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 | The need for a trading strategy in Forex markethttps://preview.redd.it/r6u8stdmeaw51.jpg?width=1320&format=pjpg&auto=webp&s=1b0292502d6e68f5c220af5a5851aeb8061b395bAlmost all trading manuals talk about the need to have your own trading strategy. First of all, the process of creating your trading scheme allows you to perfectly understand trading and exclude from it any eventuality that hides additional risk. Profitable forex strategy: it is a type of instruction for the trader, which helps to follow a clearly verified algorithm and safeguard his deposit from emotional errors and consequences of the unpredictability of the Forex currency market.Thanks to her, you will always know the answer to the question: how to act in certain market conditions. You have the conditions of opening a transaction, the conditions of its closing, likewise, you do not guess if it is time or not. You do what the trading strategy tells you. This does not mean that it cannot be changed. A healthy trading scheme in the forex market must be constantly adjusted, it must comply with the realities of current market trends, but there must be no unfounded arguments in it. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE Profitable Forex Strategy RedditTypes of trading strategiesThe forms of a trading strategy can combine a variety of methods. However, several of the most commonly used options can be highlighted.
Three most profitable Forex strategiesImportant! These strategies are the basis for building your own trading system. Indicator settings and recommended pending order levels are for consultation only. If you do not get a satisfactory outcome in the test result or in a live account, that does not mean that the problem is the strategy. It is enough to choose individual parameters of indicators under a separate asset and under the current market situation.1. “Bali” scalping strategyThis strategy is one of the most popular, at least its description can be found on many websites. However, the recommendations will be different. According to the author's idea, "Bali" refers to scalping tactics, as it facilitates a fairly short stop loss (SL) and take profit (TP). However, the recommended time frame is high, because the signals appear not very often. The authors recommend using the H1 interval and the EUR / USD currency pair.Indicators used:
The weighted linear moving average here acts as an additional filter. Due to the fact that LWMA gives more weight to the values of the last periods, the indicator in the long periods practically excludes delays. In some cases, LWMA can give a signal beforehand, but in this strategy only the moving position relative to price is important. Bearish LWMA is a buy signal, sell bullish.
The indicator is also based on the moving average, but the formula is slightly different for the calculation. Its marking is more precise (the impact of price noise has been eliminated). It allows you to identify the twists of the trend compared to the usual mobile with a slight anticipation. Trend Envelopes has an interesting property: the color of the line and its new location changes when the price penetrates its old trend line, a kind of signal.
The indicator is placed in a separate window below the chart. This is an oscillator whose task is to determine the pivot points of the trend. And it does so much faster than standard oscillators. It has two lines: the signal is dotted, the additional line is solid, but the receiver has 2 kinds of colors (orange and green).
Also Read: Make Money With Trading Conditions to open a long position:
https://preview.redd.it/t48d55s8faw51.jpg?width=1000&format=pjpg&auto=webp&s=1e93863745e74dec536178539817225767cbeb1c The arrow indicates a signal candle where a Trend Envelopes color change occurred. Note (purple ovals) that the blue line is below the orange line and goes upwards (in other cases the signal should be ignored). In the signal candle, the green DSS of momentum line is above the dotted line. Conditions to open a short position:
Some examples where a transaction cannot be opened:
The signals are relatively rare, a signal can be expected for several days. In half the cases, it is better to control the transaction and close in advance, without waiting for profit taking. We do not operate at the time of flat. Try this strategy directly in the browser and see the result. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE 2. “Va-Bank” candle strategyThis profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement, what went up quickly, sooner or later must fall. To trade you will only need a schedule on any platform and W1 time frame (although the daily interval can be used).You should estimate the size of the candle bodies of different currency pairs ( AUDCAD , AUDJPY , AUDUSD , EURGBP , EURJPY , GBPUSD , CHFJPY , NZDCHF , EURAUD , AUDCHF , CADCHF , EURUSD , EURCAD , GBPCHF ) and choose the largest distance from the opening to the close of the candle in the framework of the week. In this to open a transaction at the beginning of the following week.Conditions to open a long position:
https://preview.redd.it/vuihnqspfaw51.jpg?width=1000&format=pjpg&auto=webp&s=7641e9d7701911cc255c4f0c8a53e1660c35c9fe On this chart it is clearly seen that after each large bearish candle there is necessarily a bullish candle (although smaller). The only question is what period to take where it makes sense to compare the relative length of the candles. Here everything is individual for each currency pair. Note that a rising candle was observed followed by a few small bearish candles. But when it comes to minimizing risks, it is best not to open a long response position, as the relatively small decline from the previous week may continue. Conditions to open a short position:
https://preview.redd.it/tv4zmf5ufaw51.jpg?width=1000&format=pjpg&auto=webp&s=61cd1dcfc4aebfa6f80343b6c51f7a6e46358602 The red arrows point to the candles that had a large body around the previous bullish candles. Almost all signals turned out to be profitable, except for the transactions indicated by a blue arrow. The shortcomings of the strategy are rare signs, albeit with a high probability of profit. The best thing is that it can be used in several pairs at the same time. This strategy has an interesting modification based on similar logic. Investors with little capital opt for intraday strategies, as their money is insufficient to exert radical pressure on the market. Therefore, if there is a strong move on the weekly chart, this may indicate a cluster of large strong traders. In other words, if there are three weekly candles in one direction, it is most likely the fourth. Here you also have to take into account the psychological factor, 4 candles is equal to one month, and those who "push" the market in one direction, within a month will begin to set profits. Strategy principle:
