Wednesday, June 21, 2006
Learn online forex trading - What happenned to my USD/CHF trade?
Learn Online Forex Trading - What happenned to my trade on USD/CHF?
Yes, I'll come on to the details of the trade. But before that lets review the technical indicators I have discussed so far -
1. Support and resistance levels - In Online forex trading support and resistance areas tell key areas from where the market direction generally reverses. The more number of times the market reverses from that point, the more stronger that area is. So, definitly if the resistance and support area is broken, the market continues going in that direction.
2. MACD - Moving Average Convergance & Divergance in online forex trading tells the momentem of the moving averages with respective to each other. When lets say that market is making higher highs, but MACD is not, that suggests that the market is losing its steam and may move in other direction.
3. Candlesticks - These are the units that indicate what markets may do next. As I mentioned in earlier post, there are books and books written on Candlesticks and its patterns.
4. Double bottom and double top - A variation ofsupport and resistance level. Generally when a market tests a support/resistance area twice, if it cannot break that area, it moves in the opposite direction. So generally when a double top/bottom are formed, its a good time to enter a trade.
Also, I have posted a lots of other informative articles on online forex trading. Don't foreget to read those if you have not already.
So, I used the above mentioned indicators to do online forex trading. Like I placed on USD/CHF yesterday.
Now lets go through the details of the forex trade I placed -
Yesterday -
Enter the trade at 1.2390 and
Place stop at 1.2420
Place the target at 1.2270
At this point the currency pair is at 1.2334 in a profit of 56 pips.
I have set the target of 1.2270. So, the currency has to move another 60 pips in the direction of my trade before I'll close it.
So, more updates on the trade tomorrow.
So, keep visiting this blog to learn online forex trading.
Yes, I'll come on to the details of the trade. But before that lets review the technical indicators I have discussed so far -
1. Support and resistance levels - In Online forex trading support and resistance areas tell key areas from where the market direction generally reverses. The more number of times the market reverses from that point, the more stronger that area is. So, definitly if the resistance and support area is broken, the market continues going in that direction.
2. MACD - Moving Average Convergance & Divergance in online forex trading tells the momentem of the moving averages with respective to each other. When lets say that market is making higher highs, but MACD is not, that suggests that the market is losing its steam and may move in other direction.
3. Candlesticks - These are the units that indicate what markets may do next. As I mentioned in earlier post, there are books and books written on Candlesticks and its patterns.
4. Double bottom and double top - A variation ofsupport and resistance level. Generally when a market tests a support/resistance area twice, if it cannot break that area, it moves in the opposite direction. So generally when a double top/bottom are formed, its a good time to enter a trade.
Also, I have posted a lots of other informative articles on online forex trading. Don't foreget to read those if you have not already.
So, I used the above mentioned indicators to do online forex trading. Like I placed on USD/CHF yesterday.
Now lets go through the details of the forex trade I placed -
Yesterday -
Enter the trade at 1.2390 and
Place stop at 1.2420
Place the target at 1.2270
At this point the currency pair is at 1.2334 in a profit of 56 pips.
I have set the target of 1.2270. So, the currency has to move another 60 pips in the direction of my trade before I'll close it.
So, more updates on the trade tomorrow.
So, keep visiting this blog to learn online forex trading.
