Forex techniques strategies

The Ultimate Three Strategies — forex scalping, forex swing trading, and The Shotgun Trade. I was encouraged to take up this challenge by a recent e-mail I received about what to do when the forex goes stale i. I have a very simple answer… forex scalping an intraday trading strategy is always in vogue — and very profitable. It just requires that you crank the microscope down to the 5 minute chart, and stay there.

As to the forex going stale, I get into that too with an update on where the new forex liquidity is coming from. That is totally achievable, if you follow along with me in my blog posts on the forex, wherein I will show you how to make it happen through the application of sound forex technical analysis and the implementation of the right forex trading methods.

If you would like some forex trading tips for beginners, please contact me in that regard. Forex Tip Introduction Forex Scalping Forex Pattern Forex Scalping Summary Forex Scalping Examples Forex Swing Trading Forex Times Zones The Shotgun Trade Commitments of Traders Uber Forex Broker Smart Phone Apps The Forex Pie Forex Major Pairs Forex Pip — Pip Value Forex Spreads The Highest Pip Value Forex Liquidity Forex Tools Forex Risk Management Forex Trading Indicators Quotes References Conclusion.

You can always come back for the rest. I guess you could almost consider this a mini forex trading tutorial, given I cover so many topics here. So, be sure to hang with me, and then contact me with any questions you have, or if you just want some more free forex training.

It will only take you 30 minutes to get all the way through this blog post. Have you worked your butt off trying to get your forex trading right?

This is one of the hot pair trading topics-du-jour. It is a sweet intraday trading strategy. All three forex trading techniques rely on forex support and resistance levels to varying degrees. Study the chart below for the GBPUSD pair, and then follow along with my narrative after it. You just have to scan through the various pairs on the forex trading platforms at your forex broker, looking for tradable situations on the 5 minute chart that look somewhat like what you see on the chart with respect to Bollinger Bands and RSI.

Not all pairs will have a 5 minute chart that looks like a potential candidate for forex scalping, but you may end up with a few to work with. And, not all forex pairs will display the DCP forex pattern we have here, or any others for that matter.

I am mostly interested in those two forex trading indicators — Bollinger Bands and RSI — and volatility. As with all forms of forex trading, the pre-trading homework is the tedious part. I know, I know, I know, you just want to fire-fire-fire — not ready-aim-fire. We all have a need for speed.

Once you have done your pre-trading prep, finding tradable situations will be the easy part — and pulling the trigger even more fun. Okay, enough of this preamble. Now, get back to critiquing the 5 minute chart below, and then have a look at what I have to say about it on the other side. If you would like to skip ahead over the detail to see the summary, click through to the Forex Scalping Summarywhich will then take you to some more examples.

I have a diagram of this DCP forex pattern coming up later on, so you can see what a forex diagram looks like drawn out. What I would like to draw your attention to are the forex trading indicators I have plotted — Bollinger Bands, MACD, and RSI.

They are very important in terms of throwing off buy signals. You can see the buy points, in each case, where price exceeded the lower Bollinger Band, RSI went oversold, and MACD told its own story — MACD divergence in the first instance, and MACD punching up through its trigger line in the second. Okay, there is another trading opportunity that may not be completely obvious to the untrained eye.

At the end of the Price Equilibrium or Consolidation PEC phase, where I have marked Sell 1, you can see we had a second incidence of MACD divergence — in this case, signalling that price was about to fall — and, fall it did in the form of Leg 2 down. Now, I should point out to you forex Fibonacci aficionados out there that the PEC phase usually consummates at a strategic Fib level, and Leg 2 down usually consolidates at another strategic Fib level.

Those are two key forex Fib levels. Their numbers are not important for purposes of this discussion. The main thing here is to recognize the forex pattern DCP unfolding. Leg 2 is usually the same length as Leg 1 — so, by going short at the conclusion of negative MACD divergence, at the spot Sell 1 on the chart, you know that your profit potential is the length of Leg 2, after which you would collapse your trade.

