Diverse dynamics ahead of the holidays season.

Euro: On Thursday the euro strengthened and demonstrated maximums at the level of $1.3150. The euro received positive influence from the confirmations of the Government of China regarding their intentions to support the rehabilitation of the European economy.
US Dollar: In spite of the factors that rendered support to the euro on Thursday, the greenback managed to strengthen temporarily as well. When the released information confirmed that the Irish bank Allied Irish received 4 billion euro as the necessary financial help, the US dollar strengthened.
British Pound: The sterling was supported temporarily after the statement of the Bank of England regarding the possible increase of the interest rates. The GBP/USD pair reached the maximums of $1,5430.
The GBP/USD dropped and showed minimums at the level of $1,5369 after the statement of the representative of the Bank of England, Paul Fisher, that the British economy was expected to fall.
Japanese Yen: The USD/JPY pair traded around the level of Y82,80. The greenback was weakening against the yen.
New-Zealand Dollar: The New-Zealand dollar showed growth after the announcement of the Minister of Finances that the country’s economical growth would increase next year.
Oil: Increase of the US oil inventories pushed the oil prices higher to the level of $90.67 per barrel during the morning trading on Thursday.
Gold: The gold rate also grew and showed maximums at the $1388.50 mark per ounce. Later on the price decreased.

American trading session:
British Pound: The sterling managed to rehabilitate and by the end of the trading day the GBP/USD pair grew to the $1,5430 mark.

This is the last newletter for this year. The market reviews and analysis will resume on January 5, 2011. We wish all our customers happy and successful New Year 2011!

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Learn Elliott Wave Analysis

Learn Elliott Wave Analysis -- Free
Often, basics is all you need to know.
March 5, 2010

By Editorial Staff

Understand the basics of the subject matter, break it down to its smallest parts -- and you've laid a good foundation for proper application of... well, anything, really. That's what we had in mind when we put together our free 10-lesson online Basic Elliott Wave Tutorial, based largely on Robert Prechter's classic "Elliott Wave Principle -- Key to Market Behavior." Here's an excerpt:

Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it. ...the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. In markets, progress ultimately takes the form of five waves of a specific structure.

The personality of each wave in the Elliott sequence is an integral part of the reflection of the mass psychology it embodies. The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure.

These properties not only forewarn the analyst about what to expect in the next sequence but at times can help determine one's present location in the progression of waves, when for other reasons the count is unclear or open to differing interpretations.

As waves are in the process of unfolding, there are times when several different wave counts are perfectly admissible under all known Elliott rules. It is at these junctures that knowledge of wave personality can be invaluable. If the analyst recognizes the character of a single wave, he can often correctly interpret the complexities of the larger pattern.

The following discussions relate to an underlying bull market... These observations apply in reverse when the actionary waves are downward and the reactionary waves are upward.

1) First waves -- ...about half of first waves are part of the "basing" process and thus tend to be heavily corrected by wave two. In contrast to the bear market rallies within the previous decline, however, this first wave rise is technically more constructive, often displaying a subtle increase in volume and breadth. Plenty of short selling is in evidence as the majority has finally become convinced that the overall trend is down. Investors have finally gotten "one more rally to sell on," and they take advantage of it. The other half of first waves rise from either large bases formed by the previous correction, as in 1949, from downside failures, as in 1962, or from extreme compression, as in both 1962 and 1974. From such beginnings, first waves are dynamic and only moderately retraced. ...

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What Really Moves the Markets

What Really Moves the Markets: News? The Fed? The Real Answers Will Surprise You
Elliott Wave International's free 118-page Independent Investor eBook explains why financial markets are NOT a matter of action and reaction
December 29, 2010

By Elliott Wave International

"There is no group more subjective than conventional analysts, who look at the same 'fundamental' news event a war, interest rates, P/E ratio, GDP, economic policy, the Fed’s monetary policy, you name it and come up with countless opposing conclusions. They generally don’t even bother to study the data." -- EWI president Robert Prechter, March 2004 Elliott Wave Theorist.

If you watch financial news, you probably share Bob Prechter's sentiment. How many times have you seen analysts attribute an S&P 500 rally to "good news from China," for example -- only to focus on a different, supposedly bearish, news story later the same day if the rally fizzles out?

You need objective tools to make objective forecasts. So, we put together a unique resource for you: a free 118-page Independent Investor eBook, where you see dozens of examples and charts that show what really creates market trends.

Here's a quick excerpt. For details on how to read the entire Independent Investor eBook online now, free, look below.

