Free Forex Signal - Forex Indicator

Trend Finder Indicator

2011-09-18T09:17:00.005+07:00

Spikes Trend Finder

I want to share a new system that I've been using.
It's very simple, Still room for improvements. Or eventually,
to semi-automate it. And send an email alert to my phone,
When conditions are right.

Well lets get to it.

1. You use the Day, 4h, 1h, Charts
2. Always trade with the trend
3. Always set SL, And TSL.
(EURUSD,EURJPY,GBPUSD,AND GBPJPY = 100/100)
(All others = 50/50)

You start with 2 MA's, An 18 smoothed open, With a 14 smoothed closed
These are to verify over all trend

Next, You will have 3 sets of RSI's on the bottom.

First set : 2 RSI's , An 88 period open, And a 56 period closed, No set min or max

Second set : 2 RSI's , An 88 period closed, And a 56 period open, No set min or max

Third set : 2 RSI's , An 2 period open, And a 2 period closed, set 0 min and 100
max With 20,80 lines, Or 10,90 lines, Your chose

In a downward trend,
You wait until price hits, or passes the first MA,
On the 1h chart,Before you ever look for a reversal.
Of coarse, The closer to the average you can get on
the day chart, the better.

First, Look at the MA's, And make sure they are
staying parallel, Or expanding

Next, You look for a cross, On all 3 RSI indicators at the bottom

Then I place my trade with SL, And TSL.
I don't use a TP, But a TSL instead.
I'm a big fan of set it, and forget it trading

You would just reverse this for an upward trend.

---- sbudij by Spike fx factory ------

Trend Line Scalper Strategy

2011-08-27T10:25:00.005+07:00

Trend Line Forex Scalper provides an easy, yet effective way to scalp the forex on 1 min forex charts. The strategy is composed of the Stochastic oscillator and rising or falling trend lines.

Chart Setup:

• Preferred currency pair to trade: Major Currency Pairs
• Trading Indicators: Stochastic Oscillator (default settings: 5,3,3)
• Time to Trade : Euro and Us Session
• Timeframe: 1 Min

Trend Line Forex Scalper Example

How it works :

BUY TRADE

• Draw a significant rising trend line in a up trending market.
• The currency pair retreats towards the rising trend line but doesn't close below.
• Open a buy trade if the Stochastic oscillator turns back above 20 from oversold readings below 20 (gray circle on the chart above).
• Place your stop loss 1 pip below the rising trend line.
• Price objective 20 pips or better.

SELL TRADE

• Draw a significant falling trend line in a down trending market.
• The currency pair retreats towards the falling trend line but doesn't close above.
• Open a sell trade if the Stochastic oscillator turns back below 80 from overbought readings above 80.
• Place your stop loss 1 pip above the falling trend line.
• Price objective 20 pips or better

See other indicator..... CLICK Here...

---- sbudij / KarawangForex ------ by; Willie VD Perre

Forex Trading Indicators

2011-08-23T10:20:00.003+07:00

FOREX INDICATOR's IV

Forex Opening Range Breakouts

" Elder-rays " Forex Trading System

Oscillator and Momentum Indicator

Fx Strategy for GBP/JPY

3 Simple Breakout Strategies

Fibonacci Levels for Scalping...

Bagovino Method - TRading Strategy

Polarized Fractal Efficiency

Fx Indicator's ; Elliott Wave Oscillator, Juice and MA”

DMI and Psar Trading Strategy

" Ross Hook " Trading Strategy

Forex Warlord ; Bollinger bands and Osma Indicators

Trading Double Tops and Double Bottoms

Trend line Strategy

Accumulative Swing Index

a simple one... Forex Trading System

" FRACTALs " Technical Indicator

“Brain Trading” Profitable Trading System

Walter Bressert System ; Double Smoothed Stochastics

The 60 : 30 : 10 Principle - Trading method

Schaff Trend Cycle Indicator

Improve ZigZag Indicator on Parabolic

Omega Trading System

Speed Resistance Lines Indicator

Trend Indicator

Bollinger Bands Measure Trend

ZuluTrade - The All New Peer To Peer Autotrading Service

' Andrew ' Forex’Trading System

“ Surefire “ Mechanical Trading System

“Surefire” Scalping on 5M or 15M

Heiken Ashi and 14 Ema Indicators

The Fx OverEasy System

The Forex Profit System

Xtreme Pip Poacher - XPP Trading Software

The Secret of the Double Doji

The Donchian Bands Indicators

ANSATSU Forex Strategy

ZULUTRADE Signal Provider Performance

Forex Ultimate Pro Trader

YoutradeFX - Futures Broker

Trend Finder Indicator

FX5 Forex Trading Strategy

....created by SbudiJ - KarawangForex

Forex Trend Following Strategies

2011-04-11T09:05:00.003+07:00

FX5 Forex Trading Strategy
FX5 forex trading strategy is a simple and effective trend following method for any major exchange rate. I hope you can adapt this strategy to suit your trading style.
Strategy Description: An intra day forex trend following trading method, using the
following technical indicators:
• 10 period WMA (Weighted Moving Average)
• 20 period SMA (Simple Moving Average)
• Slow Stochastic (10,6,6 (exponential))
• RSI (28)
• MACD (24/52/18 (exponential))

Forex Trading Rules:
1) Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.
2) BUY the exchange rate when the 10 WMA crosses up past the 20 SMA and the Stochastic is signaling up (fast line above the slow line), RSI > 50 and the MACD histogram >0 and MACD averages crossed up.
3) SELL the exchange rate when the 10 WMA crosses down past the 20 SMA and the Stochastic is signaling down (fast line below slow line), RSI<50 and the MACD histogram <0 and MACD averages crossed down. 4) Try and take profits at or near key levels: Try and take profits at exchange rates ending with 00, 20, 50, 80 e.g. EUR/USD 1.1980 5) Stop-Loss Level: discretionary or below/above most recent level of support and resistance.

----- by Erol Bortucene -------

Trend Finder Indicator

2011-03-20T00:16:00.004+07:00

Forex Trading Strategy - TrendFinder
Ride the daily trend in the EUR/USD pair with the trendfinder system. Trendfinder provides an easy solution for currency traders who do not like to watch the markets all day. It takes less than 5 min a day to check for new trades.

Trading Setup
Time Frame: daily
Preferred Currency Pair: Euro/Dollar
Trading Indicator: TrendFinder download here

Rules For A Buy Trade
1) Trendfinder indicator: Blue band above the red band.
2) Euro/Dollar closes inside the blue/red price channel.
3) Go long @ market on the close of the inside candlestick.
4) Set safety stop @ 200% ATR (average true range) or at the most recent swing low level.
5) Exit the trade if:
a) Euro/dollar closes above the blue band.
b) Euro/dollar closes below the red band.

TrendFinder Forex Trading Strategy, EUR/USD Daily Chart

The chart above illustrates how to trade the trendfinder system. The blue band trades above the red band. We look to buy inside the price channel. The Euro/Dollar closes inside the channel at 1.2880 and we open a buy trade. We immediately place a 200% ATR stop loss below our entry price. 17 days later, the currency pair closes above the blue band at 1.3932 and we exit our profitable position for a 1052 pip gain.

Rules For A Sell Trade
1) Trendfinder indicator: Red band above the blue band.
2) Euro/Dollar closes inside the blue/red price channel.
3) Go short @ market on the close of the inside candlestick.
4) Set safety stop @ 200% ATR (average true range) or at the most recent swing high level.
5) Exit the trade if:
a) Euro/dollar closes below the red band.
b) Euro/dollar closes above the blue band.

More TrendFinder Trade Examples

YoutradeFX - Futures Broker

2011-03-04T08:29:00.007+07:00

YouTradeFX is an internet brokerage and investment firm. Through the company’s website and trading platform, traders can invest in CFD’s (certificates for difference) on stock, commodities, indices and the foreign exchange market
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YouTradeFX has developed automated trading tools (expert advisors, custom indicators and scripts) that require minimal intervention and allow traders to automate their trading strategy, improve discipline, remove emotion, and capture opportunities. Traders can choose from over 20 predefined trading strategies to create custom portfolios and automatically execute trades according to their specifications.
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---- YTFX === by ; sbudij -----

Forex Ultimate Pro Trader

2011-02-25T01:00:00.004+07:00

FREE GIFT - Forex Ultimate Pro Trader - Free Download
Forex Ultimate Pro Trader Signal Software is designed to give signals based on New York Market Opening. This Signal Software reads Bars/Candles on specific time frames which then are analyzed and finally it gives you buy and sell points at which you are safe to trade and target your profit level.
The Signal Software uses 1:3 Risk Reward Ratio, which means this target is 3x higher than the Stop Loss. In addition with three level profit taking points you can set your goal according to the market and take advantage of the maximum profit.

Forex Ultimate Pro Trader....FREE DOWNLOAD

Related Indicator.... See...Forex Trading System...

ZULUTRADE News Update

2011-01-13T22:57:00.007+07:00

I . ZULUTRADE Signal Provider Performance
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see..MARCH 2011...update…ZULUTRADE Signal Providers Performance... Click here

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Thank you for your interest and we look forward to having you join our family of Zulu traders

--- sbudij - Karawang Forex --------

ANSATSU Forex Strategy - Free Download

2011-01-10T11:56:00.003+07:00

Free Download - Ansatsu Trend Follower System

As you probably know, the Forex markets sometimes trend and sometime range, right?
Well, I just downloaded a Indicator & PDFfile explaining the "Trend+Range" system which claims to trade profitably BOTH the trend AND the range using the same system.

This system is designed for longer time frames, it’s a trend following system that just ride the trend to the maximum profit, you can use shorter time frames but you will be exposed to more market noise,

Here's the free download link: Ansatsu Trend Follower System / Template

This system is based on a few custom-coded indicators for the MetaTrader platform, so you need to download the MetaTrader platform first.

Happy Trading - SBUDIJ

The Donchian Bands Indicators

2010-11-16T13:38:00.007+07:00

Forex Indicator The Donchian Bands
The Donchian Bands (or Channel), named after Richard Donchian, are bands of High and Low of price. They are very useful for projecting support and resistance levels of price and define boundaries for price action.

The Donchian Bands are calculated in a simple formulas:
Upper Band = Highest High of X periods
Lower Band = Lowest Low of X periods
X is the calculation period of the Donchian Bands.

How It Is Used
The Donchian Bands are mainly used as a breakout indicator - they define support and resistance and generate entries as price breaks these levels. Because Lows and Highs usually correlate with Support and Resistance level, this indicator is useful in objectively defining Support and Resistance levels.
However, it can also be used as a reversal signal - entering when price touches a band and reverses its direction. Before using the indicator in this fashion, confirm the validity of the psychological level by demanding at least 2 touches at the level. This ensures that the signal is strong and enhances its reliability.
Another way of trading the Donchian Band is using its Middle Band. The middle band is the average of Upper and Lower band, and can also be used to gauge trend. Entry signals are generated in the following way: When price crosses the middle band from below - buy, and when price crosses from above - sell. It can be a powerful signal when trend strength is confirmed (with Support and Resistance or indicators).

Trading with Donchian Bands
As described, there are several ways of interpreting and trading the Donchian Bands. The most commonly used is the breakout:
Long Trades - Long trades are entered when price breaks above the 20-period Upper Donchian Band. Conservative traders wait for price to close above the Donchian Upper Band to enter.
Short Trades - Short trades are entered when price breaks below the 20-period Lower Donchian Band. Conservative traders wait for price to close below the Donchian Lower Band to enter.

Download Donchian Bands for MetaTrader 4 CLICK Here...

.....Others Indicators...Click Here....

Forex Trading Strategy - Double Doji

2010-08-08T22:39:00.004+07:00

The Secret of the Double Doji
Today we've got you a complimentary PDF describing one
of the simplest but most profitable strategies you can ever
use in your FX trading...

Secret Of The Double Doji…. Click here - Free Download PDF

The strategy was created by Vladimir Ribakov, one of the
finest traders around. Vladimir is one of a VERY few people
who actually trades for a living.

The "Doji" pattern is one of the most incredible patterns among the
Japanese candlesticks. For some reason it is not referred to very often.
Maybe that explains why it is extensively used by pros…
The Doji hints us that the market is in a state of balance of powers: the buyers' strength has run our, but so is the sellers'. So this is a state of temporary calmness, just before a major move.

The shape of the candle can tell us all. Every candle tells its part of the complete story. We just need to learn how to put together this puzzle.

I found it to work best on the 1-hour, 4-hours and daily charts.
The best currency pairs are the ones that involve the USD, and also all
the Yen crosses (EUR/JPY, GBP/JPY, AUD/JPY etc.)

I'm proud to have the opportunity to present to you such a successful
strategy, and to help you reach your financial goals.

...sbudij....by; Vladimir Ribakov

Xtreme Pip Poacher - XPP Trading Software

2010-07-27T08:49:00.008+07:00

XPP works with outstanding profitability on FOUR of the main currency pairs.
The EUR/USD, USD/JPY, GBP/USD and the USD/CHF.
It also works with ECN Brokers as well as 4 or 5 digit Brokers.
There are no restrictions.

“This Is REAL, GENUINE, PROVEN TO BE PROFITABLE
And There's Strictly No Hype Or BS”

The software I use to make an average of $15,000 per month.

The software I use to stick two fingers up at the unscrupulous brokers who might try and cheat me. It does this through its highly sophisticated BDT mechanism.

The software that uses a complex trading method I learnt from my mentor – the best currency trader I’ve ever had the fortune to meet.

The system that exploits a glitch in the currency markets, meaning that it’s completely legal.

The software that was coded by an expert developer.

The software that takes just 12 minutes of your time a day – all you have to do is monitor it while it trades.

The only software that I use after trying and failing with over 550 trading systems.

The only software that I use after 26 years of trading.

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If you're struggling to make money from Forex, this confidential tool is exactly what you need...

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# Worried about your risk? This incredible tool risks only 2% per trade

You start using a new system just as it enters a trending phase.
The system makes money over the first week or for the first 20 trades.
You can’t believe it - you think you’ve found the Holy Grail!

Xtreme Pip Poacher Trading software - by; sbudij

The Forex Profit System

2010-03-16T18:55:00.011+07:00

With extracts from the article “The Forex Profit System”
In this tutorial, I will be going through how you can benefit from EMA and Psar …. This System Iam combined w/ ASI and Pip Boxer indicator

This System Works with all types of time frames & Currency

Setting :

Time Frame 1M and 5M ( I used 5m f/ scalping )
EMA 25, EMA 50, EMA 100
Parabolic Sar : .02 and 2 ( default )

Time Frame 15M, 30M, H1
EMA 10, EMA 25, EMA 50
Parabolic Sar : .02 and 2 ( default )

Window Indicator
Accumulative Swing Index / ASI
Pip Boxer Indicator period 14 or 7

Buy = Long When the EMA 10 crosses The 25 and 50 OR when the EMA 25 crosses The 50 and 100 – UP from the bottom
See.. the ASI indicator and / or Pip Boxer indicator on the bottom / below 25 %

Sell = Short : If the EMA 10 cross The 25 and 50 OR When the EMA 25 cross the 50 and 100 - Down from the Top, you go Short / SELL
See.. the ASI indicator and / or Pip Boxer indicator on the top / more than 75 %

MAKE SURE THAT WHEN YOU GET INTO YOUR TRADE THAT THE PARABOLIC SAR IS ON THE BOTTOM WHEN YOU GO LONG...AND ON THE TOP WHEN YOU GO SHORT

Exit Trade : The best Time to Exit a trade is when the price crosses back down all 3 EMA’s on the Chart…

Images 1. chart GBP/USD TF 5M

Images 2. Chart GBP/JPY TF H1

Happy Trading ! - SBUDIJ -

The FxOverEasy System

2010-02-23T09:30:00.004+07:00

This system work off 15 Min Charts. We are looking for 3 Things…3 reasons to entri the market.

1. DIRECTION

SHI Channell which automatically recalculated in real time gives us the direction we are going to trade. If slope is down we are only looking to sell. If Slope is up we are looking to buy.

IF THE THE CHANNEL IS THIN ( NARROW ) WE DON’T TRADE

If Price falls outside the channel…we don’t trade ( unless in trade already ) we wait for a new channel to form

2. ENTRY / EXIT

Remembering we only trade in the given direction of the slope of the SHI Channel

The Second is LaGuerre. When LaGuerre line cross down through .75 line ( top line ) look to SELL…..When the line crosses up thru .15 line ( bottom line ) look to BUY… if JUICE is still Green leave trade to opposite side of channel if it is Red then Exit trade when LaGuerre Reaches its Mid line (.45).

Perkyasctrend1 is for the weary and the last indicator to normally show Pink Dot Sell – Blue Dot Buy. This Indicator not Necessary for advance traders

Safety Stop…normally are 15 pips

3. VOLATILITY

This last but not least Indicator is called JUICE…. Never enter a Trade when Histogram is Red if all Indicators line up this is the last check and the Histogram shoul be Green

REMEMBERING.!!! We only Trade in the Direction of the Slope of the SHI Channel

Heiken Ashi and 14 Ema Indicators

2010-02-18T08:58:00.003+07:00

I was reading up on placing trades using EMA indicator and using other indicators and came across this idea and just started to try it out:
In MT4 open 8x daily charts (any major and crosses) add 14 EMA and Heiken Ashi (as supplied with MT4).

Buy Signal: When the 14EMA is in an up trend and a white heiken ashi bar closes above the 14EMA. This is the signal. Enter when the next white bar (or it might be 2x bars away) exceeds the high of the signal bar. Place 200 pip SL and watch the trade evolve. You will need to check back and monitor daily.

