The Dollar was a main recipient of safe-haven flows as we had further contagion fears in the Euro-zone as Moody’s placed Portugal under review for a downgrade. The EUR/USD hit a 14-month low, and with oil and gold falling commodity currencies weakened as well. US equities managed to cut early losses and by noon NY-time we saw a small counter-rally to the overnight risk aversion. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
www.informedtrades.com A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Standard Deviation is here: en.wikipedia.org The link that I refer to with more resources on Bollinger Bands is here: www.informedtrades.com In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices. Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average. Example of Bollinger Bands: Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here en.wikipedia.org As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average …
www.informedtrades.com A lesson on how to trade the Parabolic Stop and Reversal (SAR) indicator for traders of the forex, futures, and stock markets. In our last lesson we learned about the Average Directional Index (ADX) an indicator which helps traders determine the strength of trends in the market. In today’s lesson we are going to look at another indicator called the Parabolic Stop and Reversal (Parabolic SAR), which helps traders enter and manage positions when trading those trends. The Parabolic SAR is an indicator that, like Bollinger bands is plotted on price, the general idea of which is to buy into up trends when the indicator is below price, and sell into downtrends when the indicator is above price. Once traders are in positions the indicator also assists in managing the position by providing guidance as to how one should trail their stop. Example of the Parabolic SAR While this is an indicator that works very well in trending markets, as you can see from the below chart simply following the basic be long when the indicator is below price and be short when the indicator is above price will lead to many whipsaws in range bound markets. Example of Whipsaws in Range Bound Markets To combat this problem the developer of the indicator J. Welles Wilder (who also developed the RSI and ADX) recommended establishing the strength and direction of the trend first through the use of things such as the ADX, and then using the Parabolic SAR to trade that trend. As mentioned …
Friday, March 26th, 2010 Recap: A joint EU-IMF back-stop aid package was agreed upon, which would provide loans which could be worth between 20 billion and 22 billion euro. That gave relief to a pressured Euro which rallied in today’s trading. The greenback however still showed strength against commodity currencies like the Aussie as there was a bout of liquidation of Aussie long positions. News Provided by fxtimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
www.informedtrades.com The second lesson of two on what rollover is and how it works for traders of the forex market who hold trading positions overnight.
www.4exnews.com/services present this lesson about trading forex using moving average If you liked this video and want more videos and information please visit us at: www.4exnews.com/services
Most forex exchange traders by now should know what the “trend” is. The old saying “The Trend Is Your Friend” is not just a simple rhyme, but an excellent tip for a trader if used properly. Finding the trend in the currency pair you are trading is usually a good place to start. It can give you an idea on where the market is turning. Not all of the time it is best to just follow the trend, but it is a good starting point for giving you an idea of the market direction.
In some cases in forex exchange trading, it can be a little difficult figuring out when a good time to follow the trend is and when to take your own intuition on the trade. There are many different world events that can affect your currency values and put a change of direction into the market. A great way to keep up with this is to read current local and global news every day. Being aware of events going on around the world can have a positive influence on your trading intuition.
When it comes to forex exchange, it is important to constantly intake information about the market, and not to just focus on it shortly before your trading session. Prepare for hours, if not days before you jump back into the market if you have been away for some time. If you are a day behind on your market conditions and affecting worldwide events, then your trading skills are also a day behind. Many traders dont realize this and wonder why they are not a successful trader.
Being a forex exchange trader, constantly saturating yourself with information on the market, you are going to find that trades come easy to you. The reason for this is that your mind is constantly absorbing and connecting the information you read about without even realizing it. You may find that your trading will become a second nature. The successful day traders do this everyday and make a career out of it. The reason to their success is their constant intake of information.
Following the forex exchange trend is a good start point, but in order to soar to success you need to take your skills beyond that for real results. Don’t turn into an average trader, or a failing statistic. Allow yourself to be consumed by forex trading, and you will be able to master it. Second guessing your trades can be a bad move. Know your niche, your either good at what you do or not. Which would you rather be? It takes dedication.
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May 07 2010