Raff Regression Channel Trading

Raff regression channel, also known as regression channel, Raff regression and linear regression channel is a handy indicator for finding support and resistance . Raff Regression Channels show the range prices can be expected to deviate from a Linear Description of Trading the Regression Channel Author, Gilbert Raff says, ' I have found this new method using the Regression Channel to be accurate The Raff Regression Channel can be drawn to cover the existing trend and subsequently define the trend. Price channels are a technique used to discover the outer boundaries of the market's action concerning a trend. Developed by Gilbert Raff, the regression channel is a line study that plots directly on the price chart. the Regression channel is used to trade along the trend by assuming that the general trend will follow the Regression line. Raff Regression Channel is based on application of linear trend with parallel lines drawn above and below. On the above channel, downward breakout would only be confirmed when the day marked [confirm] falls below the previous day's low. Raff Regression Channel A market follows its primary trend in a zigzag form. The trend direction is easy to see; the real challenge lies in identifying the minor trends.They are useful for setting stop loss orders and for swing trading. The software uses a mathematical formula to calculate a gradient using the values of the price data type for each trading. Developed by Gilbert Raff, the regression channel is a line study that plots directly on the price chart. In the chart below, the Raff Regression Channel is shown with blue lines. ... currency trading; Finance information and guide; forex ; forex broker; forex managed accounts;Linear Regression Channel Trading, In this articles I am going to share about the Linear Regression Channel system trading. Linear regression channels provide an excellent way to ... The Precision Trading System is a unique and powerful approach to trading which can easily ..

Fx5 Macd Divergence Ea

An expert advisor based on the famous FX5_MACD_Divergence_V1.1 indicator. We enter long on green arrow, short on red arrow. EU H1. Since 1999. Total net profit : 2019.50% FX5_MACD_Divergence - MQL4 Code Base: custom indicators for MT4 ... or if someone seen an ea for macd divergence would u point me in the right direction.fx5 divergence v3; FX5 MACD Divergence EA; fx5 divergence indicator; fx5_divergence; fx5 macd divergence indicator; macd divergence mq4; macd divergence alert; fx5 macd; FX5 MACD Divergence MT Indicator. Home; Forex Brokers. Leading Forex Brokers (2012) ... Metatrader 4 Experts (EA) Products & Services. Trading Software & Services;FX5 Divergence – Powerful MACD ... Oscillator Trading - Multi Zigzag Indicator - Fx5 Macd Divergence Ea - Ssl Channel Chart Alert Indicator - Bull Call . X5 MACD Divergence EA: based on the famous FX5_MACD_Divergence indicator. - FX5 Martingale EA: entry on fx5 signals, reentry in the opposite direction on stoploss, Download Fx5 Macd Divergence Ea; 54 Pattern Indicator; Murrey Math Buy Sell Signal Mt5; Metatrader4 Trend Alexcud; ... Donchian Breakout System Macd; Divergence Macd Fx5; MACD Divergence, Free MACD Divergence Videos and MACD Divergence Stock Screener The MACD indicator or Moving Average Convergence Divergence indicator is the most popular download in our free forex indicator library.

Iinwmarrows

IINwmarrows - MQL4 Code Base is custom indicators for MT4/
Forex Trading Systems - Anybody who use this system pay attention to IINWMARROWS.mq4 indicator. I do not know the the author but I think is a good indicator. IINWMARROWS Alert Signal Indicators free indicators for TradeStation, eSignal, MT4 and QuoteTracker. This indicator is indicator repaints.

IINwmarrows indicator is the Best Forex Indicator, The Best Forex indicator is the top most proven reliable Forex indicator guide in the world, you can combine, download, and make indicator combination. IINWMARROWS Indicator Forex Download,
Download Forex Indicator Free! Increase your income and minimaze your loss in forex trading, download forex indicator.

IINWMARROWS EA - Trading System Forex
Total net profit : 56.91% Open trades, EA based on iinwmarroaws signals, filtered with rvi, rsi and stochastics. EU M5. 2010. Total net profit : 383.41%

IINWMARROWS - Desynced Forex MT4 Indicators and Expert Advisor. Market Information Used: Series array that contains the highest prices of each bar Series array that contains the lowest prices of each bar. Forex Custom Indicator Trading System - Forex Indicator Best - IINWMARROWS - i-Levels_RS - iMACross - Impulse MACD - impulseMACD - JMA RSX - JMASlope - JMASlope_MTF - JMA_StarLight - KaufWMAcross - Kijun-sen+ - KijunTenkan+ - Levels

Day Trading Breakout

Trading with news event or fundamental trading is not difficult as see. The key is to fundamental trading is to determine support and resistance on market chart, In this following example price has found resistance after 787 bullish trend. An ascending triangle chart pattern can also drawn by connecting the wicks . We can use them to make a triangle chart pattern and determine entries position using OCO orders.
Day Trading Breakout
Once a ascending triangle chart pattern is found , our trading decisions become much easier. We just wait for market price to move breakout , or trade between resistance and support. With fundamental news even possibly producing Forex market volatility, a breakout trading method may be the favored strategy of action for Forex traders. Day trading breakout entries should plan to prepare for the worst of one of support or resistance levels previously drawn on the Forex chart.

We can make a benefit to a Forex trader during a fundamental news with setting open position orders. We can place both long and short orders through an OCO order if we are unsure where the market price is going to breakout.
Day Trading Breakout
OCO order will entry into the Forex market with sell entry on the break of support and buy entry on the break of resistance. Stop loss can be plotted in between OCO entries.


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- Ichimoku Patterns
At the end i've choose ichimoku and Harmonic patterns as my main strategies beside using support & resistance.
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The concept of price action trading embodies the analysis of basic price movement as a methodology for financial speculation, as used by many retail traders
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What is Price Action Trading Analysis? - My definition of Price Action Trading Analysis: Price action analysis is the analysis of the price movement of the forex

How to Trade Moving Average Indicator

Forex traders are confused with many decisions when they use indicators in Forex trading. For instance , after they using Moving average indicator to analyze Forex trading market, traders are able to determine market price action they couldn't pinpoint before without Forex indicators on their trading charts. Trading with moving average can give a Forex trader a benefit when setting a trading system. In this article I will show to you about how to read or how to trade with moving average indicator
How to Trade Moving Average Indicator
How to trade Moving Averages
In the chart above shows the commonly traded moving averages 30, 50 Moving average, and 200 moving average. Moving average indicator is technical indicator that calculate the average price of forex pair over a specified period of time. For instance, if you are using 200 Moving average the indicator is adding the closing price of the last 200 candlestick on the chart. Then the result is divided by 200 to pinpoint where the Forex moving average indicator is moved on the chart. Moving average indicator have ability to filter out the market noise. For instance, we can look on the EUR USD chart below that market price is below the 200 moving average. Since market price is moving above this indicator forex traders could prefer chance to open long position and eliminating selling. As market price crosses either under ot above these levels on the market chart it can be determined as either weakness or strength for a certain currency pair.