Sell Signal: reverse to the above and Entry signal when the red bar exceeds the high of the signal candle. SL= 200.

I have checked it manually on a few charts and this is profitable.

Below : I present Heiken Ashi Chart in combining with StepMa_NK, SuperwoodieCCI and Momentum 8.

It may take a few days or a week etc for a trade to evolve, but at least you can see trade setup.

“Surefire” Scalping on 5M or 15M

2010-02-13T09:33:00.002+07:00

combines surefire indicator with other indicator
continuing my last posting about " surefire " Mechanical Trading System , in this time I try presenting some indicators combined to surefire indicator

First…Download Surefire Trading System template file Click here

Time Frame 5M or 15M

Indicator choice to be paired with “surefire”

Main Chart :

“SUREFIRE” Template
Super Signal
Zig_Zagy
SMA 200

Indicator Window
1. StepMA_Stoc_NK
2. PipBoxer - Period 7
3. J_TPO - Period 10
4. Accumulative Swing Index
5. GoldMiner Trend

Below are examples of Indicators chart...Click to enlarge

Happy Trading....

“ Surefire “ Mechanical Trading System

2010-02-11T18:57:00.007+07:00

Hi, this is Jeff Miller from Forex Cash Evolution team.
I am about to give you a simple but powerful mechanical system ‘Surefire Forex Trading System’.

This mechanical system is a DAILY system.
This is how it works: You can open the chart (for any pair, you might trade as many pairs at the same time as you want). Then, you spot the signals, enter the orders, then close the charts, shut down the computer, and go to sleep. Next day, you open the charts again, check your existing orders to see how much you have made.

Let dive into it. I will make it very simple and short.

1. Download Surefire Trading System template file Click here…
2. Open a daily chart (you can trade on any pair, but major pairs are recommended)
3. Make your trades. Here is how, let me explain:
The template file is basically to set up two following indicators candlestick chart:
- RSI (8) (white color)
- EMA (8) (cyan color)

You don’t need to know what are these two indicators. Please behind them. Here is what you need to know:
1. Enter a short order when: The RSI crosses its moving
2. Enter a long order when: The RSI crosses its moving
3. Stop Loss: You should only risk 1% of your account per the high of the previous DAILY bar if you are buying, previous bar if you are selling.
4. Take Profit: Any, 30-50 pips are recommended.

Below are some examples of Selling / Buying

Selling Order
The RSI crosses its moving average from above.
BUYING order
The RSI crosses its moving average from below

Happy Trading..

Jeff Miller / Forex Cash Evolution

' Andrew ' Forex’Trading System

2010-02-06T23:58:00.005+07:00

Currency pair: any, but better cross-pairs that give good trends.
Time frame: any, but usually 4-hour
Indicators: supertrend, nonlagdot (value: 20)
Entry rules.

Buy: a dot of Nonlagdot changes from red to blue. At the same time dots of nonlagdot should be above the Supertrend line. Also the Supertrend line should be green. A position should be opened by execution of a pending order. The order is placed on the upper point of the market extremum, which is formed after the first rebounce of the market downward (when closing price is lower than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then buy. However, if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to red, the order shoud be canceled.

Sell: a dot of Nonlagdot changes from blue to red. At the same time dots of nonlagdot should be under the Supertrend line. Also the Supertrend line should be red. A position should be opened by execution of a pending order. The order is placed on the lower point of the market extremum, which is formed after the first rebounce of the market upward (when closing price is higher than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then sell. However, if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to blue, the order shoud be canceled.

Market entries without placing pending orders are not recommended.
Pending orders for market entries are placed with the regard of the amount of the spread and additional 3 pips.

Exit rules
I exit when:
1. The price touches the Supertrend line, or
2. The Supertrend line changes its color, or
2. The price touches the first line of the Fibonacci fan. The Fibonacci fan is constructed from the point of the market extremum at the beginning of its movement and up (or down) to the opposite extreme point of the current market, that is, from the bottom to the top of the movement (when buying) and from the top of the movement to the bottom (when selling). It is important not to confuse: the Fibonacci fan is constructed not from the market entry point, but from the point of the beginning of directional movement or trend (up or down). Fibonacci fan line, which is closest to the price, serves as the exit level. And the exit order should be moved on this line.

Stop-loss is set:
1. On Supertrend line, or
2. Below near price swing, or
3. Under (over) the closest extremum of the market, which exceeds the Supertrend line in the opposite direction.

Stop-loss order is placed with the regard of the amount of the spread and additional 3 pips.

The following money management is recommended: either not more than 10% of the capital per trade, or a progressive system (e.g. Fibonacci or semi-martingale). Martingale is not recommended because it is far too risky in case of the lack of capital after several consecutive losing trades.

Adding is recommended solely to profitable positions after the regular change of Nonlagdot color in the direction of the current trend.

ZuluTrade - The All New Peer To Peer Autotrading Service

2010-02-02T10:06:00.006+07:00

ZuluTrade was founded in 2006 by Leon Yohai. ZuluTrade bridged the gap between valuable information in money markets and trade execution by converting the advice of some of the most professional and talented traders globally, to a rapidly executed trade.

There was a number of challenges. The existing autotrading technology could not allow to trade multiple accounts at the same time, since scaling problems could occur at the broker's side. We had to sit down with the brokers and redesign the APIs (in some cases we have developed APIs of our own) in order to accommodate all the demand in large scale We had to develop from scratch the API for the so famous MT4 platform, since Metaquotes does not provide any API. In addition, other brokers offered non functional APIs that had to be redeveloped in order to be able to accommodate multiple accounts at the same time. The concept of Zulutrade is to offer an open environment, where traders globally could connect any trading platform and share their knowledge, plus a rebate every time someone uses their knowledge as a live trade.

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Any individual can become a ZuluTrade signal provider. It is not possible on ZuluTrade to misrepresent the performance of the signals generated. If ZuluTrade shows a profit or loss, it is accurate, because details are confirmed by the dealing broker’s statements. For each pip stated in the performance section, there is a trade registered in the broker’s backoffice. The results are a combination of hypothetical and actual results.
A signal provider places trades on his or her account, and all clients that have selected this provider in their account settings page receive these trades on their accounts, unless they do not have enough usable margin, or have their max open lots set to low. Signal providers provide signals for all clients who select them in their accounts settings page.
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----- by; KarawangForex ------

Bollinger Bands Indicator Measure The trend Forex

2010-02-01T23:37:00.007+07:00

Bollinger bands include the development of courses within an envelope used to both support and resistance, an indicator of trend and volatility.
The standard deviation Bollinger bands is calculated based on market volatility. More courses vary, faster bands differ.

According to John Bollinger, the only use of this system does not generate strong position and should be used with other technical indicators.

Defaults

- A simple moving average 20 days

- High Band = moving average 20 days + 2 standard deviations to 20 days of average

- Low Band = moving average 20 days - 2 standard deviations to 20 days of average
Use of Bollinger Bands

- Identify a change in trend

The price changes tend to occur after a narrowing of the bands.

Bollinger Bands

- Measure the Force of a trend

The greater the gap between the lower band and upper band, the greater the tendency is strong. Lessons emerging bands give a strong signal of continued trend.

Bollinger Bands

- Playing round trips between bands

Tapes can be used as support and resistance. After touching a band, classes tend to want to go touch the opposite band. This technique may be useful in a market without trend and when the bands are parallel.

Trend Indicator

2010-01-31T10:10:00.003+07:00

Catch Trend If You Can With These Forex Indicators
Recognizing positive trends in any market is difficult and in the forex market, getting in or out too late could mean your entire bankroll. You do not have to be the best of the best in order to make a profit, but you do need to get in at a low enough point and get out at a high enough point to make a profit. If you do not recognize the right forex trading signals, you will wind up getting buried and be out of the game before you ever even got your feet wet.

In this forex training on trend following forex indicators, we will start with using crossover techniques that are specifically aimed and recognizing new trends that are developing. Some of the more popular are using the MACD and moving averages.

If you are looking for an example, when the EMA (5) crosses with the EMA (20), you have the crossing of a long term trend with a short term trend that is showing a direction of profitability. You can use the same principles when looking at the MACD crossover and over time, you will learn to pick up these trends earlier and earlier leading to more opportunities for profit.

At this writing, a perfect example of this occurred. During the market today, the 4 hours chart of the GPB/USD pairing had the TRIX (15,9) moving dramatically upwards. At one point, it had actually gone up 100 points. This is a prime example of a great money making opportunity in a forex market.

Two other popular trend following free forex indicators are the ADX and Supertrend.

The Supertrend model was developed specifically for spotting trends in the forex market and is extremely effective. That should be apparent by the name! The ADX is also very popular and has led to spotting very profitable situations over the years. Noticing a crossing at the 17-23 level (we use 20) is a great indication of situation that you will want to look at. Noticing where it is crossing on the DI- and DI+ line will allow you to figure out if you should purchase or get out if you are already involved in an investment.

Learning at least one trend indicator is a necessity, but learning multiple ones can only lead to good things. Like anything else, if you have more than one successful way to read a situation, you can look for a time when all of these forex signals that the time is right to get in or out of your forex investment. If you have conflicting information, you know you should stay away and wait for a better opportunity to risk your money.

---- by; Daniel S ---------

Speed Resistance Lines Indicator

2010-01-27T07:05:00.004+07:00

Interpretation
Speed Resistance Lines are used to define price support levels. For example, if a security is in a rising trend, its price will usually stay above the 2/3 Speed Line. If prices do penetrate the 2/3 line, they will generally fall all the way to the 1/3 line before regaining support.
Speed Resistance Lines or SRL, also known as Speedlines, are tools to find possible support and resistance levels for an existing trend. SRL were developed by Edson Gould and is similar to Fibonacci Fans indicator. Speed resistance lines combine trend lines and percentage retracements to predict support/resistance levels and also measures the speed of a developing trend.

A set of Speedlines consists of three lines originated from same point at left and are extended to the right side. The first line is created by connecting a recent low to a recent high (in an uptrend) and a recent high to a recent low (in a downtrend). Now a vertical line is plotted covering the vertical difference between the low and high. The second and third lines are plotted in a way that they originate from the same point of first line origin and intersect 1/3 and 2/3 levels of the vertical line. Traders can plot more than one set of SRLs on same chart as the trend develops and new highs/lows are formed. Also many traders use 1/2 or 50% lines to find trend changes.

When the price is in somewhere between two of these lines, the upper line is considered as resistance and lower line is considered resistance. If mid line is crossed (from above/below), the new upper and lower lines become support and resistance levels. Generally if prices cross a line, they fall speedily to the next line. Sell signals are generated in an uptrend when the price cross third (lower) line from above; and buy signals are generated in an downtrend when the price cross third (upper) line from below.

Omega Trading System by Forex Neutrino

2010-01-23T20:39:00.006+07:00

Forex Neutrino Team just sent me an email and exclusive PDF File Trading Manual incl. Indicator from Omega Trading System. You should take a look / Free Dowmload

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This system is based on the exact systems that the elite traders
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ZigZag Indicator ; Improve ZigZag on Parabolic

2010-01-20T15:33:00.007+07:00

ZigZagOnParabolic MetaTrader indicator — has been designed based on the 2 standard and popular MT4 indicators — The ZigZag and the Parabolic SAR[PSAR], it tries to show a better version of the ZigZag indicator by marking the Extreme Point of the price with a little delay as compared to the original ZigZag. Standard ZigZag looks for new extreme points by searching the percentage deviation of the price from the previous extreme point[highest or lowest]. The new ZigZag does so by using a different technique and based on the PSAR indicator. It looks at the Parabolic SAR indicator. Both ZigZag and the Parabolic SAR are drawn on top of the chart. The little delay in this new ZigZag is for the better and not for the worst. For all those who used the standard zigzag, they will know how unreliable it is on that chart.

Input parameters of the indicator:

Step (default = 0.02) — standard Parabolic SAR indicator setting.
Maximum (default = 0.2) — another standard Parabolic SAR indicator setting.
ExtremumsShift (default = true) — if true then the extremes are shown at their actual places; if false then the extremes are shown at the points in time when they were detected. Useful to see the delay between the actual extremum appearance and its detection point.
History (default = 0) — the amount of bars to use for calculation of the indicator. Change only if your PC is really slow. 0 — all bars are used in the calculation.

Although the standard ZigZag indicator cannot be used to for trade entries as it is very unreliable, this new improved zigzag indicator can be used as entry or exits. Can be used to detect support and resistance levels as well.

Here is one of the simplest way we could use this indicator to identify support and resistance levels and trade them as they break. Now adding some pivots and fibos together to it could produce some great results I believe. This will be almost a pure price action based system.

Most of the bad trades will have the opportunity to close at breakeven. Now, with the added fibos etc.. or maybe overbought and oversold indicators... they may allow us to avoid some of the bad breaks, therefore avoiding to trade them.

--- by ; bossxero's FxWarrior -----

Schaff Trend Cycle Indicator

2010-01-16T16:52:00.007+07:00

Schaff Trend: A Faster And More Accurate Indicator
The Schaff Trend Cycle Indicator is the product of combining Slow Stochastics and the Moving Average Convergence/Divergence (MACD). The MACD has a reputation to be a trend indicator, yet it has an equal reputation to be lagging due to its slow responsive signal line. The improved signal line gives the STC its relevance as an early warning sign to detect currency trends.

How the STC Works
The STC detects up and down trends long before the MACD. It does this by using the same exponential moving averages (EMAs), but adds a cycle component to factor currency cycle trends. Since currency cycle trends move based on a certain amount of days, this is factored into the equation of the STC Indicator to give more accuracy and reliability than the MACD.

Since the MACD is nothing more than a series of EMAs with a signal line, the STC has improved on the MACD. MACD has a 12- and 26-period EMA with a nine-period signal line. STC Indicator improved on this by incorporating a 23- and 50-period EMA with a cycle component used as the 10-period signal line. Since we can factor cycle trends based on X amount of days, we can then know how far and how long a trend lasts in terms of potential pips to earn.

In terms of indicators both old and new, the STC Indicator is quite original in its conception. Never before has an indicator been developed using a cycle component. Most use some form of moving average, particularly EMAs, as a base because it's easier to calculate and it focuses on recent prices rather than a simple moving average's long data set of closing prices. (Learn more about stochastics )

STC Development
The STC Indicator was developed primarily for fast markets, particularly currency markets, yet it can be employed in any market.The trend in the modern day is to develop more accurate, reliable and early warning signal detectors to follow prices more accurately using the old models. The invention of the computer made it able to capture speed, accuracy and reliability of prices more uniformly, because the computer eliminated the need to calculate long equations using pen and paper. So, any new modern indicator will always have a higher reliability factor when a signal is generated.

However, as reliable as the STC Indicator may be, never will an indicator be perfect. The reliability factor may be higher but slight problems exist because of the STC's ability to stay in overbought and oversold markets for extended periods. For this reason, the STC Indicator should be used for its intended purpose: to follow the signal line up and down and take profits when the signal line hits bottom or top. Eventually another signal will generate.

An Example
The technical code for the STC works like this. Inputs: TCLen (10), MA 1 (23), MA 2 (50). Plot 1 (_SchaffTC(TCLen.MA1, MA2), Schaff_TLC. Plot 2 (25). Plot 3 (75).

Source: Standard Pro Charts
Take a look at the hourly chart of the GBP/JPY, the granddaddy of currency pairs. The MACD generates its signal when the MACD line crosses with the signal line. The STC Indicator generates its buy signal when the signal line turns up from 25 to indicate a long or turns down from 75 to indicate a short. Notice how many more signals the STC generated compared to MACD. It served as an early warning of trend change on the far left with the long red candle. A sell signal was generated at 142.50 and stopped at 139.50, a 300 pip move. While the MACD lines hovered around 140, the STC line generated a buy signal at about 140.00 and stopped at 142.45, a 245 pip move. The next sell signal was generated at about 144.00 and lasted until 141.50, a 250 pip move. These moves occurred ahead of the buy and sell signals generated by MACD.

Indicator Issues
Notice how many times the STC line resulted in a straight line to signal an overbought or oversold market. One certain aspect is that oversold markets will eventually become overbought and overbought markets will become oversold, especially when it comes to the currency cycle aspects of this indicator. Yet that is not a signal generator. Overbought or oversold markets represented by a straight line can in many instances still represent 200 points on the upside, as it did at the overbought mark at 14:00 in the middle of the chart. This is the small problem with the STC Indicator. The recommendation is to wait for the signal before jumping in.

One can increase the cycle count signal line from 10 and adjust upwards to fit the exact market. This would represent smaller market turns and a more accurate reading. Caution is advised not to increase the cycle count higher than 40, since that is the maximum currency count. One can also adjust downward to generate many market turns, but they may not be accurate signals. For longer time framed charts such as the weekly, it is recommended to adjust the EMAs to 12 and 26 or 7 and 13, and allow the same amount of cycle counts at 20 as the signal line. For shorter time frames, such as the 10-minute chart, increase the EMAs to 115 and 240, and allow the same cycle count. A personal recommendation is to allow the indicator to work as intended with the recommended settings, especially when it comes to cycle counts. Better to adjust the EMAs rather than the cycle count trigger line if one has to adjust at all.

Conclusion
The inventor of the STC Indicator allowed the full knowledge of formulas and codes to be released in 2008, so the trading public is now becoming aware of its use as an early warning trend signal. I have personally used and profited from its use on many occasions, and I have personally used the recommended settings. The interesting aspect is that this indicator is forward-looking, and is considered a leading indicator. This means false signals are very rare if ever generated. Plus, signals are generated much faster than the old indicators, such as MACD. For another recommended indicator that works as intended, this is a good one.

