MetaTrader

HEIKEN ASHI Indicators

These are rules for HEIKEN ASHI Indicators




source : http://www.pipsmaker.com

SKYDART system trading

SKYDART system trading opening a position

1. Watch the bar chart 30M
2. When the signal approaches, switch to 15M and carefully open the position
3. Next return to 30M

• FX Sniper’s lines cross

• CCI raises above zero and the dot on line LSMA is green

• Waddah Attar – the green line of the histogram crosses the yellow signal line from below, the yellow line is above the blue broken line; even better if the yellow line is rising.

Closing a position

• FX Sniper’s lines cross and generate a "sell" signal, or both FX Sniper’s lines cross CCI-34.

• The green line of the histogram hids underneath the yellow signal line

The "sell" signal

• everything is reversed compared to the "buy" signal. But Waddah Attar – the red line of the histogram crosses the yellow signal line, the yellow line is above the blue broken line; even better if the yellow line is rising

Reversal or aggressive buy/sell signal

• The signal occurs when after a significant activity there is a sudden reversal

• FX Sniper’s lines cross each other, or both lines cross CCI34 without crossing each other and generate a "buy" signal

• The green or red histogram Waddah Attar HIDES BENEATH the gold signal line – observe the first bar (candle) at which the histogram will hide beneath the signal line and change colour.

• The colour of LSMA dot is consistent with the position being opened (green for long, red for short).

SMA indicator

SMA indicator with following setup :
SMA 2400 Close Represent 4Hr Timeframe Res/Sup
SMA 600 Close Represent 1Hr Timeframe Res/Sup
SMA 300 Close Represent 30Min Timeframe Res/Sup
SMA 150 Close Represent 15Min Timeframe Res/Sup
SMA 50 Close Represent 5Min Timeframe Res/Sup
SMA 5 Close Represent Current direction.

observe price patern.
in addition you can use Daily pivotes points. and 4Hr pivote points.
Observe how price react after touching SMA.
Use SMA as suport and resistance... Same setup works with 1Min Chart.

Here is chart of Gbp/usd. observe how price move between sma.

In addition use Daily pivote and 4Hr pivotes. Daily pivote gives potential support/resistance.
4hr pivotes gives idea what is going on within 4Hr. important thing is catching price pattern pattern and where it is happening. Please try trading with SMA indicator

STEINITZ SYSTEM

1. Heiken_Ashi_Smoothed

1a Input setting are: 2-6-3-2
1b Colors are: Red, blue, red, blue.
1c. Width is: 1,1,3,3
1d. Style is: 0,0,0,0

2. 4 TF HAS Bar
2a Input settings are: 2-6-3-2... 1.0
2b Colors are: Red, blue, red, blue, red, blue, red, blue
2c Width is: 0,0,0,0,0,0,0,0
2d Style is: 0,0,0,0,0,0,0,0
2e Level style is: Silver

3. 4 TF HAS Bar2
3a Input settings are: 2-6-3-2-0 Blue,Red, Black
3b Colors are: Blue, red, blue, red, blue, red, blue, red
3c Width is: 0,0,0,0,0,0,0,0
3d Style is: 0,0,0,0,0,0,0,0
3e Level style is: Silver

You need to set your price chart on "Line charts" (candlesticks will work too) but I prefer line charts since we are dealing with closing prices only and candles with clutter up the chart.

So now you have your charts set-up with the three (3) indicators and you have your pricing set to "Line charts". Let's continue......

1. On the top of the chart you will see the “HAS” indicator. There are only two colors that you will see red or blue. Red for down and blue for up. There is also another candle that you will see from time to time. It is a red body with a blue wick or blue body with a red wick. I’ll go into that later.

2. On the bottom of the chart you will see the “4TF HAS” indicator display four timeframes off to the right side of the indicator. If your platform is set to 5M you will see 5M, 15M, 30M & 1Hr. You can also confirm the TF's just over the indicator itself which helps if you can't see the right side of your screen for whatever reason.

