Free Forex Signal - Forex Indicator

Forex Trading Indicator

noreply@blogger.com (Ekurnia) — Fri, 06 Nov 2009 09:55:00 +0000

Fx Indicator's ; Elliott Wave Oscillator, Juice and MA” -
the currency pair EURUSD (but you can choose any other, the selection of suitable values of stop-loss, profit and trailing stop),
a time-frame - M30 - MetaTrader4

Indicators Forex:
1) Exponential Moving Average EMA (200), applied to a close, the color blue.
2) Exponential Moving Average EMA (50), applied to a close, the color red.
3) Oscillator Elliott Wave Oscillator.
4) indicator of the level of Juice 0,0004.

Open a deal to BUY conclude with the following conditions:

1) Price is above the 2 moving averages EMA (200) and EMA (50), and the trend is upward, as indicated by the intersection of bullish Moving Averages (red above blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed above it.

3) Juice indicator is above its level of 0.0004.

Take-profit set to a value of 100 points from the entrance to the market.

Stop-loss - 20 points, trailing stop just 20 points.

Open a deal to SELL is when the following conditions:

1) Price is below the 2 moving average EMA (200) and EMA (50), while the trend is downward, as indicated by the intersection Moving Averages bearish (red below blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed below it.

3) Juice indicator is above its level of 0.0004.

Take-profit as set on the value of 100 points from the entrance to the market.

Stop-loss, respectively - 20 points, trailing stop - 20 points.

----- by ; ForexStrategies ----

Forex - Polarized Fractal Efficiency

noreply@blogger.com (Ekurnia) — Fri, 06 Nov 2009 09:47:00 +0000

Polarized Fractal Efficiency - PFE indicator - draws on Mandelbrot and fractal geometry to depict how pricing moves between 2 points during a definite time period. The more linear and efficient the price fluctuation, the shorter the distance the prices must move. the Polarized Fractal Efficiency indicator was created by Hans Hanula.

The PFE indicator is used for calculation of how trendy or overloaded the price action is. PFE <> 0 - indicate that the trend is up. The higher the reading the "trendier" and more efficient the upward movement. Readings around zero show jerky, less efficient shift and a balance between demand and supply

A hooking pattern often happens right before an efficient period finishes when the PFE appears to have maxed out, turns in the contrary direction towards zero, and then makes one last attempt at max. efficiency.

Stay with the trade all the way to the other extreme, unless it slows around the zero line. If it slows around zero, exit the trade and wait for a new max. efficiency entry.Trades can be entered in the opposite direction, with a stop just beyond the extreme of the hook.

Forex Trading Strategy - Bagovino Method

noreply@blogger.com (Ekurnia) — Tue, 27 Oct 2009 18:03:00 +0000

Forex Strategy “Method Bagovino” very simple, trade is conducted on the 1-hourly chart (H1), it must install EMA (close) with a period of 5 and 21. And as RSI indicator with a period of 21. All these indicators are in any standard set of terminal Metatrader 4.

In installations RSI indicator determines the level of 50.
Once the 5 and 21 EMA cross and up, and RSI indicator crosses a bottom-up level 50 - open the deal to buy (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!)
Conversely, as soon as the EMA cross on the graph down, and the RSI indicator falls below 50 - opening the deal to sell (remember - the transaction should be opened only after the closing hour candles and candle digging the new hours!) The best situation as soon as Both intersections occur simultaneously (the intersection of EMA and RSI indicator crosses a level 50).

This forex strategy at history has shown about 85% of profitable signals!
For work, you can choose any currency pair.

Examples see in the picture:

The first time (the situation on the left) - First there was the intersection Movings, but we had a deal only a few hours later, after the RSI has crossed the level of 50 and closed below it.

The second time (the situation on the right) - the intersection Movings and RSI occurred for 1 hour, an hour after closing a deal was made for the purchase.
Stop-loss recommend stavt at your discretion (subject to approval by you MM (risk management) - as you see fit, but I still recommend risking no more than 0,5-2% of the depot for each transaction and stop-loss set: purchase - below the previous low candle in the sale - maximum above last candle).

Also propose to use the indicator forex Vegas 1 Hour to determine the levels for the partial closure profitnyh trade positions. For example, you have opened a bargain on a signal Bagovino 0.3 lots. On the first line can close the 0.1 unit, and the rest put in the level “zero” (well suited for this trailing stop). On the second line cover is 0,1 lot, and have the remainder of the latter can close or you can just pull it into profit and into the “free floating”, treylenguya rest position such as at a distance of 25-50 points, while hoping to catch a trending move.

Forex Trading Platform - Meta Trader 5

noreply@blogger.com (Ekurnia) — Tue, 27 Oct 2009 17:53:00 +0000

The difference between MT5 and MT4
The function of MT5 is much stronger than MT4.

Firstly, MT5 terminal is able to use more and more financial products. At present, except of forex and futures, it can also use in other financial products including the stocks and the options.

Secondly, the function of MT5 becomes more and more. Here are details of new functions:

1. Twenty-one kinds of time phase analyze the quotes.
2. There are thirty-eight internal indicators.
3. Thirty-nine image object.
4. There are four Zoom modes.
5. Seventeen specialized display indicator styles.

Forex Scalping Strategy

noreply@blogger.com (Ekurnia) — Wed, 21 Oct 2009 03:16:00 +0000

Using Fibonacci Levels for Scalping the Forex Market
This article is part of our guide on how to use scalping tequniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Scalping a strongly trending market is very different from scalping a quiet, tame market where price action is confined in a small range and is going nowhere. In a ranging market scalpers will buy or sell, and wait until the price comes back to where it left, and keep gathering small profits until the prevailing range pattern is eliminated. When trading a trending market, however, we must be careful to ensure that our orders follow the established trend. Counter-trend scalping is also possible, but since the preferred strategy of most successful traders is trend following, we’ll concentrate our attention on using fibonacci extensions in a trend following method in this article.

