Archive for December, 2009

Forex Scalping

what is forex scalping ? It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that.

Forex scalping is in high demand nowadays. Many forex brokers frown upon scalpers, but not us. We are always looking for talented scalpers.

FX Scalping usually involves opening and closing a position in seconds or minutes for a few pips of profit. Even though scalping involves the use of leverage and higher leverage means higher risk, the short period of time a forex scalper is in a trade decreases the exposure risk that’s inherent in trading or investing due to the holding of a position. If done correctly, scalping provides this additional degree of “risk control” that is not even present in regular day trading.

Obviously, it’s possible to make money scalping the forex – if not the brokers wouldn’t care so much. However, to be successful, you really must know what you are doing (especially in terms of having a strict risk strategy). You will also need to find a scalping system where you stay in positions long enough not to break the brokers rules while at the same time stay within your own risk tolerance parameters.

Incoming search terms for the article:

• best oscillator forex for scalping (1)

Macd in Forex

This indicator is developed by Gerald Appel who was a trader and market technical analyst,This is a million dollar question. Before I answer this question that why MACD works, I prefer to explain about one of the most important reasons of forex traders’ (and also all other kind of traders’)failure. Maybe you have heard this a lot from us but it has to be reminded in this article too. Lack of patience is one of the most important reasons of forex traders failure. Most traders are not patient enough to wait for a good trade setup. After several minutes, hours or days that they wait for a signal (depend on the time frame or system they use), and they can not find any signal, they lose their patience and force themselves to take a position while there is no sharp and clear signal. So they lose. On the other hand, when they succeed to take a good position, they get out too early with a small profit because they are afraid of losing the profit they have already made. They do not have enough patience to hold a position until it hits the target. So they make their profit limited because of lack of patience. MACD is a solution for this problem because it is so delayed and this delay forces you to wait more, both when you are waiting for a trade setup or when you already have a position. That’s why MACD is recommended both by forex and stock traders.

MACD Divergence is one of the most famous and strongest trading signals that MACD generates. MACD Divergence forms when the price goes up and makes higher highs and at the same time, MACD bars go down and make lower highs. The rule says, the price will finally follow the MACD direction and will break down. However, the problem is, you never know when the price will follow the MACD direction. So, if you rush and take a short position right when you see a MACD Divergence, it may keep on going up for several more candles. You should go short when MACD Divergence is followed by a good sell signal by the candles and/or a support break down. This is safer.

how to trade forex options

A Complete Guide to Technical Trading Tactics

A Complete Guide to Technical Trading Tactics: How to Profit Using Pivot Points, Candlesticks & Other Indicators

John L. Person (Palm Beach, FL) publishes The Bottom-Line Financial and Futures Newsletter, a weekly commodity publication that incorporates fundamental new developments as well as technical analysis using his trading system.

By learning how to better integrate elements of market analysis such as time and price, you’ll be ready to trade with confidence and achieve success. The proven methodologies that are discussed from the technical side include: Pivot points–a leading price indicator that is based on price points using different time frames Cycle analysis–which deals with predicting market turning points based on time Candle chart patterns–which are based on price relationships between the open, high, low, and close including past chart points such as old highs or lows Fibonacci ratio corrections and extension studies–which are based on past price points Mental thought processes–the last and maybe the most important aspect of trading, which will help you evaluate your psychological makeup and overcomerough spots to stay focused when trading

             Download

Candlestick and Pivot Point Trading Triggers

this best book from john l person, In his first book, A Complete Guide to Technical Trading Tactics, John Person introduced traders to the concept of integrating candlestick charting with pivot point analysis. Now, in Candlestick and Pivot Point Trading Triggers, he goes a step further and shows you how to devise your own setups and triggers—in the stock, forex, and futures markets—based on a moving average approach, please download and enjoy, have fun !

Download

Fibonacci

The Fibonacci are used in many different trading systems, including Fibonacci Retracements, Arcs, and Fans. Whichever trading system is used, the Fibonacci numbers are usually used to calculate support and resistance points. For example, Fibonacci Retracements expect that during a trend, the price will move against the trend (retrace) back to a level identified by the Fibonacci numbers, and then continue the trend in the original direction. The Fibonacci numbers also have relationships with non Fibonacci trading systems, such as Elliott Waves, which were created before they were discovered to include the Fibonacci numbers

• Description: The Fibonacci numbers (F) are a series of numbers where the next number is the sum of the previous two numbers.
• Calculation:
  Fn = Fn-1 + Fn-2
• Sequence:
  1 1 2 3 5 8 13 21 34 55 89 …

Fibonacci retracements represent an excellent tool for investors, identifying reversal points on a historical price chart. Anyone can see that on any historical price chart, trading prices will inherently pull back or retrace a percentage of the previous movement before reversing again and then proceeding in the direction of the overall long-term trend.

Historical observations demonstrate that these retracement percentages seem to follow a Fibonacci ratio pattern. By carefully plotting these retracement possibilities on a historical price chart, a trader improves his or her probability towards successful investing. Certain rules are recommended to improve the likelihood of identifying successful entry and exit points.

pivot points

one of the main benefits for using pivot point calculations
is that they help determine when to enter and when to exit positions.
As a trader, you already know you can only book a profit when you
exit; and if you don’t exit a losing trade quickly, it is hard to maintain, or
keep, what you have already made. Pivot points are used to project support
and resistance or actual highs and lows of trading sessions. These numbers
are derived from a mathematical formula; there are several versions that,
for your benefit, I will go into; but keep in mind that I still use the most common
method to derive my analysis. Here are the most common formulas:

Resistance 3 = High + 2*(Pivot – Low)
Resistance 2 = Pivot + (R1 – S1)
Resistance 1 = 2 * Pivot – Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot – High
Support 2 = Pivot – (R1 – S1)
Support 3 = Low – 2*(High – Pivot)

Read more…

Candlesticks

Candlesticks are one of the most powerful technical analysis tools
in the trader’s toolkit. While candlestick charts dates back to
Japan in the 1700’s, this form of charting did not become popular
in the western world until the early 1990’s. Since that time, they
have become the default mode of charting for serious technical
analysts replacing the open-high-low-close bar chart.
There has been a great deal of cogent information published on
candlestick charting both in book form and on the worldwide web.
Many of the works, however, are encyclopedic in nature. There
are perhaps 100 individual candlesticks and candle patterns that
are presented, a daunting amount of information for a trader to
learn.

Read more…