---- by Brian Twomey ------

The 60 : 30 : 10 Principle by "Jason Fielder " trading method

2010-01-11T08:24:00.013+07:00

Fellow trader…
Last week I receive email from “ Jason fielder “ about explanation of trading method which he creates
There is 3 e-book consisted of : The 60 : 30 :10 Principle , Forex Scalping Cheat Sheets and Forex Cheat Sheets

in this posting I enclose description and enclosure e-book / Free Download.

My name is Jason Fielder, and in this groundbreaking report I am going to tell you about a little-known "methodology" that will instantly change the way you trade... from the moment you begin applying it.

You're about to learn:

• What the "60:30:10 Principle" is and how understanding it can DOUBLE your trading accuracy overnight...
On average, the markets are in a trending mode only about 30% of the time, breakout mode only about 10% of the time and in a counter-trend, or ranging mode about 60% of the time.
This “60: 30: 10 Rule” exists across all markets and all time-frames

* Two (2) tested and proven "counter-trend" strategies for profiting during sideways markets that you can use IMMEDIATELY to "legally steal" pips from the market over and over again (while most traders are sitting on the sidelines)...

* That there are actually only three separate market conditions that EVER exist. You’ll learn how to identify them and more importantly how to successfully profit during each of them as soon as you're aware they exist...

* My insanely profitable "Stack the Deck" technique that allows me to use "predictable moments of opportunity" (or PMO's) to sky-rocket my accuracy and shatter any doubt when ever I "Pull The Trigger"

* And much, much more...

5 Simple Steps To Making a MONUMENTAL Difference In Your Forex Trading, Complete With Step-by Step
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Forex SCALPING Cheat Sheets
If you are currently scalping FX markets (or are planning to), there are certain universal rules that you simply need to know to survive. Beyond these rules exist another level of knowledge that very few traders possess...
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Forex Cheat Sheets
What the Professionals Know about Timing the Markets
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By Quantum Research Management Group

--- Special Thank’s to Jason fielder and Quantum Research Management Group ------

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

2010-01-09T07:58:00.004+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.
30% Bonus for any deposit from InstaForex Company is beyond compare in the Forex-brokers market that again approves the company’s desire to make the trading more comfortable and gainful for its clients. ...Open Account and Get Bonus Clic Here...

Walter Bressert System ; Double Smoothed Stochastics

2010-01-06T00:08:00.005+07:00

DSS Bressert - Double Smoothed Stochastic Indicator by Walter Bressert

Description
One after the other, William Blau and Walter Bressert each presented a version of the Double Smoothed Stochastics. Two exponentially smoothed MAs are used to even out the input values (H, L and C), in a similar way to the well-known stochastic formula.

Calculation of the DSS indicator according to Bressert is similar to stochastics.

1.) The numerator: first the difference between the current close and the period low is formed. The denominator: here the difference between the period high minus the period low is calculated. Now the quotient of numerator and denominator is calculated, exponentially smoothed and then multiplied by 100.
2.) The method is analogous to 1.) with the distinction that now the prices of the newly calculated price series of 1.) is used.

Parameters
The adjustable period length can be chosen from 2 to 500. The most common settings will have a period length ranging from 5 to 30. In addition, the indicator can be smoothed in the interval from 1 to 50. Meaningful smoothing values lie in the short-term range.

Interpretation
The application of the DSS is comparable with that of the stochastic method. Accordingly, values above 70 or 80 must be regarded as overbought and values below 20 or 30 as oversold. A rise of the DSS above its center line should be viewed as bullish, and a fall of the DSS below its center line as bearish.

---- by; Trading Online / tradesignal GmbH -------

“Brain Trading” Profitable Trading System

2010-01-04T01:47:00.003+07:00

Now I wish to comment about BrainTrading software indicator, a system best indicator which is till now, But many people who is having this indicator obtains it is incomplete or result of copy from assorted of source. Braintrading system very effective indicator if applied in correctness, myself had applied this system since last three years ago and proven effective and profitable. pleased download BrainTrading Trade manual to can be applied correctly/effective

How To Use BrainTrading System
BrainTrading System indicator package includes four main independently calculated indicators: BrainTrend1, BrainTrend1Stop, BrainTrend2, BrainTrend2Stop and four auxiliary indicators used for pictorial presentation of main indicators: BrainTrend1Sig, BrainTrend1StopLine, BrainTrend2Sig, BrainTrend2StopLine.

IMPORTANT! (BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine), (BrainTrend2, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine), (BrainTrend1, BrainTrend1Sig, BrainTrend1Stop, BrainTrend1StopLine, BrainTrend2Sig, BrainTrend2Stop, BrainTrend2StopLine) are priority groups of indicators of the BrainTrading System

BrainTrend1 and BrainTrend2 are market “DIRECTION” indicator. It shows trend direction by colors, when the market changes to or stays in an up-trend, the bars become or remain BLUE. When the market changes to or stays in a downtrend, the bars become or remain RED. When the market goes sideways or is not strong on either side, the bars become or remain GREEN. BrainTrend1 and BrainTrend2 indicators can work with any time bar charts.

IMPORTANT! Don’t use BrainTrend1 and BrainTrend2 indicators on one chart at the same time. You need to use BrainTrend1 indicator as main on all charts and use BrainTrend2 as confirmative indicator in separate chart window.

BrainTrading system indicator Chart

Free Download BraimTrading system - Trade Manual CLICK Here...

Others Forex ebook - Free Download CLICK Here...

" FRACTALs " Technical Indicator

2009-12-30T17:59:00.009+07:00

Many people believe that the markets are random. In fact, one of the most prominent investing books out there is "A Random Walk Down Wall Street" (1973) by Burton G. Malkiel, who argues that throwing darts at a dartboard is likely to yield results similar to those achieved by a fund manager (and Malkiel does have many valid points).

However, many others argue that although prices may appear to be random, they do in fact follow a pattern in the form of trends. One of the most basic ways in which traders can determine such trends is through the use of fractals. Fractals essentially break down larger trends into extremely simple and predictable reversal patterns. This article will explain what fractals are and how you might apply them to your trading to enhance your profits.

What Are Fractals?
When many people think of fractals in the mathematical sense, they think of chaos theory and abstract mathematics. While these concepts do apply to the market (it being a nonlinear, dynamic system), most traders refer to fractals in a more literal sense. That is, as recurring patterns that can predict reversals among larger, more chaotic price movements.

These basic fractals are composed of five or more bars. The rules for identifying fractals are as follows:

* A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side.
* A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.

The fractals shown in Figure 1 are two examples of perfect patterns. Note that many other less perfect patterns can occur, but the basic pattern should remain intact for the fractal to be valid.

The obvious drawback here is that fractals are lagging indicators - that is, a fractal can't be drawn until we are two days into the reversal. While this may be true, most significant reversals last many more bars, so most of the trend will remain intact (as we will see in the example below).

Applying Fractals to Trading
Like many trading indicators, fractals are best used in conjunction with other indicators or forms of analysis. Perhaps the most common confirmation indicator used with fractals is the "Alligator indicator", a tool that is created by using moving averages that factor in the use of fractal geometry. The standard rule states that all buy rules are only valid if below the "alligator's teeth" (the center average), and all sell rules are only valid if above the alligator's teeth.

Figure 2 is an example of such a setup:

Figure2
As you can see, the primary drawback to this system is the large swings that take place. Notice, for example, that the latest fractal had a drawdown of over 100 pips and still has not hit an exit point. However, there are countless other techniques that can be applied in conjunction with fractals to produce profitable trading systems.

Figure 3 shows a forex trading setup that uses a combination of fractals (multiple time frames), Fibonacci-based moving averages (placed at 89, 144, 233, 377 and their inverses) and a momentum indicator. Let's look at a recent trade setup for the GBP/USD currency pair to see how fractals can help:

Figure 3
Here is a basic rule setup that is used when using a chart with a four-hour time frame:

* Initiate a position when the price has hit the farthest Fibonacci band, but only after a daily (D1) fractal takes place.
* Exit a position after a daily (D1) fractal reversal takes place.

Notice how the fractals pinpoint meaningful tops and bottoms? This helps to take the guesswork out of deciding at which Fibonacci level to trade - all we have to do is check to see if the daily fractal occurred. We should also note that the trend strength began increasing at the sell fractal, and topped at the buy fractal. Although we lose some pips with the confirmation, it saves us from losing out on mere market noise - 139 pips certainly isn't bad for three days! (For further reading, see Trading Without Noise.)

Things to Consider
Here are a few things to remember when using fractals:

* They are lagging indicators. They are best used as confirmation indicators to help confirm that a reversal did take place. Real-time tops and bottoms can be surmised with other techniques.
* The longer the time period (i.e. the number of bars required for a fractal), the more reliable the reversal. However, you should also remember that the longer the time period, the lower the number of signals generated.
* It is best to plot fractals in multiple time frames and use them in conjunction with one another. For example, only trade short-term fractals in the direction of the long-term ones. Along these same lines, long-term fractals are more reliable than short-term fractals.
* Always use fractals in conjunction with other indicators or systems. They work best as decision support tools, not as indicators on their own.

Conclusion
As you can see, fractals can be extremely powerful tools when used in conjunction with other indicators and techniques, especially when used to confirm reversals. The most common usage is with the "Alligator indicator"; however, there are other uses too, as we've seen here. Overall, fractals make excellent decision support tools for any trading method.

--- by Justin Kuepper / investopdia ------

Forex Software Review : LMT Forex Formula

2009-12-21T13:52:00.008+07:00

Recently I was invited to beta test the new LMT Forex Formula system by Dean Saunders, the creator of the immensly popular 10 Minute Forex Wealth Builder. I am a great fan of the 10 Minute Forex system, so I was very excited to see what this new product was all about. Is this system worth buying? I believe it is..see my full review below.
The LMT Forex Formula promises to be the perfect solution for the part time Forex trader - a trading system that is 100% mechanical, 82% accurate and only requires 15 minutes of work every day. What exactly is the LMT Forex Formula? Let’s start by looking at what this system is NOT. The LMT Forex Formula is not a Forex Robot that trades automatically. It is Not a robot that trades for you. They have a software which shows you the trades but they do NOT place trades for you. You will
manually make the trades which keeps you informed on your trades.

This system is designed to earn 100’s of pips per trade.
It is good for real traders who want to have control over the
trades that you want to make.

This system comes with special indicators that alert you when trading opportunities occur, but you still place and manage the trades yourself. This means that you are not tied to a specific broker and always remain 100% in control of your own trading.
The second thing that the LMT Forex Formula is not is a scalping or intraday trading system that requires you to place many small trades every day. This system is all about large movements in the currencies and is designed to earn hundreds of pips per trade. You will get around 2-3 trades per week and sometimes stay in these trades for days before taking large profits.

What I like about the LMT Forex Formula
I have only tested the LMT Forex Formula for a short while, but the beta testing results I have seen so far has been very impressive. Those who trade actively with this system frequently report large winning trades of more than 300 pips and conservative results show that it is possible to easily make around 500 pips per month by only trading the one or two best setups every week.

Another great thing about this system is that you can use it with ANY broker, you are not forced to use a Metatrader broker like you are with all the Forex robots. The custom indicator requires Metatrader, but you can easily use a free Metatrader demo account for your trade signals and charting while doing your actual trading at a different broker.

The launch price is very affordable. Just the money management techniques that Dean teaches in this system alone is worth this price and if you consider that the product comes with a 60 day money back guarantee, then this is really a low-risk purchase.

Conclusions and Recommendations
Any Forex product by Dean Saunders is always worth investigating and the LMT Forex Formula is definitely one of the the easiest, most accurate Forex trading systems I have ever come across. If you are looking for a system that is almost 100% mechanical, but still under your full control, then I definitely recommend that you check this one out. Once you feel what it is like to take 500 pips profit in one trade off the daily charts you will never be interested in short term scalping methods again.

---- by:fxtradingreviews ------

SEE...FapTurbo Forex Robot Review and Free Download...Forex Trader Reveals : What you must know before you buy Forex Robot.

Forex Trading System

2009-12-19T21:07:00.001+07:00

a Simple One That’s Proven and Made Millions
Enclosed you will find a free Forex trading system with one rule which is simple and has made savvy traders huge gains for over 25 years. Let’s take a look at how you can use it for bigger Forex gains…

Of course you can buy a forex trading system but most sold are junk and only have simulated back tested results - this one on the other hand has made gains for over 25 years and will continue to do so.

The system was devised by one of the trading greats - Richard Donchian who is considered the grandfather of modern trend following and his insight on channels and the 4 Week Rule (the trading system below) are two methods all traders should know about.

Let’s take a look at how it works and it’s based on one simple rule, here it is.

Buy a new 4 week high and hold the position, until a 4 week low is hit then liquidate the long position and go short. Keep doing the following - buy new 4 week highs and sell new 4 week lows thereafter and always keep a position in the market.

You can’t get a much simpler system than the above and you don’t even have to think about what to do, the rule is clear and objective, you can simply follow it and it works; here’s why.

Forex markets tend to trend for long periods and these trends can be for many weeks or months. These trends tend to start and continue from new market highs or lows, so this system will put you in on every major trend and help you get a good chunk of the profits.

Don’t worry about its simplicity - forex markets are best suited to simple, robust systems. The trader who complicates his trading strategy normally will see it fail, as it has too many elements to break.

While the system is simple and works, most traders can’t follow it.

It takes tremendous discipline to follow long term trends and they prefer to use shorter term systems which make them feel better or safer - but of course don’t work. They also follow for the myths perpetrated by vendors, that you don’t get drawdowns in Forex - but you do, even the best systems have them. You have to trade through them, learn to take short term losses and look at the big picture which is longer term gains.

This system will never go out of date and is simple to understand, it also doesn’t take long to operate about 15 - 30 minutes a day and the rule tells you exactly what to do.

If you are looking for a long term Forex trading system that’s proven, rather than a simulated one which has never been traded and won’t work, then check out the free Forex trading system which is the 4 Week Rule and you maybe glad you did.

Forex Indicator - Accumulative Swing Index

2009-12-16T10:01:00.006+07:00

Trading with ASI indicator involves the following details:
ASI has positive value — uptrend.
ASI has negative value — downtrend.
ASI trend line breakout — validates a breakout on the price chart.
Details
What is Accumulative Swing Index
Welles Wilder, the creator of ASI indicator said, "Somewhere amidst the maze of Open, High, Low and Close prices is a phantom line that is the real market." The Accumulation Swing Index shows this phantom line - the line of the real market.
The Accumulative Swing Index uses a scale from 0 to 100 for an up trend and 0 to -100 for a down trend.

How to interpret ASI indicator
If a long-term trend is up, the ASI has a positive value; and if long-term trend is down indicator appears in a negative value. During sideways moving market, the ASI moves between + and - values.
Accumulative Swing Index is widely used to confirm or deny trend lines breakouts on Forex charts.
Trend lines are drawn on both: a chart and indicator’s graph and then compared against each other to confirm/dismiss trend line breakout signals.

How to trade with Accumulative Swing Index
Welles Wilder, developer of Accumulative Swing Index indicator, describes in his book "New Concepts in Technical Trading Systems" why ASI can be used for trend line breakout confirmations. He said, that ASI is able to show the real strength and direction of the market and since Accumulative Swing Index is heavily weighted in favor of the close price, daily upward and downward spikes do not adversely affect ASI.
Here is a quote from his book:
"When the Index is plotted on the same chart as the daily bar chart, trend lines drawn on the ASI can be compared to trend lines drawn on the bar chart. For those who know how to draw meaningful trend lines, the ASI can be a good tool to confirm trend-line breakouts. Often erroneous breaking of trend lines drawn on bar charts will not be confirmed by the trend lines drawn on the ASI. Since the ASI is heavily weighted in favor of the close price, a quick run up or down during a day's trading does not adversely affect the index."
Signal Buy with ASI occurs when indicator exceeds its previous Swing High.
Signal Sell occurs when ASI dips below its previous Swing Low.

Accumulative Swing Index chart example

Since ASI line represents real market price, Forex traders may effectively use classic technical analysis methods on the indicator itself:
- identify support/resistance levels,
- trend lines and true market direction,
- swings high/low,
- breakout setups
- and divergence between indicator and regular price charts.
Accumulative Swing Index indicator formula
ASI = ASI formula

Where:
C = Today's closing price
Cy = Yesterday's closing price
Hy = Yesterday's highest price
K = The greatest of: Hy - C and Ly - C
L = Today's lowest price
Ly = Yesterday's lowest price
O = Today's opening price
Oy = Yesterday's opening price
R = This varies based on relationship between today's closing price and yesterday's high and low prices
T = the maximum price changing during trade session

---- by; Forex Indicators / ASI -------

Forex; Trend line Strategy

2009-12-10T06:54:00.005+07:00

Forex Tips & Strategy : How To Draw Proper Trend Line
Drawing trend line is sometime that is very subjective for most traders. From those trading books that are in the market, trend line is drawn by joining 2 or more swing lows or 2 or more swing highs. However the problem lies with there are a lot of swing highs and lows in most chart and which one should you use and which one should you ignore?

This is a topic that is suggested by one of our active newsletter subscriber who is a fellow trader. Therefore I am going to spend some time on this post to go through how you can draw proper trend line.

Basically there are 2 main types of trend line you can draw and they are

1) Common Sense Trend Line: This type of trend line is the most commonly used by traders and it basically makes use of 2 or more swing highs or lows to connect to form the line. Swing lows are formed when there is a candle that has 2 higher candles on its left and right and swing highs are formed when there is a candle that has 2 lower candles on its left and right.

