Forex Technical Analysis

There are some traders who are simply trading the news and these people are known as fundamental traders. However there are also traders who only trade with indicators and patterns on their charts and these people are known as technical traders. Personally, I am a technical trader and I am going to show you how you can better trade the currency using technical analysis.

Below is some stuff you need to know in order to be able to do proper technical analysis:

1) Candlestick Patterns: This is usually one of the most overlook parts of technical analysis. Most traders do not spend time learning how to interpret candlestick formation and this is why they are unable to trade with success. You do not need to be able to know everything about candlestick but you definitely need to know the various type of reversal patterns or continuation patterns so that you can enter your trade more accurately.

2) Forex Indicators: Once you have familiarized with the candlesticks, you need to spend time to learn the features of different forex indicators so that you know which to choose for your trading plan.

3) Decide on Your Type of Trading Style: There are basically 3 main types of trading styles you can adopt.

You can be a forex scalper who enter and exit a trade within minutes and only trade on the low time frame charts like the 1 minute and 5 minutes.

You can be a forex day trader who enter and exit a trade within the same day and you will be trading off the 15 minutes, hourly and daily charts.

You can also be a position trader who enter and exit a trade within days or even weeks and you will be trading with the daily, weekly and monthly charts.

What you decide to become depends on your time availability. If you do not have a lot of time to look at the chart everyday, you should choose to be a position trader as you only have to take a look at your chart every few days because you are trading off those higher time frame charts.

If you have 1 to 2 hours everyday to do technical analysis, you can choose to be a day trader. You can spend one to two hours to do proper analysis and then place your trade on the day.

If you have the luxury to trade anything of the day and you are a impatient person who wants to see result fast, you can choose to be a forex scalper.

Once you decide on the type of trader you want to become, you can then decide on the time frames to use. At this point of time, you can then create a trading plan with your chosen indicators and a set of conditions that you need in order to enter a trade and exit a trade.

For those of you who are new, this can be a difficult task but it is something that is necessary in order to be successful in this field.

By: Kelvin Dee

Do you know who Leonardo Fibonacci is? Now, when you think of the name “Leonardo,” perhaps you think of Leonardo da Vinci, but unlike Leonardo da Vinci, Leonardo Fibonacci did not paint the Mona Lisa. No, Leonardo Fibonacci was a mathematician who lived from about 1175 to 1250. He was well known in his day and contributed greatly to the world of mathematics. One of the things he did was that he introduced the decimal system to Europe.

He also studied a sequence of numbers that are known today as the “Fibonacci numbers.” Alternatively, they are known as the “Fibonacci sequence.”

The Fibonacci sequence begins with a zero and one. Each new number is the sum of the two previous numbers; for instance, zero plus one equals two, one plus two equals three, two plus three equals five, and so on.

Therefore, the first numbers in the sequence appear as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, ad infinitum.

Fibonacci discovered that this series of numbers and their ratios to each other occurred throughout nature and in fact are incredibly commonplace in the world.

So what does this have to do with forex trading? Well, the ratios that the Fibonacci numbers displayed are also apparent in the price movement of currencies, as well as in stocks and other types of investments.

Although it’s too detailed to go into here, there are three numbers you need to concentrate on from this sequence. They are 0.382, 0.500, and 0.618. There are others as well, but these are the most important.

These numbers help to calculate what are called “retracement levels.” Many traders use retracement levels when they need to figure out where they should place buy and sell orders. It works like this:

Let’s assume that the price of a currency pair, or a company stock, is trending upward. The history says that prices tend to hit a peak and then go into temporary reversal. Then, they continue to trend upward. This is where Fibonacci numbers come into play.

When a currency is trending, the price can be expected to reverse back to one of the Fibonacci numbers. Then, it “bounces” back to its original level or nearly so to continue the trend. Assuming you forecast this right, you can buy just before the upward trend continues and profit handsomely.

Whatever the online trading platform you use, it should give you the means to chart the Fibonacci numbers. To do this, you draw a line from a low point to a high point. Retrace the levels will automatically be mapped on the chart for you.

There are the things to consider besides trading when the price hits a particular Fibonacci number.

For instance, you don’t know at what retracement level the price will stop. If you choose 0.382 and it drops to 0.618, you could lose a great deal. Additionally, if you choose the wrong high or low point, the retracement levels will not reflect what actually happens and will be of no use to you.

