Ce trebuie să știm - forex trading software free

Ce trebuie să știm ~ forex trading software free

Începem s?pt?mana de tranzac?ionare cu b?ncile canadiene ?i americane în vacan?? ceea ce evident va conduce la o lips? de lichiditate  în pia?? f?cand ziua de luni extrem de neatractiv?.
Ca de obicei pentru luni am preg?tit o actualizare a perspectivei noastre asupra principalelor monede.
Dolarul american r?mâne cea mai puternic? moned? pe termen lung iar pia?a se a?teapt? acum ca Fed s? ridice ratele la sfâr?itul anului 2015.
FOMC vrea s? vad? o îmbun?t??ire suplimentar? a locurilor de munc? ?i s? fie suficient de încrez?tori c? ?inta de infla?ie vizat? la 2% nu va fi afectat?.
IPC Core este stabil, la 1,8%, care este sub 2% tinta Fed. Sc?derile recente ale pre?urilor materiilor prime ?i sc?derile cererilor din China provoac? o sc?dere a anticipa?iilor infla?ioniste. Aceste turbulen?e de pe pie?e sunt de natur? s? diminueze încrederea c? Fed va ridica ratele în luna septembrie.

Moneda european? r?mâne pe termen mediu slab? din cauza programului de relaxare cantitativ?, care este în curs de desf??urare ?i se a?teapt? s? continue pentru cel pu?in înc? 12-18 luni.
Infla?ia ?i cre?terea economic? din ultimele luni nu au reu?it s? demonstreze c? economia se redreseaz? într-un ritm rezonabil.
Mai mult, BCE a retrogradat previziunile PIB ?i IPC ?i au scos în eviden?? riscurile în sensul deceler?rii  infla?iei.
BCE men?ine pozi?ia sa dovish care men?ine presiunea asupra monedei euro.
 Euro poate consolida , pe termen scurt, ca urmare a tranzac?iilor de EUR/CNH short, tranzac?ii de tip carry care apar atunci când yuanului îi este permis s? se deprecieze, ceea ce face tranzac?iile s? fie mai pu?in atractive.

Lira Sterlin? pe termen lung se a?teapt? s? creasc? datorit? a?tept?rilor ca rata de doband? s? creasc? înainte de 2016. Cre?terea recent? a locurilor de munc? a fost deosebit? ?i comentariile BOE au fost agresive.
IPC anual Core r?mâne îns? sub 1%. Lira a cunoscut o sc?dere accentuat? în ultimele s?pt?mâni, ca urmare a preocup?rilor legate de viitoarea evolu?ie a pie?elor globale, sl?birea cererii din China ?i a pre?urilor la petrol , toate presiunile puse pe ?intele de infla?ie anticipate a determinat pia?? s? corecteze masiv raliul realizat de lira  în timpul ultimelor 12 luni.

În ciuda num?rului locurilor de munc? ?i a infla?iei aproape de ?int?, Australia începe s? simt? efectele de sc?derii pre?ului la materiile prime.
 Cifrele recente PIB pentru Q2 ne arat? c? estim?rile au fost ratate. În continuare se prognozeaz? o încetinire a economiei China - un mare importator de minerale din Australia - toate acestea pun presiune negativ? asupra perspectivelor economice.

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An options workshop and other miscellany - forex trading strategies reviews

An options workshop and other miscellany ~ forex trading strategies reviews

I confess I have always found it hard to trade options. This is despite having read some of the "bibles" of options trading, including Lawrence McMillans Options as a Strategic Investment and Euan Sinclairs Option Trading: Pricing and Volatility Strategies and Techniques. Partly that is because I prefer simple strategies, and options strategies are rarely simple. Partly that is because I was brought up on stocks, but stock options are depressingly illiquid. Most successful options traders that I know of prefer to trade index options instead, an area that I unfortunately have no intuition at all. Papers and books written by options professionals on this topic tend to be dense with equations, and worse, they seldom focus on the practical side of trading.

Thats why I am pleased to learn that Larry Connors, whose books I enjoy due to their simplicity of exposition, is presenting his first ever quantitative index options trading seminars. Interested traders can register for his free preview webinars on August 9 and 15 here, or a pre-recorded preview here.

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Speaking of seminars, readers in Asia may be interested to know that my own workshops on Backtesting and Statistical Arbitrage will be held in Hong Kong on October 2-5. The same workshops will be held in London on November 19-22.

