There are two forex basic exchanges for investing to forex trading currencies -- the currencies futures market and the Forex market. Though they both operate based on the same underlying premise, namely exchanging one forex currency for another in order to make a forex profit. However, there are some basic differences. The Forex market is best known for its three key features:
1. High volume of forex trading
2. Extreme liquidity
3. Being available 24 hr a day (except weekends)
Unfortunately, not every forex investor sand-colored forex trader is successful in their first turn to at currency exchange forex trading, powerful in our time are five forex tips that could possibly tend she be a purblind more successful at compared with others.
Forex Tip #1 - Familiarize yourself with the Forex market.
You need upon become as spoken as possible in addition to the forex currencies that you are going to abide forex trading. Keep in mind that gaining a authentic forex tutoring is the lock up to attaining success in any endeavor. And that is especially undeflectable when it comes up maximum dissemination exchange. The pluralism accurate your forex charts predictions involving the way a fame moves become, the major your chance at charade and the more and more probable that subliminal self will hold elegant for you.
Forex Tip #2 - Find the best Forex trading systems to suit your needs and then stick with it.
The exemplar forex trading systems enable you to forex automate your forex trading based on history. The better forex trading systems hope moreover track key aspects analogous without distinction those peaks and valleys that currencies climb or travel through. This may take a bit referring to trial and error, but once you find the structure that is providing them with a forex profit, diapason including it. The more savvy forex brokers and fx traders discipline all tell yourself that a person's success is regard the forex trading system. Remember, if it ain't broke, don't strive for on fix it.
Forex Tip # 3 - Repetition is not a bad thing -- practice does make perfect.
Despite the fact that it isn't the real world, "paper forex trading" is an excellent tool to help you learn the industry and develop your skills at it. Paper forex trading is a practice tool that you can use whenever you want to develop your knowledge of the industry without the use of real money. It is exactly what the name implies as you are forex trading on paper only.
Forex Tip #4 - Always pay attention to the margin.
Unfortunately, forex trading using margins is a great way to lose a lot of money, and lose it very quickly. Until you are skilled fairly proficiently and really know what you are doing, you should avoid forex margin trading like the plague. Staying away from this also lowers your forex risk factors and enables you to put that investment to better use.
Forex Tip #5 - With forex trading, the only thing that matters is the bottom line.
At the end of the day, all that matters is what you have forex profited from your efforts. It\'s not how you earn lozenge default those forex trades -- it's omneity haphazardly dollars and cents. Losing is not an option, and the more determined and steadfast that you leverage your ground and maintain that attitude, the prevail off your bottom consequence pass on continue.
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Monday, January 12, 2009
Sunday, October 19, 2008
Enhanced BASIC Synergy FOREX EXPERT ADVISOR
** DOWNLOAD EAIntroduction
The Synergy forex Trading Method was developed by Dean Malone and is an effective Forex trading method developed to simplify trading decisions with high probability forex precision. It combines the forex market forces of Price Action, forex Trend, Momentum and Market Strength to produce higher probability trades. The Synergy forex trading method depicts...in real-time...the interaction of these forex market forces providing traders the means to make forex trading decisions with greater confidence and less emotional hassle
With Synergy, traders identify and use two important forex trading components in real-time: Price Action and Sentiment.Price Action is forex market movement, such as the oscillation of Open, High, Low and Close prices. Too often, forex traders are mesmerized by trivial price fluctuations and lose sight of the underlying trend of the market. Many traders tend to jump in and out of the forex market instead of staying with the trade as a forex trend develops. Synergy is designed to eliminate price distortions. It reveals periods of forex market strength and trend and periods of consolidation. Sentiment is the intuitive feeling or attitude of traders and forex investors in the forex market. For example, if the sentiment of the market is bullish, then forex traders and investors expect an upward move in the market. Often, sentiment is an indication of optimism or pessimism in the forex market based on recent news announcements or political events. The Synergy forex method uses a hybrid custom forex indicator developed to show positive (buyers) sentiment or negative (sellers) sentiment. Working in unison, Price Action and Sentiment give forex traders a distinct trading advantage. When both are in agreement, a favorable forex trading condition exists. For instance, when price action is showing upward movement with buyers’ sentiment, there is higher probability of a Long position having a favorable outcome. Similarly, when price action has a downward forex movement in conjunction with sellers’ sentiment, a short position has a favorable outcome.
The forex EA was developed by Derk Wehler in Forex-tsd forum to eliminate the stress of gluing to the PC for 24hours looking for trading forex opportunities.
INSTALLATION INSTRUCTIONS: Unzip the file into some temporary folder.Best to shut down your trading forex platform, and then... From there, put the files in these locations: SynergyEA.mq4
> ...\expertsLibDerksUtils.mq4 -> ...\experts\librariesLibOrderReliable.mq4 -> ...\experts\librariesLibDerksUtils.mqh -> ...\experts\includeLibOrderReliable.mqh -> ...\experts\includeSynergyInd.mq4 -> ...\experts\indicatorsHeikenAshi_DM.mq4 -> ...\experts\indicatorsTraders_Dynamic_Index.mq4
> ...\experts\indicatorsChaikin's Volatility_Kalenzo.mq4
> ...\experts\indicators
When you start back up your platform, everything should compile.If you have troubles, you can try compiling manually, by opening your meta4 editor (from your forex platform), and loading and of the .mq4 files listed above and hitting the "Compile" button. You should have no errors or warnings.
EXPLANATION OF SETTINGS FOR FOREX EA
The SynergyInd uses mostly the same settings; the ones that differ are self-explanatory, so although this document only covers settings for the forex EA, it should help you set up the SynergyInd as well.
FOREX MONEY MANAGEMENT SETTINGS
TYPE NAME DEFAULT SETTING
Bool UseMoneyManagement false
Bool UseDualWinMM false
Double TradeSizePercent 3.0
Double ScaleInPercent 25.0
Int MaxScaleIns 0
Bool SplitOrder true
Double Lots 0.2
Double MinLots 0.01
Double MaxLots 100.0
UseMoneyManagement: If enabled, it will calculate how many lots to trade based on TradeSizePercent, but will never trade less than MinLots or more than MaxLots.
The way it calculates how much to trade depends on how much information the EA has about those trades. If you have entered a StopLoss value greater than zero, or if you have enabled UseOppPAC_Trail and OppPACforInitSL, then the forex EA will use an initial stop loss when it places the trade. Given that info, it can calculate worst-case scenario (trade goes against you and hits stop loss) and uses a lot quantity such that, if you lose, your forex account will end up losing TradeSizePercent.
If it has no StopLoss set (zero), then it has to use a different form of calculation (the one many forex EAs use as a standard), but using your margin requirements and your forex account leverage.
In general you will find that if you have a zero StopLoss, you will probably want to use a higher TradeSizePercent, and if you are using a StopLoss (or UseOppPAC_Trail with OppPACforInitSL), then you want a much lower TradeSizePercent; probably 3 or 4 times lower. Ex: No SL, try 5 - 15%, is using SL, try 1 - 5%.
UseDualWinMM: This enables a type of forex money management also known as the binary money management forex system, as pioneered by a 17th century mathematician named d'Alembert. Its full explanation is beyond the scope of this forex manual, but basically this is a system by which the user will always end up “one unit” ahead once the forex EA wins two trades in a row.
This forex system is meant for forex EAs that only enter one trade at a time, so if you set MaxScaleIns to anything but zero, you will get unexpected results, as you likely also shall if you enable UseSplitLots. In addition, the TakeProfit value must be known at the time the trade is placed, so the author does not recommend it’s use in this forex EA, as he feels the forex system works much better utilizing settings incompatible with this option.
TradeSizePercent: Explained above.
ScaleInPercent is the percentage it will use to calculate how many lots to forex trade on any scale-in trade, and is based off the original trade. So if ScaleInPercent is 25.0 and you have an initial trade with a size of 0.8 lots, then each additional trade in the same direction will be placed with 0.2 lots.
MaxScaleIns is the number of additional trades in the same direction that you want the forex EA to take, should it get a continuation forex signal. A continuation signal occurs, for long forex trade, when the TDI green line moves above the top blue Volume line, and is between the values of 50 and 68. For short trades, when the green line is below the lower blue Volume line and the green line’s value falls from 32 to 50.
SplitOrder: When the forex EA gets an entry forex signal and this is set true, it will split the trade into two forex trades for half the lots each. One of them will have no take profit value, and the other will have a take profit depending on the TakeProfit setting. Therefore, one half your trade will exit when it hits take forex profit, and the other half will go until closed by either the PAC trail (assuming you set “UseOppPAC_Trail” to true), or the stop loss / trailing stop function, or the forex ATR exit is enabled, or due to the entry of a trade in the opposite direction.
Lots: The number of lots to use per trade. If SplitOrder is true, then it will open two orders, each at Lots/2. If you are using MoneyManagement, this setting is ignored.
MinLots, MaxLots: These are used with MoneyManagement, and explained in that section.
FOREX INDICATOR SETTINGS
TYPE NAME DEFAULT SETTING
int UseEntry68_32 0
int ReqRedYellowCombo 0
int UseVolExpanding 0
double UnlessVolWidthGT 0.0
int ReqEntryNearPAC 1
int UseHTF_Trend 0
int UseSmallerOrOpp 0
int UseSmallerExit 0
double DefineSmaller 0.08
int UseClosedInside 0
int UseTDI_ExitDir 0
int UseOppPAC_Trail 1
int OppPACforInitSL 0
UseEntry68_32: For a forex signal to occur, one of the requirements is for the green line to be above 50 for long, or below 50 for short. If this is enabled, the green line is also required to be below 68 to forex signal a long trade, and above 32 to signal a short forex trade.
ReqRedYellowCombo: If enabled, this setting requires the red TDI line to be above the yellow line to forex signal a long trade, or below it to signal a short.
UseVolExpanding: Enabling this setting will require that the blue TDI volume lines be diverging in order to forex signal a trade (with exception of “UnlessVolWidthGT” below).
UnlessVolWidthGT: If UseVolExpanding is enabled, and this value is non-zero, then the “expanding volume” rule will be ignored so long as the width of the blue volume bands is greater than this number. The intention here is that sometimes the volume bands are parallel, or converging just slightly, but still far apart, indicating enough sustained volume for a good forex trade.
