates regularly to make sure FAPTURBO is always up-to-date to accomodate modern market conditions. All updates are FREE for members!

* The EAs variables are adjustable for the most seasoned trader to make FAPTurbo better and stronger!

* With only a small fees, you can join the Weekly Indepth Mentoring Sessions.The developers will give you updated tricks, hints and tips which have made our life so much easier and will ensure you gain a deeper understanding of FAPTurbo, how it works, and more importantly how you can make it work for you.

* It come with 60-day Money Back Guarantee. You can ask for refund within 60 days if you find it not profitable.

MY LITTLE ADVICE…
You should never blindly get an EA and expect it to do wonders for you without understanding the strengths and limitations of the EA. You should always study an EA and know what system it’s using and what strategies it’s taking, after all what is EA but an automated trading system based on certain rules and criteria? It is just like how you trade manually based on certain rules and criteria.

If you have not do so, I suggest you find out the strong and weak points of below FAPTurbo strategies and decide by yourself whether it suits your trading style.

* Short Term Scalping Strategy
* Long Term Advanced FAP strategy

Fapexpertguide Like all commercial FOREX robots sold to the general masses, the default settings are set to work well for the lowest common denominator. In order to optimize profits and lower risk you’re going to want to tweak those settings to optimize FAP Turbo. I strongly suggest you to get a copy of FAP Turbo Expert Guide.

Choosing a Forex broker is an important decision. It directly affects your bottom line – how much you will gain or lose from the Forex market.

You may also want to consider VPS hosting if you are serious about automated Forex trading.

In conclusion, my stand towards EA is on a neutral corner. There’s no sure fire way to financial freedom. You can make it your way, and the manual traders can do it their way. FAPTurbo will be benefitial when come to automate your Forex trading with flexibility of changing parameter to suit your trading style.

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Forex Technical Indicator : Standard Deviation

2009-12-19T20:45:00.003+07:00

Standard Deviation — value of the market volatility measurement. This indicator describes the range of price fluctuations relative to simple moving average. So, if the value of this indicator is high, the market is volatile, and prices of bars are rather spread relative to the moving average. If the indicator value is low, the market can described as having a low volatility, and prices of bars are rather close to the moving average.

Normally, this indicator is used as a constituent of other indicators. Thus, when calculating Bollinger Bands, one has to add the symbol standard deviation value to its moving average.

Calculation
StdDev = SQRT (SUM (CLOSE - SMA (CLOSE, N), N)^2)/N

Where:
SQRT — square root;
SUM (..., N) — sum within N periods;
SMA (..., N) — simple moving average having the period of N;
N — calculation period.

Forex Trading System - On Balance Volume

2009-12-16T09:47:00.001+07:00

On Balance Volume (OBV) Interpretation:
Once a trend in on balance volume (OBV) has been established it remains in force until it is broken.
OBV breakouts usually preceed price breakouts.
Buy long on a positive OBV breakout and sell short on a negative OBV breakout.

On Balance Volume Technical Indicator (OBV) is a momentum technical indicator that relates volume to price change. The indicator, which Joseph Granville came up with, is pretty simple. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. When the security closes lower than the previous close, all of the day’s volume is considered down-volume.

The basic assumption, regarding On Balance Volume analysis, is that OBV changes precede price changes. The theory is that smart money can be seen flowing into the security by a rising OBV. When the public then moves into the security, both the security and the On Balance Volume will surge ahead.

If the security’s price movement precedes OBV movement, a "non-confirmation" has occurred. Non-confirmations can occur at bull market tops (when the security rises without, or before, the OBV) or at bear market bottoms (when the security falls without, or before, the On Balance Volume Technical Indicator).

The OBV is in a rising trend when each new peak is higher than the previous peak and each new trough is higher than the previous trough. Likewise, the On Balance Volume is in a falling trend when each successive peak is lower than the previous peak and each successive trough is lower than the previous trough. When the OBV is moving sideways and is not making successive highs and lows, it is in a doubtful trend.

Once a trend is established, it remains in force until it is broken. There are two ways in which the On Balance Volume trend can be broken. The first occurs when the trend changes from a rising trend to a falling trend, or from a falling trend to a rising trend.

The second way the OBV trend can be broken is if the trend changes to a doubtful trend and remains doubtful for more than three days. Thus, if the security changes from a rising trend to a doubtful trend and remains doubtful for only two days before changing back to a rising trend, the On Balance Volume is considered to have always been in a rising trend.

When the OBV changes to a rising or falling trend, a "breakout" has occurred. Since OBV breakouts normally precede price breakouts, investors should buy long on On Balance Volume upside breakouts. Likewise, investors should sell short when the OBV makes a downside breakout. Positions should be held until the trend changes.
Calculation

If today’s close is greater than yesterday’s close then: OBV(i) = OBV(i-1)+VOLUME(i)

If today’s close is less than yesterday’s close then: OBV(i) = OBV(i-1)-VOLUME(i)

If today’s close is equal to yesterday’s close then: OBV(i) = OBV(i-1)

Where:
OBV(i) — is the indicator value of the current period;
OBV(i-1) — is the indicator value of the previous period;
VOLUME(i) — is the volume of the current bar.

Forex technical indicator

2009-12-08T11:08:00.002+07:00

Forex technical Indicator's ; A Technical Indicator is a series of data points used to predict movements in currencies.
The most popular technical indicators of the Forex:
1- Relative Strength Index (RSI): This index is a popular indicator of the Forex (FX) market. The RSI measures the ratio of up-moves to down-moves and normalises the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater then the instrument is seen as overbought (a situation whereby prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation whereby prices have fallen more than the market expectations).

2- Stochastic Oscillator: This is used to indicate overbought/oversold conditions on a scale 0-100%. The indicator is based on the observation that in a b up trend, closing prices for periods tend to concentrate in the higher part of the period’s range. Conversely, as prices fall in a b down trend, closing prices tend to be near to the extreme low of the period range.

3- Moving Average Convergence Divergence (MACD): This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in trend is likely.

4- Number theory:

a- Fibonacci numbers: The Fibinacci number sequence (1,1,2,3,5,8,13,21,34…..) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number. (used with the Elliott wave theory, see hereunder) .

b- Gann numbers: Gann was a stock and a commodity trader working in the 50’s who reputedly made over $50Mio in the markets. He made his fortune using methods which he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann’s methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.

5- Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five wave advance followed by a three wave decline.

6- Gaps: Gaps are spaces left on the bar chart where no trading has taken place.

* An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day.
* A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness.
* A breakaway gap is a price gap that forms on the completion of an important price pattern. It signals usually the beginning of an important price move.
* A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap.
* A exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.

7- Trends: A trend refers to the direction of prices. Rising peaks and troughs constitute an uptrend; falling peaks and troughs constitute a downtrend, that determine the steepness of the current trend. The breaking of a trendline usually signals a trend reversal. A trading range is characterized by horizontal peaks and troughs. Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy particularly in futures trading or a market with a b up or down trend. For simple moving averages, the price is averaged over a number of days. On each successive day, the oldest price drops out of the average and is replaced by the current price- hence the average moves daily. Exponential and weighted moving averages use the same technique but weight the figures-least weight to the oldest price, most to the current.

Forex ; Parabolic Sar Stop and Reverse

2009-12-06T07:59:00.004+07:00

Forex Technical indicators: Parabolic SAR - Stop & Reverse
Parabolic SAR from Metaquotes is a very useful technical indicator during trending periods. However, it shouldn’t be used if there is no trending period. Trend periods exist approximately 30% of the time.

In trending markets it provides useful entry and exit points. The name parabolic comes from its shape which is like a parabola. SAR lets our investor follow the dots in an upward or downward trend until SAR is reached and then the trend reverses.

SAR’s stop loss is calculated for each day via the previous days data. The first entry point can be seen when the latest high price has been broken – now the SAR is placed at the most recent low price.

Now as the price starts to rise, the dots on the chart rise as well – starting slowly and then going on with increasing speed in the direction of the trend.

Before you consider using SAR, make sure you actually are working with a trending market as otherwise you’re dead. To do that you can either use a trend indicator or stop trading SAR once you have been whipsawed twice in a row.

To get a trade signal you’ll need to wait until price bars and stop levels intersect. You should go long when price meets Parabolic SAR stop level, while short. And vice versa. Note that Parabolic SAR is more popular for setting stops than for establishing direction or trend. First wait for the establishment of a trend and then trade in the direction of a trend with Parabolic SAR. If the trend is up, buy when the indicator goes below the price. If the trend is down, sell when the indicator goes above the price.

You should ignore signals when the price is ranging or basically when you don’t see any major movements. Exit when price activates the SAR stop. Do not go short when moving average is going upwards. Go long when price crosses back above the top and MA is still upwards.

I have been searching, but so far I haven’t been able to find the exact formula on how the Parabolic SAR is constructed. But there are two variables – step and maximum step. The sensitivity of the indicator depends on the step size – the higher the more sensitive. You shouldn’t set it too high as then you won’t get a too good reading. The maximum step controls the adjustment of the SAR within the price movements. The lower the maximum step is set, the further the trailing stop will be from the price. Good values for the steps are – step=.02 and maximum step .20.

Example Parapolic SAR

PS: Parabolic SARS can be used in conjunction with the Williams %R indicator as they tend to function similar way on certain trends and signals. Also HLOC or candlesticks charts could be used to study SAR a bit better as these include days high and low prices as well.

PS2: I finally managed to find the calculation for Parabolic SAR.

SAR(i) = SAR(i-1)+ACCELERATION*(EPRICE(i-1)-SAR(i-1))

Where:
SAR(i-1) — is the value of the indicator on the previous bar;
ACCELERATION — is the acceleration factor;
EPRICE(i-1) — is the highest (lowest) price for the previous period (EPRICE=HIGH for long positions and EPRICE=LOW for short positions).

Parabolic Sar Stop and Reverse

2009-12-06T07:26:00.005+07:00

Forex Trading Strategy - GMT Forex Strategy

2009-11-28T15:44:00.004+07:00

The advanced trading strategies rely not only on chart reading and number crunching but also on the order flows analysis. This is my most favorite strategy and it is based on a simple fact - order flows related to position sizing. Most of the major US economic data are released at 1:30 PM GMT which is in the beginning of the US trading. These data could cause big price moves and make the environment more risky. That is why a lot of market players prefer to have smaller positions before the real action begins and they usually close part of them. This happens between 12:30 and 1:30 PM GMT. This is an advanced trading strategy and I will share only the general principles here. More information and real examples you can find in our Blog. The rules for opening a position are as follows:
Trading Rules

1. The currency pair should be trending during the European morning trading. Usually this trend is in the direction of the breakout of the Asian trend after 8 AM London time. The strategy could be used also in ranging markets but the success rate will be lower.
2. Around 12:30 GMT (it is better at least a few minutes after) the market nears support (if the trend was down) or resistance level (if the trend was up). If the currency pair breaks 10-15 pips beyond the level we should avoid the position.
3. After the test of the support or resistance level we open a position in the opposite direction of the morning trend. A lot of filters could be used and I recommend developing and clarifying your own rules. You can find a lot of advice on this strategy and real examples in our Blog.
4. After we open a position we use Stop and Limit according to our money management rules.

related article e-book - free download BigBen Strategy

Forex Indicator ; Williams %R Strategy

2009-11-28T15:35:00.006+07:00

Williams %R - Balance of Power Strategy
This indicator was developed by Larry Williams and it is a version of the Stochastic Oscillator. Its values are plotted on an inverted scale from 0 to -100. Williams %R is efficient in trending markets.

There are two interpretations of the signals:

* Values below -80 - -90 indicate an oversold market, while values above -10 - -20 show that the market is overbought (remember that the scale is inverted).

The other logic is opposite:

* When the value of %R is higher than -10 - -20 the market is in a strong uptrend and respectively when %R is lower than -80 - -90 there is a strong downtrend.

A Moving Average is used to confirm the trend direction.

In this example strategy we will exit the market when the Balance of Power indicator crosses the zero line in the position's direction. The position closing price will be Bar Closing.

We will use the following opening rules:
Rules for a long position

* Price is above the 50-period Moving Average (uptrend) and Williams %R goes above -10 (second signal for a strong uptrend0. The bar when this happens is marked as Signal bar.
* Long position is initiated when the price breaks above the high of the Signal bar.
* After opening a position we monitor Balance of Power indicator. When it crosses the zero line upward we close the position at the bar closing price.
* Adding: if the price is still higher than MA(50) and %R is above -10 line, we add to a long position at the previous bar high.

Rules for a short position

* Price is below the 50-period Moving Average (downtrend) and Williams %R goes below -90 line. The bar when this happens is marked as Signal bar.
* Short position is initiated when the price breaks below the low of the Signal bar.
* The exit is at the bar closing price, but only when BoP crosses the zero line downward.
* Adding: when the entry conditions are satisfied we sell at the previous low.

Indicator chart

--- by ; Svetlin Minev ------

Forex Trading Strategies

2009-11-18T19:58:00.004+07:00

Forex Tech.Strategies - 3 Bar Buy / Low Set Up
This is a classic swing trading strategy which is trying to catch the next immediate price movement in the direction of the prevailing trend. Three consecutive lower highs in an uptrend and higher lows in a downtrend show that the correction is exhausted and new move in the direction of the trend could be expected. The following signals are generated:

Rules for long position

1. The market is in an uptrend. This could be identified by the fact that the price is above the 50-period Moving Average; MACD or Momentum are above 0; or ADX is above 25 an +DI is above -DI.
2. After a correction of the up move the last three bars have lower highs. The last of these three bars is marked as Signal bar.
3. Long position is initiated when the price breaks 2-3 pips above the high of the Signal bar.
4. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.
5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows that the uptrend is over.

Rules for short position

1. The market is in an downtrend. This could be identified by the fact that the price is below the 50-period Moving Average; MACD or Momentum are below 0; or ADX is above 25 an -DI is above +DI.
2. After a correction of the down move the last three bars have higher lows. The last of these three bars is marked as Signal bar.
3. Short position is initiated when the price breaks 2-3 pips below the low of the Signal bar.
4. After the position is open an initial stop loss order is placed 2-3 pips above the high of the signal bar.
5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows that the downtrend is over.

---- by ; Svetlin Minev / M. Popov -----

Forex Trading Strategy

2009-11-14T14:09:00.007+07:00

Forex - Trend Line Trading Strategy
I have been demoing a simple trading strategy,
I am calling this a Trend Line Trading Strategy and it is based on:

Following the trend.
Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here. Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend?
It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here. KISS… KEEP IT SIMPLE & SIMPLE.

TIMEFRAMES:
Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins

INDICATOR:
I use only 1 Metatrader4 indicator called Swing ZZ / ZigZag It is freely available in the net. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy.
So lets get started shall we? I call this trendline trading strategy because it involves drawing trend lines using the swing highs and lows of the Swing ZZ indicator.

SHORT ENTRY RULES:
(a) look at the timeframe you wish to use and identify the main trend. Get the big picture first, that is very important.
For me, when I want to trade on the hourly chart, I first check the daily chart and also like to see what is happening in the 4hr chart as well to see if I can spot an obvious trend or channel or congestion happening in the daily and the
4hour charts. I stay out if there is congestion until breakout of the congestion happens and a trend is established. I draw trendlines in the daily or on the 4rhly charts chart then switch to the 1hr timeframe. I identify trends in the hourly and draw trendline(s) as well.
(b) I place a sell stop order, at least 5 – 10 pips below the LOW of the candle that touches or intersects the trendline. The trendline can be the daily, 4hrly or the 1hr trendline. You must place your order when that candle closes. Note you must wait for price to approach a trendline or very near to the trendline before you place your sell stop order.
(c) I prefer to place my stop loss at least 5 pips above the most recent swing high. You should set your stop loss according to your money management calculations and risk tolerance.
(d) I set my profit target just WITHIN the level of previous swing low.
(e) Trade management: as trade moves in my favour, I move my stop loss to at least 5 pips ABOVE each lower subsequent peaks (lower swing highs).
LONG ENTRY RULES:
Just do the exact opposite of short entry.
(1) Set your buy stop order 5 pips ABOVE the high of the candle that intersects the trendline when that candle CLOSES.
(2) I set my stop loss just below the recent low.
(3) I place my profit target WITHIN the level of the previous high.
(4) As trade moves in my favour I move stop loss to at least 5 pips just UNDER each higher subsequent higher swing lows that form.

SHORT ENTRY EXAMPLE:
The attached is 4hr USD/JPY chart showing short trades that could have been taken and would have been very profitable using this strategy.

LONG ENTRY EXAMPLE:
Attached is USD/CAD daily chart and possible trade entries are shown to give you a visual understanding of how to identify potential trade setup and take them.