How to Trade Moving Average Indicator


How to trade Moving Average Crossovers

Forex traders can use more than one Moving average indicator. When using more than one moving average indicator traders can use a crossover trading system. Crossover system of using more than one moving average indicator can be helpful in trending markets and is similar to using MACD Moving Average convergence Divergence oscillator. Forex traders will pick a series of moving averages and read the market trend as bearish when the faster period moving average is trading below the slower period moving average.

You can use Ema Crossover Mq4 indicator for your crossover trading strategy

Moving Average indicator moves sideways in a ranging market also. In these situation moving average indicator will start to reversal together as no new pricing lows or highs. In this situation Forex traders could think other Forex indicator based off of prevailing market situations.

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To the best of our knowledge, Joseph E. Granville was the first to describe the following price versus moving average configurations.
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Ichimoku EA Mq4

Trading with Ichimoku EA mq4 indicator. This post talk about Ichimoku EA mq4 trading a profitable Japanese indicator technical can be applied in Forex trading , stock , and Futures. Ichimoku EA mq4 indicator can be traded with other technical indicators such as MACD Moving Average Convergence Divergence, Moving Average, Bollinger Bands, RSI, volume indicator and etc. Ichimoku definition, Ichimoku mq4 indicator is a accurate Forex trading strategy because this indicator combines support , resistance, trend , and volatility.

Ichimoku Explained
Ichimoku Forexfactory was created by Goichi Hosoda, After 20 years testing, the Ichimoku was released to the world.


Ichimoku Chart
How to trade Ichimoku
There are so many ichimoku EA trading software available in the net, such as fapturbo ichimoku. But if you do not believe in EA or Robot you can use ichimoku indicator with your own trading system. Ichimoku indicator mq4 is consisted of 5 lines which trade perfectly together to show us a analysis of the market price.

A weak tenkan sen/kijun sen cross Buy (Sell) alert occur when a bullish cross happens below (above) the kumo.
A neutral tenkan sen/kijun sen cross Buy/ Sell alert occur when a bullish cross happens within the kumo.
A strong tenkan sen/kijun sen cross Buy (Sell) alert occur when a bullish cross happens above (below) the kumo.

Kumo Break trading system, Forex traders generally to open sell positions when market price break support level and open buy positions when market price breaks resistance level. Why we use support and resistance ? because support resistance is more meaningful for open trading positions.

Ichimoku AFL indicator is the most traded forex technical indicator in the Forex market. There are alternative ichimoku indicator you can use for your trading system such as Bollinger bands indicator, Relative strength index, Moving Average indicator and etc. But in this post I will give you the real alternative Ichimoku indicator , you can download it in this following link

Download Alternative Ichimoku.mq4

Download Ichimoku EA Mq4

Ichimoku cloud mt4 calculation
Now we can learn on the Ichimoku cloud MT4 mathematics calculation formula. As we knew , the Kumo is built by the Senkou Span A and Senkou span B:

Senkou Span A("leading span 1") = (Tenkan Sen + Kijun Sen)/2 time-shifted forward 26 periods (into the future)

Senkou span B("leading span 2") = (Highest High + Lowest Low)/2 for the past 52 periods time-shifted forward 26 periods (into the future)

This will make the Kumo 26 periods ahead of current price, therefore giving us number of support and resistance.



Elliott Wave Trend Indicator


Elliott Wave Trend Indicator
Elliott Wave Trend Indicator applied for determining market trends and trend reversal in Foreign exchange market. Elliott Wave Trend indicator is amazing tool for profits. If you are a Foreign exchange trader and you are not trading with Elliott wave indicator you should try this indicator for your trading system. This indicator is one of the most useful indicators you can trade for bigger profits in your trading system.


Elliot Wave Mql4
Elliot Wave Mql4 can producing Forex trading Signals for the trading direction is very helpful for the traders. The right indicator is one of the important factors in Forex trading. Elliott wave mql4 is a technical indicator is one of the accurate technical indicator in my opinion. If you are looking the good and accurate Forex trend indicator you can try Elliott Wave mql4. You can download Elliott Wave Oscillator.mq4

How To Trade Adx Indicator

There are so many Forex trend indicator in the world, Moving Average indicator , Bollinger bands indicator, ADX indicator and etc. ADX is the most favorite trend trading indicator among Forex traders. The accuracy of the ADX is very high than other trend indicator. ADX is a trend indicator used to assist expert or new trader in trading Forex market. In this article I will talk about how to trade ADX indicator that has been made to help traders to read trend direction in market.
How To Trade Adx IndicatorTrading with ADX indicator is not so difficult. If -DMI line trades below +DMI it means market is in up trend or bullish trend. And if -DMI line trades above +DMI line it means market is in down trend or bearish trend. If ADX line trades below 50 it means market is in weak trend and if ADX line trades above 50 it means market is in strong trend.



How Identify Trend Direction

Maybe you have heard about the statement "The trend is your friend". Forex traders will benefit if they able to determine the market trend on a Forex trading, the trend direction in which the currency pair has been trading. The first step in identify the market trend is to look the Forex daily charts of every pair, and find the biggest market trend in either direction. For identifying or determining market trend direction we can use Moving Average Indicator. Moving Average indicator is a Forex technical indicator designed to help Forex trader in reading market trend.
How Identify Trend Direction
If a currency is in a strong bullish trend , as on the Forex chart above, it can easily be determined on a daily chart. If a forex trader is not sure about the trend direction, Forex trader can choose other Forex pair as we are searching for the strongest trend to trade. On the chart above , the pair is in an bullish trend. When trading an bullish trend, a wise strategy is to wait for a reversal to a support point and then take a buy position.
On the example chart , a Forex trader could take buy position in red point on the chart. This strategy is called buying on dips. The stop loss would be plot under the lowest level.
The different story would be true if trading a bearish trend in the following daily chart.
How Identify Trend Direction
The bearish trend is determined if the currency has been trading lower highs and lower lows. The Forex trader could open short position into the bearish trend by waiting for a reversal to resistance and then open a sell position in the direction of the market trend, The stop loss would be place above the highest level. This trading system is named "selling on rallies"
The key of this trading strategy is that by trading in the direction of the market trend. As Forex traders we have to reduce as much risk as possible from each trade.

123 Price Action

123 Price Action

Forex 123 Price Action Trading Course - 123 Learn To Trade Forex, you can learn why price action is the key to successful forex trading in the Advanced Price Action Trading Course. Price Action Strategies, here are an example of a few poorly made 123's on a 10m YM chart. Here are two examples of using 123s to forecast potential price action. 123 Learn To Trade, this strategy was founded by trader Brendan Egan to provide a buy sell signal. Price Action Trading Method , this is 123 reversal and you are trading the pullback as your entry trigger (Red Line). There are a few variations of this pattern but this is quite simply a price action.