(I enjoy giving those workshops very much, because many of the participants are institutional traders whose knowledge and points of view are very much at the cutting edge. Past participants include quants and traders from, in no particular order, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland, Bank of America, UBS, Societe Generale, Deutsche Bank, BNP Paribas, JP Morgan, Barclays, Citigroup, Blackrock, and various other Asian and European hedge funds, energy companies, banks, and asset managers.  I humbly submit that the in-class discussions are sometimes more interesting than my prepared materials.)

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I wrote some time ago about those FX brokers or ECNs where algo-traders can colocate their trading programs to lower latency for a reasonable price. There are also similar options for futures algo-traders. For e.g. Optimus Trading Group provides a market data service called Rithmic which is colocated at the major futures exchanges, and traders can colocate with Rithmic to reduce latency. Of course, traders can also directly colocate at the new CME data center in Aurora, IL. I suspect, though, that the cost of the latter option will be considerable.

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Finally, as a quant trader, I nevertheless read macroeconomic analyses occasionally, if only to figure out why some of my strategies suddenly start to fail. One website that provides interesting analysis of the energy markets is oilprice.com. In particularly, this interview with economic commentator Mike Shedlock is unusually detailed and thoughtful.
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Catalonia vrea separarea de Spania - forex trading platform for mac os x

Catalonia vrea separarea de Spania ~ forex trading platform for mac os x

O coali?ie separatist? care a promis independen?a regiunii spaniole Catalonia a ob?inut victoria în alegerile regionale de duminic?, relateaz? DPA în pagina electronic?. Cu 7,6 milioane de locuitori, Catalonia, cea mai bogat? regiune a Spaniei.
Dac? regiunea Catalonia va solicita independen?a fa?? de restul Spaniei, va fi obligat? în mod automat s? ias? din zona euro ?i probabil din Uniunea European?, a declarat luni guvernatorul b?ncii centrale spaniole, Luis Maria Linde, transmite Reuters.
Incertitudinile ?i tensiunile legate de rezultatul alegerilor regionale de duminic?, care ar putea duce la solicitarea în mod unilateral a independen?ei, afecteaz? b?ncile catalane ?i spaniole, a spus Linde, avertizând c? acestea ar pierde accesul la facilit??ile de la Banca Central? European?.
Marile b?nci spaniole au avertizat la rândul lor, vineri, c? separarea Cataloniei ar reprezenta un risc serios pentru stabilitatea financiar? a regiunii.
"Ie?irea din zona euro ar fi automat?, exit-ul din Uniunea european? ar fi implicit", a afirmat Luis Maria Linde în timpul unui eveniment la Madrid.
Aleg?torii sco?ieni au primit avertismente similare în leg?tur? cu posibila ie?ire a Sco?iei din UE, în cazul în care ar fi optat pentru independen?? în referendumul care a avut loc anul trecut.
Sco?ienii au optat pân? la urm? pentru r?mânerea în Marea Britanie, chiar dac? ini?ial num?rul separati?tilor era mai mare.
Votul a fost urm?rit cu mare interes în Spania. ?eful B?ncii Spaniei a mai spus c? nu este îngrijorat de rezultatul alegerilor generale a?teptate s? aib? loc la sfâr?itul acestui an, atâta timp cât noul Guvern va continua actualele politici de consolidare fiscal?.
M?surile Spaniei de reducere a unuia dintre cele mai mari deficite bugetare din zona euro au fost esen?iale pentru recâ?tigarea încrederii pie?elor, dup? ce Guvernul a fost nevoit s? solicite un program de salvare în 2012, pe fondul cre?terii puternice a costurilor de finan?are.
Partide de opozi?ie precum forma?iunea de stânga Podemo, similar? partidului elen de extrem? stânga Syriza, ?i Ciudadanos, favorabil mediului de afaceri, au câ?tigat popularitate ca efect al m?surilor de austeritate nepopulare.Economia Spaniei a înregistrat în trimestrul al doilea o cre?tere de 1% fa?? de trimestrul anterior, printre cele mai mari din UE.

