Sunday, June 17, 2007
Forex Day Trading system - Importance of an oscillator
Forex Day Trading system - Importance of an oscillator such as Stochastic
Lot of people try to place trade using a lot of indicators. Well the more the indicators, the less the number of forex trades one can place since one will wait for all the indiactors to line up which will not happen too often.
More than that it also confuses matter. According to me use of 2-3 technical indicators tops is good enough. Let one be your leading indicator such as EMA crossover or the bounce from fibonacci level. The others of maximum two can be your confirming indicator such as MACD divergance or the stochastics or the RSIs.
The best way to use stochastic which is an oscillator indicator is to check if they are in the overbought level or oversold level. If they are in overbought level, then look for opportunities to sell the currency pair. However if it is oversold, look for the opportunity to buy thye currency pair.
Keep the indicators very limited. Remeber the placing of a forex trade on any currency pair such as USD/CHF or GBP/USD or EUR/USD or any currency pair is all about probability..Its not gaurenteed that the trade will be profitable..However the probability of a profitable trade will be high.
Thats all in this message..Keep visiting to learn more on forex day trading.
Lot of people try to place trade using a lot of indicators. Well the more the indicators, the less the number of forex trades one can place since one will wait for all the indiactors to line up which will not happen too often.
More than that it also confuses matter. According to me use of 2-3 technical indicators tops is good enough. Let one be your leading indicator such as EMA crossover or the bounce from fibonacci level. The others of maximum two can be your confirming indicator such as MACD divergance or the stochastics or the RSIs.
The best way to use stochastic which is an oscillator indicator is to check if they are in the overbought level or oversold level. If they are in overbought level, then look for opportunities to sell the currency pair. However if it is oversold, look for the opportunity to buy thye currency pair.
Keep the indicators very limited. Remeber the placing of a forex trade on any currency pair such as USD/CHF or GBP/USD or EUR/USD or any currency pair is all about probability..Its not gaurenteed that the trade will be profitable..However the probability of a profitable trade will be high.
Thats all in this message..Keep visiting to learn more on forex day trading.
Labels: fibonacci levels, forex day trading, forex ema, forex macd, forex technical indicators, oscillators, stochastics
Thursday, April 12, 2007
Placing the trades using Pivot Points
Placing the trades using Pivot Points -
Apart from the common indicators such as EMA, RSI and Fibonacci, another technical indicator is very popular between trades which is pivot points. This technical indicator is mostly used for currency day trading.
Point pointsare nothing but some pre-identified support and resistance levels which are something like mutually agreed between the traders in themarket.
They are influenced by the price action that took place in last 24 hours. So if a trader tries to identfy the pivots for today, s/he needs to check what is the price action that took place in last 24 hours.
Generally when trades are placed using pivots, the profit range is 35-50 pips. So, thats very nice profit..
In all Pivot point system is very reliable. However, I have not personally tried it yet. I am more into placing trades using EMA and MACD, stochastic etc.
In the next post, I'll mention some of the courses or ebook in the market that are based on pivot points..
Thats all in today's session..Visit again to learn more on forex day trading..
Apart from the common indicators such as EMA, RSI and Fibonacci, another technical indicator is very popular between trades which is pivot points. This technical indicator is mostly used for currency day trading.
Point pointsare nothing but some pre-identified support and resistance levels which are something like mutually agreed between the traders in themarket.
They are influenced by the price action that took place in last 24 hours. So if a trader tries to identfy the pivots for today, s/he needs to check what is the price action that took place in last 24 hours.
Generally when trades are placed using pivots, the profit range is 35-50 pips. So, thats very nice profit..
In all Pivot point system is very reliable. However, I have not personally tried it yet. I am more into placing trades using EMA and MACD, stochastic etc.
In the next post, I'll mention some of the courses or ebook in the market that are based on pivot points..
Thats all in today's session..Visit again to learn more on forex day trading..
Labels: fibonacci levels, forex pips, forex technical indicators, forex trading ebook, MACD, pivot points, technical analysis
Tuesday, April 10, 2007
Trading with EUR, GBP
Trading with EUR, GBP - The popular currency pairs
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Labels: EMA, fibonacci levels, forex day trading, forex pips, forex technical indicators, fundamental announcement, fundamental news, spread, technical analysis, volatility