---

Independent Investor eBook
Chapter 1: What Really Moves the Markets? (excerpt)

Action and Reaction

In the world of physics, action is followed by reaction. Most financial analysts, economists, historians, sociologists and futurists believe that society works the same way. They typically say, “Because so-and-so has happened, such-and-such will follow.” ... But is it true?

Suppose you knew for certain that inflation would triple the money supply over the next 20 years. What would you predict for the price of gold?

Most analysts and investors are certain that inflation makes gold go up in price. They view financial pricing as simple action and reaction, as in physics. They reason that a rising money supply reduces the value of each purchasing unit, so the price of gold, which is an alternative to money, will reflect that change, increment for increment.

Figure 4 shows a time when the money supply tripled yet gold lost over half its value. In other words, gold not only failed to reflect the amount of inflation that occurred but also failed even to go in the same direction. It failed the prediction from physics by a whopping factor of six, thereby unequivocally invalidating it.

Investors who feared inflation in January 1980 were right, yet they lost dollar value for two decades...Gold’s bear market produced more than a 90% loss in terms of gold’s average purchasing power of goods, services, homes and corporate shares despite persistent inflation!

How is such an outcome possible? Easy: Financial markets are not a matter of action and reaction. The physics model of financial markets is wrong. ...

Cause and Effect

Suppose the devil were to offer you historic news a day in advance. ... His first offer: “The president will be assassinated tomorrow.” You can’t believe it. You and only you know it’s going to happen. The devil transports you back to November 22, 1963. You short the market. Do you make money? ...

[...continued in the free 118-page Independent Investor eBook]

---

Read the rest of the eye-opening report online now, free! All you need is a free Club EWI profile. Here's what else you'll learn:

• The Problem With “Efficient Market Hypothesis”
• How To Invest During a Long-Term Bear Market
• What’s The Best Investment During Recessions: Gold, Stocks or T-Notes?
• Why "Buy and Hold" Doesn’t Work Now
• How To Be One of the Few the Government Hasn’t Fooled
• How Gold, Silver and T-Bonds Will Behave in a Bear Market
• MUCH MORE

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ARE YOU READY TO BE RICH ?

Greetings,
My name is विष्णु M and it is my pleasure to introduce myself to you. To start off, I am in no way one of the 'Forex gurus' or God-gifted prodigies. Yet I manage to live an enjoyable life, drive a splendid brand new Porsche Cayenne, and do whatever I please and whenever I please. Since we aren't at a tax office, I won't stuff you with detailed reports on my income, but let you have a look at it yourself. It is always better to see it for yourself once than hear about it for a hundred times

What's Make it Work?

1. Simplicity

I created my software for regular folks, not for a limited circle of highly skilled computer specialists. Any teenager would easily figure how to use it, not to mention adults - so simple it is. My software doesn`t tell you what to do or how to do it - it ACTUALLY DOES IT for you, while you just sit back and watch it working. The goal is not to instruct you on how to gain profits on Forex, but to DELIVER these profits to you.

Consistency Trading Report - Not a Matter of Luck,
but a Source of Stable Income

2. Algorithms

Forex is an extremely complex market, consisting of many more factors than you would ever imagine. The software analyses these factors simultaneously (something a human can never do) and instantly determines the correct pattern. It then places the orders for you and closes them once the pattern exhausts, leaving you with pure profits and tons of pleasure from its impeccable instant performance. No words can describe it better than the results that speak for themselves

3. Results

I am living my dream life. I have the money working for me instead of me working for money. You`ve got a glimpse at each and every aspect of the software and at the way it operates. I`ve shown you the REAL screenshots of it in action, bringing me thousands of dollars within the matter of days (unlike the vendors of all kinds of junk out there, who generously promise heavens and deliver hell). What more of a proof can there be??

I Want it Take Me Download Now

Still got questions? Those remaining are answered below, so that you don`t send me countless identical e-mails. Not something I would enjoy, frankly speaking. Do get a hold of me if you have to, but not with the same stuff over and over again.

Q: Peter, what makes you sell this cash cow, with a full refund guarantee?

A: It`s obvious - to become even richer. The more capital I have, the more profits I can get from my Forex trades. It won`t hurt me if others also rake piles of money using my software on Forex - after all, there`s enough of cash for everyone there, with those trillions of dollars circulating on it. Those thousands, or even hundreds of thousands that you will get from your trades won`t make any difference to the market - to Forex, it`s a small drop of water in the ocean. And it certainly won`t harm me once you get wealthy - I`ll only be happy for you.

