Monday, June 4, 2012

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Sunday, June 3, 2012

The Best Forex Trading Indicator

The Best Forex Trading Indicator
Best Forex Indicator Makes Forex Trading Signals Easy To Analyze

The Best indicator Forex is a software system indicator determines exit and entry points. Forex indicator is made to be used for Metatrader 4 software platform. Forex trading strategies like fapturbo, forex trade pro and etc are using the best forex indicator system. The metatrader platform works with best indicator Forex.

Until now traders always looking for the answer about how the forex Foreign exchange is traded. The best indicator forex determined of trading trigger lines, with a signal showing forex traders time to short and time to long. The best forex indicator must be highly accurate, In Forex trading there is no "holy grail", traders must known for having the best Forex Indicator system, finds these points for forex trader for their trading system.

- works in all Forex market situation
- High win ratio
- easy to use
- easy to understand

The best forex indicator never such an accurate trading strategy, as long as the rules are followed. The best indicator forex should have winning number bigger than losing.

Trade GBPUSD

GBPUSD FOREX STRATEGY - London HIGH NOON

This forex strategy has much in common with the london breakout strategy, but does not look at the Asian trading session on the forex market. The pounds dollars is a currency pair that is very popular in the foreign exchange market.

This strategy is based on a daily phenomenon in the GBPUSD currency pair. We look only at 12:00 p.m. to 2:00 p.m. GMT.

This is London time
Trade GBPUSD
Based on this time period we are going to determine entry and exit point.

How to trade
• Open a 15-minute candlestick chart on GBPUSD currency pair
• Make a vertical line at 12:00 GMT
• Make a vertical line at 14:00 GMT
• Make a horizontal line at the HIGH of the candles between the vertical lines you just created
• Make a horizontal line on the of the candles between the vertical lines you just created
• Open a position when the price of the GBPUSD breaks one of the HIGH or LOW line, This is your "entry point"


You could consider buying and selling limit orders to give up your trades to automate.

Always place a stop loss order 15 pips above or below your "entry point".

Set a take profit target of approximately 20 pips until you know the system. On some days it is also easily possible to 50 to 90 pips to reach.

Trailing stops can help you take full advantage of a movement without running the risk that you lose all accrued profits again. A trailing stop is set up on a certain fixed distance from the current market price, as a fixed percentage or a fixed number of pips. The price moves in the right direction then you stay in the trade but is also a part of your profit is locked, so that when the price moves against you will not lose all previously accumulated profits again.

Do not trade on days when there is great news or an event between 12:00 - 14:00 GMT.

Do not trade on days when the price is not break one of the horizontal lines within 1.5 hours. Cancel any limit orders and wait until the next day.

If the difference between the HIGH and LOW the pips is more than 60, it is possible not be a good day. IF the price difference between HIGH and LOW is less than 60 pips, you will probably make a nice profit.

Wednesday, May 30, 2012

Trading with RSI

Trading with RSI
RSI Forex trading strategy

This strategy is based on RSI forex indicator.
Indicator : 14 period RSI Relative Strength Index indicator
Currency Pair: EUR / USD
Time Frame Chart : any

Entry rules:
Open sell When RSI upward through the 70 line and then crosses down the 70 line
Open buy when RSI down through the 30 line and then cross upward the 30 line

The Relative Strength Index RSI is a popular indicator, RSI indicator can help you determine your entry point. You can use other technical indicator as confirmation indicator.

Tuesday, April 10, 2012

What is Forex?


FOREX — the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.
Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
In the foreign exchange market there is little or no 'inside information'. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time.
Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.
Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there is no single universal exchange for specific currency pair. The foreign exchange market operates 24 hours per day throughout the week between individuals with Forex brokers, brokers with banks, and banks with banks. If the European session is ended the Asian session or US session will start, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets.
Average daily international foreign exchange trading volume was $4.0 trillion in April 2010 according to the BIS triennial report.
Like any market there is a bid/offer spread (difference between buying price and selling price). On major currency crosses, the difference between the price at which a market maker will sell ("ask", or "offer") to a wholesale customer and the price at which the same market-maker will buy ("bid") from the same wholesale customer is minimal, usually only 1 or 2 pips. In the EUR/USD price of 1.4238 a pip would be the '8' at the end. So the bid/ask quote of EUR/USD might be 1.4238/1.4239.
This, of course, does not apply to retail customers. Most individual currency speculators will trade using a broker which will typically have a spread marked up to say 3-20 pips (so in our example 1.4237/1.4239 or 1.423/1.425). The broker will give their clients often huge amounts of margin, thereby facilitating clients spending more money on the bid/ask spread. The brokers are not regulated by the U.S. Securities and Exchange Commission (since they do not sell securities), so they are not bound by the same margin limits as stock brokerages. They do not typically charge margin interest, however since currency trades must be settled in 2 days, they will "resettle" open positions (again collecting the bid/ask spread).
Individual currency speculators can work during the day and trade in the evenings, taking advantage of the market's 24 hours long trading day.
If you want to know more about how to start trading in Forex, please, proceed to our Forex for dummies article.

