Point and Figure Charts Update as at November 17 (updated) - forex trade alert season 15

Point and Figure Charts Update as at November 17 (updated) ~ forex trade alert season 15

Point and Figure Charts can give us some idea as to where the markets are headed. This method of charting has been used for many years and has been proven to have excellent results over the longer term.

I find it handy to have a look at various P&F charts from time to time to keep me current as to where the directions of currencies may be headed.

Most of the time on the P&F charts from Stockcharts.com is a target number where the price is expected to travel.

Here are some charts from some of the major currencies as at today.

Here is an excellent video primer on Point and Figure Charting

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5 And 13 Exponential Moving Average Profitable Forex Strategy - forex trading tips and tricks

5 And 13 Exponential Moving Average Profitable Forex Strategy ~ forex trading tips and tricks

Strategy

Take from Fibonacci sequence numbers 5 and 13 as the parameters for moving averages. When you wish to determine the price movement, the time for opening and closing the positions, use Exponential
Moving Average (EMA) 5 and 13 indicators and follow these rules:
Open the position when EMA5 has crossed EMA13.

Buy when EMA5 has crossed EMA13 from below.
Sell when EMA5 crosses EMA13 from above. Wait until the time interval (selected by you) closes. If by this time EMA5 and EMA13 have crossed each other, enter the market at the price of opening the following time interval.

When opening the position – at the same time – you should place stop loss order below/above EMA13.
Close the position in case:
a) the closing price showed crossing or equality of EMA5 and EMA13;
b) the prices reached the level of your stop order.
These rules can be applied to all time interval. However the best results are achieved with one-hour
charts.
The following picture illustrates the rules.

To improve the results of your Forex trades, use these crucial rules: Place your stop orders at 50 pips level from EMA13, binding this level to EMA13 movements; of course, if the market trend goes as it was expected.
This tactics will give you the possibility to avoid non-predictable market movements.

Do not open the position if there is a gap of more than 100 pips between the opening price and the level of stop loss order. This rule will protect you from big market movements which take place during a very short time interval (see below image)

Do not open the position when there is only 1 pip between EMA5 and EMA13. Wait until the time interval is closed with more sufficient difference between EMA5 and EMA13 (see below image)

You should set up for yourself a certain maximum sum which you are ready to lose on every trade (risk percentage). It should not be more than 10% of the total sum on your account.

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US Dollar Index Tracks Higher and Higher - forex trading alert expert robot

US Dollar Index Tracks Higher and Higher ~ forex trading alert expert robot

Where will it stop?


The US Dollar Index has been on a tear for many weeks and shows no sign of easing off the pace.  Some blame the Quantitative Easing and some blame the international central banks for this movement, no one really knows what to attribute it to.

The US Dollar Index reflects the interchange between the US Dollar and other currencies, a basket made up of Euro, Japanese Yen, Pound Sterling, Canadian Dollar, Swedish Krona, Swiss Franc.

The index is traded as a futures contract.

I have here a Point & Figure chart which shows that the future price target of $106.00, quite a distance to travel from todays level of $88.36.

Today it is at a level of resistance as you can see on the chart.

Recent developments in Japan and Europe have devalued their currencies and pushed the US Dollar higher.

Today China reduced their interest rates to boost a sluggish economy adding more to the upward move of the US Dollar.

The US Dollar Index will certainly be something to watch regarding any dollar related trading strategy.

I have some commentary below which you may find relevant  and interesting.


Speculators US dollar net long highest since 2008 -CFTC, Reuters - Reuters

Fri, 21 Nov 2014 20:56:57 GMT
Speculators US dollar net long highest since 2008 -CFTC, ReutersReutersNov 21 (Reuters) - Speculators increased their net long U.S. dollar position in the latest week to its largest in six years, data from the Commodity Futures Trading Commission sh ...

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The Long U.S. Dollar Trade Is Very Crowded - Wall Street Daily

Fri, 21 Nov 2014 10:06:28 GMT
After all, everyone seems to be long the U.S. dollar, which has been trouncing both the yen and euro over the past few months. But in reality, forex trading is one of the mos ...

