Divergence Trading With MACD Histogram

Trading Strategy

Divergences are considered to be pretty strong trend reversal signals. Divergence happens when the price action and the indicator in this case the histogram moves in the opposite directions. For example, the price action makes a new high while the indicator makes a new low or the price action makes a new low while the indicator makes a new high.

When divergence between the price action and the indicator develops, it means a potential trend reversal in the market. MACD is a very versatile technical indicator that can be used to trade these divergence patterns.

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How To Trade With The MACD Histogram

Trading Strategy

A MACD Histogram is a bar chart. The slope of the MACD Histogram is very important. This is the best indicator that tells whether bears or bulls are controlling the market. An upward slopping histogram indicates that the bulls are getting stronger while a downward sloping histogram indicates that the bears are getting stronger.

The price trend whether up or down is likely to continue if it is in the same direction as the slope of the MACD Histogram. When the slope of the histogram and the price action are moving in opposite direction, it means that the trend is in jeopardy. As a rule, always try to trade in the direction of the slope of the histogram.

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How To Avoid Forex Scams

Forex Software

The Forex market is an unpredictable scene and anyone determined to guarantee any outcome is probably a scammer. Because this market is practically unregulated, those looking to profit from inexperienced traders are doing so via online means. Its a shady enterprise, but it appears as legitimate.

The rule of thumb is, if it’s too good to be true, then it’s just that… be cautious, these promises about making money while you’re asleep or making quick money without any effort is just a load of crap. Wealthy people don’t get to their wealth without doing anything, without making any sacrifices. When approached by an unbelievable offer, don’t get screwed. Here’s what you need to look for.

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How to Be a Top Forex Trader

Trading Strategy

In the Forex market, everyone wants to become the infamous powerhouse broker with an unending stream of money coming out of their pockets. The reality is, according to Forex brokers, 90% of traders fail terribly because they just do not know what they are doing, how things work, or that they aren’t prepared enough. The other 10 percent, well, consider that only 5% comes even while the other 5% experiences repeated success. How do they do it? In this post, I’ll explain five key principles required to become a power trader:

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Fibonacci and Online FX Trading

Trading Strategy

Fibonacci and Online FX Trading offers the capacity not only to react promptly to market change but to react using an online platform which has the necessary strategic resources. The Fibonacci pattern is a well regarded mathematical sequence and can be applied to the forex way of thinking.

The foreign exchange market, aptly known as forex is the biggest financial market in the world and as a result the sheer level of variables, opens a vast array of possibility regarding technical analysis and trading patterns.

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How Can a Computer Program Help Make Forex Trading Decisions

Forex Software

Forex trading is a fast paced, complex, high risk, high reward activity. Good split second decision making can be the difference between riches or ruin on the forex markets. That’s why so many forex traders use computer programs to make forex trading decisions. Many forex traders make consistent profits using computer programs designed to help make forex trading decisions. Don’t quite understand how a forex trading computer program can make decisions for you? Read on.

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Trend Trading With Bollinger Bands

Trading Strategy

Do you know this fact that the Bollinger Bands can be used as a very effective tool for detecting and trading trends even though most of us have only be taught to use them in a range bound market. Here is how to capture the trend with Bollinger Bands (BBs). Bollinger bands are used to measure the deviation or what we call volatility in the market. Bollinger bands measure the standard deviation of price action away from its 20 period moving average.

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Deciding on a Lot for Your Forex Trading

Trading Strategy

As a Forex trader, your natural desire is to reduce risks as much as possible. Inevitably, you develop risk management strategies to combat the side-effects of risky trades. In doing so, Forex traders must pay close attention to the size of their lots. Forex strategists assert that the smaller the lot size is, the better, consequently boosting flexibility and overall risk management. So what are the types of Forex slots? Forex slots come in three forms: 1) Micro Lots, 2) Mini Lots and 3) Standard Lots.

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A Daily Timeframe Strategy That Pulls 100-500+ Pips Per Trade

Trading Strategy

This is a daily timeframe strategy that can make hundreds of pips per trade for you without you having to spend hours staring at your computer monitor. Wake up in the morning, scan the charts on the daily timeframe, setup your trade and that’s it. After that you are free to do whatever you want to do.

Let’s discuss this Daily Timeframe Strategy. This Daily Timeframe strategy uses only two indicators. These are the Bill William’s Accelerator Oscillator (AC) and the Stochastic Oscillator. The Bill William’s Acceleration/Deceleration Indicator (AC) measures the acceleration and deceleration of the current driving force.

