Month: July 2011

By Warren Seah

Trend line trading is part of many trading techniques and forex systems. It is used to indicate how price has trended in the past and most important to predict movements in the future.

One of the most commonly accepted principles of technical analysis states that the trend once established, has greater odds of continuing than of reversing. Then the most profitable, lowest risk opportunities will come by trading retracement style set-ups in the direction of a confirmed prevailing trend.

On the other hand, a trend cannot persist forever, as such, downtrend evolved over time into up-trends, and then mature up-trends must devolve again into down-trends as the market cycle continues throughout history.

Informational Guide to Advanced Forex Trendline Trading in Meta-Trader 4

There are many different kinds of trend

Trend-lines can be horizontal or vertical and anywhere in between. Generally, it is drawn with a slope to mark even the most modest uptrend or downtrend in the market. Horizontal trend lines are also very popular for showing support and resistance lines at a common price point. It is fairly common that the market can trade wildly around a common price point and do it even over the course of time. “Round” numbers such as $100.00 or $10.00 are more likely to be a place for a horizontal support or resistance because traders like to use round numbers as entry and exit points.

How Do You Profit From Trend Trading?

There are two methods to trade a trend. In trend line trading, the first method is to anticipate that price will touch the trend-line and make a rebound, and market move in the prevailing direction of the trend again.

You will open a position in the direction of the possible reversal with a stop above where you think the turning point will occur. Don’t place this order until the reversal has happened. The setting of the stop-loss must fit within your risk management plan.

The second outcome is when price breaks the trend line and this term is usually called break out. Tradingbreak out is a popular strategy in forex trading.

When the market ignores the trend-line and breaks beyond with great strength then a change in the original trend would have occurred. Now, the trader opens a position in the direction of the new trend and sets his stop-loss behind the proceeding line. The stop-loss must also fit within his risk management plan.

The problem with this method of trading is that it is time consuming and trend line trading requires constant monitoring of the markets during active forex trading hours. That means that this style of trading is not suitable for part-time traders who have a day job.

Not to worry, we have found a great tool which makes it possible for even the part-time traders as 15 minutes a day is more than enough to set up at the popular Meta-Trader 4 forex platform to trade this type of system. Forex traders can now set up and leave the remaining work to be carried out by the software while he can perform other daily work. At the end of trading day, the trader will review how his/her trading system performed for the day.

Using this kind of effective and time-saving Meta-Trader 4 trend line trading tool allows for minimum emotions and stress during the active trading hours and free up the traders time so that he can concentrate on doing the more important things in his life.

About the Author

Warren Seah

What if you just couldn’t trade forex effectively with a day time job?

I know how hard it can be to trade forex manually, but if you want to really be successfully trading your own unique manual system, you need to learn a single method that works amazingly well.

This method is simple to pick up and it automates most of manual forex systems. Yes, it can automate your personal forex system. You can read how to do it in my free report here: Trend Line Trading.

Don’t give up hope, it’s NOT impossible. Trend Line EA will expand your trading capabilities to greater trading success learn more by clicking the link.

By Ruhi

Investors and traders are and always remain fascinated with the Indian Share Market and the happenings surrounding it. Knowledgeable share traders are easily able to make money in short period of time. However, it does not mean that every investor gets high retunrs on his/her investment in Indian share market. There are numerous factors and tricks that conspire into profits.

The wise investors and traders diversify their investment portfolios by investing in not only equity stocks but also in commodities, derivatives, mutual funds, etc. An investor diversifies his/her investment portfolio in order to minimize losses in the sense that if there is loss due to one financial instrument then that is offset by the profit in other financial instrument.

First things first, you need to have a financial target when investing in the share market as one needs to have a target in order to reach a goal. Target does not solely depend on the intended amount of investment but also depends on the amount of knowledge you have. Other factors can be the applicaytion of research methodologies required for determining potential of a security.

Earning return on your investments also depends on the stock broker you choose to be associated with. As per SEBI, abbreviation for Securities Exchange Board of India that regulates the country’s stock markets, a share broker is necessary in order to trade in the Indian share market. It is because all of your transactions are handled by your share broker.