High volatility requires a strict approach to realizing both losses and profits. A scalper who is trading in a tame, range-bound market can be a bit more relaxed and arbitrary about his risk controls (they must still be applied with discipline, but not in the robotic manner which must be applied in trending markets), because the market is not expected to make sharp movements due to fewer market participants and a smaller amount of liquidity (not to mention that there is no news catalyst for strong price movements.) But a trend scalper must deal with such conditions at all times.

Trend Following Method
In this section we’ll discuss the use of the Fibonacci extension levels for the determination of trade direction while scalping trending markets. Scalping in trends can be difficult, because of the size of the sudden fluctuations, and the lack of clarity (at least in the short term) with respect to the eventual destination of the price. The Fibonacci extension levels are very useful in analyzing trends in all cases, and scalping is no exception to the rule

Our aim in using this indicator is identifying levels where the price may rebound. For drawing the extension, we’ll identify the beginning and end of the price movement which we expect to be extended, so to speak, in order that a new trend is created. In the 5-minute chart of the USDCHF pair, we have identified a sudden and sharp movement beginning at around 4 am on 23rd July, and decided to draw its extension after the first red bar where its momentum is temporarily checked. Upon drawing the extension in the indicated area, we notice the 61.8, 100, and 161.8 extensions of the first movement.

Careful examination of the chart above shows us not only that the price rebounded several times at the extension levels of the indicator, but also that these levels served as strong attractors pulling the price towards themselves. The 100 percent extension level, for instance, provided a support which prevented the price from “falling through” twice, as observed. And the other two levels similarly created performance bars for the trend which, once broken, created further momentum for the trend.

Trading against a trend is dangerous, and the risk of sudden reversals is no less dangerous for scalpers. As such we need a tool which will help us identify the general direction of the trend, so that even if we suffer some losses, eventually our gains will justify our trading activity. The Fibonacci extension level is a great tool for this purpose since it allows us to guess with a reasonable degree of accuracy the main momentum of the price action. In the above example, we’d be scalping the market by buying at the red arrows shown on the chart. If the price returned to the resistance or support levels indicated by the extension level, we’d stop trading for a while and await the market action to present some clarity (is the trend reversing?) But as long as the trend is intact our strategy would involve scalping between the extension levels to accumulate profits.

---- by; forextraders.com ----

Forex Trading Strategy

noreply@blogger.com (Ekurnia) — Fri, 16 Oct 2009 10:05:00 +0000

3 Simple Breakout Strategies You Can Use When Trading Forex
This article describes three different ways you can trade forex breakouts.
Trading breakouts is one of the most popular methods of trading the forex markets because you often get large moves after a period of consolidation. So with that in mind, I've listed below three basic strategies you can use to trade these breakouts.

The first of which is based on technical analysis, and in particular the Bollinger Bands indicator. Bollinger Bands are envelopes based on a moving average and a standard deviation and are most useful in showing areas of support and resistance through the two outer lines of the envelope.

Therefore when the price breaks out of either the upper or lower limit, this very often is a strong indication that a breakout is about to take place in the same direction. It's particularly the case after a period of consolidation where the bandwidth of the Bollinger Bands has narrowed out. For greater success you can use the breaching of one of the outer lines to gain your attention, and then wait for a pullback to either the EMA (5) or EMA (20), for example, for a good entry point.

The second method you can use to trade breakouts is also based on technical analysis and involves various Exponential Moving Averages, or EMA's for short. This is a method I have developed over the years that makes use of the 5, 20 and 50 period EMA's (you can also use the 100 or 200 period EMA as well).

What you do is wait until the price, along with the 5, 20 and 50 period EMA's have all flattened out and are all very close to each other. Then you simply wait for a strong breakout from this narrow range and take a position close to the EMA (5) when the breakout takes place. This can be very rewarding when you catch a good breakout, particular when you use longer time frames.

The final method is based entirely on price and uses no technical indicators at all. It's based on the fact that the price does not stay in the same range forever and will at some point break out of the current trading range.

I have to admit I don't use this method myself but there are various ways you can trade this way. Some traders like to use the previous day's upper and lower price range, and trade any breakouts of this range the following day. Similarly some traders wait until a very narrow price range has formed and then wait for a breakout to occur.

So overall there are various different ways you can trade breakouts, all of which have their merits. Despite being quite basic methods, they can be extremely lucrative because the price often moves strongly in one direction or the other after a sustained period of consolidation.

Forex Trading Strategy

noreply@blogger.com (Ekurnia) — Mon, 12 Oct 2009 01:04:00 +0000

Strategy for GBP/JPY
I’m going to explain the strategy I use to trade GJ and I’m going to be posting my weekly/daily analysis of this pair. I don’t use anything fancy, I use some basic stuff that most traders use and some common sense

The indicators I use are:
* Fibonacci retracement levels
* Trendlines/Channels
* 5 period simple MA
* Candlestick patterns
* Support/Resistance levels
* Momentum

As you can see it’s all simple and basic stuff except maybe for the fibonacci retracement, because every trader could use it differently. If you have any doubts about any of the stuff I use, either ask or just do a simple google search and you’ll find plenty of information about them.

Using the fibonacci retracement on different timeframes (1H, 4H, Daily, Weekly) is very important, because sometimes some of them overlap and that tells us where we might find strong support/resistance. I’ll post some examples.
If you have been following my posts on Auslanco’s thread, you will know that we use the 5SMA for a good entry point when a retracement occurs.
Most of the time, I trade based on the 4H chart, but I keep an eye on the daily chart and sometimes the weekly chart. I use the 1H chart for a good entry point. Any TF less than 1H has a lot of noise and it is very risky trading GJ on very small TF’s.