https://preview.redd.it/iu7cwa7xfaw51.jpg?width=1000&format=pjpg&auto=webp&s=9195d24b72d2bda5394614380e9e5bc167f108a5 Of the 5 patterns, 4 were effective. Lack of strategy, the pattern can be expected 2-3 months. But when launching a multi-currency strategy this expectation is justified. Consider swaps! >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE 3. Parabolic Profit Based on Moving AverageThis strategy is universal and is usually given as an example for novice traders. It uses classic EMA (Exponential Moving Average) indicators for MT4 and Parabolic SAR, which acts as a confirmatory indicator.The strategy is trend. Most sources suggest using it in "minutes", but price noise reduces its efficiency. It is better to use M15-M30 intervals. Currency pairs - Any, but you may need to adjust the indicator settings. Indicators used:
Conditions to open a long position:
https://preview.redd.it/4un92jlegaw51.jpg?width=1000&format=pjpg&auto=webp&s=406a700c00722349622d031e20d0858e4196d18b This screen shows that all three signals (two long and one short) were effective. It would be possible to enter the market on the candle by following the signal (in order to accurately verify the direction of the trend), but you would then miss the right time to enter. It is up to you to decide whether it is worth the risk. For one-hour intervals, these parameters hardly work, so be sure to check the performance of the indicators for each period of time in a minimum span of three years. And now that you know the theory, a few words about how to put these strategies into practice. Ready? Then let's get started! From the theory to the practiceStep 1. Open demo account It's free, requires no deposit, takes up to 15 minutes, and no verification required. On the main page of your broker there is for sures a button "Register", click and follow the instructions. An account can also be opened from other menus (for example, from the top menu, from the commercial conditions of the account, etc.).Step 2. Familiarize yourself with the functionality of the Personal Area. It won't take long. It is at the most user friendly and intuitive. You just need to understand the instruments of the platform and understand how the trades are opened. Step 3. Launch the trading platform. The Personal Area has the platform incorporated, but it is impossible to add templates. Hence, the "Bali" and "Parabolic Profit" strategies can only be executed on MT4. Characteristics of an effective Forex strategy RedditAnd finally, let's see what makes a profitable Forex strategy effective. What properties should it have? Perhaps three of the most important characteristics can be pointed out.
Conclusion. To successfully trade the Forex currency market, create your own trading strategy. Learn what's new, learn out-of-the-box trading schemes, and improve your individual action plan in the market. Only in this case, the trading results will satisfy you to the fullest. Success, dear readers! >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE Join the community for more articles on trading and making money on the Forex and Stock market. ------------------------------------------------ ------------------------------------------------ Disclosure: This post contains affiliate links, if you click and make a purchase I may receive a commission - This has NO extra cost for you. |
 | 4 Forex and Stocks Scalping Strategies RedditWe take a look at scalping trading strategies, as well as some useful indicators.https://preview.redd.it/rb33l4c42nw51.jpg?width=600&format=pjpg&auto=webp&s=c225b90045dcd566f5a85e09cf51d887a1b69ed7 What does scalping mean?Scalping is a type of trading strategy designed to profit from small price changes since the benefits of these transactions are obtained quickly and once an operation has become profitable. All forms of trading require discipline, but because the number of trades is so large, and the profits from each trade are so small, a scalper must rigorously stick to their trading system, to avoid large losses that could eliminate dozens. successful operations.The scalper traders: they will take small profits to take advantage of the gains as they appear. The goal is a successful trading strategy by means of a large number of profitable trades, rather than a few successful trades with large profits. The scalping of the idea of a better risk exposure as the current time each operation is quite short, which reduces the risk of an adverse event that causes a big move. Furthermore, it is considered that smaller movements are easier to achieve than larger movements and that smaller movements are more frequent than larger ones. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE The best scalping strategies
Reddit Forex Scalping Strategies:1- Scalping trading using the stochastic oscillatorScalping can be achieved by using the stochastic oscillator. The term stochastic refers to the current price point relative to its range over a recent period of time. When comparing the price of a security with its recent range, a stochastic tries to provide potential changes. The scalping using said oscillator aims to capture the movements of a market trend, ie, one that moves up or down accordingly. Prices tend to close near the extremes of the recent range before a change occurs, as in the example seen below:https://preview.redd.it/7wy3ixui2nw51.png?width=1397&format=png&auto=webp&s=91f50d685dd4841015c51322cee9fb90701aad33 the chart above, for Brent over a three minute period, we can see that the price rises even higher, and the lows in the stochastic (marked with arrows) provide entry points for long trades, when the black line of% K is crosses over with the red dotted line of% D. The operation is exited when the stochastic reaches the maximum value of its range, above 80, when a bearish convergence appears, when the line of% K crosses below with% D. Rather, short positions would be used in a downtrend market, as in the example below. This time, instead of 'buying dips', we are 'selling raises'. Therefore, we will look for a bearish convergence in the direction of the trend, as highlighted below: https://preview.redd.it/y3qqvejs2nw51.png?width=1398&format=png&auto=webp&s=627f3ded47e901c1f9ea97d5416caeea49b9dc3f 2- Scalping using the moving averageAnother method is to use moving averages, usually with two relatively short-term and one longer-term to indicate the trend.In the examples below, on a three-minute chart of the EUR / USD pair , we are using 5- and 20-period moving averages in the short term, and a further 200-period moving averages in the long term. In the first chart, the longer-term moving average is rising, so we expect the five-period moving average to cross above the 20-period moving average, and then we take positions in the direction of the trend. These are marked with an arrow. https://preview.redd.it/22jquy1z2nw51.png?width=1499&format=png&auto=webp&s=ed4f724384b86f95dff584c596e25652f23f240d In the second example, the long-term moving average is declining, so we look for short positions when the price crosses below the 5-period moving average, which has already crossed below the 20-period moving average. https://preview.redd.it/0tl7mky23nw51.png?width=1496&format=png&auto=webp&s=ca7b44138901537185d9e0dbd639a799407ced08 It is important to remember that these trades are trending and that we are not trying to find and capture every move. As in any scalping strategy, it is essential to have good risk management with stops, which is vital to avoid large losses that could eliminate many small gains quickly. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE 3- Scalping with the use of the parabolic SAR indicatorThe Parabolic SAR is an indicator that highlights the direction in which the market is moving and also tries to provide entry and exit points. SAR is the acronym for ' stop and reversal ', which means stop and revocation. The indicator is a series of points placed above or below the price bars. One point below the price is bullish and one point above it is bearish.A change in the position of the points suggests that there is going to be a change in trend. The chart below shows the DAX on a five minute chart; You can open short trades when the price moves below the SAR points and long when the price moves above them. As you can see, some trends are quite widespread and at other times a trader will encounter many trades that generate losses. https://preview.redd.it/35uo837g3nw51.png?width=1498&format=png&auto=webp&s=f020a461c6ff1f8d49fab381da0713b1de75dbf7 4- Scalping using the RSILastly, investors can use an RSI strategy to find entry points that go with the prevailing trend. In the first example, the price is rising steadily, with three higher overall moving averages.Downs in the trend are to be bought, so when the RSI drops to 30 and then moves above this line, a possible entry point is created. https://preview.redd.it/fkk1df2k3nw51.png?width=1499&format=png&auto=webp&s=8e9b4c7b1af0d0732793ddf5dc462aeaa7321dc9 Conversely, when the RSI moves to 70 and then begins to decline within the downtrend, an opportunity is created to 'sell the rally', as we have seen in the example below. https://preview.redd.it/dlq4ge7p3nw51.png?width=1497&format=png&auto=webp&s=10eb4baf8bd92a4e0e33905464859b73871a6201 >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE What do you have to know before starting scalping strategies Reddit?The scalping requires the trader has an iron discipline, but also very demanding as far as time is concerned. Although long-term times and smaller sizes allow investors to move away from their platforms, given that there are few possible entries and can be controlled remotely, scalping requires the investor's full attention.Possible entry points can appear and disappear very quickly and therefore a trader must be very vigilant about his platform. For individuals who have a day job or other activities, scalping is not necessarily an ideal strategy. On the other hand, long-term operations with higher profit objectives are a more suitable option. It is difficult to execute a successful scalping strategy. One of the main reasons is that many operations need to be performed over time. Some research in this regard usually shows that more frequent investors only lose money faster, and have a negative capital curve. Instead, most investors are more successful and reduce their time commitments to trading, and even reduce stress by using long-term strategies and avoiding scalping strategies. The scalping requires quick responses to market movements and the ability to forgo an operation if the exact moment has passed. 'Chase' trades, along with a lack of stop-loss discipline, are the key reasons why scalpers are often unsuccessful. The idea of only being in the market for a short period of time sounds appealing, but the chances of being stopped out on a sudden move with a quick correction are high. Trading is an activity that rewards patience and discipline. Although those who are successful with scalping do demonstrate these qualities, they are a small number. Most investors do better with a long-term view, smaller position sizes, and a less frenetic pace of activity. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE |
 | FOREX StrategiesWhat are FOREX Strategies?https://preview.redd.it/ihmphstzguv51.jpg?width=960&format=pjpg&auto=webp&s=81f6b73c367d8695605514f8d32aaf3e2aeabc6e You may have noticed that most of people confuse the terminology and refer to FOREX Strategies in the wrong way. There are methodologies, systems, strategies, and techniques. The most effective methodology is Price Language (Trend Tracking). Combined with a correct reading of mass psychology presented by the charts. We know that in the Stock Markets there are thousands of strategies. FOREX, like the rest of the markets, presents you with the opportunity to apply similar strategies to win consistently. Taking advantage of repetitive psychological patterns. First, the Price Language methodology has created great fortunes in FOREX, and the next fortune may be yours. But this methodology must be implemented within a framework of advanced concepts of Markets. Without forgetting the basics. And working hard day by day. Second, a strategy is a set of parameters and techniques that together give you the advantage to act in any situation. Thus for example in war, generals have attack strategies and counterattack strategies. FOREX strategies alike are entry strategies and exit strategies. All beginners should know these FOREX strategies for beginners. That way you will get a general idea of the game and understand that trading is a war against the Market and its Specialists. Only applying FOREX strategies revealed by the same Specialists and using their own techniques, ... you can survive in this war. Do not fall into the trap of the many "systems" and "methods" that are offered on the internet about operating in the FOREX Market. They just don't work in the long run. They are strategies based on indicators for the most part. Using rigid parameters. That if they can work and give profitability during a certain period of time, they will always reach a breaking point when the market changes its dynamics. Instead, take advantage of your precious time and learn the Language of Price or Price Action. The Language methodology will allow you to adapt to each new phase of the Market. If you combine this knowledge with the appropriate psychological concepts, you can live comfortably from speculation in FOREX. Forex Trading Strategies Reddit - Basic FOREX StrategiesYou have two basic FOREX strategies, one entry, and one exit. Both follow a general strategy that helps you capitalize on the collective behaviors of the Market. That is, of the total of participating speculators.This behavior causes the formation of cycles that repeat over and over again. Driven by the basic emotions (uncertainty, greed, and panic) of the speculators involved that can be taken advantage of with the aforementioned FOREX strategies. Specialists identify these emotions in the order flow and capitalize on these events every hour, every day, and every month. Basic FOREX Strategies - The Price Cycle These repetitive cycles consist of 4 phases:
