Deep in Forex

Increasing The Odds

2010-03-24T17:08:00.001+07:00

As we learned in the last section, the best trading opportunities present themselves just after a breakthrough in price consolidation.Not every consolidation pattern; however, is tradable. There are additional patterns, which significantly increase the odds of the trade following through in the desired direction.The tools, which we present, are: support/resistance trends moving averages.

Recognizing Reversal Signals

2010-03-24T16:25:00.000+07:00

Throw a baseball straight up into air. As the ball approaches the top of its projectile path it will decelerate to a speed of zero, and then reverse downward picking up speed as it approaches the ground.Now imagine yourself drilling into a piece of wood. You suddenly hit a hard spot in the wood at which time bear down with all of your might to overcome the temporary resistance created by the knot

Capitalizing on Fear and Greed

2010-03-24T16:02:00.000+07:00

From the previous section, we determined that price movements result from massive emotions of fear and greed regarding trader's position in the market with a given stock.Recognizing the footprints of greed and fear is not difficult. Recognizing the signs that the rally or decline before it happens is the difficult part of trading. How many times has this situation happened to you: You enter a

Buy on Greed, Sell on Fear

2010-03-24T13:41:00.003+07:00

There are only two forces behind the supply and demand forces that drive a stock's price higher or lower.Those forces are the emotional forces of fear and greed. To illustrate this point we refer to Figure 11. Figure 11Suppose you are a trader observing the bullish rally of Stock XYZ at the beginning of the 3rd bullish green candlestick, and considering an entry.You have witnessed the stock rally

Supply and Demand

2010-03-24T03:07:00.006+07:00

Figure 7A stock's price will adjust to higher or lower prices based strictly on supply and demand principles.In Figure 7 is shown a diagram of a green candlestick. The green color of the candlestick indicates that the closing price of the stock at the end of the day is higher than the opening price at the beginning of the day.As you will see, the candlestick's color and size provide very

Trader's sentiment

2010-03-24T02:44:00.001+07:00

One of the greatest values of the candlestick chart is the ability to read market sentiment regarding a stock. To illustrate consider the following example of a stock traded from the eyes of a Western chart trader and then from the eyes of a candlestick chart trader.Western Chart TraderAt the close of the day's session you observe that the stock closed well above your entry price (2), which

Candlestick vs. Western Charts

2010-03-24T02:24:00.000+07:00

The Western bar chart is made up of four parts components, open, high, low, and close. The vertical bar depicts the high and low of the session, while the left horizontal line represents the open and the right horizontal line represents the close. Figure 1The Japanese Candlestick Line (Figure 2) uses the same data (open, high, low, and close) to create a much more visual graphic to depict what

Introduction & History of Candlestick Charts

2010-03-24T01:50:00.000+07:00

There are two types of ways to analysis the price of a stock, fundamental analysis, and technical analysis. Fundamental analysis is used to gauge the price of a stock based on the fundamental attributes of the stock, such as price/earnings ratio, Return on invest, and associated economic statistics. Technical analysis deals more with the psychological component of trading a stock, and is

The Elliott Wave Principle

2010-03-24T01:39:00.001+07:00

In the 1930s, Ralph Nelson Elliott, a corporate accountant by profession, studied price movements in the financial markets and observed that certain patterns repeat themselves. He offered proof of his discovery by making astonishingly accurate stock market forecasts. What appears random and unrelated, Elliott said, will actually trace out a recognizable pattern once you learn what to look for.

Fundamental Analysis on Forex Trading

2010-03-24T01:21:00.001+07:00

It has become imperative for every forex trader to learn how to predict the price trend and which method or software is the best.When you do forex trading, it is very important to understand the difference between fundamental analysis and technical analysis. A quick explanation of the difference among the two types of analysis is: fundamental analysis focuses on money policy, government policy

Lines of Trends, Support and Resistance

2010-03-24T01:17:00.000+07:00

The trendline. A trendline is a main initial element for the price chart analysis. While the market moves in any direction not along a straight line but along a zigzag, the mutual placement of upper and bottom points of those zigzags permits to plot a line connecting the significant highs (peaks) or the significant lows (troughs) of an appropriate zigzag using technical tools of the computer

Knowing Real Time Forex Quotes

2010-03-15T04:40:00.000+07:00

It is through the Forex market wherein one could get enough information about currency market. If you will study the Forex market, you will be aware about the price change, economic indices, tracking information and swaps and pip. Others will think that it is a must to have software or maybe a trading system; yes this could be right however what is really important is for you to have call outs.

