In this article, we will look at a simple Forex trading strategy which is simple to understand, easy to apply and makes huge gains. This strategy will always work and if you learn it correctly, you will soon be making big trading profits - let's take a look at it in more detail.
The simple Forex trading strategy we are going to use is based on swing trading, so let's look at the logic its based on.
Traders always push prices to far to the upside, when greed is present and to far to the downside, when fear is present. You will see short sharp price spikes on any chart which reflect these emotions. These price spikes never last long and prices soon come back to more realistic levels.
The aim of the swing trader therefore is - to sell into greed and buy into fear and make profits. Now let's look at some simple steps you can follow to do this. We will look at how to do this, by selling into greed but the same principles apply in an oversold market.
1. Look for a short sharp price move to the upside and then check how overbought the market is
To check how overbought a market is look at some momentum oscillators and they will show you how overbought the market is in historical terms. Good indicators to use are - the stochastic, the MACD and the RSI. There all easy to learn so look them up.
2. If the market is overbought, look for a level of resistance above the price you expect to hold and then wait. Wait for the momentum indicators you are following to turn down, while the price continues to rise. This is called divergence and warns of a break back down so, execute your trading signal and go short, with a stop above nearby resistance.
3. Set a target and wait for it to be hit and take profit.
The simple Forex strategy above, will always work because humans will always push prices to far to the upside or downside and these price spikes never last long and therefore, offer the swing trader huge profit opportunities.
You can learn to swing trade quickly and each currency will give you a few good opportunities each month, if you only trade market extremes, you will have the odds on your side and make triple digit profits in around 30 minutes a day. Learn this simple Forex trading strategy and you can enjoy long term currency trading success.
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Apply an Appropriate Forex Strategy While Trading in the Forex Market
Forex strategy helps in optimizing the foreign exchange trading methods. There are numerous methods which deal with the strategies while trading at the forex trading system. The classification is based on various approaches that are followed day to day. The various methods include analysis based on the trends, simple method of calculating averages, candle stick pattern etc.
The method based on the analysis of trends involves the collection of the information about the changes in the value of the stock as an individual or the market as a whole. The trends vary with time; at times they show a sharp increase which produces a pleasing effect on the users. A share with a constant rate of increase in trends is preferred so as to reap huge profits. The changes in the transfer of the stocks and market transactions affect the trends to a large extent. The method based on the averages deals with the categorization of the values based on limiting intervals in time. The interval may be determined based on the user requirements. This method enables in projecting the value of average for fixed time periods. If there is a sudden increase or decrease in the value, then it is depicted in the form of a deviation in the graph.
Additional features of the system:
Care is taken to manage the values not letting them drop below the limiting value. The candle stick pattern helps in projecting the sharp changes in an efficient manner, and allows the user to adjust accordingly. Thus the forex strategy boosts up the performance of the user in stock market. The charges for the system vary from hundreds to few thousands of dollars. These charges are for the courses that are made available as well as on mentor who works on these systems to provide the users with appropriate knowledge. The system may be designed with efficient methods in such manner that it reaches the users easily and is more appealing and attracting for them. By adding necessary videos along with necessary details this feel can be achieved more effectively.
The trading systems also provide live webinar facilities which enable the users in interacting in a better and comfortable way. Practical applications of the trade are also made available to the users which help in gaining live experience of the various factors which influence the market. Several tools such as the indicators of the market value are also used to denote the exact value of the market shares.
It gets feedback from the users after every session so as to enhance it further. Thus the forex trading system enables the users to gain complete knowledge of the forex market. This system plays a vital role in managing the efficient management of the stocks in the share market. They are also user friendly so that it makes learning much easier and more practical.
The method based on the analysis of trends involves the collection of the information about the changes in the value of the stock as an individual or the market as a whole. The trends vary with time; at times they show a sharp increase which produces a pleasing effect on the users. A share with a constant rate of increase in trends is preferred so as to reap huge profits. The changes in the transfer of the stocks and market transactions affect the trends to a large extent. The method based on the averages deals with the categorization of the values based on limiting intervals in time. The interval may be determined based on the user requirements. This method enables in projecting the value of average for fixed time periods. If there is a sudden increase or decrease in the value, then it is depicted in the form of a deviation in the graph.
Additional features of the system:
Care is taken to manage the values not letting them drop below the limiting value. The candle stick pattern helps in projecting the sharp changes in an efficient manner, and allows the user to adjust accordingly. Thus the forex strategy boosts up the performance of the user in stock market. The charges for the system vary from hundreds to few thousands of dollars. These charges are for the courses that are made available as well as on mentor who works on these systems to provide the users with appropriate knowledge. The system may be designed with efficient methods in such manner that it reaches the users easily and is more appealing and attracting for them. By adding necessary videos along with necessary details this feel can be achieved more effectively.
The trading systems also provide live webinar facilities which enable the users in interacting in a better and comfortable way. Practical applications of the trade are also made available to the users which help in gaining live experience of the various factors which influence the market. Several tools such as the indicators of the market value are also used to denote the exact value of the market shares.
