Forex Schooling

Forex most important some books for advanced learner....

bdpips24@gmail.com (S.M.Ariful Mamun) — Mon, 07 Oct 2013 20:50:00 +0000

In the Forex business it may be like to learn something through books. Well a lot of books are printed and provide wide range knowledge of the currency business and about the market. This is very difficult to learn from the books exact Forex market. It is like exercise where by this a powerful trader grown up. And nowadays in the internet a lot of videos, e-books, trading plan available. But before one who want to gain a very deep Knowledge cannot avoid learning some most important books.

You may be noticing that some indicators are built in meta trader 4. These are helpful for market analysis. And also some powerful drawing tools which are used to just understand the current market view. But long time it works.

Now one is the burning question that are you want to learn these indicators/tools better than others? If yes then you should be learn from the books who has created them. It is better to learn from the indicators inventor books.

Here I have submitted some of these books for advanced learning. If you need these books then email me I will be sent to your mail account as soon as possible.

For Candlesticks: Japanese Candlesticks Charting Techniques By Steve Nison.

Profitable Candlestick Trading By Stephen Bigalov.

Dow theory : The Journal Of Finance Vol LIII No 4 August 1998.

Elliott Wave theory : Applying Technical Analysis By Trading Techniques. Inc.

Forex Wave Theory By James L. Bickford.

Bollinger Band : Bollinger on Bollinger Bands By John Bollinger.

New Concept of Trading By J. Welles.

Trading Chaos By Justine Gregory-Williams & Bill L Williams.

Dynamic Trading Indicators By Mark W Helweg & David C Stendahl.

Technical Analysis : A Complete Guide to Technical Trading Tractics By John L Person.

Trade Line : The Best Trade Line Method By Patrick Mikula.

Charting Made Easy By John J Murphy.

Demark Indicators By Thomas R Demark.

Psychology : Investment Psychology Explained By Martin J. Pring.

Forex strategy simplify an overview

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 01 Sep 2013 17:12:00 +0000

In the forex trading all traders trade forex with proper trade strategies. So the question in come how do you build on trading strategies? Well thousand and thousand forex strategies floating on the internet. You probably watch these. Now it need to justify how these strategies works along with mind set. Mind set because all trader physcology is not same and not same their trading goal. Let us discuss the strategy point a to z.

Do you familiar market nature or structure? You may guess it is chart patterns. No market natures are 3.Bullish-bearish-consolidation/sideway.

You may be watch how a bullish trade run or how it behave from start to stop trending. Do you guess some clue there? If so you are intelligent enough.

If a bullish trending obviously it pull back or retrace this is market nature.

If market price is consolidation then it will break the consolidation level this is market nature.

Now you familiar with break or breakout price level.

So breakout can be your trading strategy. And breakout strategy is vary. They may be a candle to candle price breakout, or consolidation price level breakout, or chart patterns breakout, or support and resistance price level breakout, etc.

Now you again learn support and resistance level. This may be your trading strategy. Within the support and resistance are you can be trade quite safe depending your take profit and stop loss and risk-reward ratio.

What is support and resistance and identify it?

What is a breakout ?

By answering this question you can able to suit a trading strategy.

How to select right forex broker

bdpips24@gmail.com (S.M.Ariful Mamun) — Thu, 25 Jul 2013 17:41:00 +0000

Today forex operations is door to door with the bloom of internet facilities and broker system. But in the 90's century it is not easy for participating individual in the forex market due to large transaction costs. After that USA's regulating body CFTC passed bill and start brokering and online forex participating over the world. Now broker is doing on your favor forex trading by execution your orders within mini second.

Broker types

1. Dealing Desk :

DD forex broker earn money form spread offering to their clients. They send orders to the liquidity providers for their clients.

2. No Dealing Desk :

STP broker : Straight through processing system. They send clients order to # Banks, Hedge funds, Mutual funds,other brokers, other clients.
ECN broker : Electronic communications networks. This type of broker sends orders for their clients through several market participants.Thus they are tight spread and they do not trade against clients.They earn money by small commission per transactions.

Now the question which broker or what type of brokers you should be chosen? Yeah lets answer as this are you a scalper or day trader? If you are a scalper you need to tight spread for small profit this is easy in forex market.Day trader may be not worry widen spread since they are positioned or swing trader for long frame.
Now turn on the facilities of these brokers.

DD facilities: 1 .Fixed spreads. 2. Trade against you. 3. Quotes are artificial. 4. Order filed by the broker etc.
STP facilities : 1. Variable speed 2. Trade between clients and liquidity providers 3. Price come from liquidity providers 4. Execution automatic or no requote.
ECN facilities : 1. Variable spread or commission fees 2. Trade between clients and liquidity providers or other clients 3. Price come from LP or other ECN 4. Execution automatic or no requote.

Think where your broker is regulated?

USA: NFA and CFTC

UK : FSA

Australia : ASIC

Swiss : SFBC

Germany :BaFIN

France : AMF

Make sure that Your broker has either tight spread or small transaction cost.

Make sure you can deposit and withdraw money any time and smoothly.

Make sure that trading Execution is automatic.

Make sure that customer service is good.

Make sure that trading platform is vary e.g mt4 or mt5 or mobile trading etc.