Trend Trading with RSI Indicator

Relative Strength Index is the one of the most favorite Forex technical indicator, Relative strength Index RSI can assist Forex trader read when Forex price may be oversold or overbought in the Forex market.
Trend Trading with RSI Indicator
Because of this RSI Relative strength index is frequently good suited for Forex range trading , with great risk management , But if we looked at from a other situation , RSI indicator can actually be traded profitable for Forex trader finding to use RSI indicator into a Forex trend trading activity.

Using RSI indicator in Multiple Time frame
Multiple time frame trading can give a many a advantage to Forex traders with many other types of purposes and goals, but this trend trading analysis may be most profitable to Forex trend traders that are finding For multiple benefits when entry trades.

Multiple Time frame trading is conditions which many traders will trade 2 different Forex chart time frames to take a benefits and a more clear picture of the situation they are looking to Forex trade. Forex traders allow to analysis Forex sentiment or trend on a bigger scale, and then search for enter chances in accordance with was found on the bigger time frame chart.

But, which is the best forex time frame for trade ? to answer this question , usually depends on the Forex trader's purpose. Bellow is a table in the time frame trading that forex traders can refer to for which time frames may be work best in trading.
Trend Trading with RSI Indicator
Using RSI indicator to trend trading with multiple Time Frames

Forex traders can now use multiple benefits for their trading activity using multiple time frame. The bigger time chart can be used to determine market trends in the foreign exchange trading. When a forex trader has found a bullish trend they want to long, or a bearish trend they want to short. Forex traders can change to the enter chart , to find for RSI gives signal in the way of the market trend.
Trend Trading with RSI Indicator
The chart in this article gives picture how a swing trader , trading the daily time frame to determine trend direction and the 4 hour time frame chart to plot open positions, would be finding to plot a entry buy. And when a short time frame trader had determined a bearish trend on the 4H time frame chart, traders can change to the 1H time frame chart to find for a chance to short position .
Trend Trading with RSI Indicator


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How to Trade Camarilla Pivot Points

The calculation formula of Camarilla Pivot Points provides considerably closer levels than other pivot variations calculation formula, leading to a more Forex trading activity than other types of this popular Forex technical support and resistance indicator.

This Camarilla Pivot points indicator is thought to produce Forex traders with not only a managing risk, but also a method of entering trades.
How to Trade Camarilla Pivot Points
Risk Management

A easy calculation formula can help Forex traders use the market price data from the previous oeriod can be defined as an month, week, day or hour with a variations in between.

With Camarilla Pivots, Forex short-term traders will see at the daily chart. If market price touch the 3rd level of support or resistance level, many Forex traders feel the opportunity of a reversal may be commonly look at the daily variety.
When price approaches the 3rd level of support or resistance, many traders feel the chance of a reversal may be imminent. As such , those forex traders will often see to profit taking at these levels when met while in a winning position.

Reversals moving at the S3 and R3 camarilla Pivot, Forex traders also feel that when the 4ht level of support and resistance level is touch the potential for a breakout may be increased. Forex traders would want to contain the damage of wrong trades when these levels get hit on losing trades, finding to place stops just outside of these prices.

Woe to trading Camarilla Reversal
How to Trade Camarilla Pivot Points
Since Forex traders feel the potential for a breakout may increase if the daily R3 or S3 camarilla pivot i hit. Forex traders may find to short while Forex traders find to long at $53.

This camarilla Pivot points can be helpful if being done in consideration of longer term trends. Forex traders can combine multiple time frame analysis to have a bigger picture view on the meaning of interaction with Support and resistance levels.

When a Forex trader analyze a longer term bullish trend that forex traders would like to long cheaply ; Forex traders may wait until market price touches the daily S3 camarilla Pivot point to do so. An vise versal , in which the Forex trader finds to short if market price rises to the daily R3 camarilla Pivot.

How to trading breakout using camarilla pivot point
When market price touches the 4th level of support or resistance, something big may be happening in the Forex market that is being traded. Forex traders will find at crosses with the S4 and R4 leverls an an chance for trading a breakout,
How to Trade Camarilla Pivot Points

Bollinger Bands Divergence Indicator

Bollinger Bands Divergence Indicator
Bollinger Bands Divergence Indicator Bollinger Bands Divergence Indicator (Bollinger Bands, BB) is plotted a certain number of standard deviations a What Are the Basics For Successful Forex Day Trading?. All traders will use Bollinger Bands Divergence Indicator in chart formation that they can lay reference to which way a particular currency pairing is moving. It is these charts that can be manipulated to a particular traders style to maximise successful Forex day trading. Download Bollinger Bands Divergence Indicator

Bollinger Bands Ea Mt4
Bollinger Bands Ea Mt4
Bollinger Bands Ea Mt4. Where To Look For Trends At Forex Or The Faultless Gaining Of Profit By A Trader. As far as I'm concerned as a trader at Forex , the problem of finding a proper trend is one of the keystones in understanding of the market. On the surface of it, it is quite simple. One has just to make use of the trend definition as the currency stably-forward movement, then to open a deal concerning the trend and to gain profit. In the trend absence (a flat, lateral movement), one must not take risks and stay outside the market. Otherwise, as it is written in all the manuals of Forex , one should open deals on "sell" at maximums of uptrend and on "buy" at minimums of downtrends. It is so logical and simple, isn't it?
Download Bollinger Bands Ea Mt4


previous post Alligator mq4

Best RSI Indicator

Best RSI Indicator
All RSI.mq4
By means of these Best RSI Indicator, you can not switch the periods of the schedule in MetaTrader. As all the periods will be at you before eyes.

All RSI mq4 is the Best RSI Indicator - Makes profit in forex Month Trading. Forex is a non-physical trading platform for the foreign exchange market. While, trading is done primarily online and via telephone, there still is much to learn and the forex market uses many of the same principle as stock exchange trading.

Download Best RSI Indicator All RSI.mq4

Previous post Heiken Ashi Ichimoku

Heiken Ashi Ichimoku

Heiken Ashi Ichimoku
Heiken Ashi Ichimoku
Heiken ashi ichimoku indicator , Combination between Heiken ashi and Ichimoku kinko hyo indicator gives better result and gives more accurate signals. You can download and use this forex indicator combination Heiken ashi ichimoku indicator in this following link.

Download Heiken Ashi Ichimoku

previous post Stoch RSI EA

Stoch RSI EA

Stoch RSI EA
Stoch RSI EA

Stoch RSI EA Expert Advisor Is the best Forex robot, some Forex trader are claiming really the best Forex Expert Advisor EA. Just like any other EA, Stoch RSI EA involves risks management and will certainly result in better profit percentage. Do not use Stoch RSI EA Forex System until you understand the Stochastic and RSI indicator system.