The two trends can be easily identified by their notorious breakdown. And the two areas of uncertainty (accumulation and distribution), due to their notorious range trajectories. This general behavior determines the core of our FOREX strategies. You buy when the price of a pair has broken and has come out of one of its congestion formations (accumulation or distribution). You implement one of the Forex strategies, in this case, the entry one. The multi-time technique will help you find the point of least risk when entering your initial buy or sell order. In the same way and using the same strategy but this time to close your position, the multiple timing technique will also show you how to close your operation obtaining the highest possible profit. The most consistent way to extract profits in the market is by trading the start of trends within a cycle . Once confirmed by their respective breaks from the areas of uncertainty. This is the mother of all FOREX strategies . And in a market that operates 24 hours, we have more frequent cycles and therefore more opportunities. Forex Trading Strategies Reddit - Advanced Forex StrategiesThere are many advanced FOREX strategies that are generally used by professional speculators working for large financial firms.Among these firms are banks, Investment Fund managers and Hedge Fund managers. The latter is an investment modality similar to Investment Funds, with the difference that Hedge Funds use more complex investment strategies. Its operations are more oriented to aggressive speculations in the short and medium-term. Among the most common strategies is hedging (hedging), carry trade, automated systems based on quantum mathematics. And a large number of combinations between the different option strategies. The Carry TradeThe central idea of Carry Trade is to buy a pair in which the base currency has a considerably higher interest rate than the quoted currency. To earn the difference in rates regardless of whether the price of the pair rises or falls.Suppose we buy a $ 100,000 lot of AUDJPY, which according to the rates on the chart would turn out to be the ideal instrument in this example to use the Forex carry trade strategy. As our capital is in US dollars we have to assume for our example, the following quotes necessary to perform the place calculations: AUD / JPY = 80.00 USD / JPY = 85.00 What happens internally in your broker is this.
The great advantage of carry trade FOREX strategies is that this percentage profit is applied to the $ 100,000 of the standard lot; the broker transfers all of the profit to you, even if you only contributed $ 1,000. On the other hand, if you carry out the inverse of this operation, this benefit of the Forex carry trade becomes a cost (swap), and you assume it completely. Remember that FOREX carry trade strategies are recommended for pairs with considerable interest rate differences, such as the one we have just seen in our example. These FOREX strategies should also not be used in isolation. The idea is that through technical analysis you identify when would be the ideal time to enter the market using your carry trade Forex strategy and multiply your profits considerably. What FOREX Strategies Do Hedge Funds Use?The FOREX strategies used by large fund managers do not constitute an advantage in terms of percentage results for them, nor do they constitute a competitive disadvantage for you.The vast majority of them fail because of their big egos. In fact, there was a firm made up of great financial geniuses, including 2 winners of the Nobel Prize in Economics, who developed a strategy based on quantum mathematical calculations. With an initial base capital of about 3 billion dollars, and after 3 successful years obtaining annual returns of over 40%, the firm Long-Term Capital Management, begins its fourth year with losses. To counteract these losses the geniuses decide to multiply the initial capital several times, while the losses continued. The year closed with the bankruptcy of the fund, and with a total accumulated loss of 1 trillion dollars, due to the great leverage used. And all for not admitting that the FOREX Strategies of Long Term Capital Management were not in line with the dynamics of the Market. There are an overwhelming number of opportunities in the stock markets to make money interpreting the Language of Price. You don't need to use complex "advanced" strategies that have been created to handle hundreds or billions of dollars. The reasons for using these FOREX strategies are very different from what a "retail trader" pursues with his small speculation business. As you can see, you should not worry about wanting to integrate any of these advanced strategies into your arsenal. They are only beneficial for managing hundreds or billions of dollars, where the return parameters are very different when you handle small amounts of capital. Do not worry about collecting hundreds of free FOREX strategies that circulate on the internet, that great accumulation of mediocre information will only serve to confuse you and waste your valuable time. Spend that time learning Price Action, … And you will always be one step behind the Specialists, identifying each new Market condition, and anticipating the vast majority of reversals of all prices. Ironically, the most successful fund managers indicate that their most profitable trades are those based on the basic trend-following strategies of the Price Language. The same ones that you will learn in this Free Course. Dedicate yourself to perfecting them and believe me you won't need anything else. As long as you have good risk management, taking into consideration the following points ... Styles of Investments in FOREXThe Investment FOREX long term is not recommended for small investors like you and me. If we take into account the term investing literally as large investors do who buy a financial product today to sell it years later.We both have a better niche in the short and medium-term. You may have noticed that the big multi-year trends in the Forex Market do exist. But minor swings within a big trend are usually very wide. These minor movements allow us to easily double and triple the annual return of the big general trend, motivating most traders to speculate in the short and medium-term. These minor oscillations or trends that occur within the large multi-year trends owe their occurrence mainly to two reasons. First, the FOREX Market presents 3 sessions a day each in different cities of the world with different time zones (Asia, Europe, and America). This causes more frequent trend changes than in the rest of the stock markets. Second, the purpose for which it was created also plays a role. The modern Foreign Exchange Market, since its inception in 1972, was conceived by the global financial system as a tool for speculation. To obtain benefits in the short and medium-term (from several days to 1 year). These two points are basically the reasons why we observe the immense speed with which the FOREX market changes trends. For example, for those who live in America, in the early morning (Europe) the EURUSD pair may be on the rise, in the morning or afternoon (America) it may be down, and then finally at night (Asia) it may return to the rise. Define your Own Style for your FOREX InvestmentsOne of the first decisions you will have to make is to choose your style as a trader or investor.There are 4 types of well-defined styles. Most professional traders tend to have multiple styles, although they always identify with one primary style for their FOREX investments. Study the characteristics of the 4 main styles to make your investments in FOREX : 1. Long Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per month to their investments in Forex. The period of an open position ranges from 1 year to 5 years. 