Since there are quite a number of swing highs and lows in a particular chart, you need to be able to prioritise which are the more important ones.

Swing low usually forms a V-shaped pattern while swing high forms an N-shaped pattern. For swing low, the one with more higher candles on its left and right will be more significant than the one with lesser higher candles on its left and right and it works the same for the swing highs except that you should be looking for more lower candles.

When drawing common sense trend line, you will try to connect a few points and the line that has the most points connected will be the line you should be using to trade. The more swing highs or lows you manage to connect to form a trend line, the more powerful it is because there is more time the market is trying to break the line but failed and it will serve as a strong support or resistance.

One more thing to take note, if the trend line is breached by a candle, it will be no longer useful and you need to redraw another new trend line.

Personally I use a mix of these 2 ways of drawing trend line. The common sense trend line sometime serves as a long term trend line for me while the Tom Demark trend line serves as a short term trend line for me and both of them works rather well so far.
Hope that this post on how to draw trend line is useful for you.

--- by ; Kelvin / forex tips

Forex ; Trading Double Tops and Double Bottoms

2009-12-07T14:54:00.011+07:00

Trading Double Tops and Double Bottoms
No chart pattern is more common in trading than the double bottom or double top. In fact this pattern appears so often that it alone may serve as proof positive that price action is not as wildly random as many academics claim. Price charts simply express trader sentiment and double tops and double bottoms represent a re-testing of temporary extremes. If prices were truly random, why do they pause so frequently at just those points? To traders the answer is that many participants are making their stand at those clearly demarcated levels.

If these levels undergo and repel attacks, they instill even more confidence in the traders who've defended the barrier and, as such, are likely to generate strong profitable countermoves. Here we look at the difficult task of spotting the important double bottom and double tops, and we demonstrate how Bollinger Bands can help you set appropriate stops when you're trading these patterns.

React or Anticipate?
One great criticism of technical pattern trading is that setups always look obvious in hindsight but that executing them in real time is actually very difficult. Double tops and double bottoms are no exception. Though these patterns appear almost daily, successfully identifying and trading them is no easy task.

There are two approaches to this problem and both have their merits and drawbacks. In short, traders can either anticipate these formations or wait for confirmation and react to them. Which approach you chose is more a function of your personality than relative merit. Those who have a fader mentality - who love to fight the tape, sell into strength and buy weakness - will try to anticipate the pattern by stepping in front of the price move.

Reactive traders, who want to see confirmation of the pattern before entering, have the advantage of knowing that the pattern exists but there's a tradeoff: they must pay worse prices and suffer greater losses should the pattern fail.

What's Obvious Is Not Often Right
Most traders are inclined to place a stop right at the bottom of a double bottom or top of the double top. The conventional wisdom says that once the pattern is broken, the trader should get out. But conventional wisdom is often wrong.

Leaving the trade early may seem prudent and logical, but markets are rarely that straightforward. Many retail traders play double tops/bottoms, and, knowing this, dealers and institutional traders love to exploit the retail traders' behavior of exiting early, forcing the weak hands out of the trade before price changes direction. The net effect is a series of frustrating stops out of positions that often would have turned out to be successful trades.

What Are Stops For?
Most traders make the mistake of using stops for risk control. But risk control in trading should be achieved through proper position size, not stops. The general rule of thumb is never to risk more than 2% of capital per trade. For smaller traders, that can sometimes mean ridiculously small trades.

Fortunately in FX where many dealers allow flexible lot sizes, down to one unit per lot - the 2% rule of thumb is easily possible. Nevertheless, many traders insist on using tight stops on highly leveraged positions. In fact, it is quite common for a trader to generate 10 consecutive losing trades under such tight stop methods. So, we could say that in FX, instead of controlling risk, ineffective stops might even increase it. Their function, then, is to determine the highest probability for a point of failure. An effective stop poses little doubt to the trader over whether he or she is wrong.

Implementing the True Function of Stops
A technique using Bollinger Bands can help traders set those proper stops. Because Bollinger Bands incorporate volatility by using standard deviations in their calculations, they can accurately project price levels at which traders should abandon their trades.
The method for using Bollinger-Bands stops for double tops and double bottoms is quite simple:

1. Isolate the point of the first top or bottom, and overlay Bollinger Bands with four standard-deviation parameters.
2. Draw a line from the first top or bottom to the Bollinger Band. The point of intersection becomes your stop.

At first glance four standard deviations may seem like an extreme choice. After all, two standard deviations cover 95% of possible scenarios in a normal distribution of a dataset. However, all those who have traded financial markets know that price action is anything but normal - if it were, the type of crashes that happen in financial markets every five or 10 years would occur only once every 6,000 years. Classic statistical assumptions are not very useful for traders. Therefore setting a wider standard-deviation parameter is a must.
The four standard deviations cover more than 99% of all probabilities and therefore seem to offer a reasonable cut-off point. More importantly they work well in actual testing, providing stops that are not too tight, yet not so wide as to become prohibitively costly. Note how well they work on the following GBP/USD example.

More importantly, take a look at the next example. A true sign of a proper stop is a capacity to protect the trader from runaway losses. In the following chart, the trade is clearly wrong but is stopped out well before the one-way move causes major damage to the trader's account.

Conclusion
The genius of Bollinger Bands is their adaptability. By constantly incorporating volatility, they adjust quickly to the rhythm of the market. Using them to set proper stops when trading double bottoms and double tops - the most frequent price patterns in forex - makes those common trades much more effective.

--- by; Boris Schlossberg / director of currency research at GFT Forex. ----

Forex Trading System

2009-12-05T08:36:00.007+07:00

Profitable Trading System
Open any chart for any currency pair, any time frame. I will use EUR/USD 1H as an example.
Next, attach Bollinger bands and OsMA indicators. Default settings for both.
What we are going to use here is a classic trading method called Divergence trading. divergence simply happens when the indicator and price are going in opposite directions.

The indicator we are going to use for Divergence is the OsMA indiactor.

To avoid false Divergence signals, we are going to use Bollinger bands. Valid signals are only the ones that happens when price hits overbought – oversold levels of Bollinger bands.
Images1

When that happens we should know that price will reverse. In the above example, price was going up. So we are waiting for a sell signal. If price was going down, that means we are waiting for a buy signal.

Entry Rules –
Buy signal :

1 – Divergence
2 – Price hits Bollinger band’s oversold levels

Entry signal:
1 – when price starts to reverse up from the oversold level
2 – OsMA forms a new bar above 0 level.

Images2

Entry Rules –
Sell signal :
1 – Divergence
2 – Price hits Bollinger band’s overbought levels

Entry signal:
1 – when price starts to reverse down from the overbought level
2 – OsMA forms a new bar below 0 level.

Images3

Stop Loss :Last support/ resistance level.
Target :You have the choice to exist your trades when ..
1 – price hits the opposite Bollinger band’s level Or
2 – an opposite signals is generated

This system works great on 15M time frames and higher. Not recommended for smaller time frames.
The system is not to be used with major news releases.

It’s not the holy grail, but it’s a very good start. Try it and remember that practice makes perfect.

----- by ; Forex Warlord -------

Forex ; Ross Hook Trading Strategy

2009-11-28T15:21:00.005+07:00

Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He has survived all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits. Joe Ross is the creator of the Ross Hook ™ (Rh), and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™" (TTE). Joe Ross has a few preferred trading signals, but we will present here the Ross Hook and the Traders Trick Entry.

Ross hook could be created on charts after:

1. First correction after a 1-2-3 pattern breakout;
2. First correction after a ledge pattern breakout (A ledge consists of a minimum of four price bars. It must have two matching lows and two matching highs. The matching highs must be separated by at least one price bar, and the matching lows must be separated by at least one price bar.);

First correction after a trading range breakout (A Trading Range is similar to a ledge, but must consist of more than ten price bars.).

The definitions are from "Law of Charts" by Joe Ross. This is very useful reading also.

During an uptrend when the market fails to make new high, a Ross Hook is formed. During a downtrend when the market fails to make new low, a Ross Hook is formed. Every directional price move reaches a point of exhaustion and needs new participants to continue. That is why the market takes its breath and at this point a Ross hook occurs. The Ross hook could be identified when the market is trending not when it is in a phase of consolidation. We skip the signal if the market opens with gap beyond the Ross Hook.

With the Traders Trick Entry TTE we try to open position before the other traders. We can make profits in trading only if we take other people's money. We have to learn how we can be one step ahead of the other market players. When Ross Hook, 1-2-3 pattern or other chart formation occurs most of the traders will place their orders at these levels. The Big boys know this very well and often target these order to make easy profits. They move the prices towards the nearest major level and activate the orders around only to reverse the price movement towards the stop losses. TTE is designed for such cases. When we see Ross hook and expect a test of this level we try to open a position early and make a nice profit if the break is successful with good risk/reward ratio. In most of the cases if the break of the Rh is false we can close our position with small profit

Long Position

1. The high of the last period is lower than the high of the previous Ross hook is formed;
2. The price retraces lower and the high of every period is lower than the previous one. The retracement should be 3-5 periods max;
3. We place a buy order above the high of the last period with stop loss below its low;
4. When the long position is opened we place limit order according to our money management rules. We suggest closing part of the position and move the stop loss to break even when the Rh level is reached.

Short Position

1. The low of the last period is higher than the low of the previous Ross hook is formed;
2. The price retraces higher and the low of every period is higher than the previous one. The retracement should be 3-5 periods max;
3. We place a sell order below the low of the last period with stop loss above its high;
4. When the short position is opened we place limit order according to our money management rules. We suggest closing part of the position and move the stop loss to break even when the Rh level is reached.

---- by : Svetlin Minev ------

Forex Trading Strategies : DMI and Psar

2009-11-18T20:06:00.006+07:00

Directional Movement Index and Parabolic SAR
DMI and Parabolic SAR are very efficient trend indicators and are used often by traders for developing of their strategies. These indicators could be used separately and in combination with other technical studies. The DMI system is plotted by three lines: ADX, +DI and -DI, and could be used for generating of signals or trend filter:

Rising ADX shows that the market has a clear direction and is in a trending mode;

Declining ADX shows that the trend is losing steam or the market is in consolidation phase;
When ADX is above 20-25, the market is in a clear trend.

DMI system generates the following signals:
Rules for long position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form below to above the chart of the price. The bar when this happens 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.
Rules for short position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form above to below the chart of the price. The bar when this happens 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 signal bar.

5. A limit order is placed according to our Money management rules.

Indicator chart

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

Forex Trading Indicator

2009-11-06T16:55:00.006+07:00

Fx Indicator's ; Elliott Wave Oscillator, Juice and MA” -
the currency pair EURUSD (but you can choose any other, the selection of suitable values of stop-loss, profit and trailing stop),
a time-frame - M30 - MetaTrader4

Indicators Forex:
1) Exponential Moving Average EMA (200), applied to a close, the color blue.
2) Exponential Moving Average EMA (50), applied to a close, the color red.
3) Oscillator Elliott Wave Oscillator.
4) indicator of the level of Juice 0,0004.

Open a deal to BUY conclude with the following conditions:

1) Price is above the 2 moving averages EMA (200) and EMA (50), and the trend is upward, as indicated by the intersection of bullish Moving Averages (red above blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed above it.

3) Juice indicator is above its level of 0.0004.

Take-profit set to a value of 100 points from the entrance to the market.

Stop-loss - 20 points, trailing stop just 20 points.

Open a deal to SELL is when the following conditions:

1) Price is below the 2 moving average EMA (200) and EMA (50), while the trend is downward, as indicated by the intersection Moving Averages bearish (red below blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed below it.

3) Juice indicator is above its level of 0.0004.

Take-profit as set on the value of 100 points from the entrance to the market.

Stop-loss, respectively - 20 points, trailing stop - 20 points.

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

Forex - Polarized Fractal Efficiency

2009-11-06T16:47:00.003+07:00

Polarized Fractal Efficiency - PFE indicator - draws on Mandelbrot and fractal geometry to depict how pricing moves between 2 points during a definite time period. The more linear and efficient the price fluctuation, the shorter the distance the prices must move. the Polarized Fractal Efficiency indicator was created by Hans Hanula.

The PFE indicator is used for calculation of how trendy or overloaded the price action is. PFE <> 0 - indicate that the trend is up. The higher the reading the "trendier" and more efficient the upward movement. Readings around zero show jerky, less efficient shift and a balance between demand and supply

A hooking pattern often happens right before an efficient period finishes when the PFE appears to have maxed out, turns in the contrary direction towards zero, and then makes one last attempt at max. efficiency.

Stay with the trade all the way to the other extreme, unless it slows around the zero line. If it slows around zero, exit the trade and wait for a new max. efficiency entry.Trades can be entered in the opposite direction, with a stop just beyond the extreme of the hook.

Forex Trading Strategy - Bagovino Method

2009-10-28T01:03:00.004+07:00

Forex Strategy “Method Bagovino” very simple, trade is conducted on the 1-hourly chart (H1), it must install EMA (close) with a period of 5 and 21. And as RSI indicator with a period of 21. All these indicators are in any standard set of terminal Metatrader 4.

In installations RSI indicator determines the level of 50.
Once the 5 and 21 EMA cross and up, and RSI indicator crosses a bottom-up level 50 - open the deal to buy (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!)
Conversely, as soon as the EMA cross on the graph down, and the RSI indicator falls below 50 - opening the deal to sell (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!) The best situation as soon as Both intersections occur simultaneously (the intersection of EMA and RSI indicator crosses a level 50).

This forex strategy at history has shown about 85% of profitable signals!
For work, you can choose any currency pair.

Examples see in the picture:

The first time (the situation on the left) - First there was the intersection Movings, but we had a deal only a few hours later, after the RSI has crossed the level of 50 and closed below it.

The second time (the situation on the right) - the intersection Movings and RSI occurred for 1 hour, an hour after closing a deal was made for the purchase.
Stop-loss recommend stavt at your discretion (subject to approval by you MM (risk management) - as you see fit, but I still recommend risking no more than 0,5-2% of the depot for each transaction and stop-loss set: purchase - below the previous low candle in the sale - maximum above last candle).

Also propose to use the indicator forex Vegas 1 Hour to determine the levels for the partial closure profitnyh trade positions. For example, you have opened a bargain on a signal Bagovino 0.3 lots. On the first line can close the 0.1 unit, and the rest put in the level “zero” (well suited for this trailing stop). On the second line cover is 0,1 lot, and have the remainder of the latter can close or you can just pull it into profit and into the “free floating”, treylenguya rest position such as at a distance of 25-50 points, while hoping to catch a trending move.

Forex Trading Platform - Meta Trader 5

2009-10-28T00:53:00.000+07:00

The difference between MT5 and MT4
The function of MT5 is much stronger than MT4.

Firstly, MT5 terminal is able to use more and more financial products. At present, except of forex and futures, it can also use in other financial products including the stocks and the options.

Secondly, the function of MT5 becomes more and more. Here are details of new functions:

1. Twenty-one kinds of time phase analyze the quotes.
2. There are thirty-eight internal indicators.
3. Thirty-nine image object.
4. There are four Zoom modes.
5. Seventeen specialized display indicator styles.

Forex Scalping Strategy

2009-10-21T10:16:00.006+07:00

Using Fibonacci Levels for Scalping the Forex Market
This article is part of our guide on how to use scalping tequniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Scalping a strongly trending market is very different from scalping a quiet, tame market where price action is confined in a small range and is going nowhere. In a ranging market scalpers will buy or sell, and wait until the price comes back to where it left, and keep gathering small profits until the prevailing range pattern is eliminated. When trading a trending market, however, we must be careful to ensure that our orders follow the established trend. Counter-trend scalping is also possible, but since the preferred strategy of most successful traders is trend following, we’ll concentrate our attention on using fibonacci extensions in a trend following method in this article.

High volatility requires a strict approach to realizing both losses and profits. A scalper who is trading in a tame, range-bound market can be a bit more relaxed and arbitrary about his risk controls (they must still be applied with discipline, but not in the robotic manner which must be applied in trending markets), because the market is not expected to make sharp movements due to fewer market participants and a smaller amount of liquidity (not to mention that there is no news catalyst for strong price movements.) But a trend scalper must deal with such conditions at all times.

Trend Following Method
In this section we’ll discuss the use of the Fibonacci extension levels for the determination of trade direction while scalping trending markets. Scalping in trends can be difficult, because of the size of the sudden fluctuations, and the lack of clarity (at least in the short term) with respect to the eventual destination of the price. The Fibonacci extension levels are very useful in analyzing trends in all cases, and scalping is no exception to the rule

Our aim in using this indicator is identifying levels where the price may rebound. For drawing the extension, we’ll identify the beginning and end of the price movement which we expect to be extended, so to speak, in order that a new trend is created. In the 5-minute chart of the USDCHF pair, we have identified a sudden and sharp movement beginning at around 4 am on 23rd July, and decided to draw its extension after the first red bar where its momentum is temporarily checked. Upon drawing the extension in the indicated area, we notice the 61.8, 100, and 161.8 extensions of the first movement.

Careful examination of the chart above shows us not only that the price rebounded several times at the extension levels of the indicator, but also that these levels served as strong attractors pulling the price towards themselves. The 100 percent extension level, for instance, provided a support which prevented the price from “falling through” twice, as observed. And the other two levels similarly created performance bars for the trend which, once broken, created further momentum for the trend.