Download Stoch RSI EA

Previous article Auto Channel MT4

Auto Channel mt4

Auto Channel mt4

Auto Channel mt4


Using Auto Channel mt4 indicator. Forex trading has been taken to a different level with the introduction of Auto Channel mt4 indicator. The Auto channel is a special technical indicator that allows traders to make huge profits although they have no knowledge about the market. The auto channel indicator MT4 available on the most famous trading platform in the Forex market, the Meta trading platform. It utilizes the most advanced applications to make a trader have good returns from his investment.

Download Auto Channel mt4 indicator

Professional Forex Trend Indicator

Professional Forex Trend Indicator
Professional trading indicator identifies trend reversal. This professional indicator determine oversold and overbought in the market. This indicator also can identify reversal point and retracement of the current trend. Professional Forex indicator finds for resistance and support levels and reversal area for market price, and gives signal the trader when the reversal is occur.

ROC Mt4 Indicator

ROC Mt4 Indicator
ROC MT4 is the best Forex indicator to improve your profit. Many traders are turning to the Forex trading investment and using the best Forex trading indicators as a strategy of their portfolio. Forex trading is unlike option, bonds or stock. The rewards can be bigger with less time. You can use this ROC MT4 indicator to improve your trading system.

You can download this indicator in this link ROC Mt4 Indicator

Best Swing trading indicator

What is the best swing trading indicators? There are many type of indicators that traders can implement into their swing trading. But , there are only one indicator that forex traders use in their swing trading. This is moving averages indicator. Moving averages indicator is widely used by forex traders. Even there are many different types of moving averages indicators, but the experience traders still use simple moving averages for swing trading. The popular simple moving average indicators are the 100 days and 200 days period indicator.
Best Swing trading indicator
These indicator traded to show the main trend. A 200 day simple moving average allows you to see at a glance exactly where price is. Experience traders use these indicators to swing trade successfully and manage to earn billions each year from the stock and forex markets.
Finding the accurate swing trading indicator can be difficult. If you are just starting in forex trading, then the problem is that there are many indicators available. This makes it difficult when picking on what best indicator you should use for trading. The tip to picking the best indicator lies not in picking the best indicator, but instead in picking the best indicator for you and your trading system.

Swing Trading Indicators Using Moving Averages - Swing trading using moving averages, the simple moving average and the exponential moving average.

Forex Swing Trading Indicator - Forex traders trade using price patterns and price based indicators to identifying Swing Trading

Stochastic Settings Swing Trading

Stochastic typically used to identify overbought and oversold conditions the indicator consists of two lines: % K and %D. Stochastics can also be use to generate buy and sell signals. I like to use stochastic as possible buy and sell opportunities after defining a trend. If the trend is up I like to only take buy signals regardless of the reading as long as the trend remains in place. I ignore the sell signals. I purposefully weaken the stochastics to give me more signals and I use 8,3,3 as my Stochasti settings for my swing trading. The same is true of selling in a bearish trend.
Stochastic Settings Swing Trading
I ignore the buy signals and only take the sell signals. I don’t use stochastics on their own as trading method as all the settings I have tried ultimately resulted in to many wipsaws. Experiment with different settings and consider adding this indicator to your swing trading arsenal.

About Swing Indicators for Trading - About Swing Indicators for Trading. A swing trader watches stocks and looks for a trend that is ready to reverse.

Best Swing trading indicator - Looking for the most successful indicators for a swing trading strategy.

Swing trading indicator

Moving Averages indicator is the favorite indicator for swing trading. Forex trader use Moving average indicator for market trend identification. The most favorite type of Moving average indicator for swing trading is simple moving average indicator. Moving average indicator can also use to identify resistance and support level. Popular periods for moving average indicator are 100 and 200 days period Moving average indicator for long term and 10 – 20 days period moving average indicator for short time frame.
Swing trading indicator
SMA is the average market price over a given period time. In the picture above you can see both simple moving average and the Exponential moving average indicator attached on a forex chart. In this picture you can see how the Exponential moving average tracks market price closely than simple moving average indicator. If you are using Moving average indicator for swing trading tp determine a trending market you can use both simple moving average and exponential moving average as confirmation. This indicator is a simple indicator and powerful swing trading indicator for your trading system.

The Best Moving Average Forex Indicator

The Best Moving Average Forex Indicator
1. i AMMA
i AMMA indicator changes color according to its direction. i.e. red for up, blue for down. Pick from simple, weight, exponential, hull,

2. MA Crossover Alert
This Moving Average Cross-Alert indicator identifies and alerts when 2 Moving Averages cross one another

3. 3 MA Cross w Alert v2
3 MA Cross w Alert is created by shifting the moving average forward or backwards in time by a set number of intervals.

4. volume MA
A Volume Moving Average is the simplest volume-based technical indicator. Similar to a price moving average, a VMA is an average volume of a stock

5. Firebird HMA [i]
Firebird HMA is one of the most flexible as well as most-commonly used technical analysis indicators.

6. JMA RSX
JMA RSX is probably the most widely used and most popular indicator of all. It can assist in determining the direction of a trend

7. EMA Angle Zero
The EMA Angle Zero indicator is one of the oldest and most common indicators used across all financial markets,

8. Multiple MA
Multiple MA indicator is one of the most widely used Forex technical indicators because it is versatile and easily constructed.

9. FX FISH 2MA
FX FISH 2MA moving averages to measure trends and identify likely reversals. The indicator compares multiple short-term and long-term

10. MA ALERT
MA Alert technical analysis indicator re-averages a simple moving average to make it even smoother.




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The Fibonacci Retracement

There are four popular Fibonacci studies: arcs, fans, retractions and time series. Now Fibonacci numbers are use in Forex trading currency market (Forex).

The Fibonacci numbers were developed by Leonardo Fibonacci and are simply a series of numbers that when you add the previous numbers ending with the next number in the sequence. Here's an example:

1, 2, 3, 5, 8, 13, 21, 34, 55
The Fibonacci Retracement
When a market is moving swiftly in a given direction, sometimes it could pull in as participants take profits. This phenomenon is known as retracement and usually create good opportunities to re-enter the market at support or resistance levels before moving to a trend.

Prices usually are retrace a percentage of the previous move before reversing. These retracements Fibonacci usually occur in three levels - 38.2%, 50% and 61.8%. In fact, the level of 50% has nothing to do with Fibonacci, but traders use this level because of the tendency of prices to change after withdrawing half the previous motion.

The following example illustrate in a very general a level 38% shrinkage in an uptrend:
Fibonacci retracement to 38 percent


When a movement begins to change, the 3 price levels are calculated (and drawn using horizontal lines) using bottom-up movements. These retracement levels are then interpreted as likely levels where counter movements stop. It is interesting to note that the Fibonacci ratios were also known to mathematicians Greeks and Egyptians. The proportion was known as the Golden Mean (Golden Mean) and was applied in music and architecture. A Fibonacci spiral is a logarithmic spiral that tracks natural growth patterns.