Q: Why should I buy your software, Peter? You dont seem to be a guru like the vendors of other Forex programs, do you?
A: ROFL... A guru?? I`m no guru nor a magician, and wasn`t enlighted by any supernatural forces to make my software - it was many months of hard "trial and error" work instead. I am not begging you here to buy anything from me - if you don`t feel comfortable doing it, for heaven`s sake, please don`t. By no means would I force someone into getting wealthy: if you prefer to stick to your 9-to-5 job, then you really should.

Q: I`m from the USA. Can I still use your software legally?

A: What`s wrong with the USA? Forex is not conventional gambling, but the world`s largest financial market. As a matter of fact, Americans form the largest fraction of its traders, as it has historically been so. It doesn`t matter what country you live in - all you need is a computer connected to the Internet. As simple as that.

Q: How old is your software, Peter?
A: Have you seen it elsewhere on the web? If so, let me know, and my lawyers will be after them. This is THE VERY ORIGINAL offer I am making. I am never reselling someone else`s stuff - only the products I made myself, as this is the only way I can be 100% confident about their quality.

Q: How much am I going to make with your software, Peter?
A: Let me make something very clear to you: this product is not a gamble. Once you are with it on Forex, you are no longer at risk of losing out - as now you know for sure what EXACTLY your are doing (making money, that is, and not playing with it). Your profits will directly depend on your trading capital - which can range from as little as $100 to as much as $100,000 or more. Even your hundred bucks will effortlessly convert into several thousand once you let the software trade the market for you for a month or so.

Q: Peter... what about BONUSES?

A: Are you here for a money-making product or for useless bonuses? I could have sure loaded my product with quite a few trashy ebooks titled something like "How To Kill Forex Within Seconds" or "Making Your First Million On Forex", but I feel a disgust for them. I am not selling useless theories here - my software simply doesn`t need them. Buy it, try it, and get your money back if you don`t like it (which I know is not to happen - hence, my unconditional full refund guarantee to you).

Q: But Peter...

A: The download link is down there. You can start using the software right away and if you still have questions, feel free to get a hold of me by e-mail then. I am absolutely positive about the quality of my product - to the extent I`m willing to give you a full refund within 60 days at any point of time upon your simple request. What do you have to lose?

Testimonial
A friend of mine introduced me to your site, calling your software "the new cult product on the web". That was after I asked him where he had got the money for a new car, which I knew he couldn`t afford with his salary. Now I see that a brand new car is by far not the most you can dream of while using your Forex software. I myself have moved into a new apartment just this month, which I couldn`t even imagine happening when I had my old job. While before I used to work in a grocery store for a minimal wage, I am now my own boss and can have pretty much everything I want - needless to say that my Internet revenues are growing even further day to day. Thank you, Peter!

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Artificial Intelligence Neural Network

How You Can Let This System Suck Out Piles
Of Cash From The Market For You
$8.970 in 06 Days...
$13,829 in 10 Days...
$23,061 in 06 Days...
$60,258 in 60 Days...
Do you see the screenshot below? The results are indisputable...the proof is endless...


...and if you've ever wondered why most forex traders struggle even to produce a single cent whilst others effortlessly rake in millions of dollars, seemingly with their hands tied behind their back, then pay very close attention...

In just 30 seconds time, the "combination" will finally click, everything will fall into place... and after weeks, months or even years of frustration, you'll break away from all the lies and 'BS' by copying the exact 'Trading System' that can repeatedly pulls in as much as $1245 every single day or $30,134 everymonth completely on autopilot..

This geek "under the radar" trading pioneer will expose the absolute truth about his 'near illegal' trading system that creates crazy trading paydays that run 100% autopilot.. even when he is relaxing on a golf course
Here's even more proof...

In a 16 days period this system hauled in another $36,891.29... and this was done with only of 15 minutes of work everyday.

Two simple BUY trades raked in $23,061 in 6 days of trading


Another two simple SELL trades raked in $13,829 in 10 days of trading


Why The Hell Am I Not Making Any Money?
Now take a look at a trading statements generated by this system



Introducing, the...

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The ONLY ONE With LIVE PROOF Of:

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True..those $30,000 are REAL dollars...Not some demo account or some back-tests...but real money that can buy real things...produced by the century's most robust, profitable and easy to use Forex robot !

Our Forex robot can be traded with ANY account size....BIG or SMALL!

Back-test Results Are Worthless UNLESS You Can Validate Them With Live Forward Trading!



For those that are a bit “technical” let's sum up the above:

9 Years Back-test
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But whats MORE impressive is that the LIVE trading results are even BETTER than the back-test results!