Formulate Your Own Forex Trading Strategy

2010-03-15T04:32:00.002+07:00

The buying and selling of the major global currencies in the Foreign exchange market or the Forex trading business has seen a new high in the last couple of years. Being recognized as the worlds largest cash flow market where the trading volume has multiplied tremendously, this business has acquired rapid pace in the recent years. The result has unfolded in terms of trillions of dollar exchange

Bollinger Bands

2009-08-19T16:21:00.001+07:00

Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The first breakout is often a false move, preceding a strong trend in the opposite direction. A move that starts at one band normally carries through to the other, in a ranging market. A move outside the band indicates that the trend is strong and likely to

5 Things To Read Forex Charts

2009-08-19T13:01:00.003+07:00

Learning the basic skills in forex, such as how to read forex charts, is really important.This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system. By the time you finish this article, you'll learn how to read forex charts, as well as know the pitfalls that can occur when

The .382 Fibonacci Ratio in Forex Trading

2009-08-19T12:53:00.004+07:00

It was mentioned in a past article that Fibonacci forex trading is the basis of many forex trading systems used around the world by profitable forex traders. These systems are all based on the famous Fibonacci ratios (.236, .50, .382, .618, etc.) and each of them can specialize in a particular ratio along with other minor indicators in order to make the pinpointing of the entry and exit levels

Pivot Points in Forex

2009-08-19T12:42:00.006+07:00

It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade. Pivot points, a technique developed by floor traders, help us see where the

Technical Indicators Tutorial

2009-08-15T12:31:00.003+07:00

Price is the primary tool of technical analysis because it reflects everyfactor affecting the value of a market. However, price doesn't produce justtrend lines and basic chart patterns. Analysts have expanded their research farbeyond those basic elements to develop a number of technical indicators thatprovide more insight into price action than what you see on the surface. Youmay be able to see

Most Popular Forex Autopilot Robot

2009-08-13T19:45:00.000+07:00

Looking for information on the Forex Autopilot Robot ? Here is an update report of the experts who should know. If you are interested in Forex, you may have met at least a review of Forex autopilot robot. Forex Autopilot is advertising heavily and this has been done by media companies such as Business Week, CBS and NBC News. Reading the review of the product does not mean that it will start

Why Are Fibonacci Indicators Useful?

2009-08-13T19:44:00.000+07:00

The Fibonacci indicator has been talked about a lot in the realm of Forex trading. While some experts dismiss it as just another exaggerated term, others think that there is credence to this theory. Using the Fibonacci indicator, you can maximize your understanding of currency trends as well as your profit margins in trading. By using the Fibonacci method or Forex trading strategy you can

Fibonacci Method Of Forex Trading

2009-08-13T19:41:00.000+07:00

I'm sure you have heard of the great mathematician Leonardo of Pisa, also known as Leonardo Fibonacci? He was a highly influential Italian who lived almost 800 years ago, so you're probably wondering what Fibonacci has to do with forex trading, I'll get to that shortly. He is most famous for developing the numerical sequence that is widely known as the Fibonacci Numbers or the Fibonacci Sequence

The Stochastic Oscillator Momentum Indicator

2009-08-13T19:34:00.000+07:00

Trending the price moves of stocks helps any investor make the buying and selling decisions they need. Stochastic allows investors the ability to track the move of the market through price and time and is based on the idea that prices moves in waves. The high and the low movements of the stochastic signify the overbought and oversold levels of stocks, and day traders can see that as price trends

The Most Important Indicator Of All

2009-08-13T19:31:00.000+07:00

Most traders have a favorite technical indicator. The one that they have the most confidence in. The one that, from experience, they trust the most. Or the one that they always look at first. For some it is the RSI. Others like the Stochastic or the MACD . Or one of the literally hundreds of other indicators that are available. Well, I love the MACD. And the Stochastic is also a favorite. But

Introduction To Fundamental Analysis

2009-08-13T19:15:00.001+07:00

FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis – technical and fundamental. This article will look at fundamental analysis and how it used in FOREX trading. Fundamental analysis refers to political and economic conditions that may affect currency prices. FOREX traders using fundamental analysis rely on news reports

What Is Technical Analysis

2009-08-13T19:09:00.003+07:00

When trading in the foreign exchange market, part of the process involves forecasting future price movements in order to determine the best time to buy and sell. One method, called technical analysis, takes a look at the market’s past price movements to determine where the numbers will go in the future. Most investors who employ this type of analysis look mostly at price data, but sometimes