Sunday, October 29, 2006
Forex Day Trading System - A strong technique to day trade
Forex Day Trading System - A strong technique to day trade
In continuation to last post in which few characterstics of day trading and a typical day trader..In this post, lets go through a simple, yet a very strong and popular forex day trading system.. -
Quite a few day traders use the technique of support and resistance, which as I mentioned in my previous posts is nothing but the points from where the currency pair rebounds consistently..If the downward going currency pair bounces from a particular level again and again, thats a support level and reverse is true for upward currency pair, where the level is called resistence..
Lets see how to use it..
Most of the successful day traders before placing a trade in London or US trading session, generally prepare a trading plan where they analyse a chart (generally a 5 min. or 15 min. chart). The ones that use this technique, they try to identify the support and resistance levels of they day..These support levels will be the one which currency pair is not able to break free for few hours..The support/resistence levels could be a horizontal line or it could be angled (Channel line)..
Once identified, they wait till the time currency pair hits one of these levels. As soon as that happens, it is important to note what happens next..For e.g. if the currency pair is near a support level, and if the support line is broken, then a short trade is opened with stop 5-10 pips above the support level and target as the next support level..Care is taken that the next support level is atleast so much away that its worth placing a trade..If for e.g. the next support is just 5 pips away, there is no point in opening this trade..
In case the support line is not broken and the trade goes in other direction which is typical range trading situation, the long trade is opened and stop is placed below support with resistance as the target..
Please refer to the chart for example..when the pair broke the resistance, the trade could have been placed at price indicated by red circle and a nice sweet profit could have been realized..
Thats all in today's session of Forex day Trading System..An other system will be uncovered in the next post..
In continuation to last post in which few characterstics of day trading and a typical day trader..In this post, lets go through a simple, yet a very strong and popular forex day trading system.. -
Quite a few day traders use the technique of support and resistance, which as I mentioned in my previous posts is nothing but the points from where the currency pair rebounds consistently..If the downward going currency pair bounces from a particular level again and again, thats a support level and reverse is true for upward currency pair, where the level is called resistence..
Lets see how to use it..
Most of the successful day traders before placing a trade in London or US trading session, generally prepare a trading plan where they analyse a chart (generally a 5 min. or 15 min. chart). The ones that use this technique, they try to identify the support and resistance levels of they day..These support levels will be the one which currency pair is not able to break free for few hours..The support/resistence levels could be a horizontal line or it could be angled (Channel line)..
Once identified, they wait till the time currency pair hits one of these levels. As soon as that happens, it is important to note what happens next..For e.g. if the currency pair is near a support level, and if the support line is broken, then a short trade is opened with stop 5-10 pips above the support level and target as the next support level..Care is taken that the next support level is atleast so much away that its worth placing a trade..If for e.g. the next support is just 5 pips away, there is no point in opening this trade..
In case the support line is not broken and the trade goes in other direction which is typical range trading situation, the long trade is opened and stop is placed below support with resistance as the target..
Please refer to the chart for example..when the pair broke the resistance, the trade could have been placed at price indicated by red circle and a nice sweet profit could have been realized..
Thats all in today's session of Forex day Trading System..An other system will be uncovered in the next post..
Sunday, October 22, 2006
Forex Day Trading System
Online Forex Trading - Forex Day Trading System
Hello Everyone..Few days back I received a comment from Charles where he asked quite a few questions on Forex Day Trading as to who should do it..What are its limitation, best day trading system etc..
That gave me thought on starting a series of messages that will give all the esteemed readers of this blog more insight on day trading since most of the traders in the world fall in this category.
So, in this post, I'll give you some details on this category of trading..
As I mentioned in one of my previous messages, a day trader is the one who has the trade open for few minutes to few hrs, generally the trade is closed on the same trading business day..So, if you are trading US session, your trades will open and close between 8 AM EST to 5 PM EST. You'll try to make profit of very small moves and typically you will close profit from 10 to 25pips..
Since, its a day trading, the trader uses a smaller duration chart - 5 min or 15 min or 30 min.
Never or rarely a 1 hr chart or above..Since, you need to get in the trade in and get out very quickly..
This trading model is very suitable for people who can focus on the charts for the entire duration of the trade..So, if your trade opens at 9 AM EST, then you should be with the charts till the time the trade closes since the smaller the duration of chart, the more volatile it will be.
There are quite a lot forex day trading system available or commonly used. Some are based on Fibonacci levels, some on moving averages and some on support and resistance..
We'll try to go through these models in the days to come..So, keep visiting this blog again and again to learn more.
Since in next few days a lot of important information will be shared, I'll suggest you to add this site to your favourites or add the RSS feed to your homepage.
