Forex Trading Strategy Horizonal Levels

Forex Trading Strategy Horizonal Levels

Forex Trading Strategy Horizonal Levels Horizontal Levels is one of the simplest ideas in Forex trading and yet a very useful Forex trading strategy. Horizontal levels are fundamental in most Forex trading strategies and aid us in analyzing charts but can also be used on their own as a strategy rather than a tool to use for other strategies. Even by just watching the most obvious price changes and drawing their horizontal levels we can make successful trades and by fully understanding the horizontal levels of more complex charts we can spot trends that we would have otherwise missed. The importance of Horizontal Levels  Most traders consider horizontal levels to be just as important as the price action, which is the core to Forex trading. Analyzing the combination of the price change and the horizontal levels can easily lead us to understanding the trend and predicting where the market will go next. Although horizontal levels is a very basic Forex trading strategy, many famous and experienced traders such as Jesse Livermore, Warren Buffett, and George Soros have confirmed that they use it as a basis to many of their strategies. Horizontal levels help us spot key areas on a chart where a change in trend is likely to occur. This can help us when deciding where to place a stop, or when we want to enter a trade but don’t know the right time to do so. Precise timing can be very crucial in many Forex trading strategies and a careful analysis of the horizontal levels can help us find the correct timing and place a good trade. Keep...
Forex Indicators – an important tool in optimizing trading strategy

Forex Indicators – an important tool in optimizing trading strategy

Forex Indicators: an important tool in optimizing trading strategy Forex indicators are data points that indicate the direction in which a currency will move. Forex indicators are used extensively by investors to optimize their trading strategies. These indicators are used across timeframes and currency pairs. The right mix of a variety of indicators may help one formulate an effective trading strategy that succeeds in a dynamic and fast-moving currency market. Forex Indicators: types Broadly speaking, Forex indicators can be classified into two categories: Leading technical indicators: These suggest the probability of what is likely to happen in the Forex market with respect to the direction in which a particular currency pair is headed or where a currency pair price would reach. Lagging technical indicators: These indicators keep traders abreast of what has already happened in the Forex market. These indicators are useful in identifying whether the market is moving sideways or is trending up or down. Forex Indicator Tool: the ones to look out for Some of the key Forex indicators are: Simple Moving Averages (SMA): This indicator tells a trader the average price for a particular time period, for example five minutes, 20 minutes, one day, etc. Each of the chosen periods has the same weight. Exponential Moving Average (EMA): The averages, under this indictor, are calculated with the recent Forex rates carrying a higher weight in the entire average. This is done in order to obtain a more accurate indication of trend direction. Relative Strength Index (RSI): It is a price-following oscillator that has a range of 0-100. One of the more frequently used methods of analyzing...
Set & Forget Price Action Forex Trading Strategies

Set & Forget Price Action Forex Trading Strategies

This is a Forex Video Tutorial on “Set And Forget Price Action Forex Trading Strategies” This Video Explains How To Trade Set and Forget Forex Strategies So you Can Place a Trade, Walk Away From The Computer Screen and Still Have a Life and A Job…The idea behind this style of trading is that the trade will either be stopped out or make a profit. Enjoy! Video Synopsis – Set & Forget Price Action Forex Trading Strategies In this video we are discussing the “set and forget” forex trading auto strategy. This means you let the market do its thing; walk away, set your orders and then forget the trade. This is a very simple trading strategy; we use price action signals to alert us to the trading opportunities, we then place a limit or market order to enter, place a stop loss, than place a conditional order to cancel the stop loss if the profit target is hit. In this video we are looking at a GBPJPY daily candlestick chart and a price action reversal setup off the 147.00 level that alerted us to the trading opportunity in this market. I placed a sell on limit at 146.00, a stop loss just above 147.20, so say a 130 pip stop loss. The set and forget strategy places a conditional order to take profit at a minimum of 2 times risk, so a 260 pip profit target in the case of this setup. If you sit there and watch the market and watch your charts you will invariably experience an emotional drama and are very likely to end up...
Beginners Introduction To Price Action Trading

