Options Trading Unearthing the Commandments and Indicators - forex quotes from trading charts

Options Trading Unearthing the Commandments and Indicators ~ forex quotes from trading charts

The popularity of the options trading market is always on top. No one can simply be active in this kind of enterprise if he is unprepared to tackle the most important things that encompass it. There are jargons, techniques, and commandments which have to be taken into consideration and be learned by heart. Most of the times, the person who makes himself ignorant is oftentimes the one who digs up his own pitfall. For you not to suffer a terrible fate, all that you have to ensure is that of abiding by what is certainly a bunch of concepts which must be inculcated into your mind.

A Brief Background

The buying and selling of options is generally considered to be one of the most attractive and then economical ways of making yourself a part of the stock market. Investments can turn out to really big profits. The shares need to be disposed of within a particular time frame or else there will be no profit at all. The seller then has the preference to wait some more until the market proves to be well enough to accommodate a good trade. What matters most is for the trader to keep track of the date of termination of those options.

A List of the Commandments and Reminders

Are you up and about to hit the options trading market? As part of the basics, you have to learn some of the very fundamental factors that will lead you towards the path to success. For starters, here are the very relevant commandments as well as reminders which you must keep in mind.

First thing on the list is that you must not let any option reach its expiration without getting credits for it. You must understand that your options have set deadlines. Prior to the stipulated expiration, you should let it go and make sure that you earn what is due you.

Second, never ever forget the expiration days of your options. As mentioned above, you need to let it profit before its expiration. Meaning to say, every second counts and you are racing against time.

Third, place enough importance on the ask price or option bid. Although you should be flexible, it still matters that you become keen to the real ask prices and bid.

Fourth, always have a set of plans. Be ready to switch your plan A with that of plan B whenever necessary. 

Fifth, never buy any option that cant sell. You know your main objective as you trade. That is, to make profits.

Sixth, dont imprison yourself in a type of market that will make it really hard for you to get your way out. There is no one but you who is going to be held responsible for your actions.

Seventh, never pass the time. Always work with the right pacing for the market to execute its own move. Meaning, you should know when to strike and when to avail of the highest value that the market is offering.

Eighth, refrain from buying options from the markets that exude higher risks especially in terms of price precariousness. 

Given these commandments and reminders about options trading, you have to program yourself towards following them. Take note that your own success highly depends on how wise your decisions will be. These are merely your guidelines. You still need to concert your effort to make things work.

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GOLF AND FOREX - forex trading books online

GOLF AND FOREX ~ forex trading books online

Forex for most traders is like a very expensive golf addiction. Everyday they play their little hearts out, but never make it out of the sand trap. The more they play the deeper in debt they get.....

WHY????????

Why is it that You have a handful of traders that truly become forex masters while the rest remain amateurs???????

Its simple really........Losing traders hold on to losses, while talking themselves out of following profitable trades. It is a vicious cycle, holding losses because of fear, blowing up another account, adding money to your account with your credit card, saying this time will be different while struggling to pay bills and climbing deeper in debt. Sound familiar????????????

This is not the way this game is suppose to be played, yet for MOST traders this is the harsh frustrating reality. The brokers who trade against You count on You holding losses so that they can send their children to Ivy League colleges, drive fancy cars and send their wives to those swank salons. The more traders hold losses the better lifestyles brokers enjoy.

Forex is suppose to pay You, not be a continual vacuum hose draining Your families wealth. THE #1 CAUSE OF FAILURE IN FOREX IS LACK OF DISCIPLINE!!!

Any forex master will tell You that forex is not hard, it is the discipline to consistently trade a winning strategy even through a series of losses that is hard. Forex is psychological warfare, it creates a kind of prisoner of war mentality for the losing trader, whipsawing him around back and forth, stopping him out until he is so confused that he doesnt know which way to go. When the real trading opportunity presents itself, he is too scared to enter and if he does enter he exits too soon because he is always on pins and needles waiting for them to trick him, so instead of riding the trade for the full profit, he jumps off while he has a little safe profit.

The #1 predictor of forex failure is the inability to cut a bad trade. IF YOU CAN NOT CUT A BAD TRADE, IT IS IMPOSSIBLE TO WIN HERE. There are a ton of systems teaching You tricks and strategies; but few tell You a critical truth that if YOU CAN NOT CUT A BAD TRADE, then eventually You WILL SURELY LOSE no matter how big Your starting balance may be.

A healthy prosperous trader is different in that he sees a good set-up and enters, if he sees that the advantage is lost, then he recognizes it for the trap that it is and quickly gets out, preserving as much capital as possible for the better trade. A trading star realizes that he can always earn back whatever was lost and even more.