It gets feedback from the users after every session so as to enhance it further. Thus the forex trading system enables the users to gain complete knowledge of the forex market. This system plays a vital role in managing the efficient management of the stocks in the share market. They are also user friendly so that it makes learning much easier and more practical.
Aggressive Forex Trading Strategies for Long-Term Profits
The lure of quick money brings many people to the online currency trading scene and most of the people get tied up, trying to make daily profits investing in short time frames, where prices are very volatile.
However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?
Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.
Consider the effect of having a $5000 dollar account and what a 1000 pip successful trade would mean to you. If trading mini-lots you would have a gain of 20% for the year on a single trade. In this economic time when banks are offering 2% interest or less, a return of 20% is fantastic. This trade taken at the right time could have provided nearly 1800 pips.
The Forex market is volatile and you must be prepared for this volatility when attempting this type of trade. Based on a chart describing the above trade the proper point to sell would have been between $1.4000 and $1.3900. Had you taken this trade, you would have had to agonize through nearly two weeks with a 100 pip or greater loss in your account before the market continued in the down trend. However, once through that point the money was there for the taking. Big trades require the guts to have staying power.
Another key to this type trade is to not try and predict the trend, let it develop and then ride the wave. Wait for the breakout, execute your trade and trust in the trend. Remember you are trading for the long-term and that could mean a few months not days. You are searching for big profits. The market is going to correct itself as the trend continues and you must weather these pullbacks with calm. Be careful of trailing stops to close as you will be stopped out on a correction and may have to wait for months in order to find another trade.
In conclusion, you will find that trading these long-term trends will find big profits but the rules of money management go out the window when you have a small account. You may find yourself with more than 30% of your account on the line but you should find that the profits on these trades more than make up for it.
However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?
Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.
Consider the effect of having a $5000 dollar account and what a 1000 pip successful trade would mean to you. If trading mini-lots you would have a gain of 20% for the year on a single trade. In this economic time when banks are offering 2% interest or less, a return of 20% is fantastic. This trade taken at the right time could have provided nearly 1800 pips.
The Forex market is volatile and you must be prepared for this volatility when attempting this type of trade. Based on a chart describing the above trade the proper point to sell would have been between $1.4000 and $1.3900. Had you taken this trade, you would have had to agonize through nearly two weeks with a 100 pip or greater loss in your account before the market continued in the down trend. However, once through that point the money was there for the taking. Big trades require the guts to have staying power.
Another key to this type trade is to not try and predict the trend, let it develop and then ride the wave. Wait for the breakout, execute your trade and trust in the trend. Remember you are trading for the long-term and that could mean a few months not days. You are searching for big profits. The market is going to correct itself as the trend continues and you must weather these pullbacks with calm. Be careful of trailing stops to close as you will be stopped out on a correction and may have to wait for months in order to find another trade.
In conclusion, you will find that trading these long-term trends will find big profits but the rules of money management go out the window when you have a small account. You may find yourself with more than 30% of your account on the line but you should find that the profits on these trades more than make up for it.
Forex Strategy - How The MACD Indicator Can Save You Anxiety
Regardless of your Forex strategy, have you ever entered trades and shortly afterwards wished you hadn't? The information that follows will hopefully cut down greatly on the number of trades that cause you anxiety!
The MACD (Moving Average Convergence Divergence) indicator can add a degree of certainty to your Forex strategy.
As with any indicator, it is too risky to enter trades on this signal alone. However, as we will see, used with caution on higher time frames, it can help confirm you are going in the right direction and that your trade is higher probability.
Taking MACD Apart
Let's take MACD apart and describe it's component parts.
The default MACD on most charting packages sets 2 EMA's (Exponential Moving Averages) at 26 and 12 days.
This is represented by a colored line (color varies according to charting package) which crosses a different colored 9 EMA often termed the trigger line.
When MACD (the 12/26 EMA) crosses above the trigger line (9 EMA) upward momentum is indicated and vice versa.
A center line, or zero line, often called the water line is also shown in the MACD indicator. When MACD is above the water line an upward trend is indicated, when it is below the water line, a downward trend is indicated.
MACD also includes a histogram, small vertical lines that appear above or below the zero line, not unlike mountains and valleys in appearance.
MACD is a lagging indicator which follows price action.
The histogram is an indicator of MACD. So watching the histogram can give you an early indication of where MACD is going. The height of the histogram can be a good momentum indicator.
Using MACD As A Safety Indicator
How can you use MACD to your advantage?
If you want to be very cautious in your Forex strategy, going only for high probability trades, then pay attention to MACD on the 4 hour and 1 hour charts.
Some traders will only enter a trade when the 4 hour and 1 hour MACD's are going in the same direction. This will mean a lot less trades but the ones you do take are likely to be profitable. (Agreement of the two MACD's is used in conjunction with other indicators, not by itself.)
MACD on the 1 hour chart is particularly powerful. If you want to stay out of trouble and avoid trades you might later regret, NEVER trade against the direction of the 1 hour MACD. To do otherwise is not necessarily foolhardy if you know what you are doing.