You can combined this system w/ superwoodieCCI indicator

--- by; Myroon ------

Forex Strategy - simple indicator

2009-11-07T20:08:00.006+07:00

Simple indicators forex strategy works well on the range of M15, the currency pair can be any; On the schedule for the chosen currency pair, you must install the indicators for forex trading terminal Metatrader 4:

1) Indicator - Heikin ashi
2) Exponential Moving Average - EMA (5), close - the color blue
2) Exponential Moving Average - EMA (8), open - the color green
3) Indicator - Dinapoli stoch (8,3,3)
4) Indicator - Momentum VT (10)
5) Indicator - QQE Alert v3.

All the necessary indicators, together with a template for MT4 can be downloaded at the end of this strategy forex.

Entering the market for BUY - if all the following conditions:

1) Exponential Moving Average EMA (5) and EMA (8) crossed up.
2) Indicator Dinapoli stochastic just crossed paths up (blue line crossed the red bottom-up)
3) Indicator MomentumVT (10) is above its zero level.
4) Indicator QQE arrow drawn up (possibly even a few bars earlier).
5) bar is painted in white.

Entering the market needs to produce the next candle after all conditions to the transaction.

Closure of a trading position - as the only indicator QQE alert and moving averages EMA (5) and EMA (8) are fed back trading signals. But since they rarely ring the trading bell at the same time, then close the deal, only in cases where 2, these signals were received.

---- by ; ForexStrategies ------

Forex ; Keltner Channel Indicator

2009-11-04T08:38:00.006+07:00

Keltner channel is a popular indicator for analyzing trends and for finding trend changes. The indicator was introduced by Chester W. Keltner in 1960

Definition:
The Keltner Channel has two bands drawn above and below an exponential moving average, and is based on Average True Range.

Average True Range is measured by taking a moving average of the greatest value of (a) the distance between this period's high & low, (b) the distance from last period's close to this period's high or (c) the distance from last period's close to this period's low.

Peaks in ATR indicate potential trend reversals after panic selloffs or frantic buying, valleys can indicate consolidations.

The Keltner Channel uses the ATR calculation as values for the bands.

Formula:
The formula for the upper band of the Keltner Channel is to take twice the value of a 10-period ATR and add it to a 20-period exponential moving average. The formula for the lower band subtracts the same value from the 20-period EMA.

Interpretation:
The Keltner Channel is typically used to ride upward and downward volatility. When the price spikes above the upper band it can be considered a buy signal until the close for the period evaluated falls below the upper band. Conversely, when the price dips below the lower band it can be considered a sell signal.

Because the Keltner Channel is meant to take advantage of volatility swings and is a trend following indicator, it typically does not work well in sideways markets but works better in taking advantage of breakouts within in an estabished trend.

As with all band indicators, most traders looks for confirmation from other technical inidcators.

Forex trading can extend debt help and make you debt free

2009-10-28T01:57:00.007+07:00

Your fight against debt is half won if you can identify the cause of your financial instability and if you know what debt help option will set it right. This is because if you are not aware of the reason that is making you fall behind on payments, you cannot strike in dark. It will be an aimless battle against debt. This is because you won’t know what to fight against.

So, as soon as you sense an approaching financial trouble, take it in your stride. Have you ever wondered how forex trading and debt are related? This is also true in case of stocks. Whether you have included stocks or forex trading in your investment portfolio, your investments can serve as an effective debt help option. Let’s see how.

When you are in debt, you tend to explore all possible ways to get out of debt. You will undoubtedly get to know the debt solution that will help you to get out of debt. This is because availing a debt relief option is now a financial option that every household is aware of. And it won’t be wrong to say that the debt help clinics are doing brisk business and helping many debtors get out of debt in the process. But beware of scam artists. They are operating in the debt help industry too.

When you enroll for one of the debt relief programs, you are required to make payments to the creditor. So, whether it is a debt consolidation program, debt settlement program, debt management or DMP, the amount you earn from forex trading can make your debt payments affordable.

Forex trading offers a good way of investing your hard earned cash. And if you have experience in trading currencies, it is still better. However, even if you don’t have sound knowledge in trading currencies, you can always seek professional assistance. There are many forex brokers that can help you in this regard.

Make sure if you have some extra cash, you can use the same for building an emergency fund. It is important to have an emergency fund that you can fall back upon when you are facing a financial crisis. At least you can avoid using your plastic money for making payments for your grocery and utility bills.

---- by: Robin Williams -------

Forex Technical Indicator - Momentum

2009-10-28T01:31:00.007+07:00

"Momentum" Technical Indicator
An Indicator which measures amount of the financial instrument price change for a certain period is called the Momentum Technical Indicator. There are two main methods of the Momentum indicator usage:

An Indicator which measures amount of the financial instrument price change for a certain period is called the Momentum Technical Indicator. There are two main methods of the Momentum indicator usage:

As a trend-following oscillator, similarly to Moving Average Convergence/Divergence MACD. A signal to buy occurs when the Momentum indicator forms a trough and starts its growth; a signal to buy occurs when the Momentum indicator reaches its peak and turns down. For more exact calculation of the indicator`s reverse its short moving average is used.

The Continuation of the current tendency is determined if the Momentum indicator has either very high or very lower values. If the indicator reaches high values and then turns down further prices growth is expected. But, in any case, do not hurry to open (close) position until the prices prove the indicator`s signal.

As a lending indicator. This method is based on the supposition that the final phase of the uptrend are usually accompanied by the high increase of prices (because everybody believes in it continuation) and completion of the bullish market by the rapid fall of the prices (because everybody tries to leave the market).

When the market is closed to the top it is accompanied by the rapid break of the Momentum indicator. Then the indicator starts to fall while the prices continues to rise and move horizontally. In the market bottom the Momentum falls suddenly and then turns up long before the prices start to rise. In both cases divergences occur between the indicator and price

Calculation

Momentum is calculated as a ratio of today`s price to the price several (N) periods ago.

MOMENTUM = CLOSE(i)/CLOSE(i-N)*100

Where:

CLOSE(i) - is the closing price of the current bar;

CLOSE(i-N) - is the closing bar price N periods ago.

Forex Scalping Strategy

2009-10-25T11:33:00.006+07:00

Pattern Scalping Strategy..Part IV - Flags Pattern...
This article is part of our guide on how to use scalping technique’s to trade forex
Many scalpers prefer to exploit range patterns as they present quiet, tame conditions where various strategies can be utilizied without the danger of large losses which would arise in conditions of high volatility. Scalpers who thrive in these conditions have no great expectations from individual trades, and are perfectly content with unexciting, slow markets where “nothing is going on”, from the point of view of a trend follower. In spite of the brief lifetime, and small profit of individual trades, great gains are realized as profits of several hours are combined at the end of the trading day.

In this fifteen minute chart of the USDCHF pair we observe a strong hourly trend only briefly interrupted by the highlighted flags. Although the formations are not perfect, they are perfect as continuation patterns, and present quite, subdued periods where the scalper can test his skills. Of the three flags highlighted in this chart, the first and the third are the tamest, and the easiest to exploit. In both of these the price moves up and down in a simple range, and doesn’t possess directionality.

How does the trader exploit this situation? In essence we’ll regard the flags as small range patterns the upper and lower bound of which can be used as trigger points telling us to reverse the direction of our trade. When the price rises and approaches the upper edge of the flag, we won’t trade, but wait until it is reversed and a sell order is possible (we don’t want to enter a sell order immediately because of the possibility of a breakout). After that we’ll enter and exit small and quick sell orders trying to exploit the established range pattern. Conversely, when the price falls and touches the lower bound of the flag pattern, we’ll wait until it begins to rise again, and then we’ll scalp the market with buy orders.

It is quite simple and easy to scalp the market when there are flags appearing. But flags are very strong continuation patterns, and we must be careful not to get caught in the breakout when the flag pattern dissipates and gives way to the momentum of the main trend.

Triangles can be traded in the same manner as well, and any consolidation pattern can be used for scalping within the range established. As we mentioned before, the rules of range trading can be applied, along with the appropriate strategies, while using the necessary risk controls inside the preferred brief time frame of scalpers.

---- by; forextraders -----

Forex Scalping Strategy

2009-10-24T12:18:00.004+07:00

Pattern Scalping Strategy..Part III - Range Patterns...
This article is part of our guide on how to use scalping technique’s to trade forex
Most scalpers try to benefit from price patterns in trading the markets.
A scalper trading a range pattern will try to identify the time periods and price patterns where activity is most subdued, and will exploit them for profit. We have already discussed some of the general concepts in trading ranges, here we’ll try to apply them in greater detail.

Price charts are similar to fractals. They are self-similar at multiple time periods, with a price range at 30 minutes sometimes accompanied by a trend on a 30 second chart. While trading ranges scalpers must keep both the hourly, and the minutely price events in mind. We’ll use hourly charts to ensure that overall activity in the market is subdued, while using the short term price action to identify and trade profitable periods.

The hourly chart of the USDCHF pair presents an interesting scenario for scalpers. A large hourly range lasting for a number of days is coupled to fairly strong directional movements requiring some trend following skills for successful exploitation.

At this stage, observing the price action in the chart, we must ask ourselves the question: can we determine the severity of short-term volatility by examining charts which show long term activity? The answer is no. Although we can determine the ultimate direction of short term price movements by examining long term charts, volatility on an hourly chart, for example, does not need to be duplicated on a short term chart exactly. The price may move 100-pips in the course of an hour, and the chart would show a large green candlestick, but all that large movement could have happened in the last ten minutes of trading, with the previous fifty minutes presenting choppy, and boring conditions. In other words, the scalper must concentrate on the time period before him, especially if he is aiming to exploit random price movements that go nowhere (as in range trading), in contrast to scalping a strong directional trend. In the latter, the perspective provided by long term charts may be helpful, but in range scalping utmost attention must be devoted to the 1-minute, 5-minute graph which is being traded.

In the graph above the price is confined between 1.0654, and 1.0741. The three red arrows show us the opportunities where we can be confident that the range will hold: when the resistance line is tested for the third time, we will consider this an opportunity for sell-side scalping. When, at around 27th July 5 am the price rebounds from the support line for a second time, and later for a third, we’ll regard the market conditions as being ideal for establishing long positions repeatedly.

Forex Scalping Strategy

2009-10-22T11:10:00.009+07:00

Pattern Scalping Strategy..Part 2 - Technical Breakouts...
This article is part of our guide on how to use scalping technique’s to trade forex. What we term a technical breakout is the case where a range breaks down without any obvious news catalyst. News are released continuously all over the world during the trading day, and although it is often possible to tie a piece of the price action arbitrarily to a piece of news being released somewhere in the world, it is not always practical to identify what causes what in the chaotic trading environment with any certainty or exactitude. These seemingly inexplicable, sudden and difficult to predict breakouts will be termed technical breakouts in this text.

Scalping this kind of breakout requires a lot more conservatism in comparison to the scalping of the usual news breakout. There is very little clarity as to what is causing what, and a market that is up may soon reverse and go down with little or no warning. To avoid being caught up in the chaos of such conditions, it is a good idea to use even smaller trade sizes, sensible stop-loss orders,

In this chart we see the hourly movements of the USDJPY pair confined between 94.02 and 94.71. The highlighted area shows the region we would like to trade. Since the established range rests between support and resistance levels which are tested only twice, we would not have had the opportunity to trade the range itself developing on 28-29 July for profit, using scalping or any other method. On the other hand, we are ready to do some scalping in order to exploit the breakout which occurs at around 7 am on 29th July.

The volatile nature of breakout is demonstrated by the green candle next to the small red arrow on the chart where we see observe the closing price of the bar only slightly above the resistance line displayed. Scalping is suitable conditions such as these because scalpers do not need to think long and hard about the ultimate direction of the price. In the timeframe of a one or two hours, five, ten minutes, the price action is more or less random, and it is not very sensible to try to seek logical explanations for it. Scalpers can avoid doing so, and that is their advantage in breakout scenarios, and similar sudden and unpredictable markets.

While scalping this breakout, we’d use a chart with a shorter term, and not the hourly graph which we see above. Fortunately, the fractal nature of price charts allows us to trade a 5-minute chart in a way the same way that we trade a 5-month chart; the scalper only needs to apply the general rules of technical trading to the shorter time frame. The key issue is making sure that you’re on board the trend, or in harmony with the phase of the range pattern (up, or down) while scalping.

--- by; forextraders -----

Forex Scalping Strategy

2009-10-21T11:00:00.006+07:00

Pattern Scalping Strategy.. Part 1 - News Breakouts...
This article is part of our guide on how to use scalping tequniques to trade forex
Most scalpers try to benefit from price patterns in trading the markets. Those who like calmer markets choose to exploit formations like triangles and flags, while those who prefer trading the news tend to be active during breakouts. There’s no single type of market where scalping can be applied to best benefit, because there are many different kinds of scalpers. But there are some technical patterns which offer their greatest benefits to a scalping strategy, and those are the patterns which we’ll examine here.

First we’ll take a look at scalping during breakouts, and then study ranges.

News Breakouts

The most typical and significant breakouts observed on any trading day are those associated with important news releases, regardless of their nature. Volatility maybe caused by an unexpected government announcement, at other times a surprising result from a statistical release, and sometimes a mundane piece of data which the markets choose to interpret in an agitated manner. The characteristic of these events is a rapid rise in volatility: a strong initial movement which then has aftershocks, so to speak, lasting over hours and generating swings and fluctuations which are then exploited by scalpers. Scalping in the aftermath of news releases is different from scalping in stale, range bound conditions with respect to its stop-loss requirement, the average life of a trade, and the necessary risk controls.

Although this kind of scalping has some resemblance to fundamental trading, in fact it is a purely technical approach, and has little to do with the real nature or significance of the news or data releases. It is not possible to fully evaluate the meaning of a piece of economic data in the ten minutes where market reaction is most intense, and as such, there is no point in giving fundamental meanings to the market’s behavior during the same time period. This is especially the case when we consider that news releases are revised frequently, and sometimes drastically following the initial release.

In the above graph we have the hourly EURUSD chart and the highlighted region shows the immediate price reaction to the news release at 8 am, followed by its subsequent legs. As soon as the important piece of news was released the market generated a rapidly increasing momentum which never gave traders a chance to look back. The maximum value around 1.4290 was also the opening price of the hourly bar, and it was never revisited. It is easy to conjecture that soon after the release, and in the period immediately preceding it, spreads had widened significantly, and opportunities for scalping were limited. Yet, right after the news release liquidity came gushing back to the market, as traders hastened to readjust their positions. Favorable conditions for scalping would exist within about ten minutes after the news release.

The most important rule while exploiting a news breakout is to stay away from the market during the short period around the news release itself. Unless one is using automated tools for scalping, this brief period is too agitated, and chaotic to allow informed decisions. Worse yet, in the short term the brief but powerful widening of spreads makes technical planning an insurmountable task at times. Instead, a successful scalper will use this brief period to identify the possible direction of the market before entering positions in accordance.

In the example above, we’d be able to scalp the market for a four-hour long period, during the four red candles in the highlighted area. The best way to ensure against suffering losses in the volatility of this period is using a reasonably tight stop with a somewhat looser take-profit order. In example, if we open a short position at around 1.4250 during the third hour, with a 3-pip spread cost to be paid to the broker, we’ll place our stop loss at 1.4255, while our take profit order will be at around 1.4240. This would ensure a 2:1 risk-reward ratio for the position being maintained.

It is a good idea to add a time-stop to a scalping position as well. What is a time stop? This is a kind of stop order which will close a position once a certain period of time is reached, regardless of the amount of profit or loss involved (although of course, both the potential loss or profit are less than what would be indicated by the stop-loss or take profit orders). For example, in our previous example, we had placed our stop loss at 1.4255, while our take profit order was at 1.4240. When we add the time-stop to our initial order at, say, 2 minutes, we’ll close and exit our position two minutes after its opening regardless of the profit or loss involved in the trade.

Why do we use the time stop? We had defined previously that as scalpers we don’t want to be exposed to the markets for a long time. But the market does not need to listen to our expectations, and might as well refuse to hit both the stop-loss and take-profit points for a long of period (at least in the terms of the scalper). The longer we expose ourselves to market moves, the greater the risk of a sudden, sharp movement against our expectations. In order to prevent being caught in such an indecisive, but also dangerous market, we use to time stop as a safety valve allowing us to bail out of our positions if things don’t turn out as we had initially expected.

Scalping of news breakouts can be very profitable, because all the ideal conditions required by scalpers are present. The swift, large, moves which occur in the brief timeframe during which scalpers are willing to expose themselves to the market allow the formulation of profitable forex scalping strategies.

--- by; ForexTraders ----

Forex Indicator ; Fractal and Alligator

2009-10-14T21:45:00.008+07:00

Fractals
All markets are characterized by the fact that on the most part the prices do not change too much, and only short periods of time (15–30 percent) account for trend changes. Most lucrative periods are usually the case when market prices change according to a certain trend.

A Fractal is one of five indicators of Bill Williams’ trading system, which allows to detect the bottom or the top.

Fractal Technical Indicator it is a series of at least five successive bars, with the highest HIGH in the middle, and two lower HIGHs on both sides. The reversing set is a series of at least five successive bars, with the lowest LOW in the middle, and two higher LOWs on both sides, which correlates to the sell fractal. The fractals are have High and Low values and are indicated with the up and down arrows.