Using stop-loss, I always wait for my trade to go in my direction for about 50-100 pips before I move my SL and lock in a very small # of pips (10) and then just let it run until it reaches my TP, this way I don’t let a winning trade turn into a losing one, and if my SL gets hit, no worries coz +10 is way better than anything negative

Momentum & 5sma
Before using the Momentum indicator and 5sma, you must have auslanco’s QQE indicator. I’ll explain how to catch a retracement in this following example:
When QQE 4h is crossed upwards, and QQE 1hr is crossed upwards, and the Momentum at the beginning of the next 1h candle is pointing downwards, price will usually retrace to 1hr 5sma, it’s that simple.

---- by; KarmoStaji -------

Forex Trading Strategy

noreply@blogger.com (Ekurnia) — Wed, 07 Oct 2009 01:57:00 +0000

Oscillator and Momentum Indicator
Forex technical analysis uses mathematically derived indices to decide when to enter or exit a trade and has become by far the most common strategy among forex investors.
Investors in today's forex market can count on a variety of analysis tools to help them better guide their decisions and develop a consistent and systematic strategy, therefore minimizing impulsive decisions that can be devastating in this volatile market.

Such indices are mainly divided into two separate groups, oscillators and momentum indicators: the former try to predict a future change in trend, while the latter help assessing whether a trend that has already started will either continue or revert.

Oscillators in Forex

Some of the most widely used oscillators include:

* Stochastics: an oscillator that indicates whether the market is currently in an 'overbought' or 'oversold' phase. When the stochastics graph goes beyond a certain threshold, investors' reactions are usually to sell (overbought) or buy (oversold).
* Parabolic SAR: helps identifying the end of a trend in a timely fashion on a bearish or bullish market. It is plotted on the candlestick graph, and where the index crosses the candlestick graph itself, this is generally a seen as a symptom of a trend change.
* Relative Strength Index (RSI): similarly to stochastics, indicates the strength of the current trend on a scale from 0 to 100 — 0 to 50 for bearish, 50 to 100 for bullish.

Momentum Indicators in Forex

Some of the most common momentum (or lagging) indicators include:

* Simple Moving Average: average value of the last n candlesticks, where n is a configurable parameter.
* Exponential Moving Averages: similar to the simple moving average, but the most recent data has a much stronger influence over the value of the index, which means this indicator is much more sensitive to changes in value.

Combining Two or More Indices to Find Your Strategy

The very high number of indices available makes it unpractical to build an investing strategy based on the majority of them: forex investors are therefore required to pick and choose the tools that seem best suited to their own needs and bring the best results, and to figure out how to combine them all to create a profitable investing strategy.

An example of combining two indices to obtain a more accurate trend prediction is the so-called "moving average crossover": exploiting the characteristics of simple and exponential moving average — one highly subject to recent changes in trend, the other more equally weighted on previous data — it is possible to plot both on the same chart and decide to enter or exit a trade when the two cross each other.
Beyond Indexes: Fibonacci, Pivot Points, Elliott Waves

Technical analysis tools are not confined to indices only. There is a wealth of other mathematically or statistically derived factors, patterns, trend lines among which Fibonacci series, pivot points and Elliott wave theory applied to forex are just a few, valid ones.

Some of them — particularly those linked to the Fibonacci sequence — are speculated to hold true only because of their very widespread use by investors of all the world, which ends up influencing the market itself.
Technical Analysis vs. Fundamental Analysis

Even those who believe to have found the perfect combination of oscillators and indicators that can reliably anticipate market movements should never ignore fundamental analysis, the technique consisting in trading based of market news, which is often preponderating in short term trades: the right forex strategy is a wise mix that constantly keeps the two in consideration, without ignoring or underestimating their capabilities.

Forex ; Elder-rays

noreply@blogger.com (Ekurnia) — Sun, 04 Oct 2009 15:33:00 +0000

Elder-ray system, Developed in 1989, The Elder-rays use exponential moving average indicator, or EMA, the preferable period of which is 13 as a tracing indicator. The oscillators reflect the bears' and bulls' power.

The Elder-rays include the characteristics of trend following indicators and oscillators. Three charts for placing the Elder-rays are used: on one side - the price chart and EMA are placed, on two other sides - bulls' power oscillator, or just Bulls Power, and bears' power oscillator, or just Bears Power.

Elder-rays can be used either individually or in bunch with various other tools. While using them individually, it's important to remember that the EMA slope defines the trend movement, and position should be opened in its direction.
The Elder Ray is a very precise and effective means of highlighting discrepancies between bull and bear power and prices and helping to choose right time for the best trading opportunities.

Bulls and bears power oscillators are used for determining the moment for opening or closing of positions. One should open the following positions:

It's better to sell when:
1. The Bulls Power oscillator remains positive, but declines step by step;
2. The Bulls Power oscillator declines leaving the Bears' discrepancy;
3. The last bottom of the Bulls Power oscillator is lower than the previous one;
4. There is a decreasing trend defined with the EMA fluctuations

The Elder Ray index actually consists of two indicators:
"Bull Power" (Daily High - n period moving average) and
"Bear Power" (Daily Low - n period moving average).

It's better to purchase when:
1. The Bears Power oscillator is negative, but still growing;
2. The Bears Power oscillator increases after the Bulls discrepancy;
3. The last peak of the Bulls Power oscillator is higher than the previous one;
4. There is an increasing trend defined with the EMA fluctuations

It is better to keep back at the positive values of the Bears Power oscillator and not to open short positions when the Bulls Power oscillator is negative. The best time for trading is discrepancy between the Bulls and Bears Power and prices.
In fact, the Elder Ray index includes 2 indicators: "Bear Power" (Daily Low - n period moving average) and "Bull Power" (Daily High - n period moving average)/

Bear Power is used to calculate the potential for the price to fall under the moving average. And Bull Power is used for calculating the potential for the price to grow over the moving average. There are short positions when the Bull Power is more than zero and there is a bearish discrepancy. And Long positions are assumed when the Bear Power remains under zero and there is a bullish discrepancy.