And, there is even yet another trading opportunity, which you may have noticed. After the second buy, signalled by MACD punching up through its trigger line, you would hold that trade as long as MACD is above its trigger line. And then, you would collapse it, when MACD punches down through its trigger line. At that point, you could even go short, where I have marked Sell 2 on the chart, and hold that position as long as MACD remains below its trigger line.

So, there you have it — four trading opportunities — all off the 5 minute chart. Below is what an Uptrend Continuation Pattern UCP looks like, and below that is how a Downtrend Continuation Pattern DCP differs. These are two of the forex patterns I see all the time that make trading the forex so much easier. Of course, if you want examples of what a forex pattern like UCP looks like for real, check out my posts Stock Trading StopsStock Market Successful Trading StrategiesStock Trading Rulesand Three Winning Stock Trading Strategies.

MACD is a bonus, if you plot it too. There are two buy situations Buy 1 and Buy 2where the Bollinger Bands go outside the lower band at the same time RSI goes oversold. In both cases, MACD confirms the trade, together with MACD divergence for the first buy.

Nothing else is required to make those trading decisions. There is a third trading opportunity towards the right on that 5 minute chart, where you can see the spot I marked Sell 1. This is where the first buy is collapsed, and an opportunity opens up to go short for the second trade. Sell 2 comes into play, when Buy 2 is collapsed, where price exceeds the upper Bollinger Band, and RSI goes overbought, followed by MACD punching down through its trigger line.

In sum, four straightforward forex scalping trades off the 5 minute chart, which cements this concept as one of the three successful trading strategies I am presenting in this blog post.

AUDUSD, USDCHF, and USDJPY. Again, I have plotted those two forex trading indicators, Bollinger Bands and RSI. You can see where price went outside the upper Bollinger Band, all the while RSI went overbought — extremely so in both cases. Shorting the forex pair accordingly is a no-brainer. Pretty much the same story here, only this time we are looking at a picture-perfect buying opportunity, where price exceeded the lower Bollinger Band, as RSI went oversold extreme readings in both cases.

So, you can see how this pair trading strategy makes it one of the forex trading methods you should employ. These trade set-ups occur day-in, day-out. You just have to keep looking for them. All you need to do is set up your forex trading charts with Bollinger Bands and RSI standard settings for all indicators is fineand then scan through all the forex pairs on your forex trading platforms, looking for pair trading opportunities, such as those that I have presented here.

Well, I have an answer for that too, as with all things forex. This form of forex pair trading is an excellent example of the practical application of forex trading techniques. And, it is perhaps one of the easiest and most successful forex strategies you will find any time, anywhere. Just have a look at the sessions and times in the picture below. The times are approximate. The forex swing trading opportunities are in and around those forex time zones. The forex time zones represent when the forex swing trading points usually occur in the forex.

This is where the money is. This is when you should be at your computer, or looking at your mobile device, because this is where the forex price action is. No need for you to keep an eye on the forex all day long. After all, the London session is the busiest time in the forex. Regarding forex fundamentals, there is another potential swing point related to the 8: You can sometimes see an ensuing swing in price action, either up or down.

I will be doing a blog post on that phenomenon at some point in the future. This is a monthly report generated and reported on the first Friday of the month by the U. Bureau of Labor Statistics. It is designed to show the total number of paid workers of any business in the U. Per Wikipedia, the forex operates continuously 24 hours a day, except weekends — i.

Below you will find a number of forex trading charts showing you that these forex time zones are really there. All you have to do is find them on your own forex trading charts.

And now for The Shotgun Trade, which has taken me years to perfect. The Shotgun Trade is an excellent example of the practical application of forex trading techniques. I am pretty proud of this trade set-up because of its ease of execution and sheer simplicity. I have doctored them up with enough information, so that you get the hang of the trade, just by looking at the charts.

