Tag Archives: Technical

General Forex

Automated Forex Technical Analysis Trading Software on Mt4

There’s a numerous choices of technical analysis trading software, however don’t assume that every software provides traders with effective and trust-able trading features and options. Among several trading platforms, one shines out the most: MetaTrader 4.

Forex Technical Analysis Trading Software

Metatrader 4 offers you strategy testers, expert advisors, together with indicators, which allow fx traders to conduct evaluation tests on their personal trading systems with past historical market info. Advanced traders who know programming will find themselves able to write their trading system into a program and run their system on the past data to see how well their trading system performed in the past by just a press of the button.

To make things far more convenient, the open sourced software metatrader 4 have a lot of developers creating apps for the application. Introducing a type of software range we find it extremely useful are tools which allow the trader to draw lines on the chart and to instruct the lines to perform trade entry and exit executions automatically when price touches or breaks through them. This software is commonly mentioned in the community called trendline EA or trendline break EA. The drawing of line is all that is required for the trader to automate his trading work.

Explaining in more detail, you draw lines in the chart manually by hand, and when price breaks across or touches the line, will instruct the technical analysis trading software to make trade entries or exits. This will effectively frees up the forex traders’ time to look at the computer screen while waiting for the signal.

The drawing of lines now serves two functions, to perform technical analysis and also to execute trade entries and exits from there. Lines on the Mt4 charts are not just a visual marking tool but also the traders’ automated technical analysis trading software. In other words, they made most of manual forex trading systems to perform automated.

Look at the possibilities of how one can trade forex market in spite of having a day job. Trading this classical chart patterns in the past requires constant monitoring of the market, but now trading these technical chart patterns on automation are made possible.

Time-tested and commonly mentioned in most of technical analysis trading reports.

1) Breakouts

2) Support Levels And Resistance Levels,

3) Envelope Patterns Or Channels Trading

4) Triangles Chart Patterns- symmetrical triangle, ascending or descending triangles

5) Trading based on 2 stochastic lines and other oscillators (as a trade filter, entries or exit)

6) Fibonacci levels – application of these indicators enable forex traders to make a profitable entry into the market.

Technical Analysis Trading Software Offers Trade Versatility

There are many more indicators for forex traders to incorporate into their manual fx systems and made automated. Whether you want them to work as a trading filter, entry signal line or exit signal lines, it is now possible with the many automated technical analysis trading software on metatrader 4 or Mt4.

Most importantly, automated technical analysis trading software must be able to consider the unique experiences and personality of the trader putting on the trade position- the ‘edge’ that enables the trader to combine objective chart information with his own understanding and experience so that these crucial information will be passed onto and used by the software to perform key trading processes like trade signal recognition, trade entry and exit and trade management.

This technical analysis trading software will make forex trading in mt4 works in a similar fashion just like an actual manual trader trading the markets (and if not even better).

Forex Trading Articles

Forex Technical Analysis – A Secret to Profitable Forex Trading

Forex Technical Analysis or chart analysis is a process of forecasting price movements by analyzing market data like, historical price trends, volumes, open interest, and so on. Forex Technical analysis is based on the principal of ‘history repeats itself’; however, it does not result in absolute predictions about the future.

Instead, observations made through Forex chart analysis will help Forex traders and investors predict and anticipate what is likely to happen to prices over a period of time.

Before this jargon makes you nervous and you develop cold feet, let me assure you that anybody can learn how to day trade in Forex. You would be quite surprised to see the kind of people who make a living, forex trading the market. I am the biggest example I know.

Till about 7 or 8 years back I had no clue about Forex. But over time I learnt the skill and now can confidently say that I am making a better than decent living as a forex trader and enjoy the challenges and comforts of forex Forex trading immensely. I trade in the cafes, on holidays, on the mountains and absolutely whenever and wherever inspiration strikes!

What you must understanding and absolutely need to be convinced about is that Technical Analysis skill is the key to succeed in day trading. And it took me time to learn it. If you want to succeed in forex trading, learning forex chart analysis should be your top most priority.

Forex technical analysis is not just about throwing up a bunch of observations and indicators on your charts, and trading when the indicators align in the same direction. This is not Forex technical analysis, because it is not you who is applying your mind to it, it is the computer that is on the job. As a forex trader it is your job to analyze the markets.

And the only way to do this is by using price action. Price action begins as you start understanding the importance of price patterns.

If you want to be a successful forex trader learn forex technical analysis skill to trade price action. Once you understand that all you should trade forex on a plain chart with no indicators, the profits will start showing. And you could become an expert at Forex trading too!

