Forex

A thorough understanding of how to effectively use support and resistance is crucial for any aspiring professional forex trader. There are essentially 4 primary ways to implement support and resistance levels into your forex trading routine. The 4 primary support and resistance forex strategies include: using support and resistance to trade consolidating markets, using support and resistance to trade trending markets, using support and resistance to trade breakouts, and using support and resistance combined with candlestick strategies to find confluent areas. Trading Ranges Notice in the chart below how price has been stuck in a trading range between about 135.85 and 131.00 for over 2 months. By watching for price to enter into a trading range scenario like the GBPJPY daily chart below, you can simply buy or sell bounces off the trading range high and / or low. When price gets near the top of the range you can sell with a stop loss above the highest high of the trading range, and wh...

Wikipedia : A pivot point is a price level of significance in technical analysis of a financial market that is used by traders as a predictive indicator of market movement. A pivot point is calculated as an average of significant prices (high, low, close) from the performance of a market in the prior trading period. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations. There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels...

By: Dries Cronje Keep on starting FOREX trading? Why would you not be Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' and 'low investment' these claims have a grain of truth in them, but the reality of FOREX is a bit more complex. As with anything in life, what you put in will determine what you get out. There are two common mistakes that many beginner traders make trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover. This kind of undisciplined approach to FOREX is guaranteed to lose you money, and have you waste your time. FOREX ...

TRADE ANY MARKET THAT MAKES SENSE FOR YOUR LIFESTYLE. DON'T WORRY ABOUT WHICH MARKET IS OPEN, WHICH IS CLOSED. 1. Chart Set Up Save as template: H4 candlestick chart with period separators. Add to this chart a standard RSI indicator set with period (3). That's it...all there is to it! As below: 2. Check Trend on Weekly, Daily, and H4 Charts This is the most important part of this method. All three (3) timeframes (TFs) must be in agreement (confirmation) on direction. Scan through any or all pairs you wish to trade and jot down only those which have confirmation of direction on all three TFs. Do this by observing the RSI. For LONG: RSI should be pointing between 12:00 and 2:00. 3:00 is neutral. For SHORT: RSI should be pointing between 4:00 and 6:00. Again, 3:00 is neutral NOTICE ON THE CHART BELOW THAT THE DIRECTION IS DOWN, OR SHORT. (RSI IS BETWEEN 4:00 AND 5:00 O'CLOCK) Now look at the most recent price action (PA).on the chart below Notice that it is also short. This wi...

It is a well known fact that 90 percent of investors lose money in futures and forex trading, 5-7 percent break even and only 3-5 percent make money. Given the high casualty rate, it is all the more important for investors to approach futures and forex trading in the correct manner. Below are some of the rules that traders should consider following if he is to make money consistently in the futures and forex market: RULE 1 : USE MONEY THAT YOU CAN AFFORD TO LOSE Trade only with "extra" money, i.e, money that is not earmarked to pay bank loans, car installments, housing loans, telephone and electricity bills, etc. One of the major reasons for investing only with extra funds is that your trading judgment will remain objective. RULE 2 : DON’T OVERTRADE Inexperienced traders can easily become overconfident after a number of winning trades. This can lead to overtrading – which is dangerous. One can be right 7 times out of 10 but the three times that you are wrong can wip...