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In asteptarea ADP Non Farm Employment Change - forex trading hours software

In asteptarea ADP Non Farm Employment Change ~ forex trading hours software

Ziua de tranzac?ionare de azi va sta sub semnul "ADP Non Farm" ce va fi publicat la ora 15.15. Pia?a a?teapt? ca datele s? ias? în cre?tere la 204k în luna august, dup? 185k cat am înregistrat în luna iulie. În mod evident dac? datele, a?a cum estim?m vor ie?i mai bune decat prognoza vom avea un semn foarte bun pentru dolarul american.
Pan? la ora 15 ?i 15 minute îns? vom avea la ora 11 ?i 30 de minute din Marea Britanie "Construction PMI" pe care pia?a a?teapt? s? ias? la 57,6 ,o mic? cre?tere fa?? de precedentul 57,1. Evident dac? datele vor ie?i mai mari decat prognoza vom înregistra un semn bun pentru lira sterlin?.
Calendar cu date importante în a?teptare capabile s? mute pia?a din aceste zone cruciale. Lira sterlin? versus dolarul american dup? cum putem vedea în graficul de mai jos se g?se?te pe zona de cerere cu linia proximal? 1.5295 care din perspectiva  valurilor Elliott ar putea s? fie zona de finalizare a unui val v, ce s-ar putea adanci îns? pan? pe 1.5220 chiar 1.5142. Va trebui deci s? urm?rim aceste zone de pre? unde am putea s? înregistr?m semnale de intrare a pre?ului în raliu.
Deocamdat? trendul este down pe GBP/USD ?i ne vom pastra op?iunea pentru short.

S? ne uit?m pu?in ?i pe perechea Eur/Usd unde ieri, a?a cum se poate vedea în graficul de mai jos am decis s? deschidem o pozi?ie
short. Dup? cum putem vedea în graficul de mai jos (grafic zilnic), pre?ul acum se g?se?te sub nivelul de rezisten?? dinamic? a
unghiului 3x1 care dac? ne uit?m în trecutul istoric a func?ionat atat ca nivel de suport cat ?i ca nivel de rezisten??.
Dac? datele de la ora 15 ?i 15 minute vor veni din SUA peste prognoza este foarte posibil s? asist?m la o trimitere a pre?ului
spre zona de suport dinamic a unghiului 4x1. Op?iunea noastr? pentru azi pe EUR/USD este short.

Inscrieri la Cursurile de Analiza Tehnica pe gannmasterforex@gmail.com

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Forex Technical Analysis of AUDUSD for June 29 (updated) - advanced forex trading strategies pdf

Forex Technical Analysis of AUDUSD for June 29 (updated) ~ advanced forex trading strategies pdf

Support                            -   S1 : 0.7611 | S2 : 0.7566 | S3 : 0.7502

Resistance                       -   R1 : 0.7721 | R2 : 0.7785 | R3 : 0.7831

Main Trend                     -   Bearish

Intraday Trend              -   Bearish

Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:

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Greatly Increase Your Profits With Effective Use Of Leverage - forex strategy trader forum

Greatly Increase Your Profits With Effective Use Of Leverage ~ forex strategy trader forum

Leverage is a powerful, but often misunderstood trading tool that offers great potential for profit but also paves the way for substantial losses. Unfortunately, many Forex traders often focus on the former while ignoring the risk of the latter, and end up losing big amounts of money on their trades. The main thing that many of these traders fail to understand is that leverage is money that is borrowed from their brokers and thus, if their trade is unsuccessful, they not only suffer a loss but they also have to pay back the amount of the leverage.

The main reason why forex traders use leverage is to greatly boost their profits when price movements of currencies are just incremental. For example, let’s say you opened a position for the USD/EUR currency pair when the exchange rate was 1:0.88947. If the exchange rate went up to 1:0.89449 and you were able to afford a regular lot of 100,000 units of the base currency you were trading in, then you would make a profit of USD$502. On the other hand, if you could only afford a micro-lot of 1,000 units or a mini-lot of 10,000 units, then your profit would be only $5.02 and $50.20 respectively. If you used leverage, then you could invest in a standard lot with only $10,000 in your trading account (at a rate of 10:1).

How much leverage are you using? You can compute your effective leverage using a simple formula: simply divide the total amount of open positions that you have with the amount of equity in your trading account. Thus, if you have three open positions totaling $70,000 and your trading account has $10,000 then your effective leverage is 7:1.

One of the most important lessons that forex traders need to learn is how to use leverage most effectively. The big problem is that forex brokers may offer big amounts of leverage of as much as 50:1 or more and this is very tempting to traders who think they can make a huge profit on just one successful trade. But, of course this is a mistake, and many traders who suffer from big losses tend to react in two ways, both of which are undesirable. One is that they simply give up trading forex, and the other is that they continue to use high amounts of leverage in the hope that they would be able to make up their losses.