Forex Trading System

noreply@blogger.com (Ekurnia) — Sun, 27 Sep 2009 03:10:00 +0000

Profit With Forex Opening Range Breakouts
Many forex traders like to incorporate forex breakouts into their overall trading strategy because they can be extremely profitable. When a price finally breaks out of a tight trading range, many traders tend to jump on board and carry the price further away from this trading range, which is why this strategy is so effective.

Focus on Opening Range Breakouts

One of the most popular ways of trading these breakouts is by focusing specifically on overnight / opening range breakouts. By that I mean the opening hours of the new trading day. I myself tend to focus on the hours between 00.00 and 06.00 GMT and predominantly concentrate on the British and European-based pairs such as the GBP/USD and EUR/USD pairs, for instance.

These hours are notoriously quiet and yet these few hours before the busy opening session set the tone for the rest of the day. You will often find that the price will stay confined in a fairly tight range during these six hours or so and when the UK and European markets open, the price will trend significantly in one direction and will often break strongly out of this initial trading range.

Therefore a profitable strategy is to open a long position when the high point of this opening range is breached and open a short position when the low point is breached. There are various ways you can put this system into practice. You can either open a position as soon as the price crosses the line or as soon as the breakout candle closes, or you can wait for a pull-back and then jump on board if the price continues to move in the direction of the initial breakout.

All of these methods tend to work quite well and there is a logical reason why this is the case. The fact is that every currency pair has an average daily range, i.e the average number of points between the high and low points for a given trading day. So on those days where the opening range is very narrow, this initial range will be a mere fraction of the overall average, so therefore you can expect some big price moves to occur during the rest of the day either above or below the overnight range.

Related Articles > Free Download Forex E-book > BigBen Strategy

Forex Trading Indicator

noreply@blogger.com (Ekurnia) — Sun, 27 Sep 2009 02:31:00 +0000

FOREX INDICATOR's III

Forex Forecasting Elliott wafe

Forex Trendlines Support and Resistance

Forex Chart ; Symetrical Triangle pattern

Forex ; Chalkin money flow

Forex ; True and false trendline breakout

Forex chandle momentum oscillator

Forex Aroon Oscillator

Forex Trading System - ADX Indicator

Forex ; another Scalping Strategy

Forex Stochastic Momentum Index

Forex Detrended Price Oscillator

Forex Volume Indicator

Forex : Most Volatile Active Traded

Forex ; Price Envelopes

Forex ; Williams Oscillator

Forex CCI Divergence Breakout

Forex H4 Bolinger Bands

Forex ; Statiscal Trading getting edge

Forex ; EMA WMA Strategy

Forex > Chart's > Scalping Strategy

Forex - Killer Day Trading Strategy

Forex - Slingshot Reversal Strategy

my Trading Indicator - Simple System....( 1 )

noreply@blogger.com (Ekurnia) — Sat, 19 Sep 2009 18:30:00 +0000

Forex Trading with Elliott Wave

noreply@blogger.com (Ekurnia) — Sat, 19 Sep 2009 18:16:00 +0000

The Elliott Wave Principle, developed by Ralph Nelson Elliott in 1930s and 40s, is a powerful analytical tool that is still being used for forecasting stock market behavior. The basic concept of this Principle is that stock market prices rise and fall in distinct patterns and that those patterns can be linked together into waves.

Since it was first published, this classic guide to the Elliott Wave Principle has acquired a cult status globally among technical analysts. With subsequent new editions, the contributors have refined and enhanced the message of the original publication while retaining all the predictions from past editions.

Elliott Wave Counts may be summed up as follows:

Wave 1 is normally the most weak of the impulse waves. It is based on short covering of the bears from a previous move. The next Wave is created at the end of the first Wave and after the currency pair is sold off.

Wave 2 comes to an end when the market fails to make new lows.

Wave 3 is the most lengthy and most strong of the impulse waves. This leads to strong currency buying or selling in the trend's direction that usually starts slowly, but tends to accelerate as it breaks to new highs above the top of Wave 1.

A correction will occur, especially after a strong trend. Traders will then start making profits, paving the way for Wave 4.

Again, the currency pair will rally ushering in the Wave 5 rally. This Wave is usually supported by the retail traders and not institutional buyers and tends to lack the momentum generated in the third
images
This is in a nutshell Elliott Wave analysis can be deployed to enhance traders forex swing trade evaluations. A closer look into the Elliott Wave theory and other strategies could be useful for traders and enable them to use these as tools for increasing their forex swing trade opportunities.

When evaluating the Forex market for swing trade opportunities, the focus should be placed on forecasting directional changes for a given currency pair, relying on technical analysis. In this analysis there are different indicators. The most reliable tool used to predict Forex market swings is Elliott Wave analysis that can be used to identify trends and countertrends, continuation and exhaustion of trends and also to evaluate the potential of pricing targets of a trend.

Elliott strongly believed that the market's movement was a direct result of the mass psychology of the time and that the stock market is a fractal that is an object similar in shape, but at different scales. An apt example of a natural fractal is a stalk of broccoli. The stalk and individual branches look strikingly the same because the branches are smaller in scale. According to Elliott this mass psychological move resembles the herding tendency in human beings.

Summing up, the market price actions are not the cause of economic growth or slow down, but the reflection of the mass psychology of investors. If the mood of the investing public is upbeat then a bull market ensues. This is counter to what most individual perceive, that is because there is a bull market the mood of the investing public is upbeat

---- by;Forex Cycle ----

Forex - RSI and Divergence

noreply@blogger.com (Ekurnia) — Mon, 14 Sep 2009 17:22:00 +0000

Technical indicators are constructed by manipulating some aspect of price such as a moving average of prices over a 10 day period. The Relative Strength Indicator (RSI) tries to anticipate a change in the trend.

This is a leading indicator of a trend change. The results are used to deliver messages about the strength of the market. It is called an oscillator because the indicator readings are converted into percentage results which range from 0% to 100%. The position of each day’s indicator reading gives the trader an indication of the strength, or weakness, of the existing price trend.