How do you create a trading plan? Part- two

bdpips24@gmail.com (S.M.Ariful Mamun) — Mon, 03 Jun 2013 20:04:00 +0000

Hi traders or learners do you believe in "Holy grail" in the Forex market? Definitely not.There is no holy grail system of it.If you search over the Google what do you find out...yeah a lot of trading system, all of them called best and more ...ha ha they think so but real Forex life is struggle and more than hard.And finally pips come through pain mean pressure of mentality.It's true.So what can you do now for trading,,, I hereby draw your full attention how to develop a profitable trading plan.. Let's start:

*First deter main to yourselves what kind of trader you want to be.. like scalping.inter day,swing,breakout etc.
*Find out which indicators do much for your chosen trading system best.
*Select your time frame and long time frame do more accurate analysis.
*Confirm that you can identify a new trade if hard first time then practice in demo for experience.
*Understand where to enter and exit trade.
*Define your trading loss risk by MM(Money Management rule,Professional risk 1-2% of capital)
*Use your trading system with exact rules and follow it unless it claim to you that it is profitable.
*Always record your trade write down your daily trading journal.

Now you need some good virtue for profitable trading:

*Rock solid discipline
*Able to control psychology
*Able to control more greed
*Able to control over trading
*Analysis more than you think

Preparing before entering trade:

*wait until your target entry come
*keep an eye how market behaving
*Know if news event is upcoming & when

How do you create a trading plan? Part- one

bdpips24@gmail.com (S.M.Ariful Mamun) — Mon, 20 May 2013 19:14:00 +0000

Do you have a trading plan for forex? If not please do attention that without a plan how do you doing a trade since forex is a highly risky market per second. Moreover you won't trade like a blind man. And finally, you won't lose your capital, is it?
So firstly you have done homework with a proper trading plan. So the answer to this a question to you that what type of trader you want to be... Scalper (like to trade quickly and profit or loss at a certain period) or inter day trader (trading with patient and long time means day or more)............................ This depends on your personality, time, patient, and tolerant. Because as a newbie you must be in loss and tolerance matter then working in your mind like a rocket force...Hah! Is this right? Yeah we're suffering in this market more than we believe first. So you have to be survive firstly unless you are not a profitable trader!!!
What is your target with forex trading? Do you want 1% growth your capital within a week? Want to make double your capital within six months? Do you want to avoid mistakes for the day? Answer these own, then you will be able to target or fix your goal in forex business. This is important!!!!

Learn first there is no way to avoid money management rules. Again money management. Again money .... Professional risk their capital 1% to 3%.

The financial market is highly risky market and there is no guarantee for earning also it is not trustible!!!!

So clear that you need a trading plan. Now turn on about what type of trader you might to be:

*Scalper: Recognize the market moves quickly and entering trades very few seconds and exit trades with a few minutes. Obviously with small profit is their target. This is very thrilling. Scalper believes that market is quick their direction and won't time to follow market more. They just impatient and won't analyze chart more hours! You need a broker that offer tight spreed for scalping because you might not like that your small profit just eaten by broker that's offered high range spreed!!!!
If you want to be a scalper do trade highly liquidity pair such as E/U, GBP/U, U/J, U/CHF and of course exact time at the session overlap time means Asia and Europe (EST 2.00 at 4.00) and Europe to USA (EST 8.00 to 12.00 noon). Make sure that no news event then if so news can burn your capital means during the news event market move like rocket force...... Try to do trade one pair. It is safe.

*Interday trader: You have enough time for trading and like to one day spend for it.So you are a day trader. If so you may pass some violate turning points of trading that are the part of scalping. You hate scalping. You have much patience! During one day you like to loss or profit and close your trade. Day trader does some type of trading ideas like:
*Trend : They find out major trending and follow trading day long.
*Counter trade : They want to identify a new reversal of current trading so that they can enter a trade-in early for making some pips. So they go to small time frame about guess or find out reversal. This is called in forex market Multi time frame analysis.

*Breakout trading: When is market ranging a possible breakout is coming to be in believed. So they trade breakout level when just identify strong support and resistance level and the market must be in a small range. This type of trader prepares themselves do both sides of breakout level trading since it is uncertain where will be market breakout.

*Swing trading: It is suitable for those whose has not enough hours of watching the market and they are not scalper but some hours at the end of the day (not everyday) for watching the market. They identify medium trend and enter trades with a large stop loss and must be wanting to trade more than one day. They are calm and patient. Usually they do fewer trade.

*Position trading: It is suited for those traders whose has a lot of money and want to trade several months even a year round!

Is there any relation with forex and gold/oil/bond/security/com-doll/stocks?

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 12 May 2013 19:17:00 +0000

The title may be guessed on you how does it work with Forex. Yeah! Fantastic! This is because you will be find more valuable information about monitoring these market and of course there is a close relation with Forex for those above the title.........

Gold is trading when usually investors think that the currency is just struggling with economic circumstances. So fund transferred where? Where will be USD spent out? The answer is just fund goes to buy Gold because it is safe them for investing.

So when gold prices rise meanwhile USD fall. But clear that Australia is 1/3 Gold producer and more than 25% bank reserve gold in Swiss banks.

*You will be found AUD/USD and USD/CHF some jumps for catching pips.... But not all time..... When just confirmation Gold price rise or fall and of course London Gold Market, remember it.

Black crack or oil prices monitoring carefully when the oil price rises USD fall but not all time and USD/CAD is trade is then ok because Canada supply to USA nearly 2 million barrels per day.

When people become bored with currencies and not happy with tiny profit then may be attended with bonds.. Unlikely say that the bank does not provide good profit...so buying bonds is quite happening then...

And people do it high return bond means that higher interest is declared by the Governments.... to the bond buyers this is called bond yields. So if bond demand rises then for example with USA then USD price rises ....