The fractal needs to be filtrated with the use of Alligator. In other words, you should not close a buy transaction, if the fractal is lower than the Alligator’s Teeth, and you should not close a sell transaction, if the fractal is higher than the Alligator’s Teeth. After the fractal signal has been created and is in force, which is determined by its position beyond the Alligator’s Mouth, it remains a signal until it gets attacked, or until a more recent fractal signal emerges.

ALLIGATOR
"Most of the time the market remains stationary. Only for some 15–30% of time the market generates trends, and traders who are not located in the exchange itself derive most of their profits from the trends. My Grandfather used to repeat: "Even a blind chicken will find its corns, if it is always fed at the same time". We call the trade on the trend "a blind chicken market". It took us years, but we have produced an indicator, that lets us always keep our powder dry until we reach the blind chicken market" ( "Bill Williams" )

In principle, Alligator Technical Indicator is a combination of Balance Lines (Moving Averages) that use fractal geometry and nonlinear dynamics.

*

The blue line (Alligator’s Jaw) is the Balance Line for the timeframe that was used to build the chart (13-period Smoothed Moving Average, moved into the future by 8 bars);
*

The red line (Alligator’s Teeth) is the Balance Line for the value timeframe of one level lower (8-period Smoothed Moving Average, moved by 5 bars into the future);
*

The green line (Alligator’s Lips) is the Balance Line for the value timeframe, one more level lower (5-period Smoothed Moving Average, moved by 3 bars into the future).

Lips, Teeth and Jaw of the Alligator show the interaction of different time periods. As clear trends can be seen only 15 to 30 per cent of the time, it is essential to follow them and refrain from working on markets that fluctuate only within certain price periods.

When the Jaw, the Teeth and the Lips are closed or intertwined, it means the Alligator is going to sleep or is asleep already. As it sleeps, it gets hungrier and hungrier — the longer it will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its mouth and yawn. Then the smell of food comes to its nostrils: flesh of a bull or flesh of a bear, and the Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator starts to lose the interest to the food/price (Balance Lines join together) — this is the time to fix the profit.

Gator Oscillator — Gator
Gator Oscillator is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines (Smoothed Moving Averages). The top bar chart is the absolute difference between the values of the blue and the red lines. The bottom bar chart is the absolute difference between the values of the red line and the green line, but with the minus sign, as the bar chart is drawn top-down.

--- by ; metaquotes ------

Forex Trading Strategy

2009-10-12T08:32:00.004+07:00

Forex ; Tight stop timing with CCI
Today's challenge: how to exit a trade in time without leaving much on the table.
Today's system: reveals how to use CCI indicator to know where to pull the trigger and launch aggressive price chasing.

The idea is actually pretty simple, like all good ideas: we need to figure out when price gets "carried away" in a rapidly developing momentum and from that point we'll be looking to aggressively protect our gains while giving the market a chance to progress till it runs out of steam and inevitably reverses.

To illustrate the strategy I've chosen 15 min EURUSD and 30 CCI.
Please don't ask me, what would be the best settings for other pairs and other time frames, because like you, I don't know :). It can be figured out, however, quite easily with a few minutes work on any selected frame and pair. I encourage you to experiment! If you find a good combination, share it with other trader here..

Back to the point now:
On the screenshot below let's first take a look at Parabolic SAR (0.1, 0.1). In this example it represents a regular trailing stop trading: a trader simply places a trailing stop behind each new SAR dot, until finally the stop is hit.

(Click for a larger image)

Now we move to CCI.
We are interested in CCI when it goes above 100 (overbought) and below -100 (oversold). Before that we happily trail our stop with whatever indicator we have, in our example it is a Parabolic SAR.
So, after opening a trading position we are trailing our stop with SAR indicator, but then later there is a signal from CCI -> CCI hits 100/-100 mark. We react to it by abandoning our old trailing stop method/indicator and instead introducing a candle by candle trailing as illustrated on the screenshot above. Circled in purple are the moments when we switch from trailing stops by SAR to trailing stops by candlesticks (e.g. behind each newlyclosed candlestick). We do so candle by candle till we get stopped out.

That's it. We get stopped. There will be a new trade, another stop trailing until CCI signals that its time to limit risks and protect profits if any.
This exit strategy prevents emotional trading, stop guessing and other fears related to protecting profits while letting a trade run. It shows how to control the situation when market accelerates and/or prepares to reverse.

--- by; Edward Revy - FxStrtgRvl -----

Forex Trading System

2009-10-04T22:54:00.003+07:00

Forex ; Tiatomi System

SETUP
1 - 4 Hour chart (This system works best with GBP/USD, GBP/JPY)
2 - NonLagMa_v4, ? Filter=20, ? Color=1, ? ColorBarBack=0
SHI_SilverTrendSig
? Allbars=0, ? Otstup=30, ? Per=9.0, ? Don’t forget to change the colors also (0=blue-1=red)
FX Sniper’s Ergodic_CCI_Trigger
? pq=4, ? pr=8, ? ps=5, ? trigger=4

Entry
Enter long when :
1 – a blue dot appears
2 – the ergodic CCI crosses up the trigger line ( blue line crosses up the red one )
3 – NonLagMa color changes to yellow

Enter short when :
1 – a red dot appears
2 – the ergodic CCI crosses down the trigger line ( red line crosses down the blue one )
3 – NonLagMa color changes to yellow

Exit
When a new dot appears (red if you are long and blue if you are short). This method gives you mecanicals trades. Don’t hesitate to transform them into a discretionnay trade after because you can see
things that the system can’t. Sometimes, it will be the difference between a 30 pips trade and a 300 pips
trade. Once you move your stop to breakeven and add a trailing stop – you can’t wait alittle more time
to see what the market wants to give you.

Stop
In general, I look for previous daily Resistance-Support but I don’t have only one method for my stops.
You can also looks for the high or low of the previous bar.

Remarks
Price enter :
The price enter is the open price of the candle or bars where the NonLagMa is yellow.
Ergodic_CCI :
The signal is stronger when the FX Sniper’s Ergodic_CCI_Trigge is above 300 or under -300.
NonLagMa :
”The non-lag MA does turn yellow/non yellow while the current candle/bar is still forming … so i
wouldn’t enter a trade until the end of the current candle confirms that the yellow section doesn’t switch
back to a non signal. So remember wait till the candle is fully formed until entering a potential trade!!!!”Matrung (FF member).
What’s matrung says is right but it’s depend if you are agressive or conservative ! If you are agressive,
you can go when the non lag show for the first time a yellow line but if you are more conservative, like
matrung said, wait for the candle to be fully formed.
To be more conservative means less profit but also more safety.

The order :
I don’t take a trade when the cross happens before the dot or when the cross happens after the nonlag.
So, i wait for a dot then for the cross and then for the nonlag.
It doesn’t matter if the cross and the nonlag happen at the same time but like i said earlier, the cross
should never happen after the nonlag.

Forex Trading Strategies

2009-09-27T10:25:00.002+07:00

Forex Strategies - Ways to Enter a Breakout Trade
The forex breakout strategy is one of the most reliable and most common strategies that successful forex traders use. Especially in the current 2008-09 market with high volatility, breakout strategies have prevailed as being some of the most reliable.

However, there is more than one way to trade a breakout, of course. Some traders will enter a trade on a breakout and then hold the trade for more than a few days as a swing trade, if they believe a trend is forming in the direction of the breakout. Intraday traders will often take a breakout trade and actually use the breakout as an opportunity to scalp anywhere from 10 to 60 pips or so. Traders will enter the breakout trade at different times and will follow different rules of entry, exit and stop setting. However, nearly all successful traders will incorporate breakout strategies into their trading plans one way or another.

There is no “one correct way” to trade breakouts, of course, so you will need to discover which method is the best for your, personality, and the level of risk and patience you are able to provide while waiting for a breakout to occur!

First, let’s review what a breakout is. In general, a breakout is when a currency pair makes a move across a support or resistance point. It “breaks through” the support or resistance level.

In price action based trading (trading that does not rely on the over-use of technical indicators); there are 3 different ways that are recommended to identify and take a breakout trade:

1. Look for a period of consolidation in the currency pair, then enter during the consolidation phase. In my opinion, this is the most risky approach. When you enter a breakout during consolidation, you really do not know which way the currency pair will move. In my opinion, by entering during the consolidation phase, you are starting with just a 50% probability of getting the direction of the trade right. Then you have to add in the other factors such as setting a large enough stop loss which is another factor that can decrease the probablity of the trade going as expected. So all in all, in my subjective opinion, I would claim that this is one of the least preffered ways to take a breakout trade.

2. The second way is to determine the upper and lower points of the consolidation range. Then wait for the currency pair to actually break through one of the points. Then immediately, or after a very short time, get into the trade in the direction of the breakout. This strategy is less risky, in my opinion, because you have waited for some confirmation of the pairs’ direction. False breakouts can always occur; however, when you use this basic strategy along with setting appropriate stop loss, limit taking, and reversal rules, you can expect to increase your “win” ratio to 70% or even higher.

3. The third way I will mention is similar to method 2 above. Again, you start by observing the pair in a period of consolidation. Next you wait for it to break through one of its support/resistance points. However instead of taking the trade immediately upon the breakout, the trader will wait for a “pullback” and then take the trade in the direction of the breakout. The main concern I have with this method is the potential for “lost opportunity.” In other words, if momentum is really strong, the pair may not perform a “pullback,” and you would then miss a big move waiting for a better entry point.

I have a preference for which of the 3 methods I like to trade. This does not mean that my strategy is the best one for others. Take some time to implement the different ways of entering a breakout trade on a demo account and see which one fits your “trading personality” the best!

See Forex Indicator III - Our Blog Partner

Forex Trading Method - 9 EMA Entries

2009-09-20T00:57:00.006+07:00

Think about entries.
When your trading strategy says: enter on the cross of Stochastic lines, on the cross of MACD lines, when RSI comes from oversold/bought zone, when two moving averages cross, when divergence occur etc etc. When exactly do you enter?

Usually you would just visually double check that there is a signal from your indicator and then enter on the close of a signal bar.

Sometimes it will work, sometimes you would wish you have waited a bit more before entering.
Sometimes moving averages that produced a cross would straighten back or as I like to say "uncross", and you'll be left with a false signal and a losing trade. Same for Stochastic lines, which can cross multiple times before price actually decides to move in either direction. Things like divergence are even more difficult: at which point after you've spotted a divergence you are going to enter?

Here is my favorite and simple method. I use 9 EMA. After I get an entry signal from other indicators, I wait till a price bar Closes above 9 EMA to enter Long, or Closes below 9 EMA to enter Short. This method helps me to know when exactly I will enter, and so I have no second doubts about "acting now or waiting a bit longer".

Examples:

9 EMA Entry works on any time frame. I used to scalp on 5 min charts entering with 9 EMA, now I use it successfully for daily charts with the same good result.

Traders can use whatever Moving average they like: 5 EMA, 10 SMA etc. I like 9 EMA.
Besides entries, 9 EMA can also be used for exits, where the same principle works: once price Closes on the opposite side of 9 EMA, you exit. Note, that poking trough the Moving average without closing on the opposite side of it doesn't count, also doesn't count when price Closes right on the moving average.
Additional note: I use 9 EMA to time my entries. I do not trade 9 EMA alone, because it is vulnerable to
sideways choppy prices (just have a look at the last several candles on the first screenshot with RSI - candles dance back and forth around 9 EMA as the price moves sideways).
Hope you find this method useful for your Forex trading.

--- by; Edward Revy & Team -----

tags ; forex trading strategy, forex strategy, forex indicator, forex trading system, forex chart, forex signal indicator, forex momentum, forex e-book

Forex - Flag Patterns

2009-09-15T00:41:00.003+07:00

Flag Patterns in the Forex Market
When talking about flag patterns, it probably will remind many traders of wedges and triangles, actually there's no difference among them - they are short-term continuation patterns. For convenience, we'll call all these patterns as flag in the rest of the article. Flag is a sharp, strong rise/fall trend with several bars of sideways price action on much weaker trade followed by a second, sharp move to new highs/lows.

Flags, wedges and triangles can be categorized as continuation patterns. They usually represent only brief pauses in a currency pair. They are typically seen right after a big, quick move. The price then usually takes off again in the same direction. Research has shown that these patterns are some of the most reliable continuation patterns

Flags are short-term patterns that can last from 1 to 12 bars. There is some debate on the timeframe and some consider 8 bars to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 bars. Once a flag becomes more than 12 bars or more, it would be classified as a rectangle.

A flag is a small rectangle pattern that slopes against the previous trend. For a bullish flag pattern, the flag would slope down; a break above resistance indicates that the previous advance is resumed. For a bearish flag pattern, the flag would slope up, a break below support indicates that the previous decline is resumed.

The biggest difference between flags and other patterns is that, flags (wedge or triangle) are usually too short in duration to have any real impact on highs and lows of the price. The price actions are confined within two parallel trend lines, while other patterns are not.

The following indications are important when identifying flags.

* Flag patterns occur when a market makes a very strong up /down trend in prices, followed by a pause or sideways trading for a few price bars; if the distance of the flagpole is limited, flag will be less typical.
* Do pay special attention to the slope of flags: if the slop is consistent with the trend, it's highly possible that it is not a continuation patterns, but an exhaustion of current trend, full of risk of reversion.
* The duration of flag. If the duration is longer than others in current trend, the trend is very near to the end; discretion is advised.

Forex ekpereHama

2009-09-07T14:25:00.004+07:00

after trying out hundreds of systems on both demo and real accounts for more than a year i found out that the secret of forex is KISS. since then i have been very succesful.
i will call this system ekpereHAMA because its a pimped version of HAMAPAD trading system, its quite simple looking but very accurate.

entry LONG

when MACD crosses the zero mark and at least one line has appeared up. The barchart should be above the tunnel and green.

exit when MACD goes below the zero mark or HAMA turns redand below tunnel.

TF is 1hr chart.

trade with small lot and stay in the market as long as possible.
short entries are the other way round.

---- SBJ ---- FxStrategyRvl ------

Forex Momentum Strategy ( momentum 1 )

2009-09-03T09:56:00.009+07:00

Momentum 1 is a short-term trend momentum strategy. Short-term means that this strategy can enter and exit several trades a day. It is a trend momentum strategy because it buys only when the Schaff Trend Cycle (‘STC’) is rising and sells only when the STC is falling. The strategy exits a trade when trend or price momentum slows down.
For example, MOM 1 will buy into an uptrending market as it accelerates. And it will exit that trade when the speed of the uptrend slows down. The reverse holds true for a sell trade. MOM 1 will sell into a downtrend as it accelerates. It will exit a sell trade when the speed at which prices are falling slows down.
Indicators used in this strategy & their inputs:
Schaff Trend Cycle - STC(5,7,13)
Simple Moving Averages – Two Lines, SMA(3) and SMA(5)
FXS Trend Oscillator - TrendOscl(2)
Trend
This strategy uses a fast moving Schaff Trend Cycle (‘STC’) on a 1-Hour Chart to indicate Trend. The STC moves between 0 and 100. Trend is the direction of the “fast” STC.
UP: Trend is considered to be UP when the STC is rising or at 100.

Chart 1. Momentum 1 uses three strategy indicators.
DOWN: Trend is DOWN if the STC is falling or is equal to zero.
Trade Entry
The strategy uses two fast moving Trade Entry indicators to fine-tune when to buy or sell: Simple Moving Averages – Two Lines and the FXS Trend Oscillator (‘TrendOscl’).
The moving averages are considered bullish when the faster black SMA(3) is rising and above the green SMA(5), and bearish when the SMA(3) is falling and below the green SMA(5).
FXS Trend Oscillator crosses above and below zero. The green ‘TrendOscl(2)’ line is bullish when it is above zero and rising. It is considered bearish when it is below zero and falling.

Chart 2. A Buy Entry occurs at 1.4186, at 8:00, when all three strategy indicators became bullish.
Here are the Buy Entry and Sell Entry rules:
BUY when Trend is UP and:
1. The black SMA(3) above the green SMA(5) and
2. The green Trend Oscillator line is above zero and rising
SELL when Trend is DOWN and
1. The black SMA(3) is below the green SMA(5) and
2. The green Trend Oscillator line is below zero and falling
Trade Exit
Various exit tactics are used, depending on how price could develop.
Profit Target:
1. Exit Buy Position if price trades at Key Resistance target and TrendOscl crosses below zero.
2. Exit Sell Position if price trades at Key Support target and TrendOscl crosses above zero.
Strategy Indicators Changes Direction:
If the Trend Indicator changes direction then exit the trade. If both of the Trade Entry indicators change direction then exit the trade.

Chart 3. Buy Trade exits after Trend changes to DOWN.
Exit a BUY Position if
1. Trend changes to DOWN

OR
2. Both Trade Entry indicators change to Bearish
Exit a SELL Position if
1. Trend changes to UP

OR
2. Both Trade Entry indicators change to Bullish.
Initial Stop Loss Order: Controls trade risk. Establish before the trade.