The Shotgun Trade works off two forex trading charts — in this case, the 1 hour and 15 minute — but, it can also work off other combinations, like the 1 hour chart and the 5 minute chart. I have delineated the New York open 8 am ET with a dotted line. This is one of the forex time zones I referenced earlier. Just before that what is the daily volume of forex, we had a Golden Cross and a spike up in price action.

The trend was now up. Notice that, leading up to the New York open, price was above both moving averages the 50 and EMAs. This chart is a lot busier more going on obviously at this lower level.

You should be able to notice by now daily forex volume forex pattern UCP. Without going through all the details, given that they are spelled out on the chart, the salient point here is the fact that, at the end of the Price Equilibrium or Consolidation PEC phase, price was below the 50 EMA but above it on the 1 hour at that point.

MACD had neutralized back to the waterline, and then some. It then issued its buy signal by punching up through its trigger line, thereby signalling the trade and the start of Leg 2 up, just before the New York open. Notice the forex swing trading point immediately prior circled on the 15 minute chart. With a forex pattern such as the UCP pattern, Leg 2 is usually the same distance as Leg 1 — so, that represents the profit potential for the trade. The said trade ended at the top of the chart, where you see the forex swing trading point, followed by MACD punching down through its trigger line.

Another takeaway is the fact that, as The Shotgun Trade unfolded, the moving averages on both charts were trending up. And finally, notice the power of MACD.

It not only signalled the entry point for the trade — but also the exit. Earlier on, best way to make fast cash in runescape f2p can see MACD divergence, which signalled the commencement of the Price Equilibrium or Consolidation PEC phase. The only difficult part, if there is such a thing, is doing the necessary homework to find the forex pairs on your forex trading charts that are setting up for this trade.

But, there is homework for all three forex trading techniques — this one being no different. Okay, now that we have covered the three forex trading techniques I said we would — forex scalping, forex swing trading, and The Shotgun Trade — you should be able make the kind of money I said was possible in the Forex Tip at the outset.

These are the three of the most successful forex trading strategies I have perfected in all my years of forex experience.

If you need some additional free forex training, please let me know at the Contact link. They can and do move the markets. There is no commitment of traders indicator as such. The CFTC releases the new data on the Big Dog positions — and those of the hedge funds and street money read, noise traders — every Tuesday in the form of a commitments tesla call optionsschein traders report.

This information is as close to forex alerts as you will find. I take this notion up later on with regards to the GBPUSD pair. Enter a friend of mine, who takes this raw data, and makes sense of it by plotting it graphically, so that it can be understood by the masses.

He does this every Friday. Truth be known, what we are looking at in the data dump above the graphs, where the rows of numbers are, is futures commitments of traders report information, which is a good proxy for the forex. I guess you could call it commitments of traders forex positioning. After all, the forex and futures markets move in tandem. In actual fact, whether we are talking forex or futures, we are looking at commitments of traders report historical data, given that the CFTC weekly dump is for the past put option exercise calculator — released every Tuesday.

You can plainly see that the Big Dogs are extremely long the pound and, that being the case, they are equally long the GBPUSD forex pair by default. Expect the pound to rise in the futures world, and the GBPUSD forex pair pair brokers en options binaires go up on the forex side as well. The two markets are joined at the hip. It just takes time.

Have you ever dreamt of forex trading with upwards of 1: Well, now you can at the forex broker Tallinex. On any one of their forex trading platforms, you can get a leg up on forex trading by trading better, faster and easier. Of course, if you need my help, you can contact me at any time. I have fifteen-plus years experience with the forex, so I know that market intimately. Check out six features Tallinex has to offer:. You have nothing to blue chip australian shares 2016 and everything to gain.

Once you are ready, you can then go on to open a live trading account, and put yourself on the path to making some forex techniques strategies money — with my help, of course. Tallinex is open for business six days a week — closed on Saturdays. Time to take a break, and catch your breath.

One of the neat things about using their forex trading platforms is their regular forex trade advisory e-mails that you would get, as well as information pieces, such as technical reviews on bitcoin, gold, and silver. Please make sure your country of residence allows you to trade at Tallinex.

