Forex Technical Analysis

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

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

Your currency trading strategy will be based to a large extent on forex trading signals. These signals will be activated depending on the market conditions that will make you decide to enter or exit a trade.

Many online vendors will sell you their own forex signals direct to your computer, or even your cell phone. This is a very attractive option if you travel a lot and are not always at your computer.

While these signal services are useful, before you use them you would be well advised to learn how they are generated and what specific parameters are used to decide on the signals. If you don’t understand these fundamentals, your money is at unnecessary risk.

Let me ask you a question: do you know how to use a calculator? Of course you do. Can you tell if the answer it gives you is reasonable or if it is an obvious mistake? If you know something about fundamental arithmetic, you do, and that can save you relying on answers that are completely wrong. The same principle applies with forex trading signals: you need to understand how they are generated so that you can judge the reasonableness of the signals you are getting.

You need to know how they are generated so that you will know whether to trust them. You need to either make and follow your own rules, or objective rules purchased from a trusted source. Are the rules generated using objective tools, such as RSI stochastic crossovers or ADX divergences? If so, that’s good. Don’t depend on subjective indicators like Elliot wave or cycles, as they are much less reliable indicators.

You also want to avoid the trap of making trades based on emotion, and good signals can help you do this. Set the conditions you want for your trades, and then stick to following the signals. When you do set your parameters, make sure you balance the risk/reward in your favor, as that’s how long terms success in foreign currency trading comes about.

Software for Trading Signals

Another alternative is to purchase and use specialized software that generates trading signals for you. But again, I would give you the same words of caution: understand how the software is generating the signals. This way you will always know when trades make sense before you enter or exit them on signal.

Because currency trading is so complex, there are many many things to consider and things to undertake as you trade. It’s for that reason that so many online tools have sprung up to help make trading less time intensive and labor intensive. But my advice is always to study and understand the principles yourself before letting some robot or automated forex trading signal take charge of your success or failure in forex trading.?

By: Martin Miller

Using renko charts to trade forex has been regularly discussed on forums over the last few years. They’re similar to bar charts, the primary difference being that they are not based on time.

On a traditional price chart, an hour candle will form every hour, regardless of how far price travels. On a renko chart, a new bar will only form when price moves a predefined amount. As an example, if a trader inputs a setting of 40 pips per bar, then a new bar will only form every time price travels 40 pips.

The primary benefit of using renko charts is that they eliminate a lot of “noise.” They are able to display trends more clearly by eliminating the traditional bars that form on a time basis. In this way a trader can spot emerging trends without having to strain his eyes, or his brain. When a new bar forms below or above the previous price pullback, it could potentially indicate a continuation in trend.

As beneficial as these charts may seem, a trader is still required to know some technical analysis basics. Surprisingly, renko bars exhibit similar characteristics to regular price bars. Having a knowledge base of price patterns, support and resistance lines, and trend channels can be beneficial when trading renko bars. The more experience a trader has with technical analysis, the more they will be able to truly reap the benefits of renko charts.

Having a solid trading strategy still applies. Using renko charts will not spare you the need to protect your account from risk, and from having to make good trading decisions. It is critical for a trader to utilize a profitable forex trading strategy in order to make money. Having smoother looking charts can ease some rough spots, but only to a point. Getting situated with the right money management techniques, and trading strategy will fill in the rest of the blanks.

By: Yevgeny Katz

The ebook “Forex Trading Machine” is aptly named. The author, Avi Frister, has taken a radical approach to the forex market, bypassing technical and fundamental indicators, the lifeline for many traders, and devised a system that is purely mechanical. If you can trade like a robot his system promises dependable, consistent profits over time.

This ebook falls naturally into two parts. Chapters one to six cover forex basics including an explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis.

Of particular importance are chapters five and six dealing with the psychology of trading and money management.

Why A High Drop Out Rate?

A very important point is made on page 74. After referring to the often quoted statistic that 95% of traders fail eventually and go broke, the author emphasizes that this is not due to the absence of a sound trading system, or special forex trading strategy.

Discipline is the key factor, control over emotion. Fear and greed are the two elements that destroy so many traders. To quote Avi Frister: “Most people get into this venture with the hopes of getting rich quick. The lure of fast money. Make no mistake, it’s the number one ingredient for disaster.”

Hence the desirability of a forex trading strategy that is purely mechanical, without the need of interpretation or judgment calls on what is happening in the market at any given time. If an individual can develop the discipline to simply follow this mechanical system, basically trading like a robot, consistent profits and an ever growing account will be the result according to “Forex Trading Machine.”

From what I have considered in this ebook and put into practice myself, I am inclined to agree.

Three Strategies

Three specific mechanical strategies are outlined. One requires a stop loss of over 50 pips which may not suit everyone considering the amount of equity needed for such a trade. These setups come up just a handful of times a month but the profit targets are usually around 100 pips.

The second strategy will suit many with a stop loss of 20 pips and a profit target of 30-40 pips. This particular setup occurs frequently, perhaps more than once a day on some currency pairs.

The third strategy requires a stop loss of just 15 pips with a profit target between 20 and 40 pips.

In each case, there are minimal considerations and a trader has to just follow a very specific set of instructions, enter the trade, and forget about it. Check it some time later and if it is still running, make a decision on whether to exit or let it run.

The author points out in the introduction to this ebook that the information and trading strategies explained will suit both the beginner and the advanced trader. Certainly the beginner will find the techniques relatively simple and easy to implement. If they can adopt the robot approach and just ‘connect the dots’ there is a high probability they will increase profits consistently over time.

It Depends On Your Mindset

For the advanced trader I am not so sure. It will depend on the mind set. Some advanced traders may not be able to shut off their natural tendency to use technical or fundamental analysis. This will most certainly get in the way and cause problems if they are using the mechanical approach.

Advanced traders who have the discipline to pigeon-hole their various strategies will do well with this system I believe. They may have some trades running using their technical or fundamental indicators and when they see the specific setups Avi Frister outlines, they may choose to trade in a separate account purely using the mechanical method.

The advantage of this approach is a spreading of the risk factor. Using a variety of trading strategies, including technical analysis and on other occasions a purely mechanical approach, will provide a strong trading foundation.

“The Forex Trading Machine” adds another dimension to the aggressive trader’s tool kit.

Title: Forex Trading Machine
Author: Avi Frister
Format: Digital – PDF

By: Michael A Jones