Trading against a trend is dangerous, and the risk of sudden reversals is no less dangerous for scalpers. As such we need a tool which will help us identify the general direction of the trend, so that even if we suffer some losses, eventually our gains will justify our trading activity. The Fibonacci extension level is a great tool for this purpose since it allows us to guess with a reasonable degree of accuracy the main momentum of the price action. In the above example, we’d be scalping the market by buying at the red arrows shown on the chart. If the price returned to the resistance or support levels indicated by the extension level, we’d stop trading for a while and await the market action to present some clarity (is the trend reversing?) But as long as the trend is intact our strategy would involve scalping between the extension levels to accumulate profits.

---- by; forextraders.com ----

Forex Trading Strategy

2009-10-16T17:05:00.002+07:00

3 Simple Breakout Strategies You Can Use When Trading Forex
This article describes three different ways you can trade forex breakouts.
Trading breakouts is one of the most popular methods of trading the forex markets because you often get large moves after a period of consolidation. So with that in mind, I've listed below three basic strategies you can use to trade these breakouts.

The first of which is based on technical analysis, and in particular the Bollinger Bands indicator. Bollinger Bands are envelopes based on a moving average and a standard deviation and are most useful in showing areas of support and resistance through the two outer lines of the envelope.

Therefore when the price breaks out of either the upper or lower limit, this very often is a strong indication that a breakout is about to take place in the same direction. It's particularly the case after a period of consolidation where the bandwidth of the Bollinger Bands has narrowed out. For greater success you can use the breaching of one of the outer lines to gain your attention, and then wait for a pullback to either the EMA (5) or EMA (20), for example, for a good entry point.

The second method you can use to trade breakouts is also based on technical analysis and involves various Exponential Moving Averages, or EMA's for short. This is a method I have developed over the years that makes use of the 5, 20 and 50 period EMA's (you can also use the 100 or 200 period EMA as well).

What you do is wait until the price, along with the 5, 20 and 50 period EMA's have all flattened out and are all very close to each other. Then you simply wait for a strong breakout from this narrow range and take a position close to the EMA (5) when the breakout takes place. This can be very rewarding when you catch a good breakout, particular when you use longer time frames.

The final method is based entirely on price and uses no technical indicators at all. It's based on the fact that the price does not stay in the same range forever and will at some point break out of the current trading range.

I have to admit I don't use this method myself but there are various ways you can trade this way. Some traders like to use the previous day's upper and lower price range, and trade any breakouts of this range the following day. Similarly some traders wait until a very narrow price range has formed and then wait for a breakout to occur.

So overall there are various different ways you can trade breakouts, all of which have their merits. Despite being quite basic methods, they can be extremely lucrative because the price often moves strongly in one direction or the other after a sustained period of consolidation.

Forex Trading Strategy

2009-10-12T08:04:00.004+07:00

Strategy for GBP/JPY
I’m going to explain the strategy I use to trade GJ and I’m going to be posting my weekly/daily analysis of this pair. I don’t use anything fancy, I use some basic stuff that most traders use and some common sense

The indicators I use are:
* Fibonacci retracement levels
* Trendlines/Channels
* 5 period simple MA
* Candlestick patterns
* Support/Resistance levels
* Momentum

As you can see it’s all simple and basic stuff except maybe for the fibonacci retracement, because every trader could use it differently. If you have any doubts about any of the stuff I use, either ask or just do a simple google search and you’ll find plenty of information about them.

Using the fibonacci retracement on different timeframes (1H, 4H, Daily, Weekly) is very important, because sometimes some of them overlap and that tells us where we might find strong support/resistance. I’ll post some examples.
If you have been following my posts on Auslanco’s thread, you will know that we use the 5SMA for a good entry point when a retracement occurs.
Most of the time, I trade based on the 4H chart, but I keep an eye on the daily chart and sometimes the weekly chart. I use the 1H chart for a good entry point. Any TF less than 1H has a lot of noise and it is very risky trading GJ on very small TF’s.

Using stop-loss, I always wait for my trade to go in my direction for about 50-100 pips before I move my SL and lock in a very small # of pips (10) and then just let it run until it reaches my TP, this way I don’t let a winning trade turn into a losing one, and if my SL gets hit, no worries coz +10 is way better than anything negative

Momentum & 5sma
Before using the Momentum indicator and 5sma, you must have auslanco’s QQE indicator. I’ll explain how to catch a retracement in this following example:
When QQE 4h is crossed upwards, and QQE 1hr is crossed upwards, and the Momentum at the beginning of the next 1h candle is pointing downwards, price will usually retrace to 1hr 5sma, it’s that simple.

---- by; KarmoStaji -------

Forex Trading Strategy

2009-10-07T08:57:00.002+07:00

Oscillator and Momentum Indicator
Forex technical analysis uses mathematically derived indices to decide when to enter or exit a trade and has become by far the most common strategy among forex investors.
Investors in today's forex market can count on a variety of analysis tools to help them better guide their decisions and develop a consistent and systematic strategy, therefore minimizing impulsive decisions that can be devastating in this volatile market.

Such indices are mainly divided into two separate groups, oscillators and momentum indicators: the former try to predict a future change in trend, while the latter help assessing whether a trend that has already started will either continue or revert.

Oscillators in Forex

Some of the most widely used oscillators include:

* Stochastics: an oscillator that indicates whether the market is currently in an 'overbought' or 'oversold' phase. When the stochastics graph goes beyond a certain threshold, investors' reactions are usually to sell (overbought) or buy (oversold).
* Parabolic SAR: helps identifying the end of a trend in a timely fashion on a bearish or bullish market. It is plotted on the candlestick graph, and where the index crosses the candlestick graph itself, this is generally a seen as a symptom of a trend change.
* Relative Strength Index (RSI): similarly to stochastics, indicates the strength of the current trend on a scale from 0 to 100 — 0 to 50 for bearish, 50 to 100 for bullish.

Momentum Indicators in Forex

Some of the most common momentum (or lagging) indicators include:

* Simple Moving Average: average value of the last n candlesticks, where n is a configurable parameter.
* Exponential Moving Averages: similar to the simple moving average, but the most recent data has a much stronger influence over the value of the index, which means this indicator is much more sensitive to changes in value.

Combining Two or More Indices to Find Your Strategy

The very high number of indices available makes it unpractical to build an investing strategy based on the majority of them: forex investors are therefore required to pick and choose the tools that seem best suited to their own needs and bring the best results, and to figure out how to combine them all to create a profitable investing strategy.

An example of combining two indices to obtain a more accurate trend prediction is the so-called "moving average crossover": exploiting the characteristics of simple and exponential moving average — one highly subject to recent changes in trend, the other more equally weighted on previous data — it is possible to plot both on the same chart and decide to enter or exit a trade when the two cross each other.
Beyond Indexes: Fibonacci, Pivot Points, Elliott Waves

Technical analysis tools are not confined to indices only. There is a wealth of other mathematically or statistically derived factors, patterns, trend lines among which Fibonacci series, pivot points and Elliott wave theory applied to forex are just a few, valid ones.

Some of them — particularly those linked to the Fibonacci sequence — are speculated to hold true only because of their very widespread use by investors of all the world, which ends up influencing the market itself.
Technical Analysis vs. Fundamental Analysis

Even those who believe to have found the perfect combination of oscillators and indicators that can reliably anticipate market movements should never ignore fundamental analysis, the technique consisting in trading based of market news, which is often preponderating in short term trades: the right forex strategy is a wise mix that constantly keeps the two in consideration, without ignoring or underestimating their capabilities.

Forex ; Elder-rays

2009-10-04T22:33:00.006+07:00

Elder-ray system, Developed in 1989, The Elder-rays use exponential moving average indicator, or EMA, the preferable period of which is 13 as a tracing indicator. The oscillators reflect the bears' and bulls' power.

The Elder-rays include the characteristics of trend following indicators and oscillators. Three charts for placing the Elder-rays are used: on one side - the price chart and EMA are placed, on two other sides - bulls' power oscillator, or just Bulls Power, and bears' power oscillator, or just Bears Power.

Elder-rays can be used either individually or in bunch with various other tools. While using them individually, it's important to remember that the EMA slope defines the trend movement, and position should be opened in its direction.
The Elder Ray is a very precise and effective means of highlighting discrepancies between bull and bear power and prices and helping to choose right time for the best trading opportunities.

Bulls and bears power oscillators are used for determining the moment for opening or closing of positions. One should open the following positions:

It's better to sell when:
1. The Bulls Power oscillator remains positive, but declines step by step;
2. The Bulls Power oscillator declines leaving the Bears' discrepancy;
3. The last bottom of the Bulls Power oscillator is lower than the previous one;
4. There is a decreasing trend defined with the EMA fluctuations

The Elder Ray index actually consists of two indicators:
"Bull Power" (Daily High - n period moving average) and
"Bear Power" (Daily Low - n period moving average).

It's better to purchase when:
1. The Bears Power oscillator is negative, but still growing;
2. The Bears Power oscillator increases after the Bulls discrepancy;
3. The last peak of the Bulls Power oscillator is higher than the previous one;
4. There is an increasing trend defined with the EMA fluctuations

It is better to keep back at the positive values of the Bears Power oscillator and not to open short positions when the Bulls Power oscillator is negative. The best time for trading is discrepancy between the Bulls and Bears Power and prices.
In fact, the Elder Ray index includes 2 indicators: "Bear Power" (Daily Low - n period moving average) and "Bull Power" (Daily High - n period moving average)/

Bear Power is used to calculate the potential for the price to fall under the moving average. And Bull Power is used for calculating the potential for the price to grow over the moving average. There are short positions when the Bull Power is more than zero and there is a bearish discrepancy. And Long positions are assumed when the Bear Power remains under zero and there is a bullish discrepancy.

Forex Trading System

2009-09-27T10:10:00.005+07:00

Profit With Forex Opening Range Breakouts
Many forex traders like to incorporate forex breakouts into their overall trading strategy because they can be extremely profitable. When a price finally breaks out of a tight trading range, many traders tend to jump on board and carry the price further away from this trading range, which is why this strategy is so effective.

Focus on Opening Range Breakouts

One of the most popular ways of trading these breakouts is by focusing specifically on overnight / opening range breakouts. By that I mean the opening hours of the new trading day. I myself tend to focus on the hours between 00.00 and 06.00 GMT and predominantly concentrate on the British and European-based pairs such as the GBP/USD and EUR/USD pairs, for instance.

These hours are notoriously quiet and yet these few hours before the busy opening session set the tone for the rest of the day. You will often find that the price will stay confined in a fairly tight range during these six hours or so and when the UK and European markets open, the price will trend significantly in one direction and will often break strongly out of this initial trading range.

Therefore a profitable strategy is to open a long position when the high point of this opening range is breached and open a short position when the low point is breached. There are various ways you can put this system into practice. You can either open a position as soon as the price crosses the line or as soon as the breakout candle closes, or you can wait for a pull-back and then jump on board if the price continues to move in the direction of the initial breakout.

All of these methods tend to work quite well and there is a logical reason why this is the case. The fact is that every currency pair has an average daily range, i.e the average number of points between the high and low points for a given trading day. So on those days where the opening range is very narrow, this initial range will be a mere fraction of the overall average, so therefore you can expect some big price moves to occur during the rest of the day either above or below the overnight range.

Related Articles > Free Download Forex E-book > BigBen Strategy

Forex Trading Indicator

2009-09-27T09:31:00.006+07:00

FOREX INDICATOR's III

Forex Trading with Elliott wafe

Forex Trendlines Support and Resistance

Forex Chart ; Symetrical Triangle pattern

Forex ; Chalkin money flow

Forex ; True and false trendline breakout

Forex chandle momentum oscillator

Forex Aroon Oscillator

Forex Trading System - ADX Indicator

Forex ; another Scalping Strategy

Forex Stochastic Momentum Index

Forex Detrended Price Oscillator

Forex Volume Indicator

Forex : Most Volatile Active Traded

Forex ; Price Envelopes

Forex ; Williams Oscillator

Forex CCI Divergence Breakout

Forex H4 Bolinger Bands

Forex ; Statiscal Trading getting edge

Forex ; EMA WMA Strategy

Forex > Chart's > Scalping Strategy

Forex - Killer Day Trading Strategy

Forex - Slingshot Reversal Strategy

my Trading Indicator - Simple System....( 1 )

2009-09-20T01:30:00.004+07:00

Forex Trading with Elliott Wave

2009-09-20T01:16:00.003+07:00

The Elliott Wave Principle, developed by Ralph Nelson Elliott in 1930s and 40s, is a powerful analytical tool that is still being used for forecasting stock market behavior. The basic concept of this Principle is that stock market prices rise and fall in distinct patterns and that those patterns can be linked together into waves.

Since it was first published, this classic guide to the Elliott Wave Principle has acquired a cult status globally among technical analysts. With subsequent new editions, the contributors have refined and enhanced the message of the original publication while retaining all the predictions from past editions.

Elliott Wave Counts may be summed up as follows:

Wave 1 is normally the most weak of the impulse waves. It is based on short covering of the bears from a previous move. The next Wave is created at the end of the first Wave and after the currency pair is sold off.

Wave 2 comes to an end when the market fails to make new lows.

Wave 3 is the most lengthy and most strong of the impulse waves. This leads to strong currency buying or selling in the trend's direction that usually starts slowly, but tends to accelerate as it breaks to new highs above the top of Wave 1.

A correction will occur, especially after a strong trend. Traders will then start making profits, paving the way for Wave 4.

Again, the currency pair will rally ushering in the Wave 5 rally. This Wave is usually supported by the retail traders and not institutional buyers and tends to lack the momentum generated in the third
images
This is in a nutshell Elliott Wave analysis can be deployed to enhance traders forex swing trade evaluations. A closer look into the Elliott Wave theory and other strategies could be useful for traders and enable them to use these as tools for increasing their forex swing trade opportunities.

When evaluating the Forex market for swing trade opportunities, the focus should be placed on forecasting directional changes for a given currency pair, relying on technical analysis. In this analysis there are different indicators. The most reliable tool used to predict Forex market swings is Elliott Wave analysis that can be used to identify trends and countertrends, continuation and exhaustion of trends and also to evaluate the potential of pricing targets of a trend.

Elliott strongly believed that the market's movement was a direct result of the mass psychology of the time and that the stock market is a fractal that is an object similar in shape, but at different scales. An apt example of a natural fractal is a stalk of broccoli. The stalk and individual branches look strikingly the same because the branches are smaller in scale. According to Elliott this mass psychological move resembles the herding tendency in human beings.

Summing up, the market price actions are not the cause of economic growth or slow down, but the reflection of the mass psychology of investors. If the mood of the investing public is upbeat then a bull market ensues. This is counter to what most individual perceive, that is because there is a bull market the mood of the investing public is upbeat

---- by;Forex Cycle ----

Forex - RSI and Divergence

2009-09-15T00:22:00.005+07:00

Technical indicators are constructed by manipulating some aspect of price such as a moving average of prices over a 10 day period. The Relative Strength Indicator (RSI) tries to anticipate a change in the trend.

This is a leading indicator of a trend change. The results are used to deliver messages about the strength of the market. It is called an oscillator because the indicator readings are converted into percentage results which range from 0% to 100%. The position of each day’s indicator reading gives the trader an indication of the strength, or weakness, of the existing price trend.

The RSI is calculated by monitoring changes in the closing prices of the stock. The number of higher closes is compared to the number of lower closes for the selected period.

The RSI compares the internal strength of a stock by looking at the average of the upwards price changes and comparing it with the average of the downward price changes.

The results are expressed as a percentage, providing the upper and lower boundaries. The plotted results oscillate between these two levels and give traders information about the speed and acceleration of the changes.

Traders use either a 14, 9, or 7 day period in the Relative Strength Calculation.
In this sense the RSI is very similar to a stochastic and uses similar principles. Where the stochastic quantifies the ability of the market to close near the high or the low of the day, the RSI quantifies the strength of the way the market moves higher, or lower. The over-bought and over-sold signals are the same as any oscillator, although with an RSI they are traditionally set at 70% and 30%.
The most significant trading signal delivered by any oscillator style indicator is a divergence signal. This sounds complicated but it just means that the significant valley patterns shown by the RSI trend in the opposite direction to the significant valley patterns as shown by the price line chart. A valley is created by two distinct lows that each precede a rally from a downtrend. This builds a valley in the price chart. The lows of these valleys are joined with a short trend line as shown.
The corresponding lows on the RSI indicator are also joined by a short trend line. When the RSI line slopes differently from the price chart line, a divergence occurs. When these valleys form below the 30% area on the RSI, or form peaks above the 70% level, they are most reliable. Oscillator activity between these levels is not used to find divergence signals.
signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.

signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.

Forex Schaff Scalping Strategy

2009-09-07T13:53:00.004+07:00

here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.

However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.

Here goes my Scalping method:

Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping

Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend

Go Short When:
1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75 3. MACD is in downtrend 4. Parabolic is in downtrend Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.

Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.

Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)

Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.

Once again, good luck with your trades and keep making pips
Here is another example of Scalping with Schaff Trend ...

Note that I've used 10 and 90 as the Trend Changing readings for Schaff. Also note that DMI (along with ADX) can also be used as an additional confirmation.

---- SBJ -- Asherewt -- FxstrategyRvld ---

Forex Strategy ; Two Timeframes ("TC Experts")

2009-09-02T22:50:00.011+07:00

This strategy uses the TC Expert indicator in Two Timeframes. The 1-Hour TC Expert is used to determines trend. The TC Expert on a 10-Minute Chart is used for Trade Entry and Exit.
When the 1-Hour TC Expert is bullish, for example, then Trend is UP, and the strategy will buy when the 10-Minute TC Expert turns bullish. The strategy exits a buy trade when the 10-minute Expert turns bearish, or when price closes below a Gann Hi/Lo line that is used as a trailing stop.
Indicators used in this strategy & their inputs:
1-Hour Chart: TC Expert (7,18,36,7)
10-Minute Chart: TC Expert (7,18,36,7)
Gann Hi/Lo Activator - Gann HiLoA(7)

Chart 1. The TC Expert is composed of two separate indicators.
Trend
Trend is the direction of the TC Expert on the 1-Hour Chart. When the Schaff TC Expert is applied to the chart, two indicators appear, both a black Schaff Trend Cycle (‘STC’) and a green Schaff Trend RSI (‘STR’).

