There are over a hundred different indicators that you can use in your trading. As it is pretty impossible for anyone to be able to understand all the various indicators available, I often encountered this question from my blog readers.
What Is The Best Forex Indicator To Use?
In fact, this is also my number one question when I first started trading forex a few years back. After pondering on this question for sometime and after these years of trading and trying. I finally have a set of indicator that I think is the best for me.
But let me tell you the best forex indicator that is voted by numerous forex traders in a forex magazine.
The 200 Exponential Moving Average!
If you take a look at your trading chart, you will often find the price being repelled by the 200 EMA and thus it serves as a very good tool to predict price movement. To make use of the 200 EMA, you can enter a SELL trade if the candle moves below the 200 EMA and you can enter a BUY trade if the candle moves above the 200 EMA.
الأربعاء، 18 أغسطس 2010
السبت، 14 أغسطس 2010
The Importance of Forex Exit Strategy
Forex trading is a process, it all started from the point you enter a trade to the point you exit it. Whether you are going to be profitable in your trade depends entirely on the whole process. The problem with most traders is they are very concerned about their entry and they are always in search for ways to give them better entry.
In fact, the main reason why most traders are not profitable is because of their exit strategy. Having a good entry is only half the battle done, you need to have a well plan forex exit strategy in order to be able to keep the profit that you have generated instead of losing it back to the market as it retraces.
Therefore in this post, I will like to share with you several of my forex exit strategies. Your exit must always be realistic; there are traders who are greedy and always wanted to hit a high profit which is usually unattainable. On the other hand, there are another group of traders who often cut short their profit as they are afraid that the market might take it back from them.
In fact, the main reason why most traders are not profitable is because of their exit strategy. Having a good entry is only half the battle done, you need to have a well plan forex exit strategy in order to be able to keep the profit that you have generated instead of losing it back to the market as it retraces.
Therefore in this post, I will like to share with you several of my forex exit strategies. Your exit must always be realistic; there are traders who are greedy and always wanted to hit a high profit which is usually unattainable. On the other hand, there are another group of traders who often cut short their profit as they are afraid that the market might take it back from them.
Best Forex Trading Times
I would like to know the best forex trading times to start trading which can produce profit with at least 90% success.
There are several timing of the day that are better to trade and these timings are what I refer to as the best forex trading times. At these timings, there are high volumes of trades which will translate into bigger price movement.
In order to make money from forex, you have to make use of the large price movement to give you a good risk reward ratio.
Below are some of the best forex trading times to trade
* London Open – Eastern Standard Time 3 a.m.
* London Close – Eastern Standard Time 12 p.m.
* New York Open – Eastern Standard Time 8 a.m.
* New York Close – Eastern Standard Time 5 .m.
I love to trade these timings because of the volatility, these are when the big dog traders start to enter their trade and exit their position. If you are able to trade in the same direction as these professional traders, you will be able to make great profit.
As for your second part of the question asking for time which can produce profit 90% of the time, I will say there is NONE.
Forex trading relies a lot on the action taken by the trader and not the time. In fact, being able to trade with 90% accuracy is pretty rare. Most successful traders trade with 60 to 70% accuracy but the reason why they are still profitable lies in their risk reward ratio.
Therefore if you are looking to be profitable in trading for the long term, you have to horn your money management skills.
There are several timing of the day that are better to trade and these timings are what I refer to as the best forex trading times. At these timings, there are high volumes of trades which will translate into bigger price movement.
In order to make money from forex, you have to make use of the large price movement to give you a good risk reward ratio.
Below are some of the best forex trading times to trade
* London Open – Eastern Standard Time 3 a.m.
* London Close – Eastern Standard Time 12 p.m.
* New York Open – Eastern Standard Time 8 a.m.
* New York Close – Eastern Standard Time 5 .m.
I love to trade these timings because of the volatility, these are when the big dog traders start to enter their trade and exit their position. If you are able to trade in the same direction as these professional traders, you will be able to make great profit.
As for your second part of the question asking for time which can produce profit 90% of the time, I will say there is NONE.
Forex trading relies a lot on the action taken by the trader and not the time. In fact, being able to trade with 90% accuracy is pretty rare. Most successful traders trade with 60 to 70% accuracy but the reason why they are still profitable lies in their risk reward ratio.
Therefore if you are looking to be profitable in trading for the long term, you have to horn your money management skills.