General Forex

Stock Market Technical Analysis-Trend Following Can Mean Big Profits

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One of the reasons technical analysis works, is because stock prices do tend to move in a particular direction for quite some period of time. This direction can be up, down, or sideways. Newton’s first law of motion applies to this quite well. It states there is a natural tendency for objects to continue in the same direction. Momentum is another word to describe this phenomenon.

The most important tool in stock market technical analysis is the trend line. When a stock is following along a trend line, it will have a tendency to continue moving along that line. Properly analyzing this line will give you the ability to spot a trend. At this point, you will have an immediate edge over a majority of participants in the market. Putting as many factors as possible in your favor before taking a position in the stock market, is crucial to long-term success.

Marketwise, an uptrend is identified by a series of successive higher highs and higher lows. A downtrend is a series of successive lower highs and lower lows. Spotting an uptrend using a trend line involves drawing and connecting at least 3 lower points along the line. A downtrend line is drawn by connecting at least 3 higher points. In a sideways trend, both upper and lower points are pretty much parallel, straight horizontal lines.

The longer a stock has been moving in a trend, or inside a parallel channel, the stronger this trend most likely will be. On a breakout from a price channel, you want to see a major increase in volume. This helps to confirm the breakout as most likely being successful. Trends on a weekly or monthly chart, generally are more reliable than trends on charts of shorter durations.

My next article on stock market technical analysis will be about volume. Volume is a key factor, and analyzing it properly can be worth a fortune. Volume tells you what big institutions such as mutual funds, pension funds, hedge funds, and other big stock market participants are doing.

General Forex

Technical Indicators That Every Forex Traders Should Use

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Technical analysis in Forex Trading is not just about reading charts. There is no denying that charts comprise a huge part of technical analysis. But price movement is only one side of the forex trading story.

Technical indicators or observations from forex technical analysis help the trader or investor to interpret the price movement of a particular currency. Technical indicators tell us whether the price movement is strong or there is possibility of it being reversed. With the help of forex Technical analysis we can even predict the next price movement of any chosen currency.

There are several different types of technical indicators and every forex trader uses what suits his sensibilities best. However majority of forex traders will vouch for the fact that there are three main technical analysis indicators that every currency trader must use.

Moving Average Lines: Moving average lines indicate whether the trend is bullish, bearish, or nonexistent. Moving Average Lines Forex technical analysis also indicates support or resistance levels. The 20-period moving average line is standard for forex and currency traders.

Bollinger Bands: Bollinger bands are trading bands that are positioned around a currency price and the 20-period moving average line. This kind of forex technical analysis indicates whether a currency is trending as well as the points at which a price movement may shift the gear and go reverse. Bollinger Bands have proved to be very helpful for illustrating support and resistance as well as the level of price change of a currency.

Average Directional Index also commonly referred to as (ADX is a technical analysis that works well with both the above mentioned indicators, i.e. the moving average lines and Bollinger Bands. The ADX primarily indicates the strength of a trend. If a trend is strong, it is likely to continue. If it is weak, it is likely to reverse.

For beginning forex trading the three indicators in this article will provide a good foundation for charting. Using candlesticks in conjunction with the above indicators and you will notice that it provides a clear cut view of the market.

General Forex

Forex Technical Analysis And Its Importance in FX Trading

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Like the stock market, Fx trading market also passes through various stages and many ups and downs at different periods of time. Diverse price movements of the currencies in the past help the forex brokers in analyzing the future trends. There are a lot of forex trading technical analysis tools that are used to analyze future fx trading situation, such as indicators, softwares, market trends and charts.

Those who are into foreign exchange training must have an idea about forex technical analysis. A lot of traders in fx trading lose a lot more than they usually profit, the reason behind that is the lack of proper knowledge about the forex technical analysis. Forex technical analysis is very important tool in FX trading which can help forex brokers to predict the future price movement of the currency they are trading in, on the basis of the past data that is well compiled and stored.

The primary thing to be aware of about forex trading is that it is the combination of both fundamental and technical analysis. Fundamental analysis determines the existing price of any currency through diverse factors such as: demand, supply, economic conditions, fundamentals, political condition of a country, market sentiments etc.

While forex technical analysis method is used to predict the changes in foreign currencies with the help of various samples, charts and indicators. It generally forecasts the direction of the market and provides precise information about currencies. Forex charts show the existing trading state in the forex trading market while forex technical indicators are used for allocating diverse goals to establish the forex trends. However, most beginners in the forex exchange trading are not able to make use of forex technical analysis because of the use of mathematics and statistics in it.

It is seen that the trends that were seen in the past usually occur in future too with hardly any difference and that is when the forex technical analysis comes into limelight. In short, forex technical analysis can be a great support in the forex exchange trading and maximizes the profits if used intelligently and with complete knowledge!