--- SBJ – by: Fx Strategy --------

Forex ; Acceleration Bands

2009-08-30T23:26:00.004+07:00

Acceleration Bands
Breakout outside Acceleration bands suggest a beginning of a strong rally or a sell-off.
Closing inside the bands afterward signals about the end of a rally or a sell-off.
Details
The idea behind Acceleration Bands indicator
Acceleration Bands principal use is in finding the acceleration in currency pair price and benefit as long as this acceleration preserves.
How to interpret Acceleration bands indicator
Acceleration bands are set as an envelope around a 20 period simple moving average on equal distance from it. Headley, the inventor of Acceleration Bands indicator suggests using them on weekly and monthly time frames to determine price acceleration breakouts (breakouts outside the bands).
When Acceleration Bands are used for smaller time frames, upper and lower bands are treated as levels of possible support and resistance.
How to trade with AB indicator
2 consecutive closes outside Acceleration Bands suggest an entry point in the direction of the breakout. Then position is kept till the first close back inside the Bands.
Acceleration Bands indicator on the chart

The formula for Acceleration Bands
Upperband = ( High * ( 1 + 2 * (((( High - Low )/(( High + Low ) / 2 )) * 1000 ) * Factor )));
Lowerband = ( Low * ( 1 - 2 * (((( High - Low )/(( High + Low ) / 2 )) * 1000 ) * Factor )));
Factor=0.001

----- SBJ ---- Fx indicators ----

Forex Tips and Strategy

2009-08-23T00:44:00.004+07:00

Forex Bullish & Bearish Divergence Pattern
Divergence is a term which often comes back in forex technical analysis, it occurs when the price of the underlying currency pair and the indicator move in opposite directions. A bullish divergence can predict future upturns, while a bearish divergence can predict future downturns. Currency traders make trading decisions by identifying situations of divergence, where the price of a currency pair and indicators, such as the MACD, are moving in opposite directions.

Bullish Divergence
Bullish divergence occurs when the price of the underlying currency pair makes a new low while the indicator fails to make a new low or heading higher suggesting the downtrend may be nearly over. When identifying bullish divergences, a currency trader will look for BUYING opportunities.

Bearish Divergence
Bearish divergence occurs when the price of the underlying currency pair makes a new high while the indicator fails to make a new high or heading lower suggesting the up trend may be nearly over. When identifying bearish divergences, a currency trader will look for SELLING opportunities.

Forex ; Continuation Patterns

2009-08-14T15:32:00.005+07:00

Forex Chart - Continuation Patterns
In the candlestick theory, there are two main patterns that are continuous, the Falling Three Methods and the Rising Three Methods.

Falling Three Methods
A long black black day will occur in a downward trend and be followed by three days of small real bodies that create a short upward trend. However, by the fifth day, the bears will step in rather strongly and cause the market to close at a new low rate. This small upward trend that occurs between two long black days reflects the consistent behavior of the investors taking a small break. This downward trend will usually continue for a time. It denotes a bearish trend and has a high rate of reliability.

1) The first day will be a long black day.
2) The second, third, and fourth days that follow will have small real bodies. The rates will remain within the range of the beginning day and will follow a brief period of an upward trend.
3) The fifth day is a long black day. When the market closes on this day, it will close at rates that are below the rates the market closed with on the first day.
Rising Three Methods
During an upward trend, a long white day will occur that is followed with three days in which small real bodies have fallen into a short downward trend. Again, this trend is indicative of the investors taking a small break. At the close of the fifth day, the market will close at a new high rate, this results when because the bulls have came in strong. This method also indicates a bullish trend and has a high reliability rate.

1) The first day will be a long white day.
2) The second, third, and fourth days that follow small real bodies. The rates reflect a brief downward trend, but still remain within the range that the market had on the first day.
3) The fifth day is a long white day. At closing time on this day, the market will have rates that are above those on the first day of closing.

Forex Trading Indicator

2009-08-11T08:30:00.004+07:00

Forex – Aroon Indicator
Trading with Aroon indicator involves the following signals:
AroonUp crosses AroonDown upwards — bullish signal.
AroonDown crosses AroonUp downwards — bearish signal.
AroonUp and AroonDown move in parallel lines — consolidation period.
Details
The idea behind Aroon indicator
Aroon indicator is a young one, developed by Tushar Chande in 1995.
Aroon was created to measure strength of a trend and potentials for its continuation as well as the quality and type of the trend: up-trend, down-trend or sideways moving market.
How to interpret Aroon indicator
There are two parts to the Aroon Indicator – two coloured lines: Aroon up (red line) and Aroon down (blue line).
The Aroon indicator scale ranges from 0 to 100.
There are 4 important levels to monitor when trading with Aroon indicator: 0, 30, 70 and 100.
The default time period for Aroon indicator is 25, on some panels - 14. But, it can be changed to, for example, 10-periods for shorter term trades or to 50-periods for longer ones.
How to trade using Aroon indicator?
1. When AroonUp crosses AroonDown upwards it is a bullish signal.
2. When AroonDown crosses AroonUp downwards it is a bearish signal.
3. When AroonUp and AroonDown move in parallel lines it suggest a consolidation period
AroonUp rules:
1. When AroonUp reaches the 100 level the uptrend is clearly strong; the closer it remains to the top the stronger the uptrend.
2. When AroonUp line fluctuates between 70 and 100 levels it suggests a Potential uptrend. The signal becomes stronger if at the same time AroonDown remains between 0 and 30 levels.
3. When AroonUp line fluctuates between 0 and 30 levels it suggests trend weakness and a possibility of a trend reversal.
Opposite true for AroonDown:
1. When AroonDown reaches the 100 level it suggests downtrend being strong; the closer it remains to the top the stronger the downtrend.
2. When AroonDown line fluctuates between 70 and 100 levels it advices on a Potential downtrend. The signal becomes stronger if at the same time AroonUp fluctuates between 0 and 30 levels.
3. When AroonDown fluctuates between 0 and 30 levels it suggests trend weakness and possible future trend reversal.
Aroon Indicator Formula
Aroon(up) = ((total number of periods — number of periods since highest close) / total number of periods) x 100
Aroon(down) = ((total number of periods — number of periods since lowest close) / total number of periods)) x 100
Aroon indicator shows how much time passed between the highest (up) or lowest (down) close since the beginning of a period (in percents).

Aroon Forex chart example

Conclusion
As market changes, traders adjust their trading approaches and methods from trend following to tools used during market consolidations. Aroon indicator helps traders to determine when to use a trend following indicators and tools and where to switch to oscillator like tools that work best in consolidating markets.

>>>>> See Aroon Oscillator CLick here >>>>

---- SBJ ---- by; FxIndicator -----

Forex Dynamic Momentum Index - DMI

2009-08-08T21:55:00.004+07:00

The Dynamic Momentum Index, or DMI, very much resembles the Relative Strength Index. The distinction is that the DMI uses inconstant time periods - from 3 to 30 - while RSI uses only the constant ones.
The inconstancy of the DMI time periods is restricted by the recent inconstancy of currency trading prices. The DMI is more sensitive to price changes when Forex prices are inconstant. When there are no fluctuations on Forex market, the DMI uses a greater number of time periods. During more active Forex trading markets while a smaller number of time periods are being used. Thus, the DMI depends on fluctuations more in the Forex market and demonstrates changes more quickly than the RSI.

---- SBJ --- by;ForexRealm -----

Forex Stochastic Momentum Index

2009-08-08T21:50:00.002+07:00

SMI was created by William Blau in January 1993 issue of Technical Analysis of Stocks & Commodities. The SMI demonstrates where the close is relative to the middle of the last high/low range, in comparison to the close relative to the recent low/high with the Stochastic Oscillator, which resembles the Stochastic Momentum Index.
It's an oscillator that shifts between -100 and +100 and can be a bit less inconstant than an equal period Stochastic Oscillator. The oscillator consists of 2 lines - the moving average of the SMI (red) and the SMI (blue). The SMI will be negative if the close is less than the middle point of the range. The SMI will be positive if the close is greater than the middle point of the range.
The SMI interpretation is in fact the same as that of the Stochastic Oscillator. The most ordinary way of using it is to trade from is to sell when the SMI rises above +40 and then returns to the point under that level and to purchase at the moment when the SMI decreases under -40 and then shifts back above it. Another trading sign is to purchase when the SMI shifts above the moving average, and sell when the SMI decreases below the moving average.
Usually before basing any trades on strict oversold or overbought levels it is better to qualify the trendiness of the market using an indicator, for example, R-Squared. Levels should provide the most effective results if indicators provide a non-trending market trades based on strict oversold or overbought.

Forex Trading System

2009-08-01T21:09:00.006+07:00

FOREX ; Ascending and Descending Trend

FOREX Ascending Anytime that the demand for currency exceeds the currency offered, the exchange rate on Forex grows. On the other hand, if the volume of currency for sell is less than the volume that participants are seeking to buy, the market rate falls. When the demand lasts for a long time, it causes a rate in growth and will lead to the market being saturated. From the time that offers exceed demand; the sales are decreased in rate.
Trend corrections are the movements that are directed against the direction in which the previous trend was headed. This movement doesn't surpass the previous trend. A trend is considered a phenomenon that will return prices to a correct channel and does not allow the movements in the market to deviate from the fundamental factors.
If participants will open long positions and when satisfied by the increase of an exchange rate sell with a purpose of profiting quickly, it is called an ascending trend. But, if the principal factors that have resulted in an increase in the demand for currency have not changed, it renews the buying of currency and increases the rate. Then that particular movement takes a direction.
There are two kinds of trend: ascending and descending trend.
Ascending trend - An ascending trend is any period in which exchange rates reach a higher value when compared to the previous rate. It's an upward gain in rates from the rate before it.
The bottom points of waves (local minima) join a direct line - trend line:

Example of an ascending trend

Forex Descending trend - Whenever the current rate of exchange depreciates, it is a descending trend. It is simply, when the rates value becomes lower.
Trend lines are drawn by connecting the highest peaks of local maximums for ascending rates and the local minimums for descending rates.

Example of a descending trend

When the trend lines form a straight, or more even line, it confirms that particular trend. One of the criteria for determining trend force is examination of breaks in the support or resistance levels. Any trend that receives a lot of resistance will be weaker. And, without support, the trend will eventually change in the future.
There are several general rules that are followed in defining trend force:
1) The longer a trend lasts, the stronger it becomes however there is still a limit.
2) When a trend begins abruptly and ascends or descends quickly, it's a strong trend.
3) If a trend line reflects a long, level line, it's very likely the trend will continue.
4) While an abrupt trend usually indicates a strong trend, they can also change abruptly.
5) No matter what the trend is, it will eventually slacken. High trends will eventually become lower and low trends will eventually rise.

---- SBJ --- FXRealm ----

Forex Trading Strategy

2009-07-31T18:07:00.002+07:00

FOREX Trend Following – 3 simple steps to catching big profits

If you want to catch the big profits in forex trading you need to trend follow forex trends which are longer term. Here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every major forex trend and lead you to long term currency trading success.

Most novice traders don't bother trying to trend following forex longer term - instead they try forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profits however as most short term moves are random, this leads to equity wipe out.

The other choices are swing trading and long term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long term trends that last for months or years. These moves can and do yield big profits - here we will outline a simple method to catch them.

Breakouts

By far the best way of catching the big moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most major moves start from new highs or lows.

While it might appear that you are not buying or selling at the best level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The reason for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.

The only point to keep in mind is a support or resistance which is broken, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the wider the spacing between the tests the more valid the level is.

Confirmation

Of course not every breakout continues and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your trading signal.

These indicators give you an idea of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the best are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop levels are easy with breakouts - Simply behind the breakout point.

If you have a big trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a big move, trailing stops should be held a long way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict.

It's ok to give a big back, as that's the nature of trading forex. Keep in mind if you got 50% of every major trend you would be very rich. When you are long term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trend follow forex and catch the high odds moves that yield the big profits. If you are learning forex trading and want a simple method that is robust and will help you catch every major move, then you should base your Trading on the above method.

FOREX ; Head & Shoulders Top Chart pattern

2009-07-26T13:35:00.004+07:00

The Head and Shoulders Top marks a "reversal" pattern in an uptrend market and is extremely popular among currency traders.

The pattern consists of 2 Shoulders, 1 Head and the Neckline (support):

1) The first point - the left shoulder - occurs as the price of the currency pair in a rising market hits a high and then fall back to the neckline.

2) The second point - the head - happens when prices rise to an even higher high and then fall back again to the neckline.

3) The third point - the right shoulder - occurs when prices rise again but don't hit the high of the head.

4) A key element of the pattern is the neckline and can be horizontal, slope up or slope down and is formed by drawing a line connecting two low price points of the formation.

What does a Head & Shoulders Top reversal pattern look like?

The pattern is complete when support provided by the neckline is "broken." This occurs when the price of the currency pair, falling from the high point of the right
shoulder, moves BELOW the neckline.

Currency analysts will often say that the Head & Shoulders top pattern is not confirmed until the currency price closes below the support neckline - it is not enough for it to trade below the support neckline.

How to trade this pattern?
Go short when the currency price CLOSES below the neckline and put a stop-loss few pips above the last peak (right shoulder).

Use a risk reward ratio 1.5 or better to calculate your profit target.(if you risk 50 pips, your target should be at least 75 pips).

Chart example

Please note that the Head and Shoulders Top formation does not need to be perfectly symmetrical.

Forex Chart ; Rectangle pattern

2009-07-16T16:52:00.005+07:00

A Rectangle or Box is a continuation pattern and describes a price pattern where supply and demand seems evenly balanced for an extended period of time. The currency pair moves in a tight range, finding support at the rectangle's bottom and hitting resistance at the rectangle's top.

Finally, price will break out the rectangle's range, either by moving through support or resistance. If the prior trend was an uptrend, the most likely direction will be UP, if the prior trend was a downtrend, the most likely direction will be DOWN.

However, rectangle's can become a reversal pattern: if the prior trend was an uptrend and the price breaks through support OR when the prior trend was a downtrend and the price breaks through resistance.

What does a Rectangle Formation look like?

The Rectangle pattern is easy identifiable by two parallel lines("Upper end of range" and "Lower end of range").

How to trade this pattern?

Always try to trade Rectangle's in the direction of the previous (main) trend:

(1) If the previous trend was up, wait for a break out to the upside and go long when the currency pair closes above the upper resistance trendline.

Place stop a few pips below the lower support trendline.

(2) If the previous trend was down, wait for a break out to the downside and go short when the currency pair closes below the lower support trendline.

Place stop a few pips above the upper resistance trendline.

Chart example

USD/JPY prior trend is down on the chart above, after price breaks the Rectangle's lower support line, it's prior trend resume (DOWN).

Forex ADX Power

2009-07-10T17:36:00.003+07:00

- Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well
- Currency Pair: Any

- Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX)
- DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI-
- ADX Settings: Ignore signals where ADX is lower 20

GO LONG WHEN:
- EMA9 has crossed over EMA26

- DI+ >= 25
- ADX >= 20
- ADX is in between DI+ and DI-

EXIT LONG WHEN:
- EMA26 has crossed EMA9 AND
- DI- is higher than DI+

GO SHORT WHEN:
- EMA26 has crossed EMA9
- DI- >= 25
- ADX >= 20
- ADX is in between DI- and DI+
EXIT SHORT WHEN:
- EMA9 has crossed EMA26 AND
- DI+ is higher than DI-

WHAT TO IGNORE:
- While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26
- While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9
- While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade
- Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26

----- SBJ ---- by; N.Ghangro ----

Forex ; CCI Divergence Trading system

2009-07-02T14:22:00.004+07:00

Today I want to share with you a very simple trading system that is based entirely on CCI divergence. CCI is a pretty useful indicator in itself but it's even more effective when you trade divergence patterns.
In trading circles divergence is basically where the price makes new highs but the indicator in question, ie the CCI in this case, fails to make new highs. Similarly in a downward trend the price is making new lows but the indicator is failing to make new lows.
These divergence patterns indicate that a reversal is about to take place because the trend is starting to run out of momentum, and they are generally very strong signals.
So getting back to the CCI divergence trading system, I recommend you plot the price chart along with two CCI indicators - the CCI (10) and CCI (60). You may like to try other settings but I find these work extremely well.
Then you want to wait for a divergence pattern to emerge on BOTH of these indicators. You can use just one indicator but I recommend using both of them if you want to identify the very best signals.
To give you an example there was an excellent set-up on the GBP/USD pair yesterday morning (on the 15 minute chart). You can see from the chart below that although the price didn't actually trade lower, it did form a perfect double bottom formation (indicated by the grey vertical line), and yet when it did so both the CCI indicators failed to make new lows, which was a very positive sign that a reversal was about to take place, and which turned out to be correct in this case.

As with all trading systems this simple CCI divergence system isn't foolproof but it can provide you with some excellent signals on occasions.