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If you want to take advantage of this ONCE IN A LIFETIME Opportunity at the special launch price (you will NEVER be billed again and you will enjoy ALL the benefits of FAP Turbo as a life time member) I suggest you act fast before we raise the price.

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FX Trader Resources

Disclaimer:“Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This and any analysis published or received from FX Trader Resources , Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in the analyses. While we try to ensure that all of the information provided is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. FX Trader Resources will not be held responsible for the reliability or accuracy of the information available. The content herein is provided in good faith and believed to be accurate; however, there are no explicit or implicit warranties of accuracy or timeliness made FX Trader Resources . The reader agrees not to hold FX Trader Resources liable for decisions that are based on information from this website. FX Trader Resources highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources

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Money Management Lesson For New Forex Traders

This article is dedicated for new forex traders। I am going to show you how to control your forex capital using simple money management tips। I can't say it more enough, money management plays a key role in your success or failure with your forex trading। This is not just words, a bad money management can easily ruin your forex capital।












How to Apply Money Management

I believe the best way to learn new things is by practicing and examples. Let us assume that you have a capital of $1,000 (One thousand U.S. dollars) in your forex trading account. You need to set certain rules and apply them to your trading, those rules are:

Size Per Trade

You must put a rule for yourself, for your lifetime trading which is size per trade. How? You need to ask yourself, how many U.S. dollars you are going to use per trade? and how many trades can be left open at a single time? Enough questions, let me answer you.

A $100 trade would possibly have a $1 pip value, trading with leverage of 100:1. So never trade more than 10% of your entire forex account at a time. I am serious about this, all your open trades combined should not exceed 10% of your account. So in our case, you can trade a maximum of $100 from your $1000 at the same time (All Your Trades Combined).

But be careful, if you have a bigger leverage (more than 100:1) with your broker, you need to take down the trade value. Try to keep the total pip value for all trades near $1 or less for a $1,000 account. This step is very serious and trust me it is going to help you in your new forex journey.

Risk Per Trade

This step is mandatory. You must know how much loss or gain you are going to accept. Otherwise, your trade could just loss forever, until all your money is gone! So do not do this mistake, it is very very common. Planning is key to success, plan everything before you start. Oh, show me example please. OK!

Let us say I have $1000, and I bought (longed) Euro/Dollar at 1.5000 rate, the trade is worth $100, and the pip is worth $1. I decided to take a Gain:Loss ratio of 1.5:1. So If I put my stoploss at 1.4950, my TakeProfit would be at 1.5075. Risk (What I can afford to loss) is 50 pips or $50. (5% of your account which is an average for many trades. Some traders even risk 2% only though.) Gain is 75 pips (1.5 X 50) or $75.

Basically that above example shows you how to apply money management rules to your stoploss and takeprofit levels. But now I have some important and real important notes for you.

Important Notes

A. You must plan your trade, put your take profit and your stop loss.
B. The above example risks 5% of your account per trade. But many trades risk only 2% per trade. Just do not over risk your capital.
C. Leverage heavily modify money management parameters. I highly recommend avoiding any broker with a leverage higher than 100:1.
D. The Gain:Loss ratio will be different from a trader to another. In plain words, it is the ratio which controls how much you are willing to risk, to make a certain gain. Your gain ratio should exceed your loss ratio but to be honest it depends on your technique and which system you are using. I will talk about that in later articles.

A Word for New Traders

If you have a technique with 50% accuracy. Yes, only 50% accuracy and a Gain/Loss ratio of 2:1. That means you are making profits on the long run. In theory, things are simple but to do this practical, you need to be a restrict person about your trading experience. Some people have no discipline at all and you can't blame me for that.

Okay good. Now what we've learnt together in this article?

1. Never risk more than 10% of your account per all open trades.
2. Plan your trade, stoploss, and take profit levels.
3. Never! Never risk more than 2-5% of your account per all open trades.
4. According to your system, your gain ratio should well exceed your loss ratio.
Article by Ahmed Fouad, BlogForex.info. Forex web log with news, commentary, and education center.

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How to Develop a Good FX Trader Money Management in Forex ट्रेडिंग

In this article I will show you how to develop a good money management discipline in FX trading without risking more than 5% per trade.

Let's say you intend to use 5,000 dollars as your starting capital to trade the Forex market. (Before I proceed further, what do you think with that amount of money, should you open a mini or a standard account?) Although per pip for a standard lot cost 10 dollars if you were to trade GBPUSD currency pair, but that doesn't mean that you can open a standard account with 5,000 dollars. So my recommendation is to open a mini account with per pip cost at 1 dollar.

