Category Archives: Forex Trading Articles

Forex Trading Articles, General Forex

Benefits of Using Metatrader Indicators

Today is Metatrader indications. It’s used worldwide by both experienced and fresh foreign exchange traders. You will find lots of Metatrader indications accessible available on the market by anyone wanting to use it. The applying has the advantage of enabling its customers to earn significant revenue by working smartly because they plough their way with the foreign exchange exchange industry. Unlike in the past before technology was applied in foreign exchange, the burden of labor the first is likely to grapple with has reduced with a bigger margin.Besides the proven fact that the characteristics are extremely user-friendly, individuals who’re working their method to take part in the foreign exchange market may also easily travel through the stated market too without breaking a sweat. However, many are a little skeptical especially individuals who don’t know what these Metatrader indications are. Read onto be aware of benefits that exist should you choose to find the aid of the unique foreign exchange buying and selling Metatrader.

1.this program allows customers from around the globe to have the ability to utilize it. It features a built-in option that causes it to be possible to make use of different foreign currencies. As a result you may be residing in Kenya but still have the ability to trade in Europe. Additionally to integrating various foreign currencies, Metatrader indications usually allows using historic information although undertaking backup testing.

2.This program uses large historic data when you are performing some back testing. Also, every single data may have their very own support that may be available at the server from the Metatrader.

3.Metatrader indications happen to be designed with advanced home security system unlike what you might have heard. The machine causes it to be essential for each user to possess multiple authentications. This allows the applying to produce an environment where traders may have a feeling of security while buying and selling without needing to be worried about the options of breaches while online.

However, don’t expect this program is perfect. You may also face a few disadvantages while using the metatrader 4 indicators. It might only base its choices around the recommendations that you simply set just before using this program. You will find also occasions the Metatrader indicator wouldn’t give immediate reaction to the foreign exchange market particularly if there it’s expensive news.

Basic Forex, Forex Articles, Forex Trading Articles, General Forex

No “Definite Formula” In Forex Trading

No “Definite Formula” In Forex Trading
Anyone who has spent any amount of time trading Forex will tell you that there is no “sure formula”, or one indicator, method, strategy, or system that will give you forex trading profits 100% of the time. In fact, a consistently profitable trader will be more likely to tell you that losing is as much a part of trading as winning.

But as shady brokers love to inflate the idea of getting people to open forex accounts and hope for an eternal wellspring for humanity, there is no shortage of trading amateurs and pros alike who continue to believe in a one-pan plan for profitability.

Here are three reasons why you’ll have better luck being the first man (or woman) to reach the sun than discovering the “sure formula” for forex trading:

1. No one can be prepared for ALL the uncertainties of the market.
One of the advantages of trading forex is that the bajillion factors that move currencies make it difficult for any individual or group to influence price action over a long period of time.
Unfortunately, this also makes it more difficult for traders to predict future price action.

Unless you get a superpower that lets you know what previous central bankers and economic influencers would say; warn you about natural disasters and ensuing terrorist attacks, or prepare for similar circumstances, and you won’t find a definitive formula any time soon.

2. People drive markets.
At least for now. Although mechanical trading systems, in general, have gained popularity over the last few years, humans still control the ebb and flow of the forex market.

Reasons Why There Is No “Definite Formula” In Forex Trading

Human behavior is one of the reasons why we still see trading opportunities, where the price does not reflect its value based on available data and existing market themes.

The daily multiplied scenario will leave us with an unexpected mix of potential price reactions.

3. No strategy is profitable in ALL trading conditions.
Those who have spent some time with the markets know that, like human behavior, there are patterns that tend to repeat themselves on charts.

EUR/USD may react to Stochastic’s signals and trade in the 100-pip range for days. Likewise, AUD/JPY can be counted on to bounce lower from a retest of the 100 SMA.

But what if the pattern ends and the price switches to another pattern? Most trading systems only work well until the price shifts into another pattern. Constant shifts in trading conditions and the unpredictable timing of their occurrence make it difficult for traditional technical tools to be reliable all day every day.

It takes wisdom to spot changing patterns and to identify which strategies will yield profits.

Just because there are no indicators 100% doesn’t mean you can’t be profitable trading forex. There are those who can trade full time and even more who are part time traders and are satisfied with consistent profits.

The key is controlling your risk. Since you can’t get rid of them, the least you can do is fully understand how margin trading works and learn proper risk management.

