IDENTIFYING THE SHORT ENTRY SIGNALS MORE EFFECTIVELY WITH MOVING AVERAGE AND MACD TRAIN TRADING SYSTEM - forex automated trading software reviews

IDENTIFYING THE SHORT ENTRY SIGNALS MORE EFFECTIVELY WITH MOVING AVERAGE AND MACD TRAIN TRADING SYSTEM ~ forex automated trading software reviews

yourFXguide-Moving Average and MACD Train trading system is one of the most effective trading systems I have ever found. This post explains the technique to identify the short entry signals with Moving Average and MACD Train trading system more effectively.

Before reading this post, you should be introduced with the basic to Moving Average and MACD Train trading system and the way to identify the entry signals with the system. Click here to read the first post I wrote on Moving Average and MACD Train trading system.

If you already read my first post  about Moving Average and MACD Train trading system, you came to know that a short entry signal with this trading system is found when the price moves below the 50 SMA and 100 SMA, and MACD histograms turn into negative territory.

Okay !!! Now let see how we can identify the short entry signals accurately with Moving Average and MACD Train trading system. Some times we see that price moves below the 50 SMA and 100 SMA, and MACD histograms turn into negative territory, but price does not stay below the 50 SMA and 100 SMA for a long period of time. 

This type of situations are most commonly found when the MACD turn into negative territory first time after staying in positive territory for a long period of time. In such cases, the price moves below one of the SMA indicators the MACD histograms turn into negative territory and make a small loop like formation in negative territory and again turn back to the positive territory. 

Traders have to put extra care in placing a short entry when MACD histograms turn into negative territory first time after staying for a long period of time in positive territory.

With  Moving Average and MACD Train trading system, sometimes a short entry signal is found but the short entry does not be profitable as expected. One of the such situations is illustrated in above price chart.

We can see the distance between two SMAs is relatively wider, and the MACD histograms turn into negative territory when price moves below the first SMA closer to the price. In such cases, a short entry may not be that much profitable as expected.

A very profitable and accurate short entry signal can be found with Moving Average and MACD Train trading system when the price moves below the 100 SMA and 50 SMA, and also breaks any of the price chart pattern. Here in the above illustration, breakout of a bearish flag pattern happened.

Another effective short entry signal with this trading system can be found when the price moves below the 50 SMA,100 SMA and a rising trend line. At the same time MACD histograms turn into negative territory.

With this trading system, a falling trend line can be used to find some accurate short entry signals. The short entry signals are found when price moves below the 50 SMA and 100 SMA after kissing the trend line. The MACD histograms must turn into negative territory or grow longer in negative territory.

In bottom line, the above techniques can dramatically improve the ability of a trader to identify the profitable short entry signals with the Moving Average and MACD Train trading system. If you have any question regarding this post, you can drop it into the comment section below. I generally response to your comments within 24 hours.

You can also subscribe yourFXguide to receive updates right into your inbox. Simply, enter your email address into the email subscription box and click subscribe, then sign into your inbox and click the confirmation link. Thank you !!!

More info for IDENTIFYING THE SHORT ENTRY SIGNALS MORE EFFECTIVELY WITH MOVING AVERAGE AND MACD TRAIN TRADING SYSTEM ~ forex automated trading software reviews:

Read More..

FOREX ECONOMIC INDICATOR CONSUMER PRICE INDEX CPI - forex trading companies in london

FOREX ECONOMIC INDICATOR CONSUMER PRICE INDEX CPI ~ forex trading companies in london

Consumer Price Index is a very popular economic indicator that is considered as a tool of measuring inflation and money supply in the economy. According to wikipedia.com "Consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households." And according to the Bureau of Labor Statistics Consumer Price Index is "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services."

Source:bulawayo24.com

From the definition of consumer price index, we can easily understand that with the increase of consumer price index the price of consumer goods and services goes up, at the same time the purchase power of consumer goes down. It means, if we could buy a shoe for $5, after 2% increase in CPI we would buy the same shoe for $5.10. CPI is a indicator that is used to measure the inflation and money supply in the economy. 