ReqEntryNearPAC: If this setting is enabled, an otherwise valid forex trade will not be entered if the entry point is farther from the closest PAC line than the width of the PAC itself. The reasoning is that sometimes there is a large forex breakout (e.g. news announcement) where the candle is very large, but the forex strategy, which always lags somewhat, does not forex signal a trade until after that candle has already moved most of it’s distance, or even until a following candle. Often after this occurrence, the price loses momentum or retraces and then stops out at a loss. So this forex setting as to attempt to stay out of such trades, which are triggered by drastic movement.
UseHTF_Trend: This setting, “Use Higher Time Frame Trend”, if enabled, will only allow a trade to be entered if it is in the same direction as the “trend” of an upper timeframe. If set to zero, it is disabled, otherwise it should be set to the higher timeframe (in minutes); e.g.:
60 Hourly
240 Four Hour
1440 Daily
10080 Weekly
43200 Monthly
UseSmallerOrOpp: If this is enabled, the forex EA will check at the open of each candle, and will exit a trade if the previous Heiken Ashi candle is the opposite color from the one preceding it.
UseSmallerExit: If this is enabled, and UseSmallerOrOpp is enabled, then the forex EA will also close the trade if the previous candle is the same color as the one preceding it, but is much smaller than the previous one. How much smaller? See DefineSmaller.
DefineSmaller : This is the multiplier used to determine what “smaller” is, for use with UseSmallerExit, above.
UseClosedInside: If this is enabled, the forex EA will check at the open of each candle, and will exit a trade if the previous forex Heiken Ashi candle closed within the PAC.
UseTDI_ExitDir: If this is enabled, the EA will check at the open of each candle, and will exit a forex trade based on the previous candle’s TDI values as follows:
For longs, it will exit if the green line is greater than 68, but below the red line and the upper blue line.
For shorts, it will exit if the green line is less than 32, but above the red line and the lower blue line.
UseOppPAC_Trail: When this is enabled, the EA will check at the open of each candle, and will exit a trade if the closing price of the previous (just-closed) candle is outside the opposite side of the PAC. This serves to act as a sort of trailing stop, with the unique feature that it will only act on the closing price of the candle. Therefore the price can spike, beyond the opposite PAC, but if it returns before it closes, the order will not exit.
OppPACforInitSL: If this option is enabled, rather than use the StopLoss setting as the initial stop loss for the trade, the forex EA will use the opposite side of the PAC (plus the spread) as the initial stop loss point.
FOREX ATR EXIT SETTINGS
TYPE NAME DEFAULT SETTING
bool UseATR_Exit false
int ATR_Period 5
double ATR_PipMult 4
int ATR_MinPips 50
int ATR_MaxPips 500
The ATR Exit is a simple forex method of trying to let the forex market’s movement tell the forex EA where to set take profit. It works by setting the take profit value to be a certain multiple of the current ATR value. The ATR is Average True Range, and it is basically just a moving average of the range (high – low) of the last “X” candles. Here, by default, I use an forex ATR period of 5, so “X” is 5 candles. So, to give a simple example, if the average range of the last 5 candles is 12 pips, and your ATR_PipMult is set to 4, it sets the take profit at 48 forex pips.
However, the ATR values is always changing, so if the forex market is moving rapidly in one direction, the current candle is probably larger than the previous one; the ATR value is increasing and so is the number of forex pips required for exit. But then as the candles get smaller again (forex market slows), the required take profit value starts to decrease… but meanwhile, the actual forex trade profit has increased, and when the two meet, it exits the trade.
The ATR rarely (essentially never) captures the maximum amount of forex pips that were available on the move, but it does tend to capture most (perhaps 70-80%) of it, and it keeps you from having to use a set take forex profit value, when you don’t know how much the forex market may move.
The optimal situation for the ATR stop is where the market goes in a positive direction for a while, making some larger candles, but then trails off near the top of the move, flattening out and making smaller candles. The worst situation is there the candles move in a positive direction, making bigger candles, but then changes direction and makes equally large candles coming back down. In these cases, the ATR will not be able to secure those pips; it will stay in the forex trade and the profits will be lost as it retraces.
While you are certainly welcome to adjust the ATR_Period setting, the author has always just left it at 5; you wouldn’t want it much longer because it would not be responsive enough. The important variable to experiment with here is the ATR_PipMult. Depending on forex currency pair and timeframe, you may wish to adjust this anywhere from 2.0 to 40.0, but the author recommends you try a value of 4 to 7 to start with. Basically, the higher this value, the more pips the forex EA will demand from the trade. Please play with this first on a forex demo account, or better yet, run a visual backtest to get a feel for the ATR_PipMult setting.
SL, TP & TRAIL EXIT SETTINGS
TYPE NAME DEFAULT SETTING
int StopLoss 0
int TakeProfit 100
int TrailingType 3
int TrailingValue 0
int FirstMove 100
int FirstSL 100
int SecondMove 0
int SecondSL 0
int ThirdMove 0
StopLoss is the initial stop loss assigned to each trade. If zero, no stop loss is used. Please see various other related settings above, especially UseOppPAC_Trail, which will override this forex setting.
TakeProfit is the set amount profit to use for each trade. If zero, no set take profit is used, and exit will instead occur based on one of the following:
The Price Action Channel, if UseOppPAC_Trail enabled
The trailing stop, if TrailingStopType and supporting settings are enabled
The ATR stop, if UseATR_Exit is enabled
The Heiken Ashi candle color, size or closing value, depending on the settings of UseSmallerOrOpp, UseSmallerExit, DefineSmaller and UseClosedInside.
The position of the TDI forex indicator lines, depending on the settings of UseTDI_ExitDir,
Entry forex signal in the opposite direction of the current trade
Please read this entire manual for information on these settings.
TrailingType: This is for use with any of the various kinds of trailing stops available to you. At the time of this writing, there are 6 different types of trailing stop available.
They are explained here:
Type 1:
Moves the stop loss without delay (pip for pip).
Type 2:
Waits for price to move the amount of the trailing stop (TrailingValue) before moving stop loss then moves like type 1. The only difference between this and type 1 is that this one will not initially move the SL until the it would be set at breakeven.
Type 3:
Uses up to 3 levels for trailing stop, and utilizes these additional parameters:
FirstMove: When the forex trade is in profit this much...
FirstSL: Move SL this far from the current price
SecondMove: When the trade is in profit this much...
SecondSL: Move SL this far from the current price
ThirdMove: When the forex trade is in profit this much...
TrailingValue: Use this value & trail like Type 1
One of the unique qualities of a type 3 (or type 5) is that you do not have to use it all. For example, if you just want it to start trailing by 15 pips once it gets to 90 in profit, just set:
TrailingType = 3
TrailingValue = 15
FirstMove = 0
FirstSL = 0
SecondMove = 0
SecondSL = 0
ThirdMove = 90
Or, if say you do not want it to trail at all, but you want to lock in 50 forex pips when the profit reaches 80, and want to lock in 130 pips if the profit reaches 180, then you would set:
TrailingType = 3
TrailingValue = 0
FirstMove = 80
FirstSL = 30
SecondMove = 180
SecondSL = 50
ThirdMove = 0
Type 4:
Ratchets the SL up:
e.g. if SL = 20, and open price is 1.2400, then
when price reaches 1.2420, SL is set to 1.2400; when
it gets to 1.2440, SL is moved to 1.2420, etc.
Type 5:
Same as Type 3, except after 3rd move, it ratchets like type 4
Type 6:
Keltner Channel Trail
Uses various Keltner Channels as check points;
When it hits the next higher (for buy) channel
point, sets the stoploss to the previous
channel point. Default "K" values for Keltner
indicators are: 4,5,6,8,10,12,15,18,20
AUTHORS NOTE: If you are confused by all these trailing options, forget about them. The forex EA uses a trailing function from my library; all my forex EAs have it. But that doesn’t mean it’s best to use all of it. For this EA so far, I have only tried a “standard” type 2 trail, TrailingType = 2, TrailingValue = 100 (or whatever you want to trail by).
TrailingValue is the number of pips to trail by; see explanation above regarding various types of trail.
FirstMove, FirstSL, SecondMove, SecondSL, ThirdMove: See trailing types 3 and 5, explanation above.
GENERAL SETTINGS:
TYPE NAME DEFAULT SETTING
bool UseAlert false
bool UseEmail false
int Slippage 1
int MagicSeed 28000
string ExpertName "SynergyEA"
int DebugLevel 5
UseAlert, if set to true, will pop up an alert window when the forex EA enters or exits a trade.
UseEmail will send an email when the forex EA enters or exits a trade. This will only function if you have correctly set up your email settings in your platform.
Slippage is the amount you will allow your broker to "slip" the price, on entry or exit. Common to most forex EAs.
MagicSeed is just any number you want to enter, or leave at default. The forex EA will use this as a base, then add a unique number to it based on the forex currency and timeframe, and will use this end number to "tag" trades, so it (and other EAs) know which forex trades were opened by it. Magic numbers are used with all forex EAs.
ExpertName is simply the text that will appear as the comment on each trade the forex EA makes.
DebugLevel sets a level, from zero to 5, which controls how much info gets printed to the experts tab. I have left it defaulted to 5, but after you are satisfied that the forex EA is working as it should, I recommend you change to zero so that it will print nothing extraneous to the experts tab.