2. Medium Term: recommended for anyone who is going to enter the market for the first time and who can dedicate a minimum of one hour per week to their investments in Forex. The period of an open position ranges from 1 month to 1 year. 3. Short Term: recommended for anyone who is going to enter the market for the first time, or who already has a certain time operating in the long and medium-term, showing constant profits, and who can dedicate a minimum of one hour per day to your investments in FOREX. The period of an open position ranges from 1 day to 1 month. 4. Intraday : recommended only for people with a fairly solid earnings record in the short term, and with a capital greater than $ 50,000. As we have noted, this option constitutes a full-time job. People who start investing in FOREX , should start executing short-term (weeks) and medium-term (months) transactions only, and not pay attention to intraday oscillations (day trading). If you are interested in being an intraday speculator, I recommend that you first exhaust at least a year doing operations in the short and medium-term to assimilate the correct strategies and to develop the necessary mentality to carry out this work. The second option would be to participate in some kind of intensive training. I remind you that self-educating is almost impossible in speculation. You are likely to accumulate a lot of knowledge by reading books and attending courses. But you will probably never learn to make money with all the incomplete "systems" circulating on the internet. Mistakes to Avoid When Looking for Your StyleMany people who are new to FOREX investments make the mistake of combining these styles, which is a key to failure.I recommend that if you are not getting the results you expected by adopting one of these styles, do not try to change it. The problem sure is not in the style, but in your strategies or in your psychology. A successful investor is able to make a profit in any longer trading time than he is used to. I explain. If you are already a profitable operator in the short term, it is very likely that you will also be profitable in the medium and long term, … As long as you can interpret the Language of Price or Price Action. In the opposite case, the same would not happen. If you were a medium-term trader, you would need time to adjust to the intraday. The reality is that long, medium and short term traders have very similar personalities. The intraday trader is completely different. The Myth of the Intraday in Investments in FOREXIf you are already successful in the short, medium and long term, you will notice that the sacrifice and the hours necessary in front of the computer to operate intraday is much greater. The intraday style will be useful to increase your account if it is less than USD $ 100,000 in a very short time in exchange for 8 to 12 hours a day of hard work but ...You must first develop the necessary skills to operate the intraday. The ideal is to combine all the styles to get more out of the Market and carry out more effective transactions and have a diversification in your investments in FOREX. There are intraday traders that are very successful, but the reality is that there are very few in the world that make a profit year after year. If you want to become an intraday, you just have to prepare yourself properly through intensive training. Otherwise, I recommend that you don't even think about educating yourself to adopt the intraday style. It is not necessary to go against a probability of failure greater than 99%. Unless ... your ego is greater than your common sense. The main reason why this style of investments in FOREX is not recommended for the vast majority of us "retail investors" (the official term "retail traders"), is the high operational cost. The real commissions in this market range between $ 2.0 and $ 2.50 for each lot of 100,000 virtual units. This means that a complete operation (opening and closing) is approximately $ 5.00, for each standard lot traded ($ 100,000 virtual). Another fundamental reason is the advent of robotic traders (HFT = High-Frequency Trading), which tend to manipulate the market in the shorter intraday swings. Please do not confuse HFTs with automated systems that we find daily on the internet, and that can be purchased for a few hundred dollars and often for free on FOREX forums / groups. These HFTs to which I refer, they are effective. They cost millions of dollars and have been developed by the large Wall Street financial firms to manage their investments in FOREX. The reality of the intraday trader is that you execute orders for large lots at the same time, to profit from the smallest movements in the market. It is an activity based on reflexes. The slightest oversight or distraction can turn into a catastrophe for your FOREX investments. I recommend that you start investing in FOREX using slow time periods such as H4 or Daily. For some reason, all Goldman Sachs intraday FOREX investments are made with algorithms. Finally…To choose your style as a trader and manage your investments in FOREX, first determine what your degree of experience is, analyze the points mentioned below and the rest you will discover when you execute your first operations.The points that will affect your decision are:
