Forex Day Trading System - The EUR strength against USD in past few days

The major talking points in past few days has been the breaking of 1.3000 level ofEUR/USD..
The USD has shown significant weakness across the board..

However, now the currency is retracing, thanks to some pro $$ fundamental announcements such as "Phily Fed" speech, pro NFP (Non Farm Payroll) news..

However, the experts are saying that when the 5th Elliott wave on EUR/USD will start, the currency pair will very soon touch 1.3500.

Same theory is applicable for other currency pairs such as GBP/USD and USD/CHF and AUD/USD etc..

So whenever you are placing a forex trade using technical indicators such as EMA crossover, RSI etc, keep this point in mind.

Thats all in today's session..Keep visting to learn more on forex day trading online.

Forex day trading system - Trading using EMA and bollinger bands

Many a times when you are trading you,ll observe that market keeps moving in tight range..The candles on 5 min chart become smaller and smaller..If you draw bollinger bands on the chart, they will become tighter and tighter..

This generally happens between 6 PM EST to 12 PM EST as the volatility is very low..One can take advantage when this happens using a particular forex day trading system. Since the market is in a tight range, a breakout will probably happen very soon..Learn this in forex trading online

During breakout, the candlestick will break through upper or lower bollinger band..When that happens, you should get ready to place a trade whenever your confirming indicator confirms..

What could be your confirming indicator? It could be RSI or MACD..However I prefer crossing of a fast and a slow moving EMA (Exponential Moving Average).. A 5 and 10 EMA crossover can be a confirming indicator. When trading on a 5 min chart, you can easily make 15-20 pip profit on a single trade

Thats all in today's session..Keep visiting to learn more on forex day trading system

Forex day Trading System - Continuation of previous message..

In the last post I mentioned that how did I lost in a trade because of fundamental announcement. The announcement broke at 8:30 AM EST and I made the trade at 8:15 EST. The fundamental announcement moved against me and the trade hit stop loss in 5 min..

Now, further to that trade I observed that the currency pair of EUR/USD kept falling and falling and very soon touched 130 pips below my stop loss..

So, here is what I trying to emphasize - learn the importance of stop loss in forex trading online.
If I wouldn't have placed a stop loss, currently I would have been 207 pips in loss..

So, never ever place a trade without a stop loss..This is important for forex day trading or swing trading sytem or in any system for that matter. Let your stop loss be at any point you feel comfortable (on the basis of your technical analysis, such as EMA or candlestick etc..) , but there should be one.

Meanwhile, since it started falling, I placed a trade on USD/CHF pro USD and I am currently 56 pips up..However, per my stop loss, I am still not breakeven since my stop loss is still 15 pips below my entry point..

More details on this trde in another post..Oh, by the way, in the next post I'll give answers to some questions the readers of this blog have posted.

Please keep visiting to learn more on forex trading online.

Forex day Trading System - My trade yesterday on EUR/USD

Let me give you a summary of the trade I placed yesterday at 8:15 AM EST..Please note specifically the time. It was a swing trade which means that I placed the trade using 1 hr chart..My indicators were all lined up such as MACD, RSI, EMA (Exponential Moving Average)
etc.. and Candlestick was bullish..

So, here is what happenned - I placed the trade and within 10 min. I was 5 pips in profit..Good enough..I generally was looking a profit of 100+ pips using this forex day trading system..

5 min. later at 8:30 AM, all of a sudden I started going in loss with rate of 1 pip a second..and with in 15 min my trade touched stop loss of 55 pips..

Now, why this happenned?? In the forex news calender, there was no important news..I checked that before I placed the trade..

No, infact one of the news that broke at 8:30 was important and it moved the entire forex day trade against me and I hit the stop loss. So, learn this in forex trading online that be very watchful when you are about to place a trade close to 8:30 AM.

Infact there is another point I observed that I should tell, but thats in next post.

So, keep visiting to learn more on forex trading online

Forex Day Trading System - FOMC Fundamental Announcement due tomorrow

It was said that market had comparitively thin volatility today since FOMC fundamental announcement is due tomorrow. FOMC is Federal Open Market Committee and they take important decisions on Federal policy such as interest rate hike etc..

So, any forex day trader trying to trade today would have made very little profit..generally when the voltility is low, market generally trades in a range and doesn't trends..The safest forex day trading system in this case is to buy at support and sell at resistance or vice-versa

So, during this time, don't read too much in the EMA (Exponential Moving Average) crossovers,
or MACD divergance or other technical indicators..Also, the candlesticks will be small in size. A typical candlestick in low volatility will be of 10-15 pips.

Thats all in today's session..Visit again to learn more on forex trading online

Forex Day Trading System - What happenned in last Non Farm Payroll (NFP) Announcement?
Hello Everyone.. my this post is after quite a few days..2 weeks perhaps..I was busy with few things.

Did anyone of you notice what happenned during last friday (8-Dec-06) Non Farm Payroll fundamental announcement? Infact it was a combination of the announcement and what happenned few hours after the announcement.

The NFP numbers when declared were Dollar bearish meaning that all the major currencies such as EUR/USD, GBP/USD etc started going up..EUR, GBP all started becoming more stronger to USD..

Enter Mr Henry Paulson..Treasury Secretary. He makes a statement that the NFP numbers that morning were very good for US Economy. He also said that economic growth is going towards sustainable levels..

Can you guess what happenned next? Yes...The market which was going anti-dollar, started going pro $$$ immediaty and started to reverse.

So, this is a classic example of the impact of fundamental announcements on market trend.

So, whenever, you place a trade, you need to consider when important news is going to come out. This is very important in case of forex day trading and a system should cover it.

Thats all in today's session..Please visit again to learn forex trading online