Saturday, October 18, 2008
Profit Forex trading method #2
the reccomended forex currency
forex pairs are: GBP/USD
we work by 0.1 lot at every 400$
we put two forex orders at 10.30 in the morning (at winter time) according to Moscow (opening of Europe session+30 minutes Moscow time):
1) buy-stop on the maximum price (+1 point) of the current day
stoploss on the minimum price (-1 point) of the current day.
take forex profit is defined in such way: strain the lines of Fibonacci from price maximum of the current day to price
minimum of the current day at 10.30 in the morning and take price value of Fibonacci's line 161.8 in the capacity of take profit (visually)
2) sellstop on price minimum (-1point)of the current day
stoploss on the price maximum (+1poin) of the current day
takeprofot is defined in such way: strain Fibonacci's lines from price minimum of the current day to the price maximum of the current day at 10.30 in the morning and take price value of
Fibonacci's line 161.8 in the capacity of take profit (visually)
we close unclosed forex market positions at about 00.00 at Moscow time (or earlier at 22.00-23.00)
we delete not worked forex orders
that is all!
if at a point of installation of the order at 10.30 forex market (current) price is equal to maximum or minimum of price of the current day, we put order on minimal possible distance from current price (it is usually 10 points) or we wait for rollback or
just open position at the current price.
if at apoint of installation of the order at 10.30 the difference og prices from minimum to maximum more than 50-70 points (strong price movement), we do not sell at this day or sell by trend with takeprofit of 20-30 points
Forex Trader Info - Visit
forex pairs are: GBP/USD
we work by 0.1 lot at every 400$
we put two forex orders at 10.30 in the morning (at winter time) according to Moscow (opening of Europe session+30 minutes Moscow time):
1) buy-stop on the maximum price (+1 point) of the current day
stoploss on the minimum price (-1 point) of the current day.
take forex profit is defined in such way: strain the lines of Fibonacci from price maximum of the current day to price
minimum of the current day at 10.30 in the morning and take price value of Fibonacci's line 161.8 in the capacity of take profit (visually)
2) sellstop on price minimum (-1point)of the current day
stoploss on the price maximum (+1poin) of the current day
takeprofot is defined in such way: strain Fibonacci's lines from price minimum of the current day to the price maximum of the current day at 10.30 in the morning and take price value of
Fibonacci's line 161.8 in the capacity of take profit (visually)
we close unclosed forex market positions at about 00.00 at Moscow time (or earlier at 22.00-23.00)
we delete not worked forex orders
that is all!
if at a point of installation of the order at 10.30 forex market (current) price is equal to maximum or minimum of price of the current day, we put order on minimal possible distance from current price (it is usually 10 points) or we wait for rollback or
just open position at the current price.
if at apoint of installation of the order at 10.30 the difference og prices from minimum to maximum more than 50-70 points (strong price movement), we do not sell at this day or sell by trend with takeprofit of 20-30 points
Forex Trader Info - Visit
Wednesday, October 15, 2008
Forex Trading - Forex Live -on- the - News Webinar ...
Dear Forex Trader,
Would you like to know how the world of Forex trading
Forex when news releases come out really works?
While no one can guarantee you forex trading profits - one of my trader collegues
- Dustin Pass has made forex trading the news his specialty, and believe me, he knows how it really works. He understands the pitfalls and the forex opportunity, and would like to share them with you...
Dustin will be discussing forex trading Forex live -on-the- news in a special Webinar event. You are invited to join this special presentation where Dustin will pull back the curtain on how forex news trading "really works" and whether it is right for you...
Register below for your 'virtual seat' for our "Forex Live-on-the-News" web seminar, where you'll be able to get a real-time preview of this powerful forex trading methodology...
About Forex Trading Method Number ONE
Would you like to know how the world of Forex trading
Forex when news releases come out really works?
While no one can guarantee you forex trading profits - one of my trader collegues
- Dustin Pass has made forex trading the news his specialty, and believe me, he knows how it really works. He understands the pitfalls and the forex opportunity, and would like to share them with you...
Dustin will be discussing forex trading Forex live -on-the- news in a special Webinar event. You are invited to join this special presentation where Dustin will pull back the curtain on how forex news trading "really works" and whether it is right for you...
Register below for your 'virtual seat' for our "Forex Live-on-the-News" web seminar, where you'll be able to get a real-time preview of this powerful forex trading methodology...
About Forex Trading Method Number ONE
Monday, October 13, 2008
How to tell forex Experts from forex Indicators
There is no file extension to distinguish between and forex Expert or forex Indicator. If you are not sure what you have, they you have to look at the code in MetaEditor. At the top of the code in MOST Experts there will be code such as Lots, Stop Loss, Take Profit, these would be Experts.
Most MT4 indicators with say Custom forex Indicator in the code, and MT3 forex indicators with have things such as Separate Window, First Color, Draw Type and things of that nature. I can not code a single thing, but I can read. Some Experts have a wealth of information written inside the code for easy understanding.
When you drag the Expert from the forex Expert Advisors folder in MetaTrader to the forex chart and let if go, that is when a pop up window should show up. On the common tab will be a box that says allow live forex trading, check it. Inputs tab will be to make changes to the code if it's allowed. Then click ok. Indicators taken from the Custom forex Indicators folder of MetaTrader will have a popup window as well, but no live forex trading. Just a list of settings, click ok and it should run.
If it's not, I would probably remove the Expert or Indicator from MetaTrader and try it again. I could be they are just in the wrong folders. Open the code to determine what it is, place it in the appropriate folder, compile it in that folder and start MetaTrader. From the Navigator menu, open forex Expert Advisors, drag the EA to the chart you want to run on and let it go, on the comon tab from the popup, click allow live forex trading and it should work. If it's an forex Indicator, it will be in the Navigator Menu under Custom Indicators.
Handy hedge free forex strategy
Most MT4 indicators with say Custom forex Indicator in the code, and MT3 forex indicators with have things such as Separate Window, First Color, Draw Type and things of that nature. I can not code a single thing, but I can read. Some Experts have a wealth of information written inside the code for easy understanding.
When you drag the Expert from the forex Expert Advisors folder in MetaTrader to the forex chart and let if go, that is when a pop up window should show up. On the common tab will be a box that says allow live forex trading, check it. Inputs tab will be to make changes to the code if it's allowed. Then click ok. Indicators taken from the Custom forex Indicators folder of MetaTrader will have a popup window as well, but no live forex trading. Just a list of settings, click ok and it should run.
If it's not, I would probably remove the Expert or Indicator from MetaTrader and try it again. I could be they are just in the wrong folders. Open the code to determine what it is, place it in the appropriate folder, compile it in that folder and start MetaTrader. From the Navigator menu, open forex Expert Advisors, drag the EA to the chart you want to run on and let it go, on the comon tab from the popup, click allow live forex trading and it should work. If it's an forex Indicator, it will be in the Navigator Menu under Custom Indicators.
Handy hedge free forex strategy
Saturday, October 11, 2008
Forex Trading ECN Lesson
Pros:
You can usually get better bid/ask prices since they come from several sources
Variable spreads between bid and ask may give no spread or tiny spreads at times
If they are a true ECN, they will not be forex trading against you but will pass on your orders to a bank or another customer on the other end of the transaction.
You will be able to offer a price between the bid and ask with a chance of it getting filled
If they support Stop-Limit orders, you can prevent slippage during news by making sure that your order either gets filled at the price you want or not at all
Prices may be more volatile which will be better for forex scalping
Cons:
Many do not offer integrated forex charting
Many do not offer integrated forex news
Many of the forex trading platforms are less user-friendly
Because of variable spreads (between bid and ask,) it may be more difficult to calculate stop loss and profit target in forex pips beforehand.
Examples of some ECNs*:
http://www.mbtrading.com
http://www.efxgroup.com
http://www.hotspotfx.com
http://www.interactivebrokers.com
* Some of these "ECNs" may not be true ECNs, and you may be going through a dealing desk. It is impossible to verify for sure because of the lack of regulation governing forex brokers.
It is important that you carefully look into the pros and cons of each forex broker before choosing the one which best suits your needs. You may also wish to have several broker accounts to mitigate the risks, and so that you can compare bid/ask prices and trade on the broker with the best prices for the direction you wish to forex trade.
Because of the unregulated nature of forex, US brokers are not required to keep your money in an untouchable account that only you can have access to if they were to collapse.
As customers of Refco (was one of the world's largest forex brokers) found out, their unprotected accounts made them unsecured creditors, and thus are less likely to get their money back than those who had given secured loans to Refco. What this means is that the customers' money was used to pay other creditors.
The moral of the story is this:
Deposit as little money with your forex broker as you need for forex trading, and withdraw your profits when they exceed a certain amount. Keep the rest of your trading capital in your own bank accounts which are probably government-insured.
You can usually get better bid/ask prices since they come from several sources
Variable spreads between bid and ask may give no spread or tiny spreads at times
If they are a true ECN, they will not be forex trading against you but will pass on your orders to a bank or another customer on the other end of the transaction.
You will be able to offer a price between the bid and ask with a chance of it getting filled
If they support Stop-Limit orders, you can prevent slippage during news by making sure that your order either gets filled at the price you want or not at all
Prices may be more volatile which will be better for forex scalping
Cons:
Many do not offer integrated forex charting
Many do not offer integrated forex news
Many of the forex trading platforms are less user-friendly
Because of variable spreads (between bid and ask,) it may be more difficult to calculate stop loss and profit target in forex pips beforehand.
Examples of some ECNs*:
http://www.mbtrading.com
http://www.efxgroup.com
http://www.hotspotfx.com
http://www.interactivebrokers.com
* Some of these "ECNs" may not be true ECNs, and you may be going through a dealing desk. It is impossible to verify for sure because of the lack of regulation governing forex brokers.
It is important that you carefully look into the pros and cons of each forex broker before choosing the one which best suits your needs. You may also wish to have several broker accounts to mitigate the risks, and so that you can compare bid/ask prices and trade on the broker with the best prices for the direction you wish to forex trade.
Because of the unregulated nature of forex, US brokers are not required to keep your money in an untouchable account that only you can have access to if they were to collapse.
As customers of Refco (was one of the world's largest forex brokers) found out, their unprotected accounts made them unsecured creditors, and thus are less likely to get their money back than those who had given secured loans to Refco. What this means is that the customers' money was used to pay other creditors.
The moral of the story is this:
Deposit as little money with your forex broker as you need for forex trading, and withdraw your profits when they exceed a certain amount. Keep the rest of your trading capital in your own bank accounts which are probably government-insured.
Wednesday, October 8, 2008
How to add alarm to any forex trading indicator
www.forex-tsd.com/indicators-metatrader-4/87-indicators-alert-signal-12.html
POST # 113
Hi
I see a lot of people here asking to add forex alarm when an forex trading indicator is light up. Especially when a arrow/bullet is turn on.
Actually, it is very simple task. All you have to do is follow the following instructions.
1) Every forex trading indicator has an forex indicator array that keep the values of the forex trading indicator. Values can be 0 or not 0. To find out the forex trading indicator name look for the command: SetIndexBufferIn the forex trading indicator editor it should look like thisSetIndexBuffer
(0,ExtMapBuffer);
SetIndexBuffer
(1,ExtMapBuffer
2); This lines tell us that we have 2 indicator buffers
2) Look when the forex trading indicator buffer change its value. In the example above we will look to line that contains the following patter:ExtMapBuffer[number] = where number can be a figure or a name. For example: if(res!=0.0) ExtMapBuffer[shift]=res;if after the equal sign there is 0 do nothing.3) Change it to make an forex alarm.After finding the value setting line we will add an alarm to it.a) add { before the setting. In the example above :if(res!=0.0) {ExtMapBuffer[shift]=res;b) add the Alert command after the ;. In the example above:if(res!=0.0) { ExtMapBuffer[shift]=res;Alert("Indicator set");}Do not forget to close the } 4) repeat for every buffer value settingCompile and you have an forex indicator with alert Hope it will help you
More Forex Trading Indicator
POST # 113
Hi
I see a lot of people here asking to add forex alarm when an forex trading indicator is light up. Especially when a arrow/bullet is turn on.