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How to Invest to Play a Stronger U.S. Dollar - Barrons

Fri, 21 Nov 2014 19:01:24 GMT
The GIC believes the U.S. dollar will probably strengthen further in 2015. While we are already overweight dollar assets, the tactical changes made today further increase this overweight pos ...

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US Dollar Strength Shouldnt Undermine the Recovery - Institutional Investor

Fri, 21 Nov 2014 06:07:48 GMT
In 2010 policymakers roundly criticized Brazilian Finance Minister Guido Mantega for engaging in extreme rhetoric when he brought up the possibility of the ...


Read more ...


The next week will probably provide more volatility and great trade entries.

Good Trading.!!


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Some Important Point and Figure Charts for your Trading Strategy as at January 13 (updated) - algorithms for forex trading

Some Important Point and Figure Charts for your Trading Strategy as at January 13 (updated) ~ algorithms for forex trading

These charts indicate that there will be some great moves as time passes, hopefully some nice trends in the months to come

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Divergence Trading Strategy With Renko Bars and The Awesome Oscillator - best forex trading courses uk

Divergence Trading Strategy With Renko Bars and The Awesome Oscillator ~ best forex trading courses uk

This Renko Divergence Trading Strategy is most simple!

We are going to use a Renko Chart and the Awesome Oscillator to demonstrate this Trading Strategy as shown in this chart.

As you can see this chart has only the Awesome Oscillator and Renko bars, a simple setup.

About the Awesome Oscillator.

This indicator is designed to reflect market momentum, that is , the speed of the price moving higher or lower. How it measures momentum is by subtracting the difference between the midpoints of the 34 simple moving average and the 5 moving average and plotting the difference as a histogram. The bars in the histogram are colored, red and green. The reason for the coloring is to illustrate increasing and decreasing momentum
.
There is a lot of information to be gleaned from the behavior of this oscillator.
It can confirm the current trend. As it crosses the zero line it indicates the trend changing direction.
It can point out a divergence between the oscillator histogram and the price.
It is also used by some traders in their Elliot Wave Analysis.
For purposes of our discussion we will limit to how to use this indicator to detect divergences.
And we are going to discuss Regular Divergences, bullish and bearish.

In order to detect divergences we have to observe the price bars and the oscillator. We have to pay particular attention to Higher Highs and Lower Lows.
Each time the price makes a higher high or a lower low, we have to see what happened with the Oscillator – did it make a higher high or a lower low.

Bearish Regular Divergence

Let us assume that price has made a higher high and that the oscillator has made a lower high. That is a tip that momentum has decreased and a warning that price may start to decline.
We draw a line on each connecting the tops.
Indeed the price may be starting to decline, we will wait for entry until the oscillator histogram crosses the zero line before entering a trade.
Our trade may be short lived for the reason that the trend on higher time frames may be bullish and this divergence is merely a retrace. We can re-enter, if such is the case, as the histogram crosses the zero line upwards.

In the picture you can see the lines drawn on the price bars and on the histogram. You can also see that this entry would have been unproductive as price was wandering without direction.

Bullish Regular Divergence

This kind of divergence is similar to the bullish except we will be observing the lows of the oscillator and the price bars.
We will draw lines connecting the lows and watch for a discrepancy.

You can see in this picture  the lines connecting the bottoms and the divergence between the price lows and the histogram lows.
Of interest is the change in momentum shown by the decreasing lengths of the bars in the histogram, We can see that the momentum in the downtrend is decreasing as price slows its bearish thrust.

Definitely use a stop loss with this type of trade,we never can be sure as to what the market is going to present as soon as a trade is entered, we have to protect our account.
Some traders endure many small losses as their stops are often hit and then they score well on a huge move.

That gives the basics of the Renko Awesome Oscillator Trading Strategy.

These setups occur on every instrument almost every day, we just have to have a few charts open and observe the higher highs and lower lows to earn an excellent income.