Forex Trading Articles, General Forex

MOST COMMON TYPES OF FOREX MARKET ANALYSIS

1.  Fundamentals
Forex fundamentals are largely centered around currency interest rates. This is due to the fact that interest rates have a considerable effect on the forex market. Other fundamental factors include such as gross domestic product, inflation, manufacturing, economic growth activity. However, whether other fundamental releases are good or bad is less important than how they affect the country’s interest rate.

Traders reviewing fundamental releases should keep in mind how they may affect future interest rate movements. When an investor is in risk-seeking mode, money follows yield (currencies offering higher interest rates), and higher rates can mean more investment. When investors are in a risk-adverse mentality, money leaves the yield for safe-haven currencies.

2 . Technical
Forex technical analysis involves looking at patterns in price history to determine higher probability times and places to enter a trade and exit a trade. Consequently, technical analysis in forex is one of the most widely used types of analysis.

Because FX is one of the largest and most liquid markets, moves on the charts from price action generally provide clues to hidden supply and demand levels. Other patterned behavior such as which currency is trending the strongest can be gleaned by reviewing price charts.

Other technical studies can be carried out through the use of indicators. Many traders prefer to use indicators because the signals are easy to read, and it makes forex trading simpler.

Technical versus fundamental analysis in forex is a widely debated topic. There is no one right answer to the question which type of analysis is better and traders tend to adopt one, or a combination of both, in their analysis.

3.  Sentiments
Forex sentiment is another very popular form of analysis. When you see sentiment heavily positioned in one direction, it means most traders are already committed to that position.

More astute traders will analyze retail sentiment as well as sentiment at the institutional level. Senior Analyst Tyler Yell explains how traders can analyze Commitment of Traders (CoT) reports for clues about how the institutional market is positioned and how to apply this analysis to their trading analysis.

Forex Trading Articles

Forex Trading Breakouts Technique

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Trading in a market that is trending strongly is very profitable. Trend Follower always observes trend direction and strength to get the most appropriate entry opportunities. But did you know, if the best way to get maximum profit from a strong trending condition is with the Breakout technique?

Breakout in forex is basically a price breakout from important levels, such as the highest (High) or lowest (Low) price, Support Resistance, Supply or Demand Area, to psychological levels. The following is an example of a Downtrend that is strong and marked by the formation of Lower High levels (lower High levels) and Lower Low (lower Low levels).

After breaking the first Low, the price slid down and posted a decline of 582 pips, starting from the top of the third High. Another example can be seen in the price breakout that occurs at the following support levels

If measured by the tools provided above, the decline in prices since breaking the support reached 5.93% or around 725.4 pips. Isn’t that amazing? Thus, it can be concluded that price movements that break important levels tend to continue in a strong trend forward. When compared to the Trend Following trading method which relies on signals of the end of a temporary correction, the Breakout technique in forex is more promising for opportunities, because it is usually driven by market psychology which universally recognizes the potential for significant movements after breaking of important levels. On the other hand, trend continuation that occurs after the correction ends are usually temporary in nature, or it is easy to return to a corrective move when the market fails to maintain sentiment. This is of course different from the strong movement after the Breakout, because prices will usually continue to slide in a trend before starting to correct.