Chart 2. Trend changes are highlighted by the the red and blue vertical lines, after which the TC Expert indicator turns bearish and bullish, respectively.
Trend is UP when the TC Expert is bullish. The TC Expert is bullish when both the black STC and the green STR are rising above the lower red-dotted Buy line shown in Chart 2.
Trend is DOWN when the TC Expert is bearish. The TC Expert is bearish when both the black STC and the green STR are falling below the upper red-dotted Sell Line.
Trade Entry
The strategy uses the TC Expert and a Gann HiLo line on a 10-Minute Chart to time when to enter a trade. When Trend is UP the strategy will buy when price is above the Gann HiLo line and the 10-Minute TC Expert turns bullish. If Trend is DOWN the strategy sells when price is below the 10-Minute Gann HiLo line and the 10-Minute TC Expert turns bearish then the strategy sells.

Chart 3. With a DOWN Trend in place, a Sell Entry occurs on the 10-Minute Chart at 9:20 at 2.0387.
TC Expert Strategy: Buy Entry and Sell Entry rules:
BUY when 1-Hour Trend is UP and
1. The 10-Minute TC Expert turns bullish and
2. Price is above the Gann HiLo line
SELL when 1-Hour Trend is DOWN and
1. The 10-Minute TC Expert turns bearish and
2. Price is below the Gann HiLo line
Trade Exit
Various exit tactics are used, depending on how price could develop.
Trend Indicator Changes Direction
If the 1-Hour Trend changes direction then exit the trade.
Trade Entry Indicator Changes Direction
If the 10-Minute TC Expert changes direction then exit the trade.
Price Closes beyond Trailing Stop
The Gann HiLo line is used as a Trailing Stop on the 10-Minute Chart. If the strategy position is long, then exit if the 10-Minute price closes below the Gann HiLo. If the strategy is short, then exit if price closes above the Gann HiLo.
The chart below follows the GBPUSD trade shown in Chart 3.

Chart 4. The sell position exits when the 10-Minute TC Expert turns bullish.
The sell trade entered on October 3 at 9:20, at 2.0387, exited at 16:40, at 2.0313, when the 10-Minute TC Expert turned bullish (with both the STC and STR rising above 25). The result is a profit of 74 pips.
TC Expert Strategy: Buy Exit and Sell Exit rules:
Exit a BUY Position if one of the following situations occur
1. Trend changes to DOWN, or
2. The 10-Minute TC Expert turns Bearish, or
3. Price closes below the Gann HiLo on the 10-Minute Chart.
Exit a SELL Position if one of the following situations occur
1. Trend changes to UP or
2. The 10-Minute TC Expert turns Bullish or
3. Price closes above the Gann HiLo on the 10-Minute Chart.
Initial Stop Loss Order: Controls trade risk. Establish before the trade.

--- by : FX Strategy --------

Forex ; Volume Indicator

2009-08-30T23:10:00.004+07:00

Trading with Volume indicator offers the following features:
Volume confirms the strength of a trend or suggests about its weakness.
A rising volume indicates rising interest among traders, while a falling volume suggests decline in interest.
Extreme Volume readings — Climax Volume often highlight price reversals.
Points where market trades on high volume are the points of strong support and resistance.
All various kinds of breakouts and market spikes can be validated or voided with a help of Volume indicator.
Details
Why Volume
Volume is the second most valuable data after the price itself.
Large volume signifies that there is large number of market participants involved, including financial institutions. The last ones bring the highest turnover to the market, and if they are trading, it means the interest to the price at certain point and/or to the trend overall is high.
Small volume tells that there are very little participants in the market, neither buyers no sellers have any significant interest in the price. In addition, no financial institutions will be involved, thus a market is going to be moved only by individual traders and so the move will be weak.
Volume and Trend
Volume helps to learn about the health of a trend.
An uptrend is strong and healthy if Volume increases as price moves with the trend and decreases when price goes counter trend (correction periods).
When price is going up and volume is decreasing, it tells traders that a trend is unlikely to continue. Price may still attempt to increase at a slower pace, but once sellers get the grip on it (which will be signified by an increase in volume on a down candle), the price will fall.
A downtrend is strong and healthy if volume increases as price moves lower and decreases when it begins retracing upwards.
When price is falling and volume is decreasing, the downtrend is unlikely to continue. Price will either continue to decrease, but at a slower pace or start to rise.
Volume and Reversals
To understand the nature of spike in volume before a trend reversal, traders need to know how the data for volume indicator is gathered in Forex.
Forex volume cannot be measured precisely as it is done, for example, in Equity market, where every share traded equals 1 volume, and selling 200 shares means 200 in volume. Forex by nature cannot count how many contracts and what sizes of contracts were traded at any given time, because the market is wide and decentralized. Therefore to count volume in Forex the number of ticks/changes in price is used. 1 tick measures 1 volume. As it moves up and down volume adds up.
When volume rises, it means lots of participants are actively selling and buying currencies. When volume spikes at certain price level, traders know that there was lots of interest shown by traders to that price level. If there is a lot of interest, it means the level is an important one.
This simple observation of a volume indicator allows identify important Support and Resistance levels, which would certainly play significant role in the future.
Where Volume spikes are distinctively extreme (larger than any historical spikes around) — Climax Volume — traders should look for clues from the price itself. Candles that have a narrow range, spinning tops/bottoms, dojies, stars, other candles with extremely large tails have highest chances to become the price turning points.
Single volume spikes only bring price to a halt. A lot of stand-alone average volume spikes occur during fundamental economic announcements on daily basis. News can cause spike in volume for a single day and then volume disappears again.
Reversals, however, happen not over one day but a series of days. If higher than average volume stays on the market for several to many days a huge volume spike — volume climax — will crown a point of market reversal.

Volume and Breakouts
Volume indicator helps to validate all kinds of breakouts.
When market is consolidating on a low volume, a sudden pick up in volume would signify that a breakout is due.
Breakout occurring on rising volume is a valid breakout, while a breakout that caused no interest from traders as it is happening on a low volume is more likely a false one.
Trend lines and other breakouts are validated or voided the same way.

------ SBJ ------ Fx Indicators -------

Forex “Detrended Price Oscillator”

2009-08-28T09:23:00.002+07:00

What is DPO indicator about
Detrended Price Oscillator (DPO) is an indicator for eliminating trends in prices.
DPO allows to more easily identify cycles and, based on that, overbought/oversold levels.
Detrended Price Oscillator (DPO) indicator is used to isolate short-term cycles, from long-term cycles.
By eliminating long term trends, DPO helps to focus on shorter price moves/cycles, thus again making it easier to spot an overbought/oversold level.
How DPO indicator does it?
Detrended Price Oscillator compares closing price to a prior moving average, eliminating all cycles that are longer than the moving average.
Standard DPO indicator setting is 20-period.
The indicator oscillates around zero level, and, if to take 20-day DPO, it'll remove cycles longer than 20 days.
How to trade with DPO indicator

DPO trading During Trending Markets
Identify a trend and trade in the direction of the main trend.
Buy when DPO hits zero from above or dips below zero for a while and then goes up above zero.
Sell when DPO hits zero level from below or even crosses above zero for a while and then turns back below zero.
DPO trading During Ranging Markets
Identify overbought and oversold levels individual for every currency pair based on the past price behavior.
Buy after DPO dips below an oversold zone and then exits from it closing above the oversold zone.
Sell rafte Detrended Price Oscillator enters an overbought zone and then exits from it and closes below the overbought zone.

------ Fx Indicator -----

Earn Monthly Cash from "Cashbackforex"

2009-08-24T00:55:00.003+07:00

Affiliate and Cash Back Rebates from “CASHBACKFOREX”
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----- SBJ --- cashbackforex ----------

Forex Stochastic Momentum Index

2009-08-24T00:49:00.002+07:00

Stochastic Momentum Index
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 Scalping Strategy

2009-08-23T00:58:00.008+07:00

Urban Towers Scalping Strategy
Indicators : Blue MA
Time Frame : 15min

Description : During a trend, when the market retraces to the blue MA with at least 3 consecutive lower highs (3 towers), we enter at the break of the high of the last high. Ok let me explain in details one by one.

Steps to Follow :

- Price is above the blue MA trend is up
- Price is below the blue MA trend is down
- Market retraces towards the blue MA with 3 consecutive lower highs (in a uptrend)
- At the break of the high of the last candle, we enter long (in a uptrend)

Trade Example

Alright, what do we know right off the bat by looking at this. We know the market is in a uptrend because the market is above the blue MA. The market retraced to the blue line with 3 consecutive lower highs (3 towers) as we can see the red candles above. Next, we entered long at the break of the high of the last retracement candle - which in this case is 3rd tower as we can see above

Now here is a example of a “no good trade”.
this example, the market was in a uptrend, it did a 1, 2, 3 tower retrace but it never had a breakout on the high of the 3rd tower, in fact, the market continued down and changed to a down trend. This example is to show that this strategy helps avoid many fake trades.

--- SBJ ---- by ; Navin, UrbanFx ------

Forex Trading System - ADX Indicator

2009-08-14T15:19:00.005+07:00

Forex ADX
Trading with ADX indicator involves the following signals:
ADX staying below 20 level — there is no trend or the trend is weak.
ADX moving above 20 level — trend is strong.
ADX passing 40 level — trend is extreme.
ADX value rising — trend is going stronger, falling — trend is weakening.
+DI stays on top of -DI — uptrend is in place.
-DI stays on top of +DI — downtrend is in place.
Two DI cross — trend is changing.
Details
The Average Directional Index (ADX) depicts a presence or absence of a trend. ADX advices on the strength of the dominant forces that move market prices here and now.
In other words, ADX advices on trend tendencies: whether the trend is going to continue and strengthen or it is about to lose its positions.
The author of Average Directional Index J. Welles Wilder considers his ADX indicator as a primary achievement; and only because signals given by ADX are not an easy to take a grasp of from the first look, many Forex traders avoid using ADX in favor of more visually comprehensive indicators.
How to interpret ADX
ADX indicator has 2 lines: ADX itself (white), +DI (green) and -DI (red).
Traders then need to draw a horizontal line at the level of 20.
All readings of ADX which are below 20 suggest a weak and unclear trend, while readings above 20 indicate that a trend has picked up.
That is, basically, the simplest explanation of the purpose of ADX. ADX allows Forex traders to determine whether the trend is strong or weak and thus choose and appropriate strategy to trade with: a trend following strategy or a strategy fit to consolidation market periods with no significant price changes.
There is also additional line to be added to ADX indicator window - at 40 level.

How to trade with ADX
Trading with ADX looks as follows:
If ADX is traded below 20 - there is no trend or the trend is weak, thus a non-trend-following strategies should be used, otherwise losses may occur as a result of false signals and whip-saws taking place. An example of non-trend-following method is channel trading.
If ADX is traded above 20 but below 40, it is time to apply trend following methods. An example would be: Forex trading Moving averages or or trading with Parabolic SAR indicator.
When ADX reaches 40 level, it suggests an overbought/oversold (depending on the trend) situation on the market and it is time to protect some profits of at least move Stop loss order to a break even.
When ADX passes 40 level, it is a good time to begin collecting profits gradually scaling out of the trades on rallies and sell-offs and protecting remaining positions with trailing stops.
ADX -/+ DI lines are used for spotting entry signals. All -/+ DI crossovers are disregarded while ADX remains below 20. Once ADX peaks above 20 a buy signal occur when +DI (green) crosses upwards and above -DI (red). A sell signal will be the opposite: -DI would cross +DI downwards.
If after a newly created signal another opposite crossover happens within a short period of time, the original signal should be disregarded and position protected soon or closed.
ADX indicator is never traded alone, but rather in combination with other indicators and tools. ADX indicator most of the time gives much later signals comparing to faster reacting moving averages crossover or Stochastic, for example, however, reliability of ADX indicator is much higher than for other indicators in traders' toolkit, which makes it a valuable tool for many Forex traders.
And just one more idea to test out:
When ADX rises above 20 for the first time and then goes flat for some time, there is believed to be a new trend being born and the reason for ADX being currently flat is because market reacts to this new trend formation by making first initial correction. During this correction it is a good time to initiate new orders.

Forex Aroon Oscillator

2009-08-11T08:42:00.003+07:00

Trading with Aroon Oscillator involves the following signals:
Aroon Oscillator line above the zero — suggestion of a bullish market.
Aroon Oscillator line below zero — a bearish market.
The further the Oscillator line is from Zero level, the stronger the trend.
When values are near Zero line, the market is trending nowhere.
Details
The idea behind Aroon Oscillator
Aroon oscillator is based on Aroon Indicator. Aroon Oscillator is a trend-following indicator that illustrates the strength of a current trend and its potentials to last.
How to interpret Aroon indicator
An oscillator that oscillate between -100 and 100.
It oscillates around zero line, defining times when AroonUp and AroonDown lines of Aroon Indicator cross each other.
Aroon Oscillator Formula
Aroon Oscillator = AroonUp - AroonDown.

Aroon Forex charts example

Conclusion
The positive value of Aroon Oscillator indicates an uptrend, while the negative value indicates a downtrend. The higher the absolute value of Aroon Oscillator, the stronger the trend.

>>>>> See Aroon Indicator...Click here >>>>>>

--- SBJ ---- by:FxIndicator ------

Forex Chande Momentum Oscillator

2009-08-08T22:18:00.004+07:00

The Chande momentum oscillator is calculated within preset time interval by the following formulas:
diff = Pi - Pi-1,
where Pi -the price (usually closing price) of the current period;
Pi-1 -the price (usually closing price) of the previous period;
If diff > 0, then cmo1i = diff, cmo2i = 0.
If diff < cmo2i =" -diff," cmo1i =" 0." sum1 =" Sum(cmo1," sum2 =" Sum(cmo2," cmo =" ((sum1-sum2)/(sum1+sum2))" style="font-style: italic;">The CMO Oscillator basic methods of using are
- As the indicator of tend. The sell operations are performed when CMO of the short period crosses the CMO of the long period. Purchase operations are performed when CMO of the long period crosses the CMO of the short period.
- The standard method of CMO interpretation is looking for overselling/overbuying. Overselling occurs if value is under -5. Overbuying occurs when the value overcomes +50 point. The aforesaid figures are similar to the 70/30 level of RSI Indicator.

The Chande Momentum indicator is a momentum oscillator. This oscillator can be used as a trading signal in two various ways.
The first method is to purchase when the oscillator crosses above its MA line and to sell when the oscillator crosses below its MA line. The second is to measure overbought or oversold levels for a certain currency.
The Chande Momentum indicator is built using the sum over a certain period of price changes on up days, sum (high-low) up, and the sum over the same period of prices on down days, sum (high-low), down. An exponential this line's moving average is afterwards overlaid upon the oscillator as a signal line. The oscillator needs two parameters: the period for the moving average and the period when the price ranges will be summarized.

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

Forex Trading Strategy

2009-07-31T18:39:00.006+07:00

Forex ; True and false Trendline Breakouts
When price breaks through a trend line, how can we tell whether it is a true or a false break? Well, we can't tell or predict until we see it later on. But, we can analyze what price has been doing prior to this breakout in order to form our own opinion and bias, and either pay attention to the breakout or disregard it.
We can always go back and look at waves pattern, or simply, whether price was making Lower Lows (LL), Lower Highs(LH), Higher Highs (HH) etc..?

Let's look at the next two screen shots:

(The market was in a downtrend. We drew a trend line connecting first two tops.
Price was obeying the line, but then at some point (where I put a yellow question mark), price breaks the trend line and closes above it.
How can we know at that moment whether we could trust this breakout or not?
The simplest and popular method is to wait till price returns back to test the strength of the broken trend line again. Then, if it holds, traders would say that a breakout is confirmed and enter either somewhere near the test point or when price advances through the earlier established breakout mark.
Here is a quick example (I drew the red candles myself to illustrate the point):

After the break of a trend line price returns, tests the line again, finds support and, as a result, goes up. Yellow dotted line indicates the point of entry with a Buy order.
BUT, this kind of re-tests don't happen all the time. Sometimes price would just break the line and advance further without looking back. What to do then?
This is why I like to look back at older data to learn what happened prior to the breakout.
What can we see on the first example (first screen shot above)?
Price was consistently making Lower Lows. But, most importantly, prior to
breaking a trend line, price made another Lower Low, telling us that Sellers were still strong and were able to push the price down. Based on this, we can say that this particular breakout that we were questioning cannot be "trusted". (I use the word "trusted", because whether the breakout was valid or not we will only learn later).
Now, let's look at the next example below:

Let's start form the beginning: price is making Higher Highs and we draw our red trend line.
At some point later the red trend line gets broken. Can we trust it? The answer is "no, we can't", because we still can see a higher high, which means that buyers were still able to push the price higher.

Few candles later price is bottoming out, attempts another up-move, but fails and puts a Lower High this time.
That's nothing else but a trigger that bulls are weakening and either one of the trend lines (solid or dashed in brown) which you'll be able to identify will become the point of truth: if it gets broken - the price is very likely to move lower.