And I hope you are one of those who get up over and over again. The next lesson will boost your confidence when you discover the main reason that moves currencies ... Fundamental Analysis in Forex Trading RedditThe fundamental analysis in Forex is used mostly by long-term investors. Players as we saw in the styles of operators, start a negotiation today, to close it years later.I always emphasize the importance that the mass media give to this type of analysis to distract the great mass of participants. It is all part of a great mass psychological manipulation. For centuries the ignorance of the masses has been organized before the great movements begin. The important news are the macroeconomic reports published by the Central Banks and other government agencies destined for this work. All reports are made up. 99% of them are corrected months later. These events are tools to justify fundamental analysis and price cleaning movements. Any silly headline does the job. With this, it is possible to absorb most of the existing liquidity, before the new trend phase is projected. Reaction!Except in rare situations, the result of an economic report of the fundamental analysis is generally already assimilated in the graph. In most cases, there are financial institutions that already have access to this information and are organizing and carrying out their operations in advance.The phrase buy the rumor and sell the news is a very old adage on Wall Street. And its meaning contains what we have just explained. For the investor who can interpret the Language of Price, fundamental analysis is of little importance. Well, in general, their disclosure does not indicate that you have to take any action in your open trades , as long as your entry strategy provides you with a good support cushion. This reality of fundamental analysis causes a lot of confusion for investors who lack in-depth knowledge of the forex market. Macroeconomic DataThe data published in these events is irrelevant. Both for speculators and for the people in general. They are false. They lack reliability.The price can go up or down with the same result of the data. The main ones are: - Interest Rates - GDP (gross domestic product) - CPI (inflation) - ISM (manufacturing index) - NFP (payroll) - Double Deficits (deficit = fiscal + balance of payments) If you are initiated, I recommend you avoid operating near these events. It is only a matter of having the time pending. Use the economic calendar for Fundamental Analysis of Forex Factory. There is a probabilistic advantage in operating these fundamental analysis events. But it takes preparation, experience, and practice. They represent a way of diversifying in the general operation of a speculator. The Uncertainty of Fundamental AnalysisOn many occasions after the disclosure of an economic report, the price movement of the currency pair that is going to be affected tends to move in the opposite direction to the logic of the report.I show you an example of a fundamental analysis report. Imagine that the EUR / USD pair is trading at 1.2500, and the FED (US Federal Reserve) issues a statement announcing that it has just raised inter-bank interest rates from 0.25 points to 0.75 points. Very positive news for the US dollar that logically implies an appreciation of the currency and consequently an instantaneous collapse of the EUR / USD pair (up the dollar and down the euro) However, minutes after the release of said fundamental analysis report, the pair after effectively collapsing to 1.2400, returns and returns to its levels prior to the report (1.2500). This situation is very common , but it is not so easy to identify it when it is occurring, but after the damage is done. Traps like these devour the accounts of beginners who approach the market with little experience, with weak strategies, and especially with very little experience. That is why I reiterate that you forget the fundamental analysis for now. Just keep in mind when operating, that there is no publication scheduled nearby. Just check the economic calendar for the day and forget about the numbers. Let the economists mess around with the data. FOREX Market CorrelationThe Forex market correlation exists between pairs with similar "base" currencies and not always under the same circumstances. The correlation in the Forex market that is most followed and that has the greatest impact on fundamental analysis is that of the US dollar (USD).The USD is the most traded monetary unit with a volume greater than 80% with respect to the rest of the currencies. This fact determines why their correlation is the most important, the most followed, and perhaps the only one worth following in the fundamental macro analysis. The 7 major pairs are usually in sync . These 7 pairs all include the USD and present a fundamental analysis correlation almost 75% of the time. Influencing the rest of the currency pairs. Advantages of the FOREX Market CorrelationIn the fundamental analysis the most basic FOREX correlation is the following. When the USD appreciates, the USD / CAD, USD / CHF, and USD / JPY pairs tend to go up in price. This indicates that the Canadian dollar (CAD), the Swiss franc (CHF), and the Japanese yen (JPY) are losing value against the USD.We must bear in mind that this correlation does not occur 100% of the time. In fact, the JPY generally tends to move in the opposite direction , since in recent decades this currency has been used as a source of financing to invest in other financial instruments. On the other side is the FOREX market correlation that generates a movement almost in unison in the other 4 major pairs EUR / USD, GBP / USD, AUD / USD, and NZD / USD. These tend to fall in price, homologous the appreciation of the USD. But not always. In this case the fundamental analysis correlation works most of the time, between 65 and 85% of the time. Small differences are noted in the extent that each of these pairs experiences. There is also a correlation in the secondary FOREX market, where the pairs of all currencies that do not include the USD participate, but I recommend you not to waste time on them for now. There are more important things about the Language of Price to know first. FOREX Commodity CorrelationIn this part I will explain to you in a basic way the Correlation Commodities - FOREX of the fundamental analysis.There are three currencies that have a direct correlation with commodities. They are usually called: "COMDOLLS" which is short for "Commodities Dollars" (Commodities Dollars), since all three obey the dollar denomination. These are: - The New Zealand Dollar (NZD) - The Australian Dollar (AUD) - The Canadian Dollar (CAD) These three currencies make up the group of the 8 largest together with the euro, the pound, the yen, the franc and the US dollar. Together, they merge to produce the major pairs traded in the FOREX Foreign Exchange Market. The FOREX Commodity Correlation has an affinity in most cases greater than 75%. And each of them has its different raw material of correlation. You will notice that the NZD and the AUD are two currencies that act practically in unison. Both present minimal discrepancies in their fluctuations in the short, medium and long term. This is mainly because their economies are very similar and their economic and fiscal policies are too. Their main production items also show great similarities, despite the fact that the Australian economy is much larger than the New Zealand economy. The raw materials that follow the movement of the AUD are mainly gold and copper. If you put the history of these three quotes during the last decade of the year 2,000 together on the same chart, you will notice a very similar upward movement between the three quotes. Pure correlation of fundamental analysis. This strong correlation with commodities in the metals area for the AUD has provided Australia with an economic advantage enviable over the other major powers that have seen their currencies devalue sharply against the AUD. At the same time, they experience a constant decrease in the purchasing power