After a price that makes a move up (A), it can then move back a part of that movement (B), before moving forward again in the desired direction (C). Retractions are what you, as a trader of the oscillations, when you start you want to monitor for long or short positions.

Fibonacci retracements

Once the price starts to retrace, then you can represent these retracement levels on a chart to test for signs of change. You should not automatically accept the price only because it is a common retracement level! Wait and look for patterns of candles to develop in the area of 38.2%. If you see no change, then the area could drop to 50%. Find a retreat there.

In the next example we find a perfect retraction from point "A" to point "B" (61.8%) and then continues its trend in the direction "C":
Fibonacci retracement to 68 percent

In the next example we find a retraction of a bear market from point "A" to point "B1" (at 50%) and then goes down but comes back to touch up the point B2. Hence the importance of support and resistance levels. We can see that by confirming a double top at points B1 and B2 crossed with a Fibonacci retracement at 50% and candles reverse pattern to the downside, we have a position with very high probability of being profitable to continue down to the point "C".
Continuity of Fibonacci retracement
You do not know when there will be a retraction or know if the price back down to a level of Fibonacci in a safe manner. You just mark those areas on the graph and wait for a signal to another indicator or pattern of candles to assume a long or short position.


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Forex Pairs Correlations

Forex Pairs Correlations
How the correlation can be used on my Forex investment?

Now we know we can expect certain levels of circulation, in parallel between certain pairs, and we can make better decisions to invest given the information. By creating hedges, risk diversification in profitable positions, and avoiding even positions which are positive correlation causing, naturally, to "cancel" each other.

Here is an example where the risk is diversified using a correlation in a currency pair.

Example 1

Suppose you believe that the dollar is set to rally. The obvious thing would be to go short on the EUR / USD, but that puts her squarely result in the movement of a pair. If you would like to diversify your risk, you can find a partner that has a positive correlation with EUR / USD and split the operation into two pairs. The AUD / USD has a very high - but not perfect - correlation with EUR / USD. You might want to break its position between the EUR / USD and AUD / USD (which has a positive correlation of about .71 (at the time of writing)).

The positive correlation between pairs allows you to benefit from the movement of the dollar, while the lack of perfect correlation reduces the risk of volume in any of the 2 pairs.

Scenario 2

Understanding the correlation allows you to avoid taking positions (due to the high negative correlation) will tend to cancel each other. The pairs of EUR / USD and USD / CHF, are a good example. Couples have a historical correlation coefficient of about - .90. This means that almost always move in opposite directions. Knowing this, an investor will not go long in the two pairs at the same time because the movement of a pair will cancel the movement of the other.

Alternative Strategy.

One possible strategy is the inversion of 2 currency pairs based on the correlation of the reversion. You can track the correlation of 2 currency pairs in time and if it escapes from the norm can reverse direction to grip to fit the correlation again.

For example, if the EUR / USD and USD / CHF has a correlation of - .90 and EUR / USD has high volatility, while the USD / CHF is not moving much, can you go short on EUR / USD and USD / CHF correlation seek to take back as a result of the fall of EUR / USD and USD / CHF to reverse correlation to the historical average. Of course, one must take into account that the correlation is not stagnant and there is no guarantee that will always return.

What is the "correlation" between pairs?

When investing in currency pairs in the Forex market seems to be no end to the external forces that govern the movement of prices. News, politics, interest rates, market direction, and economic conditions are external factors that must be taken into account.

However, there is always the internal force that affects some currency pairs. This force is the correlation.

Correlation is the tendency of some currency pairs that move in tandem with others. The positive correlation means that couples move in the same direction, negative correlation means that move in opposite directions.

The correlation is complex for several reasons and because some currency pairs contain the same currency as your base currency, for example, EUR / USD and USD / CHF. Because the Swiss economy tends to be reflected in Europe generally and in that the USD is on the opposite side of each of these pairs, the movements of a coin, - to some extent - will reflect the other.

Correlation is actually statistical term for measuring the movement between two pairs of tandem pairs. A correlation coefficient of 1.0 means that the pair moves exactly in parallel with each other, a correlation of -1.0 means that the pair moves exactly in the opposite direction.

The numbers between these two extremes showing the relative amount of correlation between a set of Forex pairs. A coefficient of .26 means that couples have a slight positive correlation coefficient of 0 means that the pairs are perfectly independent.


How to Calculate Correlations

The best way to keep track of the direction and strength of the ties of the correlation is computed by yourself. This may seem difficult, but is actually quite simple.

To calculate a simple correlation, just use a spreadsheet like Microsoft Excel. Many software packages (including some free ones) allow you to download daily history of exchange and price to put it into Excel.
In Excel, use the correlation function, which is = CORREL (rank 1, rank 2).

The correlations of one year, six months, three months and one month's readings give the broadest view of the similarities and differences in relation to time. However, you can decide for itself the coins and the time periods analyzed.

Here is the correlation calculation process reviewed step-by-step:
1. Get price data from two currency pairs. For example the EUR / USD and USD / CHF.
2. Make two columns, each labeled with one of these pairs. Then fill the columns with the latest prices that occurred a day for each pair during the period under review.
3. At the bottom of a column, in a vacuum, type = Correl (
4. Highlight all data in a column of prices, you should get a range of cells in the formula box.
5. Add a comma.
6. Repeat steps 3-5 for the other currency
7. Close the formula so that it looks a = Correl (A1: A40, B1: B40)
8. The number that occurs represents the correlation between two currency pairs.

Although the correlations change, no need to update your numbers every day, updating once every week or at least once a month is usually a good idea.

Correlations Change.

It is evident that the correlations change, after making the change of the correlations are equally important to global economic changes, as they are very dynamic and can change even from day to day.

The strong basic correlations may not be consistent with the longest term of the correlation between two currencies. This is the reason why there are six months to observe the correlation.

It is also very important to the proportion of a clearer perspective of the average six-month relationship between the two currency pairs, which tends to be more accurate. The correlation is changed by a variety of reasons. Among the most common are monetary differences, sensitivity to commodity prices, and economic and political factors.

Trading Dynamic RSI

Trading Dynamic RSI
A strategy to optimize aggregations

What are aggregates?

Aggregations are simply different time frames. For example: we act in a 5 minute chart, but we use a MACD indicator on a 15 minute chart to our trading signals filtering. This approach makes it possible to filter with different timeframes.

In this example, we develop a stategie on the German Bund Future (FGBL). The bund future is very popular with investors in the long term interest rates and is not too volatile.

In the setup of our strategy, we consider 3 indicators:

The Dynamic RSI, overbought and oversold that levels indicates;
The Channel Breakout, which shows current outbreak movements;
The Super Trend indicator, which closes with a trend fuse positions.

First step: load data

We load the futures contract over 300 days with 5 minutes of data.

We also post 2 time filters:

From 0:00 to 8:05 flat, which means no placements.
From 9:55 p.m. to 11:59 p.m.: flat no positions.