In general you should be more conservative with your use of leverage. The recommended amount of leverage is 10:1 or less depending on the size of your trading account.  Keep in mind that the best traders make their money not from a single big trade but from a series of winning trades over time. In addition, the best traders actually focus on how much money they could potentially lose, not how much they could gain. 

So keep an eye on your effective leverage and if it is higher than the recommended amounts, you can address it either by increasing their trading account or reducing their open positions. 

Technical parts have been shared by Mr. Abdul, a Forex analyst from MTrading Egypt.

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Forex Technical Analysis of AUDUSD for October 19 (updated) - forex trading software tutorial

Forex Technical Analysis of AUDUSD for October 19 (updated) ~ forex trading software tutorial

Support                              -   S1 : 0.7230 | S2 : 0.7195 | S3 : 0.7142
Resistance                          -   R1 : 0.7318 | R2 : 0.7372 | R3 : 0.7400
Main Trend                       -   Bullish
Intraday Trend                 -   Bullish

In the 4H chart of forex technical analysis for the exchange rate AUDUSD, we observe that EMA(50) and EMA(200) have upward crossed between them and the price is above EMA(50). There are two Andrew's Pitchfork. The blue Andrew's Pitchfork is upward and prices move within the lower channel. The red Pitchfork is downward and price remain within the upper channel.

Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:

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Trading Tip 2 Advanced Method On Making More Than 40 50 pips Consistently with MA Combinations - 4 hour forex trading strategies

Trading Tip 2 Advanced Method On Making More Than 40 50 pips Consistently with MA Combinations ~ 4 hour forex trading strategies

I wish to appreciate the comments, and encouragements  from users of the first trading tip #1. I decided to speed up the publishing of the advanced method due to high demand from interested users. However we advise traders to completely understand the basics of this system before attempting the advanced method. This is the reason we gave time for practice, and tests before the release of the advanced method.

See the basic method here: http://fxtradecity.blogspot.com/2013/08/trading-tip-1-how-to-make-40-50-pips.html

--> In the first method we were able to prove that PRICE WOULD ALWAYS REACT AT A PARTICULAR AREA, and you can convert the reaction to your favour by setting a price trap within the reaction points.

A simple reaction can earn you at least 40 to 50 pips consistently each time it occurs (all things being equal).

The advanced method reveals some tricks, and tips to increase the profits, and helps to detect the reaction areas clearly. But before we commence i strongly advise you read the first method and practice it with a simulation software (recommended) or demo account until you get a full understanding of the strategy.

See: How To Convert Your Trading Strategy Into Forex Signal Services

KEY POINTS OF THE ADVANCED METHOD

1. The advanced method primarily increases the profit potential of the strategy.
2. Additional indicators (optional) would be introduced to aid easier detection of the reaction points, and show best places to set pending orders.

PRACTICE/TESTING MATERIALS

1. Forex Simulation Software. Forex Tester V2.0 Professional Edition was used to practice and test the
   
   strategy. You can download a demo version (with limited features) for this lesson before you decide to purchase the full edition.
2. Offline Chart (30 Mins). We do not necessarily need a demo or live account for this lesson. Right click your chart, and select properties from the menu. Select the common tab, and choose Offline Chart. Click ok.

ADVANCED METHOD OF MAKING MORE THAN 40-50 PIPS

Now lets imagine we have a strategy with 85% to 90% accuracy, and another strategy with 58% to 99% accuracy. It would be better to take more risk or increase our chances with the first strategy because out of every 10 trades we are sure of 85% minimum success compared to 58% minimum success despite its ability of achieving 99% accuracy in some runs. A trading system with 85% to 90% accuracy is worthy of taking risks but with intelligent techniques.

We said before that this strategy detects areas where price MUST REACT, and we take advantage of this reaction no matter how it reacts. This means if we get 50 reactions a day (all things being equal), and we take advantage of them using this tactics, then we should expect 100% positive returns.

The first basic strategy only showed us how to detect the areas, and how to take advantage of it by placing pending orders, but the advanced system would show us some indicators that would strengthen the detection of the reaction points, and how to multiply the profits.

 

**New - 50% Discount Plus Special Life Time Discount Offers

Advanced Method Step 1: - Eagles Eye Detection

We are going to apply some indicators to strengthen the detection of the areas where price would always react. The basic strategy depended only on the 200 SMA line.

Pic 1

Now we are going to apply some key indicators that would give us clear signals that price is actually playing around the trap area, which is within the 200SMA line. This will help us detect fake setups. 

