2013년 11월 30일 토요일

About 'forex trend signals'|Good Forex Signals Make FX Trading Easy







About 'forex trend signals'|Good Forex Signals Make FX Trading Easy








               When               markets               open               there               is               often               high               initial               price               volatility               before               a               trend               emerges.
               Unlike               the               stock               market,               the               forex               market               does               not               have               a               daily               open               and               close.

Running               across               three               different               trading               sessions,               the               forex               market               is               open               24-hours               a               day,               5.5               days               a               week.

Consequently,               most               traders               don't               see               the               forex               market               as               having               an               'opening'               session.

However,               this               is               not               the               case.

There               are               larger               trading               volumes               as               banks               around               the               world               open               for               business,               meaning               that               currency               pairs               are               not               immune               from               opening               volatility.
               As               stop-losses               are               triggered               on               either               side               of               the               opening               price,               a               stronger               trend               will               often               emerge.

Although               the               trend               may               not               last,               knowing               that               there               is               often               a               fake-out               followed               by               a               stronger               move               is               something               of               which               traders               can               take               advantage               in               their               trading               strategies.
               Traders               should               watch               the               most               frequently               traded               forex               pairs,               as               these               are               the               most               liquid,               as               well               as               looking               for               a               large               increase               in               trading               volume               as               the               market               opens.

These               pairs               include               the               EUR/USD,               the               GBP/USD,               the               USD/JPY,               the               USD/CHF               and               the               AUD/USD.
               The               London               forex               session,               running               from               8:00               GMT               to               18:00               GMT,               is               an               ideal               candidate               for               this               trade,               one               of               the               reasons               being               that               the               GBP/USD               and               EUR/USD               are               not               as               heavily               traded               prior               to               the               open               of               this               session               as               they               are               prior               to               the               open               of               the               New               York               session               (which               overlaps               with               the               European               session).

When               Germany               and               London               open               for               trading,               the               volume               of               trades               on               these               pairs               ensues,               with               the               USD/CHF               being               another               good               pair               to               keep               an               eye               on.
               The               JPY               is               heavily               traded               in               the               Asian               forex               session,               but               in               the               one-hour               overlap               between               the               Asian               and               London               sessions               there               is               increased               volatility               for               the               GBP/JPY               and               the               EUR/JPY.
               Working               off               the               open               of               the               European               markets,               we               have               three               pairs               to               watch               starting               from               around               6:00               GMT               (prior               to               the               market               opening)               until               about               10:00               GMT               (after               the               markets               have               opened).
               The               set-up
               Prior               to               a               major               market               opening,               forex               pairs               typically               move               within               small               ranges.

However               this               is               not               always               the               case,               and               on               days               when               there               is               a               lot               of               movement               prior               to               the               European               open,               the               set-up               will               be               harder               to               see,               which               might               mean               that               this               strategy               is               not               appropriate.
               1.

Using               a               15-minute               chart,               traders               should               look               for               a               calm               pre-market,               or               a               forex               pair               that               has               a               definable               pre-market               range.

2.

A               breakout               of               the               pre-market               range               is               likely               to               occur.

We               do               nothing,               as               this               could               be               a               fake               breakout.

Ideally               the               breakout               should               be               small,               either               less               than               a               third               of               the               average               daily               range,               or               from               10               to               30               pips.

3.

We               watch               for               an               engulfing               candle               pattern               (a               bullish               engulfing               pattern               consists               of               an               up               body               longer               than               the               previous               down               candle,               whereas               a               bearish               engulfing               pattern               consists               of               a               down               body               longer               than               the               previous               up               candle)               in               the               opposite               direction               of               the               original               breakout               (so               if               the               breakout               was               up,               we               would               want               a               bearish               pattern).

4.

We               open               a               trade               in               the               direction               of               the               engulfing               pattern,               placing               a               stop               just               below               the               low               of               the               bullish               engulfing               pattern               (or               the               high               of               the               bearish               engulfing               pattern).

5.

To               exit,               a               trader               could               either               place               a               trailing               stop               on               the               trade,               set               limit               orders               based               on               the               average               movement               during               the               early               European               session               or               the               average               daily               range,               or               watch               for               the               reverse               engulfing               pattern               to               close.



               Considerations
               Traders               should               be               aware               that               not               all               signals               will               provide               an               entry               and               exit               within               the               first               couple               of               hours,               with               some               signals               developing               later               in               the               session.

In               this               case               it               would               be               a               good               idea               to               exit               using               a               trailing               stop               or               limit               order.
               If               multiple               stops               and               limits               are               being               triggered,               traders               shouldn't               make               more               than               two               trades               in               a               given               direction               and               just               save               the               system               for               another               day.

And,               if               an               initial               breakout               has               momentum               and               runs               more               than               40               pips               outside               the               pre-open               range,               traders               shouldn't               make               a               trade               in               the               opposite               direction               even               if               an               engulfing               pattern               appears.
               Traders               can               also               increase               their               chances               of               success               by               looking               for               false               breakouts               against               stronger               long-term               trends,               as               trades               that               go               with               longer-term               trends               have               a               higher               chance               of               success.

They               could               also               trade               in               multiple               lots               (contracts)               as               this               will               allow               for               multiple               exits,               thus               allowing               them               to               break               even               on               their               risk               before               taking               more               profit.
               Conclusion
               Although               the               forex               market               is               open               24-hours               a               day,               there               are               still               times               of               the               day               when               more               participants               enter               the               markets,               and               these               can               provide               great               opportunities               for               forex               traders.

By               watching               for               fake               breakouts,               reversal               patterns               and               using               multiple               exits,               a               trader               can               potentially               profit               on               a               large               portion               of               the               average               daily               movement.






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      Reduce unnecessary losses and increase your odds of winning with this one easy tool."Forex Trendy" Scans all currency pairs on

      all time frames to find the best trend for you.
      Scans all currency pairs on all time frames to find the best trend for you. (CLICK HERE)
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    3. "Which Forex pair and time frame is best to trade" is the frequently asked question and I want do give you the DEFINITE ANSWER.

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