Generally, the increase in CPI is considered as a bullish sign for a currency, but sometimes it can have bearish effect on the currency. So, both increase and decrease in the CPI can be considered either positive or negative for a currency, considering the economic situation and performance.Increase in CPI should be followed by the improved economic performance, and if increase in CPI is not followed by the improved economic performance then it is called recession. 

In forex trading, traders should know whether the authority to monetary policy considering CPI as a tool of analyzing inflation situation or not. If yes, then for that currency CPI is very important economic indicator. For example, ECB uses CPI to analyze the inflation situation in EuroZone, so CPI is a very important economic indicator for Euro, but the FOMC uses personal consumption expenditure(PCE) to measure the inflation situation in US, so for USD PCE is more important than CPI. 

Core CPI is a method of measuring core inflation in the economy. Core CPI is measured by subtracting the  energy and food prices from CPI. Core CPI is more accurate measure of inflation because it excludes the very volatile energy and food prices.

In bottom line, we can say CPI is an economic indicator that explains the inflation situation. Traders should consider the CPI data to predict the monetary policy decision and outlook.

More info for FOREX ECONOMIC INDICATOR CONSUMER PRICE INDEX CPI ~ forex trading companies in london:

Read More..

Trend for 8th of September (updated) - blogs for forex trading

Trend for 8th of September (updated) ~ blogs for forex trading

Hi, market trend traders. I hope you see how Euro nose dived today. Let me talk about it a little. I also believe that you know what caused this volatility in the markets. Yes, it was fundamental news, as always. This time it was interest rate decision from both European Central bank and Bank of England. Firstly, British guys delivered their decision and after forty five minutes European central bankers did the same. The rest is history as they say.

Now, what interests me is the way one could have traded the event. As you investigate the event more carefully you will see that currencies were moving before the news release. They slowed somewhat before the first and second announcement though. Just in case, you know. This created for opportunities traders to do some news trading and news trading they did. When the news was released lots of limit orders were opened and this caused a huge day trend in the pairs. I particularly liked a move in eur/gbp. If you remember I talked a lot about my expectation for the pair and that it would fall and it did fall. Before the collapse it managed to come back to breakout level of 0.8840. 

Today’s event caused it to continue its’ downward trend. So, there was some time before the release to place a sell order below short term support of 0.8780 and wait till the news opened it. Exit level as you may understand was at an even number of 0.8700. Quite a good ride for such a slow mover as eur/gbp! The next stop is at 0.8650 level. Not much left! And nobody knows what happens after that. I told you that I expect a large bearish move in eur/gbp in the coming future. Maybe it is not far away! See you tomorrow!

See also:

Resistance

Follow the leader

Moving average

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

More info for Trend for 8th of September (updated) ~ blogs for forex trading:

Read More..

Currency trading opening a position - forex trading calendar

Currency trading opening a position ~ forex trading calendar

The reason for trading the forex market is to make money. You do this through the positions you take by means of buying and selling a different set of currencies. When a currency rises in value after you have bought it at a lower price, you realize a profit when you close the position at a higher price. At the moment you close the working order, you are selling back the base currency and buying its counterpart currency.
The position, or order, represents the net amount of exposure in a particular currency and in its counterpart currency because they always work in pairs. The position is said to be flat when there is no exposure, long if more currency has been bought than sold, and short if more currency has been sold than bought. When you perform currency trading , you are exchanging one currency for another, expecting that the currency that you buy will see its value rise in comparison with the currency you sell in the operation. In the forex market, currencies trade in pairs. If we decide to realize the profit, we need to sell back the currency that we bought earlier at the higher current price. This is fundamental to understand how to trade forex
Purchasing a particular currency pair, where you are also acquiring a certain amount of the base currency and selling the same amount of the quote currency, is also called going long or longing the market. In the inverse position, we are shorting the market or going short in a particular base currency ( when you see that its value is decreasing with respect to the quote currency ).
One is said to be long in one currency when we buy it and short in that currency when we sell it. Long positions use the ask price of the quotes. Short positions use the bid price of the quotes.
Trading currency pairs is simultaneous and symmetrical. This implies that we will always be long in one currency and short  in another at the same time. A position that is active will be called an open position. Its value will change depending on fluctuations in market rates. Profits and losses will be influence the margin account but will not be official until the position has been closed.
More info for Currency trading opening a position ~ forex trading calendar:

Read More..