Force Index Indicator

The force index indicator is grouped under the Oscillator Indicator. It connects the basic elements of market information such as price trend, its drops, and volumes of transactions. This indicator when combined with the Moving Average Indicator produces better results in opening and closing orders (Click to see more about Force Index Indicator).

Open your offline chart and apply the indicator with its default settings. Resize your chart where necessary.

Scroll backwards or forward on your chart history, and look for areas like the picture 1 above where price is crawling along the 200 SMA line. At those areas where price is crawling along the 200 SMA line you will notice that the Force Index Indicator is somewhat on a straight line at the 0.00 level. See illustration below

This means that the volume of transactions with regards to the bulls and bears power is indecisive. This also means that price would eventually breakout either to the bull or bear area. THAT IS THE REACTION. Price would never remain indecisive forever so the Force Index Indicator gives us more confidence to set our trap, and wait for an eventual breakout.

NB: The longer the force index stays at the 0.00 level the better the certainty of the reaction.

GBPJPY 30Mins - 30th August 2013; 19:30

RVI Indicator

The Relative Vigor Index Indicator helps to verify trend, and

trend breakout. It is already part of the basic strategy but we are going to see how it will helps us filter the detection.

Take a look at the chart in the same area, and see how the RVI reacts. Youll find out that when price crawls around the reaction areas, the RVI is either fluctuating within the 0.025 level and -0.025 level or on the 0.00 level. Anything outside these levels is not guaranteed. The RVI plays lesser role when compared to the Force Index but its still useful.

In addition to these indicators you can include the Alligator Indicator. The indicator as we know it squeezes around price when it begins to move in a sideways pattern or in a channel due to inactivity. 

Either of these indicators helps to further strengthen the signal that price is actually crawling around the reaction area waiting for an imminent breakout.

Advanced Method Step 2: Multiply The Profit

The primary goal of the advanced method is to multiply the profit potential of this strategy. 

The steps below involves some risks that may not be suitable to some account size, type, and broker. This is why we recommend using a simulation software to practice, and test this method in order to optimize it to your account size and money management rules.

Step 1:

When all conditions are met place 2 pending orders on both sides with different lot sizes. The orders should be placed simultaneously.

For example:

Order 1 - BUY STOP - Lot Size = 10.00

Order 2 - BUY STOP - Lot Size = 20.00

Order 3 - SELL STOP - Lot Size = 10.00

Order 4 - SELL STOP - Lot Size = 20.00

Take profit should be placed in this manner:

1. The higher lot size should have a closer Take Profit setting.

2. The lower lot size can have its TP set farther than the higher lot size or at the same position.

NB: A safer way is to place the higher TP much closer like 10 pips away from the order. But If the signal shows a major reversal or cross then you could increase it. The idea is to catch as fast as possible the immediate reaction with the higher lot size, and consolidate your position with the lower lot size. Take note of FIFO and Hedging rules for brokers situated in the US.

The inherent risk is that price can suddenly counter react against your position hence you should be careful trading the advanced method prior to news release. However our confidence lies on the basis that PRICE MUST REACT and 80% of this reaction showed positive returns if applied accurately.

Warning: Please practice, and perfect this method with a simulation software before applying it to your live account. You will not be able to carryout an extensive practice, and testing of this strategy with a demo account. Also be cautious of your leverage and margin size.

Step 2:

Place 1 (one) single large order rather than placing multiple

orders with different lot sizes. The question is what happens if the order doesnt get to my Take Profit or reverses negatively? Personally i use Trade Management Systems like Managed Take Profit EA to protect my orders from situations like this. The system takes partial take profits from my account, while automatically moving the Stop level till it gets to breakeven.

Weve come to the end of the advance method of making more than 40 - 50 pips consistently with MA Combinations. We hope youll find it useful to your success in Forex. 

We appreciate your feedback, and comments. 

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News Trading Guide Series 3 How To Protect Your Trades From News Spikes With Trailing Stop - forex trading strategies fibonacci

News Trading Guide Series 3 How To Protect Your Trades From News Spikes With Trailing Stop ~ forex trading strategies fibonacci

The impact or outcome of an economic news event can cause great anxiety, nervousness, panic & excitement. The result of this is the sharp spike, and whipsaws that either adds to the profit or drains the account in few seconds. This article reveals a solution on how to guard yourself from such occurrence, and profit from it.