Before deciding how much you want to risk per trade, you should start with how much you are willing to lose per month, so to withstand any possible drawdown. Since we are starting with only 5,000 dollars as capital, I would suggest a maximum cap as high as 10% risk per month, which is 500 dollars. So now we know that we can only trade with 500 dollars a month* even though we have 5,000 as capital. The next step is to determine your risk per trade.

Once we know that we can only risk 500 dollars in a month, and then you can decide how much you prefer to risk per trade. To simplify calculation, let's say we decide to set the risk per trade at 5% of 500 dollars, so that means in a mini account, 25 dollars is equivalent to 25 pips. Once you have decided that this would be your money management, the next is to look out for trade setup not risking more than 25 pips, and only if both conditions agree, then you enter the trade.

In all, a FX trader should possess three important elements in order to trade profitably. That is you need to adopt a disciplined mindset, developed a proper money management and together with a good trading system, you should be able to trade with confidence and see your trading account grow.

*This money management means that in order to wipe out the trading account, you have to lose ten consecutive months of trading to burn that entire 5,000 dollars. Is that possible? Yes, if you don't have a profitable trading system. If you have a profitable trading system (you may want to consider using my trading system), it is very unlikely that you have such a disastrous run.

Wilson Neo is a private currency trader and regular contributor to the website http://www.fxoperator.com

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FAPTurbo Team ; New Statement...Trading Result

We would like to take this opportunity to wish all of our valued
and faithful FAPT customers a Happy New Years and salutations to
another opportunity to start afresh in 2010.

Whether you make OR keep New Years resolutions, the start of a
New Year is always a reminder that change has occurred and once again we are
afforded an opportunity to move forward in directions that present great
hope and possibilities thus allowing us to earn it again.

The FAPT opportunity introduced over a year ago never goes out
Of style and continues to be the most popular Expert Advisor to
date, which serves as a reminder that we control our futures and
in many ways also our pasts through our reflections.

As always we will continue to churn out free updates and
continually improve upon an already great product. We will as in
the past strive for absolute perfection as this is our
committment to our valued customers.

Last version fapturbo49 has already shown great results. Here is
the statement from our new small 500 usd account CLICK Here... with the broker Iamfx.com
It showes that 500 usd account was doubled in about 40 days
which means you can start trading even with the small deposit.

We wish you all the best in the upcoming year and hope that
happiness and good fortune finds its way to your front door . . .
Please invite it in ! Not only are we concerned for your financial
Future but we wish you health and happiness for you and your families
all year round.

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Forex Chart Comparison

Forex Indicator – Fx Chart Comparison

Forex Chart Indicator Content ;

Main Chart - BrainTrading2sig, EMA 2 & EMA 5,

Indicator Window - NinaStep-MA, FxSnipper ergodic CCI & trigger, SuperwoodieCCI, StochOsc533, FxTrend V2.

Result : SuperwoodieCCI indicator is most reliable & reaction is fastest than other indicator.

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Forex Technical Indicator : Standard Deviation

Standard Deviation — value of the market volatility measurement. This indicator describes the range of price fluctuations relative to simple moving average. So, if the value of this indicator is high, the market is volatile, and prices of bars are rather spread relative to the moving average. If the indicator value is low, the market can described as having a low volatility, and prices of bars are rather close to the moving average.

Normally, this indicator is used as a constituent of other indicators. Thus, when calculating Bollinger Bands, one has to add the symbol standard deviation value to its moving average.


Calculation
StdDev = SQRT (SUM (CLOSE - SMA (CLOSE, N), N)^2)/N

Where:
SQRT — square root;
SUM (..., N) — sum within N periods;
SMA (..., N) — simple moving average having the period of N;
N — calculation period.Forex technical Indicator's ; A Technical Indicator is a series of data points used to predict movements in currencies.
The most popular technical indicators of the Forex:
1- Relative Strength Index (RSI): This index is a popular indicator of the Forex (FX) market. The RSI measures the ratio of up-moves to down-moves and normalises the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater then the instrument is seen as overbought (a situation whereby prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation whereby prices have fallen more than the market expectations).

2- Stochastic Oscillator: This is used to indicate overbought/oversold conditions on a scale 0-100%. The indicator is based on the observation that in a b up trend, closing prices for periods tend to concentrate in the higher part of the period’s range. Conversely, as prices fall in a b down trend, closing prices tend to be near to the extreme low of the period range.

3- Moving Average Convergence Divergence (MACD): This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in trend is likely.