Enjoy!

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What do support and resistance levels mean in Forex Market - forex trading courses scotland

What do support and resistance levels mean in Forex Market ~ forex trading courses scotland

Support level is a level lower than the current rate, which could possibly take an upward turn. Resistance level is a level above the current rate, which could possibly take a downward turn. 

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Very easy to follow and very profitable !! - forex trading tax in india

Very easy to follow and very profitable !! ~ forex trading tax in india

Do you know? At least 90% of new Forex traders lose all their money within Their first 3 months of trading, Moreover most of beginner traders are bankrupt !!   Why does it happen ?   Because Most of Beginner Traders are just using their "INTUITION" without seeing or learning trend forex ...   This means that they have no idea what the heck they are doing! They just jump into the forex market blindly with only hopes and dreams And rely on the flip of a coin to determine their success.   90% of Forex traders are uneducated and lack the basic knowledge of how the Forex really works. They rely solely On luck without LEARNING ANY OF THE BASICS AT ALL! And reliable sources suggest that up to 10% of these Under- informed Forex traders end up losing their entire trading account! . . So why do they FAIL..They only use instinct without learn trend market price and initially over confident and consider Their quick 5 minute market analysis to be 100% correct. More often they are 100% WRONG!   Avoid using intuition in forex trading without good accuracy !! ..

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Signal 1 25pm - forex trading tax implications

Signal 1 25pm ~ forex trading tax implications

GBPJPY Buystop 158.87, SL=157.94, TP1=158.37, TP2=160.48   GBPUSD Buystop 1.6525, SL=1.6474 TP=1.6575

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Kobas Forex Trading Strategy - online forex trading advice

Kobas Forex Trading Strategy ~ online forex trading advice

KOBAS STRATEGY

Timeframe: Any (but I recommend from 15 minutes chart and above)
Indicators:  Moving averages (Exponential)

i. Period 5 (Yellow)
ii. Period 10 (Magenta)
iii. Period 15 (Red)
iv. Period 65 (White)
MACD (Default settings)
You can also change the colors to Red and Dark Turquoise as shown
below.

Entry Signals

The signals are classified into 5 sentiments for the indicators
i. Bullish
ii. Bearish
iii. Consolidation
iv. Bullish Consolidation
v. Bearish Consolidation

Which means that the moving averages and the MACD can give signals based on any of
the 5 sentiments.

Although, we have four Exponential moving average indicators but, I will classify them
as two different indicators i.e, 5, 10 and 15 as one and then 65 as another indicator for our
signals.

We now we have:
Indicator 1 - EMA (5, 10, 15) 
Indicator 2 - EMA (65)
Indicator 3 - MACD with Red and Dark Turquoise colors.

SIGNALS FOR EACH INDICATOR

Indicator 1: Whenever there is a crossover of the three EMA (5, 10, 15), then wait until
they split distinctively according to the periods or colors as shown on the chart, then a BUY or SELL is confirmed depending on the direction at that point in time (Bullish or Bearish).If they are all together, that means consolidation.

Indicator 2: Check the angle of the 65 EMA
Upward angle: Bullish (BUY)
Downward angle: Bearish (SELL)
Flat: Consolidation (NO TRADE)

Indicator 3:  MACD
   Red line is the MACD signal line
Dark Turquoise bars are the MACD cloud
Zero level (0.00) separates BUY/SELL regions

If the Red line is above the zero level (0.00), that means BUY (Bullish) but if it is
below the zero line it means SELL (Bearish).

If the Dark Turquoise bars are above/below the zero line, that means BUY
(Bullish)/SELL (Bearish).

If the MACD signal line (Red line) is inside the MACD cloud (Dark Turquoise),
above/below the zero (0.00) line, that means BUY(Bullish)/SELL(Bearish).

If the MACD signal line (Red line) comes out from the MACD cloud (Dark Turquoise) above/below the zero (0.00) line, that means Bullish consolidation/Bearish consolidation.