3. On the bottom of the chart we also have the “4TF HAS Bar2” which overlaps the other “4TF HAS Bar” indicator to enable a mixed color bar (bar with a dot in the middle) to display when they occur naturally. Don’t worry we will discuss that later. Thanks go out to “Mouteki” for his help with a modification to this indicator which he named the “4TF HAS Bar2”.

THE RULES FOR ENTERING

Let’s take the 5M TF as our example.

1. Look at the lowest row which is the 5M TF. If the bar directly above the 5M bar is also blue you take the trade long. The best time to enter on ANY TF is just after you see an opposite colored bar on as many TF’s as possible. In this example it’s best to enter after you have seen some red bars on the lowest TF. If you saw red bars on all 4 TF’s just prior to entering long this makes for a better trade. The reason for this is you want to enter at the beginning of a new move or time cycle. If you entered on a blue/blue candles (5M/15M) just after seeing just one row of red candles on the 5M TF, it is possible and highly likely that you are not taking the beginning of a New 5M trend. Either way the entry is ok to take. I mention this only to enlighten you as to what makes for a better entry which will produce more PIPS since you will have gotten in early.

2. Now you have entered and you are on the 5M/15M cycle. Your job now is to sit tight and do nothing until you see your first red candle on the 5M TF. Once this has occurred you will be on alert status since the trade is starting to backfill. In other words some possible profit taking has occurred. But do nothing. Two things will happen at this point forward.

2a. You will see some more red 5M bars, then as the market recovers you will get into blue bars once again or

2b. You will see more red 5M bars and then the 15M row will display it’s first red bar.

In the case of 2a you just continue watching and do nothing. In the case of 2b you wait for the close of the 15M bar and then switch the TF of the MT4 platform to the next higher one. In this case that would be the 15M. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and a blue bar on the 30M TF you are safe to continue the trade. Remember we are always talking about the bar directly on top of the other bar.

3. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and red bar on the 30M TF you exit immediately. Remember we always perform ALL functions with a close of bar.

4. So now assume we are clear to stay in on this trade. So are job is to monitor the 15M/30M TF. Again we stay in the trade as long as the 15M stays blue. If it turns red you perform the same function as before. Do nothing if the 15M is red and the 30M is blue. If the 15M and the 30M are both red get out immediately (at the close).

5. Now this can go on for a long time. I will be attaching a trade on the forum that started with the 5M TF and continued to the 1hr/4hr. I just looked at the trade I will be posting that follows this word doc and I would still be in. Lot’s of PIPS were made by staying in and not exiting until the rules tell you to do so.

EXITS

1. I have always said that exits are the hardest part to any trading method. Not just this one but any method. The reason is it is hard to predict the beginning of a trend or the end of a trend. You can see clearly when you are somewhere in the middle.

2. I have two schools of thought that can be used mechanically. One exit is risky and one is less riskier. With risk comes the potential to adjust how much profit you are trying to achieve. I will let the reader decide how much risk/reward they feel they want to manage.

3. When I talk about risk I am referring to how much potential profit one is willing to give back as a trade off for staying in the trade longer.

4. Exit rule #1 (bigger risk)

4a Exit on ANY TF when the lowest and next higher TF both show the opposite color from the original trade. When long you would exit if the lowest TF and next higher TF both are red.

It should go without saying that you reverse whatever I am saying if you take the opposite trade direction.

5. Exit rule #2 (less riskier)

5a Exit on ANY TF when the lowest TF bar changes to an opposite color from the original trade. When long you would exit if the lowest TF bar is red ignoring the upper TF’s.

6. Keep in mind that if you exit on this less riskier method you can always get back in later after the lowest TF bar changes back to the original color based off of the original trade. I say this because you might have exited prematurely to avoid waiting too long for the riskier next higher TF bar to turn red. I will go into another technique that will have it’s own thread. It will be based on what I have touched on here.

7. One of the reasons I have dedicated my time to this thread is for you the reader to help find ways to manage the exits to optimize the ability to keep those hard earned PIPS. I believe we can come up with a filter or something based on resistance or support that can help identify the tops and bottoms more efficiently.

EPILOGUE

That about sums up the strategy that you can use to make more money then you could have imagined. This can be your personal ATM machine. If you like what you have read I would appreciate any and all feedback good or bad. Stay tuned for my next word doc about a style of trading that let’s you enter at anytime once a trend has already been established.