---- SBJ ---- by; James W ----

Forex Momentum

2009-06-29T13:26:00.004+07:00

Developed by Donald Lambert, the momentum indicator measures the difference between the current market price of a currency pair and the price of the same currency pair a certain number (n) of days ago.

Trading Momentum is very simple. Buy a currency pair when Momentum crosses from below the zero line to above or sell when Momentum crosses from above the zero line to below; however, to achieve better trading results from Momentum, below you will find the trading rules for use in both trending and ranging currency markets.

Popular trading signals from Momentum

I. Ranging Markets
• Go Long when the Momentum indicator falls below the oversold level and then crosses the zero line from below;
• Go Short when the Momentum indicator rises above the overbought level and then crosses the zero line from above.

II. Trending Markets
Is the market trending or not? First, measure the strength of the trend using a trend-confirming indicator such as ADX or draw a simple trendline to find out.
The Momentum indicator tends to stay above the zero-line during an up trending market and below the zero-line in down trending markets.

Take trading signals only in the main direction of the trend!
• Up trending market: Go long when the Momentum indicator falls below the zero-line and then turns back above;
• Down trending market: Go short when the Momentum indicator rises above the zero-line and then turns back below.

Please remember that Momentum, as with all other technical indicators should not be used by itself but should be combined with other indicators / studies to make a complete forex trading system.

------ SBJ --- by; Pete.V ------

FOREX - 4 Tech Indicators

2009-06-25T17:48:00.005+07:00

If you are new to forex trading, do you know which types of technical indicators are for what kinds of usage? And if you are already an experienced forex trader, are you using the correct combinations of technical indicators to help you profit consistently in the forex market If w:you are still not sure, we'll discuss the following 4 different types of forex technical indicators below
1. Trend Indicators - Also known as Directional Indicators. I have always reminded my students, 'Trend is your best friend and always trade in the direction of a trend'. A forex trend may be quite subjective to different traders as they may have different views on trendiness. So those trend indicators out there in the forex market can help traders detect the starting and ending of a trend. Some of the more popular trend following indicators includes MACD (Moving Average Convergence Divergence), MA (Moving Average), Parabolic SAR. Depending just on trend indicators is not enough, you may need Momentum Indicator(s) to enter and/or exit a trade.
2. Momentum indicator - Also known as Strength Indicators. It is described as the speed of a move in price over a period of time. They are oscillators which are able to indicate whether the forex market is in the overbought or oversold regions. If they have risen to the overbought zone, there is high possibility that the price will be going down, and if they have fallen to oversold zone, there is high possibility price will be going up. Some of the more popular oscillating indicators in forex trading include Stochastic, Momentum, RSI (Relative Strength Index), CCI (Commodity Channel Index).
3. Volatility indicators - Also known as Bands Indicators. Often, a change in volatility will lead to a change in price. Therefore, we can see how active the forex market is just by looking at the price ranges. You may want to trade when there is a dramatic change in price movements, which suggests that the market is actively trading forex
. Some of the more popular Volatility Indicator includes BB (Bollinger Bands), ATR (Average True Range), Envelopes

4. Volume indicator - They are used to show the volume of forex trading and are useful to confirm the direction of a trend, a reversal or a breakout. Price movements increase when the volume increases, low volume may warn of a reversal in a forex trade. If a currency pair trades from a narrow range and then breaks out on high volume, this is a strong signal and may suggest a breakout. Some of the more widely used Volume Indicator includes Demand Index, Chaikin Money Flow, Money Flow Index, Ease Of Movement, OBV (On Balance Volume).
I'm sure that after the above discussions, you should have a better idea of the different types of forex technical indicators. While they can greatly help you in technical analysis and make trading decisions, I want to stress that NO forex indicators is holy grail. The
indicators are just a confirmation of history and a guide for the future. Most importantly, you need to know the right combination of the forex technical indicators to get you profitable consistently in the long haul. You can find a forex trading system which has a very good combination of indicators in my forex ebook which I give for FREE. Good trading to all.

------ SBJ ---- By; Daniel S -----

Forex EMA and ADX Strategy

2009-06-15T17:41:00.003+07:00

Currency: any
Time frame: 1hr
Indicators: 5EMA(close), 6EMA(open), [ADX(14) at 20mark]
Rule: Enter a long position when the 5EMA crosses the 6EMA up and the width difference between them is a pip and the ADX must be over it's 20mark.

For those conservative traders, you could add 55EMA and 89EMA to know the trend and only enter a position according to the trend,that's enter long when the 55EMA is over the 89EMA and all other parameters are in place as i have stated above.

--- SBJ --- by; Egudu ------

Forex ATR - Average True Range

2009-05-24T14:35:00.002+07:00

Average True Range (ATR) is a popular volatility indicator used to measure the volatility in currency pairs.

ATR does not provide any information about the direction of the trend (up or down), it only provides useful info about how volatile a currency pair is.

A high volatile pair such as the GBP/JPY will have a high ATR while a low volatile pair, for example the EUR/GBP will have a low Average True Range.

ATR Calculation
True range(TR) is the largest of these three prices:
• The difference of Today's High Price – Today's Low Price
• The difference of Today's High Price – Yesterday's Close Price
• The difference of Yesterday's Close Price – Today's Low Price
ATR Formula (14 days calculation)

ATR current = 13/14(ATR Previous) + 1/14 (TR current)

ATR is a moving average of values of the TR range.

Recommended period

14 days (standard on most forex charting software)

Trading signals from ATR

Forecasting currency pair movements with ATR is based on the same principle as other volatility indicators: the higher the value of ATR, the higher the probability of a change in trend (looking for tops and bottoms); the lower the ATR ’s value, the weaker (sideways or slow trending) the trend’s movement is, we're now looking for possible breakouts.

Suggested further reading

Stop Placement with Average True Range (ATR)

PS. It is recommended to use Average True Range (ATR) in conjunction with other technical analysis tools to make a complete forex trading system.

----- SBY ---- Th Long -------

Forex ADX Indicator

2009-05-14T13:25:00.007+07:00

Asverage Directional index / ADX - Developed by J. Welles Wilder, the ADX is a momentum indicator that measures the strength of a prevailing trend. ADX and can be extremely useful to determine if a trend is strong or weak or to filter out false breakouts in non-trending markets. ADX doesn't tell you if the trend is going up or down, it just tells how strong or weak the current trend is.

ADX is used very often as a trend-confirming indicator in forex trending systems. As a general rule, if ADX >= 25, the trend is confirmed, either up or down.

Formula

ADX = modified moving average of DX (ADX fluctuates between 0 and 100)

Interpretation
ADX readings below 20 indicate sideways movement or a very weak trend, either up or down.

ADX readings at or above 25 indicate a trend, either up or down.

ADX readings above 40 indicate a strong trend, either up or down.

ADX readings above 80 are very rare and indicate an extremely strong trend, either up or down.

ADX can be very useful for the currency trader if combined with a trending system such as the MA Cross trending system.

Chart example

Please remember that ADX, as with all other technical indicators should not be used by itself but should be combined with other indicators / studies to make a complete forex trading system.

See . . . DMI Indicator

Forex Indicator – Directional Movement Index

2009-05-06T15:16:00.002+07:00

Directional Movement Index / DMI Developed by J. Welles Wilder, the DMI indicator is a trend following indicator designed to determine first whether a currency pair is trending or non-trending before providing buy or sell signals in the direction of the trend.

Directional Movement Index ( DMI) consists of three components:

- ADX measures whether a currency pair is trending or not trending
- Current Positive Directional Index ( +DI)
- Current Negative Direction Index ( -DI)
ADX is used very often as a trend-confirming indicator in forex trending systems. As a general rule, if ADX >= 25, the trend is confirmed, either up or down.

ADX Interpretation

ADX readings below 20 indicate sideways movement or a very weak trend, either up or down.

ADX readings at or above 25 indicate a trend, either up or down.

ADX readings above 40 indicate a strong trend, either up or down.

ADX readings above 80 are very rare and indicate an extremely strong trend, either up or down.

ADX can be very useful for the currency trader if combined with a trending system such as the MA Cross trending system

Formula

ADX = modified moving average of DX (ADX fluctuates between 0 and 100)

DX = 100[+DI - (-DI)]/ [+DI + (-DI)]

Popular Trading Signals from Directional Movement Index (DMI)
When +DI rises above -DI, it can generate a buy signal for a new up trend, similarly, if +DI crosses below -DI, it can generate a sell signal for a new downtrend.

Go Long when

• +DI rises above the -DI
• ADX should be >= 25
Exit the position when +DI crosses -DI from above or when ADX falls below 20.

Go Short when
• -DI rises above the +DI
• ADX should be >= 25
Exit the position when -DI crosses +DI from above or when ADX falls below 20.

Note: When ADX falls below 20 or both below +DI and -DI, this indicates a non-trending currency pair with low volatility (side ways movement).

------ SBY ----- by; Pete V. ----------

FOREX ; Frequency of trading is critical

2009-04-27T10:27:00.001+07:00

When building or evaluating forex trading systems the many benefits of systems that trade very frequently are often overlooked. A system that trades frequently has many advantages over less active systems that appear to be more desirable because they have better performance ratios.

If a strategy is profitable the more it trades the more money we should make. I apologize for stating what should be obvious but you would be surprised at how often I hear discussions about selecting systems with the highest level of "expectancy" or highest "profit factor" without relating these measurements to the system's trading frequency. Simply stated, our goal should be to show the most profit with the least amount of risk and trading frequency plays a critical role in maximizing profitability and controlling our risk.

Trading frequency represents opportunity for profit. The more opportunities we can find the more profit we should expect. For example, a strategy that has a very high profit factor of 4 (profit factor is total profits divided by total losses) may not produce as much profit as a more active system that has a profit factor of only 2. Since the strategy with the lower profit factor is profitable and it has many more opportunities it may easily produce more total profit than the system with the much higher profit factor.

Active systems should give us a higher confidence level when analyzing our test data. In addition to increasing total profits, a very active system gives us much more data to analyze when doing our preliminary research. If we have a long-term trend-following strategy that produces only 50 trades over five years of data our positive results may not be nearly as reliable as the results from analyzing a more active strategy that produced 1000 trades over the same data sample. I would be willing to bet that the system with the larger sample of trades is more likely to produce profitable results in the future because our level of confidence must relate to the number of samples in our testing.

Active systems should produce more reliable results and a smoother equity curve. If we flip a coin only ten times our odds of having 50% heads and 50% tails are not very good. However if we flip the coin one thousand times we are likely to come much closer to obtaining 50% heads and 50% tails. The same logic applies to our real-time trading.

If we have a large sample of real trades then our results should come closer to our expectations than if we only have a one or two trades. The active system will approach our expectations much quicker than the system that trades infrequently. If we have 50 or more trades per month with a good system we might reasonably expect to be profitable every month. However if we have a system that is only producing two or three trades per month then our monthly results will less predictable and inconsistent. The infrequent trading system might be expected to produce a profit every year but it would not be realistic to expect it to show a profit every month because the sample size in a month will be very small.

Here is a quick summary:

1. Active systems give bigger samples in testing which make the test results more reliable.
2. Active systems have more opportunity for profits and should produce more total profit over time.
3. Active systems should produce a smoother equity curve.

When setting your goals for a trading system you should give trading frequency a high priority even if it means that some of the usual performance measurements may suffer.

How to increase trading frequency:

1. Use quicker parameters for entries. Trading frequency can usually be increased in a system by using more sensitive (usually shorter) parameters for the indicators that determine the entries and exits.
2. Be aggressive when taking profits. Quicker exits that lock in profits will tend to increase the number of trades but may reduce the average profit per trade. That trade-off may prove to be worthwhile and may substantially increase the total profit over the long run.
3. Trade multiple markets. Diversification among markets should produce more trades and more consistent results.
4. Trade multiple systems. Adding more trading systems will increase the activity level. Use as many systems as you believe to be practical in terms of available capital and as many systems as you can accurately monitor.
5. Trade multiple time frames. A system that works well on daily charts may also produce positive results on hourly charts or weekly charts. Don't make the mistake of assuming that only one time frame must be used.

Here are a few final thoughts.

Drawdowns: I have found that adjusting a system to be more active will almost always increase the size of the drawdowns. However in many cases the larger drawdowns are simply the result of having a much larger sample size over the period being tested. If you perform a Monte Carlo simulation on a system that trades infrequently you will observe that larger drawdowns become more likely as the number of trades in the simulation increases. This means that your test data on the inactive system is showing an unrealistic drawdown that is probably lower than what you might expect to actually experience when trading that system over the long run. If you don't have a program to perform Monte Carlo simulations and you are analyzing a system that trades infrequently you should double the size of the historical drawdown to give you a more realistic idea of what to expect in real trading with a larger sample size.

Increased costs: Trading more often will increase your trading costs in terms of commissions and slippage. Be sure to factor in realistic costs when doing your testing. The idea of trading frequently is to make more money. At some point increased trading will begin to reduce your total profitability. You should know where that point of diminishing returns kicks in.

I'm not a mathematician but I think that system traders need a formula for comparing systems that includes the frequency of trading.

--- SBY --- by. Chuck Lebeau --------

Forex Trading Strategy

2009-01-22T08:16:00.002+07:00

Forex - The "RickyD" System

It would not help you much to tell you how I do as we all put something different into our trades with emotion and knowledge that we don't even think about. I found that out as I was trying to get the rules down to have an expert made. After many attempts I found the only way to get it was write down what I did and thought about as I was trading and that is what has become the Ricky D Strategy / System.

One thing I have to say as I have heard over and over, I used such and such system and it just didn't work for me. I heard this about the FX Wizard and as far as I am concerned it was one of the best systems I have used. I made good money at it and found and used some of its best stuff here in my system.

So what is the problem? First of all you have to follow the rules and not try to improve it before you know how to use it. I read where the founder of the Turtle System said he did not fear putting it out because only a very few would follow the rules and be winners with the system. So, this system is as good as you will be at following the rules and setup. I have taken the best of many systems I have obtained and made one that works for me. I have added some things as the market has changed since I have been using it and it pretty much works on any market that has some volume and movement, driven by trend or price. Just don't trade it on a choppy market all you do is pay your broker his spread and you lose.
I have worked the settings on these indicators until they work. They can be used on the 15, 30 minute, and 1 hour with success. They will even work fairly well on the 5 minute if anything really does. I like to use the 30 minute and just so you know I don't check other time frames, I just park and trust the indicators.

I trade the 4 majors and trade from 2:00AM till about 10:00AM or the volume drops EST or (-5 GMT). I try not to be in a trade during news releases.

I have found as many have said, a trend is not a trend until it starts to move. I follow what the chart is doing, not what I think it will do. I used to give up to many good trades thinking the market was in a certain trend. My bias did not help me but hurt me and my trades. You can only act upon what is happening on the charts so anything else will kill your trades.

Four Indicators:
CCI (5) Line at +100, 0, and -100
Forecast Oscillator: Rperiod (15) t3_period (3) and b(0.7) Line at 0
Relative Vigor Index (1) Line at 0
ADX (14) Line at 20
(“Pivot” custom indicators / BT1 / BT2Sig / BT2Stop / Volume /)

Directional Indicators:
5MA (Linear Weighted/Close) Red
20MA (Linear Weighted/Close) Blue
100MA (Linear Weighted/Close) Green
200MA (Linear Weighted/Close) Sandal wood

* The cross of the 5MA with the 20 MA favors the direction of the trade, (5MA on top favors Long trade, 5MA on bottom favors Short trade. And don’t trade too close to the 100MA, acts as a resistance line).

Entry (Long):
The CCI needs to be greater than (0).
Forecast Oscillator needs to have both lines above the 0 line with the blue line on top.
The RVI needs to have both lines above the 0 line and the style (Blue) line on top.
The ADX Main and DI+ need to be at least 20 and rising.
No BT2Stop in the way of the entry bar.
Must be 15 pips away from a support or resistance line. (“Pivot” in custom indicator folder)
The 100MA(LW/Close) no closer than 20 pips in the direction of the entry.

Entry (Short):
The CCI needs to be less than (0).
Forecast Oscillator needs to have both lines below the 0 line with the red line on top.
The RVI needs to have both lines below the 0 line and the red line on top.
The ADX Main and the DI- need to be at least 20 and rising.
No BT2Stop in the way of the entry bar.
Must be 15 pips or more away from support or resistance line.
The 100MA(LW/Close) no closer than 20 pips in the direction of the entry.

Exit: The RVI lines cross with the wrong color on top and a slight separation in them (0.2) (or) the RVI Style line crosses the 0 line against the trade. (up while in a short / down while in a long) which ever
happens first.