Now, let me bring everything together. You must make sure that you consider these five
sentiments before taking a trade:

i. Check the three EMA (5, 10, 15).
ii. Is the market trading above or below the white line (65 EMA)?
iii. Check the angle of the white line (65 EMA).
iv. Check if the MACD signal line (Red line) is above/below the zero(0) level
v. Check if the MACD signal line (Red line) inside the MACD cloud.

Let’s apply all the rules on the market and see:

As you can see on the chart above, the 3 EMA (5, 10, 15) separated (SELL) and the
candles are below the white line (SELL). The white line (65 EMA) was angling down
 (SELL) and at the same time the MACD signal line (Red line) was below the zero level
(0.00) (SELL) and entering the MACD cloud (Dark Turquoise) (SELL).

For every signal, make sure the five sentiments shows BUY/SELL before you take a
trade.

Exit Signals

You can pullout from a trade when the MACD signal line (Red line) comes out of the
MACD cloud for short time traders or when the signal line crosses above/below the zero
level (0.00) in an opposite direction of our trade for position traders. Look at the chart
below:

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Very Simple And Profitable Forex Trading System - forex trading advice tips

Very Simple And Profitable Forex Trading System ~ forex trading advice tips

Description:

Use 1H chart on GBP/JPY with Stoch(5,3,3) and RSI(7). The idea is this ...use Stoch and RSI just to define where it is possible to have a breakout. Then use most profitable tool ever – simple candlesticks. If you have strong down trend and Stoch and RSI are oversold, and we have up trend candle (black candle) close at the middle of the last (in this case black one) enter a trade. You are getting 3 signals to confirm your entry – isn’t it great!?

Some people reports: With this system make more than 1500 pip only from GBP/JPY for week. (Use it just for GBP/JPY)

1 – RSI oversold    2 - Stoch oversold    3 - candle (black candle) close at the middle of the last one in opposite direction.

Buy/Sell rules Sell when RSI and Stoch are bought or they are close to overbought (75) line, and we have down candle which has closed at least at the middle of the last up candle.

Buy when we have oversold RSI and Stoch and we have up candle which has closed at the middle of the last down one.

Exit rules if we are in a sell trade and ... we have oversold RSI and Stoch and we see this up candle which has closed at 50% of the last down one - exit and enter another trade.

Stop loss: Place a stop loss 3 pips below your signaling candlestick – in this case figure #3 – see screenshot above.

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What is the Difference between Forex and Stocks - forex trading classes in sri lanka

What is the Difference between Forex and Stocks ~ forex trading classes in sri lanka

Historically the securities markets have been looked at, at least by the majority of the public, as an investment vehicle. In the last ten years securities have taken on a more speculative nature. This was perhaps due to the downfall of the overall stock market as many security issues experienced extreme volatility because of the "irrational exuberance" displayed in the marketplace. The implied return associated with an "investment" was no longer true. (If indeed it ever was.) Many traders engaged in the "day trader" rush of the late 90s only to realize that from a leverage standpoint it took quite a bit of capital to day trade, and the return while potentially higher than long term investing was not exponential to say the least. 

After the onset of the "day trader" rush, many traders moved into the Futures stock index markets where they found they could leverage their capital greater and not have their capital tied up when it could be earning interest or making money somewhere else. Like the futures markets spot currency trading is an excellent vehicle for the pattern day trader that desires to leverage his current capital to trade. Spot currency trading provides more options and greater volatility while at the same time stronger trends than currently available in stock futures indexes. Former securities day traders have an excellent home in spot foreign exchange.

A good example is the Globex market. While the Globex market is only closed for a 15 minute period each day, the liquidity available after the open outcry market is closed in Chicago is normally very low. Spreads are wider and the ability to place larger orders is non-existent. Because of this most volume traders are forced into trading the EFP market overnight. The EFP market is the spot market priced in futures pricing. EFPs however come with additional fees, and are not available from an electronic interface. Electronic access, speed, no fees, and unmatched liquidity 24 hours a day makes Spot FX the choice for the currency trader.