So the market will only be possible between 8:05 and 21:55.

Second step: Install the indicator

We install the Dynamic RSI indicator. If the Dynamic RSI is not in your platform is installed, follow the steps described here.

Once installed, right-click on the Edit Interpretation in the designer bar. Change the interpretation of the indicator as follows:

The Dynamic RSI indicates an over-sold levels with leaving the Boll Anger tires down and a buy signal when the weather goes by the Band. Step 7 has been given the value 100, which means that if the sentiment is equal to 100 is a long position.

In the current configuration we open a position if the market is oversold or overbought and rebounds in the opposite direction.

An oversold level occurs when the Dynamic RSI Bollinger Bands up and leave the Short Sale on signal, if the RSI falls back within the Bollinger Bands is. See step 3 in the interpretation of the indicator.

The aggregation of the Dynamic RSI is 6 x 5 minutes. Hence, we act on a 30 minute chart.



Third step: filtering of signals

With a view to limiting the number of spurious signals, we add the channel Breakout indicator, but this time as a filter. The Channel Breakout indicator signals a positive trend as futures break by reaching new highs and new lows when it reaches the trend is downwards.

If we Breakout indicator on an aggregation of 3 x 5 minutes have placed the buy and sell signals on Dynamic RSI (on a 6 x 5 minutes) scale, they will only be accepted if a breakout is a 15 minute time scale . These acts thus as a confirmation of the trade.

In this example we take a long position on the Bund as an oversold situation on the 30 minutes (6x5) time scale and there is an upward outbreak in 15 minutes (3x5) scale.

Fourth step: placing stops

Placing a stop in a strategy is essential. In this configuration, we use the Super Trend indicator as a stopper. The Super Trend is a trend indicator.

We use the aggregation 3 x 5. So, if we have a position and shorting the trend on a 15 minute scale runs up, then the position will be broken ends.

Fifth step: placing an object

Technical indicators such as the Super Trend lagging behind. So often you stay too long in position. For the trade to an early conclusion, we place a Profit Target stop.

The Profit Target stop is entered three times the ATR. The ATR or Average True Range measures the volatilieit of the Bund futures over 20 periods of 5 minutes. The number 20 is also called the ATR Span mentioned.

So the position will be concluded with a sell if the goal of 3 x ATR is reached. Set the ATR is 0.10 points and the entry point is 122.50, then the position will be closed as 122.80 is achieved with a sales order.



Sixth step: evaluating the strategy

Below is the equity curve (your power) which is a nice buildup of earnings shows.

The report below, attached to this article, shows a gain ratio of 72.92% and a profit factor of 2.80. This means that the average profit 2.8 times more important than the average loss.

The structure of this strategy without any optimization, shows that simple aggregation through different time frames apply, although it can lead to increased profitability of your strategy.


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Secret of Forex Momentum Indicator

Forex Momentum Indicator
Momentum / Price Rate of Change

The Momentum indicator is identical to the Price Rate-Of-Change indicator. The Momentum indicator compares the current price with the price of an x number of periods ago. The speed / degree of change in this period is as graphically made visible, and therefore, the conduct of these changes over a long period of time.

Momentum Indicator Signals
The Momentum indicator is useful to confirm trends and trend reversal points by divergences. The Momentum indicator is not useful as an overbought / oversold indicator.

Momentum Indicator forex Trend Confirmation
An uptrend in the price chart is confirmed with a momentum value above 0, while a downtrend is confirmed with an indicator value below 0. Momentum Since the speed of change will indicate a gradual uptrend in the Momentum value is stable above 0 while moving at a rapid rise which then flattens the Momentum first peaks and then slowly sinks back toward 0. Trading in crosses the zero line is interesting especially when these crossings preceded by divergences.

Momentum Indicator Divergences
In ascending peaks in the rate but declining peaks in the Momentum (negative divergence) gives the Momentum a warning signal that the trend weakens. The speed of the increase is declining. The uptrend will soon come to an end. The same applies of course also vice versa when a positive divergence at the end of a down trend.
The graph below we see a declining momentum but still a rising rate. The strength of the uptrend is weakening and ends in a break and a lower bottom which coincides exactly with the intersection of positive to negative in the Momentum.

Calculation Momentum Forex Indicator
Momentum = (Last Price - Price (s) periods ago) / rate (n) periods ago
wherein (n) is the parameter value, eg 12 or 25.

A Momentum indicator value of -2.25 indicates that the rate is now 2.25 percent below the level of (n) periods ago is.


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Powerful DMI ADX Indicator

DMI ADX Indicator
DMI ADX Indicator

The DI (also known as DMI or DM) is a trend indicator. With a trend indicator you the trend direction and strength of the trend and observe changes in the trend direction signal.

The DI consists of 3 (head-) components. The basis of the indicator is the location of the + DI (Plus Directional Indicator) and the-DI (Minus Directional Indicator) relative to each other. Crossings are buying and selling signals. The difference between the two indicators is also shown as a separate line. The level of the ADX (Average Directional Movement) indicates the strength of a signal from the DI.

DMI ADX Indicator Signals

Crossovers
When the + DI line crosses the-DI line up is a buy signal and when the + DI line crosses the-DI line downwards, this is a sell signal.

To reach the acted with the DI not the victim of a sawing motion and the number of trades to reduce the "extreme point rule" be applied. The extreme point is a crossing over the + DI-DI, the high of the day and at a crossing below the + DI-DI the low of that day. The extreme point is then used as an entry point. If the price that extreme point or not checked, then an entry is not useful.

ADX
The value of a DI signal is also often associated with the height of the ADX assessed. A sale is interesting at ADX (R) above 20. Since it is under the use of the DI as a trend indicator can not be sufficiently profitable. An exception is a clear upward bewgeing of ADX. The ADX is described separately.

Distance + DI and-DI
If the distance between the DI +, and Di-the larger, indicating that an increasing power of the trend. If the lines are moving towards each other, there is a weakening of the trend.

Calculation
= DI + + DM / TR, DI = DM-/TR with
TR = max [abs (High-Low), abs (High SlotVorigeDag), abs (Low-SlotVorigeDag)]
DM + = max [0; High HoogVorigeDag]
DM = max [0; LaagVorigeDag-Low]

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How to use Bollinger Band

How to use Bollinger Band
How to use Bollinger Band

The Bollinger bands are two lines Built around a moving average. These lines can be calculated from the standard deviation. The standard deviation measures the volatility. The indicator can voorla a trend reversal and continuation be determined.

Bollinger band signals

Sharp fluctuations courtyard mainly take place as the band narrows and the volatility decreases. In the figure, this is available from A.

Currency outside the bands
A rate outside of the band indicates a continuation of the current trend. In the figure, this is available from B.

Bottoms and tops
Bottoms and tops out of band followed by bottoms and tops in the band indicate reversals (reversal). In the figure, this is available from C.