The RSI is calculated by monitoring changes in the closing prices of the stock. The number of higher closes is compared to the number of lower closes for the selected period.

The RSI compares the internal strength of a stock by looking at the average of the upwards price changes and comparing it with the average of the downward price changes.

The results are expressed as a percentage, providing the upper and lower boundaries. The plotted results oscillate between these two levels and give traders information about the speed and acceleration of the changes.

Traders use either a 14, 9, or 7 day period in the Relative Strength Calculation.
In this sense the RSI is very similar to a stochastic and uses similar principles. Where the stochastic quantifies the ability of the market to close near the high or the low of the day, the RSI quantifies the strength of the way the market moves higher, or lower. The over-bought and over-sold signals are the same as any oscillator, although with an RSI they are traditionally set at 70% and 30%.
The most significant trading signal delivered by any oscillator style indicator is a divergence signal. This sounds complicated but it just means that the significant valley patterns shown by the RSI trend in the opposite direction to the significant valley patterns as shown by the price line chart. A valley is created by two distinct lows that each precede a rally from a downtrend. This builds a valley in the price chart. The lows of these valleys are joined with a short trend line as shown.
The corresponding lows on the RSI indicator are also joined by a short trend line. When the RSI line slopes differently from the price chart line, a divergence occurs. When these valleys form below the 30% area on the RSI, or form peaks above the 70% level, they are most reliable. Oscillator activity between these levels is not used to find divergence signals.
signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.

signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.
RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change. The divergence signal may appear just as the trend changes, as in the chart extract, or several weeks before. Traders use the RSI divergence as an early warning signal to enable them to prepare for a trend change.
When the RSI and price chart lines move in the same way we get a confirming signal that the existing price trend is unlikely to change. These signals are not very important because we can get the same information from just looking at the chart.
The RSI is one of the very few oscillator style indicators where trend lines and support and resistance lines can be effectively used. These are used as signals to confirm the trend shown on the price chart. When other chart patterns suggest action, then the RSI trend line might also confirm this. When the RSI is used like this it does not give the trader any distinct advantage.

Forex Schaff Scalping Strategy

noreply@blogger.com (Ekurnia) — Mon, 07 Sep 2009 06:53:00 +0000

here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.

However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.

Here goes my Scalping method:

Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping

Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend

Go Short When:
1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75 3. MACD is in downtrend 4. Parabolic is in downtrend Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.

Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.

Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)

Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.

Once again, good luck with your trades and keep making pips
Here is another example of Scalping with Schaff Trend ...

Note that I've used 10 and 90 as the Trend Changing readings for Schaff. Also note that DMI (along with ADX) can also be used as an additional confirmation.

---- SBJ -- Asherewt -- FxstrategyRvld ---

Forex Strategy ; Two Timeframes ("TC Experts")

noreply@blogger.com (Ekurnia) — Wed, 02 Sep 2009 15:50:00 +0000

This strategy uses the TC Expert indicator in Two Timeframes. The 1-Hour TC Expert is used to determines trend. The TC Expert on a 10-Minute Chart is used for Trade Entry and Exit.
When the 1-Hour TC Expert is bullish, for example, then Trend is UP, and the strategy will buy when the 10-Minute TC Expert turns bullish. The strategy exits a buy trade when the 10-minute Expert turns bearish, or when price closes below a Gann Hi/Lo line that is used as a trailing stop.
Indicators used in this strategy & their inputs:
1-Hour Chart: TC Expert (7,18,36,7)
10-Minute Chart: TC Expert (7,18,36,7)
Gann Hi/Lo Activator - Gann HiLoA(7)

Chart 1. The TC Expert is composed of two separate indicators.
Trend
Trend is the direction of the TC Expert on the 1-Hour Chart. When the Schaff TC Expert is applied to the chart, two indicators appear, both a black Schaff Trend Cycle (‘STC’) and a green Schaff Trend RSI (‘STR’).

Chart 2. Trend changes are highlighted by the the red and blue vertical lines, after which the TC Expert indicator turns bearish and bullish, respectively.
Trend is UP when the TC Expert is bullish. The TC Expert is bullish when both the black STC and the green STR are rising above the lower red-dotted Buy line shown in Chart 2.
Trend is DOWN when the TC Expert is bearish. The TC Expert is bearish when both the black STC and the green STR are falling below the upper red-dotted Sell Line.
Trade Entry
The strategy uses the TC Expert and a Gann HiLo line on a 10-Minute Chart to time when to enter a trade. When Trend is UP the strategy will buy when price is above the Gann HiLo line and the 10-Minute TC Expert turns bullish. If Trend is DOWN the strategy sells when price is below the 10-Minute Gann HiLo line and the 10-Minute TC Expert turns bearish then the strategy sells.

Chart 3. With a DOWN Trend in place, a Sell Entry occurs on the 10-Minute Chart at 9:20 at 2.0387.
TC Expert Strategy: Buy Entry and Sell Entry rules:
BUY when 1-Hour Trend is UP and
1. The 10-Minute TC Expert turns bullish and
2. Price is above the Gann HiLo line
SELL when 1-Hour Trend is DOWN and
1. The 10-Minute TC Expert turns bearish and
2. Price is below the Gann HiLo line
Trade Exit
Various exit tactics are used, depending on how price could develop.
Trend Indicator Changes Direction
If the 1-Hour Trend changes direction then exit the trade.
Trade Entry Indicator Changes Direction
If the 10-Minute TC Expert changes direction then exit the trade.
Price Closes beyond Trailing Stop
The Gann HiLo line is used as a Trailing Stop on the 10-Minute Chart. If the strategy position is long, then exit if the 10-Minute price closes below the Gann HiLo. If the strategy is short, then exit if price closes above the Gann HiLo.
The chart below follows the GBPUSD trade shown in Chart 3.