*take an eye the bond price at BondsOnline.com or Bloomberg.com

Stock give to your gauge about how looks that economy at a certain time. If the stock market is quite good investing move flow over it and believe then that currency must be bull in power in nature.

*so look up these data at finance.yahoo.com

News that can help you to understanding economic condition for forex

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 21 Apr 2013 11:08:00 +0000

Are you forgotten fundamental analysis? Oh...no at all.Good.Now you can guess an economic condition of a certain country quite well. How? Well I just now send to you. Try to overcome learning Forex quickly ......................

Beige Book : Current Economic condition shows. The USA federal reserve board uses this report to determine about interest rate policy at FOMC meetings after the release the beige book a report published.

Effect : If the beige book portrays inflationary pressure then the The FED may raise interest rates. If the beige book portrays recessionary conditions then the FED may set low interest Rates.

Published : Eight times in a year. Two weeks ago the FOMC meeting at 2.00 pm ET on Wednesday.

Source : The Federal Reserve Board.

The Chicago Purchasing Manager’s Index ( PMI ) : It is related ISM index which is Very much in use for determining overall economic activity. If 50% above the grade then expanding factory Sector or below 50% indicate the opposite.

Published : Monthly. Current month last business day at 10.00 ET.

Source : Chicago Purchasing Manager’s Association.

Consumer Confidence Index : It is based on current economic situation survey on 5000 Consumer’s.

Published : Monthly. Current month last Tuesday at 10.00 ET.

Source : The Conference Board.

Consumer Price Index ( CPI ): It is familiar as Cost – Living-Index. It is referred the Core CPI which is one of the key measure of inflation for the US economy. Inflation occurs when core CPI is larger than expected. It measures the price changes such as food, energy, house rent.

Published : Monthly. Current month at 13^th 8.30 ET.

Source : Bureau of Labuor Statistics, US Department of Law.

Website : www.stats.bls.gov/news.release/cpi.toc.htm

Durable Good’s Order: It is official calls as Advance Report of Durable Goods manufacture’s and Order.

Effect : If the index rise then production raise + employment get a job. And the other is opposite.

Source : The Census Bureau of the Department of Commerce

Published : Monthly. Current month the 26^th at 8.30 ET.

Website : www.census.gov./ftp/pub/indicator/www/m3/index.htm.

Employment Cost Index (ECI) : It measures labuor cost including wages/salaries and benefits as well.

Effect : It is useful in evaluating wage trend and risk of wage inflation. If wage inflation.Threaten’s interest will be rise then bond and the stock price will fall.

Published : Quarterly. Last business day of Jan , April, July, Oct at 8.30 ET.

Source : US department of labor. Bureau of labour statistics.

Existing home sales :

Source : The National Association of Realtors.

Published : Monthly. On the current month 25^th business day.

Gross domestic products (GDP) :

Source : US Department of Commerce Bureau of Economic Analysis

Published : Quarterly. 3^rd / 4^th of the month at 8.30 am ET.

Website : www.bea.doc.gov/bea/dn1.htm

Housing starts and Building permit : It is relevant just residential investment which is near ¼ GDP.
Source : The census bureau of the department of commerce.

Published : Monthly 16^th.

Website : www.census.gov./ftp/indicator/www/housing.html.

Industrial production and capacity utilization : Industrial sector represents 25% of GDP. It's this rate Up 85% then inflationary pressure is generated.
Source : The board of governor of the federal reserve system.

Published : Monthly 15^th.

Website : www.federalreseve.gov/release/G17/Current/g17.txt

Initial claims : Person whose claims to Gov. for the first time they are unemployment. So people claim so that job market growth.

Source : The department of labour of the gov.

Published: Weekly, Thursdays 8.30 ET

ISM Manufacturing Index : Its service is 300 purchasing nationwide under 20 categories.

Effect : It is considered as the king of all manufacturing indices.

Published : Monthly and first business day.

Source : Institute of Supply and Management.

Website : http://www.ism.ws

New Home Sales : It measures the consumer spending capacity of the certain countries' economies Condition. If existing home sales then Good understanding guesses of economic condition.

Published : Monthly and last business day.

Source : The census bureau of the department of commerce

Personal Income and Consumption: US consumer spends 95 cents every Dollar and their income. So Corporate profit and economic sound look good.

Published : Monthly and first business day

Source : US Department of Commerce Bureau of Economic Analysis

Philadelphia Index : Regional manufacturing index.

Published : Monthly third Thursday

Source : The Philadelphia Federal Reserve Bank

Producer Price Index (PPI): 3 types of PPI. Industry, commodity, and stage of processing.

Effect : It is identifying food and energy for its monthly stability and called as Core PPI. So inflationary pressure is created when core PPI is greater then expected gains.

Source : The department of labour of the gov.

Published : Monthly 11^th.

Retail Sales : The index measuring total sales of goods.

Published : Monthly 12^th

Source : The census bureau of the department of commerce.

International Trade : The report of Export and Import different of US goods and services. About 14% GDP is involved with Export and Import.

Published : Monthly 19^th.

Source : US Department of Commerce Bureau of Economic Analysis.

Carry Trading in the Forex Market

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 07 Apr 2013 12:58:00 +0000

Carry means investment. So investment where.. how...why and benefit? Let us carry trade in the Forex market. You enter into the Forex why? Because you want to profit big or small depending your trading isn't it? Yes. So if you want a large amount of profit then carry trading is right for you. But some risks have has to. And in the Forex you probably learn about this risk.

