Best Forex Trading Indicators – 4 of the Best For Bigger FX Profits

www.forexautopilotrobot.com – Best Forex Trading Indicators – 4 of the Best For Bigger FX Profits There are lots of Forex indicators to choose from but here I will look at five that all traders should know about and if they are used correctly, they can enhance your profit potential lets take…

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Forex Charts – Make Bigger Profits by Following These Key Points

Forex charts are a great, time efficient and proven way to make bigger profits but most traders don’t use them correctly and here we will give you some key points to help you make bigger profits…

Let’s look at some key points for more profitable technical analysis with forex charts.

If you look at any forex chart you will see big trends that can last for many months and trend following these can be very profitable and if you want to make money out of them you must understand this key fact:

Most big trends start and continue from breakouts to new highs and lows on the chart and you must go with these breaks – most traders don’t. They want to wait for the pullback and of course it never comes and they are left behind. While it appears like you have missed the first part of the move, the odds of continuation are high so go with them.

Always be patient when using forex charts. You don’t get rewarded for your efforts or how many times you trade but being right with your trading signal. I know traders who trade just a few times a month yet make triple digit gains – so wait for the right opportunities.

When you have a trend you want to hit always check price momentum is on your side and make sure that you use momentum indicators that show price acceleration in the direction you wish to trade. Two great ones, you can learn, in about 30 minutes are – the stochastic and RSI. These two combined will increase your odds of success by getting the odds more on your side.

Never believe anyone who tells you there is a mathematical formula for market movement – there isn’t. If of course there was, we would all know the price in advance and there would be no market. So forget trying to predict and only trade the reality of price.

Its probabilities that you need to understand and like a successful poker player, you won’t win every hand – but if you keep trading the odds, you will win long term. When using forex charts, the simpler your forex trading method the better, as simple systems tend to be very robust and have fewer elements to break, than complicated ones.

I have used a simple breakout method which uses trend lines, RSI and the stochastic and made money with it for over 20 years sure, it’s simple but it works. Forex charts give you the reality of price before your eyes and you can spot areas of over valuation and under valuation. Humans create trends and they also (due to their emotions) push trends to far up or down in either direction.

You can of course ride trends – but you will also see big price spikes and history tells you they don’t last long and taking trades contrary to the majority can be very profitable. Charting is an art not a science and you need to practice your art. The successful captain of a ship uses charts to navigate safely, but he also knows that use them wrongly and he will drown and it’s a very similar situation in forex.

The Good News

You can learn forex charting in around 2 weeks and soon be piling up big profits in around 30 minutes a day spotting and hitting high odds trades and enjoying great profits. The good news is forex trading and using technical analysis is a learned skill and one you can master with a little practice.

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Forex Tips – 8 Essential Forex Trading Tips For Bigger Forex Profits

If you are new to Forex trading then the Forex tips enclosed will help you win and enjoy currency trading success – let’s take a look at them.

These 8 essential Forex trading tips are in no particular order of importance there all important!

1. Don’t Trust Forex robots or Expert Advisors

These are a guaranteed way to lose your money quickly. Naïve and greedy traders buying thinking they are going to get a life long income for a hundred dollars or so – it looks to good to be true and it is. Avoid these cheap get rich quick systems and do it on your own.

2. Learn Technical Analysis

You can learn to trade in Forex quickly, so make sure you get the right education. By far the most time efficient way to trade is to use Forex charts and simply follow the reality of price change as it occurs on the chart, this may sound simple but prices trend and if you can learn to trade these trends, you can simply lock into them and hold them for big profits.

It should 0nly take a couple of weeks to put a robust Forex trading strategy together and then you can start making big profits in 30 minutes or less per day.

3. Keep Your System Simple

Your system should only consist of chart support and resistance and a few confirming indictors. Never make your system complicated or it will break, in an odds based market like Forex, simple systems are more robust so always keep your strategy simple.

4. Don’t Over Leverage Your Account

You can get leverage of up to 400:1 with most brokers but don’t use it all! Novice traders should use 10:1 maximum leverage and even after they become experienced, they never use all the leverage granted to them. Over leveraging destroys more accounts than any other single reason.

5. Use Stops and Accept Short term Losses

If you want to win, you need to learn to lose short term and keep losses small. Never let losses run and always use stops. Forget your ego and don’t angry when you lose, all traders need to take losses, while they wait for gains. The best traders always keep their losses small and you must to.

6. Run Your Profits

Many traders snatch their profits to quickly and never run them but unless you run your profits, you will never cover your inevitable losses – so if you have a winning trade have the courage to milk it for all its worth.

7. Always Understand Discipline is the Key to Success

If you have a trading system you need to apply it with discipline and not deviate from it. In a losing period many traders simply get frustrated and over ride their rules and if you do this you simply have no system and will lose.

8. Have Confidence in Your Trading Edge

When trading Forex, you reply on your skills and judgement and success comes from within. You must have confidence in what you are doing and know why you will win. This will allow you to trade with discipline; cut your losses and have the courage to hold your winning trades to achieve long term currency trading success.

Anyone Can Win at Forex if they Want too!

Anyone can learn to win at Forex and although you need a good method, you also need the right mindset to trade with discipline.

Success comes from a good Forex education, so get one and you will be well rewarded with huge long term gains trading the worlds most exciting investment – global Forex.

 

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Best Forex Trading Indicators – 4 Simple Effective Ones for Bigger Profits

Here we will look at some of the best Forex Trading indicators and how you can combine them into a simple robust Forex trading strategy for long term gains…

No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better – Wrong!

If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.

Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system.

First Identify the Trend.

This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward.

Spotting the Set Ups

We don’t have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.

Bollinger Bands – Check Volatility and Standard Deviation

Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don’t, make part of your forex education and learn about Bollinger Bands.

Bollinger Bands are not used to for market timing – but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:

They can alert you to potential big moves, help set targets and spot market value and entry levels.

Best Forex Trading Indicators for Confirming

When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.

The Relative Strength Index (RSI)

A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends – or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.

The Stochastic Indicator

The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side. It’s also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.

Simple and Effective

There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.

The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.

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