If You take a hit, dont consume Yourself with the amount loss, CONGRATULATE YOURSELF for being smart enough to save your wealth to take advantage of the trading opportunity that will allow You to increase wealth.

It is an old but very true saying, especially in forex, A STITCH IN TIME SAVES NINE! In other words cutting that bad trade will save you from digging a deeper hole in the sand trap of debt and allow You to begin to build instead of deplete Your familys wealth.

All successful traders trade with superior discipline. LACK OF DISCIPLINE IS THE KILLER IN THIS GAME.

The best thing about forex is that You dont even have to be that smart to do it. Any man of normal intelligence with the patience to wait for a good trade set-up, the strength to cut a bad trade and the patience to ride profit to fruition can do well here.

EXPECT TO SUCCEED IN FOREX. IF ANYONE ELSE CAN EXPERIENCE SUCCESS HERE, YOU CAN TOO!

YOU CAN ABSOLUTELY DO THIS (^_^)

HAPPY PROSPEROUS TRADING 2012!

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BASKETBALL AND FOREX - price action forex trading books

BASKETBALL AND FOREX ~ price action forex trading books

We can learn a lot about how we should strategize in forex from basketball. In basketball if a player misses a shot, the team doesnt sit down, close their eyes and ears, while the other team is still playing; hoping that the game is going to come back in their favor. If a coach told you that was his strategy, youd say that was ludicrous. Yet in forex a trader will put in a bad trade, turn off the computer, leaving the mistake to grow bigger, hoping that things will come back in his/her favor.

Good trading doesnt work like that, you have to practice good defense, you have to protect yourself!!

Everyday in forex you have an opponent and you must use your defense if you are going to be consistently profitable.

In basketball if your point guard has an injury that is keeping him from scoring, you cut that player and use the back-up point guard. In forex You must do the same thing. When your primary plan fails, you MUST cut that position and use a back-up plan..

Many times as traders we take a hit and quit. If you have a good strategy, you can keep playing until you are ahead of the game.

Two things you must remember to get into the big leagues. #1 CUT BAD TRADES QUICKLY #2 DONT OVER-TRADE YOUR ACCOUNT. When I say dont over-trade, I mean if you have $1000.00 account dont trade a half of a lot.

If you have a $100.00 account and you trade 1 micro lot (.10) you can grow that by $5.00/day. Everyday that You reach your goal you can add 2 more pennies, which will give you an extra dollar everyday on 50pips. At that end of the 1st week, you will have $35.00, $75.00 the 2nd, and if you stop at that (.30), you can make an additional $150.00 for the month, for a total of $260.00 the 1st month; which is more than double what you started out with. The 2nd month youd have $300.00, that is an additional $3560.00 for the year if you add .02/day to .10 and stopped at .30 and stayed there the rest of the trading year.

Remember forex is a get rich slow game, so dont over-trade your account.

Use discipline with a good strategy. Most importantly CUT BAD TRADES QUICKLY, because the best strategy in the world is no match for a free running loss!

NEVER LET THEM TRAP YOU!!!!!!!!!!!!!!!!!!

CUT BAD TRADES QUICKLY!!!!!!!!!!!!!!!!!



If you take a hit, dont sit down and quit hoping the other team is going to have mercy and let you win. They are your opponent, they are not your babysitters, they are out to beat you. You have to stay in the game, practice good defense, and protect yourself if you are going to come out ahead!!!!!

You can do this(^_^)!!!

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THINK PERCENTAGES AND MONEY MANAGEMENT - best forex trading books amazon

THINK PERCENTAGES AND MONEY MANAGEMENT ~ best forex trading books amazon

This was the Email Response I got from the $236 video challenge and I loved it so much that I had to share it!

People dont realize that its not how much you have in your account that determines success. Whether you win or lose, its all based on percentages. Its still the same percentage of the account gained or lost on an account with $100 as it is with $10,000 or even $1,000,000. 5% gained is $5 on the $100, $500 on the $10,000 and $50,000 on the $1,000,000. The actual returns, money wise is different.. but the percentage gained is the same. People who say success isnt possible with a small account, dont know their percentages well.

You can successfully grow a very small account with proper knowledge and discipline. In fact, its smarter to start with a small live account until you can trade with discipline and confidence; that way you dont lose as much initially. A small live account is training grounds to build a larger account.

Whats the point in adding funds to your account if you cant build the little you have in your account already?? If youre losing and not gaining consistently.. putting more funds into your account is just going to ensure that you lose more! It is the consistency of applying a good strategy, not the account balance that gives a trader the advantage.Hopefully traders understand the value of thinking percentages, instead of account balances.

If you think in percentages, you also understand the value of money management so much better.