Tuesday, October 4, 2011

OPEN YOUR EYES AND YOUR MIND

People say trading is hard and I agree. Its hard because we dont have the answer. There is no spoon. There is no answer. What we have is our mind and our eyes. I havent heard of any blind traders yet.

In order to be profitable in forex you must train your mind. It seems the more indicators you use the harder it is to trade. Keep it simple and remember the principal of trading. BUY WHEN THE PRICE IS GOING UP AND SELL WHEN THE PRICE IS GOING DOWN.

Can anyone tell me when the price is going up or down in this chart???

MONEY, CURRENCY, ANDFOREIGN EXCHANGE (FOREX)

The most basic questions and concepts we must address involvethe differences between money, currency, and foreign exchange(FOREX). All too often these terms are interchanged. With equalfrequency, the differences are blurred and misconceptions aredeveloped. Aren’t the three terms one and the same? The answeris no.The Barter Process and the Evolution of MoneyMoney is the primal evolution of barter. It was developed as aconvenient means for exchanging goods and services. If my edu-cation correctly serves me, the first recorded book entries dateback 5,000 years ago to the Sumerians who were defined as thefirst society. Book entries could only become a reality as numericsystems were developed. This is how money allegedly originated.Certainly, there were methods to exchange goods and serv-ices before the Sumerians. The barter process appears in cavewall drawings and remains widely used today. However, barterlacks efficiency because it inevitably involves considerable nego-tiation to consummate a transaction. Value must be determinedthrough a process of bidding and offering. Sound familiar? Forexample, suppose an ancient tribesman trapped a few beaverswhile a fellow tribesman caught several fish.
Not needing all the beavers or all the fish, the two may decide to exchange beaver forfish. Depending on the perceived value of beaver pelts in themind of the fisherman versus the relative hunger of the trapper,some ratio of beaver to fish would be agreed upon.Understandably, perceived values will change. The first inklingof seasonality can be deduced from the previous example by over-laying the need for warmth during the winter onto the nonseasonalrequirement for food. Logically, pelts should fetch more fish astemperatures cool. The trapper is likely to fatten up during winter,but go hungry in the summer. This suggests that the trapper willexpand his product line to include meat as well as pelts. This over-comes seasonal problems. Both the trapper and fisherman mustspend the better part of their day accumulating their bounties.Perhaps neither has time to build or maintain shelter. However,another tribesman discovers that his lack of skills as hunter or fish-erman is offset by his ability to construct sturdy huts.The hut builder introduces the concept of cyclical supply anddemand as well as an underlying seasonal influence. He mustbuild huts when the weather is mild and there is easy access tothe ground. His unique challenge derives from his product’s dura-bility coupled with seasonal supply. He develops a prolongedbarter whereby he swaps a hut for a year’s supply of fish or meat.Thus, the hut builder’s commitment to exchange today is carriedforward in payments. Heavens! Was this the first mortgage?The model grows more complex when the hut builder dis-covers that the value of his trade exceeds his requirements forfish and meat. Since he cannot consume all he has bartered for,he decides to use his excess to acquire a wagon from the wagonmaker to transport his building materials and increase his effi-ciency. Perhaps he also exchanges fish and meat for tools. Theincreased efficiency only brings the hut builder more fish andmeat. He decides to train other hut builders with the under-standing that they will work for him and receive a portion of hismeat and fish. The first real-estate tycoon is made. In all likeli-hood, he doesn’t even pay for the land!We see an economic system emerging from barter. All thewhile, however, transactions and relative values must be negoti-ated. Eventually, the hut builder’s tradesmen may decide to gooff on their own. Suddenly, there is competition in the real-estatemarket.