Learning About Forex Signals

By Howard Dwinger

There are some intelligent equations which you can use to generate signals to trade your forex. If you are in need of free ways to generate signals to strike big profits in the long-run to trade, then you have come to the right place.

You can create the signals by putting some factors into consideration. Just purchase a new 1 month high and keep it till a month low is reached. After this has happened, knock off the long placement, run short and continue to maintain it till a month high or low is reached.

It is an attainable principle and you just have to carry out your signals in tune to it. Can you gain a trade through this technique? It works if you do it properly. It is a simple forex signal generator equation.

This method was devised by Richard Donchian in the seventies itself and being in operation in the hands of sharp traders giving them huge gains in the long run. Avoid bypassing the method looking at its simplicity.

It's underlying methodology is backed by quality market logics, and has been generating pips for quite some time now. Think of it as making money in the forex market based on its every move until it errupts.

Analyzing one month trend in forex movement reflects the trend shifts in it. Being a one rule method, it is not propelled by anything and it is natural. Many Forex traders see it as very simple but when it is applied, they will feel the benefit of the principle.

Plain techniques function is the ideal method for trading in the forex market, but the traders think that compound equations give them the excellent results. This method is very simple to use and this method is a dateless one to do business in the forex market with high gains.

It is back up by forex market principles. As the market will continue to move, the signal gotten using this principles will keep on earning money for you in the long run. - 23159

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Appreciating Momentum

By Chris Blanchet

Many investors will confuse a trendline with momentum. However, as an event derived from astute technical analysis, Momentum tells investors a lot more than a cursory glance at a security price's trend line. Using technical analysis and technical events like Momentum, investors are able to determine whether a price is likely to continue its trend or reverse and head the other way.

Understanding Momentum In some ways, Momentum is very similar to the MACD oscillator as it measures how much change a security's price has seen over a predetermined period of time. Understanding how technical analysis works on an unbiased, statistical level as well as using Momentum will allow investors to determine whether a systemic change in price is part of the normal up-and-down of the market, or if it is instead a strong bearish or bullish signal. Essentially, Momentum tells us whether a given price trend will continue or reverse.

In other words, Momentum allows investors to see the true strength of particular price trend. When relying on multiple technical analysis tools in conjunction with Momentum, investors are better able to understand the true, underlying price trend. Armed with this information, investors can make appropriate changes to their security holdings. Making such important decisions can become difficult at best without the assistance of technical analysis tools.

Calculating Momentum One of the downfalls with technical analysis is that there is a heavy mathematical component to many of the events. While this not entirely true for Momentum, investors will need to understand the basic formula required to obtain a Momentum reading. Simply, Momentum is calculated by dividing the Closing Price by the Closing price ten periods ago, and multiplying it by 100. [Close/(Close 10 time-periods ago) * 100].

Trading on Momentum When it comes to executing trades based on Momentum, the reading is quite simple to understand. Values above 0 are bullish and values below 0 are bearish. A word of caution however is that extremely higher low values might suggest a continuation of the existing trend. In the case of a sell, investors are urged to trade only if prices peak and then begin to fall and not trade before they begin to fall.

When it comes to trading on technical analysis events, investors should always use other events to confirm or refute positions they are currently considering. Never make a trade based on one technical signal. Momentum can often serve to confirm or refute other events or even the underlying price trend in a particular security.

As mentioned previously, many events triggered through technical analysis involve heavy mathematical calculations. For most investors who do not have the time or ability to complete their own mathematical work, trading software has evolved to the point where your computer will go so far as making simple buy and sell recommendations. Understanding technical analysis is one thing; completing the work is another. For most serious investors, trading software not only makes sense, but it improves profit. - 23159

About the Author:

Christ Blanchet has more than 15 years of experience as a Financial Advisor. His is the technical analysis and options contributor at Online Trader Today.com where free members can follow the Technical Analysis Series and receive a complimentary e-book on Option Sensitivities. He maintains a debt-free blog at How To Repay Debt.com

Reading Foreign Exchange Quotes

By Bart Icles

The foreign exchange market can overwhelm a lot of people. Having a good grasp of foreign exchange trading can help you a lot in starting your foreign exchange venture. After having substantial knowledge of the basics of the foreign exchange market, you can start working on learning how to buy and sell currencies.

Learning how to read foreign exchange quotes in spot markets is a basic step in foreign exchange trading. A currency is quoted in relation to another currency, wherein the value of one currency is shown through the value of another. A foreign exchange quote typically looks like this: USD/EUR = 0.7076. This reads that one US dollar is equivalent to 0.7076 Euros. The currency on the left side of the slash is the base currency and the one on the right is the quote or counter currency. When taken together, this is what foreign exchange market players refer to as a currency pair.

Normally, currencies are traded in the foreign exchange market with the US dollar as the base currency. When a quote does not indicate the US dollar as one of its components, it is called a cross currency. An example of a cross currency pair is EUR/JPY, wherein the quote will indicate how much Japanese yen does one Euro cost. Cross currencies can open new opportunities in the foreign exchange market. However, you should take note that cross currencies are not as actively traded than pairs that include the US dollar.

Currencies can be quoted in two ways: directly and indirectly. Direct currency quotes are simply currency pairs wherein the domestic currency is the base currency. In contrast, indirect currency quotes are those where the domestic currency is the quoted or counter currency. For example, you are looking at the Euro as the domestic currency and the US dollar as the foreign currency. The direct currency quote for this pair should read EUR/USD, and its indirect currency quote is USD/EUR.