Economic Recession and How To Deal With It! - forex trading is a great career opportunity

Economic Recession and How To Deal With It! ~ forex trading is a great career opportunity

Economic Recession may be a new term in your ears but in essence, it is actually a common economic term used to refer to the slowing down of economy. You see, a countrys economy follows a natural cycle. Sometimes its up and sometimes its down. You just dont realize that its happening because it has not gone this bad since the wall street crash decades before. Now, United States is feeling the heat once again with the rising costs of living and transportation as well as the crash of the real estate industry and just recently the crash of the top banks in the US.

During these times, all you can do is to hope and pray that you will still be able to keep your job and survive the recession until everything is ok again. To do this, you need to save up and make sure that you are ready for every eventuality. Here are some tips on how to deal with every Americans concern right now.

1. Be Prepared

What you know cannot kill you. There is nothing wrong and being prepared for potential problems. Even if right now, you dont have any problems financially, it pays to get ready for the coming challenges. You can do this by saving up some money and putting them in the bank. That way, you can use something for the rainy day.

Think of other ways that you can be prepared and plan around it. Look at your expenses every month and check where you can cut off the extras. With them side by side, you will know just where you are overbudgeting. This is also an excellent way to plan and save for future expenses like for instance, your childrens tuition fees.

2. Save with Your Consumption

Another way to do this is to make sure that you will be spending less for the household. You can do this by cutting expenses that are not necessary like in luxury items such as clothes, entertainment, trips. If you dont need it, dont buy it. Only purchase the items that you know you will be using.

You should also save with your consumption of electricity, gas and water as these are areas that you may not notice you are overbudgeting but usually you are. For instance, ironing clothes piece by piece and not by bulk consumes more electricity. The same goes with leaving the door open when the airconditioning unit is turned on. Always make sure that you turn off the TV after watching it or to be sure, purchase a unit that has a programmable on and off button that you can use. There are also airconditioning models and heaters that you can buy that have this feature.

3. Don’t Panic!

Economic recession as mentioned to you is a cycle and usually it will have an end. There is no need to feel panicky and feel that all hope is already lost. The more that you feel the panic, the more problems you will have because panic can make you do things without thinking about it or make you so nervous you will be mentally blocked out. So just ride the waves and go with the flow. Youll never even feel that its there.




Recommended Ebook: Recession Survival: How To Profit From An Economic Recession!...Download it FREE Now! Click Here.



To Your Stocks Online Success,
A Professional Stocks and Forex Market Trader
Dan A.


P.S: Looking to Make Serious Profits from the Stock Market in the Economic Recession Times? Go Here.
More info for Economic Recession and How To Deal With It! ~ forex trading is a great career opportunity:

Read More..

FOREX TRADING SESSIONS BEST TIMES OF DAY TO TRADE FOREX - forex trading companies in chennai

FOREX TRADING SESSIONS BEST TIMES OF DAY TO TRADE FOREX ~ forex trading companies in chennai

Forex market runs 24 hours, 5 days in a week.Yes it does. But in this 24 hours time period so many trading sessions open and close. The boss sessions of forex trading  are Now York, London, Asian/Tokyo and Sydney.

The table above presents the opening and closing time of major forex trading sessions. Mentionable, Tokyo session is referred to Asian session commonly. From the above table, we can easily find the opening and closing times of major trading sessions. The opening and closing times in summer and winter are different because in some countries Daylight Saving Time is applied.