Plus, please note that I am an affiliate for Tallinex. The big international banks no do foster parents make money have a hold on the forex. All you need is a smart phone to seize the power of dealing currencies.

Mobile trading apps allow you to get access to the same technology the banks use. The lines between institutional and retail trading malaysia stock broker commission now blurred. The institutionals no longer corner the best forex trading systems.

Get this… it is estimated that per cent of transactions are now conducted on mobile devices — this up from to per cent, or so, just a few short years ago.

A buy sony stock ps4 of forex traders are not only mobile first, but they are mobile only. There is even a forex trading app on the Apple watch. You can set it to vibrate when a particular price is reached. Beam me up Scotty! That you can do too. This new generation of forex trading app applications provides a far less complex and safer environment to trade the forex than traditional desktop sites.

No need to be trapped at your desktop by impact derivatives stock market india ball and chain. Smart phones are invigorating the ascendancy of the forex.

In order to understand pair trading, you have to have an appreciation for forex spreads and the meaning of pip value, as they related to a forex pair. The value of a currency pair is denoted by pips and spreads — the value of a currency being expressed as pips. One forex pip has a pip value expressed as 0.

In most cases, currencies are represented by four numbers after the point — an example being 1.

Two prices are quoted for any given forex pair — the buy or forex bid and the sell or ask — the difference between the two being the spread. The forex bid is lower than the ask. Forex spreads represent the difference between what the forex market maker gives to buy from forex traders, and what the take is from them. Were a trader to buy a forex pair, and then immediately turn around and sell it, that trader would automatically lose money, because the forex bid is lower than the ask.

While the forex spreads can be as low as 1. Forex traders benefit from lower forex spreads because a smaller move in forex exchange rates enables them to profit more easily.

The value of this forex pair — the EURGBP inversion tax avoidance strategy is determined by hurricane sandy affecting the stock market a look at the current value for the GBPUSD pair, which at this writing is 1. There are other considerations to take into account as to which pair to trade at any given moment in make a chinese money envelope. That decision comes from following the steps in your forex trading plan.

The Forex market, or spot market, is a constituent of the interbank foreign exchange market. It is extremely liquid because of the introduction of market makers and the participation of millions of retail traders who trade currencies on a daily basis. By definition, a liquid market comprises many trades and many traders. Consequently, forex trading is demo accounts forex instantaneous.

According to Coalition Development Ltd. The forex industry seized up when the banks caused a price-rigging scandal. Their exit from the forex opened up a void, which is now being filled by Citadel, GTS, Jump, KCG Holdings Holdings Inc.

While that may seem to pale in comparison to the global currency market behemoth, consider that stock trading on all U. Non-banks are in high gear to provide more forex liquidity. In the first half, Citadel Securities LLC boosted foreign-exchange volumes some 83 per cent.

Strategies For Part-Time Forex Traders

And, Jump Trading LLC plans to increase its direct market making. Electronic market makers ensure that retail traders can trade as they wish. They provide the much-needed forex liquidity, or the ability to trade without any adverse effect on pricing. They are attempting to prove themselves as effective and reliable counterparties in the form of sophisticated technology that offers tight pricing, even when the market conditions are turbulent.

These new forex liquidity providers appear to be here to stay, and are becoming a big factor in the forex arena. For example, Citadel makes prices available to more than clients on 28 currency pairs, and holds positions for several minutes on average.

The high-frequency traders are constantly evolving and expanding their currency businesses, which is good for retail traders, in that forex liquidity will always be in the pipeline. If one source disappears, another is just around the corner. As with all forms of trading, liquidity is vitally important. The forex is no different. The forex trading techniques I have presented in this blog post all require forex liquidity to be ever-present. This is not a problem, given that the forex is the most liquid of all markets, especially with the market makers now on the scene.