Actually, it is very simple task. All you have to do is follow the following instructions.
1) Every forex trading indicator has an forex indicator array that keep the values of the forex trading indicator. Values can be 0 or not 0. To find out the forex trading indicator name look for the command: SetIndexBufferIn the forex trading indicator editor it should look like thisSetIndexBuffer
(0,ExtMapBuffer);
SetIndexBuffer
(1,ExtMapBuffer
2); This lines tell us that we have 2 indicator buffers
2) Look when the forex trading indicator buffer change its value. In the example above we will look to line that contains the following patter:ExtMapBuffer[number] = where number can be a figure or a name. For example: if(res!=0.0) ExtMapBuffer[shift]=res;if after the equal sign there is 0 do nothing.3) Change it to make an forex alarm.After finding the value setting line we will add an alarm to it.a) add { before the setting. In the example above :if(res!=0.0) {ExtMapBuffer[shift]=res;b) add the Alert command after the ;. In the example above:if(res!=0.0) { ExtMapBuffer[shift]=res;Alert("Indicator set");}Do not forget to close the } 4) repeat for every buffer value settingCompile and you have an forex indicator with alert Hope it will help you
More Forex Trading Indicator
Tuesday, October 7, 2008
How I use Murrey Math
How I use Murrey Math
When I first started working with Murrey Math, I treated all the lines as simple pivots - support/resistance areas which could be used to confirm forex buy and sell signals. I realised that some levels are often repeated across different timeframes, which I thought simply made them stronger pivots. Then over time I got to understand a little more about how the Murrey works and here are a few tips from what I have learned so far. Firstly a bit about the individual lines themselves:
Firstly there's the obvious - when the market is over-extended in either direction (i.e at the overshoot or extreme overshoot lines) there's a good chance of a move back the other way, especially if there is confirmation from other forex trading indicators.
Then there's the one we've mentioned - the two Murrey forex trading strategies:
Buy at 1/8 close at 4/8 or Buy at 0/8 close at 2/8
Sell at 7/8 close at 4/8 or Sell at 8/8 close at 6/8
I haven't tested these too much but from what I can tell a little discretion is involved - the strike rate is not high enough to be purely mechanical about it. Candlestick patterns or confirming pivots might be a good "filter". See http://www.graemenash.co.uk/forex/MM.doc for more info on the forex trading strategies.
The "Forex Trading Range" lines might seem a bit confusing at first, given that the forex market spends most of its time outside the forex trading range, but there's more to it than that - these lines are actually very important in determining the state or sentiment of the forex market. Basically, when the forex market is between the lines, it is in an undecided state (i.e a forex trading range). If it is above the 5/8 line then the forex market can be considered bullish, likewise below 3/8 we are in a bearish forex market. Hence 5/8 is a great support level for re-entering a long trend and 3/8 for short.
A break of these lines can be very important. For example- If the market has been above 5/8 for a period of time but breaks below, that is a sign of bullishness fading. A drop to 4/8 almost always follows, and at that point 5/8 becomes significant resistance, because a break back above it would represent a re-establishing of the bullish scenario which had just previously failed.
If the forex market does indeed re-test 5/8 and fail, that confirms that the bullish sentiment has pretty much gone and an attempt at a move to 3/8 can be expected. If the forex market then breaks below 3/8, it has definitively turned bearish - and 3/8 then becomes strong resistance as a break back above would represent another change in sentiment, this time back to indecision.
Note that sometimes the re-test doesn’t occur and the market will break one forex trading range line and head straight for the other!
People often ask what timeframe to use Murrey on - but I use it on almost all of them. I have 1m/5m/30m/1h/4h charts on-screen with murrey lines. When you understand more about the forex market context murrey can give you, it's useful to have them all up as it can give good clues about where the forex market is likely to head.
A good example would be a forex trade I did a while ago which used nothing but murrey lines to get me in. Now I'm doing this from memory so it may not be totally accurate, but will still give a good idea of what I'm on about (I hope!) :)
Cable had bounced strongly off the 0/8 line on the 4h chart, a move targeting 2/8 (according to the forex trading strategy above), which was at 1.8250.
When it started approaching that level, I looked at the 1h chart, which had broken above it's 3/8 line, suggesting a move to 4/8 was coming. 4/8 was also 1.8250.
When it got to there, I dropped down to the 5min chart to "zoom in" on the action a bit more, and saw that cable had broken above 3/8, retested and bounced off, targeting at least 5/8, which was also 1.8250 - it then broke this and went to 6/8 at 1.8265
By this time the upward move was running out of steam - the 4h and 1h targets had been hit, and the 5min had made a sizeable up-move and overshot the target by one level, suggesting it may need to pause and retrace a little.
When the price hit that 6/8 at 1.8265 I dropped down to the 1min chart to try to pick the exact entry for the reversal, and I saw that the 7/8 (stall and reverse) line was at 1.8272. In the context of what the other timeframes were saying, it seemed highly likely that if the forex market hit this level it would bounce straight away.
The forex market went up to 1.8272 exactly then bounced off, giving me a +50 trade!
So that's how I use murrey math - to give context on what the market is doing and where it might go. I think it's important to have all the timeframes up as once you get used to it they give great info, and sometimes when they all say the same thing you don't need much else!
** As I write this I've just closed a cable short (from 1.7792 - 0945am UK time, closed 1.7777 at 0957), which was signalled well enough by divergences, price channels, moving averages etc.
But a great confirmation for me was the fact that when I entered the forex trade, the 5min forex chart had risen up to test the 3/8 line at 1.7792 - as I said earlier if market is below this it represents strong resistance because it means a change in sentiment. Simultaneously, the 1min chart was on +1/8 (extreme overshoot), which meant there was not much room above and a bounce off was likely.
For the exit there were again good divergence/boll/price channel/pivot forex signals and the confirmation for me was the 1min chart sitting just above the 5/8 line at 1.7769 - strong support because it would have meant a change from bullish to undecided sentiment. I took the exit there because in my view the forex market was short-term bullish, having risen 80 points in an hour, so that level was likely to hold as support.
** update again – I then reversed to long (at 1.7776 – 10am) with the target for the trade at 1.8222, which has just been hit, because:
The 1min bullish scenario was intact after that 5/8 line held
If price broke above the 5min 3/8 the target would be 4/8 at 1.8222
Right down at the bottom (1.7723) cable had bounced off 1/8 a move which targets… 4/8!
When I first started working with Murrey Math, I treated all the lines as simple pivots - support/resistance areas which could be used to confirm forex buy and sell signals. I realised that some levels are often repeated across different timeframes, which I thought simply made them stronger pivots. Then over time I got to understand a little more about how the Murrey works and here are a few tips from what I have learned so far. Firstly a bit about the individual lines themselves:
Firstly there's the obvious - when the market is over-extended in either direction (i.e at the overshoot or extreme overshoot lines) there's a good chance of a move back the other way, especially if there is confirmation from other forex trading indicators.
Then there's the one we've mentioned - the two Murrey forex trading strategies:
Buy at 1/8 close at 4/8 or Buy at 0/8 close at 2/8
Sell at 7/8 close at 4/8 or Sell at 8/8 close at 6/8
I haven't tested these too much but from what I can tell a little discretion is involved - the strike rate is not high enough to be purely mechanical about it. Candlestick patterns or confirming pivots might be a good "filter". See http://www.graemenash.co.uk/forex/MM.doc for more info on the forex trading strategies.
The "Forex Trading Range" lines might seem a bit confusing at first, given that the forex market spends most of its time outside the forex trading range, but there's more to it than that - these lines are actually very important in determining the state or sentiment of the forex market. Basically, when the forex market is between the lines, it is in an undecided state (i.e a forex trading range). If it is above the 5/8 line then the forex market can be considered bullish, likewise below 3/8 we are in a bearish forex market. Hence 5/8 is a great support level for re-entering a long trend and 3/8 for short.
A break of these lines can be very important. For example- If the market has been above 5/8 for a period of time but breaks below, that is a sign of bullishness fading. A drop to 4/8 almost always follows, and at that point 5/8 becomes significant resistance, because a break back above it would represent a re-establishing of the bullish scenario which had just previously failed.
If the forex market does indeed re-test 5/8 and fail, that confirms that the bullish sentiment has pretty much gone and an attempt at a move to 3/8 can be expected. If the forex market then breaks below 3/8, it has definitively turned bearish - and 3/8 then becomes strong resistance as a break back above would represent another change in sentiment, this time back to indecision.
Note that sometimes the re-test doesn’t occur and the market will break one forex trading range line and head straight for the other!
People often ask what timeframe to use Murrey on - but I use it on almost all of them. I have 1m/5m/30m/1h/4h charts on-screen with murrey lines. When you understand more about the forex market context murrey can give you, it's useful to have them all up as it can give good clues about where the forex market is likely to head.
A good example would be a forex trade I did a while ago which used nothing but murrey lines to get me in. Now I'm doing this from memory so it may not be totally accurate, but will still give a good idea of what I'm on about (I hope!) :)
Cable had bounced strongly off the 0/8 line on the 4h chart, a move targeting 2/8 (according to the forex trading strategy above), which was at 1.8250.
When it started approaching that level, I looked at the 1h chart, which had broken above it's 3/8 line, suggesting a move to 4/8 was coming. 4/8 was also 1.8250.
When it got to there, I dropped down to the 5min chart to "zoom in" on the action a bit more, and saw that cable had broken above 3/8, retested and bounced off, targeting at least 5/8, which was also 1.8250 - it then broke this and went to 6/8 at 1.8265
By this time the upward move was running out of steam - the 4h and 1h targets had been hit, and the 5min had made a sizeable up-move and overshot the target by one level, suggesting it may need to pause and retrace a little.
When the price hit that 6/8 at 1.8265 I dropped down to the 1min chart to try to pick the exact entry for the reversal, and I saw that the 7/8 (stall and reverse) line was at 1.8272. In the context of what the other timeframes were saying, it seemed highly likely that if the forex market hit this level it would bounce straight away.