Forex Trading Strategy

2009-01-22T08:16:00.000+07:00

Forex Chart Indicator

2009-01-18T20:30:00.003+07:00

Commodity Channel Index - CCI

tag Tags : Forex Chart CCI Commodity channel index

Forex Trading System

2009-01-18T20:00:00.001+07:00

Forex Trading Profits - A Forex Trading Method for Huge Gains

The logic of this forex trading methodology is simple, can be understood by anyone and applied for big forex trading profits.
If you use this forex trading system, you will have the potential to catch the big trends that make the big profits.
Let’s take a look at the logic of this method and why it works.
We have all heard this phrase as an accepted wisdom:
“Buy low sell high”
The real way to make forex profits however is to:
“Buy high and sell higher”
Trading this way you will have bigger profits and less risk. Let’s see why.
If you want to “buy low and sell high” you have problem:
You have to PREDICT where a market is going to bottom and this is hard as the old investment saying goes:
“If you are a bottom picker you will soon become a cotton picker”
Trying to pick a bottom in a leveraged market such as forex will make you poor! Consider this:
A currency suddenly breaks its highs and accelerates away.
Investors who want to “buy low and sell high” sit and watch it they will wait for the market to pullback and get in at a cheaper price.
but the pullback never comes, the market simply goes higher and these traders never get on board. FACT:
Most of the big trending moves in any market start from new market highs.
It’s hard to buy a breakout as you know you have missed a slice of the potential profit, but if you grit your teeth and accept this you will in most instances be rewarded with big profits.
You didn’t get the exact turn, but that’s impossible to do unless you’re lucky and your major aim is profit and breakouts give you high odds trades if significant resistance is broken.
You are acting on Confirmation
A breakout system does not try to predict a market bottom it gives you confirmation that the move is in progress, so remember the old saying:
“A trend in motion is more likely to continue than reverse”
If you are positioned to get in as the breakout occurs, your risk is low, and your rewards are high.
Many traders don’t can’t to do this, it’s to uncomfortable for them.
They think they are “chasing” the move, and wait for a pullback - it never comes, and they miss the big trends and profits.
Big Currency Trading Profits with breakouts!
Here we have looked at the concept, and why it’s successful, and you can see how uncomfortable it is to do - no one likes to miss a bit of the profit, but that’s exactly why it makes money.
Trade this method on important resistance levels longer term and you could soon be piling up big profits to.

--- by fx place -------

Forex Gbp / Jpy

2009-01-14T16:48:00.001+07:00

Every morning on the European open at 0700, the GBP starts to rise against the JPY. On the London open it takes off again, slowly climbing to the New York open at 1300, where anything can happen.

Almost every day we have either straddled 30 pips each way at 0800 or just taken a long trade with a 30-pip stop loss - then follow the price upwards, moving my stop loss in 15-pips behind until I lose my nerve and take the profit!

Spread betting at 50p a point in this way I have been raking the cash in. At the start I turned £27 into £146 in two trading sessions. I know this defies all our sensible money management rules but in the last month I have only suffered three big losses.

Indicators? none - too complicated. I just see how the market has been running, keep an eye on upcoming news (avoid NFP, etc) and wait!

The only useful indicator I use is the parabolic SAR which gives me a good idea when to exit.

It's also a very good idea to study the overall economy, not just the pair you are trading in and learn how prices react to certain events in different parts of the world.

OK this is working NOW, but markets do change so watch out for the bubble burst!

---- by; Paul ------

Forex Chart

2009-01-10T07:11:00.007+07:00

FOREX > Chart > Strategy

Tag tags Forex Chart Indicator Trading Strategy

Forex Chart Indicator

2009-01-05T17:59:00.003+07:00

Chart > Forex > Strategy > Full Stochastic

Chart > Forex > Strategy > RSI and Stochastic

Forex Chart INdicator

2008-12-26T08:08:00.004+07:00

Forex Chart Comparison

Super Woodie vs Other Indicators

tag TAG Tag Forex Indicator Chart FX Indicator

Forex ; ( another ) Swing Trading

2008-12-20T21:27:00.001+07:00

General Trading Setup
• Trade on daily chart (swing trading)
• 5 EMA applied to the close
• 10 EMA applied to the close
• Stochastic (10,3,3)
• RSI (14)
Trading Rules
Stop Loss: 30 pips
Enter long (buy) if:
• The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
• RSI is greater than 50
Enter short (sell) if:
• The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
• RSI is less than 50
Exit Rules
• Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
I have a similar but different approach to this setup

My Trading Setup
• Trade on 1 minute chart
• 5 EMA applied to the close
• 10 EMA applied to the close
• Stochastic (10,3,3)
• RSI (14)

Trading Rules
Trailing Stop: Spread
Enter long (buy) if:
• The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
• RSI is greater than 50
Enter short (sell) if:
• The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
• RSI is less than 50
Exit Rules
• Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
Two changes only. The first change is trading on the 1 minute chart, the second is I have a trailing stop at the spread price. You can add trend-lines and other tools to show you when to enter, analysing the 5 minute and 30 minute chart may help also to see where the trend is likely to go. Support and resistance lines too. I'm only new and above is how I've been trading

Please note: I have not added any risk/reward, money management or leverage information to this thread. Each to their own and whatever works for you

Forex ; Parabolic Sar + ADX

2008-12-14T20:47:00.003+07:00

The two indicators we are going to talk about here are found to be very well working when used side by side. This Forex trading system is an another simple discovery; and hundreds of such discoveries can be made when traders are there to learn and experiment.

Any currency pair and time frame can be used.
Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)

Entry rules: Sell When the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When the +DI line is above the -DI line, all Parabolic sell signals must be ignored.
Entry rules: buy when the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the +DI line is below the -DI line, all Parabolic buy signals must be ignored.

Exit rules: when +DI line and -DI lines have crossed again.

Also the higher the ADX rising - the stronger the current trend is. If ADX has reached 25, the strong trend is in place.

Advantages: allows filtering entries and predicting good exits.

Disadvantages: Both Parabolic SAR and ADX are follow-up indicators. Although they complement each other very effectively, the “weakest” in chain is ADX, because during trading it can give one signal, but later change to the opposite. Once given a signal from ADX, waiting for the current price bar to close to avoid such misleading is advised.

----- by; fxStrtgyRvld ----

Forex ; Fast Stochastics or Slow Stochastics ??

2008-12-11T20:41:00.001+07:00

One of the technical indicators we teach in the FX Course is the Stochastic Oscillator. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a certain number of periods.
New forex traders typically want to know the difference between Fast Stochastics and Slow Stochastics. They also want to know whether the typical default settings of 5,5 (for Fast Stochastics) or 5,5,5 (for Slow Stochastics) as seen in most charting packages developed for FX are better or worse than the typical default settings of 14,3 (for Fast Stochastics) or 14,3,3 (for Slow Stochastics) seen in stock and futures charting packages. First of all, the difference between Fast Stochastics and Slow Stochastics is just a moving average.

When calculating Fast Stochastics using the values of 5 and 5, the first “5” is the raw value for Stochastics, while the second “5” is a 5-period moving average of the first “5”. When using Slow Stochastics, the first two 5’s are the same as with the Fast Stochastics, with the third “5” being a moving average of the second “5”. Yes, that’s right, a moving average of the moving average. This slows the movement of the indicator down even further, hence the name of Slow Stochastics. By slowing the movement of the indicator down, we will see fewer signals to buy or sell on the chart, but they should be more reliable signals.

By using a larger value in calculating the raw value of Stochastics, we slow the indicator down even more. This is why I recommend to traders using FX charts to use the Slow Stochastics with values of 15,5,5. This combination offers fairly reliable signals that can offer solid entries into trading opportunities. The chart below shows the difference between Fast Stochastics with values of 5,5 compared to Slow Stochastics with values of 15,5,5.

---- forecasters ---- by; Th. Long ----

Forex ; 4 CANDLES STRATEGY

2008-12-07T21:01:00.001+07:00

CURRENCY PAIR - GBP/JPY
4 CANDLES STRATEGY
- Draw horizontal lines on the highiest high and the lowest low of the first Four candles of the day.
- Trade the Valid Breakout of the eigther lines.
- Check Stochastic Slow on 4hours Time frame.
- Trade the direction of the 4hours stoch with higher quantity
- Trade direction against 4hours Stoch with lesser Quantity
- Target the first 50-100pips
- Your stop loss should be the other side of the tunnel
- If your stop loss is hit, set the pending order again.
- Close all pending orders by 5 hours to close of the day.

GOLD
- Plot the Pivot first
- Check the relationship between the pivot and the opening price
- Place Stop Buy 200pips above previous day close and Stop Sell 200pips below Previous day close
- Plot the -+200 above and target the next 200pips or next pivot, whichever is lesser
- A day where the opening price is at the middle of a pivot and a middle pivot, please don’t trade the -+200 consider NO TRADE or wait for price to hit middle of pivot or pivot then apply -+200 from that point.
- Note and Note, any of such potential trade after you must have made your 200pips, you must always lock profit to 100pips b4 you can let it run.

--- by; J. Ayetemimowa ------

Forex; MACD and 25 SMA Daily Trading Strategy

2008-12-02T20:37:00.001+07:00

I use a strategy which is for positional trading and this strategy gives huge profit.
Time frame -Daily
Indicators - Macd(30,45,15)
Simple moving average(25)
Currency pair - Any trending pair.
Buy setup - Buy when Macd (30,45,15) gives buy signal.
Reentries can be made when price retraces to 25 days Sma.

Sell setup - Sell when Macd(30,45,15)gives sell signal.
Reentries can be made when price retraces to 25 days
Sma.
Stop loss - Below /Above previous pivot low/high.
Target - Exit when 25 days Sma starts to drift or use trailing stops to determine safe exit.
You will not get signals every week but whenever you will get it it will give a huge profit.

--- by FxStrtgRevl – Pirate ----

FOREX ; Carry Trade Strategy

2008-11-28T21:10:00.003+07:00

The carry trade, which involves going long a high-yielding currency against a low-yielding one is very popular among long term currency traders. Nowadays, carry traders love the yen crosses due to the very low JPY interest rate, for example, the GBP/JPY or NZD/JPY cross currency pairs. Carry trades are typically held for several month or even years. Currently, when holding a long position in the GPB/JPY pair, forex brokers will pay out over $23 a day per 100,000 units in interest.

Now, when you think about building a carry trade, you should not think in the same terms as you normally think when you trade forex. You have to use much lower leverage, and you have to become a lot more conservative since you are planning to keep the trade for a longer time period. A carry trade can be an amazing opportunity to generate very good passive income ...similar to a real estate investment.

Daily rollover interest debit/credit Formula

Number of lots (Units) x (base currency interest rate - quote currency interest rate) / 365 days per year x current base currency rate = daily rollover interest debit/credit

GBP/JPY Carry Trade Example

Because UK has 5.25% rate, and Japan has 0.25% rate, this cross is very attractive for carry traders looking for buy opportunities only since they want to earn daily interest on the open position. Preferred timeframe's to make trading decisions are daily and weekly charts because they are looking to keep the trade for a longer time period. It really makes no sense to study a 5 min chart to take a carry trade.

A very simple strategy is the moving average cross over, looking to the above example, we only go long when the 5EMA crosses the 200SMA from below (up trend) but we do not take trades when the 5EMA crosses the 200SMA from above (down trend) because the carry trade strategy would focus only on interest-positive trades: in the case of the GBP/JPY, long trades.

When you are long GBP/JPY, most forex brokers will pay out over $23 a day per 100,000 units in interest which is paid on a daily basis. If for example, you keep the trade for 200 days, this would bring an amazing $4600* interest credited to your account not including the pips you lose or gain.

* The above calculation is an example only and is to be used for educational and informative purposes only since the amount actually debited or credited to your account will vary depending on the forex broker. Most brokers display the daily rollover interest fees on their online trading platform.

Carry Trade Strategy

Identify a pair like GPB/JPY with a high interest differential
Apply Technical Analysis and create a rule-based trading strategy using longer term timeframe's only
Only long the currency bearing the higher interest rate: in the case of the GBP/JPY, long trades
Keep an eye on the interest rate differential because it can vary over time

Another strategy is to open inversely correlated positions that are both interest-positive. This way, any losses in one currency's price would be (roughly) offset by gains in the other, while both earned interest. This is the idea behind a balanced basket of interest-earning currencies.

Interesting Carry Trade Pairs

All pairs that include the Yen due to the very low JPY interest rate.

----- by; Betty Samang ----------

Forex ; Slingshot Reversal Strategy

2008-11-23T15:31:00.002+07:00

A slingshot reversal is a reliable forex trading pattern and is defined as a false breakout + reversal and occurs when a major support or resistance point is broken but the currency price does not hold below support or above resistance and moves back into it's previous trading range. The below picture shows a slingshot reversal pattern for the GBP/USD on the 1 hour chart.

On May 15th, the GBP/USD finally broke out it's trading range between 1.9845 (1) and 1.9762 (2). This break below support created a wave of new downside pressure as longs cut their positions and traders sold the technical break below support.

Then a slingshot reversal pattern took place as the cable sellers ran out of steam below 1.9733 (3) and buyers gained the upper hand, and very soon, the GBP/USD start gaining back above it's previous support level only to move higher to 1.9870.

How to trade the slingshot reversal pattern:

1) Try to identify important levels of support and resistance that many forex traders are closely watching

2) When trading 1 hour charts, wait for the market to trade 10 pips below or above the key level (either support or resistance); then put a stop entry order 10 pips above or below that KEY level.

In our case:

When 1.9752 (1.9762 - 10 pips) trades, place an order to BUY cable at 1.9772 (4).

3) If the order is executed, then place your stop 3 pips below it's previous low(3) at 1.9730.

4) Calculating your profit target for 1.5:1 risk-to-reward ratio:

Pips at risk: 1.9772-1.9730 = 42 pips. Here's our take profit target: 42 pips x 1.5= 63 pips (5)

Summary:

The forex slingshot reversal is a reliable pattern with a strong logic behind it because of it's effect on market positioning. Look for major support and resistance levels that could yield forex slingshot reversals.

Forex Indicator Adx - Parabolic Sar

2008-11-16T13:33:00.005+07:00

Forex
Currency Trading with ADX and Parabolic Sar
If there is one thing that a trader would want to know for certain, it would be to catch the bottom or top of a trend.

But simple as it sounds, it is easier said than done. Knowing that a certain price wave is completed, or is just a retracement in the larger trend, becomes more of an art than a science.

In such situations, using multiple sources of confirmation helps to avoid the potential false signals, and preserve our capital for only those situations that provide us with the most favorable risk to reward scenarios. Keeping that in mind, we will use two very different indicators – the ADX (Average Directional Movement Index) and the PSAR (Parabolic Stop & Reverse) - to form a system which should help us to trade as close to the top / bottom as possible.

First we shall look at both the indicators in detail, and find out their characteristics.

The ADX (Average Directional Movement Index)

The ADX is a trend-following system developed by Welles Wilder. Though it can be used as an independent indicator, it t is usually a part of the DMI indicator and determines the market trend.

Therefore, let us also briefly study the DMI indicator. This comprises of two lines – the Plus DI & the Minus DI lines.

The characteristics of the Directional Movement Indicator are: You establish a long position whenever the Plus DI crosses above the Minus DI. You establish a short position, when the Minus DI crosses above the Plus DI.

A simple DI+/DI- crossover is an entry and exit system. However, used that way it produces frequent whipsaws. Hence we combine this with the ADX to reduce these whipsaws.

The ADX thus forms an integral part of this system, as it gives a warning for a market about to change direction. It gives precise interpretations of the price action as follows –

The ADX tells you if there is a trend present or not. It also informs you if it is early or late in a trend.
It informs of a de-trending, of a reversal and renewal.
The ADX however does not indicate the direction of the trend, only the strength of the trend.
Now in our chart here, we have the red line as the minus DI, the blue line as the plus DI, and the green line is the ADX. I have drawn a line at the 20 level for the ADX, since the rise of the ADX above 20 signifies an emerging of a trend.

Overall if we observe only both the DMI lines (the blue and the red) it does give a correct picture of the trend, and keeps us in the correct side of the market.

Simply put, at the area marked with the red line, the –DMI line is above the +DMI line, signifying a downtrend.

And at the area marked with the blue line, the +DMI line is above the –DMI line, signifying an uptrend.

But what about the areas, where the DMI lines have frequent crossings. This is the kind of situation which will whipsaw out any position and this where the ADX is used in tandem.
The indication for an entry into a trend is when the ADX starts rising from the lows. And ideally the ADX should be pointed up at all times when entry is being considered

But we are concerned right now with the end of the trend.

The turning points in markets are often heralded by turns in the DI+/DI- at upper and lower extremes shortly followed by a down turn in the ADX. This setup is near coincident with major turning points.

Thus the conditions for exit are -

The DI+/DI- lines should show signs of declining momentum at their extreme levels, by turning down.
These lines should cross the rising ADX line down.
We look to exit the trade only when the ADX line starts to fall down.
The subsequent crossover of the DI+/DI- lines would give us an additional confirmation of the change in trend.

In case of an existing uptrend, the DI+ line would signs of flattening and then cross the ADX line (which could still be rising). The confirmation of the change of trend to the downside would come only when the ADX starts declining. This would be followed by the DI+ line crossing the DI- line down.