FACT: A news outcome can cause a spike in a currency to move sharply from 60 to 100 pips in seconds. That is what some traders struggle to get in days and weeks. This makes news trading extremely beneficial, and at the same time very risky

The question is why does this happens? Simple - the global market always reacts instantly to heart breaking or happy cheering news about the status of a countrys core economic indicator, which is used for investment decisions. The two (2) major decisions are to invest or to pull out. For example, during the Swiss Franc Euro Capping episode in January 2015, the reaction world wide was extremely drastic up to the extent that major brokers, and banks were seriously hit.

FACT: A HotForex trader (Ayodele Odingboro) made a gain of 1,355pips while trading the CHF pair during the Swiss Franc Capping Episode despite the extreme spike.

The following are certain to happen after figures or decisions are released from an economic news event:

1. Market moves to the direction of the outcome of the news release (one way instant direction).
2. An indecision may occur leading to whipsaws (sharp up and down movement) hitting both SL instantly.
3. Nothing happens, and price continues on its natural path.

HOW TO GUARD YOUR TRADES FROM NEWS SPIKES

One of the best tools that can protect your account from news spikes, and at the same time profit from it whether the trade is going against you is Trailing Stop. I want to state this clearly - there is no other tool that can do a perfect work than the Trailing Stop Tool. Any news trading EA or system that does not integrate trailing stops is highly deficient.

What Is The Best Amount Of Trailing Stop To Use?

All news event comes with different impact. Some have a usual pattern like the UK MPC Rate Decision, GDP Reports, Unemployment Data, CPIs, & some speeches. They often manifest with sharp or steady spike. Therefore their trade settings differs.

1. For high impact news trading or events that causes lots of volatility in the market, use high or medium trailing stops. The idea is to capture the fast movement of the market while giving it some fair distance, and then later adjust it upwards until your TS is much closer until it either reaches your TP or price returns back hitting the TS. 
   
2. For events that comes with slow paced movement at the beginning like speeches, wait for price to advance gently until you are sure of its direction. Then use a medium size TS until the event is over.
3. All other events use medium TS. Do not use very tight trailing stops because immediately your order is hit, the TS quickly activates, and the tendency for price to retrace, and hit the TS and then reverse back is very high. So capture a bit of it; leaving a safe distance as it advances, and then as soon as it picks up momentum you can adjust it to get closer.
4. For events that has a reputation of creating whipsaws (fast up and down movement), which is capable of hitting both orders (BUY/SELL), then you can use tight trailing stops. The essence of this is to grab the best possible pips from both sides. There are cases where this happens in the speed of light. You only see the effect in your account journal. It is most times beyond our control.

Additional Tips

High Trailing Stops - 75 to 100 pips

Medium Trailing Stops - 50 to 65 pips

Tight Trailing Stops - 30 to 45 pips

The above pip value is for Five (5) digit pricing brokers. It is also applicable to Four (4) digit pricing brokers.

Furthermore there are no fixed value for Trailing Stops. You need to closely monitor and understand how a currency reacts and come up with the right Trailing Stop that can manage the trade during the impact.

Quantina News Trader EA Ultimate 2015 (Auto & Manual) trades the news with a customized trailing stop feature which can be modified to users taste.

Image "Traveling at Speed of Light courtesy of digidreamgrafix" / FreeDigitalPhotos.net

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Forex Trading Recap 15 October 61 Pips - forex cfd trading strategies

Forex Trading Recap 15 October 61 Pips ~ forex cfd trading strategies

Today the recap is going to be a little bit different.  I decided instead of just showing you my Elite Range Bar Trading today that I would post a chart to show you ALL my trades on EUR/USD.  You can see that even though Elite Range Bars comprises the majority of my forex trading, there are some other trades I take in there too.

Some are based on old systems I used, some are simply trades taken off "gut feel" accumulated through years of experience.  As a trader you need to know how to go with the flow of the market and often its this sort of conditioning built over time that will present you with great opportunities, assuming you dont ignore your instincts.

That said, I still like to be as rule-based as possible and take as many highly repeatable setups as I can every day.  This is where Elite Range Bars come in.  Every day I have the same sort of Type 1s, 2s and 3s that present themselves as high quality trading opportunities.  This allows me to just hit the trigger without hesitation and keep as much mental capital preserved as possible.  What I mean by that is simply that trading can be hard work and if youre spending all your time extremely focused on every pip or tick you are going to wear down quickly.  To trade well you need to be able to relieve some of that pressure through the use of rules and methods that you can use day after day with confidence.  

Thats the secret (that isnt really a secret) to high performance trading - its all about being disciplined and following your plan every day.