The forex market went up to 1.8272 exactly then bounced off, giving me a +50 trade!
So that's how I use murrey math - to give context on what the market is doing and where it might go. I think it's important to have all the timeframes up as once you get used to it they give great info, and sometimes when they all say the same thing you don't need much else!
** As I write this I've just closed a cable short (from 1.7792 - 0945am UK time, closed 1.7777 at 0957), which was signalled well enough by divergences, price channels, moving averages etc.
But a great confirmation for me was the fact that when I entered the forex trade, the 5min forex chart had risen up to test the 3/8 line at 1.7792 - as I said earlier if market is below this it represents strong resistance because it means a change in sentiment. Simultaneously, the 1min chart was on +1/8 (extreme overshoot), which meant there was not much room above and a bounce off was likely.
For the exit there were again good divergence/boll/price channel/pivot forex signals and the confirmation for me was the 1min chart sitting just above the 5/8 line at 1.7769 - strong support because it would have meant a change from bullish to undecided sentiment. I took the exit there because in my view the forex market was short-term bullish, having risen 80 points in an hour, so that level was likely to hold as support.
** update again – I then reversed to long (at 1.7776 – 10am) with the target for the trade at 1.8222, which has just been hit, because:
The 1min bullish scenario was intact after that 5/8 line held
If price broke above the 5min 3/8 the target would be 4/8 at 1.8222
Right down at the bottom (1.7723) cable had bounced off 1/8 a move which targets… 4/8!
More forex market Searches:
Forex Trading - ATCF forex trading System
ATCF forex trading System
“Adaptive forex method of posteriority for tendency and tradable circle”. This forex trading system created on basis of modern technologies of spectrum forex analysis of markets consisted of necessity of the set of forex indicators synthesized with the help of the digital filter, necessary for professional analysis forex trading of market.
At this forex trading system I work on real account in forex broker Alpari from September 2003.
The forex trading system represents a set of forex indicators for Metatrader. They are very simply build into point-of-sale terminal and join to any forex charts by clicking one button.
The set of forex indicators are below on the picture. So:
FATL (Fast Adaptive Trend Line) “fast” adaptive trend line turns out with use of digital filter of low frequency (the brown line on the price diagram).
SATL (Slow Adaptive Trend Line) “slow” adaptive trend line turns out with the help of digital filter of low frequency of the other order (the blue line on the price diagram).
Analogues FATL and SATL among famous technical instruments do not exist.
RFTL - Reference Fast Trend Line (the red line).
RSTL - Reference Slow Trend Line (the blue line).
RBCI (Range Bound Channel Index) limited on the stripe channel index calculated with the help of band filter (the second indicator below).
FTLM (Fast Trend Line Momentum) and STLM (Slow Trend Line Momentum) show the rate of change (downfall or advance) of FATL and SATL (the most lower indicator in the window, green and red lines).
PCCI - Perfect Commodity Channel Index (the third indicator below).
So – the main principles are the following:
- to sell only in the direction of dominating tendency the direction of which is determined by “slow” adaptive trend line SATL;
- to include the dynamic characteristics of “fast” and “slow” trend represented by forex indicators FTLM and STLM;
- to use information about that in what region of values (neutral, outbided, oversold, local maximum or local minimum) the sum of dominating market circle is situated (RBCI index);
- to consider forex trading signals of forex trading oscillators secondary in cases when forex trend indicators testify to pronounced bearish or bullish tendencies;
- to consider forex trading signals of forex trading oscillators basic in cases when trend indicators give warning of absence pronounced tendency; to use flex forex trading system of protective stop-order based on the statement of RBCI, PCCI indexes and values of “fast” forex market fluctuation.
The main rules of interpretation indicated above instruments are the following;
- growing SATL line testify to bullish forex trading trend on the forex trading market;
- the point of the beginning of turn bearish forex trend is considered the point of local minimum SATL;
- the point of the end of the turn of bearish forex trend is considered the point in which the sign STML changed from minus into plus;
- the falling SATL line testify to bearish trend on the forex trading market;
- the point of the beginning of the turn bullish forex trend is considered the point of local maximum SATL;
- the point of the end of the turn bullish forex trend is considered the point in which the sign STLM changed from “+” into “-“;
- close to the horizontal form SATL testify to the neutral tendency.
STLM interpretation demands a special attention.
- positive STLM value testifies to bullish trend and negative – bearish tendency. --STLM is a forward forex trading indicator;
- the local minimum STLM is always precede the local minimum SATL;
- the local maximum STLM is always precede the local maximum SATL;
- the achievement of STLM of its extreme points is necessary but is a insufficient condition of achievement of curve SATL of the top or bottom;
- the growing STLM at the growing SATL testifies to acceleration of bullish forex trading trend;
- the horizontal and the positive STLM at the growing SATL testify to established bullish forex trading trend;
- the bigger absolute value of STLM the bigger potential forex bullish trend has;
- the falling STLM at the falling SATL testifies to acceleration of bearish forex trend;
- the horizontal and the positive STLM at the growing SATL testify to the established bearish forex trend;
- the bigger absolute value of STLM the bigger potential bearish trend has;
- the growing “fast” trend line FATL at the falling “slow” line SATL testify to the strong bearish trend on the forex trading market;
- the growing line FATL at the falling line SATL testify either to bullish correction at the bearish trend or to the forex trading consolidation;
- the falling line FATL at the growing line SATL testify either to the bearish correction at the bullish forex trend or to the consolidation;
- the beginning or the renewal the achievement in the one direction of the lines FATL and SATL signal either about the turn of the tendency or about the end of correction and renewal the achievement of prices in the direction of SATL.
PCCI. It is an forex trading indicator showing the degree of the discrepancy with the mathematical waiting price. In other words, if it bigger than 1it is necessary to wait the correction down or to suppose at the damages of the other forex trading indicators. In any case it is need to strain. If PCCI less than 1 then accordingly vice versa.
In general I think that this forex trading indicator must be considering only on the forex trading, it is really informative there. On the rest time-frames is unlikely. On my opinion less than on the 4-hour forex charts there is no sense to look. If STLM, FTLM are going into the one side it is better do not play against them.
If STLM directs to the up (down) we play only up (down). We add at the fast forex trading indicators FTLM, RBCI from the extreme position to the down (up).
“Adaptive forex method of posteriority for tendency and tradable circle”. This forex trading system created on basis of modern technologies of spectrum forex analysis of markets consisted of necessity of the set of forex indicators synthesized with the help of the digital filter, necessary for professional analysis forex trading of market.
At this forex trading system I work on real account in forex broker Alpari from September 2003.
The forex trading system represents a set of forex indicators for Metatrader. They are very simply build into point-of-sale terminal and join to any forex charts by clicking one button.
The set of forex indicators are below on the picture. So:
FATL (Fast Adaptive Trend Line) “fast” adaptive trend line turns out with use of digital filter of low frequency (the brown line on the price diagram).
SATL (Slow Adaptive Trend Line) “slow” adaptive trend line turns out with the help of digital filter of low frequency of the other order (the blue line on the price diagram).
Analogues FATL and SATL among famous technical instruments do not exist.
RFTL - Reference Fast Trend Line (the red line).
RSTL - Reference Slow Trend Line (the blue line).
RBCI (Range Bound Channel Index) limited on the stripe channel index calculated with the help of band filter (the second indicator below).
FTLM (Fast Trend Line Momentum) and STLM (Slow Trend Line Momentum) show the rate of change (downfall or advance) of FATL and SATL (the most lower indicator in the window, green and red lines).
PCCI - Perfect Commodity Channel Index (the third indicator below).
So – the main principles are the following:
- to sell only in the direction of dominating tendency the direction of which is determined by “slow” adaptive trend line SATL;
- to include the dynamic characteristics of “fast” and “slow” trend represented by forex indicators FTLM and STLM;
- to use information about that in what region of values (neutral, outbided, oversold, local maximum or local minimum) the sum of dominating market circle is situated (RBCI index);
- to consider forex trading signals of forex trading oscillators secondary in cases when forex trend indicators testify to pronounced bearish or bullish tendencies;
- to consider forex trading signals of forex trading oscillators basic in cases when trend indicators give warning of absence pronounced tendency; to use flex forex trading system of protective stop-order based on the statement of RBCI, PCCI indexes and values of “fast” forex market fluctuation.
The main rules of interpretation indicated above instruments are the following;
- growing SATL line testify to bullish forex trading trend on the forex trading market;
- the point of the beginning of turn bearish forex trend is considered the point of local minimum SATL;
- the point of the end of the turn of bearish forex trend is considered the point in which the sign STML changed from minus into plus;
- the falling SATL line testify to bearish trend on the forex trading market;
- the point of the beginning of the turn bullish forex trend is considered the point of local maximum SATL;
- the point of the end of the turn bullish forex trend is considered the point in which the sign STLM changed from “+” into “-“;
- close to the horizontal form SATL testify to the neutral tendency.
STLM interpretation demands a special attention.
- positive STLM value testifies to bullish trend and negative – bearish tendency. --STLM is a forward forex trading indicator;
- the local minimum STLM is always precede the local minimum SATL;
- the local maximum STLM is always precede the local maximum SATL;
- the achievement of STLM of its extreme points is necessary but is a insufficient condition of achievement of curve SATL of the top or bottom;
- the growing STLM at the growing SATL testifies to acceleration of bullish forex trading trend;
- the horizontal and the positive STLM at the growing SATL testify to established bullish forex trading trend;
- the bigger absolute value of STLM the bigger potential forex bullish trend has;
- the falling STLM at the falling SATL testifies to acceleration of bearish forex trend;
- the horizontal and the positive STLM at the growing SATL testify to the established bearish forex trend;
- the bigger absolute value of STLM the bigger potential bearish trend has;
- the growing “fast” trend line FATL at the falling “slow” line SATL testify to the strong bearish trend on the forex trading market;
- the growing line FATL at the falling line SATL testify either to bullish correction at the bearish trend or to the forex trading consolidation;
- the falling line FATL at the growing line SATL testify either to the bearish correction at the bullish forex trend or to the consolidation;
- the beginning or the renewal the achievement in the one direction of the lines FATL and SATL signal either about the turn of the tendency or about the end of correction and renewal the achievement of prices in the direction of SATL.