Carry trading is a trading currencies when sells currency which is low interest rate and make fund then buy a high interest rate currency. So by benefiting difference interest rate with the two currencies. Generally carry trades on the daily basis pay method means if you carry trading and your difference interest rate add/give to you by your broker daily basic. Huh...is the right?

Yes. You have gained market movement knowledge very sharply if you want to carry trading. Now attention the following example:

You find suppose AUD interest rate as 6% and USD rate at 2% then different is (6-2)=4%.The economy is good of AUD.And AUD is probably bullish today/this week/this month more than bearish.So you guess that AUD must be upward.Then you buy AUD and sell USD.If AUD is continue bullish and you hold on your position then after one day later you will be get some interest by your broker at 4% and Plus your profit of buy trading is off course still at your balancing point.So carry trading has huge profit by the end of day/week/month/year/s .In the 1990's carry trading heavily cause with jpy/usd because bank of Japan declared low interest rate or about 0%, carry trading interest given is relatively with leverage that you used on the broker.

Again suppose you enter as carry trading then interest different is 4% and you leverage is 10:1 in this case you got 45% interest by your broker.

The most disadvantage is carry trading the currency pair quote is unstable. So if the trade is against on your favor then you have paid interest from your balance this is cause highly loses of your capital.

So be careful! Cut you lose and gain profit use fundamental, technical, sentimental analysis for this.

Is The US Dollar Index (USDX) Helpful For Forex

bdpips24@gmail.com (S.M.Ariful Mamun) — Thu, 04 Apr 2013 18:40:00 +0000

The US Dollar Index is a value of the US Dollar against of major foreign currencies. It is weighted as the geometric system that mean it's value compared with other 6 major currencies. They are

*EURO................................................... 16.50% weight
*JPY...................................................... 07.28% weight
*GBP..................................................... 03.42% weight
*CAD...................................................... 12.92% weight
*CHF (Swiss Franc).................................. 01.68% weight
*SEK (Swedish Krona)............................... 0.79% weight
*data 10th October 2012

In the March 1973, Bretton Woods System after that it starts with as 100.000 and it's high record 164.7200 in February 1985 and low record in March 2008 as 70.698.

So if you find US Dollar Index as 85.246 that means it fell (100.000-85.246) = 14.754 then you can guess that against pair may be opportunity for buy and hold on.

Formula:
50.14348112*EURO/USD^ (-576) *USD/JPY^ (0.136) *GBP/USD^ (-119) *USD/CAD^ (0.091) *USD/SEK^ (0.042) *USD/CEF^ (0.036)

Find out index: http://www.federalreserve.gov/releases/H10/Weights

Stephen Jen an economist and former currency strategist describe a theory namely as "The US Dollar Smile Theory"
He has taken up 3 scenarios for this theory as
1. USD strengthens due to risk aversion.
2. USD strengthens due to economic growth.
3. USD weakens due to low economic growth.

Therefore you may find some interesting reaction the USDX for Forex trading. Huh.... Ready to observe it?

Market Sentiment Analysis how to approach

bdpips24@gmail.com (S.M.Ariful Mamun) — Tue, 26 Mar 2013 18:36:00 +0000

In the Forex market million of people are engaging with their own knowledge of economic, political, technical, fundamental analysis in order to catch pips, and understanding market for better. So after technical analysis and also fundamental you have to do work with market sentiment analysis though it doesn't show you entry and exit trade point yet but you should not ignore it. But how? Well I am now focusing on these topics.

*Analysis how many candlesticks are bullish and bearish, how much bull and bear cadlesticks average range. (H1 or H4 frame candlesticks you may count)
*Follow COT report every Friday www.cftc.gov/MarketsReports
*Mark up when price bullish at the bottom and bearish at the top price.
*Mark up if more than 3 candlesticks is about equally high and low.
*Mark up market when price on Pivot, Fibonacci level.
*Mark up how much market price range.
*Mark up if market is squeezing.

Identify your market environment

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 24 Mar 2013 17:10:00 +0000

Here Forex Schooling you have learned some topics those are for only alphabet of currency business. Now you may want to know about how to guess market environment. Well .... The market is healthy or weak or simply move as a snail these are you must be recognized firstly for trading. It is called trade-spotting.
Forex learner called these market environments as Bull market, Bear market or sideways/ranging market.
Bull market means the Buyer is in power so market force up-warding. Bear market means the opposite of a bull market. And ranging market moves very small like a snail.
Fibonacci and Trade line helps you to focus on the overall market nature for a specific time and Pivot, Support and resistance just tells you if the market is ranging or not.

*Reversal trending: You may notice that the market is down trending but all of a sudden it goes up trending and this time you may cause of losing your profit since you are not still familiar this. It is called a reversal. And reverse trend is the nature of the market. So you have protected yourselves for this.
Reverse trade can occur any time but usually after a heavy bull or bear trading. And long time price reversal is common remember it.

Technical Analysis Harmonic Pattern

bdpips24@gmail.com (S.M.Ariful Mamun) — Thu, 21 Mar 2013 17:57:00 +0000

In the previous post you have learned about the Elliott Wave extension. There you notice some patterns. Now I am discussing some different types of pattern and these are very useful. Since you are learning Forex for professional level and I am trying to you as many topics and tips on Forex thus you can make yourself Forex professional.
Do you see bats, crab, butterfly? Yes of course but why? Is it important? Yeah this is important. Sound like noise ...um.. bat, butterfly...
Let's turn on the Harmonic patterns.

*You must be use Fibonacci retracement level and extension for measuring these patterns.

*ABCD pattern: It is likely wave and AB length = CD length, AB length time need = CD length time
An AC length retracement is 0.61 and BD length is 1.27 Fibonacci.