You can check out the video recap below:

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Forex Technical Analysis of GBPUSD for July 13 (updated) - forex trading strategies in hindi

Forex Technical Analysis of GBPUSD for July 13 (updated) ~ forex trading strategies in hindi

Support                            -   S1 : 1.5396 | S2 : 1.5286 | S3 : 1.5208
Resistance                       -   R1 : 1.5583 | R2 : 1.5660 | R3 : 1.5770
Main Trend                     -   Bearish
Intraday Trend              -   Bullish

Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:

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How I Trade The News Part 3 Final Series - forex trading strategy quantum globe

How I Trade The News Part 3 Final Series ~ forex trading strategy quantum globe

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

In the previous section, we looked at the materials i use in trading the news and setting up my chart. I also explained some essential steps that helps me get set for the news, and some important market signs to look out prior to the news release.

In this conclusive part Ill clearly explain the trade actions (best pairs to trade), order placement/planning, chart setup, managing the trades and some other tips i use to trade the news. Before we start lets see some pre and after news event in the charts below.

INFO: "To straddle or not to straddle? Which is better? See; Straddling Vs Auto Click Trading System".

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Setting Up The Chart

In order to manage my system resources I do not setup every chart with the template above. Some of the items in the template require consistent data download and updates, which is capable of impacting the platforms efficiency during high impact news release. The session time indicator and pivot indicator are proprietary indicators designed by Forex21 (ProFx3.0.5). They are not included in the download link. (Download full chart setup materials: Zip File ).

I recommend 30 Minutes chart. Be very careful trading the news with lower timeframes.

First Thing First - What Pair Should I Trade?

A deep understanding of Forex currencies with regards to their correlation, similarities, dominance, and political/economic relevance with other currencies would help you to an extent to know which pairs are best to trade for a particular news release. Also it is common for some currencies to be correlated with commodities & precious metals like Gold and Oil. The simple principle in news trading is that a good or bad economic outlook on a currency would positively or negatively reflect on its pair. For example if the UK CPI meets investors expectation for a particular period then some of the weaker pairs with the British Pound will experience a sudden negative effect because investors (traders) will sell them off and buy the GBP. So traders most often lookout for the stronger and weaker currency pairs to trade, while avoiding correlating pairs.

TIP: There is a utility designed by Henry Liu (www.currencynewstrading.com), which displays the real time economic outlook of currencies. The utility helps to decide which pair should be traded against each other. Download Henry Lius Currency Strength Meter.

Basic rule of selecting a currency pair:

Auto/Manual News Trading EA

1. In expectation of a positive news outcome, BUY the stronger currency, and SELL the weaker one.

2. In expectation of a negative news outcome, SELL the dominant stronger currency, and BUY a relative stronger one. In some cases the weaker currencies could be bought but the position should not be held for too long.

CAUTION: In some cases weve seen a good

economic outlook on some countrys economic data but with an opposite reaction after the news release. This implies that a positive economic outlook of a currency does not mean you have to buy it and sell the weaker currency. It is necessary to consider other fundamental macro economic factors coupled with the recent economic performance history of the currency.

TOOL: Comprehensive list of all the news trading items with the recommended pairs to trade. Recommended Currency Pairs For News Trading

TRADE ACTIONS

Before you begin ensure youve understood pre-news market signs, and market behaviour prior to news release else refer to Part 2. Also you must have selected the right pairs to trade the news.

What Pairs Should I Trade?:

It is extremely important you pick the right pairs for every news trading. The rule of thumb is to pair the stronger/weaker currency pairs. In some cases you can trade certain commodities and precious metals also. For further guidance refer to: Recommended Pairs For News Trading.

 

Snapshot of Henry Lius Currency Strength Meter

Placing Orders

Generally wait for at least 10 - 15 minutes before placing pending orders. This gives you a clearer picture of the best place to set pending orders. There are various methods i use in placing pending orders depending on the type of news and market initial reaction. Here are the two (2) main methods:

1. If The Market Is Static (i.e no quick up and down irrational movements):

Prior to most high impact news release, the market often times becomes static or move in a very narrow channel. This is one of the best market signs for news trading. In this case I set pending orders manually or with the guide of the Simple_SR Indicator. (For Take Profit, Stop Loss & Trailing Stop see Trade Management).

