Forex

It gets far oerly complicated to keep tabs on each four. I to a fault recommend that principals choose one of the majors because the spread is the better(p) and they argon the most liquid. I personally follow alone USED/CHEF because it activates the most any twenty-four hours. Foundation 2 Follow and netherstand the unremarkable Force News and Analysis of the professional currentness analysts. Even though this system is based lone(prenominal) when on practiced analysis of charts, it is important to get a birds- mettle view of the up-to-dateness markets and the news that affects the charges.It Is as well Important that you know and understand what the key technical support predicted take to corrupt (where currency pair should regard up on the charts), resistance s a predicted level to sell (where the currency pair should expire deal on the charts). Fortunately, all the best Force news and analysis is offered free on the Internet. hither is what you should do first *While you be reading the daily news and technical analysis, write raze on a piece of paper what heed the analysts argon saying ab forth the major currency pair you ar following and the key support and resistance levels for the day. A. Go to foreknows. Mom and you pass on name rah news and analysis on the spot FAX markets. The site forget give you the big motion-picture show of how the economic calendar ND central banks affect the currency markets. A great resource. B. Then go to festered. Com and riddle on the Top Force Reports. Here there is a wonderful tilt of all the major daily currency analysis and forecasts with support and resistance and direction forecasts. C. Click on currency. Com and go to Todays Market Research and there you go out find to a greater extent excellent analysis on the Major currentness pairs. Another great Force Portal. D. Wry. Monterey. Com E. Free Force trading forum www. Respiratory. Net F. Comprehensive listing of everything, related to th e Force Markets www. Engorge. Com/resource/glossary. SP Foundation 3 Only get into a flip when the FPS technical indicators say when. Al shipway swap with sack losings It is important when you be trading Force, to be discipline and to stick to a excogitation. Dont Just peck your gut olfactioning. Use the technical indicators outlined and eer levy in stop losses on every trade. Foundation 4 Practice fall ins perfect. As they say, there is no substitute for hard work and diligence. Practice this system on a demo delineate and last the virtual money is your own real money.Do not open a live trading broadsheet until you are gain groundable trading on a demo account. Stick to the plan and you can be successful. Foundation 5 Trade with a DISCIPLINED Plan The problem with many traders is that they take shop more seriously than trading. The fair shopper would not spend $400 without serious research and examination of the return he is approximately to purchase, yet the av erage trader would make a trade that could easily greet him $400 based on little more than a feeling or hunch. Be sure that you have a plan in place BEFORE you start to trade.The plan must entangle stop and limit levels for the trade, as your analysis should encompass the evaluate downside as well as the expressed upside. Foundation 6 Cut your losses early and Let your Profits Run This simple plan is one of the most difficult to implement and is the cause of most traders demise. Most traders violate their pre designate plan and take their profits before reaching their profit target because they feel un homy sitting on a profitable position. These same people leave behind easily sit on losing positions, allowing the market to move against them for hundreds of points in hopes that the market will come back.In addition, traders who have had their stops hit a few eras only to lift up the market go back in heir favor once they are out, are quick to remove stops from their trad ing on the losing more then a predetermined amount The mistaken belief is that every trade should be profitable. If you can get 3 out of 6 trades to be profitable then you are doing well. How then do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal.Foundation 7 Do not marry your trades The reason trading with a plan is the 1 tip is because most objective analysis is done before the trade is executed. Once a trader is in a position he/she tends to analyze the market differently in the hopes that the market will move in a favorable direction rather than objectively faceting at the ever-changing factors that may have turned against your original analysis. This is especially true of losses. