forex technical analysis basics

March 6, 2010 by Forex Trading Staff in FX Online Trading | 1 Comment

forex technical analysis basics
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Forex Technical Analysis - Why it Works and How You Can Make Bigger Profits

Many traders don't understand how and why forex technical analysis works and base there trading systems on wrong assumptions and lose. Here we will show the advantages of forex charts and how you can make big profits from them.

1. The Equation for Market Movement

The equation is simple

Market Fundamentals + Human perception of = Price.

Its humans that decide the price of anything and that includes currency prices.

As human nature is constant this is reflected in chart patterns which repeat and repeat again. The fundamental news is not important by itself, its how it is perceived that determines the course of events.

Forex technical analysis simply assumes all the fundamentals will quickly show up in price action and more importantly, the forex charts will tell you how all the traders have perceived them.

You are viewing the truth on a forex chart no guessing or predicting is needed, you are seeing the reality of the market price.

2. Forex Trend Following

Forex prices move in trends up or down and as the currency markets reflect the health of the economy they represent, these trends can last for weeks, months or even years.

A forex chartist doesn't care how or why prices are moving, they simply want to lock into these trends and make money from them.

3. A Game of Odds Not Certainties

Many people think prices move to some mysterious scientific theory - but they don't and there is no way of predicting where prices will go. If of course there were a scientific theory of forex market movement, we would all know the price in advance and there would be no market!

When you trade forex you are simply trading the odds - but don't let that put you off, you can make a lot of money. You're like a good poker player who passes hands by, folds losing ones and hits the big paying high odds hands.

Your trade is your hand and you should be patient, to wait for the right opportunities and not be afraid to fold or pass a trade by, until you get the right opportunity.

4. Best Time Frames

The best time frames are the big trends which last for weeks and months and the overbought / oversold areas within the trend which, last for few days to a week.

Never day trade! This is huge mistake made by many traders. All short term volatility is random and you will never win so don't try it.

You can however swing trade or long term trend follow, it's a matter of choice which method you choose - both work.

5. Choosing Your Indicators

Start by using support and resistance lines and learn a breakout methodology, its timeless and it works and is covered in our other articles. Then, just add a few indicators to help you confirm your trades and your all set.

Forex technical analysis can make you a lot of money if used correctly and this means

- Acting on the reality of price change not predicting

- Using simple robust rule based system

- Being patent and only trading high odds trades

- Controlling losses with rigid money management.

When using forex technical analysis, you have a time efficient way to seek huge profits from the markets and if you can get yourself a simple rule based system which trades the reality of price change and locks into and holds trends, you can make outstanding gains.

About the Author

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For free 2 x trading Pdf's, with 90 of essential info and more on Forex Techncial Analysis visit our website at: http://www.learncurrencytradingonline.com

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What is technical analysis?

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forex economic calendar

March 2, 2010 by Forex Trading Staff in FX Online Trading | Leave a comment

forex economic calendar
forex economic calendar

Which Forex Trading Signals Tend To Be More Trustworthy: Fundamental Or Technical?

For FREE Report regarding high quality, extremely profitable Forex Robot Software and Automated Forex Trading Systems, click the link in the resource box below..
Forex Robot Software typically uses Technical Analysis to generate signals and are performing at exciting levels..
Concurrently, it is surely a fact that any financial report or announcement will influence the market. Generally there is lots of volatility around the time of any forex news. To some degree this is foreseeable, since nearly all economic information are introduced at pre arranged times. This means that even traders who are totally committed to technical analysis for their forex trading alerts would have to know the forex news calendar, just so they are able to remain out of the market each time a news release is expected.
So how can we base forecasts on a chart that merely records the price actions of the recent past? It may help if to think about a currency price like it had some of the attributes of elastic. It can extend to certain limits, after which it'll bounce back. It may not bounce back to exactly where it was prior to; it could possibly stop short or move further, but it will not likely carry on moving in the same direction forever. Technical analysis tools provide us a thought of the energy of a trend so that we can anticipate how far the price will expand and when it could turn back.
However, this does not really explain how many prosperous traders who base their own forex trading signals and systems on trends identified with technical analysis resources. Surely for the newbie, a superb grounding in charts and indicators is important.
Proponents of fundamental analysis will argue that it is the fundamental factors such as rate of interest changes, GDP, sales and employment statistics, etc, that drive the foreign currency markets and for that reason the only trustworthy forex trading alerts are based on these monetary elements. A few actually point out that technical analysts are just looking over the past, imagining patterns from out of chaos, and cannot perhaps hope to forecast any potential price actions.
Which is better? This is a tough question, and one that forex traders do not always consent on. Either can give effective forex trading signals. It is accurate that dialogue on the web has a tendency to center on models dependant on technical analysis but that doesn't necessarily indicate that these types of methods tend to be successful. They're perhaps simpler for the home trader to gain access to, and surely quicker for most people to understand without the need to know a lot about economics or international affairs.
The type of forex trading signals which are required will depend on one thing above all else: which kind of forex market research you want to utilize. The two varieties, naturally, are fundamental analysis, which is structured around monetary performance indicators; and technical analysis, which depends upon charts and statistical indicators.