Similarly in case of an existing downtrend, the DI- line would signs of flattening and then cross the ADX line (which could still be rising). The confirmation of the change of trend to the upside would come only when the ADX starts declining. This would be followed by the DI- line crossing the DI+ line down.

This use of the ADX for the exits is called the "turning-point" concept. The relationship of the three lines with the ADX being the highest tells us that there has been an extended price move which is running out of momentum. If we apply our rules to our example here –

We will consider an entry only at this point marked ‘A’, when the ADX has started rising.
We consider exiting the trade, only when the plus DMI has reached an extreme level, and the ADX is turning down at this point.
Even though this is a high probability setup, we can use an additional confirmation factor, since there is some lag in decline of the ADX line, and the subsequent crossover of the DI+/DI- lines.

A lot of times, the crossover and the decline of the ADX occur much after the price has moved a considerable distance in the direction of the changed trend, and hence some profits in the new direction may have been missed.

With the intention of reducing this lag, and the idea that there would be room for further improvement, it was found that the PSAR provided much more timely entry triggers.

PSAR (Parabolic SAR)

The Parabolic SAR (Stop And Reverse) was developed by J. Welles Wilder Jr. and is primarily used in trending markets. Wilder recommended establishing the trend first, and then trading with Parabolic SAR in the direction of the trend.

The Parabolic SAR allows the trader to follow the dots in an upward or downward trend, until the trend reverses. Thus it is also called a reversal system, and is more popular for setting stops than for establishing direction or trend.

Interpretation -

If the trend is up, buy when the SAR moves below the price. This will be the stop level below the current price, which will move up every day until activated (when price falls to the stop level).
If the trend is down, sell when the SAR moves above the price. This will be the stop level above the current price, which will move down every day until activated (when price rises to the stop level).
The concept is that as the price rises, the dots will rise as well, first slowly and then picking up speed and accelerating with the trend. The SAR starts to move a little faster as the trend develops and the dots soon catch up to the price action. This is what we call as activating the stop level, and is taken as a signal to exit the long position.

Drawbacks –

Although it works extremely well in markets with a dominant trend, it fails miserably in horizontal or choppy markets.
If and when prices do not develop consistent trends, it creates a jerky SAR which makes it difficult to enter and exit.
Let us take the following example to get a better idea of the characteristics –

Let us examine the different situations of the SAR as described above.

We look at the initial long position, which we have marked on the chart. We can see that the SAR flips below the price, when the uptrend starts.

Similarly for the downtrend, we notice how it flips above the price, and can be taken as a stop level.

Combining the two indicators to form an effective technique.

In this case, we use the particular characteristics of the PSAR, that it works extremely well in markets with a dominant trend and that it accelerates steadily as the prices trend. The stronger the trend the closer the Parabolic gets to the prices, which is exactly what we are looking for.

So when the parabolic indicator is close to the prices and we have our ADX "turning-point" setup formed, we have all the ingredients for an excellent trade. Even a very small countertrend move will now quickly cross the Parabolic and signal an aggressive entry.

These entries will usually occur before the ADX starts declining. Hence this becomes a very reliable pattern that is designed to identify a major reversal in direction. Another advantage of using the PSAR is that we can use it to define our exits. We should exit our trade when the PSAR flips to the opposite side.

One can apply different money management principles for the exit of a trade, but the basic concept to remember is that a change is indicated when the PSAR flips to the other side of price.

---- by; S.Mangwani --------

Forex Indicator ADX / DMI

2008-11-11T23:55:00.005+07:00

Know Your Indicators – DMI / ADX

Most strategies or techniques in technical analysis involve the use of indicators. But more often than not, most traders use indicators for all kinds of situations which tend to render them quite ineffective.

Just as a carpenter’s toolbox has different instruments which are used for different purposes, each indicator in the tool box of a trader has to be used for a particular situation.

In our Live Trading Room we teach, among many other things, a series of lessons we call “Know your Indicators”, which introduce specific indicators, and go over the characteristics and drawbacks of the same.

First and foremost, there is one point that a trader needs to keep in mind - all indicators are lagging, and it is ultimately price which is the only leading indicator.

Indicators should be used just as they are described – as “indications” for price movements and not as confirmations. While this does not diminish the importance of the indicators, one must remember that a change in price will cause a change in the indicator - not the other way round.

Indicators, nevertheless, play an important part in the building of strategies and techniques - but only if one applies them correctly.

The DMI/ADX is one of the most effective and yet underused indicators. If used with the correct parameters, it can be a very effective trading system on its own.

It consists of two components:

* The Directional Movement Indicator (DMI) is a trend-following system developed by Welles Wilder.

* The Average Directional Movement Index (ADX), is part of the DMI and determines the market trend.

When used with the up and down Directional Indicator (DI) values: Plus DI and Minus DI - the Directional Movement Indicator is considered a trading system.

The rules for using the Directional Movement Indicator are:

* You establish a long position whenever the Plus DI crosses above the Minus DI.

* You establish a short position, when the Minus DI crosses above the Plus DI.

A simple DI+/DI- crossover is an entry and exit system. However, used that way it produces frequent whipsaws.

Hence we combine this with the ADX to reduce these whipsaws.

The ADX is the integral part of this system, as it gives a warning for a market about to change direction. It gives precise interpretations of the price action as follows:

* It tells you if there is a trend present or not.

* It also informs you if it is early or late in a trend.

* It informs of a de-trending, of a reversal and renewal.

* If the ADX line is trading above 20, then the market is in a trend.

* If the ADX line is below 20, it means the trend is not a strong one.

* As long as the ADX line is above 20, you should still consider a trend to be in effect.

The ADX however does not indicate the direction of the trend, only the strength of the trend.

Once we have these basics clear, let us add some filters to these indicators, which will enhance the characteristics.

Now in our chart here, we have the red line as the minus DI, the blue line as the plus DI, and the green line is the ADX. I have drawn a line at the 20 level for the ADX, since the rise of the ADX above 20 signifies an emerging of a trend.

Overall, if we observe only the two DMI lines (the blue and the red) it does give a correct picture of the trend, and keeps us in the correct side of the market.

Simply put, at the area marked with the red line, the –DMI line, is above the +DMI line, signifying a downtrend.

And at the area marked with the blue line, the +DMI line is above the –DMI line, signifying an uptrend.

But what about the areas, where the DMI lines have frequent crossings?

This is the kind of situation which will whipsaw out any position and this where the ADX is used in tandem. For these kinds of situations we define certain parameters, which will help us make a correct decision.

For the effective use of this indicator, the rules for a trade should be:

* The ADX must have 3 consecutive higher readings above 20 to confirm that we are entering into a trend.

* The ADX should be pointed up at all times when entry is being considered

* If at this time, the plus DMI (the blue line) is above the minus DMI (the red line), which indicates an uptrend, then the ADX should have also crossed the minus DMI (the red line). This is a very important confirming factor.

On this ADX/DI crossover, the trend is very frequently confirmed and is a good place to add a position. Or if you failed to take the original DMI crossover entry signal, then this is a good position to enter.

* We place our stops at the low of the bar, where the DMI lines have the crossover.

* We look to exit the trade only when the ADX line starts to fall down.

This use of the ADX for the exits is called the “turning-point” concept.

* First, the ADX must be above both DI lines.

* When the ADX turns lower, the market often reverses the current trend.

* The turning points in markets are often heralded by turns in the DI+/DI- at upper and lower extremes shortly followed by a down turn in the ADX which is above both DI lines.

This sign is near coincident with major turning points. So the reversal of the ADX at these high levels is a good place to take profits and STAND ASIDE.

These rules will help keep us out of a whipsaw trade, give us a safe stop point, and a proper exit to protect our profits.

If we apply our rules to our example here:

We will consider an entry only at this point marked ‘A’, when the ADX has had 3 higher readings

At this point the ADX has already crossed the minus DMI line, so we have an added confirmation to the trade.

We have our stop level clearly defined, and we place it beneath the low of the bar where the DMI lines have crossed.

We consider exiting the trade, only when the plus DMI has reached an extreme level, and the ADX is turning down at this point.

This keeps us in the trade till the end of the trend.

If you notice at the area marked with red dot, the price had a retracement to the downside. But since the ADX was still rising, the -DMI had not crossed above the +DMI line, and the +DMI had not yet reached the overbought level, we could decide to stay with the trend.

And as we can see, price found support at the 21 EMA and resumed its uptrend

---- by; s.mangwani -----------

Forex Indicator

2008-10-29T18:44:00.002+07:00

Forex system Picking Tops and Bottoms

Here is one very nice and accurate trading system that could make your Forex trading entirely about hitting the right spots.
Trading setup:
Time frames: 5, 15, 30 minutes, 1 hour, 3 hour and 1 day – just one chart at the time will be used.
In case you do not have the exact time frames, simply substitute them with the closest ones. For example, 15 min can be changed to 10 min, 3 hour can be changed to 4 hour etc.
20 EMA and 40 EMA on all time frames
ADX 14 for all time frames.
Currency pairs: any.
The idea behind this Forex method is that ADX helps to measure the strength of the trend while 20 EMA acts as a flexible support-resistance line.
Trading rules:
Our first goal is to find the chart with ADX being over 30 mark, which will indicate a strong trend. We start with a daily chart and continue the search moving downwards (3 hour, 1 hour, 30 min, 15 min, 5 min) until we find the chart with ADX being currently over 30.
Note: In case several time frames meet requirements for ADX, we opt for the highest time frame. That's why we start with the highest frame first.
Having chosen the time frame, we are ready to trade the first bounce off of the 20 EMA. We set a limit order close to 20 EMA accordingly: in a downtrend we expect the price to touch 20 EMA from below, then reverse and move down, in an uptrend – from above, reverse and move up.
Always make sure that at the moment of entry you are using the highest time frame with ADX currently over 30. Only then you can expect the price to obey 20 EMA.
That's it.
Initial Stop loss order is placed above (when short) / below (long) the 40 EMA.
Important note: once in the trade stay with the time frame used for entry.
Risks: looking at the charts traders will find that at times the price reverses exactly at 20 EMA, but sometimes it moves even further before making a u-turn. Always be ready to leave some room for the price to make this turn, that's why we suggest using 40 EMA for stops.

Exit rules:
Option 1: Use Bollinger Band with settings (18, 2) for all time frames. Set a profit target at the outside band. Move your profit target as the Band expands or narrows.
Option 2: For traders familiar with Fibonacci tool, profit target can be set to 1.618 expansion level. AB Swing for Fibonacci should be found from the earlier price moves and the actual point of entry should be considered as point C or a retracement.
Option 3: Once the price clearly moves in your favor move the stop below/above (Long/Short trading) the previous price bar. Adjust the stop with each new price bar. Trade until stopped.
Also exit always if ADX goes below 30 on the time frame which was used for entry.
That’s it. Test it and see that it works remarkably well.

P.S. Accuracy of this strategy is quite difficult to backtest/visualize using historical data. If you decide to do so, make sure you do it right and know what time frame should have been chosen for trading at any given time. The easiest way to analyze current strategy performance is by running it in real time.

Tags tag Forex Signal Indicator

Forex : Stop Placement with Average True Range (ATR)

2008-10-25T05:56:00.004+07:00

When working with new traders in the Fx Course, we try to impress on them the importance of using a protective stop in every trade. Identifying and limiting your risk are keys to long term success. However, where we place that protective stop is another matter. The problem is that a 100 pip stop on the EUR/GBP is not the same as using a 100 pip stop on the GBP/JPY.

The volatility of the two currency pairs is quite different and can also change from week to week. So we need to find a tool that gives us a way to quantify the current market environment in each currency pair to determine our stop level. One such tool is the ATR or Average True Range. A simplified explanation of the ATR is that it measures the range of a session in pips and then determines the average range of a certain number of sessions.

For instance, if using a daily chart with a default value of 14, the ATR will measure the average daily range, from high to low of the previous 14 days. This way you are getting a current reading on the volatility of a specific currency pair. The current 14 day ATR for the EUR/GBP is 41 pips while the same 14 day ATR for the GBP/JPY is 239 pips. So we can see why a standard 100 pip stop is not the best way to determine your risk on every trade.

Many forex traders will simply use the ATR for their risk. They would place their stop 41 pips from their entry in a EUR/GBP trade and 239 pips from their entry in a GBP/JPY trade. This is one way to base your risk on the reality of the current market you are trading which can increase your chance of success.

------- by; Th. Long ------------

see Free Forex Signal ...Click here...

tag : Forex Signal Indicator freeforex

Forex : ATR (Average True Range): Reading Volatility

2008-10-25T05:52:00.001+07:00

As buyers and sellers pass through the marketplace throughout the course of a trading session, the price charts will simply reflect the behavior of the two opposing forces, and their varying waves of strength and weakness. Like ocean currents, the market will oscillate between relative degrees of volatility and direction. Volatility decreases and trading ranges develop as the market inhales to absorb capital from both buyers and sellers.

Eventually price action break's out as the volatility increases, and the market exhales in the direction of least resistance. The ATR (Average True Range) gauges the average range from low to high of each candlestick during its respective period of time. In the first segment of the following chart, we can see a trading range develop as the ATR indicated a decreasing amount of volatility.

Eventually as the market became complacent, one side of the market took control; in this case the sellers, as a breakdown occurred to new low prices. Understanding this basic mechanism can help us understand when it is a good time to 'play the range'; as volatility decreases, and 'buy the breakout' as volatility increases.

---- by; A.Rosen --------

Forex ; the current Trend Line Trading Strategy

2008-10-21T18:18:00.007+07:00

I have been demoing a simple trading strategy for a week (29th September-3rd of October 2008) and achieved almost 200% return on investment in a week with $5000 account and I would like to share it and it would be great to have many involved in testing this strategy out.
I am calling this a Trend Line Trading Strategy and it is based on:
Following the trend.
Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here.
Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend? It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here.
TIMEFRAMES:
Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins.
INDICATOR:
I use only 1 Metatrader4 indicator called Swing ZZ(zz for zigzag). It is freely available in the net, just google it and you can download it. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy.
So lets get started shall we? I call this trendline trading strategy because it involves drawing trend lines using the swing highs and lows of the Swing ZZ indicator.
SHORT ENTRY RULES:
(a) look at the timeframe you wish to use and identify the main trend. Get the big picture first, that is very important. For me, when I want to trade on the hourly chart, I first check the daily chart and also like to see what is happening in the 4hr chart as well to see if I can spot an obvious trend or channel or congestion happening in the daily and the 4hour charts. I stay out if there is congestion until breakout of the congestion happens and a trend is established. I draw trendlines in the daily or on the 4rhly charts chart then switch to the 1hr timeframe. I identify trends in the hourly and draw trendline(s) as well.
(b) I place a sell stop order, at least 5pips below the LOW of the candle that touches or intersects the trendline. The trendline can be the daily, 4hrly or the 1hr trendline. You must place your order when that candle closes. Why 5 pips? I don’t know, 5 seems like a good number to me… I have five fingers on each arm and similarly for the legs, so 5 is a number I was born with… Put 10 pips if you want. Note you must wait for price to approach a trendline or very near to the trendline before you place your sell stop order.
(c) I prefer to place my stop loss at least 5 pips above the most recent swing high. You should set your stop loss according to your money management calculations and risk tolerance.
(d) I set my profit target just WITHIN the level of previous swing low.
(e) Trade management: as trade moves in my favour, I move my stop loss to at least 5 pips ABOVE each lower subsequent peaks (lower swing highs).
LONG ENTRY RULES:
Just do the exact opposite of short entry.
(1) Set your buy stop order 5 pips ABOVE the high of the candle that intersects the trendline when that candle CLOSES.
(2) I set my stop loss just below the recent low.
(3) I place my profit target WITHIN the level of the previous high.
(4) As trade moves in my favour I move stop loss to at least 5 pips just UNDER each higher subsequent higher swing lows that form.
SHORT ENTRY EXAMPLE:
The attached is 4hr USD/JPY chart showing short trades that could have been taken and would have been very profitable using this strategy.

LONG ENTRY EXAMPLE:
Attached is USD/CAD daily chart and possible trade entries are shown to give you a visual understanding of how to identify potential trade setup and take them.

Here is a screenshot of the trades I have taken using the strategy above. I have tried 1 min timeframe, 5 min timeframe and 15mins but towards the end, have tended more toward using larger timeframes like the 4hr, 1hr & 30min timeframe so that I don’t stay glued to the computer all day long.

---- by ; Myronn / Fx strtgy rvld ----

Forex Indicator - Forex Chart

2008-10-18T18:53:00.004+07:00

Forex Indicator – Fx Chart Comparison

Forex Chart Indicator Content ;

Main Chart - BrainTrading2sig, EMA 2 & EMA 5,

Indicator Window - NinaStep-MA, FxSnipper ergodic CCI & trigger, SuperwoodieCCI, StochOsc533, FxTrend V2.

Result : SuperwoodieCCI indicator is most reliable & reaction is fastest than other indicator.