This about Don Steinitz, founder of STEINITZ SYSTEM

My name is Don Steinitz. I am originally from California and moved to Las Vegas in 1984 leaving all behind for the pursuit of my number one

interest “Blackjack”. I was able to make a very good living by counting cards and other methods to obtain an edge over the casinos. Yes I became well know in Nevada as expected but was never arrested or back roomed which to this day escapes me how I was so fortunate. I was also able to take advantage of tilted roulette wheels, sloppy dealers, slot machines that had some minor faults, biased bingo balls and edges in horseracing etc.

I left the game after 23 years to play “No limit” poker since the edge in that game is large enough for the skillful player to make a nice income as well. I also get treated just the opposite as a professional blackjack player who is always looking behind his back and constantly getting escorted out of casinos. I have studied the stock and forex market for about 8 years now and put in about 11,000 hours in front of my computer looking at charts.

This market is by far the toughest game to beat and I am determined to not give up until I find an edge that I can exploit to my advantage. So why would I share this information with you? Because I haven’t been successful prior to finding “Forex Factory” and this indicator. This website is dedicated to serious traders and I was able to stumble on what I believe is an indicator that presents a lot of potential. In the 8 years I have never seen such an accurate way to asses market movements and the ability to capitalize on the beginning of a trend.

Than's a lot :

1. Don Steinitz

2. http://www.pipsmaker.com

Ichimoku Manual

Trend Catching System

This is very simple trading system that anyone can easily master after a little practice on a demo account for some time. The system has a high accuracy rate and TP can be hit most of the time. This system aims at catching the pips when a trend is in the play. The indicators will help you spot these cool periods. Here is a screenshot of the system.

How to setup your charts

1. Compile the BBANDS indicator place it in your experts/indicator folder
2. Use the template and place in in the metatrader/templates folder
3. Apply the template on your chart.

Since the system uses a lot of moving averages, placing them manually can detailing them here can be confusing, so using the template provided here is the best solution. You can always study the setup from your charts directly and investigate into the moving averages and their individidual values. The setup is using 10 moving averages in all.

When to BUY

* When the BBANDS indicator turns BLUE
* When the Blue moving averages cross and go upwards. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the UP move.
* When the Blue Moving averages are above the WHITE CHANNEL
* When the MACD histogram is ABOVE the ZERO line and also ABOVE the RED line.

These are the steps that you need to follow closely to identify a BUY setup. If you stick to these rules, you will end up with green pips most of the times. The major problem occurs when you try to burn one of the rules.

The Takeprofit and Stoploss is at your own discretion. These values depends on the charts on which you are working on. For example on the H1 chart, you should aim at a lower TP( e.g 60pips) and on the H4, you can aim at a higher TP(e.g 100pips+)

Refer to the screenshot above for the buy trading rules.

When to SELL

You open a SELL position exactly when the opposite of the Buy setup occurs which are as follows:

* When the BBANDS indicator turns RED
* When the Blue moving averages cross and go downwards. The two thick blue moving averages need to be some distance from each other and not stuck together. This indicator that there is momentum in the DOWN move.
* When the Blue Moving averages are below the WHITE CHANNEL
* When the MACD histogram is BELOW the ZERO line and also BELOW the RED line.


Refer to the screenshot above in order to get a clear idea on the SELL signal generated by this system. The same rules for the Takeprofit and Stoploss levels apply to the sell as well.

When not to trade

1. You should not be taking any trades when all these rules have not been met.
2. You should not be trading when the Blue moving averages are stuck to one another, this shows that the market is ranging and this system will not make money in ranging markets.

When to CLOSE your trade

Your trades should be closed automatically if you have takeprofit and stoploss in place. However, if you are available to monitor your trades, you can wait for an opposite signal to occur then you close your trade to open the opposite one. This make you catch more pips than in a fixed takeprofit setup. Trailing Stop can also be good, however it should not be too tight as you will be out of the good trades too soon.