For example, if a trader loses 50% of their account, it requires a 100% gain (double!) to get to break even. Whereas, a 25% loss requires only a 30% gain (a mere 5% over the loss) to break even.

A good trading system combined with strict disciple, and good money management will lead to success for any trader, no matter what their account size!
HAPPY TRADING!!!

Thanks Steve!!!
LOVED IT!!!!!!!!!!!!!!!!(^_^)!

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Using Divergences to Identify Market Reversals - forex trading charts pdf

Using Divergences to Identify Market Reversals ~ forex trading charts pdf

Using divergences correctly can help spot key market turns

Many traders and analyst use price-momentum divergence to identify trend reversals. For those of you who are not familiar with this term divergences may be defined as follows:

* Bullish divergence: When price lows are lower in a trend but momentum lows are higher

* Bearish divergence: When price highs are higher in a trend but momentum highs are lower

Basically what this is effectively saying is that momentum, that is the pace of the trend, slows then the underlying momentum indicator will not confirm the new price extremes by making new momentum extremes.

For example, it is easy to see from this chart that there has been a strong uptrend.

Below the price chart is a form of the Relative Strength Index (RSI)

Note how the RSI is showing a bearish divergence. As you can see price highs are still rising but the RSI peaks have begun to fall. This is a feature that often accompanies a stronger reversal in the trend.

Is this a confirmed reversal signal ?

Let’s see what happened next:

In fact the uptrend continued in spite of the divergence.

While this special version of RSI provides better divergence signals it is vital that price also confirms a reversal. This can be done using several methods.

Firstly, by considering the definition of an uptrend:

Price is making higher highs and higher lows.

To confirm price reversal then we should wait for it to decline below the last significant low. In the first chart price had declined very little and therefore the risk of price continuing its uptrend remains.

Secondly, by looking for break of a trend support:

In this case no break of the support line was seen until after the 2.1160 peak. This was also accompanied by a bearish divergence and therefore confirmed the reversal of the trend.

Note that after breach of the trend support how price later moves back to retest the line. This often provides excellent trade opportunities.

It is a common error that traders anticipate a trend reversal merely because there is sign of a divergence. However, this is not a 100% safe strategy. Unless there are other indications to confirm it is safer to wait for confirmation of the reversal.

Good luck

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Forex Pips and Spreads - trend trading forex books

Forex Pips and Spreads ~ trend trading forex books

Forex " Pips and Spreads "

As you start to learning concerning Forex mercantilism, you are absolute to come upon several new terms. 2 of the foremost usually used Forex words square measure "pip" and "spread." These have distinctive definitions in reference to currency mercantilism, and for beginners, we have a tendency to wished to assist you higher perceive what every of those terms mean.

What is a Pip?

In Forex mercantilism, a pip - that is brief for "price index point" - may be a numerical price that represents the number AN charge per unit has modified over a amount of your time. So a currency pair gains or losses pips over time.
In the majority of currencies, pips are priced to four decimal points, meaning one pip is .0001 and two pips is .0002. So if you closed a trade in USD/CAD at 1.3320, after a 20-pip gain, the new value would be 1.3340.
Japanese yen, though, is an exception, as JPY is not priced to four decimal points. JPY is priced to two points. So a JPY currency pair, like USD/JPY, might be 122.50. In this scenario, one pip is .01 and two pips is .02.
Finally, some brokers offer fractional pip values out to 3 or 5 decimal points, which are referred to as pipettes. Pipettes are equivalent to 1/10 of one pip.

Calculating Pip Value


When we talk about currency pairs, we might say that USD/CAD has gained 20 pips over a certain period. But what is the monetary value of those 20 pips? This requires some basic calculations, but the math is pretty straightforward. To determine the pip value, youll need the:

Currency pair 

Size of trade 

Closing exchange rate

So for example, if you closed a $100,000 GBP/USD trade at 1.5188 after a 20-pip gain, you would calculate the pip value by first determining the number of U.S. dollars each pip represents. In this case, the equation is 100,000x.0001 or each USD equals 10 pips. Then, you would calculate the price per pip in GBP using the closing exchange rate - or 10/1.5188 = 6.58 GBP per pip. Finally, calculate the value in GBP the currency pair has changed to determine profit or loss - in this example, it would be 20x6.58= 131.60 GBP.

What is Spread?

In Forex lingo, the "spread" refers the difference between the buy and sell prices for the currency which are set by brokers. These values are often referred as the "bid" and "ask" price, and in the simplest terms, these are the prices that brokers are offering to buy and sell currencies to a trader.