--- by;forecasters -----

Forex ; Neat entry RSI and Full Stochastic

2008-10-16T08:19:00.004+07:00

Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
Entry for uptrend: when the price is above 150 SMA look for RSI to plunge below 20. Then look at Stochastic - once the Stochastic lines crossover occur and it is (must be) below 30 - enter Long with a new price bar.
If at least one of the conditions is not met - stay out.
Opposite for downtrend: when the price is below 150 SMA wait for the RSI to go above 80. Then if shortly after you see a Stochastic lines crossover above 70 - enter Short.
Protective stop is placed at the moment of entry and is adjusted to the most recent swing high/low.
Profits are going to be taken next way:
Option 1 - using Stochastic - with the first Stochastic lines cross above 70 (for uptrend) / below 30 (for downtrend).
Option 2 - using a trailing stop - for an uptrend a trailing stop is activated for the first time when Stochastic reaches 70. A trailing stop is placed below the previous bar's lowest price and is moved with each new price bar.
This strategy allows to accurately pin-point good entries with sound money management - risks/protective stops are very tight and potential profits are high.
Current trading strategy can be improved when it comes to defining the best exits. For example, once in trade traders may also try applying Fibonacci studying to the most recent swings. This way they can predict short-term retracements and make sure they will not be pulled out of the trade early and will continue pursuing profit targets at Fibonacci extension levels.

---- by ; Edward revy / Fx strgy rvl ----

FOREX SIGNAL

2008-10-15T08:09:00.003+07:00

Free Forex Signal, 15 Oktober 2008
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.00 am GMT

All Pair – Stop loss 30 Pips

EUR/USD
Pivot : 1.3654
Avg. Daily Range : 233 point
BUY at 1.3630 Exit Target 15 pips
SELL at 1.3527 Exit Target 20 pips

GBP/USD
Pivot : 1.7472
Avg.Daily range : 323 point
BUY at 1.7465 Exit Target 15 pips
SELL at 1.7362 Exit Target 20 pips

USD/JPY
Pivot : 102.18
Avg.Daily range : 221 point
BUY at 101.86 Exit Target 15 pips
SELL at 100.69 Exit Target 20 pips

AUD/USD
Pivot : 0.7041
Avg.Daily range : 361 Point
BUY at 0.6969 Exit Target 15 pips
SELL at 0.6826 Exit Target 20 pips

CHF / USD & USD/CAD – Stop loss 35 pips
GOLD – Stop loss 350 pips ( 3,5 USD )

USD/CHF
Pivot : 1.1331
Avg. Daily range : 168 point
BUY at 1.1395 Exit Target 15 pips
SELL at 1.1348 Exit Target 20 pips

Usd/Cad
Pivot : 1.1521
Avg.Daily range : 307 point
BUY at 1.1697 Exit Target 15 pips
SELL at 1.1590 Exit Target 20 pips

Forex e-book

2008-10-11T15:44:00.003+07:00

FOREX e-Book – Free Download

Forex Chart

2008-10-11T12:57:00.004+07:00

Forex Chart Trading EMA's

FOREX SIGNAL

2008-10-10T08:48:00.003+07:00

Free Forex Signal, 10 Oktober 2008
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.35 am GMT

All Pair – Stop loss 30 Pips

EUR/USD
Pivot : 1.3648
Avg. Daily Range : 241 point
BUY at 1.3627Exit Target 15 pips
SELL at 1.3534Exit Target 20 pips

GBP/USD
Pivot : 1.7181
Avg.Daily range : 327 point
BUY at 1.7094 Exit Target 15 pips
SELL at 1.6981 Exit Target 20 pips

USD/JPY
Pivot : 100.15
Avg.Daily range : 243 point
BUY at 99.95Exit Target 15 pips
SELL at 98.54Exit Target 20 pips

AUD/USD
Pivot : 0.6876
Avg.Daily range : 399 Point
BUY at 0.6750 Exit Target 15 pips
SELL at 0.6542 Exit Target 20 pips

CHF / USD & USD/CAD – Stop loss 35 pips
GOLD – Stop loss 350 pips ( 3,5 USD )

USD/CHF
Pivot : 1.1272
Avg. Daily range : 168 point
BUY at 1.1318 Exit Target 15 pips
SELL at 1.1257Exit Target 20 pips

Usd/Cad
Pivot : 1.1388
Avg.Daily range : 157 point
BUY at 1.1627 Exit Target 15 pips
SELL at 1.1529 Exit Target 20 pips

GOLD
Pivot : 906.47
Avg.Daily range : 4333 point
BUY at 929.40 Exit Target 150 pips
SELL at 909.10 Exit Target 150 pips
Note : Gold – Stop Loss 350 pips ( 3.5 usd )

Forex Trading System

2008-10-09T23:13:00.000+07:00

Forex Trading System - a Free Proven System That’s Profitable

n this article we will look at a free system that’s used by some of the world’s top traders and it’s proven to make profits. If you use this system you will beat 99% of the forex trading systems sold by vendors online, so let’s look at it. The forex trading system were going to look at was devised by a trading legend - Richard Donchian who is considered the father of modern trend following and is considered a trading legend and has influenced such great traders as Richard Dennis and countless others.

The system is Richard Donchian’s 4 week rule.

He originally devised it to trade commodities in the seventies but it’s very useful for forex trading because it works well in trending markets and forex markets are great for long term trends. The system is incredibly simple but don’t let that put you off, it makes money! The system is very robust and based on timeless logic. It’s a well known fact that the best forex trading systems are simple, as they are more robust than complicated ones that have too many elements to break.

Here are the rules:

1. Close short positions and go take a long position when a price exceeds the highs of the previous 4 weeks.

2. Close long positions and take a short position when a price falls below the lows of the previous 4 weeks.

Thats it!

Now the above will work very well in any trending market but in sideways markets it will get chopped about so you may want to consider a filter to take this into account. The filter is to enter on the 4 week rule - but exit the position on a shorter time frame and go flat. 1 or 2 week cycles could be used for this; you would then simply re enter on the next 4 week signal.

Now you can test the above system and you will see it works but most traders wont bother using it - Why? Because it takes tremendous discipline to execute it and it’s not a system that is particularly worried about price entry levels and most traders are obsessed with this. It’s also very often buying breakouts and most traders hate doing this because they would rather wait for the pullback, this is despite the fact most major trends start from new market highs NOT market lows.

Another problem is traders think it’s too simple and prefer trendy systems which are more complicated (which don’t work) this system doesn’t have the buzz factor of being based on artificial intelligence or a neural network despite the fact it will beat most if not all of them longer term.

The pro traders however know its value and many systems by the great traders over the years have used it as a base - including the legendary turtle traders, who made $100 million in 4 years, with no prior trading experience. So yes it is simple but that doesn’t mean it doesn’t work it does. Test it and you will see, so now you have a free forex trading system which since inception, has made traders hundreds of millions of dollars and could make some profits for you tading

--- by; wike fx trading -----------

Forex Chart Comparison

2008-10-07T22:26:00.004+07:00

this Articles - f/details --- Pls contact Admin...

Free Forex Signal

2008-10-07T10:25:00.002+07:00

Free Forex Signal, 07 Oktober 2008
Update every day at 01.30 am GMT ( 08.30 WIB )

Sorry..Internet Connc. Problem.
Today update 03.10 am GMT

All Pair – Stop loss 30 Pips

EUR/USD
Pivot : 1.3533
Avg. Daily Range : 246 point
BUY at 1.3554Exit Target 15 pips
SELL at 1.3440 Exit Target 20 pips

GBP/USD
Pivot : 1.7489
Avg.Daily range : 297 point
BUY at 1.7536 Exit Target 15 pips
SELL at 1.7395Exit Target 20 pips

USD/JPY
Pivot : 102.27
Avg.Daily range : 264 point
BUY at 103.47 Exit Target 15 pips
SELL at 101.05 Exit Target 20 pips

AUD/USD
Pivot : 0.7265
Avg.Daily range : 378 Point
BUY at 0.7283 Exit Target 15 pips
SELL at 0.7063 Exit Target 20 pips

CHF / USD & USD/CAD – Stop loss 35 pips
GOLD – Stop loss 350 pips ( 3,5 USD )

USD/CHF
Pivot : 1.1413
Avg. Daily range : 196 point
BUY at 1.1486 Exit Target 15 pips
SELL at 1.1416 Exit Target 20 pips

Usd/Cad
Pivot : 1.0985
Avg.Daily range : 188 point
BUY at 1.1056 Exit Target 15 pips
SELL at 1.0979 Exit Target 20 pips

GOLD
Pivot : 852.60
Avg.Daily range : 4384 point
BUY at 870.90 Exit Target 150 pips
SELL at 854.00 Exit Target 150 pips
Note : Gold – Stop Loss 350 pips ( 3.5 usd )

FOREX INDICATOR

2008-10-05T08:21:00.003+07:00

Forex ; 4 CANDLES STRATEGY
CURRENCY PAIR - GBP/JPY
4 CANDLES STRATEGY
- Draw horizontal lines on the highiest high and the lowest low of the first Four candles of the day.
- Trade the Valid Breakout of the eigther lines.
- Check Stochastic Slow on 4hours Time frame.
- Trade the direction of the 4hours stoch with higher quantity
- Trade direction against 4hours Stoch with lesser Quantity
- Target the first 50-100pips
- Your stop loss should be the other side of the tunnel
- If your stop loss is hit, set the pending order again.
- Close all pending orders by 5 hours to close of the day.

GOLD
- Plot the Pivot first
- Check the relationship between the pivot and the opening price
- Place Stop Buy 200pips above previous day close and Stop Sell 200pips below Previous day close
- Plot the -+200 above and target the next 200pips or next pivot, whichever is lesser
- A day where the opening price is at the middle of a pivot and a middle pivot, please don’t trade the -+200 consider NO TRADE or wait for price to hit middle of pivot or pivot then apply -+200 from that point.
- Note and Note, any of such potential trade after you must have made your 200pips, you must always lock profit to 100pips b4 you can let it run.
--- by; J. Ayetemimowa ------

Forex Chart

2008-10-04T09:51:00.004+07:00

Forex Chart
(sorry tempor..test)

FiboSwing 1

FiboSwing 2

EarlyBird System

Forex Trading System

2008-10-01T12:39:00.002+07:00

Forex Trading System
The "RickyD" System

It would not help you much to tell you how I do as we all put something different into our trades with emotion and knowledge that we don't even think about. I found that out as I was trying to get the rules down to have an expert made. After many attempts I found the only way to get it was write down what I did and thought about as I was trading and that is what has become the Ricky D Strategy / System.

One thing I have to say as I have heard over and over, I used such and such system and it just didn't work for me. I heard this about the FX Wizard and as far as I am concerned it was one of the best systems I have used. I made good money at it and found and used some of its best stuff here in my system.

So what is the problem? First of all you have to follow the rules and not try to improve it before you know how to use it. I read where the founder of the Turtle System said he did not fear putting it out because only a very few would follow the rules and be winners with the system. So, this system is as good as you will be at following the rules and setup. I have taken the best of many systems I have obtained and made one that works for me. I have added some things as the market has changed since I have been using it and it pretty much works on any market that has some volume and movement, driven by trend or price. Just don't trade it on a choppy market all you do is pay your broker his spread and you lose.
I have worked the settings on these indicators until they work. They can be used on the 15, 30 minute, and 1 hour with success. They will even work fairly well on the 5 minute if anything really does. I like to use the 30 minute and just so you know I don't check other time frames, I just park and trust the indicators.

I trade the 4 majors and trade from 2:00AM till about 10:00AM or the volume drops EST or (-5 GMT). I try not to be in a trade during news releases.

I have found as many have said, a trend is not a trend until it starts to move. I follow what the chart is doing, not what I think it will do. I used to give up to many good trades thinking the market was in a certain trend. My bias did not help me but hurt me and my trades. You can only act upon what is happening on the charts so anything else will kill your trades.

Four Indicators:
CCI (5) Line at +100, 0, and -100
Forecast Oscillator: Rperiod (15) t3_period (3) and b(0.7) Line at 0
Relative Vigor Index (1) Line at 0
ADX (14) Line at 20
(“Pivot” custom indicators / BT1 / BT2Sig / BT2Stop / Volume /)

Directional Indicators:
5MA (Linear Weighted/Close) Red
20MA (Linear Weighted/Close) Blue
100MA (Linear Weighted/Close) Green
200MA (Linear Weighted/Close) Sandal wood

* The cross of the 5MA with the 20 MA favors the direction of the trade, (5MA on top favors Long trade, 5MA on bottom favors Short trade. And don’t trade too close to the 100MA, acts as a resistance line).

Entry (Long):
The CCI needs to be greater than (0).
Forecast Oscillator needs to have both lines above the 0 line with the blue line on top.
The RVI needs to have both lines above the 0 line and the style (Blue) line on top.
The ADX Main and DI+ need to be at least 20 and rising.
No BT2Stop in the way of the entry bar.
Must be 15 pips away from a support or resistance line. (“Pivot” in custom indicator folder)
The 100MA(LW/Close) no closer than 20 pips in the direction of the entry.

Entry (Short):
The CCI needs to be less than (0).
Forecast Oscillator needs to have both lines below the 0 line with the red line on top.
The RVI needs to have both lines below the 0 line and the red line on top.
The ADX Main and the DI- need to be at least 20 and rising.
No BT2Stop in the way of the entry bar.
Must be 15 pips or more away from support or resistance line.
The 100MA(LW/Close) no closer than 20 pips in the direction of the entry.

Exit: The RVI lines cross with the wrong color on top and a slight separation in them (0.2) (or) the RVI Style line crosses the 0 line against the trade. (up while in a short / down while in a long) which ever happens first.

Forex Charts

2008-09-29T00:32:00.005+07:00

Forex Indicator

2008-09-28T09:14:00.002+07:00

Slingshot Forex Reversal Strategy

A slingshot reversal is a reliable forex trading pattern and is defined as a false breakout + reversal and occurs when a major support or resistance point is broken but the currency price does not hold below support or above resistance and moves back into it's previous trading range. The below picture shows a slingshot reversal pattern for the GBP/USD on the 1 hour chart.

On May 15th, the GBP/USD finally broke out it's trading range between 1.9845 (1) and 1.9762 (2). This break below support created a wave of new downside pressure as longs cut their positions and traders sold the technical break below support.

Then a slingshot reversal pattern took place as the cable sellers ran out of steam below 1.9733 (3) and buyers gained the upper hand, and very soon, the GBP/USD start gaining back above it's previous support level only to move higher to 1.9870.

How to trade the slingshot reversal pattern:

1) Try to identify important levels of support and resistance that many forex traders are closely watching

2) When trading 1 hour charts, wait for the market to trade 10 pips below or above the key level (either support or resistance); then put a stop entry order 10 pips above or below that KEY level.

In our case:

When 1.9752 (1.9762 - 10 pips) trades, place an order to BUY cable at 1.9772 (4).

3) If the order is executed, then place your stop 3 pips below it's previous low(3) at 1.9730.

4) Calculating your profit target for 1.5:1 risk-to-reward ratio:

Pips at risk: 1.9772-1.9730 = 42 pips. Here's our take profit target: 42 pips x 1.5= 63 pips (5)

Summary:

The forex slingshot reversal is a reliable pattern with a strong logic behind it because of it's effect on market positioning. Look for major support and resistance levels that could yield forex slingshot reversals.

Forex Indicator

2008-09-27T10:03:00.003+07:00

Forex ; Fibonacci Swing
We were asked to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.
When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries with high chances to win and what's more important it should be able to tell exactly where to exit without need to constantly monitor the price.
Note also, the more traders look at charts, the more they tend to have controversial feelings about the success of a current open trade...
With all this long introduction, it is only left to mention that this strategy will require from traders basic knowledge of use of Fibonacci tool.
What is Fibonacci tool and how to use it? Simply Google "forex fibonacci" phrase and you'll find a lot of information about it.
...This is probably the only reason we classified this trading system as Complex one, not every trader is comfortable with using Fibonacci studies in Forex.
Trading setup:
Time frame: any over 5 min and less than 3 hour.
Currency pairs: any.
Indicators: 5 WMA
Rules:
Look at the price waves. Find the most recent swing high and the most recent swing low = so called Fibonacci A swing and B swing.
Pull Fibonacci from A to B.
To know which direction to pull (up or down) simply look at the trend; if it is unclear, find appropriate AB swings and set Fibonacci in both directions.
Once set, wait and watch the retracement from AB swing to unfold.
During the retracement there are three conditions to be met in order to consider trading:
1. The price must touch 5 WMA.
2. The price must at least touch 0.382 Fibonacci retracement level.
3. The 0.618 Fibonacci retracement level must not fail. Here it means the price should not close below (uptrend) / above (downtrend) 0.618 retracement line. It can touch or poke it, but the level must withstand the "attack".
When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry, below - for Short.
Stop order is placed always 4-5 pips above (downtrend) / below (uptrend) the 0.618 Fibonacci retracement level.
Profit target is set to 1.618 Fibonacci expansion level derived from point A.