Signals in the Bollinger Bands

calculation
The middle band is a simple moving average. In the formula, n is the number of periods in the moving average and y is the close.

Middle band

The tires were the same as the band means, but are shifted by the number of standard deviations. In the formula, D is the number of standard deviations.

Upper and lower band

By means of a table, then the tape is to be calculated.

The Bollinger Bands in ProRealTime
In ProRealTime we have the Bollinger bands (Boll Boll + and-) standard shown as purple lines and the MA (BollMA) is also purple. At a glance the width of the bands as well as whether the course falls within or outside of you want to see a color zone set. This zone is standard color purple. Naturally, you can customize default 20.2. Optionally, the values in a backtest to optimize for specific situations and markets.


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RSI Trading System

RSI Trading System
Trading Strategy: Dynamic RSI

The Dynamic RSI system is used for swing trading on stock market indices and stocks. It is a strategy shows relatively few signs. Dynamic RSI was designed by a Dutch analyst.

Given that signals rather rare and that there is a wide range of indices and stocks must work, it is advisable to work with a scanner. WHS Tech Scan scans every day all stocks, indices and forex pairs and scans including Dynamic RSI signals.

Trading system rules
e RSI is an oscillator. An oscillator measures the speed and strength of price movements. If a price movement extremely fast and powerful, the RSI is above certain thresholds will rise or fall. These thresholds have been called overbought and oversold.

The classic RSI has two drawbacks. Firstly, the indicator does not take into account the intrinsic volatility. Secondly, the overbought and oversold static thresholds. The Dynamic RSI solves this by creating dynamic thresholds. The thresholds thus to adapt to the market and the underlying financial instrument. In this screenshot you can see clearly the difference between the classic RSI with fixed thresholds and the Dynamic RSI with dynamic thresholds.

Decreases the Dynamic RSI below the lower threshold, then the instrument is sold over-. A rate increase is possible. Dynamic contrast RSI rises above the upper threshold, then the instrument is over-bought. A price reduction is possible. Opening a position does not happen immediately when the price goes through the threshold. Only when the Dynamic RSI back in the other direction by the threshold is, the position is open.


This screenshot shows two short sell signals (1, 4) and three buy signals (2, 3, 5). The position is only open when the Dynamic RSI back in the other direction by the threshold goes. This is indicated by the circles.

Attention. Some traders filtering Dynamic RSI signals. They open only when the signal is a position in the direction of the trend. Buy signals if the market is bullish, short sell signals when the market is bearish. To determine the trend they usually use: a 3 Line Break chart.

When to close a position?
As is often the case with any strategies designed by analysts, there is no specific information about the determination of target and stop for the position. In this case, there can then be worked best with a target stop, and the day on the basis of ATR (average true range).


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Double Stochastic Oscillator Trading

Double Stochastic

Indicators : 9,3,3 Stochastic oscillator and 21,9,9 stochastic oscillator
Time Frame Chart : 1 day, 1 hour
Currency Pair: EUR / USD
Double Stochastic Oscillator Trading
Trading rules:
When the Stochastic (21,9,9) crossed the Stochastic (9,3,3) entry trade, exit when the Stochastic (21,9,9) cross the Stochastic (9,3,3).


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Best Forex Trading Strategy

Range Forex Trading Strategy

Range trading is the advantage of lateral movements of the price. Range trading strategies are needed eg for futures trading in the stock market and of course currency trading (Forex), which is eminently suitable range trading strategies. To be a successful range trading strategy to you several steps.

Suppose that there is a range

You can use several methods to determine a price to the ranks, but the easiest (and no less accurate) is to make use of Bollinger Bands and your own common sense, namely by the forex charts to see that match the period within which you usually trade, and to search for the resistance and support levels. Is the price at least 1 times came back from a resistance and support levels, then it is probably a range of shaping. (More about identifying a potential range trade). See for example the chart of the currency pair USD / JPY below. The Bollinger Bands show here clearly show the range within which is a channel that may emerge from the second time that the low is not broken.
Best Forex Trading Strategy
Determine the entry point for the trade (the trigger)

A good entry point for the trade is the first corrective candle that brings price back within the range after it had broken through there first. You should first candle closing outside the range. Then there must be a candle within the range close to the trade to trigger. This way you create a setup that is based on the hypothesis that the price to the ranks is. It is always the price again by the resistance / support level shooting, but there you have to stop losses. Your task in determining the best entry point is to establish a point where all signals are on green for a nice profitable trade.
set stop loss and take profit in

Your stop loss should you turn just past the peak / valley by which the price range going broke in the Forex, before he withdrew. Your hypothesis is that the price goes back within the range occurred, if the price instead again by the resistance / support level and break through to an even higher peak / valley to make even deeper, then your hypothesis is not knocked out and you the trade steps.

You set your take profit in just past the resistance / support level on the other side of the range, where you as it is good for on the go. Your hypothesis is that the price peaks beyond the first resistance / support level and then back again within the range to return.

Chase not the breakout when you stop / loss triggered

It is tempting to open a Forex position which speculates on the breakout which you stop / loss is triggered. The idea then is that because you stop / loss is triggered, there is almost by definition there must be a breakout (this is of course nonsense, but you have not chosen anything hand, it is difficult to see that you just your stop / loss put the wrong one) and that you want to make good loss by now jumping on the breakout.
There may of course be a real breakout, but more often you will increase your losses by semi-committed to a breakout occurred that go very well be a false breakout may prove to be. If you've selected the range trade is better to stay put if you stopped making hits out to re-analyze the most likely rate pattern for the currency pair.


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Ichimoku Trading System


Ichimoku kinko hyo forex indicator can be traded in foreign exchange currency, stock exchange , futures and commodity. Ichimoku kinko hyo means one glance equilibrium chart. Ichimoku indicator forex can be traded alongside other forex indicators such as Relative strength index RSI indicator, MACD moving average convergence divergence Indicator. Ichimoku indicator is a powerful forex indicator on its own as it combines elements of support and resistance, time, volatility and sentiment of the market.

Indicator Ichimoku introduced by Goichi Hosoda a Japanese newspaper in 1968.

Ichimoku Trading System

Kumo break Trading Strategy in Ichimoku indicator, Forex traders usually find to entry sell positions when market breaks support levels and entry buy positions when market price breaks resistance levels. A same strategy can be traded by going short when market price break below the cloud and going for long positions when price break above the cloud.



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Regression Channel

Regression Channel
A linear regression channel trendline is a channel line drawn through a forex price chart. the top linear regression channel line determines resistance levels and the bottom linear regression channel line determines support levels. Drawing parallel trend lines below and above creates the linear regression channel. Trendline of the linear regression channel using two standard deviations.