That's it. A simple method, which might help you to judge about most likely outcomes of the trend line breakouts.
Remember, that in the uptrend you need to take into consideration only Swing Highs, in the down trend and for downtrend trend lines - only Swing Lows.

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

Forex Chaikin Money Flow

2009-07-26T13:26:00.005+07:00

The Chaikin Money Flow (CMF) indicator was developed by Marc Chaikin to create an oscillating indicator for his earlier, cumulative indicator Accumulation/Distribution. Both indicators measure the degree to which money is flowing into or out of a security or currency. Chaikin created these indicators to expand and improve on an earlier volume indicator, On Balance Volume.
On Balance Volume (OBV) compares a currency pair's closing price with its previous day's close and either adds or subtracts the volume to a cumulative total, if the pair is up or down respectively. Accumulation/Distribution (A/D) altered the parameters of OBV by using the mean price, the midpoint between the periods high and low, to decide whether volume for that period was being accumulated (bought) or distributed (sold). After categorizing the period either as accumulation or distribution A/D then adds or subtracts volume based on the degree to which the pair closed above or below its open. The main difference between Chaikin’s two volume indicators is that Accumulation/Distribution is a cumulative running total while Chaikin Money Flow oscillates around a zero line.

Function
Chaikin Money Flow says:
• If a currency pair closes in the upper half of its trading range on a particular day and volume is strong, the pair is being accumulated.
• If thepair closes in the lower half of its range on strong volume, the pair is being distributed.
The values of CMF can also be used to indicate buying and selling pressure:
• Values that bounce between 0.1 and -0.1 and otherwise hang around the zero line are not strong enough to offer a bullish or bearish signal.
• Values above 0.1 and below -0.1 are indicative of buying and selling pressure respectively.
• Values above 0.25 and below -0.25 are indicative of strong buying and selling.
As with other indicators, Chaikin suggested looking for a divergence between the pricing action and the oscillator.
• If a currency pair trends up while the CMF rolls over and heads down, the currency pair will very likely top out soon after.
• On the other hand, if a currency pair trends down while the CMF bottoms out and begins to move up, the pair will very likely follow.

----- SBJ ----- by: cmsFX --------

Forex Chart ; Symetrical triangle pattern

2009-07-16T17:02:00.004+07:00

This pattern shows two converging trendlines (support levels & resistance levels) and is (1) a bearisch formation that usually forms during a currency pair downtrend as a continuation pattern (downtrend will continue) or (2) a bullish formation that usually forms during a currency pair uptrend as a continuation pattern. (uptrend will continue)

This pattern is confirmed when the currency pair price breaks out of the symmetrical triangle formation (1) to the downside and closes below the lower support trendline in order to continue the downtrend or (2) to the upside and closes above the upper resistance trendline in order to continue the uptrend.

What does a Symmetrical Triangle Formation look like?

The symmetrical triangle is marked by two important trend lines. At its top, there is a line of resistance where traders are willing to sell the currency pair. This resistance line communicates the fact that bearish currency traders are over time willing to pay lower and lower prices for the currency pair indicating a possible break out to the downside.

At it's bottom, the support line communicates the fact that bullish currency traders are over time willing to pay higher and higher prices for the currency pair indicating a possible break out to the upside.

How to trade this pattern?

For it's best prediction, an established trend should exist, either a strong down or a strong uptrend. Once the currency pair breaks out the symmetrical triangle, most likely, the price will continue it's previous trend.

Trade the breakout!

Chart example

Please note how the previous trend is an uptrend, once it breaks out the symmetrical triangle, it's uptrend continue!

Forex ; Trendline Support and Resistance

2009-07-10T17:45:00.003+07:00

The trendline. A trendline is a main initial element for the price chart analysis. While the market moves in any direction not along a straight line but along a zigzag, the mutual placement of upper and bottom points of those zigzags permits to plot a line connecting the significant highs (peaks) or the significant lows (troughs) of an appropriate zigzag using technical tools of the computer program.

To draw a trendline only two points are necessary and the third one is the contact point confirmation. On a bullish trend chart it should be drawn using troughs, on a bearish using peaks. The trendline and a line which is about parallel to it and drawn on the opposite side (through peaks on a bullish trend and through troughs on a bearish) form the trade channel. Both lines are then channel's borders.

Lines of support and resistance. The upper and the bottom borders of trade channels are called accordingly support and resistance lines. The peaks represent the price levels at which the selling pressure exceeds the buying pressure. They are known as resistance levels. The troughs, on the other hand, represent the levels at which the selling pressure succumbs to the buying pressure. They are called support levels. In an uptrend, the consecutive support and resistance levels must exceed each other respectively. The reverse is true in a downtrend. Although minor exceptions are acceptable, these failures should be considered as warning signals for trend changing.

The significance of trends is a function of time and volume. The longer the prices bounce off the support and resistance levels, the more significant the trend becomes. Trading volume is also very important, especially at the critical support and resistance levels. When the currency bounces off these levels under heavy volume, the significance of the trend increases.

The importance of support and resistance levels goes beyond their original functions. If these levels are convincingly penetrated, they tend to turn into just the opposite. A firm support level, once it is penetrated on heavy volume, will likely turn into a strong resistance level. Conversely, a strong resistance turns into a firm support after being penetrated. In general, to evaluate the reliability (that is the possibility of a break) of the trade channel borders taking a decision to close or to save an existing position one should govern himself with following rules:

1. A channel is the more reliable the longer it exists. Hence, the solidity of very old channels (e.g. existing more than 1 year) decreased sharply.
2. A channel is the more reliable the more is his width.
3. The resistance may be broken if it is bounced on the background of a growing volume.
4. A steep channel is less reliable in compare to a gentle one.
5. The support may be broken independent on the volume.

----- SBJ --- by; T.Anderson -----

Forex Forecasting ; The Elliott Wave Principle

2009-07-02T14:01:00.007+07:00

Developed by Ralph Nelson Elliott in the 1930s, the Elliott wave principle is a very popular technical analysis tool that allow traders to forecast trends in the foreign exchange market or any other financial market such as the stock market.

The Elliott Wave Theory was developed due to the fact that financial markets are traded in five distinct waves going in the direction of the main trend followed by three distinct waves going against the main trend that can be forecasted with an understanding of crowd psychology.

Understanding Elliott Waves

According to Ralph Elliott, currency pair prices move in waves, five impulsive waves and three corrective waves (a "5-3" move). Impulsive waves move in the main direction of the trend and corrective waves move against the main up-or down trend.

Let's take a look at the following Elliott Wave pattern for better understanding:

Impulsive and Corrective Waves
To fully understand the Elliot Wave Theory, it is important to understand the psychological rationale for each of these waves since the zigzag movement of prices represents the ebb and flow of investor optimism and pessimism. Given an uptrending market:
Wave 1 (Impulsive): Minor Upwave In Major Bull Move – In Wave 1, prices rise as a relatively small number of market participants buy a currency pair for either fundamental or technical reasons, pushing prices higher.
Wave 2 (Corrective): Minor Downwave In Major Bear Move - After a significant run-up, investors may get fundamental or technical signals indicating that the currency is overbought. At such time, Wave 2 develops when original buyers decide to take profits while newcomers initiate short positions. Price action reverses, but generally does not retrace beyond its initial low that attracted buyers at Wave 1.
Wave 3 (Impulsive): Minor Upwave In Major Bull Move - Often the longest wave of the five, Wave 3 represents a sustained rally, as a larger number of investors use the Wave 2 dip as a buying opportunity. With a broader range of
buyers, the security enjoys a stronger push higher, with prices extending beyond the top formed at Wave 1.
Wave 4 (Corrective): Minor Downwave In Major Bear Move - By Wave 4, buyers begin to become exhausted and again take profits in reaction to overbought signals. Generally, there is still a fair amount of buyers, so the retracement here is relatively shallow.
Wave 5 (Impulsive): Minor Upwave In Major Bull Move - Wave 5 represents the final move up in the sequence. At this point, buyers as a whole are motivated more by greed than any fundamental justifications to buy, and bid prices higher irrationally. Prices make a high for the move before a correction or reversal ensues. The high in Wave 5 often coincides with a divergence in the relative strength index (RSI).

This is a view including the correction wave that follows the basic Elliott Wave:

A-B-C Corrective Waves*

Wave A: Correction To Rally – Initially Wave A may appear to be a correction to the normal rally. However, if it breaks down into five subwaves, it indicates that a new market trend may have developed.
Wave B: Bear Market Correction – Wave B tends to give bears an opportunity to sell as others take profit on their short trades or exit their long positions.
Wave C: Confirms End Of Rally – Wave C is the last wave of the cycle. At this point, Wave 3 typically breaks key support zones and most technical studies confirm that the rally has ended.

Minimize Forecasting Errors With Elliott Wave*
Since many different waves can exist during the same time frame, increasing the risk of forecasting error, traders should follow certain rules to minimize risk. The most important of which is to follow the principle that the “the trend is your friend.”

This means that it is more prudent to only look for opportunities sell into minor waves when the major wave is a downtrend and to buy when the major wave is an uptrend. More rules can be used though to determine levels for placing stop-loss orders or to exit the trade.

Fibonacci ratios are one of the most useful ways of identifying possible peak or
bottoms of wave cycles. A popular relationship that exists is that Wave 2 retraces 38% of Wave 1. 50% and 61.8% retracements are also frequently seen.

Below is an example of a five-wave move up in GBP/USD:

------- SBJ ---- by; Jim Fot ------

See Forex Signal Indicator ..... click here

Forex Technical Indicators

2009-06-28T11:26:00.005+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), Price 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 DemandIndex, 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; Danniel s ------

Forex H4 Bollinger Band

2009-06-25T18:09:00.005+07:00

Open the 4 hour chart and choose whatever currency you want.
Insert the Bollinger Band (20) indicator and be sure that its center line is appearing.
Identify 2 valid lower points OR 2 valid higher points in the Bollinger Band and drop a line from the first to the second line; it will be our break line.
Now when a candle closes above the break line issued from the higher points and in case the center line of the Bollinger band in the 1 hour chart crosses the break line then we have a LONG Trade.
If the candle in the 4 hours chart closes under the break line issued from the 2 lows points and in same time the center line of the Bollinger band crosses the break line in the 1 hour chart, then we are in a SHORT trade.
If the candle in the 4 hours chart closes under the break line issued from the 2 lows points and in same time the center line of the Bollinger band crosses the break line in the 1 hour chart, then we are in a SHORT trade.
I will give an example:
Open the 4 hours chart, open NZD/USD currency and locate the date 2008/1/16 2:00 AM EST

You can see the breakLine I dropped; it is a 2 lows points Bollinger Band which I mention it above

Now wait till a 4 hours candle break the BreakLine, you can see the candle (A) first breaked the Breakline, but is it a valid Sell Entry ? we must confirm it. So we open the 1 hour chart and locate the same Point (A) in the 1 hour chart.

We look at Point (A) in H1 and we locate its center Line (The Center Line of The Bollinger Band), as you remark that the center line didn't cross the Break Line as the candle A did; so it is not a valid sell entry, and as you can see the price go up again. So we wait another opportunity.
We reopen the H4 (4 hours chart) and wait till point (B) is formed, we see the H4 candle crossed the BreakLine, is it a valid sell entry ? we open the H1 chart and locate the Candle (B) , we look at the center\ line we see the center line crossed the breakLine so we do a short because we confirm the sell entry.

----- SBJ ---- by; RpcHost – E. Revy ----

Forex CCI Divergence Breakout

2009-06-15T17:47:00.008+07:00

Timeframe : 15mins and above
Indicator : CCI (Commodity Channel Index
Description : This strategy uses hidden divergence and price action to take a breakout trade. Divergence is the one
key indication in the market that can be useful and is not lagging. It is a sign of a market reversal coming up in the near future. Understanding and making use of divergence will help a technical trader greatly when analyzing the market.

Note : On my CCI, I always connect my peaks (tops) never the bottoms (dips).

Long Breakout

- Price must be trending downwards
- CCI must go towards the upward direction and bounce
- After a bounce on the CCI, connect your high peaks on your price
- Aggressive : At a clear close above the trend line enter long
- Conservative : After the trend line is broken, wait for a pullback to the trend line to enter

Short Breakout
- Price must be trending upwards
- CCI must go towards the downward direction and bounce
- After a bounce on the CCI, connect your dips on your price
- Aggressive : At a clear close below the trend line enter short
- Conservative : After the trend line is broken, wait for a pullback to the trend line to enter

Stops
- If your trend line is not that steep, you can keep your stops at the high/low of the breakout candle.
- If your trend line is steep, keep your stop at the swing high/low
- If your trend line is medium steep, keep your stop at the low of couple candles away

Exits
- 1:1 Risk to reward. If your stop is -12 pips your limit should be +12 pips.
- Open 2 lots. If your stop is at -10 pips, once your trades goes in your favor and you're at +10 pips, close 1 lot and let the other one run. Exit at Support and Resistance levels.
the other one run. Exit at Support and Resistance levels.
- Exit at the nearest 50 or 00 level. These are psychological levels. (make sure your exit is at least the same number
of pips as your stop, otherwise dont enter the trade)
- Trailing Stop. Once in a trade, at the close of each candle, place your stop 1 pip below the low (if in a buy trade). Vise versa for sell trade.

Short Example

Long Example

Spread Trading Strategy
A properly placed stop loss can benefit your spread trading strategy. Make money whichever way the market is moving, rising or falling. Spread trading is tax free, opening a trade is easy, and you can close out positions quickly. Try it!

------- SBJ ------ by; Navin prithvani ------

Forex ; Most Volatile Active Traded Currency Pairs

2009-05-24T14:55:00.005+07:00

The picture below shows the most volatile active traded currency pairs sorted by their average daily trading range. Average currency pair trading ranges are calculated from the start of the year 2008 to April 2009.

As you can see in the picutre above, the most volatile currency pairs are GBP/AUD, EUR/NZD and the GBP/JPY while the less volatile pairs are the EUR/GBP, NZD/USD and the EUR/CHF.

---- SBY ---- Kathy lien -------

FOREX ; Diversfying Trading Strategies

2009-05-24T14:47:00.004+07:00

The critical difference between who will win and who will lose in the business of Forex market trading is learning how to manage your money. For example, if 100 Forex traders begin trading by using a system with 60% of winning odds, only about 5 of those traders would see a profit by the end of the year. Despite those 60% winning odds, only 95% of those Forex traders will lose because of poor money management skills. When entering a trading system one must have great money management skills in order to succeed. Traders enter the Forex system to make a profit, after all, not to lose money.

The amount of money you will put on a trade and the risks you are willing to accept for that trade is money management. It is very important to understand the concept of managing money and to understand the difference between managing money and trading decisions, in order to diversify your Forex trading strategies. There are a number of different strategies that can be employed that will aspire to preserve your balance from any high-risk liabilities.

To begin with an understanding of the “core equity” is a necessity. Basically the core equity illustrates the starting balance of the account and what amounts are in the open positions. Your money management will greatly depend on this equity so it’s very important to understand the meaning of core equity. For instance, if you have an open account with a balance of $5,000 and you enter a trade with $1,000 your core equity will be $4,000. If you enter another trade for another $1,000 then your core equity would be $3,000.

From the outset, it’s best to diversify trades by using several different currencies. By only trading one currency pair, you will generate very few entry signals. For example, if you have an account balance of $100,000 and have an open position for $10,000 then that makes your core equity $90,000. If you choose to enter on a second position, then calculate the 1% risk from your core equity, but not your starting account balance. This would mean that the second trade would not exceed $900. Then if you decide to enter a third position, with a core equity of $80,000 then the risk from that trade should not surpass $800. The key is to diversify the lots between all currencies that have a low correlation.

For example, if you want to trade EUR/USD and GBP/USD with a $10,000 (1% risk) standard position size in money management, then it would be safe to trade $5,000 in each EUR/USD and GBP/USD. This way, you will only be risking 0.5% on each position.

When trying to diversify your Forex trading strategies, it’s very important to understand the strategies of the Martingale and the Anti-Martingale. The Martingale rule means: increasing your risks when you’re losing. Gamblers worldwide who claim that one should increase the size of a trade even when one is losing have adopted this strategy. Basically, gamblers use the rule in the following way: bet $20, if you lose bet $40, if you loose bet $80, if you lose bet $160, if you lose bet $320, etc.

The strategy is to assume that if you lose more than four times, then the chances to win become bigger and as you add more money, you will be able to recover from your loss. Although there are many people who choose to use this strategy, the truth is, the odds are still the same 50/50 regardless of the previous losses. Even if you lose five times in a row, the odds for your sixth bet, and even for those there after, are still 50/50. This is a common mistake made by those who are new to the trading business.

For instance, if a trader started with a $10,000 balance and lost four trades of $1,000 a piece for a total of $4,000 then the traders remaining balance would be $6,000. If the trader thinks there is a higher chance of winning the fifth trade and increases the size of the position four times, enough to recover from the loss, then if the fifth trade loses the trader will be down to $2,000. A loss like this can never be recovered back to the $10,000 starting balance. No experienced trader would use such a risky gambling tactic as the result is negative - losing all the money in a short period of time.

------ SBY ----- by; . David Mclauchlan -------

Forex Indicator - Price Envelopes

2009-05-14T13:07:00.004+07:00

Price envelopes consist of 2 moving averages and are plotted at a set percentage above and below a 3rd moving average. Price envelopes can be used to indicate overbought and oversold levels. Overbought conditions are found at the upper band and oversold conditions at the lower band.