Brokers always offer lower bid prices than ask prices, because this is where the broker makes money. So for example, the bid/ask prices for EUR/USD might be 1.0757 and 1.0761; the currency pair is said to have a 4-pip spread. That means if you entered into a trade and immediately liquidated that trade at the same exchange rate, you would record a loss and lose money. In general, close spreads are better for traders, because its easier for a trade to become profitable. For example, if the spread of a pair was 55 pips, a 20-pip gain would lose the trader money; but if the same pair had a 4-pip spread, that trader would be up 16 pips after closing the trade.

Want to learn more about becoming a day trader? The Learn to Forex course from Learn To Trade is designed to help novice and intermediate traders build a base of knowledge in Forex, learn to develop Forex trading skills and strategy, and minimize their trading risks. Enroll today and get started.

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Forex trading strategies revealed that work for beginners - forex trading secrets book

Forex trading strategies revealed that work for beginners ~ forex trading secrets book

above is a forex chart,,, Now forex charts are a way to display and analyses data between 2 currencies and their fluctuations in value when trading.... We can easily see the past on the chart... when looking for a Forex trading strategy u never wanna lose

So the first Forex trading strategy involves buying both currencies on the chart equal to each other at the same time,,, Then to have a forex robot never sell until u win,,, then just sell the winning currency side and keep the rest and hold until a win to come next based on your analysis... the losing side is bound to  change in value and increase... this process breaks and divides ur trading strategy here... ur aiming to win both sides divided from when u bought and its too easy if ur patient.

Next is the divergence trading strategy based on the chart,,, to buy in a gull ow slope in currencies value and sell as it goes upward. Or to buy one currency thats up and sell when its up even more than before,, this summarizes the game in 2 different Forex trading techniques.

Preferably to buy currencies when there weak and optimize profits when there up in value is my game in the gull ow,, sometimes its profitable to optimize ur currency selling options with one currency relative to one another in more than just a two pair system.. However we will be updating this page on a technical analysis game never seen before like bitcoin almost like a fx xoin guranteed winning research project in currencies,, hope to see u back soon

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ALGORITHMIC TRADING GUEST BLOG - forex trading technical analysis book

ALGORITHMIC TRADING GUEST BLOG ~ forex trading technical analysis book

What is algorithmic trading?

Trading with an algorithm is where traders take their trading strategy and put it into code, allowing a computer to execute that code 24 hours a day while the market is open. By default, trading manually is restricted to waking hours (often aided by the use of Red Bull, in my case), and is limited to the number of charts and currencies the trader can watch.

Naturally, the amount a single person can watch, monitor and trade is quite finite. But by utilizing an algorithm traders can have computers do in microseconds what would take humans hours to manually, thereby opening up a new supply of trading opportunities (not all of them being good opportunities, mind you).

Meta4 trading platform allows traders to create their own automated forex trading programs in what is called an “Expert Advisor.” The use of the software is free for all traders - demo and live.

The rise of the algorithm

According to my research, in 2004 a whopping 98% of trading in the foreign exchange market (or forex for short) was manual trading; but by 2010 only 55% of trading volume came from a human. The forex market is a fast moving market that is open 24 hours a day, and I think this huge influx in algorithmic trading is traders trying to capitalize on these factors.

Some exchanges here in the States have tried to embrace algorithmic trading, but have met resistance. My research concluded that forex has been more friendly to algorithms simply because the market has no central exchange to regulate where a trade comes from.

The Pros and Cons

One of the benefits of algorithmic trading in any market is the increase of liquidity. Algorithmic trading typically places more trades than a human naturally would, which opens up more liquidity for everyone: human and machine alike. But with this comes a change in volatility. An increase in volume naturally leads to increased volatility. But some suggest algorithmic trading might actually lower market volatility as algorithms aim for optimal execution at minimum cost.

What’s on the horizon?

One very important lesson from my college years is this: the more we learn, the more we learn we don’t know. My research into algorithmic trading has answered some questions, but seems to have opened up even more. For instance, what is the future of algorithmic trading, and how will it impact my trading? I’m currently researching this topic, and plan on releasing another infographic soon with my findings. Stay tuned: more good stuff is on the way!

