Forex Trading Articles

Forex Support and Resistance

Most of the time, Forex traders come across Forex terms of support and resistance. Therefore, today we are going to discuss what are “Forex support” and “Forex resistance”.

These two are the most widely used terms and concepts of Forex trading that needs to be given a little attention for understanding.

Everyone have their own method of inculcating Forex support and resistance level, as per their understanding of Forex trade.

Resistance: When the Forex trade moves up and then turns back the highest spot attained by the Forex movement, just before it returned back, is referred to as Resistance.

Support: As soon as the Forex market moves up again the lowest spot from where it started its upward movement – that spot is refer to as Support.

Thus, we can say that support and resistance figures are formed continuously according to the Forex market and they fluctuate oscillate is a regular repetitive movement and Forex market changes are not regular so Oscillate is not the right word with the time. The reverse of this Forex movements indicates the downward trend of the Forex trade.

The most difficult part of support and resistance is the intrigues of support and resistance figures. Sometimes, the support and resistance levels have break-ups and these break-ups are the test references of support and resistance levels.

The test of support and resistance level is indicated using candlestick shadows, which are used to display the figures.

The plotting of support and resistance is not the exact response of the Forex market, but the expected movements of the Forex fluctuations.

Some interesting pieces of support and resistance are – when the market goes by resistance that resistance becomes the support and the price tests of support and resistance level is stronger without analyzing the breaking area.

The support and resistance level helps to measure the Forex trend of the market and make their Forex trading opinions.

The article gives information on Forex support and resistance level to understand the meaning of support and resistance and apply this information while Forex trading.

Forex Trading Articles

Trade Triangle Chart Patterns on MT4

Triangle chart patterns are the most traded chart pattern in currency trading. There are three types of triangles most traded in currency trading:

Triangle Chart Patterns

•symmetrical triangles

•ascending triangles

•descending triangles

Triangle Chart Patterns are Easy to Identify on Forex Charts

Identifying triangle chart patterns is easy when a complete technical analysis has been carried out. Locate 2 higher highs and 2 lower lows. Next, draw a line through them. Join at least 2 lower lows with one line, and 2 higher highs with another line, and you’ll have a nice triangle chart pattern. You have just identified a trade-able chart patterns most traded in forex trading. A minimum of four ‘bounces’ should be observed before this triangle formation can be considered a reliable pattern to trade with.

Research by Thomas Bulkowski and many famous technicians indicate that price often breaks out of the symmetrical triangle ahead of the price at which the 2 trendlines converge, which is labelled the apex. From the point where the triangle begins, research shows that most triangles break out of either the upper or lower trendline anywhere from the 66 percent and 75 percent of the way to the apex, though some triangles break out at the apex.

An important Caveat on Directional Biases

There is one major caveat to know when working with triangle chart patterns. In most technical analysis books, it is found that ascending triangles are described as bullish continuation patterns and descending triangles are described as bearish continuation patterns. From our experience, if you classify triangle chart patterns as such, you are doing a disservice to yourself.

Ultimately, we should not try to predict which direction price will break from triangle chart patterns. That’s not to say that ascending triangles cannot meet their upside breakout targets or that descending triangles will not break to the downside targets. They do.

However, when thinking of these triangle chart patterns in terms of risk/reward and edge, it’s best to treat them without directional bias and take advantage of the principle of range expansion following range contraction instead of the complexity of trying to predict which direction price will break-out.

In fact, you will likely find that some of the best trades will come from triangle chart patterns that break opposite of their expected directional bias. This is because traders who think that ascending triangles will -always break to the upside will be forced to sell their forex contracts as they stop-out when the ascending triangle breaks unexpectedly to the downside, and these traders stoping out, when combined with sellers entering new short-sale positions as a result of the confirmed triangle chart pattern entry will create a positive feedback loop that propels price to achieve the unexpected downside target. Knowing this is a major benefit when anticipating where or how to enter a potential triangle trade.

As such, we should use trendline-break EA found on MT4 to draw not just a buy pending order on a ascending triangle chart pattern, but also sell a pending order on the chart pattern as well. When breakout happens either to the upside or downside, the trader can participate on the breakout regardless of its direction. This process of placing buy and sell pending orders on triangle chart patterns can now be automated by commercialized software or robots.

In regard to where are best to enter trades in triangle chart patterns, we turn back to conservative versus aggressive tactics. An aggressive trader would put on a position immediately as price begins to break above the upper trendline or beneath the lower trendline without waiting for further confirmation signal. Conservative traders have a variety of entry strategies, including entering only as price breaks above a strong bullish breakout candle like a bullish engulfing or beneath a strong bearish candle.

Thanks to technology, there are commercialized robots programmed specially for traders to trade triangle chart patterns on automation. Whether the trader trades aggressively or conservatively, entry based on trendline-breakout or price breaks and closes beyond trend line, each of these style of trading can be personalized and programmed to work in the absence of the trader at the computer screen.

Reducing False Breakouts Trading Triangle Chart Patterns

A time filter can be introduced to reduce the possibility of false triangle break-outs outside the specified trading time frame. Generally, most genuine breakouts happen during active Forex trading hours and 30 minutes after the opening bell of the market session.

Another way is to introduce indicators like ADX and to factor in the ADX values before considering whether to trade breakouts or to fade breakouts. Reducing the likelihood of the false breakout, I will like to see that the ADX is below 15 value for some time. And the longer it stays below 15, it will mean that market is attempting and preparing for a big movement. It will be a very good opportunity to trade triangle chart patterns.