*3 Drive pattern: A and B point retracement is 0.61, point 2 and 3 is 1.27
Drive 2 complete time = drive 3 complete time

*Gartley pattern: It is discovered by H.M.Gartley.It is inside ABCD pattern and based on W or M shape or structure overall.There are some rules for it:

*Move AB is 0.61 retracement of XA move.

*Move BC is either 0.38 or 0.88 level retracement of AB

*Move CD must be 0.78 level retracement of XA

*Crab pattern: In 2000 Scott Carney discover this pattern.His observations are

*Move AB is either 0.38 or 0.61 level of XA move.

*Move BC is either 0.38 or 0.88 level of AB move.

*Move CD may be 1.61 extension level of XA move

*Bat pattern: In 2001 Scott Carney discover another patter.It is bat pattern.His own observations are

*Move AB is 0.38 or 0.50 level of move XA.

*Move BC is either 0.38 or 0.88 of move AB.

*Move CD may 0.38 of move XA.

*Butterfly pattern:It is discover by Bryce Gilmore.His own observations are

*Move AB may be 0.78 level retracement of move XA.

*Move BC is either 0.38 or 0.88 of move AB.

*Move CD may be 1.27 or 1.61 level of move XA.

Technical Analysis Elliot Wave Extension Pattern

bdpips24@gmail.com (S.M.Ariful Mamun) — Wed, 20 Mar 2013 20:00:00 +0000

In my previous post I mentioned that it is not so easy to identifying Elliott Wave perfectly. And the more time you will be find only 1-3 waves or 1-5 waves but not with the full extension pattern because it is rare and 1-3 or 1-5 waves the nature of the market with trader sentiment overall. However some time it found full Elliott Wave and you have to learned this perfectly to be a professional trader. Huh.. Is it? Yeah Elliott Wave now most widely used theory among the professional traders.
Now turn on about Elliott Wave extension wave which is called an ABC pattern and more than 21 types of ABC structure recognizes.

*Always use the Zig Zag indicator to easily identify these patterns.

*ABC Pattern:

*Flat Pattern:

*Zig Zag Pattern:

Technical Analysis Elliott Wave theory

bdpips24@gmail.com (S.M.Ariful Mamun) — Tue, 19 Mar 2013 09:09:00 +0000

Ralph Nelson Elliott (1871 to 1948) was an accounting professor who was a mad genius for researching 75 years stock data and discover "Wave" in the market, with having evidence published "The wave principal " in 1938.He believed that a trading market happens in repetitive cycles and he points these cycles for only market traders' emotion or psychology or reaction influences. He discovered some swing point of price and structure a pattern like a wave. Do you learn Dow theory? Elliott Wave theory is based on Dow theory. He described Fractal (same pattern appearing at every degree of trade ) is the nature of the market.

There were 273 rules and guidelines for Elliott Wave principle. So if you want to know details please read a reference book for wave theory. Elliot believed that market move as cycles or wave and this he called 5-3 wave patterns. First 5 wave patterns are called impulse wave while second 3 wave pattern is corrective patterns. Corrective patterns are called ABC or ABC pattern means one kind of patterns they are. Moreover 21 types of corrective patterns now identify. So the Elliott Wave principle is not so easy as you think. You have to learn more and more about it. However I hereby show only simple matter of Elliott Wave. Simply learn the following:

*Wave 1 is just sudden a simple wave.
*Wave 2 never goes back to wave 1 completely.
*Wave 3 always bigger than wave 1.
*Wave 4 never same price level of wave 1
*Wave 1,3,5 is always extended waves.

Corrective patterns:
As I wrote above corrective patterns are different types. The majors corrective patters are
*Zig Zag pattern
*Flat pattern
*Triangles pattern

Remember the following facts:

*Wave in wave means when you identify wave 1,2 etc.. Then there may be see a tiny wave into these waves.
*Use Fibonacci retracement in order to forecast future price movement or next wave mean 50% to 78% retracement you should be notice for wave 2 and 4.
*A lot of practice you need to identify correct Elliott Wave.
*Wave 2 & 4 are always short waves.

Technical Analysis with divergence

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 17 Mar 2013 18:38:00 +0000

Do you see what action price does during up trend and down trend? If you see then you may catch point as Higher high and Lower low price. But how you guess it? The answer is divergence. It tells you where those your marking points. And you can analysis price action better for the help of divergence. But careful it needs some tolerant practice, because many times false divergence happened and as a novice trader you may guess it exact divergence. You must be using for guessing true divergence by MACD. When the market is higher high MACD shows to you Lower High and Lower low it shows Higher low. There are two types of divergence,

*Regular Divergence
*Hidden Divergence

Remember the following facts:

*If market moving uptrend then you will find Higher low to Higher high.
*If market moving down trend then you will find Lower high to Lower Low.
*you must be search the last level double top or double bottom patterns.
*Divergence tells you if price moving continue direction or opposite direction.
*Hidden divergence is difficult to recognize for newbie.

Technical Analysis Dow Theory

bdpips24@gmail.com (S.M.Ariful Mamun) — Sat, 16 Mar 2013 15:57:00 +0000

Today in the Forex you can notice that many indicators which are mostly uses currency business understanding or technical analysis is collected from the stock market and refined.So we have to go back a little understanding today's Forex market theoretical or concept.How many ideas or concepts that reflect today's Forex market along with the stock market? Well one of the concept is Dow Theory.Charles Dow was born in 1851 and he was not learned yet likely modern graduate.But he was a genius for his brilliant observation with stock chart.In 1882, he founded Dow Jones & company and he created Dow Jones Industrial Average,20 Stock Rail road Average(Now Transport Average).Dow himself never refers his theory as Dow theory.Actually Dow did some editorials and later W.Hamilton, R.Rhea and S.A.Nelson, E. George Schaefer,Richard Russell refined the Dow theory as they did research and published their own observation.