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses. Foundation 8 Do not face the farm Do not ove r trade.One of the most common mistakes that traders make is leveraging their account in comparable manner high by trading frequently hulkingr sizes than their account should prudently trade. Leverage is a ambiguous sword. Just because one fate ( one C,000 units) of currency only requires $1000 as a minimum perimeter deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 amaze up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves.As a consequence of this, they are practically forced to exit a position at the wrong time. A good rule of thumb is to neer use more than 10% of your account at any given time. Trading strategy TRENDS Trend is simply the overall direction equipment casualtys are moving UP, DOWN, OR FLAT. The direction of the switch off is absolutely essential to trad ing and analyzing the market. In the Foreign telephone exchange (FAX) Market, it is possible to profit from UP and Down movements, because of the buying and selling of one currency and against the other currency e. G. Buy US Dollar Sell Japanese Yen ex. Up Trend chart. SUPPORT damage supports are set areas where traders find that it is difficult for market prices to penetrate lower. buy interest in the dollar mark is strong enough to overcome. Selling interest in the dollar keeping prices at a bear on level. RESISTANCE Resistance is the opposite of support and represents a price level where Selling Interest overcomes Buying interest and advancing prices are turning back. 3 50% Retrenchment. There are also 33% and 66% Retrenchments. 4 5 Step 1 Prepare your charts The Force Profit System uses 2 technical indicators to show you when you should enter and exit a trade.These are called the parabolic SARA and the exponential function Moving just 10, 25 and 50. A. Setup a 60 routine USED/CHEF chart. This is my favorite currency pair to trade because it swings up and down the most. You can choose any major pair you the like though. B. Choose Parabolic SARA as an indicator. Click on display when it shows you the . 02 and . 2 acceleration factor and constant. C. Choose Moving Averages, exponential function 10, 25 and 50. D. Click on Exponential, then enter 10 in the Period box, then K E. You should have the Parabolic SARA and the three Mas 10, 25 and 50 in different colors on your charts.Step 2 When to Enter and Exit your Trades This is what your chart should look like. These are the FPS indicators that I use to trade. The EMMA 10 should be in pink, the EMMA 25 should be in yellow, and the EMMA 50 should be in blue. The Parabolic SARA is charted with dots in a higher place and infra the line. When to attain a trade The FPS indicators tell you when to get into a trade when the EMMA ten crosses the 25 and the 50. If the ten crosses the 25 and 50 up from the bot tom, you enter your trade spacious and buy.If the 10 cross the 25 and 50 down from the top you go short and sell. break sure that when you get into your trade that the Parabolic SARA is on the bottom when you go long and on the top when you go short. In the pattern above, on October 1 5th, there was a great opportunity to go long on the USED/CHEF pair, where I circled and labeled enter. Notice how the EMMA 10 crossed up the 25 and 50 and the Par SARA was on the bottom. *If you are trading the hourly charts like in the above example, make sure that the 15 min charts Parabolic SARA is going the same way.Simply check on the arrow beside the 60 min and change it to 15 min and your studies will automatically arrange to the new time frame. Never trade against the 15 min Parabolic SARA When to EXIT a trade 6 The best time to exit a trade is when the price crosses back down with all 3 Mas USED/CHEF on the 20th crossed back down all three indicators where I circled EXIT. If o held thi s position all week, you could have make a 275 wrap up profit. With 1 lot traded on a standard account this would have been approximately $1780. 00 in profit. With 2 lots$3560 A mini account would have profited you $178 and $356 respectively.If you profited 275 pips with ERR/USED or GAP/USED you would have made approximately $10 per pip, which you would have made $2750 with one lot and $5500 with 2 lots traded. Not tough for one week Where to Set the Stop Loss When you open a demo account you will find on the online trading platform that you will always be able to enter a stop order level that will automatically stop out your read at the level you even up, or a limit order that will final stage your position at your desired profit level. Using the FPS means that you should always set your level Just below the EMMA 50.As your position moves in the near direction, you should move your stop accordingly. Then if your position moves against you, you would have locked in your profits by moving up your stop order. It is important that if the prices cross back over the 10, 25 and 50 that you close your position. Here is an example of how the FPS works on the 15 min charts Using the FPS on the 15 min charts is more volatile, just it will give you more trades on n intra-day basis. On the example above you could have sell the USED/CHEF short at 1. 5060 and closed your position at 1. 000 for a 60 pip profit. One strain of caution trading the 15 min charts there are often times when the price will Whipsaw back and forth, up and down through with(predicate) the 10,25 and 50 moving averages. If this happens soon after you entered a trade, close your position and wait till the moving averages fan out and the Parabolic SARA signals strong. 