4- Number theory:

a- Fibonacci numbers: The Fibinacci number sequence (1,1,2,3,5,8,13,21,34…..) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number. (used with the Elliott wave theory, see hereunder) .

b- Gann numbers: Gann was a stock and a commodity trader working in the 50’s who reputedly made over $50Mio in the markets. He made his fortune using methods which he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann’s methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.

5- Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five wave advance followed by a three wave decline.

6- Gaps: Gaps are spaces left on the bar chart where no trading has taken place.

* An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day.
* A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness.
* A breakaway gap is a price gap that forms on the completion of an important price pattern. It signals usually the beginning of an important price move.
* A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap.
* A exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.

7- Trends: A trend refers to the direction of prices. Rising peaks and troughs constitute an uptrend; falling peaks and troughs constitute a downtrend, that determine the steepness of the current trend. The breaking of a trendline usually signals a trend reversal। A trading range is characterized by horizontal peaks and troughs. Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy particularly in futures trading or a market with a b up or down trend. For simple moving averages, the price is averaged over a number of days. On each successive day, the oldest price drops out of the average and is replaced by the current price- hence the average moves daily. Exponential and weighted moving averages use the same technique but weight the figures-least weight to the oldest price, most to the current.


Forex Technical indicators: Parabolic SAR - Stop & Reverse
Parabolic SAR from Metaquotes is a very useful technical indicator during trending periods. However, it shouldn’t be used if there is no trending period. Trend periods exist approximately 30% of the time.

In trending markets it provides useful entry and exit points. The name parabolic comes from its shape which is like a parabola. SAR lets our investor follow the dots in an upward or downward trend until SAR is reached and then the trend reverses.

SAR’s stop loss is calculated for each day via the previous days data. The first entry point can be seen when the latest high price has been broken – now the SAR is placed at the most recent low price.

Now as the price starts to rise, the dots on the chart rise as well – starting slowly and then going on with increasing speed in the direction of the trend.

Before you consider using SAR, make sure you actually are working with a trending market as otherwise you’re dead. To do that you can either use a trend indicator or stop trading SAR once you have been whipsawed twice in a row.

To get a trade signal you’ll need to wait until price bars and stop levels intersect. You should go long when price meets Parabolic SAR stop level, while short. And vice versa. Note that Parabolic SAR is more popular for setting stops than for establishing direction or trend. First wait for the establishment of a trend and then trade in the direction of a trend with Parabolic SAR. If the trend is up, buy when the indicator goes below the price. If the trend is down, sell when the indicator goes above the price.

You should ignore signals when the price is ranging or basically when you don’t see any major movements. Exit when price activates the SAR stop. Do not go short when moving average is going upwards. Go long when price crosses back above the top and MA is still upwards.

I have been searching, but so far I haven’t been able to find the exact formula on how the Parabolic SAR is constructed. But there are two variables – step and maximum step. The sensitivity of the indicator depends on the step size – the higher the more sensitive. You shouldn’t set it too high as then you won’t get a too good reading. The maximum step controls the adjustment of the SAR within the price movements. The lower the maximum step is set, the further the trailing stop will be from the price. Good values for the steps are – step=.02 and maximum step .20.

Example Parapolic SAR

PS: Parabolic SARS can be used in conjunction with the Williams %R indicator as they tend to function similar way on certain trends and signals. Also HLOC or candlesticks charts could be used to study SAR a bit better as these include days high and low prices as well.

PS2: I finally managed to find the calculation for Parabolic SAR.

SAR(i) = SAR(i-1)+ACCELERATION*(EPRICE(i-1)-SAR(i-1))

Where:
SAR(i-1) — is the value of the indicator on the previous bar;
ACCELERATION — is the acceleration factor;
EPRICE(i-1) — is the highest (lowest) price for the previous period (EPRICE=HIGH for long positions and EPRICE=LOW for short positions). (thanks to Metaquotes.net

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Forex trading can extend debt help and make you debt free

Your fight against debt is half won if you can identify the cause of your financial instability and if you know what debt help option will set it right. This is because if you are not aware of the reason that is making you fall behind on payments, you cannot strike in dark. It will be an aimless battle against debt. This is because you won’t know what to fight against.

So, as soon as you sense an approaching financial trouble, take it in your stride. Have you ever wondered how forex trading and debt are related? This is also true in case of stocks. Whether you have included stocks or forex trading in your investment portfolio, your investments can serve as an effective debt help option. Let’s see how.