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Perfect Order Forex Strategy

Trading Strategy

Perfect order takes places when the moving averages are stacked in a sequential order. For example, suppose you are using a three simple moving average system, 10 day SMA, 20 day SMA and 50 day SMA. In an uptrend, a perfect order world be when the 10 day SMA is above the 20 day SMA and the 20 day SMA is above the 50 day SMA. In the same manner, the 100 day SMA should be below the 50 day SMA and the 200 day SMA should be below the 100 day SMA.

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What is Forex Trading?

Candlestick Chart

A basic definition of Forex Trading can be unraveled relatively easily however utilizing this definition to your maximum advantage requires broader foundations. The roots of Forex Trading are derived from and are an abbreviation for, the Foreign Exchange market. The foreign exchange market is a constant hubbub of activity both for the financial and domestic world.

The forex market need not involve substantial financial knowledge; in fact you have probably already taken part in the forex community as the result of a simple trip to your local bank to convert that leftover change from your trip overseas.

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The Morning Star And The Three White Soldiers Candlestick Patterns

Morning Star

Three stick candlestick patterns are more complicated than the single stick and two stick patterns. These patterns take three days to emerge as a valid signal. One such three stick candlestick trend reversal pattern is the Morning Star. However, a Morning Star and the Bullish Doji Star look almost the same but are in fact two different three stick candlestick patterns. You need to know how to distinguish between them.

In case of the Morning Star and the Bullish Doji Star Patterns, the first day is a large bearish candle, the second day in case of the Doji Star Pattern is a True Doji while in case of the Morning Star it is almost a Doji. The price action behind these two patterns is almost the same.

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Leveraged Carry Trading Strategy

Trading Strategy

Carry trade strategy entails buying a high interest rate currency and selling a low interest rate currency. Suppose, New Zealand Dollar NZD offers an interest rate of 4.35% while the Japanese Yen JPY offers 0.35%. Carry trade strategy involves buying NZD and selling JPY. The investor earns a profit equal to the interest rate differential of 4% as long as the exchange rate between the two currencies does not change.

Carry trade is one of the fundamental trading strategies that uses the basic economic principle that money constantly keeps on flowing from a low interest market to a high interest market. Markets that offer the highest interest rate attract the most capital. Countries are no different. Countries offering a better interest rate attract more capital as compared to countries offering low interest rate.

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The Truth Behind Trading Forex Online

Forex Monitor

Forex trading online can be a very exciting and lucrative hobby. However, you need to know what you are doing to limit the amount of money you could lose. Here are some of the basic things you should know before you even attempt to trade online.

Are you interested in taking part in Forex trading online? If so then you may find that it can be slightly confusing. Many companies let you open a trading account with just $250. However, while this may seem like a very small amount, you need to think that it could let you control more than $25,000.

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Trading Retracements With Fibonacci Levels

Trading Strategy

In the last article, we discussed how to trade breakouts with Fib Projection Levels. Let’s discuss that breakout situation again. But this time, let’s assume it fails. Again assume that breakout scenario where EURUSD price rise from 1.2200 to 1.2300. But you are less confident that the price action will continue to rise. You still want to take the trade with one standard lot (100,000 units).

You enter the market with 1/4 lot (25,000 units) at 1.2300 just like before. If the prices continue to rise just like before, you can still profit from that move by gradually adding to the partial position to target the exit of 1.2400. Now, suppose the price doesn’t rise.

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Advantages of a Forex Robot

Forex Monitor

When we think of a Forex robot, we’re hoping that another Wall-E could make our Forex decisions for us, but that’s no the case. There are all sorts and varieties of Forex software that use automation (i.e. a robot) to create several charts and diagrams to analyze our stocks. We, nonetheless, need to make a choice on what software is the best for us and so, this post will explain what to look for in a Forex robot software.

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Trading Breakouts With Fibonacci Projection Levels

Trading Strategy

Most breakouts tend to fail. It is impossible to know which breakout will succeed and which breakout will fail. But you have to be in it to win it. As a trend trader, you have to take every trade. However, using Fibonacci can optimize your few wins and minimize many losses.

When you spot the breakout candle, enter the market with half of your trade size. If the price continues in your favor as you had anticipated add 1/4th of the trade size at 138.2% of the initial move. And if the momentum continues in the direction that you had wanted and anticipated, add the final 1/4th of the trade size at 162.8% of the move.