Hello Everyone..Few days back I received a comment from Charles where he asked quite a few questions on Forex Day Trading as to who should do it..What are its limitation, best day trading system etc..
That gave me thought on starting a series of messages that will give all the esteemed readers of this blog more insight on day trading since most of the traders in the world fall in this category.
So, in this post, I'll give you some details on this category of trading..
As I mentioned in one of my previous messages, a day trader is the one who has the trade open for few minutes to few hrs, generally the trade is closed on the same trading business day..So, if you are trading US session, your trades will open and close between 8 AM EST to 5 PM EST. You'll try to make profit of very small moves and typically you will close profit from 10 to 25pips..
Since, its a day trading, the trader uses a smaller duration chart - 5 min or 15 min or 30 min.
Never or rarely a 1 hr chart or above..Since, you need to get in the trade in and get out very quickly..
This trading model is very suitable for people who can focus on the charts for the entire duration of the trade..So, if your trade opens at 9 AM EST, then you should be with the charts till the time the trade closes since the smaller the duration of chart, the more volatile it will be.
There are quite a lot forex day trading system available or commonly used. Some are based on Fibonacci levels, some on moving averages and some on support and resistance..
We'll try to go through these models in the days to come..So, keep visiting this blog again and again to learn more.
Since in next few days a lot of important information will be shared, I'll suggest you to add this site to your favourites or add the RSS feed to your homepage.
Wednesday, October 11, 2006
Learn Online Forex Trading - Tomorrow's Forex Day trading on EUR/USD
Learn Online Forex Trading - Forex Day Trading tomorrow on EUR/USD
Hello Everyone..Most of the forex traders are day traders which means that they place trade for only for few hours. Generally they trade either during UK/London market ( 2 AM to 10 AM EST) hrs or during USA market hours (8 AM to 5 PM EST).
For all the day traders - All of you who are watching the 1 hr EUR/USD chart, you can see that EUR/USD had quite a rally from 1.2766 to 1.2504 in a span of a week. But now if you see here are few notable points -
1. The currency pair is showing an MACD divergence. This means that their is a probablity that this rally has tired.
2. On the daily Chart, the currency pair is seeing a support at 200 EMA.
3. On the daily chart, the currency pair is seeing a strong support at 1.2500. A level that the currency pair has not been able to penetrate since June this year.
So, what I am trying to say is that the currency pair is at a very strong support and may start seeing a reversal. So, before going short on online forex trading, get a very strong conformation signal. However as I have mentioned in the past, once the support is broken, the currency pair falls rapidly.
Thats all in today's session on online forex trading. Keep visiting again and again to learn more on online forex trading.
Thursday, October 05, 2006
Learn Online Forex Trading - Non Farm Payroll (NFP)
Learn Online Forex Trading - Tomorrow's NFP (Non farm Payroll) declaration
Hello everyone..Tomorrow is NFP (Non Farm Payroll) declaration which as I explained earlier is one of the most volatile fundamental announcments..A typical NFP declaration moves all the USD based currency pair in the range of 90 to 150 pips in just a matter on 1 min.
So, my suggestion will be to close all the trades by 7 AM tomorrow. My AUD/USD trade was in 35 pips profit. I have closed it already since I am aware of the burn this fundamental announcement can cause.
The day traders should be very careful while doing day trading. However the swing traders can decide if they want t take this risk since I am assuming that swing traders tarde on 1 hr chart.
Its advicable to close the trade well in advance because during NFP announcement the trading stations don't open any new trade or close open trades immediately because of volatility.
Thats all in todays session of Learn Online Forex Trading. Keep visiting again.
Hello everyone..Tomorrow is NFP (Non Farm Payroll) declaration which as I explained earlier is one of the most volatile fundamental announcments..A typical NFP declaration moves all the USD based currency pair in the range of 90 to 150 pips in just a matter on 1 min.
So, my suggestion will be to close all the trades by 7 AM tomorrow. My AUD/USD trade was in 35 pips profit. I have closed it already since I am aware of the burn this fundamental announcement can cause.
The day traders should be very careful while doing day trading. However the swing traders can decide if they want t take this risk since I am assuming that swing traders tarde on 1 hr chart.
Its advicable to close the trade well in advance because during NFP announcement the trading stations don't open any new trade or close open trades immediately because of volatility.
Thats all in todays session of Learn Online Forex Trading. Keep visiting again.
Sunday, October 01, 2006
Learn Online Forex Trading - Forex day Trading - What is it?
Learn Online Forex Trading - What is forex day trading?
Hello Everyone..I am sure you might have run into terms such as forex day trading, swing trading etc..And at the same time, would have imagined what are these forex trading styles and what factors to consider when trading in these styles?