For more information on Algorithmic trading, Here is a programming link: http://www.ibfx.com/Education/Programming, or You may contact Adam at <adam.evans@interbankfx.com>
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The best Forex trading strategies for beginners forex day trading strategies that work - forex trading training books

The best Forex trading strategies for beginners forex day trading strategies that work ~ forex trading training books

The best forex trading strategy is usually the easiest one for beginners. Looking at the chart above is a candle pattern chart for currency trading and is highly preferred chart for trading. You will see downtrends and uptrend. The goal is to do the complete opposite of what losers in the market do. One thing I noticed is that the chart is categorized into two trading methods,, long term and short term. you can make money with both long term and short term. However when I see a currency on the chart the lowest value in a burrow down there buy when the currency is the lowest in value at the red burrow. If the currency goes up just a little bit u have made alot of money already. Logically when the currency is lowest in value u can make the most money when it goes up. So buy when the currency is lowest in value at a red burrow and then set to trade when it goes up in value. A stupid trader sells when currency goes down. never sell for a loss and hold the money as long as you can for profit. A smart trader buys when a currency is at its weakest value of lows then waits and holds the money for a sell to profit. Lesson learned is that if you wait long enough you ll never have to sell for a loss ever again
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Technical Indicators and EA on MQL5 Market in MT5 - online forex trading basics

Technical Indicators and EA on MQL5 Market in MT5 ~ online forex trading basics

I think, everyone engaged in FOREX trading knows MetaQuotes company and its FOREX trading terminal called MetaTrader. The fourth version of MetaTrader is the most popular nowadays but MetaTrader 5 is winning recognition at a rapid pace. In this review, we want to tell you about a very useful innovation implemented in MetaTrader 5 - MQL5 Market.

You can find a huge number of trading tools on the Internet, including various scripts, technical indicators and Expert Advisors.
Many of these products can be downloaded for free, while some of them are distributed on a paid basis. These are mostly different trading robots developed using MQL programming language. When buying such a product, traders often receive "a pig in a poke". They cannot test an Expert Advisor or indicator before buying it. When it turns out that a purchased trading robot is not so efficient, it is almost impossible to receive a refund.

MQL5 Market helps traders who prefer automated trading to avoid low-quality offers from trading robots developers. MQL5 Market is a special marketplace for buying and selling programs developed in MQL5. Now, any trader working with MetaTrader 5 can download, test and buy trading robots right in the terminal. Before paying for the purchased trading robot, you will be able to test it on historical data and demo account. All trading robots pass careful moderation on MQL5. If product parameters do not fit the description, such a product will not be available for download.

If you are a developer of trading robots, this service can offer you a high-quality marketplace for promoting your trading robots. You will not have any issues when receiving payments for your products, as MQL5 Market has its own payment system. MQL5 Market acts as an intermediary between developers and traders.

As we have already mentioned, MQL5 Market is available right in MetaTrader 5 terminal. To enter MQL5 Market, launch MetaTrader 5 terminal and move to Market tab of Toolbox window.

There you will find a wide variety of free and paid trading robots, indicators and utilities. Before purchasing a product, you should register on MQL5.com and enter the registration details of your account in the terminal.

Then, you need to deposit funds to your account. After that, you will be able to purchase any program easily. Before making a purchase, you can test the application and decide if it suits you or not. After buying the program, you will be able to download your copy and use it on three PCs.

Automated FOREX trading is actively gaining popularity among individual traders. MQL5 Market enables gathering together all FOREX trading applications and provides easy and transparent access to them. You no longer have to browse through a vast amount of web sites and risk your money buying Expert Advisors at unreliable web resources. MQL5 Market makes the purchase and use of Expert Advisors easy and affordable for each trader!

Use the store MQL5 Market now and here.

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Some hidden forecasts and training from Carlos Diaz - forex trader scams

Some hidden forecasts and training from Carlos Diaz ~ forex trader scams

Below I am going to post some forecasts made by Carlos to show you what a typical trading situation with Foresightfx can be like.

Watch this video first:


Watch this video Second:


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What is Forex Trading and how does it work - forex trading telugu books

What is Forex Trading and how does it work ~ forex trading telugu books

Forex Trading A.K.A foreign currency trading is currency trading like the stock market. For example as worldwide currencies go up and down in value they can be traded to make profit. Typically the currencies are traded in pairs toward each other like gbp to usd. I bught gbp when gbp was very low in value and then i sold the gbps when they went up in value and made alot of us dollars doing so. This was one of my first trades. Preferably you can get started in the currency trading game right away when you have a broker. A broker is an online account that lets you trade currencies in the Forex market 24/7. Most brokers let u have a demo account to practice trading. My favorite way to trade is using charts.


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Multiple Time Frames combine with RSI and support resistance - forex trading charts eur/usd

Multiple Time Frames combine with RSI and support resistance ~ forex trading charts eur/usd

A technique to improve your trading decisions

Have you ever seen RSI overbought and wonder whether it was the right time to sell? Let’s face it, an overbought reading in a momentum oscillator can merely mean that price is strong and may even turn into an uptrend.

Is it a valid overbought signal? Do you sell? Where do you sell? Where should you place your stop?