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Analysis of the Five Types of Forex Brokers

Trading Strategy

There are variable kinds of Brokers, but in total, there exists five types. These five types of Forex brokers have access to brokerage firms that are recognized and considered legitimate versus those shady backdoor brokers who cannot provide you any guarantees. If you want to succeed in getting the right broker, I suggest reviewing their policies. They have similar access to the Forex market, but their terms and conditions might make you choose one type of broker over another.

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Pros and Cons of Forex News Trading Strategies

Trading Strategy

The Forex market has always been rapidly growing, especially thanks to the affordability and accessibility of internet access and the growing investment opportunities provided by Forex. Whilst it’s accessibilities are advantageous, it’s obvious there are significant investment hurdles such as market fluctuations, leverage, and other investment strategies–it is also one of the most unstable. In other posts, I’ve explained how Forex traders use two forms of analysis: fundamental and technical; however, I did not go through very thoroughly the advantages of news release analysis and how they can effect Forex trading.

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Trading Support And Resistance Using Turnabouts Strategy

Trading Strategy

When you make a mistake in trading, there are no money back guarantees that can give you back your hard earned money. Turnabout is a conservative approach to trading support and resistance. This is the closest to the money back guarantee that you can get when trading support and resistance.

Support and resistance is one of the key concepts in trading. Support is like the floor of a room. When you hit it with a ball, the ball will bounce up. In the same manner, resistance is like the ceiling of a room. When you hit it with a ball, the ball will bounce down.

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Harami – An Important Trend Reversal Candlestick Pattern

Harami Pattern

Harami is an important trend reversal pattern. It is a two day candlestick pattern with the candle of the setup day longer than the candle of the signal day. Harami is the Japanese word for pregnant. If you draw this a pattern, it will look like a pregnant woman. The pattern can be bullish as well as bearish.

In case of the bullish harami, the first day is a bearish candle that occurs in a downtrend. On the second day, bulls enter the market and start moving the prices higher but not with much success as the price close lower than the open of the first day and the first day’s high is not surpassed. However, when this pattern appears it culminates in a trend reversal.

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Choosing the Right Forex Software

Forex Monitor

Software usage is an essential part of successful Forex trading. Softwares allow complete automation, organization, and prioritization of stocks, follow trends, calculate probabilities and assign characteristics that may benefit your day trading skills. Knowing which software to choose can be vital to your Forex day trading success. Software react almost instantaneously to trends, allowing you to optimize your time and not worry about the hardship of statistical analysis. Furthermore, even if you’re new, you can still make use of software since a great aspect of them is user-friendliness and teaching. Some software even come with educational material to not only understand the way the software graphs trends, but how to read them and how to take advantage of such information. In order to find the right software, follow this advice:

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How To Choose The Right Forex Broker

Trading Strategy

Before you jump into Forex trading, consider what the environment you’re getting into. Forex is considered a risky investment, so approach with caution. As we all know, every investment won’t return the profit we sought, and similarly, every potential investor may not have what it takes to be a Forex trader. If you’re approaching these feelings of uncertainty, I recommend speaking with a Forex broker.

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A Successful Start to Forex Trading

Candlestick Chart

In order to start a home business, one must fully analyze their current financial wit and their capabilities. Investment must come with a strong emotional security because it’s important for you to fully understand that your investments come at a high price, there’s always the risk of total failure. Nevertheless, you mustn’t gamble your money away, you’ve got to be prepared, diligent, smart, and very determined.

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Forex Trading Strategies

Trading Strategy

Forex trading has received a great deal of attention from those seeking quick, instant wealth. Nevertheless, without creating a strong and unique strategy to approach Forex, these individuals will be left penniless. Forex trading strategies lower potential risk in either day/swing trading for those individuals with solid determined traders who remain calm at crucial moments and stick to the strategy.

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Market Analysis For Great Forex Gains

Trading Strategy

Forex trading strategies are plentiful, perhaps the exact reasons why a lot of people haven’t got a clue where to start. Nevertheless, all these strategies use two common characteristics and techniques: fundamental or technical analysis.

When you look at a fundamental analysis report, what you see is the whole financial scope including trades, historical analysis. These trends reveal international macroeconomics and influences that effect the supply and demand of currency trading. Here are five factors that influence it:

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Making Money With Forex

Candlestick Chart

Forex is considered one of the most lucrative trading online market ever, consisting of millions of traders all looking to acquire huge profits; nevertheless, Forex trading can be risky, particularly to those lacking sufficient experience. To achieve those Forex success, one must learn and become adept quickly and operate with sound strategies.

