Tag Archives: Forex

Forex Market Preview March 17 2013…market moves with fears of Greece leaving EU

Today’s Forex Market Preview is short but I want to you to pay close attention to how swiftly the market moved with fears of Greece leaving the EU. Several great trade setups in this video.

 

Forex Market Preview February 27, 2013

Happy Thanksgiving from Josh Taylor and the Trade Advisor Pro Team

What is a Japanese Candlestick?

What Exactly is a Japanese candlestick?

Since we have briefly covered candlestick planning analysis in the earlier lesson, we’ll now search inside a little and discuss them more in depth. Let us perform a quick review first.

What’s candlestick Trading?

In older days when Godzilla was still being an adorable little lizard, Japan produced their very own old-fashioned sort of technical analysis to trade grain. You heard right, grain.

A westerner through the title of Steve Nison “discovered” this secret technique known as “Japanese candlesticks”, learning it from the fellow Japanese broker. Steve investigated, analyzed, resided, breathed, ate candlesticks, and started to create about this. Gradually, this secret technique increased in recognition within the 90s. To create a lengthy story short, without Steve Nison, candlestick charts may have continued to be a hidden secret. Steve Nison is Mr. candlestick.

So what are foreign exchange candlesticks?

The easiest method to explain is to apply an image:

candlestick

Candlesticks can be used as any time period, may it be eventually, 1 hour, 30-minutes – anything you want! Candlesticks are utilized to describe the cost action throughout the given time period.

Candlesticks are created while using open, high, low, and close from the selected period of time.

  1. When the close is over the open, a hollow candlestick (usually displayed as white) is attracted.
  2. When the close is underneath the open, a filled candlestick (usually displayed as black) is attracted.
  3. The hollow or filled portion of the candlestick is known as the “real body” or body.
  4. The skinny lines poking above and underneath the body display the high/low range and therefore are known as shadows.
  5. The top upper shadow may be the “high”.
  6. The bottom of the lower shadow may be the “low”.

Trading the Lines

Trading the Lines

Now that you are aware of fundamentals, you’re ready to apply these fundamental but very helpful technical tools inside your trading. Because at tradeadvisorpro.com you want to make things clear to see, we’ve divided trading support and resistance levels into two simple ideas: the Bounce and also the Break.

The Bounce

As the title indicates, one way of trading support and resistance levels is appropriate following the bounce.

Many retail traders result in the error of setting their orders on support and resistance levels after which just waiting to for his or her trade to materialize. Sure, this might work on occasions however this type of trading  method assumes that the support or level of resistance holds without cost really getting there yet.

You may be thinking, “How about if I simply set an entry order directly on the road? This way, I’m assured the perfect cost.”

When playing the bounce you want to tilt the chances within our favor and discover some kind of confirmation the support or resistance holds. Rather than simply purchasing or selling quickly the softball bat, wait for this to bounce first before entering. Using this method, you avoid individuals moments where cost moves fast and break through support and resistance levels. From experience, catching a falling knife could possibly get really bloody…

bounce of trend line

The Break

Inside a perfect world, support and resistance levels would hold forever, McDonalds could be healthy, and we’d have the ability to jetpacks. Inside a perfect trading world, we’re able to just jump out and in whenever cost hits individuals major support and resistance levels and produce lots of money. The simple fact is the fact that these levels break… frequently.

So, it isn’t enough to simply play bounces. It’s also wise to get sound advice whenever support and resistance levels cave in! You will find two methods to play breaks: the aggressive way or even the conservative way.

The Aggressive Way

The easiest method to play outbreaks is to find or sell whenever cost passes well via a support or resistance zone. The important thing here’s well because we simply want to enter when cost goes through a substantial support or level of resistance effortlessly.

We would like the support or resistance area to do something as though it simply received a Chuck Norris karate chop: We would like it to wilt in discomfort as cost breaks through it.

The Aggressive Way

The Conservative Way

Picture this hypothetical situation: you made the decision to visit lengthy EUR/USD wishing it might rise after bouncing from the support level. Right after, support breaks and you’re simply now holding onto a losing position, together with your balance gradually falling.

Would you…

1. Accept defeat, obtain the heck out, and liquidate your situation?

OR

2. Hold onto your trade and hope cost increases up again?

In case your option is the 2nd one, then you’ll easily understand this kind of trading method. Remember, if you close out a situation, you are taking the other side from the trade. Closing your EUR/USD lengthy trade at or near breakeven means you’ll have to short the EUR/USD through the same amount. Now, if enough selling and liquidiation of losing postions happen in the damaged support level, cost will reverse and begin falling again. This phenomenon may be the primary reason damaged support levels become resistance every time they break.

While you would have suspected, benefiting from this phenomenon is about being patient. Rather than entering directly on the break, waiting for cost to create a “pullback” towards the damaged support or level of resistance and enter following after the price bounces.

The Conservative Way

A couple of words of caution… This Doesn’t HAPPEN Constantly. “RETESTS” OF Damaged SUPPORT AND RESISTANCE LEVELS Don’t HAPPEN Constantly. You Will See Occasions THAT Price WILL JUST MOVE One Way And Then Leave YOU BEHIND. Due To THIS, Always Employ Stop-loss ORDERS AND Never HOLD Onto A TRADE JUST Due To HOPE.

Technical Analysis

Technical Analysis

Technical analysis may be the framework by which traders study cost movement.

The idea is that an individual can take a look at historic cost actions and see the present buying and selling conditions and potential cost movement.

The primary evidence for implementing technical analysis is the fact that, theoretically, all market details are reflected in cost. If cost reflects all the details that’s available, then cost action is you might really should create a trade.

Now, did you ever hear that old adage, “History has a tendency to repeat itself”?

Well, that’s essentially what technical analysis is about! If your cost level held like a key support or resistance previously, traders will look out for this and base their trades around that historic cost level.

Technical experts search for similar designs which have created previously, and can form trade ideas thinking that cost will act exactly as it did before.

Technical Analysis

In the realm of buying and selling, when someone states technical analysis, the very first factor that involves thoughts are a chart. Technical experts use charts since they’re the simplest method to visualize historic data!

You can try past data that will help you place trends and designs which can help you have some great buying and selling possibilities.

In addition is the fact that with the traders who depend on technical analysis available, these cost designs and indicator signals often become self-fulfilling.

As more traders search for certain cost levels and chart designs, the much more likely these designs will manifest themselves within the marketplaces.

You need to know though that technical analysis is extremely subjective.

Simply because Rob and Frederick are searching in the identical chart setup or indications does not mean that they’ll develop exactly the same concept of where cost might be headed.

The key factor is you comprehend the concepts under technical analysis which means you will not get nosebleeds whenever somebody begins speaking about Fibonacci, Bollinger bands, or pivot points.

Now we all know you are thinking to yourself, “Geez, these men are wise. They will use crazy words like ‘Fibonacci’ and ‘Bollinger’. I’m able to never learn these items!Inch

Don’t be concerned yourself an excessive amount of. After you are completed with the college of Pipsology, you also is going to be just like… uhmmm… “wise” as us.

Incidentally, do you experience feeling that eco-friendly pill kicking in yet? Bark just like a dog!

Now, after learning technical analysis, let’s take a look at what Fundamental analysis boasts.