Dow emphasis the stock market movement into 3 paths. A certain time period each movement defined, and these movements may be a major or minor trend. Dow called them as Major movements, Secondary movements and Intra -day-cycle. These movements familiar now as Bull markets, Bear markets, Ranging markets.

W. Hamilton focus on the main points as:

*The price average discount everything.
*The 1st or primary trend cannot be manipulated.
*Both 2 types of Dow's creator (Industrial & Rail) must confirm each other.
*Trending spotting Higher high & Lower low.

E. George Schaefer points some new view of Dow's as:

*He believer both Hamilton and Rhea were far from the Dow reputation for "Values".
*He believed that R. Rhea just some took advantage from Hamilton research and tried to improve the Hamilton system.
*He prove that some points of Dow theory cannot play today's modern emotion stock market such as secondary trend retrace 1/3 to 2/3 of the primary swing.
*He use 50% retracement concept.
*The yield cycle.
*200 SMA use
*The ratio of the short interest to the daily volume.

I hereby write few lines of Dow's as it is important to learn the "Wave" concept in the Forex market which is now familiar as Elliot Wave and it is based on the Dow theory.

Introduction to Chart Patterns

bdpips24@gmail.com (S.M.Ariful Mamun) — Thu, 14 Mar 2013 05:27:00 +0000

Now you probably familiar with candlesticks and market a little more from time to beginning Forex learning. With stick the candlesticks chart you may be see that some structure are formed in the candlestick charting. And these structures you will find easily once you have known about clearly. So lets us journey to learn these types of chart formation. Are you ready?

*Double Top & Bottom: You may know the candlestick formation called double top & bottom. Now gather some candlestick you also see the double top and double bottom formation.

*Head & shoulders / Inverse Head & shoulders: Like to see about a human head and shoulder.

*Rectangles: Like a box shape price consolidation into the box and rectangle line break.

*Triangles: Just look systematic triangles, ascending or descending triangles.

*Wedges: Wedges are consolidation price into support and resistance line and ending a parallax line. Then price break trade line and market moving bullish or bearish trade.

*Pennants: These formations during after a big up or down price movement. It is like almost the same as triangle formation but little difference you may be notified.

Bullish / Bearish Flag Pattern:Like a flag shape candlesticks gathering or consolidation or ranging and break upper / lower trade line.

How to trade chart patterns: You should always wait for the formation of chart and identify these and must trade some far from these line breakout levels because it may mislead you unless you do not do that. And a lot of practice you need to do that. These patterns are easy to see and most of the traders look these along with you. So make sure that you enter trades a secure distance.

Technical Analysis with Trade line

bdpips24@gmail.com (S.M.Ariful Mamun) — Wed, 13 Mar 2013 10:38:00 +0000

Do you know the only Trade line tells you market movement present or future? O...F.w that's true? Yes that's! But you have drawn trade line exactly. It is a handy tools so does not draw the trade line as you wish. But draw trade line to high to low exactly. You will be find some interesting for this......

Technical Analysis Fibonanci

bdpips24@gmail.com (S.M.Ariful Mamun) — Tue, 12 Mar 2013 09:15:00 +0000

Leonardo Fibonacci was an Italian mathematician (1170-1250). He described a numerical system which is generated by a sequence of numbers later knew Fibonacci numbers. In the Fibonacci sequence each number is the sum of the previous two numbers and starting with 0, 1.
So the sequence begins at 0,1,1,2,3,5,8,13,21,34,55,89,144,233,377,610,978.......
Higher up in the sequence the closer two consecutive Fibonacci numbers of the sequence divided by each other all will approach the ratio approximately 1:1.618 or 0.618:1.
You will find some other Fibonacci level these are called Fibonacci extension. They are 0,0.382,0.618,1.000,1.382,1.618........

Fibonacci retracement: In the Forex market traders use Fibonacci retracement in order guess where the market may be going and where may market move turn on trending. To do so you have to find out where swing high price and swing low price then drag Fibonacci retracement and watch carefully. Normally 50% retracement follows but there is not guarantee 50% retracement, the market can break 50% to high level it is just a potential guess of market movement.

Remember the following facts:

*Fibonacci is used for potential trade movement.
*Fibonacci uses for potential temporary support and resistance level.
*When Fibonacci level broke market will be usually go the next level.
*When market break Fibonacci level 0 and 100 big movement may happen.
*Look at this level with candlestick confirmation such as Doji, engulful, pin bar, etc. This will be improve your trading performance.
*Use minimum 4 Hours time frame for Fibonacci tools. However short frame can be used.

Technical Analysis Part 5

bdpips24@gmail.com (S.M.Ariful Mamun) — Mon, 11 Mar 2013 20:57:00 +0000

Donwload my chart for better understanding

https://www.dropbox.com/lightbox/home/Forex%20Schooling

Pivot point: Expert trader and also market maker use pivot points in order to identify potential support and resistance level. Remember many traders watch this level so you should take an eye with it.It is useful for the short time frame who wish to catch some pips very quickly. You can learn to trade just look at this level and identify major trending.