PCCI. It is an forex trading indicator showing the degree of the discrepancy with the mathematical waiting price. In other words, if it bigger than 1it is necessary to wait the correction down or to suppose at the damages of the other forex trading indicators. In any case it is need to strain. If PCCI less than 1 then accordingly vice versa.
In general I think that this forex trading indicator must be considering only on the forex trading, it is really informative there. On the rest time-frames is unlikely. On my opinion less than on the 4-hour forex charts there is no sense to look. If STLM, FTLM are going into the one side it is better do not play against them.
If STLM directs to the up (down) we play only up (down). We add at the fast forex trading indicators FTLM, RBCI from the extreme position to the down (up).
More Forex Trading Searches:
forex opportunity inversion en forex managed forex forex killer forex market forex signals forex autopilot
The 4 Hour MOMENTUM TUNNEL FOREX TRADING METHOD
THE 4 HOUR MOMENTUM TUNNEL FOREX METHOD
Step 1.
Create a weekly chart [bar or candle] of a forex currency pair. On this forex chart overlay a 21 EMA [(H + L)/2], and a 5 SMA [(H + L)/2]. Note that the 21 period is an exponential moving average and the 5 period is a forex simple moving average.
Now, look at the difference between the two. As a forex market rises over time on the weekly forex chart, the 5 will rise faster relative to the 21. As the market goes down, the 5 will lose faster relative to the 21. The difference, in forex pips between the two, measures relative momentum of the forex market in real time. Each week, as long as the number of pips keeps rising [SMA 5 – EMA 21] from the previous week, the forex market continues in a bull run. Once a bull run loses forex pips [SMA 5 – EMA 21] from the previous week, it forex signals a medium-term top in the market. Conversely, once a bear run loses pips [EMA 21 – SMA 5] from the previous week, it forex signals a medium-term bottom in the forex market.
This now gives us [with only one week lag] a positive probabilistic model in determining which side [long or short] to initiate forex trades in a defined time period. We are identifying forex market momentum.
Step 2.
Create a 4 hour forex chart [bar or candle] of the same forex currency pair. On this chart overlay a 55 SMA [(H + L)/2], and an 8 SMA [Close only].
Now, look at the difference between the two on your 4 hour forex chart. Since we are using different types of MA’s and a shorter time period with a relatively longer period, the two will cross many times. We call these forex MOMENTUM tunnels.
So, we now take a look at the weekly forex chart again and determine that we are in a bull run. We then take a look at the 4 hour forex chart. We now know that we are looking to long the forex market, and that short positions will not be taken because they have been predetermined to be low probability events for large forex profits.
We now are looking for the 8 SMA to move lower through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from negative to positive. It will do this when the 8 SMA stops losing value in one 4 hour bar and gains in the next. This is the 4 hour bar to initiate new long positions with 3 units [remember: units are whatever trading size you can handle. When you trade bigger, just adjust the size of the unit, not the number of units]. Stops can be placed using forex technicals [support/res/trendline] of the most recent 4 hour bars.
Assuming the forex market starts to go up, we stay long until 1) at some point in time the 8 SMA changes slope from positive to negative, at which point we exit the entire 3 unit forex trade, 2) the market moves up, there is no slope change, and goes to the 144 or 233 fib number from the 55 SMA line, where 1 unit is taken off, 3) the market moves up to the next fib number [233 or 377], again with no slope change, and the 2nd unit is booked.
Let’s now assume that the weekly chart determines we are in a bear run. We will now be looking to initiate new short positions only.
We are looking for the 8 SMA to move higher through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from positive to negative. It will do this when the 8 SMA stops gaining value in one 4 hour bar and loses in the next. This is the 4 hour bar to initiate new short positions with 3 units. Again, stop placement depends on forex technicals of the most recent 4 hour bars.
Assuming the forex market starts to go down, we stay short until 1) at some point in time the 8 SMA changes slope from negative to positive, at which point we exit the entire 3 unit forex trade, 2) the forex market moves down, there is no slope change, and goes to the 144 or 233 fib number from the 55 SMA line, where 1 unit is taken off, 3) the market moves down to the next fib number [233 or 377], again with no slope change, and the 2nd unit is booked.
There will be times when the slopes will change and the 8 SMA will not be above/below the 55 SMA line. In these circumstances we use only 1 ½ units to initiate a trade with the same rules above.
We are implementing this new 4 hour forex method with only 2 filters. The first is on the weekly forex chart. If the difference between the 21 EMA and the 5 EMA is > 500 pips, then the forex pip difference from the prior week must change by more than 10 pips, or just go lower over 2 consecutive weeks, to signal a trend change.
The second filter is on the 4 hour forex chart. If the 8 SMA and the 55 SMA and the forex market price are all within 50 pips or so of each other, we go to forex technicals [breakout] to continue the trade. We do this because, at this juncture, you are more likely to get the 8 SMA jumping up and down 2 or 3 pips every few bars, thus generating a false trade forex signal. It doesn’t happen very often, but when it does, using this filter can save us money, and the forex market isn’t really moving anywhere anyway. Therefore, a breakout of the techs makes sense to initiate a trade, if it’s in the direction you are supposed to be forex trading.
If you now go ahead and make the charts and take a cursory look at the weekly, you should be amazed. The weekly criteria hits every single turn in the forex market within a couple of weeks. The fact of the matter is that the weekly difference of the MA’s TRENDS. It doesn’t change gaining/losing unless the forex trend changes.
The 4 hour chart is equally powerful. A more careful look at the 4 hour will show large 4 hour bar spikes that often change the slope of the 8 SMA. The reason we chose the 8 SMA with close only, is so that we can better estimate in the next 4 hour bar period the price needed to change the slope before the period is over. Many times this will give us a huge profit advantage over waiting until the period is over.
II. IV. FOREX ANALYSIS
The following spreadsheet gives a rough idea of what kind of profitability you are looking at using the forex 4 Hour Momentum Tunnel Method. It is very important to realize what assumptions we used in calculating these numbers. The criteria was as follows:
1) 1) Any trade that looked like less than 100 pips profit we totally ignored,
2) 2) When taking forex profits we ignored fib numbers from the market price and instead used the 8 SMA line if it hit a fib number. We did this because it was much easier to calculate and took far less time than analyzing each bar on every forex chart with every forex pair. Note though, that this REDUCES profitability tremendously over time. The market is much more likely to hit fib numbers than the 8 SMA.
3) 3) Any forex trade that looked like a scratch or a loss, we treated as a loss, and
4) 4) After we summed up all the periods we DOUBLED the losses,
5) 5) We used 3 units on most trades, except 1 ½ units on forex trades where the 8 SMA changed slope and did not cross the 55 SMA. This forex trading signal is somewhat less powerful than the original, so we reduced size accordingly.
III. V. FOREX RISK MODELS
I could write a book on risk models, and it could easily be 500 pages and sell for $100. There are as many models, along with their variations, as there are wannabe forex traders in the world. Instead of going through conservative and aggressive scenarios, I decided just to write about the model we will initially employ. I am not suggesting you use it: I am simply presenting it for your forex information. You must come up with your own risk model.
Unit value: 1 unit = 500,000 base forex currency vs. $US
Trade Size: 3 units per currency forex pair, except 1 ½ units when 4 hour chart filter kicks in.
Filters: Only the 2 mentioned earlier in the file
Stops: Will be based on technicals off of 4 hour forex charts.
Pairs traded: Initially only GBP/USD.
Options: Yes, will write [sell put or call] premium opposite forex trend off of weekly forex chart with 1unit, with trend change triggering covering of positions. We will sell out-of-the-money option [depending on signal, sell calls for bear forex signal – sell puts for bull signal] premium with expiration of 6 – 8 weeks, and look to cover 2 – 3 weeks from expiration at approximately a third of selling price.
Other: May not take off entire position at slight change in slope of 8 SMA on the 4 hour chart. Most likely scenario is to take partial forex profit, with stop based on technicals for remaining position.
IV. VI. WHERE DO WE GO FROM HERE?
I hope most of you reading this file can see how adaptable and flexible this forex method can be to your forex trading style. Even if you choose to trade shorter timeframes, this method can keep you on the right side of the forex market. It should confirm other types of analysis as well. When I sit back and think, I can see a host of scenarios some people will envision and implement. By all means, make the necessary changes to fit your trading style. This is not a one size fits all forex trading method. All anyone should care about is making money, and we think this will definitely help you in that objective.
For newbies to forex, or more conservative forex traders, you can scale back and cherry-pick the best trades. Simply use the model as your forex guide, and take the guesswork and emotion out of forex trading. You will always be buying dips in a bull run, and selling rallies in a bear run, to initiate new positions. You are letting the forex market tell you when it has had its little contra-trend rally/break. That, in essence, is what a MOMENTUM tunnel is all about. It creates a visual space for you to see these contra-trend opportunities as they are being created. When they turn, you can pounce on the forex trade, and now it’s time to continue the medium-term trend. You’re not going to hit every one perfect, but you will definitely get your share if you stay patient and wait for the optimum time. Even if you screw up the entry, the trend will probably make the forex trade a profitable one.
I hope you can see why forex trading MOMENTUM tunnels [4 hour] are better than trading PRICE tunnels [1 hour]. You will have less losing forex trades, and there is no chop around the MOMENTUM tunnel. If the forex market continues to go against the trend, within a very short period of time you will only have 2, possibly 3 losing forex trades before the weekly trend would change. This is a very acceptable tradeoff for the new information being given to you by the forex market: i.e. a weekly trend change. At least for us, this means closing old option positions [at just the right time], and creating new ones [at just the right time].
Remember the old forex trading proverb: price = information. That’s exactly what’s happening when you get a trend change from the weekly forex charts. Of course, remember that there is a lag of 1 week from knowing when the high or low reading comes, because you won’t know until Friday’s close if last week’s reading was the high/low or not.
Let me just add, that forex MOMENTUM tunnels should work particularly well with other financial markets. Stock indices, oil, and interest rates should trade very profitably with the new method. Some of the forex currency crosses [eur/jpy, eur/gbp, eur/chf, eur/cad], in theory, should also work well. Vegas Jr. is going to look at these particular crosses in a few weeks to check them out, so I’ll withhold my opinions on them until he is finished.
More Forex Scalping Systems
Download AUDIO MP3 Forex 4 hrs Trading Methods
Step 1.