7 Scalp Trading the min Charts System Scalp trading is when you use the 1 to 5 min charts to scalp small profits. These trades usually only last a few beautifuls to an hour. You can use the FPS to scalp trade Force on the 1 min cha rts.Here is how Instead of using the 10, 25, 50 Mas like we did in the above examples, put on the 25, 50 and 100 Mas. Often it is best to scalp trade at the London Open (3 momma EST) or the New York open (800 AM EST) because that is generally when the currency pairs will start to move more in one direction. When the actual price crosses all three indicators, you enter your trade, long or short. If the price crosses down through the 100 EMMA, enter short, if the price crosses up through the 100 EMMA go long. Make sure that you book a 5-10 pip profit.That is a $50-$100 dollar profit on a regular account, and more if you bought more lots. Dont try to hang on to you winning position too long, because the price can whipsaw back and you can lose. Take your 510 pip profit as soon as you can. Here is an example on the 1 min charts price crossed up through the 100 EMMA and at 1045 you could have closed your position (little circle) and made a 10 pip profit. Then again the price crossed back down the 100 EMMA at 1 1 EST. You could have sold the Yen short (big circle) and then ten minutes later made another(prenominal) 10 pip profit. Little circle) The Setup Open up your trading platform and open a chart. Set the instrument to the currency pair of your choice. Set the chart pattern to filled candle. Set the timeshare to 30 minutes Set up a moving average line in your indicators menu. -set period to 11 days Now that you have your chart setup properly, go ahead and set up your ordinary indicators that you use for reassurance and entrance/exit, etc. I use an MAC, a volume indicator, and Bollixing bands, but everyone has their own system on what works and why, and everyone has a reason why your indicators dont work when they seem to work Just handsome for youNow before I explain what you are doing with this setup I loud like you to set up the chart as I have indicated, and take a good solid look at the history of the data. Do you see any telltale signs yet, or have a twi ne as to what the point of the setup is yet? If you do not, do not worry or feel inferior, as this has slipped past some of the best. I happen to be great with numbers and have a strong background in analysis, so I was able to pick up on this trend mostly by dumb constituent but good fortune and a keen eye for detail. Now that you have stared at your screen looking for it, Ill explain myself.What you are looking for is the moving average line, or herein referred to as the MA, that you et up on your chart to cross through the price line. You are probably saying to yourself, This happens like every hour or so, what gives? . Well, it does happen fairly often, maybe not that drastically, but it does. The key point is where the MA crosses the price line. You dont need to worry or care about it crosswalk the thin peaks of the high/low lines on the candle, but you want to concentrate on it crossing through the middle of the wide, filled part of the candle, the openness prices.And further yet, it must cross in approximately the middle of this center section. If it crosses at the top or OTTOMH of the candle centre area, than you can pretty much disregard the trade. It may be profitable, but not worth the risk. Stick with the center of the central neck of the woods and you will be much safer. Now, when the MA indeed crosses the price line through the centre of the central wide part of the candle, a trade signal is triggered. You should try and wait at least on the radar and its not about to recant its previous move.The chart is set to the 30 minute timeshare, so generally wait 30 minutes or so, unless the market suddenly takes a quick recess in that direction. Then you can open the position to catch the wing. Now to determine direction. If the MA moves from above the price line to below it, the trade is going to be long. And likewise, if the MA moves through the candle from below the price line, the trade will be short. This can be verified by checking your indicat ors that you have set up to corroborate with your MA.To better clarify this direction idea, if after the cross the price is below the MA, the price is most likely dropping or SHORT. If the after the cross the price is above the MA, the price is considered to be rising and the trade is LONG. Another important factor to consider. While an MAC is a great too to determine market direction and activity, in this case it helps to build on the strength of the trend that we are pointing out here. If the MA crosses the price line from above to below, so that the trade we have forecasted is long, we can equalise this with the MAC.If the MAC average lines are above the zero line, then you can expect a large climb. If the trade was reported as short, and the average lines on the MAC screen were below the zero line, you could expect to a see a rather large drop. When I say large drop or gain, I am speaking of 75, 100, 150 point gains. This is not to say that if, n a long trade for instance, the average lines on the MAC are BELOW the zero that you will NOT see a gain. It generally will provide a gain, but of 20, 30, or maybe even 50 points. Where you exit the trade is up to you and how much you can tolerate and are willing to risk.If you feel comfortable taking 30 points and are okay with yourself if it does end up going to 150 points above your buy price, then good for you. If you are a thrill-seeker and go for the 150, I wish you all the best of luck You may or may not need it. Thats it Its Just that simple If you move back through the history of the chart and kook at when and where the MA crosses the price line, you can see for yourself that it seems to catch every big movement, and almost all of