Quite often using two charts of different time frames can help. For instance, let us suggest you have seen an overbought reading in the daily chart but there is no bearish divergence. What you can do is look at a shorter time frame chart, a 4-hour or 2-hour chart to see what is happening there an whether a more accurate sell signal can be identified. Let us look at recent example in EURUSD:

Above is the daily chart of EURUSD as it approached 1.3258. Daily Rapid RSI was showing an overbought reading but there was no bearish divergence. From this chart alone we probably couldn’t work out whether there was a selling opportunity or not.

This second image is the 2-hour chart of EURUSD but here it can be seen that the peak at 1.3258 was accompanied by a bearish divergence in Rapid RSI. We are therefore on warning that a reversal can occur and that the daily overbought reading may well be correct.

Next we have to identify a selling level and in this case it is on the break of the price support line which has touched price four times before it finally breaks and this is where we can place our sell-stop. The money management stop should ideally be placed above the 1.3258 high but if this is too high and would cause a large loss then we can look at placing a stop above the rising trend line. However, do note that is a rising trend line and could mean that your stop needs to be raised to allow a possible retest of the line.

In this case the trade would have been very profitable with a decline down close to the daily pivot support which rests around 1.3050. A take profit order can be placed just above this to exit the position at a tidy profit.

Utilizing a lower time frame chart to identify when Bollinger support/resistance will hold

Following on from the first description of using multiple time frame charts to both strengthen your analysis and enable tighter entry and exit trades, let us take another look at using these in a different example.

Many traders like to use Bollinger Bands to try and identify entry signals. The problem I have always had with them is that they only provide approximate support and resistance which causes problems in knowing where you should enter and where the stops should be placed. Not only that but sometimes they just don’t seem to work at all as a support/resistance tool and the judgment of when they’ll work appears purely subjective.

Take a look at the daily chart of GBPUSD:

In the center of the chart we can see that price has declined to the Bollinger low and on first touch it does bounce only to fall below the lower band and does so on three consecutive days. On the day before the absolute low Rapid RSI moves into the oversold extreme. Does this mean we can buy? Maybe. Sometimes it works and sometimes it doesn’t.

So what should we do?

The following chart is the 2 hour chart showing the approach to the low at 1.9400.

On the left of the chart we can see that price falls below two identical lows and these can then be considered as pivot resistance. We then see the three pushes lower and on the daily chart we know that the Rapid RSI went into an oversold extreme.

Do we buy at that point because is looks like the Rapid RSI on the 2 hour chart is developing a bullish divergence? The answer is “no.” Divergences should only be traded on a break of a pattern. In this case we have an intermediate downtrend line and it is only after the final low that price breaks above the trend line and thus confirms the bullish divergence in Rapid RSI. You will also note that following the break above the trend resistance that price reverses briefly to retest the trend line which provides a second buying opportunity.

Following the break of the trend line which was the day after the daily oversold reading price rallies by 200 points. That’s a good profit… Not only that, by waiting and observing the 2-hour chart you can avoid trying to pick the bottom as suggested in the daily chart.

Remember, it is normally best not to try and pick tops and bottoms as these will often provide losing trades. Waiting patiently for the right signal by fine-tuning the entry on a shorter time frame chart can reduce losing trades and make the final trade a more profitable one.

Good luck !

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My Hearty Congratulations to my Childhood friend and Present Student kannan sri purchased a New Yamaha Fazer bike - forex trading for dummies 2015

My Hearty Congratulations to my Childhood friend and Present Student kannan sri purchased a New Yamaha Fazer bike ~ forex trading for dummies 2015

My Hearty Congratulations to my Childhood friend and Present Student kannan sri, who purchased a New Yamaha Fazer bike costs almost more than 1 lakhs & Along with me he also proved Forex is profitable!

i pray god for him to get new car as soon as possible!

Am expecting more & more achievements from all of my students to make me feel proud!

My best wishes guys!

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When is a pattern not a pattern - forex trading charts software

When is a pattern not a pattern ~ forex trading charts software

A guide to avoid loss making trades

When is a pattern not a pattern?

The easy answer to the question is “when it’s not a pattern”. And that really is the real crux of the issue… Let me explain.

Let’s take a look at one of the most simple patterns in technical analysis, the Double Top (Bottom).

This is the hourly chart of Dollar-Swissie in a run up from the 1.0883 low which found a high at 1.1324. Following this it pulled back lower and then attempted to move back to the high once again. However, it failed just 6 points from that high and then declined quite sharply.

In this process it formed what we call a “Double Top.” This is a classic reversal pattern that through measurements will provide a minimum target in the reversal. Basically, by taking the number of points from the peaks and the intervening corrective low it is then possible to project lower from that trough to generate the minimum target.