About the Author

Forex Robot Arena Report Blog � http://www.forexrobotarena.com/robotblog
For more information regarding high quality, extremely profitable forex trading robot software, all with 100% money back guarantees, goto http://www.forexrobotarena.com

Would anyone like to run a forex website?

I originally wanted to build a program to hold all my trading resources together, but I thought why not make a website that can do the same for me, and be of use to other people?? So this website will have things from everywhere, currency rooms, news linked to the currency charts like on Google finance, financial new, trading lessons, articles on investing and various trading instruments, blogs for the users, economic calendars also hopefully linked to the charts, and any more useful trading resources that may come across.

If anyone wants to help supply and manage the content, news, lessons, articles, currency quotes etc... please say so! We'll be in contact.

Or

Is anyone interested in using such a site??

hi adrian,

do you already have a domain name? if you are still looking, you may check the following site. it is currently for sale. you may submit your bid if you like it.

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forex weekend trading

March 1, 2010 by Forex Trading Staff in Forex Trading Company | Leave a comment

forex weekend trading
forex weekend trading

Flexible Forex Day Trading

In day trading, your strategy is very important in determining how much you make. In order to succeed in day trading, you need to be selective in choosing your strategy and than mastering it.

Trend trading is the most popular trading strategy that is used by the global hedge funds and other successful traders. Always remember the saying, " Trend is your friend." Big profit potential lies in trades that capture big market moves. But most of the time the market is not trending. 70% of the market moves occur only 20% of the time.

When the market is not trending, it is ranging. When the markets range,the price action continously rises, touches a top level known as resistance level and then starts falling to a bottom level known as support. This back and forth action continues till such time a new trend is formed in the market. Range trading is not as profitable as compared to trend trading. That's why trend traders avoid doing range trading. When the market is ranging, the best day trading strategy is scalping.

You should not lose sight of the overall market as a day trader. You need to know the overall trend in the market. You can use multiple time frame analysis to determine the overall trend in the market by using the daily of weekly chart and then narrowing it down to an hourly or 30 minute chart. Don't use the 5 minute charts as the noise level at this time frame is too high and if you are not an experienced day trader, you might ger confused by the noise in the market.

Another day trading strategy not known to many is, "Fading The Double Zeros." Currency markets are primarily influenced by the bank order flows taking place behind the scenes. As an individual trader, you may never become privy to the sell side bank order flows. But there are certain psychological double zero numbers that can trigger large order flows. Using this knowledge and placing trades in those price zones can be highly profitable.

There is continous action in the currency markets 24/5. What this means is that the currency markets are open 24 hours, 5 days a week apart from the weekends. You can divide the 24 hours in the currency markets into different sessions like the Asian Session, the European Session and the US Session. There is one strategy known as the London Rush Hour that uses the London Session.

There are many strategies that you can use but in the end whatever strategy you choose, should match your style and personality. It should be less stressful, less risky and more profitable. After selecting one strategy, master it on your demo account. Once you have mastered it only then trade live with it!

About the Author

Mr. Ahmad Hassam is a Harvard University Graduate. What you need is Flexible Forex Day Trading. Give 60 days RISK FREE trial to Forex Income Engine 2.0 Course by Bill Poulos.This course can take you to 5 figure monthly income part time in a few months. It also comes with 8 weeks of personal coaching by Bill. Learn this Swing Trading Strategy that does not need more than 10 minutes every day.

Should I Close Open Trades Made By My EA When ForEx Closes?

Hi, I'm using ForEx Autopilot and was wondering, my open trades come out positive for this week and the market is closed for the weekend, should I leave them open and my EA running or should I close them and start fresh next week?

Start fresh next week.

You obviously have little clue about the FX market and the risk. Using an EA should only be done by the most experienced traders. In the wrong hands... it will kill your account.

There is no "easy way" to trade FX. Not EA's, not alert services, no "special" software. FX is hard work and years of learning. Rewarding..... but certainly not easy.

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100 Pips in Under 25 Minutes - Easy as ABCD! (Forex Trading)

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