Different trading sessions have different characteristics that can be applied by the traders in their trading . For example, the average daily pips movement of the currency pairs defer among trading sessions. In the above table you can find the average daily pips movement of the currency pairs. It is measured analyzing some past data.

Which currency pairs should be traded during Asian session?

Tokyo session is referred to the Asian session because Tokyo is the financial capital of Asia. The opening of Tokyo session is marked as the opening of Asian session. Mentionable, Japan is the third largest forex trading session in the world. Another remarkable point is that the yen is the third most traded currency which partakes 16.50% of all forex transactions. About 21% of all forex transactions take place during the Asian session. 

Trading yen currency pairs can be very profitable during the Tokyo session. The exporters of heavily export oriented Japanese economy participate in this session. During this session, important economic news of New Zealand, China, Japan and Australia are released. As a result, AUD, NZD, JPY currency pairs show high volatility in the session. Canadian dollar also shows higher volatility during the Asian session because it is positively correlated with Australian Dollar. 

Which currency pairs should be traded during London session?

London session overlaps the Tokyo and New York trading sessions that made the London session such a key financial center in the world. A huge volume of currencies are traded in the session. 

During London session almost all currency pairs can be traded. Specially, major currency pairs can be profitably traded during this session. A huge volatility can be seen in the movement of almost all currency pairs.

Which currency pairs should be traded during US session? 

US session opens when the European session is almost matured. As the US session overlaps the European session when it starts, at the beginning of the US session a huge volatility is found in the market. All major pairs and all crosses can be traded during this session.

Many US economic news release in the session, and the releases provides handy volatility in the market. Even the scheduled economic news in US session sometimes create a calmness at the end of the London session.

What are the best times of day to trade forex? 

During the overlaps between two sessions, currency trading is profitable because the currency pairs become more volatile. Following are the overlaps between the largest trading sessions.

New York and London: between 8:00 am — 12:00 noon EST (EDT)
Sydney and Tokyo: between 7:00 pm — 2:00 am EST (EDT)
London and Tokyo: between 3:00 am — 4:00am EST (EDT)

From the above table, you can find the the average pips movement by some of the currency pairs during different trading sessions and overlaps. It can help you in selecting the the right currency pairs to trade.

Dear Friends, If you have any questions, you can drop a comment below.

More info for FOREX TRADING SESSIONS BEST TIMES OF DAY TO TRADE FOREX ~ forex trading companies in chennai:

Read More..

HOW TO TRADE FOREX WITH CHOPPINESS INDEX TECHNICAL INDICATOR - forex trading companies in lagos

HOW TO TRADE FOREX WITH CHOPPINESS INDEX TECHNICAL INDICATOR ~ forex trading companies in lagos

In our last post, we learned the forex technical analysis with Awesome Oscillator, an effective technical tool for all types of investors. Now we are going to introduce the the technique of trading forex with Choppiness Index technical indicator, developed by E.W. Dreiss. This indicator does not suggest any entry or exit price rather it indicates the strength of the trend.

Source: metatrader4.com

It is a range bound technical analysis indicator moves within the 0 to 100 range, but some traders even use the 38.2 to 61.8 range.

When the Choppiness Index gives a reading below 38.2 that means the trend has already lost its major energy and supposed to be slower. Below 38.2 readings also suggest that the instrument was trending to a direction for a certain period (CPI period) of time.

When the Choppiness Index gives a reading above 61.8 that means the instrument was not maintaining a trend for a certain period (CPI period) of time.

We can consider the higher readings of the Choppiness index as the time to place an order and the lower readings as the time to close an order.

It cannot be confidently said that the lower readings by Choppiness Index suggest  that the trend will be reversed. But after a lower reading, traders should be more careful in placing an order to the trend.

This technical analysis indicator can be used for scalping, short term trading and medium term trading.

If you have any suggestions, please share with other traders in the comment section below.

You can mention me on twitter @albab247

More info for HOW TO TRADE FOREX WITH CHOPPINESS INDEX TECHNICAL INDICATOR ~ forex trading companies in lagos:

Read More..