Chart 4. The sell position exits when the 10-Minute TC Expert turns bullish.
The sell trade entered on October 3 at 9:20, at 2.0387, exited at 16:40, at 2.0313, when the 10-Minute TC Expert turned bullish (with both the STC and STR rising above 25). The result is a profit of 74 pips.
TC Expert Strategy: Buy Exit and Sell Exit rules:
Exit a BUY Position if one of the following situations occur
1. Trend changes to DOWN, or
2. The 10-Minute TC Expert turns Bearish, or
3. Price closes below the Gann HiLo on the 10-Minute Chart.
Exit a SELL Position if one of the following situations occur
1. Trend changes to UP or
2. The 10-Minute TC Expert turns Bullish or
3. Price closes above the Gann HiLo on the 10-Minute Chart.
Initial Stop Loss Order: Controls trade risk. Establish before the trade.

--- by : FX Strategy --------

Forex ; Volume Indicator

noreply@blogger.com (Ekurnia) — Sun, 30 Aug 2009 16:10:00 +0000

Trading with Volume indicator offers the following features:
Volume confirms the strength of a trend or suggests about its weakness.
A rising volume indicates rising interest among traders, while a falling volume suggests decline in interest.
Extreme Volume readings — Climax Volume often highlight price reversals.
Points where market trades on high volume are the points of strong support and resistance.
All various kinds of breakouts and market spikes can be validated or voided with a help of Volume indicator.
Details
Why Volume
Volume is the second most valuable data after the price itself.
Large volume signifies that there is large number of market participants involved, including financial institutions. The last ones bring the highest turnover to the market, and if they are trading, it means the interest to the price at certain point and/or to the trend overall is high.
Small volume tells that there are very little participants in the market, neither buyers no sellers have any significant interest in the price. In addition, no financial institutions will be involved, thus a market is going to be moved only by individual traders and so the move will be weak.
Volume and Trend
Volume helps to learn about the health of a trend.
An uptrend is strong and healthy if Volume increases as price moves with the trend and decreases when price goes counter trend (correction periods).
When price is going up and volume is decreasing, it tells traders that a trend is unlikely to continue. Price may still attempt to increase at a slower pace, but once sellers get the grip on it (which will be signified by an increase in volume on a down candle), the price will fall.
A downtrend is strong and healthy if volume increases as price moves lower and decreases when it begins retracing upwards.
When price is falling and volume is decreasing, the downtrend is unlikely to continue. Price will either continue to decrease, but at a slower pace or start to rise.
Volume and Reversals
To understand the nature of spike in volume before a trend reversal, traders need to know how the data for volume indicator is gathered in Forex.
Forex volume cannot be measured precisely as it is done, for example, in Equity market, where every share traded equals 1 volume, and selling 200 shares means 200 in volume. Forex by nature cannot count how many contracts and what sizes of contracts were traded at any given time, because the market is wide and decentralized. Therefore to count volume in Forex the number of ticks/changes in price is used. 1 tick measures 1 volume. As it moves up and down volume adds up.
When volume rises, it means lots of participants are actively selling and buying currencies. When volume spikes at certain price level, traders know that there was lots of interest shown by traders to that price level. If there is a lot of interest, it means the level is an important one.
This simple observation of a volume indicator allows identify important Support and Resistance levels, which would certainly play significant role in the future.
Where Volume spikes are distinctively extreme (larger than any historical spikes around) — Climax Volume — traders should look for clues from the price itself. Candles that have a narrow range, spinning tops/bottoms, dojies, stars, other candles with extremely large tails have highest chances to become the price turning points.
Single volume spikes only bring price to a halt. A lot of stand-alone average volume spikes occur during fundamental economic announcements on daily basis. News can cause spike in volume for a single day and then volume disappears again.
Reversals, however, happen not over one day but a series of days. If higher than average volume stays on the market for several to many days a huge volume spike — volume climax — will crown a point of market reversal.

Volume and Breakouts
Volume indicator helps to validate all kinds of breakouts.
When market is consolidating on a low volume, a sudden pick up in volume would signify that a breakout is due.
Breakout occurring on rising volume is a valid breakout, while a breakout that caused no interest from traders as it is happening on a low volume is more likely a false one.
Trend lines and other breakouts are validated or voided the same way.

------ SBJ ------ Fx Indicators -------

Forex “Detrended Price Oscillator”

noreply@blogger.com (Ekurnia) — Fri, 28 Aug 2009 02:23:00 +0000

What is DPO indicator about
Detrended Price Oscillator (DPO) is an indicator for eliminating trends in prices.
DPO allows to more easily identify cycles and, based on that, overbought/oversold levels.
Detrended Price Oscillator (DPO) indicator is used to isolate short-term cycles, from long-term cycles.
By eliminating long term trends, DPO helps to focus on shorter price moves/cycles, thus again making it easier to spot an overbought/oversold level.
How DPO indicator does it?
Detrended Price Oscillator compares closing price to a prior moving average, eliminating all cycles that are longer than the moving average.
Standard DPO indicator setting is 20-period.
The indicator oscillates around zero level, and, if to take 20-day DPO, it'll remove cycles longer than 20 days.
How to trade with DPO indicator

DPO trading During Trending Markets
Identify a trend and trade in the direction of the main trend.
Buy when DPO hits zero from above or dips below zero for a while and then goes up above zero.
Sell when DPO hits zero level from below or even crosses above zero for a while and then turns back below zero.
DPO trading During Ranging Markets
Identify overbought and oversold levels individual for every currency pair based on the past price behavior.
Buy after DPO dips below an oversold zone and then exits from it closing above the oversold zone.
Sell rafte Detrended Price Oscillator enters an overbought zone and then exits from it and closes below the overbought zone.