Final Words

This system is a neat little system with clear straightforward rules. If you follow them closely, I do not see any reason why you will not end up with a climbing equity curve. However, you will need a few weeks of practice in order to understand how the system acts and reacts to the market changes and get acquainted to it. I hope that you will have a good and enjoyable experience with this trading system. Wishing you lots of luck in your trading. Also, would like to hear from you and benefit from your experience.



Source : http://www.pipsmaker.com

EMA 30

Indicators:
EMA (30), QQE (5), Gann (30), 2 EMA Crossover (13 & 21), 3 EMA Crossover (5,13,21).
Additional tools:
Fibonacci retracement & trendlines.

Buy condition:
13 EMA above 21 EMA, QQE above 50 level.
Entry at 30 EMA (EMA changes every bar, so entry point needs to be updated each bar)
Initial SL level is the 2 EMA crossover arrow or just simply the support/previous low.
Target 121 pips ;P

Sell condition:
The opposite.

Daily Breakout

Daily breakout indicator .Looks very simple right? I add 5, 13, and 21 EMA on the chart above to see the trend. With 10 pips target and high probability I would trade with higher risk per trade and no fixed stop loss. I use the prev. day high and low indicator in the chart above. You can download it

Update Trend Forex

Fibonacci Trader

Download here

The Status of Risk

Investors are anxious to move into higher yield/ higher risk assets and strategies. Forex currencies market trading stocks VIX JPY USD CHF. This is a video to learn how to know the status of risk.

MA crossover

I got this indicator from the metatrader yahoo group. Here is an indicator for you who use MA crossover. The indicator shows red color if the slow MA cross down fast MA and blue color if it is otherwise. The color setting can be change as well as the width. Default setting is MA 12 and MA 26. Okay, feel free to download below.

Download Indicator Metatrader

Debt Consolidation

Let's assume you want to open a small business, home renovations, vehicle down payment, or even to buy a computer as your child's request. But you do not have the money. In fact, the above-mentioned purposes can not seem to be delayed again. If waiting for you to collect the money bit by bit, maybe just this purpose will be bought one two years away. Well, it seems there is no other way. You need to debt consolidation.

Maybe you even begin to consider to finding debt consolidation companies. Then you come to the bank and met with officers (officers who work taking care of the bank credit products known as the accounts officer). The officer said that if you want to get a loan from the bank, you must complete the requirements. One of the conditions is to guarantee that you own property such as houses and cars. Thus, if you happen not to repay the loans, you can submit a house or a car instead of your credit is bad.

You then think, well I already have a house and car. Not bad, so you thought. Okay. You then fill out the application form credit card debt provided to you. You start filling your name, address, occupation, including the value of a house or car you have.

Volatility Illuminated

Book Synopsis

Why is Volatility Illuminated so powerful?

Because Volatility Illuminated unlocks new and innovative information about indicator and information failure, volatility and probability, institutional order flow, mass, force, and energy...

Volatility Illuminated presents durable up-to-the-minute strategies for intraday and swing traders (institutional and retail) including: WVAV - Whistler Volume Adjusted Volatility (assisting VWAP trading), WAVE-PM - Whistler Active Volatility Energy Price Mass, Fibonacci Pitchforks, and Quad CCI. In addition, readers will learn the importance of subset distribution compression, expansion, acceleration, force and mass, all pulled together in a simple, easy-to-understand format. Volatility Illuminated elucidates critical underpinnings of market volatility and price action, which many never discover. Volatility Illuminated is timely, empowering, applicable, and can help traders understand erratic movements within markets…once and for all.

Do you want to know the truth about the financial markets? Mark Whistler tells you the truth, at least his own truth. Volatility Illuminated is a long and dense book (roughly 500 pages) where Mark explains his personal view about the financial markets introducing a new paradigm. So this is not a book to be read in a weekend but to be carefully studied and digested, as there’s a lot of information inside to think about.

Therefore this is not the kind of book for the anxious trader who wants to learn how to make money quickly trading currencies and other instruments, but rather for the trader who wants to learn more about the current paradigm governing the markets and get insight in the main reasons of volatility.