When you are in debt, you tend to explore all possible ways to get out of debt. You will undoubtedly get to know the debt solution that will help you to get out of debt. This is because availing a debt relief option is now a financial option that every household is aware of. And it won’t be wrong to say that the debt help clinics are doing brisk business and helping many debtors get out of debt in the process. But beware of scam artists. They are operating in the debt help industry too.

When you enroll for one of the debt relief programs, you are required to make payments to the creditor. So, whether it is a debt consolidation program, debt settlement program, debt management or DMP, the amount you earn from forex trading can make your debt payments affordable.

Forex trading offers a good way of investing your hard earned cash. And if you have experience in trading currencies, it is still better. However, even if you don’t have sound knowledge in trading currencies, you can always seek professional assistance. There are many forex brokers that can help you in this regard.

Make sure if you have some extra cash, you can use the same for building an emergency fund. It is important to have an emergency fund that you can fall back upon when you are facing a financial crisis. At least you can avoid using your plastic money for making payments for your grocery and utility bills.

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The Fisher Indicator

With extracts from the article “The Inverse Fisher Transform” by John Ehlers
This article may at first appear very technical, but once you understand how the Fisher indicator works, and what it shows, you’ll increase your success in timing your trade.
The purpose of technical indicators is to help with your timing decisions to buy or sell.
Hopefully, the signals are clear and unequivocal. However, more often than not your
decision to pull the trigger is accompanied by crossing your fingers. Even if you have placed only a few trades you know the drill…
We’ve made it easier for you with this custom indicator…

The rules for the fisher are basically…
•Only Buy when the Bars are Green (below the zero line and rising)
•Only Sell when the Bars are Red (above the zero line and falling)
•Move to break-even when the bars are yellow, and manage your trailing stops.



The rules for the fisher are basically…
•Only Buy when the Bars are Green (below the zero line and rising)
•Only Sell when the Bars are Red (above the zero line and falling)
•Move to break-even when the bars are yellow, and manage your trailing stops.

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Scalping system - 5 pips with GBP/USD

This simplified Forex trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.

Trading setup

Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)

Trading rules
Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one Parabolic SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.

Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.


exits
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.
Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.

Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.

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Forex Scalping Strategies

Forex Scalping System For Currency Traders
Therefore in this post, I will go through some of my forex scalping strategies so that you can put them to use for your trading.
When it comes to scalping the market, there are a few factors you have to put in mind.
• You are going to have low risk reward ratio. When you are scalping the market, you are only looking for profit around 15 to 20 pips but it is hard to find entry with low stop loss less than your profit. Therefore you are going to lost more than you can make for every loss trade.


• To compensate for that, you need to have a high winning probability for forex scalping to be feasible for your account.
Here are some forex scalping system that I use
• Look for key support and resistance: As price usually are repelled by the key support or resistance level, there are a high chance that you can enter a trade opposite to the current movement trying to make profit from the repulsion.
What are the key support and resistance levels?
• Pivots: pivot trading are used by big dog and it usually provides very strong support or resistance and this is where you can enter your trade.
• Fibonacci Extension: Fibonacci also serve as good level of support and
Past Highs and Lows: You need to know that the previous high will now turns into your new support and previous low will now turns into your new resistance.

With the understanding of these important support and resistance levels, you can now setup your own forex scalping system with these levels in mind.

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Forex ATR - Average True Range

Average True Range (ATR) is a popular volatility indicator used to measure the volatility in currency pairs.

ATR does not provide any information about the direction of the trend (up or down), it only provides useful info about how volatile a currency pair is.

A high volatile pair such as the GBP/JPY will have a high ATR while a low volatile pair, for example the EUR/GBP will have a low Average True Range.

ATR Calculation
True range(TR) is the largest of these three prices:
• The difference of Today's High Price – Today's Low Price
• The difference of Today's High Price – Yesterday's Close Price
• The difference of Yesterday's Close Price – Today's Low Price
ATR Formula (14 days calculation)

ATR current = 13/14(ATR Previous) + 1/14 (TR current)

ATR is a moving average of values of the TR range.

Recommended period

14 days (standard on most forex charting software)

Trading signals from ATR

Forecasting currency pair movements with ATR is based on the same principle as other volatility indicators: the higher the value of ATR, the higher the probability of a change in trend (looking for tops and bottoms); the lower the ATR ’s value, the weaker (sideways or slow trending) the trend’s movement is, we're now looking for possible breakouts.


Suggested further reading

Stop Placement with Average True Range (ATR)

PS. It is recommended to use Average True Range (ATR) in conjunction with other technical analysis tools to make a complete forex trading system.