But for the newer, less experienced trader, only trading long when MACD has crossed up, or short when MACD has crossed down on the hourly chart when your other favorite indicators line up, will make for a higher success rate with your Forex strategy. It will also save you much anxiety and heartache!
The MACD (Moving Average Convergence Divergence) indicator can add a degree of certainty to your Forex strategy.
As with any indicator, it is too risky to enter trades on this signal alone. However, as we will see, used with caution on higher time frames, it can help confirm you are going in the right direction and that your trade is higher probability.
Taking MACD Apart
Let's take MACD apart and describe it's component parts.
The default MACD on most charting packages sets 2 EMA's (Exponential Moving Averages) at 26 and 12 days.
This is represented by a colored line (color varies according to charting package) which crosses a different colored 9 EMA often termed the trigger line.
When MACD (the 12/26 EMA) crosses above the trigger line (9 EMA) upward momentum is indicated and vice versa.
A center line, or zero line, often called the water line is also shown in the MACD indicator. When MACD is above the water line an upward trend is indicated, when it is below the water line, a downward trend is indicated.
MACD also includes a histogram, small vertical lines that appear above or below the zero line, not unlike mountains and valleys in appearance.
MACD is a lagging indicator which follows price action.
The histogram is an indicator of MACD. So watching the histogram can give you an early indication of where MACD is going. The height of the histogram can be a good momentum indicator.
Using MACD As A Safety Indicator
How can you use MACD to your advantage?
If you want to be very cautious in your Forex strategy, going only for high probability trades, then pay attention to MACD on the 4 hour and 1 hour charts.
Some traders will only enter a trade when the 4 hour and 1 hour MACD's are going in the same direction. This will mean a lot less trades but the ones you do take are likely to be profitable. (Agreement of the two MACD's is used in conjunction with other indicators, not by itself.)
MACD on the 1 hour chart is particularly powerful. If you want to stay out of trouble and avoid trades you might later regret, NEVER trade against the direction of the 1 hour MACD. To do otherwise is not necessarily foolhardy if you know what you are doing.
But for the newer, less experienced trader, only trading long when MACD has crossed up, or short when MACD has crossed down on the hourly chart when your other favorite indicators line up, will make for a higher success rate with your Forex strategy. It will also save you much anxiety and heartache!
Advantages of Forex Mirror Platform
Forex mirror trading is a platform used by traders in the Forex market. In this platform, the trader is given the chance to choose the right strategies to cater their personal needs and achieve their goals. In automated trading, the deal is done automatically without you knowing the methods and strategies used to determine if it is the right time to buy or to sell. However, in the mirror platform, you are more knowledgeable on the process itself. In fact, it is you who have the control to use a certain strategy. There are different methods and strategies available in this kind of platform. This platform has been considered as one of the best Forex strategies used by traders in the market since it gives freedom to the investors.
Aside from the main reason that traders can choose what strategy to use, there are more advantages by using the platform. Just like any other platform, it allows investors to have live results and real time performance reports. With this, traders can see the actual performance of the strategy and see how effective the strategy is. In addition, you can set additional criteria in the method such as the currency pairs to be traded. Another very important advantage of using the platform is it eliminates the emotional factors. Emotion is very crucial when it is use during the course of dealing in the market. Lastly, the traders are allowed to use another manual strategy in addition to the automatic system.
In using the platform, extreme experience is not really necessary. However, you have to make some research about the effective mirror strategies and have basic knowledge on how the system works. First, you must consider your goals and the money you wish to invest in the market. After gaining the necessary knowledge, you can try using the strategy. Select the right strategies to accomplish your goals and the mirror process trading begins.
Deciding on what trading platform to use is not easy. You need to study it hard before making a decision. Make sure that your investment will never be wasted. In addition, you need to consider the changes in the market and the various performance of certain strategy. One strategy might not good when shifts happen in the market. Thus, you should also identify the different effects of market change to the method used. For the mirror platform, a certain strategy will stop as soon as you end it.
Aside from the main reason that traders can choose what strategy to use, there are more advantages by using the platform. Just like any other platform, it allows investors to have live results and real time performance reports. With this, traders can see the actual performance of the strategy and see how effective the strategy is. In addition, you can set additional criteria in the method such as the currency pairs to be traded. Another very important advantage of using the platform is it eliminates the emotional factors. Emotion is very crucial when it is use during the course of dealing in the market. Lastly, the traders are allowed to use another manual strategy in addition to the automatic system.
In using the platform, extreme experience is not really necessary. However, you have to make some research about the effective mirror strategies and have basic knowledge on how the system works. First, you must consider your goals and the money you wish to invest in the market. After gaining the necessary knowledge, you can try using the strategy. Select the right strategies to accomplish your goals and the mirror process trading begins.
Deciding on what trading platform to use is not easy. You need to study it hard before making a decision. Make sure that your investment will never be wasted. In addition, you need to consider the changes in the market and the various performance of certain strategy. One strategy might not good when shifts happen in the market. Thus, you should also identify the different effects of market change to the method used. For the mirror platform, a certain strategy will stop as soon as you end it.
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