Of course, this is not only a theoretical book, as it includes a lot of strategies based on the paradigm presented by the author. Those traders who love “geometrical” trading methods will find very interesting the combination of Fibonacci retracements and Andrew’s Pitchfork explained in chapters four and five. Traders looking for new strategies based on oscillators may find Quad CCI strategy appealing in chapter six. And for all those quantitative traders out there, the last chapters of the book are riddled with a lot of new ideas to test, most of them relating physics concepts (mass, acceleration, energy) to financial markets. You won’t probably find another trading book explaining what VWAP is and how to use it in your own trading.

There’s also room for criticism in this book: in the first three chapters Mr. Whistler discusses several topics related to financial markets, including why technical indicators don’t work, how the media is able to have influence on our memories or why macroeconomic data calculations are flawed. Also the discussion in chapter seven explaining why stock market indices are not reliable is remarkable, as well as how information has been accelerating these last years.

In conclusion, this is a great book, full of very innovative trading ideas and theories, which will probably open your mind to new views of how financial markets work. Whistler’s writing style is catchy and holds interest, while explanations are very clear and enjoyable. The only flaw I could find is that most of Whistler’s ideas are disseminated along the book, so you may think there’s no common thread until you reach the last chapters and tie it all together. Also I would like to find more real examples to gain a deeper understanding, but it looks like the author intends to sow the seeds that will grow in every trader that reads this book.

PPI Shows Inflation is Still Easing, While U.S. Housing Data Disappoint Markets!

Inflation in the United States continues to show mixed signals, whereas the producer price index signaled inflationary pressures eased in September, as the ongoing weakness in demand levels amid rising unemployment and tightened credit conditions continue to weigh down on prices, meanwhile the housing market is still showing signs of stabilization, as we are yet to see a strong rebound in the housing market activity.

The producer price index declined in September by 0.6% following the prior reported 1.7% rise back in August and well below median estimates for a flat estimate, while compared with a year earlier PPI declined by 4.8% more than the prior and expected estimate of -4.3%, meanwhile, core PPI declined by 0.1% also below median estimates and the prior estimates of 0.1% and 0.2% respectively, while compared with a year earlier core PPI rose by 1.8% down from the prior rise of 2.3% and below median estimates of 2.0%.

prices dropped over a variety of items, whereas gasoline prices dropped by 5.4% in September following the prior huge rise of 23.0% back in August, and consumer goods dropped by 0.7%, which further signals that the ongoing weak demand levels will probably continue to weigh down on the general level of prices and this rather supports the Feds’ projections that core inflation will remain subdued.

However, the outlook of inflation remains a major worry for the Federal Reserve Bank at the moment, as though inflation is still under control over the short term, yet over the long term, the outlook for inflation is a threat, as it’s widely expected that inflation rates will start to soar once the economy regains its health due to the huge increase in money supply as a result of the Feds’ programs.

The U.S. economy started to show signs of recovery during the third quarter of this year, and it’s widely expected now that the U.S. economy started to expand during the third quarter, as activity in the manufacturing, services, and housing sectors seem to be either stabilizing or even rising, however, this doesn’t mean that we are out of the woods yet, as challenges remain.

The housing market in specific has been showing signs that the worst slump for the sector since the Great Depression is coming to and end, as the housing market seems to have hit the bottom, whereas cheap home values in addition to the government’s aid for first time home buyers managed to help the sector and helped in stabilizing activity, yet the housing sector still has a long way to go.

Housings starts rose less than expected in September according to a report released today, whereas housing starts rose by 3,000 to 590,000 units from the prior revised estimate of 587,000 and well below estimates of 610,000, while building permits declined in September to 573,000 from the prior revised estimate of 580,000 and below expectations of 590,000.

The housing market will probably continue to show signs of stabilization over the upcoming period, as we don’t expect activity to start rising over a noticeable pace yet, especially, as rising unemployment and tightened credit conditions continue to weigh down on overall activity including activity in the housing market.