Share brokers hold critical importance in the eyes of investors and traders. Share brokers help you at every step, starting from opening your trading and demat account with them to buying and selling securities. There are various types of share brokers present in the Indian stock market. However, it is advisable to avail the services of only those brokers that are registered with SEBI, and choosing registered brokers with years of experience would be even better. The various types of share brokers include the ones that only handle your transactions, or the ones that give you advices along with handling your transactions, or the ones that give you trading advices and trade in securities on your behalf with your consent.

The top share brokers are the most preferred ones as they are essentially helpful for those investors who don’t have time to be clued on to the market happenings round the clock. These share brokers also provide online share trading platform that is one of the best enhancements in broking services. The brokers will keep you completely updated and help you take right investment decisions.

About the Author

share market india

By Warren Seah

Introducing a new trend line EA tool released for the forex Meta-trader 4 trading platform. This software comes with technical and sales support for its member community.

How Trend Line EA Works

You can draw lines in the chart manually by hand, and when price break across or touch the line, the action will instruct EA to execute trade entries. Forex users can open market orders or pending orders with this EA.

Trendline drawn can be horizontal lines, vertical lines or any in between. Lines drawn with any gradient can still act as a pending order. This feature is very useful in channel or trendline trading as this powerful feature is not found in the standard functions of Meta-Trader 4 trading platform.

Drawing a Pending Order

In order to programme the drawn lines to make trade entries, the lines must have specific codes at its line description. You can easily refer to the guidebook to copy and paste the codes into the line description.

Placing a buy pending order can be as easy as entering BUY? into the line description and when price break across or touch the line, a trade entry will immediately be executed. If you like to have a sell pending order, enter SELL? to make the line a sell pending order.

Once line has executed a trade, it will expire and cease to function. Therefore, any line can only be used once. Trade entry rules like stop-loss or take-profit levels, entry lot size and slippage can be pre-specified before trade is executed.

Drag and Drop

One added advantage of a drawn line pending order is that the user can easily drag the trend line around the chart, and the pending order will moved to the new location. It almost works like drag and drop pending order with this tool.

Advanced Trend Line EA Features

Besides drawing a pending order, you can also add in single or multiple partial close lines onto the charts. By tagging these lines to the specific pending order, these newly added partial close lines will then be associated with the order ticket numbers executed by the tagged pending order line.

You can also draw your own stop-loss lines, take profit lines, partial close lines and stop-loss to breakeven line.

The stop-loss to breakeven line is the action of shifting the stop-loss levels to the trades’ entry price when price break through or touch this line. This action makes the trade a no loss trades as the only outcome is either zero or close in profit.

This expert advisor is a very efficient tool for forex traders because it literally trades on behalf of the user thereby reducing any trading stress. Forex traders can use this tool to trade many technical chart patterns. It makes trading forex easier than before. If you can draw a few lines on the chart, it will then runs by itself. It is like total trading freedom for the user as there really is nothing much to do after the trader have prepared his charts for the day.

Expectations Must Be Set Right

Trendline EA is semi-automated designed specially for manual forex traders. What people need to realize is that this software is only as good as the traders’ technical analysis ability and trading experience.

It looks like placing a few Lines on the chart and walk away, a trader could now make money from forex trading. While this tool has made this a possibility, however the developers do not think this way.

The developers wants to empower traders with complete entry and exit trade execution. This will allow greater control over forex entries and exits and hence give rise to the usage of more sophisticated forex trading system. The power happens when you can put all of this systems to work on automation while freeing you more time to study the market but not have to baby-sit the trades like a nanny.

But honestly, If you can draw a line, you can make money, once you understand market volatility, support and resistance, price action and money management with this software.

The trend line EA is software which helps the manual trader automates his forex trading strategy. The user must draw trend lines on the chart and the EA execute the trades for him.

About the Author

Warren Seah

What if you just couldn’t trade forex effectively with a day time job?

I know how hard it can be to trade forex manually, but if you want to really be successfully trading your own unique manual system, you need to learn a single method that works amazingly well.

This method is simple to pick up and it automates most of manual forex systems. Yes, it can automate your personal forex system. You can read how to do it in my free report here: Trend Line Trading.

Don’t give up hope, it’s NOT impossible. Trend Line EA will expand your trading capabilities to greater trading success learn more by clicking the link.