This message is to educate more on these 2 trading styles -
1. Forex day trading - forex day trading or also known as currency day trading is style of traders who open the forex trade and close it on the same trading day which means the trade is open only for few hours. This forex trader is looking to trade the fundamental news such as nfp (Non farm payroll) or other fundamental news or is looking for taking advantage of small currency moves on the basis of technical anaylysis. Few characterstics -
a. General forex trading targets - General targets are 15-25 pips depending on the currency pair traded. Such as USD/CHF trades will yield more profit as against AUD/USD pair. Remember, the more the volatility, the higher will be stop loss.
b. Trading charts used - Generally the forex trades are placed after referring to 5 min or 15 min. charts.
c. General trade cycle - The general duration for which a typical forex currency day trade is open is 2 to 5 hrs afcter which it is closed.
d. General trading times - Between 2 AM EST to 12PM EST.
2. Forex Swing trading - A forex trading style where the trade is open from few hours to few days. A lot of focus is given on technical analysis to place trade like these. Since the trades are open overnight, due consideration is given to overnight interest rates also. Few characterstics -
a. General forex trading targets - General targets are 100-150 pips. The more volatile the currency pair is more profit it will yield. EUR/USD and GBP/USD are used a lot for swing trading.
b. Trading charts used - Generally the forex trades are placed after referring to 1 hour or 4 hr charts.
c. General trade cycle - The general duration for which a typical forex currency swing trade is open is from 8 hrs to 4 to 5 days after which it is closed. I generally don't keep the trades open for the weekend.
d. General trading times - Can be between any time of the day since the focus is on technical analysis and not much on fundamental analysis.
I generally trade both forex day trading and currency swing trading depending on what technical analysis is saying. When doing day trading, focus on the pips spread also on the curency pair you are trading since in day trading the profit margin is small and the pip spread is significant part of the overall profit.
Thats all in this session..please keep visiting this site to learn more on online forex currency trading.
All of you who have a website, please feel free to link to this site. It will be advantageous to you as well as me since this is a very high ranking site on google (search nfp forex on google to see..:-)..It ranks 3..:-)), linking to this site will increase your site's ranking. To me, it will bring more visitors to my site.
Visit again to learn more on online forex currency trading.
Hello Everyone..I am sure you might have run into terms such as forex day trading, swing trading etc..And at the same time, would have imagined what are these forex trading styles and what factors to consider when trading in these styles?
This message is to educate more on these 2 trading styles -
1. Forex day trading - forex day trading or also known as currency day trading is style of traders who open the forex trade and close it on the same trading day which means the trade is open only for few hours. This forex trader is looking to trade the fundamental news such as nfp (Non farm payroll) or other fundamental news or is looking for taking advantage of small currency moves on the basis of technical anaylysis. Few characterstics -
a. General forex trading targets - General targets are 15-25 pips depending on the currency pair traded. Such as USD/CHF trades will yield more profit as against AUD/USD pair. Remember, the more the volatility, the higher will be stop loss.
b. Trading charts used - Generally the forex trades are placed after referring to 5 min or 15 min. charts.
c. General trade cycle - The general duration for which a typical forex currency day trade is open is 2 to 5 hrs afcter which it is closed.
d. General trading times - Between 2 AM EST to 12PM EST.
2. Forex Swing trading - A forex trading style where the trade is open from few hours to few days. A lot of focus is given on technical analysis to place trade like these. Since the trades are open overnight, due consideration is given to overnight interest rates also. Few characterstics -
a. General forex trading targets - General targets are 100-150 pips. The more volatile the currency pair is more profit it will yield. EUR/USD and GBP/USD are used a lot for swing trading.
b. Trading charts used - Generally the forex trades are placed after referring to 1 hour or 4 hr charts.
c. General trade cycle - The general duration for which a typical forex currency swing trade is open is from 8 hrs to 4 to 5 days after which it is closed. I generally don't keep the trades open for the weekend.
d. General trading times - Can be between any time of the day since the focus is on technical analysis and not much on fundamental analysis.
I generally trade both forex day trading and currency swing trading depending on what technical analysis is saying. When doing day trading, focus on the pips spread also on the curency pair you are trading since in day trading the profit margin is small and the pip spread is significant part of the overall profit.
Thats all in this session..please keep visiting this site to learn more on online forex currency trading.
All of you who have a website, please feel free to link to this site. It will be advantageous to you as well as me since this is a very high ranking site on google (search nfp forex on google to see..:-)..It ranks 3..:-)), linking to this site will increase your site's ranking. To me, it will bring more visitors to my site.
Visit again to learn more on online forex currency trading.