Article source : http://www.fxstreet.com

Three ways to manage risk

This article is taken from the Trader's Journal magazine (April 2009 issue)

The author, Sam Seiden, brings over 15 years experience of equities, Forex, options, and futures trading that began when he was on the floor of the Chicago Mercantile Exchange. He has traded equities, futures, interest rate markets, Forex, options, and commodities for his personal interests for years and has educated hundreds of traders and investors through seminars and daily advisory services both domestically and internationally. Sam has been involved in the markets since 1991 both on and off the floor of the Chicago Mercantile Exchange. He has served as the Director of Technical Research for two trading firms and regularly contributes articles to industry publications. Sam is known for his trading, technical research, and educational guidance.

• One certainty in trading is that losses will occur. Sam Seiden looks at effective ways to manage the risk in trading to enjoy a long and successful career.

Read the whole article

Source article: http://www.fxstreet.com

Two Most Important Questions You Must Answer Before You Trade Forex

As a young graduate who was earning a good starting income many, many years back,I was attracted to trading stocks and shares as a traditional way of investing my hard earned money to try to create personal wealth. Since then, I often meet people who would tell me that right now, opportunities to make money from investing in the stocks and futures market, the forex and commodities markets are much lesser. To them, the golden years of investing are all but over.

But is this really so?

I have gone a long way since my beginning years as a novice trader and investor. Experience has taught me that the markets do not move in a straight line. The market by itself is what is termed " a sum of its parts'. For example, in the stock market, there are stocks that move in cycles that repeatedly manifest their movements in easily trackable cycles, and waves that we term "Elliot waves". Thus, we find a lot of traders utilizing a well known method of trading in the footsteps of the legendary trader WD Gann, who had an uncanny ability to discover the cycles of the market and to forecast the "squaring of time and price".

Experience has also taught me that there are stocks that are non-cyclical as well. So at any one time, there are many stocks and shares that are moving up or trending up, and there are stocks that are in various phases of trending down. Some stocks are cycling up, while others are cycling down and some just are trading within a tight range. With these various movements, there are open opportunities for a trader or investor to put his money into stocks and shares, commodities and forex at any time - because each trading vehicle displays its own price movements in its own particular way. This means, you can invest and trade the markets at any time, in season or out of season!

The second most common question that I encounter as a trader is this :" Just what would be a good way to trade the markets?"

Instead of jumping straight into methods of trading, what is important even before you ever start to learn to trade, is a personal evaluation of your own risk profile. You have to discover your tolerance for risk, which boils down to the amount of capital you are going to employ in your trades, and how much pain you are able to tolerate in the event the trade goes against you and you are in a drawdown, and when you will want to quit the trade in the light of the loss. If you are a conservative trader, then day trading is NOT for you and you may wish to look at long term position trading.

If you are an aggressive trader and like action, day trading and perhaps swing trading may be suitable. It is easy to be blinded by sheer greed at this time, because you can set yourself an unrealistic objective of making a million dollars in trading income when your capital is merely $10,000 and you do not have leverage such as a margin account.Such an objective will likely see you losing all your money because you will need to assume the highest risk....which will be unreasonable risk, and will ensure the rapid depletion of your capital.

Once you have sorted out your own risk profile and understand your self- your ability to take risk against the expectation of profits and gains, then you are poised to take the next step which is to discover the best trading method that is suited to your personal trading profile.

Need more information about trading forex to provide a consistent income? Discover for free how a professional trader creates his 5 figure income by trading forex using 3 powerful proven trading Price-Action trading strategies involving No-Indicators, and how you can personalize these same systems for your own use today. Visit http://1forex-trading.blogspot.com

by Peter Lim

Support and Resistance

Metatrader Indicator

Just want to make sure everyone seen this indicator. It's called "Support & Resistance (barry)" and I really don't know why what 'barry' means..hmm..maybe he is the owner..hmm..
Anyway, can you guess what this indicator can do? It is an indicator that shows.. support anndd.. that's right! it shows resistance too. Now, you might think that I'll give you only one file. Nooo...Instead of one Support & Resistance (Barry) indicator, you can have two. Yes! Two!