EUR/USD

The EUR/USD has taken a step away from the edge after failing to get a close below its 200-day moving average and the price is testing the falling trend line from the May and July highs at 1.4450. Short term momentum is currently rising and break above this resistance line may find resistance at the peaks from July, June, and May at 1.4580, 1.4700, and 1.4940 respectively. However, a bearish tweezer candlestick pattern has formed on the daily chart from last week’s highs on Thursday and Friday, strengthening the argument for the 3-month old resistance line to hold. Support is found at 1.4015, 1.3835, and 1.3780 from the rising trend line off of the June 2010 low.

GBP/USD

After dipping as low as 1.5780 which is the 38% Fibonacci retracement level from the May 2010 to April 2011 move, the GBP/USD has broken above both the neckline from the head and shoulders pattern and the resistance line falling from the April and May highs. The pair has now found resistance at the previously broken trend line from the May 2010 low and now serves as initial resistance at 1.6360. A move above this line will likely go on to test the May high at 1.6545 though sterling bears may make a stand before the April high of 1.6745. To the downside support may come in where the neckline and the previous resistance line off the April and May highs intercept at 1.6190. Additional support is located at 1.6000 and the July low at 1.5780.

USD/JPY

The reemergence of yen strength has taken the USD/JPY one step closer to its all-time low at 76.11. Falling stochastics on the monthly, weekly, and daily charts all point to additional declines in the pair. Initial support is found at 78.20 followed by the lower line from the falling wedge pattern from December 2008 which comes in at 77.50. A move higher may find resistance at 79.60 and 81.50.

USD/CHF

An attempt to push the USD/CHF higher ran into resistance at 0.8270. Since failing to hold any gains the pair looks to test the most recent all-time low at 0.8080. Any attempt to move the pair higher will likely encounter resistance at 0.8270 and 0.8385 from the falling trend line off the February high. Relative value sellers of the pair may also be lurking at 0.8550.

Read more forex trading news on our forex blog.

By Cedric Welsch

Every Forex system ever devised has several things in common. While systems may differ in the type and number of studies or indicators they use the basic rules for trading remain the same. A seasoned trader can sometimes make profitable trades following just the Forex news reports. But most investors must understand and follow the rules of disciplined trading. Take a look at the rules you see listed here, follow them as you develop your own trading style and remember that the best systems are the simple ones that you can understand and build for yourself.

First of all you must learn and understand how to read a chart and be able to determine long and short-term trends. By looking back in time on the charts you should be able to recognize seasonal or recurring trends and that knowledge should allow you to plan for history to repeat itself. Secondly, a set of tools is an important part of your trading arsenal. Whether you subscribe to a particular Forex system or follow the Forex reviews of a guru, you must remember that these are both tools and tools cannot make the trade, they are there to make the trading easier. Thirdly, do not overuse the leverage that is afforded you in this area of investing. New investors get themselves into trouble very quickly by taking advantage of this leverage.

The fourth thing you have to remember is to use easy to understand strategies. Always employ stop-loss tools offered by your broker. You must always plan your trade, knowing the exact entry point and exit point of every trade. And lastly, you must be confident, persistent and patient, successful currency trading takes time.

Now that the rules are out-of-the-way, here is a very simple yet successful Forex system, that when employed correctly is 70 – 80% effective. There are 4 indicators that you will follow: moving average, MACD, force index and Parabolic SAR. Trades are initiated only when these four signals are in agreement. These trades can be done on any time frame you choose but work most often on the 1 hour and 4 hour chart. Shorter time frames cause a lot of seesaw action and longer time frames require deeper pockets to absorb the small corrections.

When these 4 things occur you will go long or buy the currency pair you are watching:

1.The moving average is below the price and moving up
2.There has been an MACD crossover below the zero line
3.The force index is on the way up
4.The parabolic SAR is below the price
All 4 items must be in agreement or you do not trade.

With this Forex system you may also profit from a market that is trending down by observing these 4 rules:

1.The moving average is above the price and moving down
2.The MACD has a crossover above the zero line
3.The force index is on the way down.
4.The parabolic SAR is above the price.
Once again follow the rules and all 4 indicators must be in agreement before you open a trade.

While this Forex system is very effective it does have occasional losing trades. No system will ever take the place of educating yourself on the market. Follow the trends and watch the Forex news. Look for outside signals that will allow you to be confident in your trades. Follow the rules, trade confidently and you will learn to profit.