------ Fx Indicator -----

Earn Monthly Cash from "Cashbackforex"

noreply@blogger.com (Ekurnia) — Sun, 23 Aug 2009 17:55:00 +0000

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Commissions are paid to you on a monthly basis, by the 25th of the month after the month commissions are generated. Commissions generated on brokerage accounts depend upon the currency volume individuals trade, therefore large accounts tend to generate larger commissions. Other factors include the rate at which we contract with various brokers. You must supply the correct payment information in your profile to allow us to send your payments.
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----- SBJ --- cashbackforex ----------

Forex Stochastic Momentum Index

noreply@blogger.com (Ekurnia) — Sun, 23 Aug 2009 17:49:00 +0000

Stochastic Momentum Index
SMI was created by William Blau in January 1993 issue of Technical Analysis of Stocks & Commodities. The SMI demonstrates where the close is relative to the middle of the last high/low range, in comparison to the close relative to the recent low/high with the Stochastic Oscillator, which resembles the Stochastic Momentum Index.
It's an oscillator that shifts between -100 and +100 and can be a bit less inconstant than an equal period Stochastic Oscillator. The oscillator consists of 2 lines - the moving average of the SMI (red) and the SMI (blue). The SMI will be negative if the close is less than the middle point of the range. The SMI will be positive if the close is greater than the middle point of the range.
The SMI interpretation is in fact the same as that of the Stochastic Oscillator. The most ordinary way of using it is to trade from is to sell when the SMI rises above +40 and then returns to the point under that level and to purchase at the moment when the SMI decreases under -40 and then shifts back above it. Another trading sign is to purchase when the SMI shifts above the moving average, and sell when the SMI decreases below the moving average.
Usually before basing any trades on strict oversold or overbought levels it is better to qualify the trendiness of the market using an indicator, for example, R-Squared. Levels should provide the most effective results if indicators provide a non-trending market trades based on strict oversold or overbought.

Forex Scalping Strategy

noreply@blogger.com (Ekurnia) — Sat, 22 Aug 2009 17:58:00 +0000

Urban Towers Scalping Strategy
Indicators : Blue MA
Time Frame : 15min

Description : During a trend, when the market retraces to the blue MA with at least 3 consecutive lower highs (3 towers), we enter at the break of the high of the last high. Ok let me explain in details one by one.

Steps to Follow :

- Price is above the blue MA trend is up
- Price is below the blue MA trend is down
- Market retraces towards the blue MA with 3 consecutive lower highs (in a uptrend)
- At the break of the high of the last candle, we enter long (in a uptrend)

Trade Example

Alright, what do we know right off the bat by looking at this. We know the market is in a uptrend because the market is above the blue MA. The market retraced to the blue line with 3 consecutive lower highs (3 towers) as we can see the red candles above. Next, we entered long at the break of the high of the last retracement candle - which in this case is 3rd tower as we can see above

Now here is a example of a “no good trade”.
this example, the market was in a uptrend, it did a 1, 2, 3 tower retrace but it never had a breakout on the high of the 3rd tower, in fact, the market continued down and changed to a down trend. This example is to show that this strategy helps avoid many fake trades.

--- SBJ ---- by ; Navin, UrbanFx ------

Forex Trading System - ADX Indicator

noreply@blogger.com (Ekurnia) — Fri, 14 Aug 2009 08:19:00 +0000

Forex ADX
Trading with ADX indicator involves the following signals:
ADX staying below 20 level — there is no trend or the trend is weak.
ADX moving above 20 level — trend is strong.
ADX passing 40 level — trend is extreme.
ADX value rising — trend is going stronger, falling — trend is weakening.
+DI stays on top of -DI — uptrend is in place.
-DI stays on top of +DI — downtrend is in place.
Two DI cross — trend is changing.
Details
The Average Directional Index (ADX) depicts a presence or absence of a trend. ADX advices on the strength of the dominant forces that move market prices here and now.
In other words, ADX advices on trend tendencies: whether the trend is going to continue and strengthen or it is about to lose its positions.
The author of Average Directional Index J. Welles Wilder considers his ADX indicator as a primary achievement; and only because signals given by ADX are not an easy to take a grasp of from the first look, many Forex traders avoid using ADX in favor of more visually comprehensive indicators.
How to interpret ADX
ADX indicator has 2 lines: ADX itself (white), +DI (green) and -DI (red).
Traders then need to draw a horizontal line at the level of 20.
All readings of ADX which are below 20 suggest a weak and unclear trend, while readings above 20 indicate that a trend has picked up.
That is, basically, the simplest explanation of the purpose of ADX. ADX allows Forex traders to determine whether the trend is strong or weak and thus choose and appropriate strategy to trade with: a trend following strategy or a strategy fit to consolidation market periods with no significant price changes.
There is also additional line to be added to ADX indicator window - at 40 level.

How to trade with ADX
Trading with ADX looks as follows:
If ADX is traded below 20 - there is no trend or the trend is weak, thus a non-trend-following strategies should be used, otherwise losses may occur as a result of false signals and whip-saws taking place. An example of non-trend-following method is channel trading.
If ADX is traded above 20 but below 40, it is time to apply trend following methods. An example would be: Forex trading Moving averages or or trading with Parabolic SAR indicator.
When ADX reaches 40 level, it suggests an overbought/oversold (depending on the trend) situation on the market and it is time to protect some profits of at least move Stop loss order to a break even.
When ADX passes 40 level, it is a good time to begin collecting profits gradually scaling out of the trades on rallies and sell-offs and protecting remaining positions with trailing stops.
ADX -/+ DI lines are used for spotting entry signals. All -/+ DI crossovers are disregarded while ADX remains below 20. Once ADX peaks above 20 a buy signal occur when +DI (green) crosses upwards and above -DI (red). A sell signal will be the opposite: -DI would cross +DI downwards.
If after a newly created signal another opposite crossover happens within a short period of time, the original signal should be disregarded and position protected soon or closed.
ADX indicator is never traded alone, but rather in combination with other indicators and tools. ADX indicator most of the time gives much later signals comparing to faster reacting moving averages crossover or Stochastic, for example, however, reliability of ADX indicator is much higher than for other indicators in traders' toolkit, which makes it a valuable tool for many Forex traders.
And just one more idea to test out:
When ADX rises above 20 for the first time and then goes flat for some time, there is believed to be a new trend being born and the reason for ADX being currently flat is because market reacts to this new trend formation by making first initial correction. During this correction it is a good time to initiate new orders.