Fibo MA Indicator

Metatrader Indicator

Good, Bad and Ugly Chart

Forex Fundamentals & News

In the XLT room, we also accept that there is a plethora of fundamental information and economic news being released each and every day but we don't fall into the trap of basing our trading decisions upon this data. And there is a reason why. Think back to when you first considered trading the Forex markets: Remember how you learned of the leverage you could trade with and the flexibility of a 24-hour market? Do you also remember how you discovered that the Forex market was more transparent than the stock market because there was no such thing as insider trading? Everyone receives the same economic data at the same time, therefore, allowing a much fairer opportunity to trade the news and Fundamentals...or so it seemed. If your experiences of trading are anything like mine (and let's face it, we all go through pretty much the same things at the start of our trading careers), then you soon learned that the market has a habit of doing exactly what the news and Fundamentals suggested it would do one day, only to completely ignore this information on another day and do the complete opposite! Very frustrating indeed, so to be consistent there is a need to ignore the outcomes which could happen and focus on what is actually happening.

After a number of years working to develop my own style of trading, I have taken the route of focusing on the technicals to make my decisions and allowing price action to guide me in the markets and the reason why comes down to a very simple logic. Price itself is the only honest thing I can rely on. The market functions as a discount mechanism where the big money factors the fundamental information and expected news into the current price, ahead of time. The current price is a result of all of the information from the past, from now, and what is expected in the future. All I need to know is where price is in the instant and if it is cheap, then I am an interested buyer; if it is expensive, then I am an interested seller. Even if the Fundamentals line up with the market's price action, I still can't gauge an entry or an exit from this information alone. I need something more and this is where the use of charts and objective Technical Analysis comes into its own. We can never get the news and Fundamentals to line up perfectly with the market's reaction everytime, so the solution is to sit back, stick to the plan and take the guess work out of it. Let's look at some recent examples of market action and Fundamentals.

The Good

Here is an example of some recent price action on AUDUSD

This currency pair has been in a big uptrend for a while now, supported by Australia's stable economic position and also by the rising price of Gold. The nation also made a surprise interest rate hike on Tuesday, October 6th, which further supported this uptrend. So here we have an example of where the Fundamentals supported the market's price action. However, it is also important to note that the origin of the latest rally in the currency pair started when it tested a key area of demand on Friday, October 2nd. This was before the rate hike, at an area where a number of XLT students took this pair long in advance, well before the news and without any knowledge of the upcoming rate increase.

The Bad

Now let's take a look at EURUSD. From September 22nd the pair sold off sharply, supported by various bad economic data from the region including low CPI figures, low consumer confidence and low employment stats. Even a German election didn't help until the market hit an area of demand and erased its losses around the same period of time. A tough one to call for sure; so much easier to just go with the trend until you have a reason to change tactics, like when we hit an area where the pair is cheap and the probability is that it will rise. Or in other words, a point at which demand is objectively greater than supply. No amount of news of Fundamental analysis could have predicted a turn as sharp as this. The best plan is to just trust the price.

The Ugly

And then we have my domestic currency the Pound. I can't really bracket this as anything but a mess right now. We all know that the UK is well over-leveraged, very much in debt and recent figures have shown further declines in the current account, Manufacturing PMI and our economists remain as gloomy as ever. It seems that housing prices have risen a little but nobody is getting too excited about that either and the GBPUSD price action is a true reflection of this. It is ugly to say the least: Stuck in a range between support and resistance with mixed signals and little follow through. Trust me, at the time of writing this article, there are much better things to trade.

All we can do as GBPUSD traders is to wait patiently, set realistic targets and focus on the price action...for now the market is just sitting on its hands and most of the time it pays as an independent trader to do exactly the same when things are this ugly!

In summary, the point I am making is that we can never fully interpret the Fundamentals and news and how these factors will affect price. Of course, every piece of news released should have a predefined impact upon the market depending on its nature, but so often the result is the complete opposite and why should we be surprised? How can any trader in the world today objectively interpret Fundamentals and news if they don't know exactly what every other trader or institution is doing at the same time? This is an impossible task. Rather, it would be far easier to allow the market itself to show you subtle clues as to where it is likely to turn; gather your evidence, take the trade, place your stop and let things be. In reality, the only honest thing in any market is the price, so trade that and that alone. Everything else is pretty much opinion and if the market does not share the same opinion as yours, then you could be in a world of hurt. Something to think about for the future I hope.