Forex Trading Articles

Guidelines For Beginners to Use Forex Demo Accounts

If you are interested in Forex trading and want to be a part of this complex world then the best advice for you to begin your career with it by being solidly prepared. Learning to trade however in the Forex market is very complicated business. Most of the beginners try to earn huge profits through their first trading experience and this attitude goes wrong.

However, learn how to in Forex trading is very complicated business. So the best way that can take your pressure away is Forex demo account. If you don’t have complete knowledge about Forex trading and you want to play safe then try Forex demo account before investing real money.  Therefore, a new player in this business is able to gain insight knowledge and confidence, and later he can apply the experience that he had gain through the demo account for real money trading.

Like any other business, there are some advantages and disadvantages in Forex demo account.  The initial advantage is learning, you can learn how to trade as well as you can use this platform itself.  A demo account enables familiarity by the basics of trading. However, Forex demo accounts also have some disadvantage. Less pressure and simulated skills are involved in Forex demos; hence it is less constrain to make your best investments.

A demo account enables familiarity by the basics of trading. However, Forex demo accounts also have some disadvantage. Less pressure and simulated skills are involved in Forex demos; hence it is less constrain to make your best investments.

If you are new in Forex trading market, then you should be smart enough at the time of investing in some Forex trading system. There are several automated forex trading systems are available in the online markets which have been cleverly promoted to appeal the beginners but most of the systems are not viable. You have to be careful do not invest in rubbish systems that simply provide simulations other than delivering it.

Demo accounts have every features of a real account; you can use it and get the experience of of real account without putting your money into it. If you want to try the Forex demo, then you need to go online first, then register a demo account and after that you can use the appropriate software.

 

Market Analysis

Daily Deals – Great Deals Await Everywhere!

Daily deals comprise of everything from home appliances, computers, eating joints, airlines, gym, automotive, leisure, toys, books and so much more. And the best part is…these hot deals are available online all the time, 24×7!

Search engines these days are bustling with daily deal results like never before. There are an infinite number of websites where you can register to enjoy a variety of deals like travel deals, vacation deals, restaurant coupons, and last minute deals sent to you on daily basis. There are even some deal sites where signing up is not required and you are absolutely able to visit them without fill any membership form or agreement. For these sites all you need to do is view what the deal of the day is and decide whether or not to buy it. Most deal sites offer you the added benefit of subscribing to their deal alerts to take advantage of great bargains in your area. Receiving these deal alerts in your email makes it easier for you to sort through multiple deals at once, so it is generally an excellent idea to sign up for the alerts.

For foodies, these online deals are like heaven. Food lovers can tantalize their taste buds at pocket friendly prices simply with just a few clicks. All this is made possible by looking up daily deals that are specific to restaurants in your local area, or by choosing a category relevant to the type of food you like. It is not difficult at all to find specials, discounts, and coupons with the help of online daily deal sites.

Daily deal sites not only help you uncover specials going on at a company, but they can assist you in finding good deals from local retailers you never heard about. Getting to know a new retailer allows you to learn about their products & services and hence, results in saving on other products offered by that particular brand. Sorting through daily deals is definitely a great way to gather information about businesses in your own city. A lot of websites are devoted to helping you find the maximum discounts, coolest appeals, and the tastiest food right at your disposal.

There are unbelievable deals found online everyday. If you become aware of what exactly you are looking for, things get easier and as result, you find huge savings. Signing up for daily deal alerts can lead you to fantastic experiences that you would have missed otherwise. The secret to catching these amazing deals is to be upbeat and react quickly before the deal sells out! As popular deal sites have grown substantially, some deals tend to sell out fast. Once the promotion is finished, the sale is gone and you will have to wait until you come across another great deal — which shouldn’t take too long.

So now it is simple to say that daily deals sites have become a huge buzz now days in the market, where shoppers set their eyes before go anywhere else.

General Investing

Oil Gas Investing is Safe.

Many people lost their jobs and few even became insolvent. This was one of the gloomy and heartbreaking recessions affecting the people deeply worldwide. The problem was that the lenders of the money, the rich countries were suffering from the recession which trickled down on the developing and the underdeveloped countries.

The investors who make the investments regularly were affected a lot. The recession came as an axe on these investors cutting down their money which made them suffer from the financial crisis. The people lost hope and many hearts were broken. It was a state of depression for the economy.

Investors were then terrified to invest anywhere. Many people were suffering from the recession and thinking of ways to overcome it. Few had enough cash in their belly to survive while few were on road. People knew that to increase their money they need to invest. So they started searching for different investing opportunity which will give them good returns.

The investors after a long research found that the oil and gas investments are a good option to invest in. The oil and gas investing are sure to give a good financial return. The use oil and natural gas would not be affected enough as they are the key resources of any economy.

We all know that air, water and shelter are the basic needs of a man. In addition to this now there are two more basic needs one is oil and other is natural gas. The oil and gas investing were not affected by the recession as the oil and natural gas are commonly used by the people all around the globe in one form or the other.

After the share market crashed the returns from the oil and gas investing did not sabotage enough. Thus the oil and gas investments are safer as they can guarantee a return even at the time of uncertain financial conditions while investing in equity shares can be risky.