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Forex DX Power

- Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well
- Currency Pair: Any

- Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX)
- DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI-
- ADX Settings: Ignore signals where ADX is lower 20





GO LONG WHEN:
- EMA9 has crossed over EMA26

- DI+ >= 25
- ADX >= 20
- ADX is in between DI+ and DI-

EXIT LONG WHEN:
- EMA26 has crossed EMA9 AND
- DI- is higher than DI+

GO SHORT WHEN:
- EMA26 has crossed EMA9
- DI- >= 25
- ADX >= 20
- ADX is in between DI- and DI+
EXIT SHORT WHEN:
- EMA9 has crossed EMA26 AND
- DI+ is higher than DI-

WHAT TO IGNORE:
- While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26
- While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9
- While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade
- Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26

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Forex Strategy - indicator

imple indicators forex strategy works well on the range of M15, the currency pair can be any; On the schedule for the chosen currency pair, you must install the indicators for forex trading terminal Metatrader 4:

1) Indicator - Heikin ashi
2) Exponential Moving Average - EMA (5), close - the color blue
2) Exponential Moving Average - EMA (8), open - the color green
3) Indicator - Dinapoli stoch (8,3,3)
4) Indicator - Momentum VT (10)
5) Indicator - QQE Alert v3.

All the necessary indicators, together with a template for MT4 can be downloaded at the end of this strategy forex.

Entering the market for BUY - if all the following conditions:

1) Exponential Moving Average EMA (5) and EMA (8) crossed up.
2) Indicator Dinapoli stochastic just crossed paths up (blue line crossed the red bottom-up)
3) Indicator MomentumVT (10) is above its zero level.
4) Indicator QQE arrow drawn up (possibly even a few bars earlier).
5) bar is painted in white.

Entering the market needs to produce the next candle after all conditions to the transaction.

Closure of a trading position - as the only indicator QQE alert and moving averages EMA (5) and EMA (8) are fed back trading signals. But since they rarely ring the trading bell at the same time, then close the deal, only in cases where 2, these signals were received.

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Forex Trading Strategies

This is a classic swing trading strategy which is trying to catch the next immediate price movement in the direction of the prevailing trend. Three consecutive lower highs in an uptrend and higher lows in a downtrend show that the correction is exhausted and new move in the direction of the trend could be expected. The following signals are generated:

Rules for long position

1. The market is in an uptrend. This could be identified by the fact that the price is above the 50-period Moving Average; MACD or Momentum are above 0; or ADX is above 25 an +DI is above -DI.
2. After a correction of the up move the last three bars have lower highs. The last of these three bars is marked as Signal bar.
3. Long position is initiated when the price breaks 2-3 pips above the high of the Signal bar.
4. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.
5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows that the uptrend is over.



Rules for short position

1. The market is in an downtrend. This could be identified by the fact that the price is below the 50-period Moving Average; MACD or Momentum are below 0; or ADX is above 25 an -DI is above +DI.
2. After a correction of the down move the last three bars have higher lows. The last of these three bars is marked as Signal bar.
3. Short position is initiated when the price breaks 2-3 pips below the low of the Signal bar.
4. After the position is open an initial stop loss order is placed 2-3 pips above the high of the signal bar.
5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows that the downtrend is over.

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Trend Hugger Trading Strategy

GOING LONG: When a candle closes above the 75 ema as well as the bollinger middle line, and the RSI line breaks above the 50 line or a resistance pattern, enter LONG.

Stop loss - there will be 3 notable levels below your entry - the low of the signal candle, the 75 ema, and the recent swing low of the 5 ema. Of these three I will use whichever is in the middle of the others to place my stop 2 pips below.

GOING SHORT: When a candle closes below the 75 ema as well as the bollinger middle line, and the RSI line breaks below the 50 line or a support pattern, enter SHORT

Stop loss - same as for long - I will place my stop 2 pips + the spread above whichever is the middle of the 75ema, high of the signal candle, and swing high of the 5ema

I will either use a 1:1 R:R, or a 1:2, so either close my trade at 100% the distance of my stop or 200%,
depending on how wide the stop is to begin with - for example if my stop ends up only being 45 pips on GBPJPY and the trade was opened near the beginning of London, I will use a target of 90 pips. But if my stop is 78 pips on EURUSD, I will use a take profit of 78 pips as well.

I generally risk 2% of my total account for this particular strategy.


On the picture, the red arrow is pointing down to the candle that generates the signal, and the position is taken when that candle closes. The blue line indicates the entry price for
the short, the red line indicates the stop and the green line indicates the target.

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