Illustration of narrow movement of price prior to the news release. Click to enlarge

2. If The Market Is Erratic (i.e. quick up and down small movements few minutes to the news release):

In this case the market reacts to traders psychology/sentiments towards the expectation of the news release. This is witnessed few minutes to the news release with a slow but steady movement of price to a direction and then it halts, goes back and continues again but not cutting across a certain price level or forming a resistance at a certain level. This often occurs when the analysis of the economic news components shows a high probability of an actual outcome. In other words there is a sure tendency by traders that the news outcome would certainly come out as expected. In this scenario it is quite difficult to place pending orders due to the uncertainty of the release, which could turn out with a disappointing result. In most cases if you are not patient and careful, your pending orders would be triggered before the actual time of the news release and this can be very disastrous if the expectation comes out against the triggered order.

Follow the steps below to set pending orders for this kind of scenario:

Step 1: Wait for at least 7 - 10 minutes before the news release to study the pulse of the market. This will help you to determine the immediate highest high and lower lows of the first five to ten candles or more.

Step 2: Place orders a little bit higher or lower than where price formed a resistance or support.

Step 3: Cautiously keep an eye on the fluctuation of the market in order to modify the position so as to avoid your orders getting triggered before the news release.

GBPUSD - Order Placement Prior to BOE Gov Carneys Speech - 9th Sept, 2014; 11:45am GMT +1. Click to Enlarge

GBPJPY - Order Placement Prior to BOE Gov Carneys Speech - 9th Sept, 2014; 11:45am GMT +1. Click to Enlarge

GBPCAD - Order Placement Prior to BOE Gov Carneys Speech - 9th Sept, 2014; 11:45am GMT +1. Click to Enlarge

How Much Order Should I Place?

This depends on your money management rules, broker spreads, and account size. You must understand that most brokers increase their spreads during news release. Not all brokers are news friendly so exercise great caution when selecting a broker if you are news trader. Personally in some very few cases i trade large lot sizes because of the certainty of the news release and market signs. However I do not advise you do the same. Ensure you do not trade more than 10% of your account size or free margin. It could be very dangerous.

TIP: To see the effects of lot sizes on news trading, carry out tests with Forex Simulation Tools.

Trade Management (Stop Loss, Take Profit, Reversals, Spikes, e.t.c.)

Ideally stop loss for Sell Stop pending orders should be placed beneath the recent support line or depending on the type of news they can be placed at a safer distance to avoid price fluctuations and and instant reversals that will erroneously hit the stop loss. Often times I have experienced instant price reversals within seconds or few minutes after the news release. This causes the stop loss to some pips above the resistance line as well.

Personally I do not have any fixed rule for Take Profit because I always use Trailing Stops to manage the trades. I recommend using the minimal trailing stop of 30 points & 50 points. 

INFO: An instant spike in a very high impact news release can move the market as far as 30 - 40 pips in few seconds, and then over 100 pips hours later. If you are trading the spike then stick to 20 - 30 pips maximum.

TIP: When a sharp spike occurs there are 80% chances of an instant reversal. In some cases the best time to enter a news trade is during the price reversal (i.e enter in the opposite direction of the reversal).

Trading Press Conference Speeches/Statements

Trading this type of news is quite difficult but very lucrative if you know how to interpret the statements of the speaker. Financial/Economic speeches or reports such as ECB President Speech/Press Conference, US FOMC Statements, BOJ Press Conference, BOE Governors Speech, e.t.c usually come with very high impact due to the personalities involved, and the effects of their policy statements.

TIP: News speeches are interpreted into Hawkish or Dovish statements. Hawkish statements are aggressive. For example when the authority of a Federal Reserve Bank is bent on favouring an increase in interest rate or showing clear signs of imminent implementation of stimulus then that is a Hawkish Statement. The opposite of this is Dovish.

Since press conferences and speeches is more of an audible conversation you will need the following news services media to conveniently trade them:

1. News Wire Services: - Reuters, Associated Press, Agence France Presse, BNO News, Deutsche Presse-Agentur, All Headline News, United Press International, e.t.c
2. Satellite Cable Network Services (Business News): - CNBC, Bloomberg Television  Fox Business Network, MSNBC, e.t.c.
3. Radio: - RANSquawk.com, FXMMradio, e.t.c.

Personally i most often do not hook up with them except for CNBC Squawk on Television. I use either of the news trading methods to trade news speeches.

Documentation

It is a good practice to document your trades by leaving comments. This helps to analyze your performance on your trade journals. 

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Other Tips & Guidelines

1. Cancel or delete pending orders immediately if a conflicting release comes out. 
2. Do not setup your trades 20 minutes or more before the news release.
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