Create a weekly chart [bar or candle] of a forex currency pair. On this forex chart overlay a 21 EMA [(H + L)/2], and a 5 SMA [(H + L)/2]. Note that the 21 period is an exponential moving average and the 5 period is a forex simple moving average.
Now, look at the difference between the two. As a forex market rises over time on the weekly forex chart, the 5 will rise faster relative to the 21. As the market goes down, the 5 will lose faster relative to the 21. The difference, in forex pips between the two, measures relative momentum of the forex market in real time. Each week, as long as the number of pips keeps rising [SMA 5 – EMA 21] from the previous week, the forex market continues in a bull run. Once a bull run loses forex pips [SMA 5 – EMA 21] from the previous week, it forex signals a medium-term top in the market. Conversely, once a bear run loses pips [EMA 21 – SMA 5] from the previous week, it forex signals a medium-term bottom in the forex market.
This now gives us [with only one week lag] a positive probabilistic model in determining which side [long or short] to initiate forex trades in a defined time period. We are identifying forex market momentum.
Step 2.
Create a 4 hour forex chart [bar or candle] of the same forex currency pair. On this chart overlay a 55 SMA [(H + L)/2], and an 8 SMA [Close only].
Now, look at the difference between the two on your 4 hour forex chart. Since we are using different types of MA’s and a shorter time period with a relatively longer period, the two will cross many times. We call these forex MOMENTUM tunnels.
So, we now take a look at the weekly forex chart again and determine that we are in a bull run. We then take a look at the 4 hour forex chart. We now know that we are looking to long the forex market, and that short positions will not be taken because they have been predetermined to be low probability events for large forex profits.
We now are looking for the 8 SMA to move lower through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from negative to positive. It will do this when the 8 SMA stops losing value in one 4 hour bar and gains in the next. This is the 4 hour bar to initiate new long positions with 3 units [remember: units are whatever trading size you can handle. When you trade bigger, just adjust the size of the unit, not the number of units]. Stops can be placed using forex technicals [support/res/trendline] of the most recent 4 hour bars.
Assuming the forex market starts to go up, we stay long until 1) at some point in time the 8 SMA changes slope from positive to negative, at which point we exit the entire 3 unit forex trade, 2) the market moves up, there is no slope change, and goes to the 144 or 233 fib number from the 55 SMA line, where 1 unit is taken off, 3) the market moves up to the next fib number [233 or 377], again with no slope change, and the 2nd unit is booked.
Let’s now assume that the weekly chart determines we are in a bear run. We will now be looking to initiate new short positions only.
We are looking for the 8 SMA to move higher through the 55 SMA. When it does, we carefully watch and notice when the SLOPE of the 8 SMA changes from positive to negative. It will do this when the 8 SMA stops gaining value in one 4 hour bar and loses in the next. This is the 4 hour bar to initiate new short positions with 3 units. Again, stop placement depends on forex technicals of the most recent 4 hour bars.
Assuming the forex market starts to go down, we stay short until 1) at some point in time the 8 SMA changes slope from negative to positive, at which point we exit the entire 3 unit forex trade, 2) the forex market moves down, there is no slope change, and goes to the 144 or 233 fib number from the 55 SMA line, where 1 unit is taken off, 3) the market moves down to the next fib number [233 or 377], again with no slope change, and the 2nd unit is booked.
There will be times when the slopes will change and the 8 SMA will not be above/below the 55 SMA line. In these circumstances we use only 1 ½ units to initiate a trade with the same rules above.
We are implementing this new 4 hour forex method with only 2 filters. The first is on the weekly forex chart. If the difference between the 21 EMA and the 5 EMA is > 500 pips, then the forex pip difference from the prior week must change by more than 10 pips, or just go lower over 2 consecutive weeks, to signal a trend change.
The second filter is on the 4 hour forex chart. If the 8 SMA and the 55 SMA and the forex market price are all within 50 pips or so of each other, we go to forex technicals [breakout] to continue the trade. We do this because, at this juncture, you are more likely to get the 8 SMA jumping up and down 2 or 3 pips every few bars, thus generating a false trade forex signal. It doesn’t happen very often, but when it does, using this filter can save us money, and the forex market isn’t really moving anywhere anyway. Therefore, a breakout of the techs makes sense to initiate a trade, if it’s in the direction you are supposed to be forex trading.
If you now go ahead and make the charts and take a cursory look at the weekly, you should be amazed. The weekly criteria hits every single turn in the forex market within a couple of weeks. The fact of the matter is that the weekly difference of the MA’s TRENDS. It doesn’t change gaining/losing unless the forex trend changes.
The 4 hour chart is equally powerful. A more careful look at the 4 hour will show large 4 hour bar spikes that often change the slope of the 8 SMA. The reason we chose the 8 SMA with close only, is so that we can better estimate in the next 4 hour bar period the price needed to change the slope before the period is over. Many times this will give us a huge profit advantage over waiting until the period is over.
II. IV. FOREX ANALYSIS
The following spreadsheet gives a rough idea of what kind of profitability you are looking at using the forex 4 Hour Momentum Tunnel Method. It is very important to realize what assumptions we used in calculating these numbers. The criteria was as follows:
1) 1) Any trade that looked like less than 100 pips profit we totally ignored,
2) 2) When taking forex profits we ignored fib numbers from the market price and instead used the 8 SMA line if it hit a fib number. We did this because it was much easier to calculate and took far less time than analyzing each bar on every forex chart with every forex pair. Note though, that this REDUCES profitability tremendously over time. The market is much more likely to hit fib numbers than the 8 SMA.
3) 3) Any forex trade that looked like a scratch or a loss, we treated as a loss, and
4) 4) After we summed up all the periods we DOUBLED the losses,
5) 5) We used 3 units on most trades, except 1 ½ units on forex trades where the 8 SMA changed slope and did not cross the 55 SMA. This forex trading signal is somewhat less powerful than the original, so we reduced size accordingly.
III. V. FOREX RISK MODELS
I could write a book on risk models, and it could easily be 500 pages and sell for $100. There are as many models, along with their variations, as there are wannabe forex traders in the world. Instead of going through conservative and aggressive scenarios, I decided just to write about the model we will initially employ. I am not suggesting you use it: I am simply presenting it for your forex information. You must come up with your own risk model.
Unit value: 1 unit = 500,000 base forex currency vs. $US
Trade Size: 3 units per currency forex pair, except 1 ½ units when 4 hour chart filter kicks in.
Filters: Only the 2 mentioned earlier in the file
Stops: Will be based on technicals off of 4 hour forex charts.
Pairs traded: Initially only GBP/USD.
Options: Yes, will write [sell put or call] premium opposite forex trend off of weekly forex chart with 1unit, with trend change triggering covering of positions. We will sell out-of-the-money option [depending on signal, sell calls for bear forex signal – sell puts for bull signal] premium with expiration of 6 – 8 weeks, and look to cover 2 – 3 weeks from expiration at approximately a third of selling price.
Other: May not take off entire position at slight change in slope of 8 SMA on the 4 hour chart. Most likely scenario is to take partial forex profit, with stop based on technicals for remaining position.
IV. VI. WHERE DO WE GO FROM HERE?
I hope most of you reading this file can see how adaptable and flexible this forex method can be to your forex trading style. Even if you choose to trade shorter timeframes, this method can keep you on the right side of the forex market. It should confirm other types of analysis as well. When I sit back and think, I can see a host of scenarios some people will envision and implement. By all means, make the necessary changes to fit your trading style. This is not a one size fits all forex trading method. All anyone should care about is making money, and we think this will definitely help you in that objective.
For newbies to forex, or more conservative forex traders, you can scale back and cherry-pick the best trades. Simply use the model as your forex guide, and take the guesswork and emotion out of forex trading. You will always be buying dips in a bull run, and selling rallies in a bear run, to initiate new positions. You are letting the forex market tell you when it has had its little contra-trend rally/break. That, in essence, is what a MOMENTUM tunnel is all about. It creates a visual space for you to see these contra-trend opportunities as they are being created. When they turn, you can pounce on the forex trade, and now it’s time to continue the medium-term trend. You’re not going to hit every one perfect, but you will definitely get your share if you stay patient and wait for the optimum time. Even if you screw up the entry, the trend will probably make the forex trade a profitable one.
I hope you can see why forex trading MOMENTUM tunnels [4 hour] are better than trading PRICE tunnels [1 hour]. You will have less losing forex trades, and there is no chop around the MOMENTUM tunnel. If the forex market continues to go against the trend, within a very short period of time you will only have 2, possibly 3 losing forex trades before the weekly trend would change. This is a very acceptable tradeoff for the new information being given to you by the forex market: i.e. a weekly trend change. At least for us, this means closing old option positions [at just the right time], and creating new ones [at just the right time].
Remember the old forex trading proverb: price = information. That’s exactly what’s happening when you get a trend change from the weekly forex charts. Of course, remember that there is a lag of 1 week from knowing when the high or low reading comes, because you won’t know until Friday’s close if last week’s reading was the high/low or not.
Let me just add, that forex MOMENTUM tunnels should work particularly well with other financial markets. Stock indices, oil, and interest rates should trade very profitably with the new method. Some of the forex currency crosses [eur/jpy, eur/gbp, eur/chf, eur/cad], in theory, should also work well. Vegas Jr. is going to look at these particular crosses in a few weeks to check them out, so I’ll withhold my opinions on them until he is finished.
More Forex Scalping Systems
Download AUDIO MP3 Forex 4 hrs Trading Methods
Friday, August 15, 2008
Duke’s Trading Rules
Duke’s Trading Rules
“Common Sense Trading”
“Common Sense Trading”
· Use Good Money Management – This will determine your success! The old saying, “You got to know when to hold them and when to fold them” applies here.
· Know Fundamentals – You need to know some basic fundamentals about the company before you purchase the stock. Especially, be aware of what sector the stock is in.
Any News Is Old News – By the time any news about a stock gets to those of us away from the trading floor, it has already been acted upon. Don’t trade news about a stock unless you’re in the trading pits or daytrading with timely current information.
· Market Advice – By in large, stock market advice is worthless! The “experts” on CNBC are wrong 80% of the time, by a recent study. It’s Your Money…Make Your Own Decisions!
· Plan Your Trade…Trade Your Plan – No trading or money management plans…DON’T TRADE!
· Buy Quality Stocks – Quality stocks have consistent earnings and reasonable P/E ratios. Only buy quality stocks, but I usually buy or sell the index stocks (QQQQ or DIA). The Market Internals and Market Sectors help, but I always trade the direction of “The Market Bias”.