No Middlemen
Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument trader will cost the them money. Either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market maker responsible for the pricing on a particular currency pair. Quicker access, cheaper costs.

Buy/Sell programs do not control the market
How many times have you heard that "fund A" was selling "X" or buying "Z"; Rumor had it that the funds were taking profits because of the end of the financial year or because today is "triple witching day", all as an explanation of why this stock is up or the market in general is down or positive on the session. No matter what your broker says the stock market is very susceptible to large fund buying and selling, and it is not uncommon for a fund to "run" a particular issue for a few days. In spot currency trading the liquidity of the market makes the likelihood any one fund or bank to control a particular currency very slim. Banks, Hedge funds, FCMs, governments, retail currency conversion houses, and large net worth individuals are just some of the participates in the spot currency markets the liquidity is unprecedented.

At the mercy of Analysts on TV

Have you watched TV lately? Heard about a certain Telecomm stock and an analyst of a prestigous brokerage firm accused of keeping their recommendations "BUY" when the stock was rapidly declining? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. IPOs are big business for both the companies going public and the brokerage houses. Relationships are mutually beneficial and analysts work for the brokerage houses which need the companies as clients. That catch-22 will never disappear. Foreign exchange, as the prime market, generates billions in revenue for the worlds banks is a necessity of the global markets. Analysts in foreign exchange dont drive the deal flow, they analyze.

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3 Ways To Identify A True Trend In Forex Trading - best forex trader advice

3 Ways To Identify A True Trend In Forex Trading ~ best forex trader advice

In the foreign exchange markets, like in many other markets,there are two basic types of trading environments – a trend and a range. A trend can be defied as a general move in one direction while a range is an oscillation in price between two broad levels. In stocks, we typically try to “buy low” (at a value) and“sell high”; this is actually the foundation of range trading.

We Attempt To Outline Three Simple Methods To Identify A Trend:

» Bollinger Bands
» Moving averages
» ADX

Bollinger Bands

Bollinger Bands basically plot standard deviations above and below a moving average. They were developed in the early 1980sby John Bollinger and are typically used to determine volatility. At GFT, however, we like to use Bollinger Bands to help us gauge atrend.

In the chart below, we plotted a set of standard Bollinger Bands using the settings 20,2 (which mean two standard deviations awayfrom the 20-day moving average) and then added a set of 20,1 Bollinger Bands (one standard deviation away from the 20-daymoving average). This helps us to create our buy zone and sell zone.

Typically, when an uptrend in a currency pair is very strong, it will remain in the buy zone, the zone between the upper Bollinger Band of two standard deviations and the upper Bollinger Band of one standard deviation, for some time. When the downtrend is very strong, the currency pair will remain within in the sell zone, the zone between the lower Bollinger Band of two standard deviations and the lower Bollinger Band of one standard deviation. If the currency pair closes below the buy zone or above the sell zone,we say that it has entered the range trading zone.

Bollinger Bands are great tools to use to help determine when a currency pair enters or exits a trend. For those traders who like topick tops and bottoms, a good way to do so is to wait for the currency pair to exit the buy or sell zones.

Moving Averages

Moving averages is another great tool for identifying a trend in the currency market. By defiition, moving averages track the average price of a currency pair over a specifid period of time. A 20-day Simple Moving Average (SMA), for example, tracks the average price of a currency pair over the past 20 days.

One way to identify trends with moving averages is to look for a perfect order. This occurs when all of the shorter term moving averages are above the longer term moving averages in an uptrend and the longer term moving averages are above the shorter term moving averages in a downtrend. We usually see a new and powerful trend emerge when these perfect orders form after a period of range trading.

Here is an example in the GBP/USD pair where moving averages are lined up in a perfect order. As you can see in the chart below, the 10-day SMA is below the 20-day SMA, which is below the 50-day SMA and those are below the 100-day and 200-day SMAs.We have also highlighted the day that the perfect order formed (August 11, 2008). At that time, the GBP/USD was trading at 1.9100. Forty days later when the perfect order breaks ranks on September 22, 2008, the GBP/USD was trading at 1.8572 or 500
pips lower.