Trading with Breakout Techniques

In the Breakout technique during a Downtrend, first determine the Support level, then the current lowest level (Low). If the Downtrend is strong, the price will definitely form a new low so that the Downtrend can continue. The most effective technique for entry breakouts in this situation is to use a pending order, which is a sell stop or sell below the current market price. The entry (sell) level should be determined below the current low. Meanwhile, for Breakout during an Uptrend, look for the last Resistance and High levels. Then use a Buy Stop Pending Order to open a buy order above the current price.
If you follow the principle of an aggressive trader, the target sell entry with a Pending Order Sell Stop can be placed as close as possible from Low 1.22156, possibly following the minimum distance (Stop Level) determined by the broker. However, if you are a conservative trader, the entry could be further than 1.22156 or even waiting for confirmation, whether from Price Action signals or technical indicators.
The second support appears to be located in the range 1.21785. You can set a Sell Stop entry target in that range, then determine the exit point by setting Stop Loss and Take Profit according to your ideal Risk / Reward Ratio. Say you adjust your Stop Loss based on the last resistance, then the possibility of SL is in the area of ​​1.24162. With a 1: 2 ratio, Take Profit will take place at 1.17031. Beware of False Breakout Traps Even though the Breakout technique in forex is very promising, it does not mean that there are no risks to watch out for. Every strategy has weaknesses that need to be taken into account, as well as this Breakout technique. Many traders who feel attracted to Breakout techniques in forex are often fooled by False Breakouts, which is when the price has broken through an important level but then reverses direction and does not continue the break.
This is why, placing a Pending Order in a proper way of trading entry is very important. This reason is also why conservative traders do not like to place entries too close to the last Low. In this case, the way to enter trading with the next price support is enough to eliminate the False Breakout trap in forex, because this area is an important range that is difficult to penetrate by mere corrective movements, or when the price is not supported by strong momentum. You can also avoid the risk of False Breakout in several alternative ways, including: Look at a larger Time Frame. If the Breakout also occurs at a larger Time Frame, then the validity of the Breakout will be more confirmed. Confirm with Price Action. Pay attention to what candlestick patterns are forming at important levels that the price is trying to break. If the candle forms a reversal pattern such as Pin Bar, Doji, Engulfing, and Three Inside (formations in the Bull Trap pattern), then you should prepare an entry trading method with a reversal strategy or not enter the market at all. To be able to enter with the Breakout technique, confirm with the shape and color of the candle in the direction of the Breakout. If the above Breakout means wait until 2-3 bullish candles are formed that close above the Resistance. Likewise, for a downward breakout, it can be confirmed by several bearish candles under Support. Use helper indicators. There’s nothing wrong with using indicator signals to anticipate False Breakouts. You can instead take advantage of the use of indicators to display graphs that represent mathematical calculations of past price movements. Types of indicators that can help you avoid False Breakouts are Oscillators (RSI, Stochastic, CCI, MACD, etc.) and ADX; Oscillator because it can show momentum, ADX because this indicator can show trend strength. The principle is easy, if the momentum or the strength of the trend is up, then the price will still have the impetus to continue the trend. However, if the momentum or trend strength is too high

Forex Trading Articles, General Forex

Best Time To Trade Forex

Often novice traders assume that any time is a good time for trading, but this is not right. The movement of the forex market is strongly influenced by forex trading hours in the global financial markets, namely:
– Tokyo session
– London session
– New York session

Trading activity on the forex market hours in the London session more than the other sessions. In addition, there are certain days where the activity of market movements will occur more.

From the following table we can see moving average pips every day of the week:
Currency Sunday Monday Tuesday Wednesday Thursday Friday
Best Trading Time

We can see from the table above, that in those days in the mid-week movement occurs more frequently, then the day is what is the best day for forex trading.

When you look at the schedule on the forex market, we see that Friday was a pretty busy day until at 12:00 ET (00:00 pm or Saturday), after which the activity will drop dramatically until the close of the New York market hours at 5 : 00 pm.

The days where there is a high market movement this is the best time for forex trading because it is likely to get into a bigger profit.

Pick The Right Time To Trading

Although the forex market is open 24 hours a day does not mean that an activity transaction (price movements) in a non-stop at any time. Therefore, it is important for traders to wisely manage and choose the best forex trading hours.

It is not possible for a trader to trade every day in every session forex. Everyone needs a break, as it is for the trader.

In addition to learning about the forex trading strategies and ways, each trader must understand exactly WHEN the hours of the best forex trading, or vice versa can also be said: Every trader must understand WHEN schedule forex market is not appropriate for trading.

By knowing and running the trading activities at the right time will help increase opportunities for profit / profit in trading.

Considerations Choosing the Best Forex Trading Hours:

The time when the two trading sessions take place at the same time (overlap). Usually at this time of financial news broadcast anyway and the result would be the movement of the market in a particular direction. You can easily search for information on the opening hours of the forex market.

European Session (London) tend to be more active than the other sessions.

On the days in the middle of the week usually occur more market movement, where the difference in the price difference will be large enough for couples major currencies.

Schedule Missing Forex Trading Right For:

Sunday where most people rest and not work

Friday afternoon American time (ranging on Saturday 1: 00-5: 00 pm), which decreases market liquidity due to a transition period to the end of the week.

Feasts where many people enjoying a day off

The days where there are certain major events

You can use this information to set up and choosing the right forex hours for you to undertake trading activities, but if you do not have time during the hours recommended, do not be discouraged. There are other ways that can be used, for example using the strategy as ‘swing trader’ or ‘position trader’.

After you determine when the best time for forex trading, there are also other things that you should know, that the effect of the news on the forex market. Use the forex calendar for information on economic news broadcast because often this will lead to currency price movements is very large in a short time. In addition, also learn what the most influential forex news on the market.