Sunday, November 12, 2006
Forex day Trading System - Continuation to this day trading strategy
Forex Day Trading System - Lets continue our discussion
In our last session we discussed on Pivot points and how they are important...We also went through R1, R2 and R3 (Resistance levels) and also on S1, S2 and S3 (support levels)..Also we looked at how to calculate these..However you don't have to this manually..On the net there are lots of pivot calculators that are available to calculate it automatically...However, you have to supply the open, close and high values..
Now, lets continue going through this day trading system -
This system is primarily used on EUR/USD or USD/CHF currency pairs..What you need is -
1. 5-minute and 1-hour charts for the forex currency pair that you have selected. The 1-hour chart helps define the intraday trend and the five-minute is used for entry and exit.
2. Indicators: The 9 and 18 Exponential Moving Averages on both the 5-minute and 1- hour charts. The MACD on both the 5-minute and 1-hour charts.
Oh..Don't you know EMA (Exponential Moving Average)? Don't worry, we'll go through that in next session...Currently lets go through this forex day trading system.
3. Calculate the Pivot points for the day..S1, S2, S3, P, R1, R2, R3..Once these are calulated, place the lines on these points on your chart.
Now, lets go through the system and learn how to do online forex trading -
When price penetrates a pivot number, it often tries to retrace back to the pivot point it just broke. If it was resistance that was broken, and it does not move back down, but continues to hover just above it, then there are very high chances that there is about to be a jump in the overall price. At the point that it retraces after breaking the resistance, enter a buy order. The stoploss can be just few pips below (On a 1 hr chart, I would suggest the stop to be atleast 20 pips below the resistance line) resistance line. Your limit can be the next resistance level or the point where the 9 EMA crosses below the 18 EMA..
Reverse is true for the trade when the support was broken..Test this strategy and let me know your experience..
Thanks all in today's session..Visit tomorrow to learn a very popular indicator used by forex traders..
So keep visiting to learn forex trading online and forex day trading system.
In our last session we discussed on Pivot points and how they are important...We also went through R1, R2 and R3 (Resistance levels) and also on S1, S2 and S3 (support levels)..Also we looked at how to calculate these..However you don't have to this manually..On the net there are lots of pivot calculators that are available to calculate it automatically...However, you have to supply the open, close and high values..
Now, lets continue going through this day trading system -
This system is primarily used on EUR/USD or USD/CHF currency pairs..What you need is -
1. 5-minute and 1-hour charts for the forex currency pair that you have selected. The 1-hour chart helps define the intraday trend and the five-minute is used for entry and exit.
2. Indicators: The 9 and 18 Exponential Moving Averages on both the 5-minute and 1- hour charts. The MACD on both the 5-minute and 1-hour charts.
Oh..Don't you know EMA (Exponential Moving Average)? Don't worry, we'll go through that in next session...Currently lets go through this forex day trading system.
3. Calculate the Pivot points for the day..S1, S2, S3, P, R1, R2, R3..Once these are calulated, place the lines on these points on your chart.
Now, lets go through the system and learn how to do online forex trading -
When price penetrates a pivot number, it often tries to retrace back to the pivot point it just broke. If it was resistance that was broken, and it does not move back down, but continues to hover just above it, then there are very high chances that there is about to be a jump in the overall price. At the point that it retraces after breaking the resistance, enter a buy order. The stoploss can be just few pips below (On a 1 hr chart, I would suggest the stop to be atleast 20 pips below the resistance line) resistance line. Your limit can be the next resistance level or the point where the 9 EMA crosses below the 18 EMA..
Reverse is true for the trade when the support was broken..Test this strategy and let me know your experience..
Thanks all in today's session..Visit tomorrow to learn a very popular indicator used by forex traders..
So keep visiting to learn forex trading online and forex day trading system.