In order to get a basic understanding of Forex trading, consider setting up demonstration accounts. These demo accounts provide you the capability of trading, except with “virtual” money rather than the real thing. This method is without risk and a great way to give you results on your trading capabilities. When you’ve used this strategy enough and you see yourself improving significantly, it’s time to move onto the next phase.

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Trading Price Oscillator Divergences Can Increase Your Chances Of Making Winning Trades

Trading Strategy

Trading divergence patterns is not a complete trading strategy rather it is an additional tool in the technical trading toolkit of any trader. Divergence is simply the disagreement between the price action and the indicator movement.

Now any oscillator can be used to show divergence patterns. The most commonly used oscillators include RSI, Stochastics, MACD, CCI, ROC and Williams %R. However, any oscillator can show divergence with price action.

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3 Breakout Strategies of Forex Trading for 2020

Trading Strategy

Forex is perhaps the best way to make oodles of money in the world currency market. Making money through Forex is much similar to making money through holding stocks. The strategies of the Forex market is highly in demand as more and more investors are plunging into the Forex investment market, shifting their bases from the stock and the bond market.

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Combining Moving Averages With Candlestick Patterns

Trading Strategy

Moving averages are one of the most simplest yet the most widely used technical indicators. You will find almost every other trading system using moving averages in one form or another. Moving averages are just the average of the closing prices of a currency pair over a certain period of time.

Moving averages can be useful when you are looking to confirm a trend. The first rule of thumb when using moving averages is that when the currency pair price is above the moving average, an uptrend is in place. When you combine this with a bullish candlestick pattern you can get profitable entry and exit signals. Similarly, when price action is below the moving average, a downtrend is in place.

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Combining Trendlines With Candlestick Patterns To Enter And Exit Trades

Candlestick Chart

Trendline is one of the most easiest to understand technical indicators. Most of the charting software will automatically draw the trend line for you. You can use a bullish trendline and the bullish candlestick patterns to pick long entry points as well as confirm trends. In the same manner, you can use a bearish trendline in conjunction with bearish candlestick patterns for a short entry in the market.

When you combine a bullish trendline with a bullish candlestick pattern or a bearish trendline with a bearish candlestick pattern, you will get a pretty accurate signal that tells whether you should stick with a position or exit it.

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Simple Forex Trading Strategy Using Elliott Wave Indicators

Trading Strategy

Elliott Waves were first discovered by R.N Elliott in the 1930s. What he found was that markets follow a certain wave pattern over the long term as well as on the short term that is repeated over and over again. This wave pattern is now considered to be a universal law of the markets and is named as Elliott Waves Principle.

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Practice Trading Make Easy

Trading Strategy

Money does not grow on trees. That is why most of the people are hesitant to invest their money in Foreign Exchanges in fear of losing it. If you jump into investing your money on a business you are not familiar with, tendencies are you may fail miserably and lose all of your investments. You don’t want that to happen. Practice trading is your number one step.

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MACD Divergence And Crossover

Trading Strategy

First read the article on the Moving Average Convergence Divergence (MACD) to know what is the MACD black line and the signal or the trigger grey line and plus what is a MACD histogram. When the MACD line crosses above the signal line or the trigger line, this is known as the MACD cross or a Moving Average Crossover. When the MACD line is above the trigger line, it supports a long position and when the MACD line is below the trigger line, it supports a short position.

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Moving Average Convergence Divergence (MACD) Is A Simple Yet Reliable Forex Indicator

Trading Strategy

The Moving Average Convergence/Divergence (MACD) is a versatile indicator. Moving Average Convergence/Divergence is one of the simplest and most reliable forex indicators. MACD will help you identify both the bull divergence as well the bear divergence which are rare but effective patterns.

This is a hybrid tool that is helpful in determining the present market direction as well as measure the price momentum. Many traders use MACD as their sole confirming indicator. This multi faceted indicator acts as a sign of the trend momentum by representing the relationship between the two moving averages.

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Forex Trading Update – Latest Non Farm Payroll Results

News

Online FX trading and global data can be at times, intertwined. The ability to unravel these figures and react accordingly is a valuable investing skill set. The data from the latest December 3rd Non-Farm Payroll results certainly provides food for investing thought.

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