Forex Aroon Oscillator

noreply@blogger.com (Ekurnia) — Tue, 11 Aug 2009 01:42:00 +0000

Trading with Aroon Oscillator involves the following signals:
Aroon Oscillator line above the zero — suggestion of a bullish market.
Aroon Oscillator line below zero — a bearish market.
The further the Oscillator line is from Zero level, the stronger the trend.
When values are near Zero line, the market is trending nowhere.
Details
The idea behind Aroon Oscillator
Aroon oscillator is based on Aroon Indicator. Aroon Oscillator is a trend-following indicator that illustrates the strength of a current trend and its potentials to last.
How to interpret Aroon indicator
An oscillator that oscillate between -100 and 100.
It oscillates around zero line, defining times when AroonUp and AroonDown lines of Aroon Indicator cross each other.
Aroon Oscillator Formula
Aroon Oscillator = AroonUp - AroonDown.

Aroon Forex charts example

Conclusion
The positive value of Aroon Oscillator indicates an uptrend, while the negative value indicates a downtrend. The higher the absolute value of Aroon Oscillator, the stronger the trend.

>>>>> See Aroon Indicator...Click here >>>>>>

--- SBJ ---- by:FxIndicator ------

Forex Chande Momentum Oscillator

noreply@blogger.com (Ekurnia) — Sat, 08 Aug 2009 15:18:00 +0000

The Chande momentum oscillator is calculated within preset time interval by the following formulas:
diff = Pi - Pi-1,
where Pi -the price (usually closing price) of the current period;
Pi-1 -the price (usually closing price) of the previous period;
If diff > 0, then cmo1i = diff, cmo2i = 0.
If diff < cmo2i =" -diff," cmo1i =" 0." sum1 =" Sum(cmo1," sum2 =" Sum(cmo2," cmo =" ((sum1-sum2)/(sum1+sum2))" style="font-style: italic;">The CMO Oscillator basic methods of using are
- As the indicator of tend. The sell operations are performed when CMO of the short period crosses the CMO of the long period. Purchase operations are performed when CMO of the long period crosses the CMO of the short period.
- The standard method of CMO interpretation is looking for overselling/overbuying. Overselling occurs if value is under -5. Overbuying occurs when the value overcomes +50 point. The aforesaid figures are similar to the 70/30 level of RSI Indicator.

The Chande Momentum indicator is a momentum oscillator. This oscillator can be used as a trading signal in two various ways.
The first method is to purchase when the oscillator crosses above its MA line and to sell when the oscillator crosses below its MA line. The second is to measure overbought or oversold levels for a certain currency.
The Chande Momentum indicator is built using the sum over a certain period of price changes on up days, sum (high-low) up, and the sum over the same period of prices on down days, sum (high-low), down. An exponential this line's moving average is afterwards overlaid upon the oscillator as a signal line. The oscillator needs two parameters: the period for the moving average and the period when the price ranges will be summarized.

----- SBJ ---- by; ForexRealm ------

Forex Trading Strategy

noreply@blogger.com (Ekurnia) — Fri, 31 Jul 2009 11:39:00 +0000

Forex ; True and false Trendline Breakouts
When price breaks through a trend line, how can we tell whether it is a true or a false break? Well, we can't tell or predict until we see it later on. But, we can analyze what price has been doing prior to this breakout in order to form our own opinion and bias, and either pay attention to the breakout or disregard it.
We can always go back and look at waves pattern, or simply, whether price was making Lower Lows (LL), Lower Highs(LH), Higher Highs (HH) etc..?

Let's look at the next two screen shots:

(The market was in a downtrend. We drew a trend line connecting first two tops.
Price was obeying the line, but then at some point (where I put a yellow question mark), price breaks the trend line and closes above it.
How can we know at that moment whether we could trust this breakout or not?
The simplest and popular method is to wait till price returns back to test the strength of the broken trend line again. Then, if it holds, traders would say that a breakout is confirmed and enter either somewhere near the test point or when price advances through the earlier established breakout mark.
Here is a quick example (I drew the red candles myself to illustrate the point):

After the break of a trend line price returns, tests the line again, finds support and, as a result, goes up. Yellow dotted line indicates the point of entry with a Buy order.
BUT, this kind of re-tests don't happen all the time. Sometimes price would just break the line and advance further without looking back. What to do then?
This is why I like to look back at older data to learn what happened prior to the breakout.
What can we see on the first example (first screen shot above)?
Price was consistently making Lower Lows. But, most importantly, prior to
breaking a trend line, price made another Lower Low, telling us that Sellers were still strong and were able to push the price down. Based on this, we can say that this particular breakout that we were questioning cannot be "trusted". (I use the word "trusted", because whether the breakout was valid or not we will only learn later).
Now, let's look at the next example below:

Let's start form the beginning: price is making Higher Highs and we draw our red trend line.
At some point later the red trend line gets broken. Can we trust it? The answer is "no, we can't", because we still can see a higher high, which means that buyers were still able to push the price higher.

Few candles later price is bottoming out, attempts another up-move, but fails and puts a Lower High this time.
That's nothing else but a trigger that bulls are weakening and either one of the trend lines (solid or dashed in brown) which you'll be able to identify will become the point of truth: if it gets broken - the price is very likely to move lower.

That's it. A simple method, which might help you to judge about most likely outcomes of the trend line breakouts.
Remember, that in the uptrend you need to take into consideration only Swing Highs, in the down trend and for downtrend trend lines - only Swing Lows.

----- SBJ ------- by; Edward Revy & Team ------