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Forex ENTRY STRATEGY (SET-UPS)


Forex ENTRY STRATEGY (SET-UPS)

Profitable trading systems start with the formation of a good forex strategy for opening a position. In recent articles we explain it-except on the functioning of the Forex market mostly discussed the importance of fundamental analysis and technical analysis. Prices in financial markets are established through the direct action of supply and demand, and fundamentals and technical indicators can provide insight into the relative strengths of the bulls who go for the uptrend and downtrend the warriors we call the bears. In upcoming articles we include in the successful use of information, but also other issues that are important for successful trading.


Set-Ups

Most Forex traders use fundamentals (news) and technical indicators to find the appropriate entry point for their trade. Often they use different indicators, all in a certain direction should point before a position is taken. Such a set of conditions which must be met before a position is taken in traders jargon is called a Set up.
Example of a Set up:

1) Bollinger Bands to the significance of price movements may indicate.

2) Price to the upper or lower band break (break out)

3) Price candle must also close above the upper or the lower band

4) Prices should then retracen below the upper band (in case of uptrend) or above the lower band (in case of downtrend)

5) If these four conditions are met, the set up is completed, and takes a position in the trader in the direction of the break-out.
Another example of a Set up:
50 euro free markets

The famous group of traders with the illustrious name Turtles made in the 80's hit. It was a group of about 10 people, ranging from postal workers to accountants who have no had experience occurred, until a very successful trader in the care taken, because the latter wanted to prove that you have successfully entered everyone could learn. The Turtles earned in some years more than $ 100 million. One of their favorite set ups was the search to 20 day highs / lows of a commodity. Then they positions in the direction of the break-out.


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Trends found with Bollinger Bands

Trends found with Bollinger Bands
Trends found with Bollinger Bands

Technical Analysis and Bollinger Bands really belong together. A classic example of a technical analysis in Forex is a forex chart with candlesticks and Bollinger band channel that runs along the course. Many forex strategy makes extensive use of this technical indicator. Even when entered on the online currency market, they are widely used, because Bollinger Bands provide many useful forex information.

For a successful trader is nothing more beautiful than freeloading with a trend movement. A position as the trend was not so long busy and then enjoy the next trend price movement you with every pip richer and richer. Range trading is also exactly the same, but the 'trends' much shorter.


But when is there a trend? And how do you find him? That's where technical analysis can help with, and where Bollinger Bands can play a role. Bollinger Bands are based on the simple but fundamental idea that prices are between 70 and 80% of the time moving in a certain bandwidth. When located outside this bandwidth rates begin to move, there may be from the beginning of a trend.

Bands which Bollinger to do is to measure the standard deviation (SD) of the price, in relation to the moving average over 20 periods of time.

In Example I above the Bollinger Bands are close together. This indicates a low volatility is in the market, because the difference between the two extremes-SD SD on the top and at the bottom-small.

In the following example, the Bollinger Bands II are rather far apart. The price movement is just so very volatile, making it harder to predict what the market will do.




Bollinger Bands use it to take positions and to leave

For the successful use of Bolinger Bands in Forex are three important questions:

1) Trend dectectie: when is there a trend?

2) Entry Point: When position to take?

3) Exit Point: When the trend is over?

Of these questions is the third-surprisingly-perhaps the most important. The value of exit points is considered by many traders often greatly underestimated. Most traders want to know especially when they have steps. What part should I buy? Which currency will go down? Of course it is important to choose a good time to step in, but most traders lose because they run on balance: a) not able to limit their losses, b) not maximize their profits. Both a and b are determined by finding exit points. (Here we go away, in the strategy section, deeper in)


Trend detection: when is there a trend?

When using the Bolinger Bands, we assume a trend like the candlestick above the upper Bollinger Band or below the lower band closes (the buy / sell zone). The Band touching or crossing is not enough. The close above / below the belt means that there may be a 'final' (if there is ever final in financial trading, Smile) breakthrough is made.


Entry point: When cursor position

Even closing the candle in the buy / sell zone, yet we do not take an immediate position. Why not? Because we are searching for low-risk probabilities. The difference between winning and losing traders have far less to do with the choice of a 'winner' and more to do with minimizing the risk and the maximization of profits for the times you're right. Therefore it is better to wait until prices retracen before boarding.

Price retracement will almost always take place. Even in a huge bull market because people take profits and are traders who think the top / bottom in sight and therefore opposite positions. Boarding after retracement is what successful traders do. They try not to make trends (if you like you better in the fashion industry to work) but trends. If you get in retracement after you reduce the financial risk of your position properly. If the price will continue moving away from the top / bottom than in the first place, there was no trend al. The difference with people who occupied their position immediately as soon as the candle closed above / below the belt is that your loss is much smaller. Was there really a question of retracement and returns the price back above / below the belt then your profit also increased.

Position is what we do as the price for a moment back in (in case of uptrend) The Band (and vice versa for downtrend). If the price is well above / below the belt then we closed position when the price gets to the Band retracement. In both cases, so watch your step in if prices temporarily fell / rose, so you catch the retracement and thus reduces your losses if the trend does not continue (retracement retracement but was not put through) and increase your profits if you do cables (because you're at a better price boarded).


In exceptional cases you have bad luck and there is hardly any price retracement but pops through and through. That is a pity, but in the long term you will earn much more / less or lose by waiting for the retracement.


Exit point: when the trend is over?

As said this is the most important question because it both reduces your losses and not every position is simply a winner-if you will maximize profits.

Many novice traders know soon the old traders adage: cut your losses short and let your profits run. This adage is seen as the golden rule of trading. Why are there so many losing traders if everyone knows this adage? Because many people find it difficult to stick to that rule to hold.


What is the biggest temptation when you are in a casino or at the table much money you have lost? Exactly, more bets. Many people thus enhance their true losses (on the financial markets there is often a trader in that he argues that the signals really well understood, and so really just 'right', even though deficits pile up). At the same time it is quite natural to secure profits, because nothing is more annoying than to see profits evaporate to zero or worse, to try to save loss. Many traders do is exactly the opposite of the golden rule, namely, run Their losses Their profits and cut short.

Consider and determine exit points can prevent this, provided you stick to your own exit points, of course. Smile


The exit point for loss take when working with Bollinger Bands is to hit the opposite band, so in the case of the uptrend is hitting the lower Bollinger Band the time to get out. Why no crossing of the Band or closing the Candle in the Band? Again, this has everything to do with avoiding risk. A trend movement is not strong enough to rise above the opposite band is no trend to continue movement (or at most a very weak) and is therefore not a risk worth taking. Poker residents, could also be reminded of the adage: know when to release a shitty hand

The exit point to take profits may be the same as for loss shall, with the variation that you can also decide to use a portion of the profits to secure the exit point not on the opposite strap to make but in the middle of the two Tires. Profit maximization is not optimal, but for some traders it is more important to the pleasure of tasting a nice (but not great) profit.


The correct use of Bollinger Bands not only increases the chances of trend detection and thus the successful follow-but it compels you to think about exit points (both loss and take profit maximization). The latter ensures that you're more aware of occurred and paves the way for developing a winning trading strategy.


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