How to Find BEST Currencies to Trade

How to Find BEST Currencies to TradeAny Forex Trading System will do BEST if traded on the currency pairs that are most trending or are most likely to go into counter trend mode. Trading choppy, sideways range bound currencies is not only a waste of time but is usually guaranteed to lose you money.We use the popular Total Strength indicator which measures statistical trend intensity of every currency vs every other one.Thus if the Euro, EUR is going up against the USD, JPY, GBP, CHF,

 Mail this post

Technical Indicators – Major Oscillators

There are a number of oscillators that can help you when trading. The oscillators make it easy to find great trade signals. These signals can be of help to you to make informed short term decisions about where a stock is probably heading.You will find below examples of how you can make use of a lot off the most frequent oscillators to estimate market movements.

 Mail this post

Fibonacci Numbers And Trading

If you’re beginning to dabble in trading, it won’t be well before you commence hearing about Fibonacci trading, Fibonacci numbers, Fibonacci retracement, and so on. Every discipline features its own jargon, but this appears as if it’s something more than merely a special name for something. Heaps more, in fact, which appears to be rather complex. All the same, before you run screaming from the room,

 Mail this post

Pivot Point Calculator

A pivot point calculator is used on a daily basis by many successful traders to pinpoint key support and resistance levels where they can expect price to react.

 Mail this post

Technical Indicators – Trend Lines

Trend Line are essential visual presentation in understanding technical indicators and determining crucial points such as support and resistance. A medium to longer term uptrend or downtrend not always evolutes the same way. Looking at different charts and periods we notice that from the start of a new price move, the trend shows three possible scenarios before reaching the end of that trend:

 Mail this post

How to Find BEST Currencies to Trade

August 23rd, 2010 admin

 

Any Forex Trading System will do BEST if traded on the currency pairs that are most trending or are most likely to go into counter trend mode. Trading choppy, sideways range bound currencies is not only a waste of time but is usually guaranteed to lose you money.We use the popular Total Strength indicator which measures statistical trend intensity of every currency vs every other one.Thus if the Euro, EUR is going up against the USD, JPY, GBP, CHF, CAD, AUD, NZD then it has 100% breadth and is extremely strong.

Now the fun part! How you can make money when you know the strongest trending currency or currencies.You want to find the STRONGEST currency and the WEAKEST. You want to buy the STRONGEST currency vs the WEAKEST on pullbacks or 1 to 2 hour sideways narrow range consolidation breakouts. When the weakest currency is the top currency you sell it against the STRONGEST currency or currencies.

Summary: Half the battle of trading is being in the most trending currencies. Analyzing the cross currency strength and trading the most strong currency vs most weak makes Forex trading easier.Examples:If EUR is strongest and JPY weakest you then buy the EUR/JPY. If GBP is strongest and CHF weakest you then buy the GBP/CHFIf the AUD is weakest and USD strongest you sell the AUD/USD. If the USD is weakest and CHF strongest you sell the USD/CHF. Most professional traders also use many other commonly available tools such as moving averages, Fibonacci Levels and Support & Resistance zones to more closely pinpoint likely lows and highs for ideal entries.

 

 Mail this post

Technorati Tags: , , ,

Read More »

Technical Indicators – Major Oscillators

June 11th, 2010 admin

 

There are a number of oscillators that can help you when trading. The oscillators make it easy to find great trade signals. These signals can be of help to you to make informed short term decisions about where a stock is probably heading.You will find below examples of how you can make use of a lot off the most frequent oscillators to estimate market movements.

1. The ADX oscillator is a very powerful signal. This signal graphs a line that bounces between 0 to 100. If the line is underneath 20 it is stated to be low if it is above 40 it is stated to be high. Unlike most oscillators this one does not give indications whether to buy or sell .It only informs you how strong the trend is. If a stock is trending up and the ADX is high that signals that the trend is going strong and will in all probability continue. If it the trend is up but the ADX is low that signals that the trend might be losing steam and not that strong any more. In this case you may not want to enter the market or if you are in it you may wish to tighten your stops.

2. The RSI is more of a conventional signal. I say that as it gives you actual trade signals. Such as the ADX the RSI is also a line that bounces between 0 and 100. Unlike the ADX when the RSI passes the 50 mark it signals the trend is changing.This gives off a buying signal if it crosses over to the upside and a selling signal if it crosses over to the down-side.3. The Bollinger Bands indicator is another widely used Oscillator. It makes two lines on the stock chart. One above the price and one underneath the price. When the stock hits the lower it should bounce up to the top line. When it hits the top line it should bounce to the bottom line. These creases always adjust to fit the price movement of the stock.

 Mail this post

Technorati Tags: , , , ,

Read More »
« Older Entries
Twitter Delicious Facebook Digg Stumbleupon Favorites More