You should also be familiar with the bidding and asking prices in the foreign exchange market. Currency pairs are traded with bid and ask prices, wherein the bid price is they buying price and the ask price is the selling price in relation to the base currency. In buying a currency pair, the ask price is the amount of quoted currency that need to be paid to buy one unit of the base currency. The bid price on the other hand is the amount of quoted currency that can be bought with one unit of the base currency.

Two other terms that you also need to be familiar with are spreads and pips. Spreads refer to the difference between the bid price and the ask price. A pip is the smallest movement that a currency price can make. In a currency pair that reads USD/EUR = 0.7076/03, the spread is 0.0003 or 3 pips. A change of three pips would result to 0.7079 from 0.7076. - 23159

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Don't be scared off by a forex killer blog it is a powerful tool in your forex education. Blogs that give advice about trading strategies and money management skills are great resources to learn more about forex trading.

The Importance of a Forex Scalper Robot

By Davion Wong

People who intend to get profits from short term Forex trading will do well with a Forex scalper robot. Scalping is one of the trading strategies preferred by some traders, since it allows them to make a few pips per trade, within minutes or hours. In contrast, long term trading can take several weeks or a few months at most.

In order to make profits out of scalping, you will need to make several trades within a single day. Scalpers take advantage of the movements in the market within hours. One such example is the period when the US currency market is closing and when the European currency market is just opening. Typically, many day traders are known to prefer scalping when making Forex trades.

For many of these experienced scalpers, making small trades more often provides lower risks than having to trade for a longer term. Since the trades are made more often, this also presents more chances to make profits. These small profits can add up to a considerable sum at the end of the day. This is why a scalper robot for Forex can be really valuable.

One you are able to find a reliable scalping system, you don?t have to worry about making pips each time you trade. A good program will contain all the necessary strategies so you can make more through Forex scalping. It is important that you opt for a system that performs on a per-tick basis. Through a reliable Forex robot scalper, you will not need to keep watch on the fluctuations happening in the market.

The Forex market is a volatile one, which means that there are many currency fluctuations occurring within the day. These fluctuations present opportunities for scalpers to trade profitably in the Forex market. In order to really make remarkable profits however, you need to make sure that you profit from each trade you make. An excellent Forex scalping robot will help you execute a strategy for winning trades each time.

Many people prefer long term trading due to the consistency it brings. The profits may also be potentially bigger in long-term trading. With the right discipline however, anyone can profit from short-term trading or scalping.

Nonetheless, if you want to engage in scalping, you have to take note that your trading costs can easily grow, especially since you will be making trades more often. To automate your trades, you can get competent Forex scalping software to help you in your strategies.

Finding a competitive Forex scalper robot is important when automating your scalping strategies, so don?t forget to visit my site today for more guides and tips. - 23159

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Understand Forex Accounts

By Ahmad Hassam

For trading success, good money management is the key. Many traders ignore this aspect of trading at their own peril and get their account blown in a few weeks of trading. Trading discipline means using a trading system based on money management rules that limit your risk and avoid making trading decisions based on emotions.

Without sufficient capital in your account, you wont be able to make meaningful capital gains. One of the worst blunders that forex traders can make is to trade without sufficient capital. Low capital increases your chances of getting blown out too soon. This does not mean that you should have a lot of capital before you start trading. You need to have sufficient capital in your account in order to take advantage of the movements in the currency markets. Low capital will never give you that opportunity.

The minimum amount required to open a standard account with many forex brokers is $2000. You can start with $2000. However, it is recommended by most of the professional traders that you should start with at least $5000 to get good results. A trader with limited capital is always a worried traders always looking to minimize losses beyond the point of realistic trading. Never ever trade live without practicing on the demo account for a few months.

A standard account or a regular account lets you trade a $100,000 standard lot with a $1000 deposit. This account is often also called 100k account. The broker is giving you an interest free loan of $100,000. This $1000 is kept as the margin or guarantee by the broker. This is a 1% margin. Your account should have more than $1000 if you want to trade.

When you open an account with the broker, you must determine what the default margin is. You can change the account margin to whatever you feel comfortable with. If you start with a 2% margin, then it will cost you $2000 to trade one standard lot.

Many brokers try to offer huge leverage to the new trades in order to entice them. You can get a leverage of 200% in most of the standard accounts. Using 200% leverage means trading $200,000 with a $1000 deposit. With this small deposit you are controlling a huge amount. Be careful! Dont use more than 4% leverage while trading in the beginning. Too much leverage is dangerous.

Its not that leverage is bad. It is a double edged sword that cuts both ways. It increases your profit but at the same time wipes you out in case of a slight miscalculation on your part. Its just that you need to understand and learn how to use it. You can only do so with practice. With practice and more experience, you can increase the level of leverage in your trading.

Mini accounts are great for newbies. You can open a mini account with a deposit of only $300. The mini account was developed to accommodate investors who were looking for diversification out of their stocks portfolios. This small dollar requirement allows many investors to participate in the forex markets who were previously unable to do so. Recently micro accounts have also been introduced.

On a mini account, you have different lot sizes as compared to the standard account. One lot on a mini account means $10,000. You only need $50 to control a mini lot of $10,000. A pip size on the mini account is equal to $1 instead of $10 as on a standard lot.

A mini account is a great way for beginners to practice forex trading. If you lose 100 pips on a mini account, it means losing only $100 as compared to losing $1000 on a standard lot. You can say a mini account reduces your risk by 10%. But it also reduces the amount of profit that you can make. Start with at least $500 on a mini account. - 23159

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.