Finally, even though Fibonacci numbers are a good tool, sometimes they don’t forecast accurately at all. Again, remember that many variables come into play in the forex market. Therefore, don’t rely just on one method, like Fibonacci numbers, to predict what price movement is going to be.

By: Amar Mahallati

Forex Assassin system just came out few days back and experts are already talking about it. I am sure you must have heard of this system already. Also, you must have heard of a formula that this system contains that helps identify the trade. Many of you might be thinking – Is Forex Assassin really that good as what experts are saying?

Lets look at the this system -

What kind of System is Forex Assassin?

Each forex trading system consists of a trading strategy of a particular category. The primary categories of Trading strategies are -

1. Fundamental analysis based – These kind of systems focus on making pips using fundamental news such as NFP (Non Farm payroll) etc.

2. Technical Analysis based – Most of the systems fall in this category where the trades are made using the technical indicators. There are tons of technical indicators such as Fibonacci, EMAs, candles, MACD etc.

3. Price Driven – Forex Assassin system falls in this category. These systems are based on the theory that particular kind of price movement influence the market to move in a particular way.

What is the Forex Assassin Formula?

This system primarily is based on a formula. This formula recommends the entry and exit points for the next trades to be made based on current price information of the currency pair. Since the formula makes the calculations, this frees up the time of the traders since they don’t have to continuously watch the charts. Due to this, the identification of the trades is matter of just minutes because of this formula.

Is Forex Assassin costly?

Typically, from my observation I have found that all the forex trading systems come for a standard price of $97. So does this system. I guess, $97 has become more of a market standard. There are few systems that come for even 1000s of Dollars, but they are DVD based courses. Considering this point, this system is more in line with Market price. Just to mention here, my suggestions is that when you think about buying a system, pay $97 only to the systems you know that have good reviews.

Should you buy Forex assassin?

Here is the thing. Before buying any system, find out what is its review ( Find here Forex Assassin review and experiences).

However, the first important thing is that you should buy a system only when you are planning to use it. I have known people who just buy a trading strategy, but they hardly open it and use it. If you are planning on doing the same, Don’t buy any system to throw away your money!

So, here was my review. In all, the system looks to be fine so far. I really like the part where it saves a lot of time because of the formula it contains. Use the information mentioned here to make decision about Forex Assassin.

By: Rahul G

If you’ve just stumbled upon FOREX global trading then let me say first and foremost,
Congratulations! FOREX global trading has been, since its inception in 1970, one of the most
lucrative self start business opportunites available. I am still baffled as to how this wealth
creating, trading system has not been spread to the masses. I suppose the answer to that
question resides with the same reason you found this article. Starting your own business
takes a certain kind of fortitude and dedication that most people just don’t have. It takes a
certain type of person to have the kind of ambition necessary for success. If you’ve
discovered FOREX global trading recently then it wouldn’t be so silly to assume you’ve tried
other ways to make money on your own. After all, trying to learn more about FOREX global
trading tells me off that bat that you want more out of life.

The fact that you’ve found this article tells me a number of things.

-You want to obtain more financial freedom without some get rich quick scheme.

-You want to have your own legitimate business that you won’t be a slave to.

-You want the ability to work anywhere at any time according to your own schedule.

-You’re an intelligent person who is not afraid to learn an analytical system.

-You’re willing to learn how to work most efficiently, knowing that it will pay off in the
long run.

-You’ve already got what it takes to make FOREX global trading work for you.

My last statement may seem like a bold one to make. The bottom line is, you’ve already taken
the first step to achieving your goals through FOREX global trading by taking the time to LEARN before you EARN.

So let’s get right into it. Let’s learn what FOREX global trading is and how to MASTER it.

1. What is FOREX global trading?

FOREX stands for Foreign Exchange Market. It is based on an international marketplace where
currencies are bought and sold. Only the participants in the FOREX market determine the price
of one currency against another. In other words, the prices of currencies are based upon
supply and demand. This is similar to the idea behind stock price determinations. The
difference? Well you could call it a difference, but I call it an advantage. Currency prices
can not be affected by large buyers in the FOREX marketplace. In the traditional stock
market, when stocks are bought up by institutional buyers, stock prices fluctuate. This is
not a factor in the FOREX global trading market place because it is the largest liquid
financial market available. Between 1 and 1.5 Trillion dollars are traded everyday in the
FOREX market. It’s impossible for an institutional buyer to make a splash. This is a huge
advantage for the “little guy” who doesn’t have a huge budget. If you take the time to learn
how to play the FOREX game, anyone can make a fortune. Success is based on following the
rules of the market and knowing the signs to look for.