In this example the pattern has worked perfectly. What is more, the Rapid RSI below has formed what is a bearish divergence. This is recognized by higher price peaks from the intermediate peak towards the left center of the chart to the eventual 1.1324 high. However, over this period the RSI has not made new highs – but the RSI makes a lower high at the 1.1324 high which represents a slowing in the underlying momentum of the trend.

A combination of this bearish divergence and a subsequent break of a trend support line and failure on the retest of the trend line sets up a stronger reversal which meets the minimum target perfectly.

OK, this is simple, let’s look at another example:

Here we see exactly the same thing happening in the hourly Euro chart. Price has rallied strongly with Rapid RSI forming a high at 1.4751 and then on the pullback lower braches a trend support line. Following the initial decline price rallies back towards the 1.4751 high but fails on the retest of the trend line.

This looks positive. Measuring the points between the twin highs and the intervening trough, from the current price there appears to be 300 points profit.

So if I take a trade of €1mn I can make €30,000 profit and buy a new car…

Well, this is what then happened.

Ah… the Euro actually continued rallying.

So why did the Double Top pattern fail?

As I said, because it wasn’t a double top pattern…

It is vital to understand that a double top only becomes a double top when the intervening trough is breached. (And a double bottom only becomes a double bottom when the intervening peak is breached.)

Clearly this didn’t occur here.

This is very simply explained by examining the definition of an uptrend – which occurs when both highs are moving higher while lows are also moving higher.

If we want to be safe in identifying double tops (or bottoms) we should also satisfy the requirement that the sequence of higher lows is broken – which would be when the intervening trough is breached.

Therefore, avoid this simple error which many still fall into by ensuring that the intervening trough (or peak in a double bottom) is broken to confirm a breakdown of the trend.

Gook luck !
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How to Subscribe Trading Signals MetaTrader4 and MetaTrader5 - forex trading basics instaforex

How to Subscribe Trading Signals MetaTrader4 and MetaTrader5 ~ forex trading basics instaforex

"Signals" in MetaTrader 5 trading platform allow traders to connect to any signal issued by providers. Select and subscribe to any trading signals provider to copy all his or her deals on your account.

The reliability of all signal providers is carefully checked to provide maximum security. All signals will work only in demo mode within a month. However, you already can master them by subscribing to one of the Expert Advisors participating in the Automated Trading Championship 2012. Please keep in mind that automatic copying of performed deals is possible only when your trading terminal is active (connected to the trade server). 
So, how to become an investor?

1. Open a real or a demo trading account on MetaTrader 5. "Signals" can work with both account types. Download MetaTrader 5 and open an account. 
2. Open an account on MQL5.com. 
3. Go to the client terminal Settings and specify your login and password from your MQL5.com account. 

4. Select a suitable signal in the trading terminal and subscribe to it. Subscription to a signals source will be set with standard parameters: the current day will be set as a start date and duration will be set to 1 month.

5. Go to the client terminal Settings and check two options in the "Signals" tab: Agree to the terms of use signal service and Enable realtime signal subscription.

6. All is set! From now on, all trading operations performed by the selected signals provider will be automatically copied in your MetaTrader 5 terminal.

You can subscribe to a signal not only from your terminal but also via MQL5.com website. To do this, select a necessary trading signal from the list and click "Subscribe". Select subscription period (weekly or monthly) and a start date. Specify a brokers name (the list of all appropriate names will be shown when you start typing the first symbols) and your login (trading account number) to copy trading deals to. 
Monitoring of Trading Signals on MQL5.com displays trading results of all proposed providers. The choice can be made based on the success of trading operations performed by different signal providers. All providers are carefully checked for reliability and allowed to offer their signals only after they successfully pass the test period. 
To subscribe to a paid signals source, your account should have sufficient funds to cove subscriptioer thn fee. All payments are made in the mql5.com internal Payment System. Find more information in the "Rules of Using the "Signals" Service".
You can manage your subscriptions via "My Subscriptions" section. Go to the section, select and subscribe to the most suitable signal and try it!

SUBSCRIBE TO SIGNALS NOW

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15 Great Day Trading Tips - live forex trading charts free

15 Great Day Trading Tips ~ live forex trading charts free

Reports of people making huge gains in stock markets have been carried in newspapers around the world. This has attracted many first time investors to the stock market. Day trading is one of the systems gaining in popularity with investors. But day trading is fraught with risks. Though you can make huge gains in day trading, you are also likely to lose huge money. However, if you want to do day trading here are some tips to succeed:

Who is day trader?

A person who actively participates in stock market and buys and sells many times a day to make quick profits is called a day trader.

What are the tips to succeed in day trading?

1. Study the basics of the system like the working of the market, which way the stocks will move, the long and short calls, and the time to buy and sell. You should also learn to take care of the profits while reducing the losses.