About the Author

Some incomprehensible numbers and stats may arise as you hear forex news trading from different sources. The more heavy the gravity of a certain forex scam, the more you need to be aware of it too.

By David Adams

As I mentioned in earlier articles, I am an enthusiastic channel trader, which flies in the face of what most e-mini traders consider prudent trading. Most e-mini traders avoid trading in channels because they can be unpredictable and unprofitable. Reversion to the Mean Theory has certainly had its abuse over the years by purveyors of stocks and bonds. It is not uncommon for unscrupulous stockbrokers to tell a potential client that a stock is overpriced because it is trading over its yearly mean price. There is no correlation between eminent price movement in a stock and its distance from the mean price. This use of the Reversion to the Mean Theory is a misrepresentation of how stock prices fluctuate.

On the other hand, the theory holds great value for trading in the short term, especially when used in conjunction with the bands. I generally set by Bollinger bands at 2 standard deviations from the mean and use a setting of 10 time periods. There are other settings, which may be 14 or 18, that give satisfactory results under unusual market conditions; but I find 10 to be the most dependable setting for my personal e-mini trading.

John Bollinger, in his article, “Bollinger Bands-The Basic Rules,” states that closes outside the Bollinger bands are continuation signals not reversal signals. In nearly all cases, closes outside the bands tend to be continuation patterns, with certain exceptions.

In reasonably symmetrical continuation channels the Bollinger bands tend to define the highs and lows of the channel. As a quick aside, symmetrical continuation channels refer to channels where the price action is ricocheting off the top line of the Bollinger band and moving in a direct line, with little retracement, to the mean line or the bottom Bollinger band line. These channels are a delight to trade as they are usually very low volume formations and occur during the stand down period (from 11 AM CST to 12:30 PM CST with some daily variations). During the stand down period the market is often dominated by smaller traders. This is especially true on the YM e-mini contract. In a typical trade, the smaller traders will try to push the price action outside the Bollinger band and typically fail. It is at this time that I fade the failed breakout back into the channel.

With very few exceptions, the price action in the above-described scenario will revert to the mean average at the center of the Bollinger bands. I have used this technique for several years and can assure you that continuation channels seldom breakout or breakdown. A more likely scenario for this price action is a reversion to the mean centerline of the Bollinger bands or a move to the lower Bollinger band. (Or an exactly the opposite, depending on the direction of your trade.) The tendency for continuation patterns to revert to the mean defies many investment theorists judgment, but it is true, just the same.

It is important to understand that this principle I have outlined works only in continuation channels and is a disastrous principle to implement in a trending market, or even a choppy market. Its sole use is in a flat continuation channel. It’s also important to use a fairly tight stop should the market action choose to actually breakout or breakdown.

In summary, I have described a unique scenario in e-mini trading where Bollinger bands and Reversion to the Mean Theory can be utilized to initiate frequent and profitable trades. It takes some time and experience to learn as technique, but continuation channels tend to revert to the mean.

About the Author

Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here

By Cedric Welsch

The market for currency trading is every changing, and it is vital that all traders stay abreast of the most current forex rates. For those new to forex, this is the rate at which one currency will be traded for another. These rates are forever changing, and if you wish to make money on this market, you will need to track them.

Information on the most current forex rates can be found online. There are several sites that are dedicated to showing this information in real time. This information is completely free, and is available twenty-four hours a day. One word of caution here. Not all sites are as advanced as others. While a site may claim to be in real time, it could actually lag behind by several minutes. Because of this, it is important to use only the best sites.

Another tool offered by these sites is an exchange rate calculator, or currency convertor. You can use this to see the current exchange rate of any two currencies at any given time. This is a great tool, as it does the complicated math for you, and fast.

Not all, but some forex rates sites will offer currency charts and historical rate data. This information allows you to see how specific currencies have performed over a period of time. While these numbers are past, and not current, there is a lot to be learned from examining these. They will allow you to clearly spot trends, and may be able to help you determine the next upward swing before it actually happens. The ability to predict trends is one of the greatest market advantages of all.

It is best to use a site that has all three of these features. You will need all three, and should not have to waste precious time maneuvering from site to site. No where is the statement, “time is money” more true than in forex market trading. A hesitation of even a few minutes could mean money lost. This, of course, is something no trader wants, so it is best to plan ahead.