2. How does FOREX global trading work?

Currency transactions do not take place on a centralized exchange like the NYSE. It’s a
global market and therefore trades take place all over the world through telecommunications.
You can trade on the FOREX global market 24 hours a day from Sunday afternoon untill friday
afternoon. For GMT time, this is translated to 12am on Monday to 10:00pm on Friday. The
process is a fairly simple one. You buy and sell currencies through dealers. The link I
provide at the bottom of the article will steer you in the right direction for finding a
qualified dealer. Think of a dealer as a broker. The dealers provide quotes for all major
currencies and you decide which currently is a sound investment at any given time. A big
advantage to working with dealers in FOREX global trading is the ability to obtain a line of
credit off of a very small initial rate. You can get a line of credit off of a $500 payment
with many dealers. This leverages your ability for huge gains in the FOREX marketplace. The
tactic is called marginal trading, and although it can be risky, once you know how to play the
game it is the ideal way to “take the house’s money”. The appeal of marginal trading is that
investments can be made with relatively small startup capital. You don’t need a big money
supply to be a big winner in the FOREX global trading business. This also allows for bigger
investments to be made with fewer money transfer costs.

Marginal trading is broken up into “lots”. A “lot” is an amount close to $100,000 that can be
financed with as little money as .5% down. This means for $500 you can leverage a $100,000
investment. – WOW! That is buying power. Unlike traditional investment methods like flipping
real estate, it doesn’t take time to build up your wealth. You can leverage your money to
grow as quickly as you feel comfortable growing.

3. What are some investment strategies for FOREX global trading?

The investment strategies for FOREX trading don’t differ too much from tradition stock market
trading. Strategies are categorized into two divisions – Fundamental Analysis and Technical
Analysis.

Funamental Analysis will look at a particular regions currency and take into consideration
such things as their countries economy, their bank’s current interest rate, inflation rates,
unemployment levels and a host of other factors. It is important to keep in mind that any
anticipations based on fundamental analysis, should be considered against the perceptions of
other investors in the FOREX marketplace. Afterall, it is more than likely that the current
currency price reflects all perceived knowledge of a country’s economical situation.

Technical Analysis is based on graph reading and interpreting signals from financial statistics. The link I give at the bottom of this article gives great insight into this strategy of investing in the FOREX global market. I personally am a big believer in Technical Analysis over Fundamental Analysis. Numbers are open to only so much interpretation and perception. Technical Analysis is a much more black and white way for many investors to choose their winners in the FOREX global market. This is solely my opinion. You can read on through my link below for a far more granular, in depth look at numerous strategies that work and the most efficient ways to employ them.

Again, Congratulations on embarking on one of the most financially rewarding paths you may
have ever found. There is a fortune to gain in the FOREX global market. The most prudent
advice I can give you is to keep learning until you can’t learn any more. It’s a smarter,
more efficient way to build youself up to financial freedom while trading in the FOREX global
market. Don’t go into the marketplace blind. Gain the insight that will reward you tenfold by
continuing your FOREX global trading education. I wish you all the success in the world.

By: Jay Frankel

Trading forex Fibonacci strategy can be a very profitable method of trading if you know your stuff well. Basically the Fibonacci strategy makes use of the various fib levels as support and resistance whereby you can enter your trade and exit your trade.

There are several levels in the fib sequence and the more significant ones are the 0.382, 0.5 and the 0.618. The Fibonacci is made up of retracement and extension as currency pair movement is usually in the form of waves. It is very common for the currency to move to certain point and then retrace back to the Fibonacci 0.382, 0.5 or the 0.618.

Here is how you can trade currency with the Fibonacci strategy

If the price retraces back to the 0.382 and then move up, it will most probably extend its movement to the 1.272 level and this can be your target profit.

If the price retraces back to the 0.5 and then move up, there is a high chance that it will later extend to the 1.382 and then to the 1.618 level.

If the price retraces back to the 0.618 and then move up subsequently, it will be more likely to move straight to the 1.618 level.

Based on this information, you can then use these levels as a target profit. However it is not advisable to trade based on the Fibonacci alone, the Fibonacci strategy usually includes indicators like stochastic and MACD to help you plan your entry and exit more precisely.

By: Kelvin Dee