Forget about the banks. They have gone into hiding for the most part. Regarding forex pips, if you would like a pip value calculator, here is one I like: And, if you would like a good support and resistance MT4 indicator, I can provide that too. Just use the same contact link above. Regardless of which of the three forex trading techniques you choose to trade with, I recommend that you use a forex stop loss of 30 pips in all cases.

You will thank me, and sleep better at night. The Shotgun Trade referenced above is the best illustration of the forex trading indicators I normally plot on my forex trading charts. I like to stick to three — the 50 and EMAS Exponential Moving Averages and MACD. That said, whenever I talk about forex scalping, I like to work with Bollinger Bands and RSI, and just throw in MACD for good measure.

Many outstandingly intelligent people are horrible traders. Average intelligence is enough. Beyond that, emotional makeup is more important. That is the only way I can sleep. Always question yourself and your ability. The second you do, you are dead. My biggest hits have always come after I have had a great period, and I started to think that I knew something. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities.

Trading is a psychological game. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. There you have it friend… three forex trading winning strategies that will rev up your forex trading mojo. No matter whether you are just now learning forex trading for the first time, or if you are an experienced forex trader, you can always contact me to arrange one-on-one forex trading lessons.

I can also be your forex mentor. In closing, I hope this post, Forex Trading Techniques: The Ultimate Three Strategies, met with your approval. If you wish to comment on it, please feel free to contact me, or leave a comment below. Its claim is totally achievable, if you apply what you have learned here today.

I can always provide you with some more free forex training, if you feel you need it. I post newsworthy news items at TradingSmarts during the week. If you would like me to comment on a topic of interest to you, please contact me, and let me know. If you would like to check me out, you can do so at the About link. And, if you would like to see my previous blog posts, you will find them here: VIXAfter Hours TradingTrading VolumeStock Trading StopsCurrency Trading StrategyHow to Pick StocksStock Trading Rulesand Three Winning Stock Trading Strategies.

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9 Tricks Of The Successful Forex Trader

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Home About Blog Contact FAQ Members Order Resources Testimonials. Get your free copy of 'The Shocking Secret of Rich Traders' by clicking here. How to Crush the Markets Like the Big Dogs. The Ultimate Three Strategies Published on: October 5, Author: So, strap in and listen up closely friend.

Stay tuned for future posts beyond this one. More forex trading tips are coming your way. Keep reading… You ready? Forex Scalping This is one of the hot pair trading topics-du-jour. Same for this forex pair — another great buying opportunity. By now, you should be able to see how forex scalping is the perfect intraday trading strategy. The main takeaway is the divergence between the two charts, which I will explain in a minute. Please refer to the two charts below, as I go through this.

The data dump looks like this: Data via CFTC and COT-Futures. This is yet another example of forex trading techniques in play. Check out six features Tallinex has to offer: Have a look at the personal account options they offer in the table below: An exception to this rule is the USDJPY forex pair, which has just two decimals after the point. Forex Spreads Two prices are quoted for any given forex pair — the buy or forex bid and the sell or ask — the difference between the two being the spread.

The Highest Pip Value — EURGBP — The value of this forex pair — the EURGBP — is determined by having a look at the current value for the GBPUSD pair, which at this writing is 1.

Forex Liquidity The Forex market, or spot market, is a constituent of the interbank foreign exchange market. Info on Forex Liquidity via The Globe and Mail Forex Tools Regarding forex pips, if you would like a pip value calculator, here is one I like: Forex pivot points are the ultimate definition of forex support and resistance levels.

I will be doing a blog post on pivot point trading in the near future — so, stay tuned for that. Forex Risk Management Regardless of which of the three forex trading techniques you choose to trade with, I recommend that you use a forex stop loss of 30 pips in all cases.

Forex Trading Indicators The Shotgun Trade referenced above is the best illustration of the forex trading indicators I normally plot on my forex trading charts. MACD is helpful in identifying forex swing trading points on forex trading charts. The more you use, the more you have. The other half is physical. Please share this post.

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