2. Since mastering day trading is a time consuming process, use the trading platform available on the trading websites before you actually start.

3. Do not let the thought of making losses scare you. Use methods like stop orders to reduce your losses.

4. If you suffer some loss, do not worry, as it is a part of the process.

5. Once you have earned your expected profit, stop trading. Do not hunger after more money and throw away your profit.

6. If the market does not meet your expectations on any particular day, do not trade.

7. As your experience in day trading increases, you gain the ability to foresee the direction in which the stock price moves. But do not go for the topmost or the lowermost stocks.

8. If you find it difficult to decide in which way the market is going, do not trade but just wait.

9. Maintain a record of the results of the day trading. It allows you to learn the things which are effective, as well as ineffective.

10. Learn the buying and selling tactics of successful day traders. They usually sell when there is good news and buy when there is bad news.

11. Do not get emotionally involved in trading but stay aloof and professional.

12. Rely on your instincts as depending excessively on the analysis means skipping some good trading chances.

13. Learn and use top strategies to trade.

14. Concentrate only on select stocks. Focusing your attention on multiple stocks will make it difficult for you to track the movement of each stock.

15. Learn new trading strategies daily and use them to your benefit.

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Free Video 100 Accuracy Forex Trading Strategy - technical analysis forex trading books

Free Video 100 Accuracy Forex Trading Strategy ~ technical analysis forex trading books

  

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After I watch the video, I know that he really knows his trading stuff very very well. (or I should say he really knows exactly how to trade profitably in forex market).

Before you start to believe whatever I said, watch the video yourself first: http://instantfxprofit.brinkster.net/video1.html

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Powerful chart tool and economic calendar - forex trading charts live

Powerful chart tool and economic calendar ~ forex trading charts live

Forex Calendar

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Overbought and Oversold RSI Readings - forex trading charts free

Overbought and Oversold RSI Readings ~ forex trading charts free

One classic interpretation of momentum indicators is that of overbought and oversold. Normally these are quite good signals when used within a consolidating market although mere oversold or overbought readings should not be used to buy or sell (respectively) without other forms of analysis and preferably in shorter term time frame charts.

However, these overbought and oversold extremes can be useful within trends also. In this type of interpretation it is vital that only trades in the direction of the trend be taken.

First we should remind ourselves of the definition of a trend.

Uptrend: is a sequence of higher highs and higher lows
Frequently, though not always, a trend support line can be drawn across the lows

Downtrend: is a sequence of lower lows and lower highs
Frequently, though not always, a trend resistance line can be drawn across the highs

A good reversal signal at the end of a trend may well be the break back below the support line in an uptrend or above the resistance line in a downtrend. In addition, to confirm the reversal completely a break of the last major swing low in an uptrend or the last swing high in a downtrend will also cause the uptrend to be complete.

The following chart is that of the daily Euro-Dollar chart which clearly has shown a strong and persistent uptrend over the course of both last year and this year. Note how all the major lows remained above the previous low in the move and this was accompanied by higher highs in all cases. Very clearly this can be described as a major uptrend.

Below the chart I have added Rapid RSI. I choose this form of RSI since it is more volatile and reaches overbought and oversold extremes more frequently than the traditional Welles-Wilder formula.
What can we deduce from the chart?

Well, at the left of the chart price was actually seeing a sideways trading range. Both overbought and oversold provided good signals. At these extreme readings, if the 4-hour and hourly charts also showed reversal signals they would have been worth following.

What I do want to point out is that overbought readings of RSI in an uptrend need not necessarily mean that the price is actually overbought. Unless they are accompanied by bearish divergences I tend to look at overbought readings as actually meaning “the market is still bullish.”

This does not always mean that price will continue higher and in most cases there is a pullback, but note how on those occasions that when RSI reached oversold while price has not penetrated the last low point, then it actually provides an excellent buying signal.

You will still need to confirm those oversold signals in the shorter time-frame charts, and it may well be worth combining these signals with the support and resistance supplied by an analytical forecaster. However, very clearly the mere fact that in an uptrend, following a price high that is marked as overbought by RSI, the move to oversold can be an excellent signal to take advantage of the next leg higher.


Now, we have just seen RSI move to overbought at the 1.4966 high. There is one difference however which is that this overbought level has produced a bearish divergence and at a time when price is poised just above a support line that has run from the 1.3359 corrective low. Breach will suggest the trend is complete and take price down towards the 1.40-1.41 area. This should cause a correction as the market remains very bearish Dollars but the technicals are suggesting that a new high in the Euro will not be seen.

The use of (Rapid) RSI in this manner does highlight an alternative method of using overbought and oversold extremes to great effect.
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