of their citizens. The NZD maintains a correlation with raw materials related to agriculture and livestock, mainly including milk and its derivatives. It is one of the countries that dominates the world export of these economic items, and also has important exports of metals , although in smaller quantities than Australia. Finally, you have a correlation with raw materials in the energy area. For historical reasons the CAD, which is not the largest oil producer in the world, but an important supplier to the largest consumer that is the US, has seen its currency oscillate in line with oil prices. To make long-term investments in the Foreign Exchange Market, it is necessary to take into consideration at least one Commodity Correlation - FOREX in your fundamental analysis. Forex Technical Analysis RedditThe technical analysis is the methodology that interprets the movements of the price. Specialists look for liquidity to fund their business. The repetition of the strategies used by the specialists in their work generate repetitive patterns.If you were an analyst, you would develop the visual ability to identify such patterns on a graph. If you were a programmer you would quantify them mathematically using complex formulas. And if you could learn to interpret the Language of Price, you would have the ability to anticipate 90% of all movements that occur on a chart. And in this business, anticipating is what will make you money. Market prices are reflected and framed on a horizontal time axis and a vertical price axis. Prices go up or down according to the aggressiveness of the participating operators. In an efficient or balanced market these oscillations should be imperceptible. But in reality this is not the case, since the Market works thanks to the digital printing of hundreds of billions of units of paper money systematically distributed by the Central Banks through the banking system. These resources serve as a tool to manipulate 100% of the movements that occur in the FOREX Market. Are you looking for Technical Indicators? All technical indicators were created from the 70's. How do you think that for more than 200 years the speculators of the past accumulated great wealth? With the Language of Price. The best timing is given by the price itself. Indicator-generated entry signals usually occur at the wrong time. The basis of technical analysis is human psychology. Unfortunately, human beings are not perfect and are loaded with emotions that dominate their behavior in similar situations, creating repetitive and highly predictable behavior when it occurs in masses. The study of technical analysis through indicators and subjective training, originates and shapes the collective thinking on which all the traps that specialists execute every day to maintain their business are designed. If the majority won, the Market would cease to exist. Although you already know that the patterns are not generated by the masses , but the repetitive behavior of the Specialists in the face of the action response of the masses. It is very easy for speculaists, because they can see everyone's orders in their books. And they also exert a great influence on the decisions of the masses through the mass media. It is what I call the war between the Egg and the Stone , if you hit me you win and if I hit you also you win. The Deception of Modern Technical AnalysisThrough the centuries thousands of people have been able to extract great benefits from the financial markets by applying the basic strategies of technical analysis and the psychology of the Price Language.More than 200 years ago when the markets began to operate officially, fundamental analysis predominated, which was only used by large financial institutions. As this analysis tool began to become popular, these institutions began to apply the strategies of technical analysis. In recent decades and with the massification of internet technology, technical analysis has begun to be handled by anyone who has a computer with internet access. The same financial institutions, which have been present for more than a century and as a result of this overcrowding , establish a strategy to confuse and misinform about the true strategies of technical analysis. This has been accomplished in the following manner. Currently there are hundreds, if not thousands of technical indicators that have been developed by so-called "gurus" of technical analysis and that sell their magic indicators packed in a "system" or "method" that usually cost thousands of dollars, or simply with the publication of a book with which they generate large profits. Double benefit. The aim is to confuse the initiates in speculation and create the collective mentality that will originate the same behaviors over and over again. About 95% of these new entrants completely lose all the capital they invest in their early stages as investors. Leaving them with a negative experience and creating the idea and the image that financial markets are an exclusive area for geniuses with high academic levels and that only they can produce returns in the markets year after year. The initiate, having lost all his original capital, turns to these “gurus” for help and teachings. You spend more capital on the products they offer you and the cycle repeats itself . Obviously, the vast majority do not relapse and completely forget to re-engage in the stock markets. I hope you have not been a victim of this drama. Now I will show you the simplicity of a FOREX technical analysis , without the need to resort to any indicator as a tool to determine an effective entry or exit strategy when planning your operations. The Price CyclePreviously you studied in the FOREX strategies lesson, that the typical price cycle when it is reflected in a graph, presents four very specific phases and very easy to identify if you perform a technical analysis with common sense . These are:
You will be surprised by the simplicity with which thousands of people around the world and over the centuries have accumulated large sums of money by drawing a few simple lines and applying responsible risk management with their capital. How to Identify Trends?Being able to determine the trend phases within the price cycle is the essence of technical analysis since it is these two phases that provide you with the probabilistic advantage you need to operate in the markets and obtain constant returns.In the most plain and simple language, in the world of technical analysis, there are only two types of formations: trends and ranges. The trends, in turn, can be bullish if they go up, or bearish if they go down. The ranges, on the other hand, can be accumulation if they are at the beginning of the cycle, or distribution if they are in the high part of the cycle. As I had indicated in the topic of FOREX strategies when describing the price cycle. This sounds more like a play on words, but I will show you the practical definition to simplify your life and then you will apply these definitions on the graph so that everything makes more sense to you.