Price envelopes consist of three moving averages:
• a middle band being a N-period simple moving average or exponential moving average (SMA or EMA)
• an upper moving average (SMA or EMA - upper band) plotted at a set percentage above the middle band
• a lower moving average (SMA or EMA -lower band) plotted at a set percentage below the middle band
The Percentage should be set so that about 85% of currency price activity is contained within the upper and lower bands. If currency price volatility increases/decreases, than adjust the bands %.

Interpretation

The interpretation is similar to Bollinger band Price Envelopes define the upper and lower boundaries of a currency pair's (or other instrument) normal trading range.

Popular Trading Signals from Price Envelopes

I. In trending markets

Take only signals from Price Envelopes in the main direction of the trend. If the main trend is up, take only oversold signals from Price Envelopes. Conversely, if the main trend is down, take only overbought signals from Price Envelopes.

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

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

------- SBY ------by; Laim Dum

See Forex Signal Indicator )) Click here....

FOREX Indicator – Williams %R Oscillator

2009-05-06T15:35:00.003+07:00

WILLIAMS %R Oscillator - Developed by Larry Williams, Williams%R is a momentum indicator used to indicate overbought and oversold levels.

Overbought market conditions are found at the upper band (readings from 0 to -20) and oversold conditions at the lower band (readings from -80 to -100).

Interpretation

The interpretation is similar to the Stochastic Oscillator, except that Williams %R ranging scale is plotted using negative values from 0 to -100.
0 to -20 readings are considered overbought; -80 to -100 readings are considered oversold.

Formula

%R= -100x[(Highest High - Current Close)/( Highest High - Lowest Low)]

Popular trading signals from Williams%R

I. In trending markets

Take only signals from Williams%R in the main direction of the trend. If the main trend is up, take only oversold signals from Williams%R. Conversely, if the main trend is down, take only overbought signals from Williams%R

Some currency traders identify the currency pair's long-term trend and then use extreme readings for entry points. If the mid long-term trend is bearish for a currency pair, then overbought readings could mark potential entry points to go SHORT (again).

II. In ranging markets

Go long when Williams %R falls below the oversold level and rises back above
Go short when Williams %R rises above the overbought level and falls back below.

It is recommended to use Williams%R in conjunction with other technical analysis tools to make a complete forex trading system.

----- SBY ----By:Kent Gerard

FOREX ; Statistical Trading – Getting the edge

2009-04-27T10:17:00.001+07:00

Statistical Trading consists of using statistical tools on historical price data in order to improve trading returns. The idea behind statistical trading is that if a trader can find even a slight statistical edge, then the expected return over a large number of trades will be positive.
I'm talking about the same kind of edge that a casino owner or an insurance company has. This is a statistical edge based on the law of large numbers. The casino doesn't know if a particular spin of the roulette wheel will be a win or a loss, but they know that after 1000 spins they will very likely be richer. Their edge is simple to describe using the game of roulette as an example. The player has a 1/38 chance of winning on any given spin, but will only receive 36 times their money if they win. So for 3,800 spins, the player will win 100 of them on average, yielding $3,600. But the player will lose the other 3,700 spins at a dollar each for a loss of $3,700. So what's the average take for the house? It's $100 for every 3800 spins, or a little under 3 cents per spin. It adds up...and all other casino games of pure chance (these don't include poker or blackjack which can involve some skill) are variations on this theme. That's why casinos get rich and gamblers go broke.
Insurance companies get rich in pretty much the same way. The company has no idea if a particular person will die this year, but they do have a pretty accurate idea how many people out of 1,000,000 policyholders with a given profile will die this year. Let's say that statistically the death rate of a given class of people (males over 55, smokers, and in moderate health for instance) is 4% so that we expect 40,000 to die this year. If each policy pays $10,000 for a death, then the company expects to shell out $400 million dollars in benefits...wow! So how much should the company charge in premiums for those one million policies each year then? Well how about $500 each? That gives the company $500 million in revenues for an expected $400 million benefit payout, leaving $100 million for salaries, expenses, profits and whatever. That's their statistical edge.
Now let's look at some ways that we can use this idea of a "statistical edge" in trading.
A very common way that traders try to apply the ideas of statistics is by planning trades in such a way that the potential gain exceeds the potential loss. This is the classic "cut losses short and let profits run" argument. For instance if you set up a trade so that you lose only $100 if you're wrong but gain $300 if you're right, then you only have to be right 1/4 of the time to break even. That's because for every four trades (on average) you would lose $100 three times and gain $300 one time, which is a wash (not counting commissions). And any numbskull can be right more than a quarter of the time right?
Right. Sure. So why aren't we all rich? After trading currencies for a while in 2004, I figured out what the problem was. A tight stop and a wide target will tend to make you wrong a lot simply because it's easier for the stop to get hit. On the other extreme, suppose
suppose you decide that you like to have a lot of winning trades, so you place very wide stops and very close price targets. Fine, now you'll win a lot of the time but the amounts will be small. And one loss, although uncommon, will tend to wipe out many little wins. So no matter where you are on the "trading setup" spectrum, wide stops and tight targets, tight stops and wide targets, or any combination in between, statistically it ends up being a wash. There is no intrinsic "edge" in any given trading setup scheme, including "cutting losses short and letting profits run." Heresy, I know.
Getting a real statistical edge requires that you can identify situations in which the price tends to move in such a way that you can set up trades which have a positive expected return. Expected return is just the percentage of wins multiplied by the win amount, minus the percentage of losses multiplied by the loss amount. An example will make this clearer.
Suppose you know that every time the USD/JPY rate crosses above its 20 day moving average, the price tends to move up more often than it moves down. Investigating this in more detail using historical data, you determine that there is a 40% probability that the price rises by 25 pips before it ever drops by 10 pips. Now even though this only happens less than half the time, it still allows you to set up trades with a positive expected return. This is because if you set your target at 25 pips and your stop at 10 pips, you will win 25 pips 40% of the time and lose only 10 pips during the other 60% of the time. The expected return is:

(40% x 25 pips) - (60% x 10 pips) = 10 pips - 6 pips = 4 pips

So on the average, you can expect to get 4 pips per trade using this strategy, even though you lose most of the time! But remember that this whole example is predicated on the knowledge that a positive crossover of the 20 day moving average tends to skew the expected return in your favor. That's your edge in this example.

---- SBY ----- by. Scott Percival ---------

FOREX Trading Indicator

2009-01-23T07:38:00.002+07:00

Forex - Slingshot 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 Trading Strategy

2009-01-22T08:12:00.000+07:00

Forex - Killer Day Trading Strategy

Basically, getting into a market either long or short is based on the combined use of the daily trend line and the obtained forex killer signal. It's a basic swing strategy to exploit the current trend and further price breakout.

1) First, check the moving average of closing prices of all major currency pairs on a daily chart (i.e. by using 5, 10 or 20 Simple Moving Average trend lines), to find out the price is either trending up or down for the USD dollar.

2) Obtain price correlation among all major currency pairs to determine an overall bias to either go long or short on the USD dollar on the day. This is the first condition filter.

3) Then, generate forex killer signals for all major pairs using shorter time periods (e.g. H1, M30 or M15).

4) When the forex killer signals are in line with the daily trend bias, enter the market long or short accordingly depending on the currency pair you choose to trade.

5) Stops must be in place whenever a condition disappears. You may follow the stop levels as suggested by the forex killer software, or you can choose to optimise your own risk reward ratio.

6) This strategy produces some good results with 30 minutes and 1 hour closing prices, and with 40-60 pips return for a position.

In summary, this simple strategy allows you to see the market better as a whole and pay less attention to the out-of-sync currency pairs. I would recommend you to check out and familiarise with the forex killer signal software, and use it as an analytical tool to assist trading and improve winning chances.

by Lloyd, ScoutForex.

Forex Chart Strategy

2009-01-18T20:42:00.004+07:00

FOREX > Chart > Scalping Strategy

Tag tags : Forex chart Scalping strategy

Forex Tips Strategy.

2009-01-18T19:53:00.001+07:00

Forex EMA-WMA strategy
What do you need:

1. one hour or 30 minutes timeframe
2. 18-period EMA and 29-period EMA (draw them using red)
3. 5-period WMA and 12-period WMA (draw them using yellow)

18 and 29-period EMA are two red lines which form a tunnel, this helps you to predict the trend. 5 and 12-period WMA shows you when to enter the trend, and how strong the trend is on a short term.

When the red tunnel is narrow, or thew two lines form only one line, you should open a position according to the following rules:
1. Go long when the 5 and 12-period WMA are crossed, the red tunnel is up.
2. Go short when the 5 and 12-period WMA are crossed, the red tunnel is down.

Close your positions according to the following rules:

1. The price reached the high, and 5-period WMA goes under 12-period WMA. Close all your long positions.
2. The price reached the bottom, and 5-period WMA goes beyond 12-period WMA. Close all your short positions.

When the red tunnel is crossed, close all your positions, because a trend reversal is about to come.

Forex Scalping Technique

2009-01-14T16:54:00.001+07:00

Currency: ANY
Time frame: 1 hour + 30 min + 5 min.
Indicators: 14 EMA, 21 EMA, 50 EMA, Bollinger Band (20, 2).
Entry rules: Enter on 5 minutes chart.
On 5 minutes chart, for uptrend:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...
go and check 30 min chart:
if price bar is a up-close bar and sitting on 14 EMA or 21 EMA
and same again:
if 14 EMA is above 21 EMA,
then if both 14 EMA and 21 EMA are above 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...
go Long...
OR go and check if 1 hour chart meet same conditions as for 30 min chart and then go Long.
If at least one condition is violated – stay away.
The reverse is for the downtrend:
Enter on 5 minutes chart.
On 5 minutes chart, for downtrend:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...
go and check 30 min chart:
if price bar is a down-close bar and touching 14 EMA or 21 EMA
and same again:
if 14 EMA is below 21 EMA,
then if both 14 EMA and 21 EMA are below 50 EMA,
then if 50 EMA is within the Bollinger Bands borders,
then...
go Short... or go and check same rules for 1 hour chart and only then enter Short on 5 minutes chart.
Exit rules: exit when any of the conditions is violated or when the profit is high enough to close the trade.

--- by; Edward revy -------

FREE FOREX SIGNAL

2009-01-12T08:08:00.000+07:00

Free Forex Signal, 12 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.00 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3548
Avg. Daily Range : 327 point
BUY at 1.3475 Exit Target 15 pips
SELL at 1.3372 Exit Target 20 pips

GBP/USD
Pivot : 1.5209
Avg.Daily range : 322 point
BUY at 1.5159 Exit Target 20 pips
SELL at 1.5038 Exit Target 20 pips
Note : GBP/USD Stop Loss 40 pips

USD/JPY
Pivot : 90.83
Avg.Daily range :154 point
BUY at 90.13 Exit Target 15 pips
SELL at 89.95Exit Target 20 pips

AUD/USD
Pivot : 0.7048
Avg.Daily range : 141 Point
BUY at 0.7002 Exit Target 15 pips
SELL at 0.6959 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

Forex Chart

2009-01-10T06:55:00.003+07:00

FOREX > Chart > Strategy

SMA - Schaff Trend Cycle - Trend Oscillator

FREE FOREX SIGNAL

2009-01-09T08:14:00.000+07:00

Free Forex Signal, 09 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.05 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3667
Avg. Daily Range : 288 point
BUY at 1.3734 Exit Target 15 pips
SELL at 1.3618 Exit Target 20 pips

GBP/USD
Pivot : 1.5190
Avg.Daily range : 361 point
BUY at 1.5283 Exit Target 20 pips
SELL at 1.5103 Exit Target 20 pips
Note : GBP/USD Stop Loss 40 pips

USD/JPY
Pivot : 91.71
Avg.Daily range : 164 point
BUY at 91.97 Exit Target 15 pips
SELL at 90.90 Exit Target 20 pips

AUD/USD
Pivot : 0.7052
Avg.Daily range : 169 Point
BUY at 0.7120 Exit Target 15 pips
SELL at 0.7036 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

FREE FOREX SIGNAL

2009-01-08T08:17:00.000+07:00

Free Forex Signal, 08 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.05 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3601
Avg. Daily Range : point
BUY at 1.3525 Exit Target 15 pips
SELL at 1.3618 Exit Target 20 pips

GBP/USD
Pivot : 1.5069
Avg.Daily range : 371 point
BUY at 1.5156 Exit Target 20 pips
SELL at 1.4954 Exit Target 20 pips
Note : GBP/USD Stop Loss 40 pips

USD/JPY
Pivot : 92.98
Avg.Daily range : 147 point
BUY at 93.16 Exit Target 15 pips
SELL at 92.31 Exit Target 20 pips

AUD/USD
Pivot : 0.7156
Avg.Daily range : 158 Point
BUY at 0.7108 Exit Target 15 pips
SELL at 0.7048 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

FREE FOREX SIGNAL

2009-01-07T10:10:00.001+07:00

Free Forex Signal, 07 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 02.50 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3497
Avg. Daily Range : 302 point
BUY at1.3552 Exit Target 15 pips
SELL at 1.3416 Exit Target 20 pips

GBP/USD
Pivot : 1.4804
Avg.Daily range : 351 point
BUY at 1.4999 Exit Target 20 pips
SELL at 1.4792 Exit Target 20 pips
Note : GBP/USD Stop Loss 40 pips

USD/JPY
Pivot : 93.57
Avg.Daily range : 143 point
BUY at 94.07 Exit Target 15 pips
SELL at 93.11 Exit Target 20 pips

AUD/USD
Pivot : 0.7172
Avg.Daily range : 165 Point
BUY at 0.7240 Exit Target 15 pips
SELL at 0.7186 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

FREE FOREX SIGNAL

2009-01-06T13:37:00.002+07:00

Free Forex Signal, 06 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 06.30 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3716
Avg. Daily Range : 325 point
BUY at 1.3618 Exit Target 15 pips
SELL at 1.3511 Exit Target 20 pips

GBP/USD
Pivot : 1.4623
Avg.Daily range : 298 point
BUY at 1.4705 Exit Target 20 pips
SELL at 1.4557 Exit Target 20 pips

USD/JPY
Pivot : 92.83
Avg.Daily range : 139 point
BUY at 93.34 Exit Target 15 pips
SELL at 92.74 Exit Target 20 pips

AUD/USD
Pivot : 0.7123
Avg.Daily range : 135 Point
BUY at 0.7177 Exit Target 15 pips
SELL at 0.7097 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

Forex Strategy

2009-01-05T17:38:00.005+07:00

Forex Chart > Double Stochastic

Forex Chart > EMA, RSI & Stochastic

FREE FOREX SIGNAL

2009-01-05T08:14:00.001+07:00

Free Forex Signal, 05 January 2009
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 01.05 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.3918
Avg. Daily Range : 245 point
BUY at 1.4007 Exit Target 15 pips
SELL at 1.3914 Exit Target 20 pips

GBP/USD
Pivot : 1.4533
Avg.Daily range : 301 point
BUY at 1.4586 Exit Target 25 pips
SELL at 1.4416 Exit Target 25 pips
Note ; Stop Loss 40 pips

USD/JPY
Pivot : 91.64
Avg.Daily range : 133 point
BUY at 92.43 Exit Target 15 pips
SELL at 91.68 Exit Target 20 pips

AUD/USD
Pivot : 0.7037
Avg.Daily range : 154 Point
BUY at 0.7163 Exit Target 15 pips
SELL at 0.7089 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

FREE FOREX SIGNAL

2008-12-30T09:12:00.000+07:00

Free Forex Signal, 30 December 2008
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 02.00 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.4065
Avg. Daily Range : 313 point
BUY at 1.4134 Exit Target 20 pips
SELL at 1.4020 Exit Target 20 pips

GBP/USD
Pivot : 1.4514
Avg.Daily range : 347 point
BUY at 1.4529 Exit Target 25 pips
SELL at 1.4436 Exit Target 25 pips
Note : GBP/USD Stop Loss 40 Pips

USD/JPY
Pivot : 90.38
Avg.Daily range : 125 point
BUY at 90.81 Exit Target 20 pips
SELL at 90.34 Exit Target 20 pips

AUD/USD
Pivot : 0.6882
Avg.Daily range : 136 Point
BUY at 0.6902 Exit Target 20 pips
SELL at 0.6861 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

Tag TAGS ; Free Forex Signal FOREX SIGNAL Forex Signal Indicator

FREE FOREX SIGNAL

2008-12-29T11:43:00.001+07:00

Free Forex Signal, 29 December 2008
Update every day at 01.30 am GMT ( 08.30 WIB )

Today update 04.30 am GMT

All Pair – Stop loss 35 Pips

EUR/USD
Pivot : 1.4040
Avg. Daily Range : 217 point
BUY at 1.4169 Exit Target 15 pips
SELL at 1.4095 Exit Target 20 pips

GBP/USD
Pivot : 1.4649
Avg.Daily range : 296 point
BUY at 1.4732 Exit Target 25 pips
SELL at 1.4672 Exit Target 25 pips
Note : GBP/ USD Stop Loss 40 PIPS

USD/JPY
Pivot : 90.69
Avg.Daily range : 118 point
BUY at 90.78 Exit Target 15 pips
SELL at 90.48 Exit Target 20 pips

AUD/USD
Pivot : 0.6828
Avg.Daily range : 127 Point
BUY at 0.6881 Exit Target 15 pips
SELL at 0.6830 Exit Target 20 pips

Free Forex Signal – Click here…; USD/CHF, USD/CAD, GOLD

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Forex Trading system ; Picking Tops and Bottoms

2008-12-26T07:50:00.004+07:00

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.

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Forex ; the current Trend Line Trading Strategy.

2008-12-20T20:45:00.005+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. 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(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.

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 ; Neat entry RSI and Full Stochastic

2008-12-14T20:58:00.002+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 -------