To be a successful trader, you must always be on top of the current forex rates. With so many tools available, this should be no problem. Seek out only the best sources of information, and utilize the other tools these sites offer. This will help ensure that you make the best trades possible.

About the Author

The uprising of forex techniques will always make things a little extra competitive to all. Whereas, you as a wise trader, must always look at the fundamental fx trading strategies.

USDCHF is forming a sideways consolidation in a range between 0.8082 and 0.8276. The sideways move could be expected to continue in a couple of days. As long as 0.8082 support holds, one more rise to 0.8400-0.8450 area is possible after the sideways move. However, a breakdown below 0.8082 could indicate that the long term downtrend has resumed, then next target would be at 0.7800 zone.

Daily Forex Reports

By ForexSignal

There are three basic approaches in online forex trading. Among them technical analysis is the most common approach. Individual money management is also very important but it is essential for every trader to know something about fundamentals. If you are new in treading line then it is essential for you to get some basic idea about forex treading. If you want to be a successful forex trader then you need to understand about some fundamental features of forex signals. When the new traders running their business this fundamental information help them to keep away from any kinds of risks and also reduce their losses. There are a few key points that are essential for the new traders those are includes mainly the forex signal service, forex alerts, treading signal service and the forex account management service. So, you need to learn how can you know and use these fundamental things in the aid of online forex treading.

These important techniques will support all the traders to describe how Forex information can move in market through the signals and alerts service. When traders will acquire better knowledge on forex signals, then they will be able to use them as forecast and that will also help them to get other product markets. Forex signals operate as a trade signals in the forex market and that offer an image of incoming trades to the traders. By this incoming business the traders get huge income by giving them enter and exit signals when they are join in forex trading market. This is only the fundamental way that can help the traders to keep away from any kinds of risks and to minimize the losses at low level when they operate the forex treading in the market of high risk. Although, there is no assurance to get any feedback from this signal service, but they are suitable only for simple case only. So there is a better possibility to get feedback and to be secure in forex trading if those examples were appropriate in the market case and it is clear to all that they will get money from there.

But the traders should keep in their mind that they will not depend on huge trade signals service. When true resources are available then any person can learn about the forex treading. Traders who are not able to make enough profits with forex treading may face some difficulties like they have not learned much about the forex signal treading service. There are a huge number of websites on the internet that can give you information about the forex market. We want to declare that we want to help our traders, for this reason we have already developed our website with huge number of useful records and resources about the forex trading market. In the forex market a trader can be successful when he will gather much knowledge about the forex market. So, for your success you need to learn more about forex signal and forex market.

About the Author

Best Forex signals service since 2003. Try best forex signal to your email and alerts to mobile phone via sms for free.

By Cedric Welsch

As the world of forex continues to expand, so do the number of currency exchange signals providers. Because of this, it may be difficult to know which is right for you. FX news provides some insight, and when used in conjunction with other sources, you will be able to choose wisely.

Currency exchange signals are most frequently used by individuals who simply do not have all the time it takes to properly analyze the forex market conditions, let alone listening to forex news updates. Some use forex software for this, but others would rather take a more hands on approach. Signals allow a individual to quickly see what is going on, and decide which trades to make based on this information.

Having access to currency exchange signals will cost money. The price varies by service provider, and the options include a per month fee, or per signal fee. Some offer a free trail period during which you can test the service before deciding to sign up.

You will be able to choose how you would like trading alerts sent to you. Email is a popular choice, but text messages are more popular as it allows you to receive the information you need even when you are not on your computer. Since the market is open twenty-four hours a day, it is best to go with this option.

One mistake that is often made by those looking for this type of service is that they are overly impressed by the most recent results. Any service provider can have a good month, and when they do, will use this to drive home the point that what they have to offer is best. However, what you should be looking at is the results over a longer period of time. A good long term track record is a much better indicator.

You will also want to keep in mind that just because a signal says a gain will happen, it may not. This information is not always correct, and should not be your only method of choosing which trades to make. This service is best used in conjunction with other strategies and resources.

Getting the information you need, when you need it, is the best way to put yourself in a good position to make a profit. The market is always changing, and you will need to be flexible enough to change your strategies as situation dictates. He who has the best tools comes out with the most money.

About the Author

Thankfully, very informative and direct to the point trading news can be accessed anytime online. The fast uprise of forex brokers review sites in numbers helps a lot in determining reputable ones.