Forex Chart Tricks and Explanation
January 18, 2009 by admin
Filed under Fx Forex Trading Charts
Reading Of A Forex Chart
There are three most commonly used types of Forex charts: line chart, bar chart and candlestick chart. Candlestick chart is the most popular and widely used chart type. A candlestick chart shows things that are not visible on other charts. It gives comprehensive information about price on the Forex market and thus helps better understand and predict future price moves.
Each bar of the chart is a candlestick known also as Japanese candlestick. Because of its appearance candlestick delivers more information than any other line or bar method.
Candlestick carries High, Low, Open and Close for the price at specific time and possesses a Body. A color and the size of the body supply traders with additional price details.
The major part of the candlestick, the body, represents a range between Open and Close prices.
When Open for the price is above Close, a candlestick body is filled (gold).
When Open for the price is below Close, a candlestick body is hollow.
One of the common set up which we are going to use for our charts is gold and white. So "gold" will stay for the filled candlestick giving a signal that the price has dropped and "white" will stay for hollow giving a signal that the price has gone up.
The "gold" and "white" candlesticks also describe two opposing forces on the market: buyers and sellers (also called bulls and bears). Bulls (buyers) are traders who push the price up and bears (sellers) pull price down. So the gold and white candlesticks show who is in control on the market at the time.
The size of the candlestick tells how strong buying or selling pressure is. A long big candlestick symbols of a strong market pressure (buying or selling), whereas a small size candlestick means that buyers and sellers are in consolidation and the pressure is weak.
Shadows (tails or wicks) of the candlestick show the activity of buyers and sellers. The upper shadow shows activity of buyers towards pushing the price up. The lower shadow represents seller’s activity pulling the price down. Long shadows occur during high activity coming from both sides – sellers and buyers – as they try to turn the price into their direction.
A small upper shadow plus a big lower shadow tells a Forex trader that in the beginning sellers were dominant and forced the price down, but fell under the pressure of buyers at the end of the trading session.
A big upper shadow plus a small lower one indicates that at 1st buyers took over the trade and pushed the price up, but eventually forced to give up facing strong pressure of sellers.
A candlestick with no shadows indicated that buyers (in case of a white candle) or sellers (gold candle) were dominant during the whole trading session.
A candlestick that posses a small or no body and at the same time has small shadows indicates indecisiveness between buyers and sellers and a very little trading – a weak, slow trading market.
Doji candle has no or an extremely short body and long shadow(s). It is formed when buyers were unable to overcome sellers’ pressure and push the price any further from an open point, and at the same time, sellers met strong buyers’ pressure and also didn’t succeed in their efforts to push the price down from the open point. The result is a draw: open price = close price.
The very first look at a newly opened chart usually gives traders a little or no clue what the market is currently doing. So the Forex trader must reorganize a wavy indefinite graph into a very clear picture to be able to trade.
Analysis usually starts with defining the trend. The gold rule of trading says "Always trade with the trend" … or at least try to.
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Best Forex Trading Signals Is Neccessary for Profit
January 15, 2009 by admin
Filed under Fx Forex Trading Signals
Forex Signals Reviewed
Enlarge Image I started in the FOREX market in June of 2002. With hardly any experience at all, I really did not know what I was getting into, other than I wanted to be a full-time trader making tons of money from home. Little did I know from the start that my lifestyle as I knew it was about to change drastically.
The Problem
I initially began with a demo account and did okay for a month. Throughout the course of a month I managed to compile 23 wins and 2 loses, for a net profit of $1,219. I thought to myself, this is excellent; I am ready to begin with a live account and to trade for myself. Moving from a demo account to a real my psychology was blind sided. I was afraid to trade using the same techniques and trading system I had used to become successful with my demo account. The ending wasn’t pretty. I ended up losing a lot of sleep, $4458 and the only thing I gained was un-wanted stress. Out of cash and with other investments failing, I needed to find something quick that was going to get me where I wanted to be financially.
The Solution
I did not need the stress of trading anymore, so I decided to look for a decent FOREX signals provider. I wanted a system that was going to make me money every month and better yet a system that would trade for me.
I tried program after program only to lose more money. It seemed as though either the signal providers sent too many signals or the FOREX signals were horrible to begin with. Still trying to work my day job as a CPA, I was not always able to catch every signal either. I was in desperate need of an automated FOREX trading system.
I happened to be browsing the internet one day looking for things such as FOREX signals, automated trading signals and FOREX profits. I did manage to stumble across an extremely reliable trading system that has averaged 600 pips per month over the past 3 years. I couldn’t believe my eyes, and they had the data to back up there trading track record. It’s 2006 and I have been using this piece of software for exactly 1 year now and I could not be happier. The software offered excellent signals that I was able to take in the evenings and if I wasn’t at my computer I had a text message sent to my cell phone so that I could call into the trading desk and place the trade. As of January 2006, my total net profit from trading has amounted to $82,000.
| By Tim Rohrer Published: 1/7/2006 |
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Forex Forums and Traders Forums Introduction
January 10, 2009 by admin
Filed under Fx Forex Trading Courses
In the stock market the most common way of placing an order is to buy a share of stock, and sell it later at a higher price. This is essentially what all businesses do. They buy something at one price and attempt to sell it at a higher price. Forex trading is no different. With forex trading, currencies are always traded in pairs. Since you have to pay one currency for another, the transactions always involve a "pair" of currencies. The goal of forex trading is to buy the "currency pair" at one price, and sell it later for a higher price.
There is also another way to make money on the stock market, This other way is called short selling. Short selling is simply when you sell the stock first at one price, and then try to buy the stock back at a lower price. The goal does not change – you still want to buy low and sell high. With short selling, you just sell the stock first. Short selling has a much larger risk than traditional stock trading. There are many rules that limit short selling to serious market professionals.
Forex trading does not impose any limit on short selling. The risk on short selling in forex is no different than the risk of buying in forex. I know you may be asking, "Why isn’t there any risk or limitations on short selling on the forex?" Simply answered, the rules are different in forex trading.
If you would like to find out more about the world of forex trading strategies and how it provides the greatest opportunity for fast and substantial profits then click on the link below. They are the absolute best and most effective forex trading strategies available anywhere. Good luck trading.
List of Forex Forums to make things easier for you:
- BabyPips.com – Forex trading discussions that cater more to the beginner traders.
- DailyFX Forum – A forum for currency exchange traders, moderated by DailyFX analysts and strategists.
- Forex Boards – Features forums for forex traders and investors. Covers various forex-related issues, include training, platforms and tools, forecasts, and humor.
- Forex TSD – Focusing on forex trading system development. Including analysis and signal generation tools.
- ForexForum.net – Forex Forum on forex related subjects, software, trading platforms, forecast techniques, daily market views, trading partners and managed funds.
- Forex2u.com – Independent forex trading discussion.
- FX Pit – A community of FX traders.
- FX245.com – Social network for forex autotraders.
- FxFisherman’s Forex Resources – Covers tutorials, trading and analysis. Provides a collection of indicators, trading systems, and tools.
- Global View – Offers tools for Forex and currency trading, a forex forum, real-time rates, news, and brokers. Registration required.
- GoForex Forum – A Question and Answer forex forum for those who seek advice from professional forex traders.
- MoneyTec Forums – FX community resource portal. Event calendar and discussions forums.
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