Forex as a kind of business

Posted on October 6th, 2008 by admin, under online forex trading.

Forex, or international market of currencies, endures popularity peak today. It is an important and legitimate foreign currency business. This business of trading in cash currency around the world is necessary and has been a viable way for major banks and businesses to protect themselves from exchange rate risk for probably hundreds of years.

Forex trading strategies are used by millions of people around the world, successfully increasing their capital. Everyone who has access to the Internet, small financial savings and an analytical mind can take part in the Forex system. Online Forex trading allows you to effectively manage your money, earning only on the difference in exchange rates.

Forex Market is as a matter of fact a subset of the financial world market whose daily cash flow is more than 3 trillion dollars. Thanks to the rich opportunities and the minimal requirements to participants, working with Forex became a special form of business. World central banks, companies putting the investments into Forex, importers and exporters, brokers and Forex traders interacts in it. All of them, participating in the bidding, make monetary operations and aspire to get profit.

Anyone who want to earn on Forex must have relevant information about the financial market – indicators and quotations, forecasts and other news.

SLP Trading Group

http://shop.profxtools.com

No Comments

Forex Trading Strategy

Posted on June 25th, 2008 by admin, under online forex trading.

Trade in the financial markets, as any serious business is built on the application of a set of Forex trading strategies. There are many strategies described in traders practice which become classical ones. However, each skilled trader has its own set of Forex trading strategies depending on the situation. A distinctive feature of an experienced trader is its own set of strategies and their regular use for achievement of success.

Forex trading strategy may depend on many factors. For example, the type of financial active, the size of a controlled deposit, time horizon, psychological aspects of the trader and his personal perception of risk. To be successful and receive regular profits from trade investor must create their own forex trading strategy, test it and, equally important, apply it regularly.

Forex trading strategy is a set of rules for the transactions. These rules are formulated by trader, regularly tested and applied. A set of Forex trading strategies will keep trader from excessive stress of uncertainty, of hasty decisions that might harm the deposit. Forex trading strategy should not only help the trader to go to the market at the right time and in the right place (this is called planning entry point), but also help him to close the position with maximal or planned profit.

Good forex trading strategy contains not only strict rules for trade. At the same time it must be flexible and adaptable to changing market conditions, which is a not fallen asleep scheme, but almost a living organism.

Overall, forex trading strategy should or may contain:
• a set of tools on which you will trade;
• method of analysis (technical or fundamental), by which

trader will be guided;
• Time trading interval: weekly, daily, intraday;
• rules to work only on the trend, or against it;
• use of figures of forex technical analysis;
• use a candle forex analysis, etc.

Can I use strangers Forex trading strategies? There are no rigid rules. Try it. However, an effective forex trading strategy of one player, may be totally unacceptable for another. To compare Forex trading strategies and systems it is necessary to establish criteria for their evaluation.

With the development of computer technology forex market analysis methods become more complicated. More and more complex indicators from the mathematical point of view are created and trader go further away from the real prices of conduct, and looks at it as if through a filter. Today there are almost no players who can read ticker tape and conduct the tenders without computer.

No Comments

4-hour MACD FOREX strategy

Posted on June 13th, 2008 by admin, under online forex trading.

4-hour MACD FOREX strategy

Time range: H4

Used indicators: MACD, EMA, SMA

Transaction Volume: –

Algorithm of tactics:

According to the author, this forex strategy yields an average +300 points of profit per month. This forex strategy was successfully tested on historical data and more than two years traded on a real bill. Signal for entrance are patterns of MACD indicator on 4-hour schedule. Target profit and stop-loss levels are determined by the levels of support and resistance, as well as moving averages or Fibonacci levels.

Used tools

Moving Averages:
365 Exponential Moving Average (365EMA)
200 Simple Moving Average (200SMA)
89 Simple Moving Average (89SMA)
21 Exponential Moving Average (21EMA)
8 Exponential Moving Average (8EMA)MACD:
Fast EMA 5
Slow EMA 13
MACD EMA 1Horizontal Lines:Three sets of horizontal lines above and below zero should be set directly in a window of MACD indicator.

Level +0.0015
Level +0.0030
Level +0.0045
Level -0.0015
Level -0.0030
Level -0.0045

This is how your schedule should look like

Patterns, that MACD creates are very profitable as a rule. However one should execute only those signals which have high probability of success. The strongest patterns are represented in figures below.

At A and D patterns, MACD moved beyond the level of 0.0045, as a rule, this suggests a possible correction or a change of trend. This are contrtrend patterns. Patterns B and C are trend ones, they allow to enter in the direction of the prevailing trend. The red circles indicates to signal of the entrance. One should enter at the opening of the next bar.

Head and shoulders

Double Peak and basis

When MACD decreases to a zero line and it is launched back aside a dominating trend, being kept hardly above a zero line is a signal of a proceeding tendency. Such movement should be taken, as usually it happens strong.

Round peaks and bases. A good signal for action. Just be careful when MACD is within the first zone of 0.0000 0.0015 above or below zero. Pattern should be considered a good signal if rounding formed at least 5 bars.

Examples of patterns MACD on real schedules

The graph below shows how the price like playing, revolves around the levels of support and resistance. The first entry was above average sliding profits and the first goal will be around fast moving average (8EMA and 21EMA). The second goal arrived around will be slow moving average (89SMA and 365EMA). The third goal arrived on the price level will be 1.2100, etc., etc., etc. This is an example of how to plan your trade in advance to take partial profit until the sale is completed.

A level that was last tested by price should be near the entry point so that a stop-loss could be set to this level.

SLP Trading Group

No Comments