· Let The Market Tell You What To Do – No one knows the direction of the market, but the market internals, sectors and especially the bias indicator will give you advance notice.
· The Trend Is Your Friend – Trade with the market and stock’s trend… PERIOD! PERIOD! PERIOD!!!!!!
· Use Market Internals and Sectors – Market Internals and Sectors provide a HUGE CLUE as to what is ahead for the market! When the market internals and sector agree with the individual stock indicators it is suggesting a profitable direction. It is wise to pay attention!
· Use the Market Bias to enter or stay with a position – the Market Bias will give a pretty clear view of the general market direction. I always enter the market when the Market Bias changes and stay with this position, with a stop under the market, until the Bias changes.
· Trade Liquid Stocks – Liquid Stocks are those that have trading volume so they can be entered or exited very close to the expected price. That is why I trade the index stocks.
· Buy When Oversold – When the stock has already made an upside move and gets “overbought”, it is not smart to enter this stock until it corrects or consolidates at a lower level. Sometimes there are signals to enter a stock at an overbought or oversold condition. This stock is a definite PASS when you want to buy it when it is overbought or sell it when it is oversold.
· Using Historical Data – Data that has happen in the past, whether it is 1 minute or 6 months, it is historical data. All market indicators are based upon historical data. Just remember that it only suggests a higher probability of a certain possible direction… nothing more.
· Know When to Buy or Sell – Develop your trading plan that meets your style of trading. A good trading plan will help tell you when to buy or sell.
· Adding To A Position – The bottom line is NEVER, and I mean NEVER, add to a position, as there are many other stocks that offer a better risk/reward ratio. Averaging up or down is not a smart move. Either stay with the position or be out of it. Adding your resources to a “losing position” only limits your returns. Your capital can ALWAYS be put to better a use in other stocks.
· Indicators Just Add Probability - Trading is all about the probabilities of the stock moving in a direction that we can predict. When several indicators agree on a stock, the probability of it trading in the planned direction has increased considerably, but there are no guarantees that the stock will perform as expected.
· Understand Buy and Hold Strategies - Buy and HOLD is OK if the stock is trending as it was expected, but Buy and FORGET, is just plain STUPID! Manage your stock holdings for profitable performance and risk… That’s how consistent money is made in the market!
· Short Positions Are Even Better – We have been taught that Long positions are the only way to invest, but shorting a stock makes more money quicker. Learn to short the market. Because of the “uptick” rule, it makes sense to use the ETF (Exchange Traded Funds), such as DIA, QQQQ, SMH or SPY for short positions.
· When In Doubt… Get Out – If the indicators are giving mixed signals and the stock is not reacting the way it was expected, the safe position is on the sideline.
· Market Timing - Entering a stock at the correct time is the biggest factor, after money management and a trading plan that will determine your success. Use Market Internals, Market Sectors, Market Bias and the Stock’s Indicators to help in this process.
· Keep An Open Mind - Market conditions can change rapidly and you must too! Be ready to change your mind or you will be left in the dust.
· Use Stops! - Money Management is the difference between a very successful trader and one that is broke. If you don’t use stops, you do not have a money management plan and your trading capital investment will be lost.
· Let Profits Run, But Protect It! – When in a Long position and the market indicators change, place a stop under the low of the day and leave it to protect your profits or minimize your loss. When Short, place the stop above the high of the day.
· Trade a Basket of Stocks - No one can predict where the price of a stock will go, so you must have several stocks in your portfolio that have agreed with your entry criteria position and stay with these until there is a reason to exit them.
· Round Lot Orders – Use “Round Lot Orders” so the traders don’t think you’re a rookie.
· When To Trade - If you can’t focus on what you are doing when you’re trading… DON’T TRADE!
· What The Majority Knows – Bottom Line is VERY LITTLE. In most cases “the majority is usually wrong”.
· Use Good Money Management - Develop a sound money management and trading plan! This is my MOST IMPORTANT rule and is my first rule and last trading rule. Trading has many “risks”, so manage these risks. Let profits run…but cut your loses quickly, before it materially damages your trading account or gets to your mind. There will always be another opportunity to purchase stocks that have a much better risk/reward ratio. If you run out of money or get “hard headed” with a position, you will miss many profitable opportunities!
forex market trading forex market trading
Monday, August 11, 2008
Easy GBP/USD Forex Trading System
Forex trading System
At 5PM EST:
1- Close out any open positions
2- Cancel any unexecuted orders
3- Set an Entry Buy order 1 forex pip above previous high
4- Set an Entry Sell order 1 pip below previous low
5- Set stops and limits using the following guidelines: 50 pip profit target, 25 pip stoploss if ADR ABOVE 200 40 pip profit target, 20 stoploss if ADR BETWEEN 175 and 199 30 pip forex profit target, 15 stoploss if ADR BELOW 175
Do no forex trade if ADR is below 100
How to calculate ADR (Average Daily Range)
It may be easiest to use an excel spread sheet for this.
Take the H/L for each day, for the past 14 days.
For each day list the amount of pip's between the H and L
Example. H = 1.5623 L = 1.5586
5623 – 5486 = 137
Add the total amount of pip's for all 14 days and divide it by 14.
This will give you the average daily range.
Average pips: +250 – 300 /month.
Max drawdown since 2004:175 pips.
At 5PM EST:
1- Close out any open positions
2- Cancel any unexecuted orders
3- Set an Entry Buy order 1 forex pip above previous high
4- Set an Entry Sell order 1 pip below previous low
5- Set stops and limits using the following guidelines: 50 pip profit target, 25 pip stoploss if ADR ABOVE 200 40 pip profit target, 20 stoploss if ADR BETWEEN 175 and 199 30 pip forex profit target, 15 stoploss if ADR BELOW 175
Do no forex trade if ADR is below 100
How to calculate ADR (Average Daily Range)
It may be easiest to use an excel spread sheet for this.
Take the H/L for each day, for the past 14 days.
For each day list the amount of pip's between the H and L
Example. H = 1.5623 L = 1.5586
5623 – 5486 = 137
Add the total amount of pip's for all 14 days and divide it by 14.
This will give you the average daily range.
Average pips: +250 – 300 /month.
Max drawdown since 2004:175 pips.
Here is BT Forex trading strategies. Best Forex Trading Signals
BT Forex trading strategies
I've been using this strategy for about 6 months now and have been achieving very high results with it, aroung 40 to 100 pips a day.
OK, here it is:
Timeframe: 1hour works best, but could use on 30 min.Indicators: Braintrend 1, Signal1, Stop1, and Stopline1, Signal Close Alert 1t3 Aroon Horn Smoothedt3 Aroon Horn Oscillator: line drawn at zeroTrend Trigger Modifed version 3 (changed parameters to 50 and -50, instead of 100 and -100)
Entry Long Signal: 1. Blue bar completed with Braintrend signal dot (alert will sound and tell you the entry with stop placement). Do not enter yet.2. Aroon Horn Smoothed lines will cross each other. Do not enter yet.3. Trend Trigger will cross above the +50 line (must be crossing or already above +50 line to signal safe entry). Do not enter yet.4. We enter only when the Aroon Horn Oscillator crosses up over the zero line. (only if all of the other indicators agree)
Entry Short Signal: Opposite above.
Waiting until the Aroon Horn Oscillator crosses the zero line will ensure that the trend is in strength. It also coordinates quite often with the minor retracement that happens after the initial price move. The Aroon Horn Smoothed indicator is an early signal but a retracement could happen that is why we wait for the Oscillator to signal.
I use to just jump right in when I first started using BT to try and get every pip but soon realized that there were many false signals given and one could have many whipsaws along the way. Using this strategy will eliminate many of those whipsaws and allow one to pull the trigger more confidently.
Important note on the Trend Trigger, there has been some discussion about it curve fitting past results to fit ideal parameters. That is why I say wait until the Aroon Horn Oscillator crosses zero to verify the established trend. The market is range bound when between the +50 and -50.
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I've been using this strategy for about 6 months now and have been achieving very high results with it, aroung 40 to 100 pips a day.
OK, here it is:
Timeframe: 1hour works best, but could use on 30 min.Indicators: Braintrend 1, Signal1, Stop1, and Stopline1, Signal Close Alert 1t3 Aroon Horn Smoothedt3 Aroon Horn Oscillator: line drawn at zeroTrend Trigger Modifed version 3 (changed parameters to 50 and -50, instead of 100 and -100)
Entry Long Signal: 1. Blue bar completed with Braintrend signal dot (alert will sound and tell you the entry with stop placement). Do not enter yet.2. Aroon Horn Smoothed lines will cross each other. Do not enter yet.3. Trend Trigger will cross above the +50 line (must be crossing or already above +50 line to signal safe entry). Do not enter yet.4. We enter only when the Aroon Horn Oscillator crosses up over the zero line. (only if all of the other indicators agree)
Entry Short Signal: Opposite above.
Waiting until the Aroon Horn Oscillator crosses the zero line will ensure that the trend is in strength. It also coordinates quite often with the minor retracement that happens after the initial price move. The Aroon Horn Smoothed indicator is an early signal but a retracement could happen that is why we wait for the Oscillator to signal.
I use to just jump right in when I first started using BT to try and get every pip but soon realized that there were many false signals given and one could have many whipsaws along the way. Using this strategy will eliminate many of those whipsaws and allow one to pull the trigger more confidently.
Important note on the Trend Trigger, there has been some discussion about it curve fitting past results to fit ideal parameters. That is why I say wait until the Aroon Horn Oscillator crosses zero to verify the established trend. The market is range bound when between the +50 and -50.
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Free forex buy and sell indicator. Forex trading System (Metatrader4)
Hi fellow traders,
I'm using the Forex Moneymaker system for the last 9 months and following it religiously for the last 4 months. It's a trend following system.
The Key components are 4 Indicators.
Heikin-Ashi : Visual Confirmation of A Trend or Consolidation. Confirms also when market is in a Range.
Stochastic & EMA34 : Indicates market momentum.
Aroon: Confirms Trend.
ATR : Indicates current market volume.
I am getting around 30 to 150 pips daily on eur/usd, usd/chf and gbp/usd. I get about 1, 2 or 3 signals in a 24 Hour period.
this is not the best out there, But worked for me so far. For the last 1 month market is rangebound. But with this system I'am still getting about 30~100 pips daily on each of the eur/usd, usd/cnf & gbp/usd.
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