Pivot point calculating = (High + low + close price) / 3
1st resistance level (R1) = 2*pivot point - Low price
1st support level (S1) = 2*pivot point - High price
2nd resistance level (R2) = PP + (High - Low)
2nd support level ( S2) = PP - (High - Low)
3rd resistance level (R3) = High + 2 (PP-Low)
3rd support level (S3) = Low - 2 (PP-High)

Another way calculating pivot points are woodie (High+Low+2*close/4), Camarilla, Fibonacci method. Which way is best? Ow..w this depends on your trading style.

You don't calculate it while available indicator has done this job for you. Search over the internet such an indicator which feel you comfortable.

Remember the following while use Pivot point:

*watch if the price come to pivot point if price ranging at pivot level after it will go a certain direction.
*watch if the price above R1/R2/R3 level then the price will drop down.
*watch if the price below S1/S2/S3 level then price will go up.
*watch market movement carefully for understanding major movement.

Technical Analysis Support & Resistance

bdpips24@gmail.com (S.M.Ariful Mamun) — Fri, 08 Mar 2013 06:14:00 +0000

Do you know most trader firstly recognize what's in the Forex market? Guess it...Yeah it is support and resistance level. Traders should find out where these levels are. Support and Resistance keep you a trading safe and secure, and also determine you where you should put stop loss & potential take profit area. Learn the following observations:

*Find out Mazor support & resistance level.

*Find out minor support & resistance level.

*Find out how support & resistance level strength is (more than one times price touch the level but not broken mean this is strogger level)

*Support and resistance can be broken if price close near it ( but not always why? This you will learn by trading)

*When a resistance level broke the last broken resistance level is turned on support level.

*You may mislead by fackout mean false breakout of support or resistance so put stop loss more than some far from support and resistance level.

Technical Analysis Part 4

bdpips24@gmail.com (S.M.Ariful Mamun) — Wed, 06 Mar 2013 11:04:00 +0000

Download my chart for better understanding
https://www.dropbox.com/s/w0im0c9vxy6mc36/ATR.gif?m
https://www.dropbox.com/s/gsbv0rbvdq658mg/New-Picture-%288%29.gif?m

ATR ( Average True Range) : It is developed by J. Welles Wilder along with RSI, Parabolic Sar, Directional Movement Concept in 1978.However it is a volatility measure indicator since it is designed for stock but today it is used in fx market too. But careful it doesn't provide market price direction. It provides range which means the high and the low price distance of a day/ periods. ATR uses generally 14 days of moving average true ranges. It is important to the traders to set of stop loss, take profit. True range is measure the following possible way.............

*TR = H - L (current high low minus) ( TR = True Range)
*TR = H - CL ( current high minus previous candle's close)
*TR = CL - L (previous candle's close minus current low)

Let's say that market previous high price is 1.3000 for Euro / Usd pair. You want to trade a previous day price breakout. In this case you may enter buy trade at 1.3005 but you may be mislead by fackout (False breakout). Here ATR (14) helps you just where should entry. Look at the ATR value. Suppose it is 100 pips. Now if you decide 20% ATR value then it is 100*20% = 20 pips so buy entry at 1.3000 + 20 = 1.3020 prices for a secure entry. Now question where to set off stop loss ? Well if you decide 2 to 4 times ATR value then above example 100pips*2 = 200 Pips your secure stop loss of ATR value. Can I use trailing stop loss this case? Yes you can choose 30% or 50 % ATR values of it. Like 100*50% = 50 pips your trailing stop loss.

*Ichimoku Kinko Hoy : It is discovered by Japanese. It means "may the be pips with you. It is a future momentum indicator, and 3 in 1here you find mean 3 types of indicator works do it only Ichimoku. Wow...right fantastic! wait you have to point some topic here, and you will not be disappointed with me! Promise you believe or not doesn't matter. Japanese word hoy mean 'chart' kinko mean 'equilibrium = balance, Ichimoku mean 'a glance' huh! This is right. You have looked at 2 Sen and 2 Span in Ichimoku to understand it. They are

1. Kijun Sen (blue line )
2. Tenkan Sen (red line)
3. Chikou span ( green line)
4. Senkou span ( orange line)

Kijun sen is calculated average highest high and lowest low last 26 periods.
Tenkan sen is calculated average highest high and lowest low last 9 periods.
Chikou span focus on today's close price pointed 26 periods behind.
Sekou span (1st line) calculated by tenkan and kijan averaging 26 periods ahead. 2nd Chikou span calculates averages of the highest high and lowest low 52 periods and plotted 26 periods ahead. So how do you can trade with it. Well, makes this point carefully:

*Look at where the price is it above or below Senkuo span (orange line) if up then 1st orange line is 1st support and 2nd line is 2nd spot. If below price then 1st line is 1st resistance and the 2nd line is 2nd resistance.
( I will be talking later about support & resistance details another lesson)

*Kijun sen provide future price movement if the price goes up blue line then it will be up and if the price below blue line then it will be down, OK.

*On the other hand Tenkan sen just provide a signal that the market is moving. If redline is horizontally that mean market is sideways or ranging or not so move or lazy as what name you can learn.

*Chikou span ( green line) signal to you buy or sell but where. Oh! Wait before jumping to catch pips. If green line crosses from up to down direction then sell and if it crosses from down to top buy.