Article source: http://fxstreet.com

4 Steps To Swing Trading Success

Metatrader Technical

Swing trading in forex is simple to do and it’s a great way for novice traders to start trading - it’s also fun and a great way to pile up big profits. Let’s look at swing trading in forex and 4 simple steps to help you succeed.

Here are the 4 steps you need to make swing trading a profitable part of your overall forex trading strategy.

1. Valid Support and Resistance

You need to spot it and use it to spot trades.

Generally look for at least 3 tests of support or resistance.

Tests that take place in time frames that are wide apart, tend to be more valid and while 3 is a minimum of tests, the more tests there are the better.

Once you have spotted tests of support and resistance, then its time to execute your trading signal.

2. Confirm

The key with any form of trading and swing trading in forex is no different, is not to simply trade into support and resistance - this wont work.

Why?

Because - you are simply hoping or guessing the levels will hold.

Hoping and guessing, are not a good way to seek profits in any venture and swing trading in forex is no different.

You need to confirm that the levels are going to hold and this means using momentum oscillators.

These can be used to measure shifts in momentum of price.

For example, if prices move towards resistance and turn away with price momentum on your side, you have the opportunity to execute your trading signal in line with this shift and have the odds on your side.

You’re not predicting or hoping – you are seeing the reality of price change on your forex charts and acting on the reality.

Confirming a turn is an essential part of swing trading success.

So what indicators should you use for indicating momentum shifts?

A Great couple of indicators to start with are:

The stochastic and the Relative Strength Index (RSI) There not the only ones but a great place to start – so look them up.

3. Stop and Target

Your stop should be behind the level of support or resistance and you should have a profit target.

When you are swing trading in forex you are seeking smaller FX profits and they can disappear quickly, so have a target to take profits earlier than most people i.e before the text of the next level.

When you hit your target bank it.

The closer the trade comes to the next level, the more the odds of recoil against you are - so bank early.

4. Shop Rates

If you are long term forex trend following the cost of business is low as you are trading infrequently and have bigger profits per trade.

With swing trading in forex, you are trading more often and pips mount up, so shop around and look for 2 pips on the majors.

Another important point to keep in mind when swing trading is:

You want liquid markets so stock with the major currencies such euro, yen and pound, although you can trade the Australian and Canadian dollar as well.

The Best Form Of Trading For Novices

Swing trading is great for novices, as it requires less patience and discipline than long term trend following.

Profits and losses come quickly and you don’t need the patience to sit on trends for weeks or months on end.

Swing trading in forex can be done using just basic support, resistance a few momentum indicators.

This simple method can lead you to currency trading success.

While the above sounds a simple system, keep in mind simple methods work best and are far more effective than complicated forex trading systems, as they are more robust and have less elements to break.

Forex Swing trading is easy and quick to learn, is fun and exciting and best of all can make you big forex profits. So if you are trading forex, consider swing trading and you maybe glad you did.

Article Source: http://EzineArticles.com/?expert=Kelly_Price
http://EzineArticles.com/?Swing-Trading-In-Forex---4-Steps-To-Swing-Trading-Success&id=771958

Crossover Signal Using MA

Metatrader Indicator
MA crossover signal indicator.

It seems that the signal appears at some point that can be use as stop loss level. The signal is 13 EMA and 21 EMA crossover and I haven't try with other MA period and I use 1 hour chart. This is what I saw:


You can see on the right side that the EMAs crossed again when the SL level got hit. Here is another.

Source : http://forex-junkie.blogspot.com

Bar Close Alarm & Fibo Price Indicator

Metatrader Indicator

Here are two indicators that I put on any templates I use. First is Bar Closed Alarm which give sound alarm 2 minutes (adjustable) before a bar/candle closed. It is very useful for any breakout system since most traders will wait for the closed candle and see where it open.

Second is Set Fibo Price indicator. I like to use Fibonacci retracement as support and resistance level but it only shows the percentage. Adding the Set Fibo Price indicator to your chart and the Fibonacci retracement indicator will show the price anytime! Do I sound like I'm selling something? ;P Anyway the credit goes to the person who made those indicators as I can't remember where I got them. You can download it below.


Download Metatrader Indicator