How To Find Forex Support And Resistance
This is one of the most commonly asked questions among traders’ especially new traders who have just joined the field of forex trading.
When I first pick up forex trading, I am having problem with finding support and resistance. I have read books about candlestick patterns and they simply tell me that support and resistance level are previous lows and highs.
When I look at the chart, I was shocked to find so many different levels of swing highs and lows and I do not know what to do with it. After trading for a few years now, I am able to easily find out IMPORTANT support and resistance levels that can be of help to my trades.
If you have been attentive in reading this post, you will find that I have capped the word important because not all swing highs and lows are useful and what you really need to do is to identify significant levels instead of just level of support and resistance.
When I first pick up forex trading, I am having problem with finding support and resistance. I have read books about candlestick patterns and they simply tell me that support and resistance level are previous lows and highs.
When I look at the chart, I was shocked to find so many different levels of swing highs and lows and I do not know what to do with it. After trading for a few years now, I am able to easily find out IMPORTANT support and resistance levels that can be of help to my trades.
If you have been attentive in reading this post, you will find that I have capped the word important because not all swing highs and lows are useful and what you really need to do is to identify significant levels instead of just level of support and resistance.
Online Forex Trading Inflation Indicators
Inflation indicators are used frequently when trying to predict a direction of a currency in the Forex day trading. These indicators are a very integral part of fundamental analysis and of using economic indicators in general.
Inflation has a substantial effect on various economical factors, including on the interest rates, on unemployment, as well as on the online Forex currency price.
What is inflation? Inflation is the rate of increase of the general price level of all goods and services. For example, if the price of seeing a movie used to be $5, inflation raises that figure to $7, even though the service itself stays the same. Forex trading Inflation indicators measure the inflation level of a specific country's currency in a given time.
Inflation is raised for several reasons, which are not relevant for the current issue. In order to deal with inflation, reaction usually involves raising interest rates. This means that the specific currency in that country rises because of the interest rates. This is the short term affect that can be seen almost instantly in the online Forex market.
After a while, when the interest rates are high, the currency is thus sold, and then it drops again. This means that in the long term, an increase in inflation indicators means a drop in the currency.
Various Inflation Related Indicators
Producer Price Index (PPI) - Manufacturing price changes are monitored by this Forex trading indicator. Manufacturing prices are great measures for inflation indicators, and give online Forex traders a preceding tip about the inflation level.
Gross Domestic Product (GDP) - This Forex trading indicator measures the total market value of all goods and services that are made by companies inside a country. This inflation indicator is a good measure of the growth of a country, and informs about the possible future movements of inflation indicators.
Consumer Price Index (CPI) - This indicator marks the average price that consumers pay for a fixed basket of goods and services. This economic indicator is a good reference for inflation levels, and when inflation rises, usually the CPI does as well. The CPI is calculated for prices of food, shelter, clothing, fuel, transportation, and medical services that are used by consumers of a certain nationality.
Inflation has a substantial effect on various economical factors, including on the interest rates, on unemployment, as well as on the online Forex currency price.
What is inflation? Inflation is the rate of increase of the general price level of all goods and services. For example, if the price of seeing a movie used to be $5, inflation raises that figure to $7, even though the service itself stays the same. Forex trading Inflation indicators measure the inflation level of a specific country's currency in a given time.
Inflation is raised for several reasons, which are not relevant for the current issue. In order to deal with inflation, reaction usually involves raising interest rates. This means that the specific currency in that country rises because of the interest rates. This is the short term affect that can be seen almost instantly in the online Forex market.
After a while, when the interest rates are high, the currency is thus sold, and then it drops again. This means that in the long term, an increase in inflation indicators means a drop in the currency.
Various Inflation Related Indicators
Producer Price Index (PPI) - Manufacturing price changes are monitored by this Forex trading indicator. Manufacturing prices are great measures for inflation indicators, and give online Forex traders a preceding tip about the inflation level.
Gross Domestic Product (GDP) - This Forex trading indicator measures the total market value of all goods and services that are made by companies inside a country. This inflation indicator is a good measure of the growth of a country, and informs about the possible future movements of inflation indicators.
Consumer Price Index (CPI) - This indicator marks the average price that consumers pay for a fixed basket of goods and services. This economic indicator is a good reference for inflation levels, and when inflation rises, usually the CPI does as well. The CPI is calculated for prices of food, shelter, clothing, fuel, transportation, and medical services that are used by consumers of a certain nationality.
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