Some key points from the graph:
The Common Sense, The Less Common of SensesThe central idea of technical analysis consists in determining the price situation of a market, that is, in which phase of the pattern of its cycle it is currently conjugated with the collective thinking of the masses and the possible traps that the market would have prepared to remove. the capital at stake by the public.To carry out a precise technical analysis, you will use the support and resistance lines, which can be static (horizontal) or dynamic (projecting an angle with respect to the horizontal axis). Your common sense prevails here. If you show a 10-year-old a chart, they will be able to tell you if the price is going up or down. You will most likely have no idea how to draw the lines, but you will be able to establish the general trend. Simply using your common sense. By introducing indicators and other gadgets , the simplicity and effectiveness of the technical analysis created by your common sense evaporates. The following graph conceptually shows you all the possible situations in which you could draw these lines to carry out your technical analysis of the place. You can clearly observe a downtrend delimited by its dynamic trend line and an uptrend on the right side with its respective dynamic delimitation. https://preview.redd.it/5iehg0r6guv51.png?width=500&format=png&auto=webp&s=84c265a5d35da7ea970792c4bf40fe20b33bd8bd Forex Charts AnalysisI want to remind you that the formations or patterns that develop on the charts (triangles, wedges, pennants, boxes, etc.) only work to execute trades that have initially been confirmed by the static support and resistance lines and to read the collective thinking of the masses.Chart formations work, but you must know the Language of Price to determine when the Specialists will exploit a chartist figure, or when they will allow it to run. In fact, you will learn with the Language that you can operate a chart figure in any direction. Much of the "mentalization" that the masses receive is to believe that the figures are made to be respected. Which is an inefficient way of working. Simply because you could wait days or months for a perfect chart figure to occur in order to perform a reliable trade. When in fact there are dozens every day. Japanese CandlesOf all the tools you have to carry out technical analysis, perhaps the best known and most popular is the Japanese technique of candles (candlesticks).Candles are mainly used to identify reversal points on the chart without resorting to confirmation of horizontal trend lines and only using a previous bar or candle breaks. Its correct use is subject to a multi-time analysis (multiple temporalities) and a general evaluation of the context proposed by the market in general at the time of each scenario. Later I will show you all the important details to take into account so that you use Japanese candles in a simple and very effective way. Do not forget ... Trading in your beginnings based on formations (chartism) and candlestick patterns conjugated with hundreds of tools and technical indicators, constitutes the perfect path to your failure. Before using any strategy or technique I recommend you focus on learning the Price Language, which includes 3 basic things:
Specialists make money every day at the expense of the collective behavior caused by the use of these strategies and techniques. With which you will only manage to lose your capital and your time by putting the cart in front of the horse. People who do the opposite, at best become, ... Philosophers of Speculation, or indocile Robot Assistants or Expert Advisors. To make money in any market condition, range or trend, you must use the technical analysis based on the Price Language and combine it with a correct psychological reading of the price. This knowledge can only be acquired through proper education and lots of supervised practice. Like any other career in life. I hope you've found this guide helpful! |
This forex indicator is best used for intraday trading. You can trade it on all currency pairs and timeframes up to H4. This forex indicator is dedicated for MT4 and you can downlad it for free by clicking below. See 4 strategies using the awesome oscillator that you can start trading with today. Learn rules for how to enter, manage and exit the trades. Understand where the awesome oscillator can fail in order to protect your account. Uncover why the E-mini contract is great for using with the AO indicator. Finding the best combination of Forex indicators for day trading can be quite hard – a trend indicator says “buy” when an oscillator says “sell” and vice-versa. However, by combining different indicators to different timeframes, a trader can take advantage of their strengths and reduce fake signals to a minimum. Keep reading, and we’ll show you how to day trade with the popular ... The Gator Oscillator indicator, recommended to be used with the Alligator indicator, is one of the famous indicators of Billi Williams who is famous for his Chaos Theory. It measures the distance between Crocodile’s jaw and teeth, and Crocodile’s teeth and lips. Also, it can be accepted as a leading indicator for the BUY-SELL decisions on the financial asset via allowing us to see the ... The best oscillator (for me!) is Moving Average. Like mladen wrote in the answer above, that BB can be an oscillator, MA also can be. And personally, I often use it in this way. This is not easily seen on naked charts, but if You'll take and analyze some performance indicator for MA, then you'll notice, that better is to sell over MA and to buy below. Especially if it is about close prices on ... The Stochastic Oscillator helps us detect the overbought and oversold regions. It is one of the most used indicators for short term strategies in the Forex Oscillators work best in ranging markets because in trending markets they can show overbought or oversold conditions too soon. Common things to look for are a midpoint cross, approaching maximum or minimum value and regular or hidden divergence. Oscillators are usually plotted with a line or histogram. There are many oscillators such as the Relative Strength Index, the Stochastic Oscillator ... One of the best ways to anticipate a trend is by identifying convergences. The Awesome Oscillator Cloud Forex Trading Strategy helps traders identify convergences that have a high probability of resulting in a trend. Awesome Oscillator. The Awesome Oscillator is a momentum based oscillating indicator which is used to indicate trend direction. The concept behind this indicator is quite simple ... The Best Forex Oscillators. Let’s quickly take a look at a few of the best Forex oscillators around and what they can do for you. Stochastics . One of the most valuable Forex oscillators to be familiar with is the Stochastics oscillator, which is specifically designed to inform traders if a security is overbought or oversold. This is done by comparing the periodic closing price of a security ...
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