Perfect orders do not form often, but when they do, they can provide a powerful sign that a new trend has emerged.

ADX (Average Directional Index)

The ADX is short for the Average Directional Index, which is a classic measure of a trend’s strength. Unlike Bollinger Bands and moving averages which can help defie the direction of the trend, the ADX simply measures whether the trend is strong or weak.The index is displayed as an oscillator in a separate box below the price charts on a scale of 0 to 100.
As a rule of thumb, if the ADX is greater than 30, a trend is strong; if ADX is below 20, a trend is weak. In a strong trend, we want to see the ADX sloping upwards. In the following EUR/USD chart, we inserted vertical lines to represent the times when ADX crosses the 30 mark.
Back in March 2008, for example, the ADX crossed above the 30 mark when the currency pair was trading at 1.52. Over the next month, the currency pair gained strength at a relatively rapid pace and ended up hitting a high above 1.60. When the ADX crossed back below the 30 mark, the currency pair ended up range trading for the next few months before breaking lower in the middle of July.

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Do You Like to Make Some Extra Money Before Christmas - forex trading courses in pune

Do You Like to Make Some Extra Money Before Christmas ~ forex trading courses in pune

6 Easy Ways to Make Extra Money Before Christmas

During the holiday shopping season, many of us find ourselves spending more than we expected. As a result, it’s common to look for ways to offset some of that spending by earning a little extra money at this time of year.

While you could get a seasonal job to work on top of your day job, or you could jump through hoops associated with getting a rebate, there are some easier ways to make extra money this holiday season.

Here are 6 easy ways to make extra money before Christmas:

1. Donate Plasma
My brother-in-law goes down to the blood bank and donates plasma twice a week. Depending on where you live, you can receive between $25 and $50 for each donation. You can go twice in a seven day period, as long as there are two days between each donation. This doesn’t take very long, and it can be a quick way to make a few dollars.

If you start now, you can get in about six donations between now and Christmas. That would equate to a total between $150 and $300, depending on what the local rate is. Not to mention the fact that you’ll be giving your karma a boost with the good deed!

2. Sell Some of Your Old Stuff
Go through your attic or basement and look for stuff you aren’t using anymore. We found some old Hallmark holiday ornaments we no longer care for, as well as a number of other items that we never use. You can sell your things on eBay, or you can sell it through the classifieds (local online classifieds work best). Or, if the weather isn’t too bad, you could even hold a yard sale. What you end up with depends on what you sell, but a neighbor recently brought in $350 by selling her unwanted items.

You can also consider selling some of your old jewelry. Just be careful of where you go to sell gold or silver, as you want the best possible price.

3. Fiverr
If you have a few minutes, you can perform relatively simple work for $5 a pop on the website Fiverr. The tasks aren’t too difficult, and it can be a good way to get a little extra cash. It’s not a ton, but it can start to add up if you get enough jobs. Just make sure that you don’t start spending too much of your precious time on these little tasks.

4. Yahoo! Voices
Do you write? While you can make money as a professional blogger, or off your own web site, it takes time to establish yourself and actually start making money. If you’re looking for some quick cash, consider Yahoo! Voices.

After signing up, you can submit your writing. If you submit for immediate payment, you can get between $5 and $25 (or more!) for your posts, depending on the timeliness and quality of your work. Plus, you receive extra payments based on pageviews — so, you could keep getting paid even after you stop writing articles.

5. Mystery Shopping
If you are careful, you can combine your love of shopping with your desire to earn money. My mom and my sister have both had success as mystery shoppers. If you make sure you’re working with a reputable company, and there is work in your area, this can be a good way to earn a couple hundred bucks before Christmas.

6. Forex Trading ;)

Do you have any other easy ways of earning extra money before Christmas?

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