Technical Analysis Part 3

bdpips24@gmail.com (S.M.Ariful Mamun) — Mon, 04 Mar 2013 19:36:00 +0000

Pls download my chart for better understand

https://www.dropbox.com/s/emen0ke9i5hq50z/stochastic.gif?m

https://www.dropbox.com/s/ble3co86ipukbdh/New-Picture-%286%29.gif?m

*Stochastic : It is a momentum indicator. It is developed by the Dr Gorge Lane in 1950.It provides the trader the location of a current price and a relation of the price range over the periods. It calculated where high, low, close price and and %D of 3EMA of K% and %D of slow EMA %D. It's formula = %K = 100[{C -L14)/(H14 - L14).
It displays the over bought and over sold area. Traders usually enter trades by stochastic when price is overbought/oversold area (above 80 scale and below 20 scales)

*RSI (Relative strength index): It is developed by J. Welles Wilder in 1978.It's a momentum indicator. It measures volatility and direction of price movement over a period. Generally 14 day time frame measure 0 to 100 scale where 30 and 70 scale show price oversold and overbought condition. Wilder recommended 14 EMA smoothing periods. Wilder also believed that divergence between RSI and price action is also a strong clue market turning point.

*Parabolic Sar ( Stop & Reversal) : It's a trade following indicator mean lagging indicator. It also developed by J. Wilder. It finds potential reversals of the price direction. The sar is calculated one period in advance using present data. The Extreme Point value is set off 0.02 in parabolic sar. When the market up trading or preparing up then sar point you find below the candlesticks and vice verse. But be careful you may be mislead so wait for 3 dots above or below and then enter a trade. If dots below buy signal and above then sell signal.

Technical Analysis Part 2

bdpips24@gmail.com (S.M.Ariful Mamun) — Sun, 03 Mar 2013 19:48:00 +0000

Download Chart for better understand below indicator analysis

https://www.dropbox.com/s/3uivk81n30gv3rg/Moving%20Average.gif?m

https://www.dropbox.com/s/5jm4su8y3zl5x0r/Bollinger.gif?m

https://www.dropbox.com/s/yh9xs34s40d7xgv/MACD.gif?m

*Moving Average : We confirm price which is numerical or number or points in the meta trader4.For example 1.3200,1.3205,1.3209,1.3045 so on.These are price and price always move to move at a direction up or down.So what average the price on a certain period?Now you probable calculating it.Wait! Moving average an average price for a certain period.
1.3025+1.3026+1.3027+1.3028+1.3029 = 6.5135/5 = 1.3027
Now what useful information you get from it? You just get now what is moving average price, it is just simple but have some clue too......
In the meta4 you will find some kinds of moving average, like ...
1. SMA ( Simple Moving Average)
2. EMA ( Exponential Moving Average)
3. Smoothed
4. Linear Weighted
Moving average used by Open / Close / High / Low /Median / Typical / Weighted close prices.

Mostly use SMA & EMA.If you wish to trade longer time frame then use SMA if you trade shorter time frame use EMA because EMA display quick price average movement since trader want to trade in short frame quickly.
When you use it you find a curve line or graph line upper and lower. Trader usually enters trades when the line break since its focus on pressure for price movement. And SMA & EMA generally use the close price method. ( Please download my chart for better understanding)

*Bollinger Band: It is developed by John Bollinger near 1980.Mr. John uses Moving Average and deviation, where upper, lower and standard deviation in the middle. It is Volatility indicator. It provides the trader a relative definition of high and low price act as upper and lower bands.
Traders usually trade by Bollinger bands when its band breakout or buy at lower band and out at middle band sell at the upper band and out of the middle band. The middle band they use just neutral purpose.
Another way by Bollinger band when Bollinger bands become squeeze and wait for breakout!
In 2010 Mr. Bollinger release 3 types bands know as BBImpulse,percent bandwidth(%),bandwidth delta.1st is measure price changing 2nd is band width over a certain periods.3rd measure how changing the width of the band.

*MACD ( Moving Average Convergence Divergence ): It is created by Gerald Appel in near 1970.It is a momentum or oscillator indicator which measure direction of changing trends and strength. Today it is vastly used in currency business. It displays trader signal calculating over a periodical data of closing price. It used 12,26 EMA and 9 EMA. There are 3 signal lines in MACD. Blue line (Minus of 26,12 EMA), Red line ( 9 EMA of blue line), Histogram (Bar graph) Minus of blue and red line.

How do you can follow it:

***Look at when the MACD (blue line ) cross the signal line (red line)
***Look at when the MACD (blue line ) cross the zero scale.
***Find out Higher high or Lower low on the chart
(Later I will be discussing these on the chart pattern lesson, OK )

So MACD is 12.26.9 EMA (Fast, Slow, Signal). Another popular set of MACD is 5,35,5 for short time frame. The longer time frame you use it then it provide the best results.

Technical Analysis Part 1

bdpips24@gmail.com (S.M.Ariful Mamun) — Fri, 01 Mar 2013 20:36:00 +0000

Technical analysis is based on indicator/s ( indicators are trading tools, it's inside is coded mql4 language or lite c ) which is built in meta trader4 and also you can use more developed indicators, these are called custom indicators. For technical analysis I hereby notice you there are only 2 types of indicator in the Forex market. They are

1. Leading indicators / Oscillators : Tell you market movement before trend occurs. Ow..w you think that's very nice. I just use it and make pips easy and be rich very quickly. You are wrong. Many times it doesn't work or mislead you because the market may be change very quickly. And these types of tools just help to guess or analysis better for profitable trading.

2. Lagging indicators / momentum: Tell you signal after a price changing movement and new trending is going to happen so that you can be prepare yourself for some catch pips....

And costumes indicators are either leading or lagging indicators.

Which type of indicator best? A million dollar question? Um....m it is depending on trending and vary from trader to trader. Remember indicators are just helping tools for trading. So you won't relay with it but learn market deeply.