the littler ones. This set can be used on the minute chart for mid-term trades and further yet on the daily chart for longer term setups.Make sure that you are using your regular technical indicators to monitor market activity and ensure the trade is on target. If you are lookin g to enter a short and your MAC says long, or the 30 minute chart is oversold, you are asking for trouble. You need checks and balances with any system to eliminate as much of the margin of error as possible. The Force Profit System is specifically designed for use with the 1, 5 or 10 minute charts, with the goal of taking 5-20 pip profits per trade?closing bad trades out using wicked stops, or hedging any losing trades.The following steps will show you how to do this. Set up your charts USED (or whatever currency pair you like) , 5 min, line and the chart will appear on the right hand side. Maximize the chart to fill the right hand side. Now if you want to make the price line darker, you can right chew the fat right on the price line and a properties box will appear. You can adjust the thickness of the line. Now we will add the Moving Averages to the chart. We will be using the Exponential Moving Average 10, the Bollixing Band Exponential Set at 20, and the Exponential Moving Ave rage 50.Click on Moving Average on the left hand side under Studies. Set your first MA to 10, close, exponential and you can make it red with line width 2 under the Color/Style Tab. Click on Moving Average again and add your MA 50, close, exponential and make this line blue with line width 2. Now we will add 3 more indicators below the chart to help us confirm the trend, and to help us identify bring incoming and exit buy or sell signals. The following indicators give us insight into the momentum, direction and overbought/sold indicators.Used along with the Exponential Moving Averages, Parabolic SARA and Bollixing Bands?these indicators can be very helpful to the day trader. MAC Histogram. guide about how to trade the MAC Histogram here http// www. Incredibleness. Com/technical/Mac_histogram. HTML Relative susceptibility Index (RSI) Read about how to trade the RSI here http//www. Incredibleness. Com/technical/ relative_strength_index. HTML Slow Stochastic Read about how to trad e the Slow Stochastic here http//www. Incredibleness. Com/ technical/slow_stochastic. Tm Now add these studies to your charts.Under Studies click on MAC Histogram and use the default settings (9,Exponential, 12, 26, Close, Exponential) and set the line width to 2. Your study will automatically open under your chart. Under Studies click on Relative Strength Index and set it to 14 and set the line width to 2. Your study will automatically open under your chart. Under Studies click on Slow Stochastic and set it to (533, Exponential) and make the %K line blue with line width 2, and the %D line red with line width 2. Your chart, with all the studies on it should now look like this (example of USED/CAD 10 in chart) I clicked on the zoom in button a couple of times. *tip If you are in a winning trade, you can move your stop to your entry level, so that if your trade moves against you, the platform closes your position without any losses. **tip You should be comfortable setting your stop Or der at 15-20 pips. If you cant handle a 15-20 pip loss, then you are need to trade smaller amounts. This will help you from over leveraging your trading account. Limit Order Is a price you enter into an open position for the trading platform to automatically close your position at a profit. For example, you magnate set your limit order at a 15 pip profit.If the exchange rate never hits that level, then the Order doesnt get filled. We will be looking at 3 different ways to day trade the Force Markets. In a trading session, you may look for 1 or more of these approaches. The 3 techniques are as follows Trade the Breakout Trade the Trend Trading exceed and Bottoms Micro Trading Before we look at these trading approaches, lets answer a question that is often asked by new traders. When is the best time to trade? Because the Force Market is open rash a day, and traded on a global scale, the question to ask is, When should I trade?.The good news is that no matter what time zone or hemisph ere you live in globally, there are always good opportunities to trade. The three major trading sessions are as follows (all in Eastern Standard Time) 1 . New York open 800 AM to 400 PM 2. Japanese/Australian open 700 PM to 300 AM 3. London open 300 AM to 800 AM **Often, the best times to trade is at the beginning 3-5 hours of the above mentioned opening times, because the major currency pairs tend to move the most in a particular direction. The first Transformed. Com trading technique we will look at is he easiest to recognize on the charts.We will call it Trade the Breakout. You can use the 5, 10 or 15 minute charts for this method. The indicators on the 5 minute charts are the fastest. Practice until you feel comfortable with the time frame that suits you best. 1. Trade the Breakout The principle behind trading the breakout is to enter a trade when the price breaks out of a tight range, because often it tends to keep moving in the same direction. We use our Bollixing Bands on our charts to spot this trading opportunity. The second Transformed. Com trading technique uses the same principles, but is less extreme.