Beginners Introduction To Price Action Trading

Price Action Trading Explained 1- The Definition Of Price Action 2- Trading with “Messy” Vs “Clean” Forex Charts 3- How to identify trending and consolidating markets 4- How to trade Forex with Price Action Trading Strategies 5- How to use chart confluence and Price Action Signals What is Price Action ? Basic Definition: Price Action Trading (P.A.T.) is the discipline of making all of your trading decisions from a stripped down or “naked” price chart. This means no lagging indicators outside of maybe a couple moving averages to help identify dynamic support and resistance areas and trend. All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts. Price charts reflect the beliefs and actions of all participants (human or computer) trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of “price action” (P.A.). Whilst economic data and other global news events are the catalysts for price movement in a market, we don’t need to analyze them to trade the market successfully. The reason is pretty simple; all economic data and world news that causes price movement within a market is ultimately reflected via P.A. on a market’s price chart. Since a market’s P.A. reflects all variables affecting that market for any given period of time, using lagging price indictors like stochastics, MACD, RSI, and others is just a flat waste of time. Price movement provides all the signals you will ever need to develop a profitable and high-probability trading system. These signals...
Common Forex trading mistakes and traps

Common Forex trading mistakes and traps

Common Forex trading mistakes and traps There are common mistakes and ‘traps’ that give nearly all traders trouble at some point in their trading careers. So, let’s cover the most common mistakes that traders make which keep them from making money in the markets: • Analysis-paralysis There is a virtually unlimited amount of Forex news variables that can distract a trader, as well as tons and tons of trading systems and trading software. You’ll need to sift through all of these variables and forge a trading strategy that is simple yet effective, warning; this can be a very a difficult task for beginner traders. The reason why, is that most traders seem to think that ‘more is better’, when in reality ‘more’ is actually worse, as it relates to Forex trading. There really is no need to sit in front of your computer for hours on end analyzing Forex news reports or numerous indicators. My trading philosophy is that all variables that affect a market’s price movement are reflected via the price action on a price chart. So, spending your time and money on trading software, systems, or analyzing news variables is simply a waste. Furthermore, many traders get analysis-paralysis, this occurs when a trader tries to analyze so many market variables that they exhaust themselves to the point of making silly emotional trading mistakes. • Over-trading Most traders do not make money in the markets over the long-run for one simple reason: they trade way too much. One curious fact of trading is that most traders do very well on demo accounts, but then when they start trading...
Forex Trading Terminology

Forex Trading Terminology

Forex Trading Terminology The Forex market comes with its very own set of terms and jargon. So, before you go any deeper into learning how to trade the Fx market, it’s important you understand some of the basic Forex terminology that you will encounter on your trading journey… • Basic Forex terms: Cross rate – The currency exchange rate between two currencies, both of which are not the official currencies of the country in which the exchange rate quote is given in. This phrase is also sometimes used to refer to currency quotes which do not involve the U.S. dollar, regardless of which country the quote is provided in. For example, if an exchange rate between the British pound and the Japanese yen was quoted in an American newspaper, this would be considered a cross rate in this context, because neither the pound or the yen is the standard currency of the U.S. However, if the exchange rate between the pound and the U.S. dollar were quoted in that same newspaper, it would not be considered a cross rate because the quote involves the U.S. official currency. Exchange Rate – The value of one currency expressed in terms of another. For example, if EUR/USD is 1.3200, 1 Euro is worth US$1.3200. Pip – The smallest increment of price movement a currency can make. Also called point or points. For example, 1 pip for the EUR/USD = 0.0001 and 1 pip for the USD/JPY = 0.01. Leverage – Leverage is the ability to gear your account into a position greater than your total account margin. For instance, if a trader...
Forex Trading Strategy Support and Resistance Levels

Forex Trading Strategy Support and Resistance Levels

A good way to understand this Forex trading strategy is to picture a man trying to get past a certain line but a fence is blocking his way. He will keep going along the fence but will not be able to pass it. The fence represents what is called “support and resistance levels”. An upper blockage, appearing at the end of a bullish trend, is a resistance point. It represents the point at which sellers outnumber buyers and the price starts to go back down. A lower blockage, appearing at the end of a bearish trend, is a support point. At this point the price has reached a momentary low and will start going up, at least for the time being. As can be seen in the chart above, the big advantage of support and resistance levels is that they can be easily distinguished. They do not require high levels of chart analysis and for that reason can be used by both skilled and novice traders. Keep in mind that resistance and support levels are not exact lines but zones and the exact point at which they occur cannot be determined. The barriers caused by the resistance and support levels do not last forever and our job is to determine which levels we can trust and which have a high probability of breaking. It is not an exact science but with a proper understanding of the market and the use of some technical analysis this method can work with very good odds. Levels that have proven themselves over three times in a row are considered more trustworthy. Going back...