Commodity Channel Index also called CCI and is a momentum indicator. This can be used to find the overbought and oversold levels in forex trading or to identify conditions of a trend. This video shows the basics of Commodity Channel Index like what is CCI, what are the levels in CCI, how to use these levels to identify the overbought and oversold levels, how to find the conditions of a current trend etc.
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Pivot points is a very important concept that a very few forex traders use to calculate current day’s support and resistance values using previous days trading range like high, low and close values. Not only for daily resistance and support lines but forex traders also use the weekly and monthly trading ranges (last weeks high, low and close values to calculate the weekly pivot points and last months high, low and close values to calculate the monthly pivot points). In this video the basics of pivot points like what are pivot points, how to calculate them, why to use pivot points, different methods of calculating pivot points, common method of calculating pivot points etc are shown. In this video a technical indicator is also shown to calculate pivot points dynamically instead of manually.
The most common method of calculating pivot points is using a 5 point system. The 5 points are pivot line, support 1, support 2, resistance 1 and resistance 2. This video shows how to use this method to calculate pivot points.
This is a basic video on how you can use support and resistance lines in forex trading. A forex technique called horizonal line approarch is explained in this video. No examples are given in this video but you can see how the author uses the technique. This video is explained on a paper. When you want to enter forex trading, the author explained where you should enter the market using this technique. Watch to the end of the video to see about the candlestick formation called “pin bar” to enter the trading.
Commodity channel index which is also called CCI is a very popular indicator that is used to detect overbought and oversold markets. This is very easy to use.
This article explains how to use this indicator. The buy signal is generated when the commodity channel index is below the oversold line and when it crosses above the oversold line.
The sell signal is generated when the commodity channel index is above the overbought line and when it crosses below the overbought line.
An image is given for you to understand easily how to use this indicator.
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This article gives you an indepth knowledge of what is an accumulation/distribution forex indicator like what is accumulation/distribution forex indicator, how to calculate accumulation or distribution, formula for calculation accumulation or distribution, how it can be used as a convergence or divergence indicator etc.
This is mainly a volume indicator which tries to gauge the supply and demand of a currency pair by collecting information if traders are buying (accumulating) or selling (distributing) for a particular currency pair.
When the graph is raising that means the traders are buying the currency pair which means accumulation of buyers and the when the graph is falling that means the traders are selling the currency pair which means distribution.
Images are provided for easy understanding of this forex indicator.
An example trade is also presented which shows how you can use this indicator as a divergence indicator. The example given was for the currency pair EURUSD on a daily chart.
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Pivot points project support and resistance lines on the charts which can be used for forex trading. This indicator uses a calculation on the Open\High\Low\Close of yesterday, to predict the Support and Resistance levels of today.
This article shows you how calculate pivot points and how to trade pivot points. A break out technique is explained for trading pivot points. The break out setup happens when the price breaks out when any of the support or resistance lines.
Images are provided for easy understanding of the article.
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This article shows how to use bollinger bands as support and resistace for forex trading. The following is what is explained in this article.
Flat Middle Band: When the middle moving average of bollinger bands is flat and not trending, this means that the the trend is weak and the trading is mostly range trading.
Distance Between the Bands: When there is not much distance between the bands this means there is not much volatility and there might be a break out going to happen soon. There should be enough space between the bands to get profited from from trading when you are in range trading.
When both of the above conditions are met that means when there is a flat middle band and when there is enough space between the bands you can enter the forex trading at the reversal points at the bottom or top of the bollinger bands.
Images are provided for better understanding of this artilcle.
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Do you know what is a forex trading journal? Do you know the importance of maintaining a forex trading journal? A trading journal is a record or a book which keeps track of all of your successful or unsuccessful trades. It is very important for you to keep track of all your trades, whether you win the trade or lose the trade as you can use this information for future trades as a reference. Lets say entered a trade with some reason in specific trading hours, but you lost the trade. The technique might have worked for you earlier but not in this trading hours. With this trade, you come to know that the technique won’t work in the specific trading hours. If you don’t note it down or keep track of it, in future you may do the same mistake again and you will lose the trade again. A trading journal can be used to refer all the mistakes you did in the past so that you won’t do them again. All successful forex traders maintain a forex trading journal.
So if you want to maintain your own trading journal what are the important things that you have note down. The following are some of the things that you can note when you start writing your own forex trading journal.
Trading Currency Pair: Note down the currency pair you are trading or you have traded for example EURUSD, GBPUSD etc.
Long or Short: In forex terms Long means buying a currency pair and short means selling a currency pair. Record whether you bought the currency pair or sold the currency pair.
Trade Won or Lost: Record whether you won the trade or lost the trade. If you won the trade note down the reason why you won the trade like any technique you used, any economic news you used to enter the trade etc. Also note down the exit strategy you used for coming out of the trade. If you lost the trade then also you have to note down the reasons for losing the trade.
Trading time: Record the day and time you entered the trade. Also record the time zones you entered like asian time zone, london timings, NY timings etc. This is very important as some trades may work only in specific timings and this information, you can use in future.
Entry Price, Exit Price and No. of Pips: Record the entry price and exit price and also the number of pips you lost or won.
No. of lots you traded: Record the number lots you traded.
Any techniques used: Record any techniques or methods you used for your trading.
Screenshots: Screenshots are very important when you are maintaining a trading journal. As all of us know a picture speaks a thousand words. Even if you note down all the above points and if you don’t have a picture, in future, you may not be able to understand your own trade you took. So saving a picture of the trades you are doing is very important.
The above are some of the things that you have to note down if you want to become a successful trader. You may also note down any additional remarks, if you want.
This is as of Oct,07-2009. The trend line(support line) is broken in the day chart around a week ago. It looks like now it is retracing back to the trend line and then fall again. Once it retraces back to the trend line and then starts falling I will enter the trade. I will also look for any candle stick formations.
It may not retrace back also. If it suddenly falls from the point shown in the figure, I will enter the trade. What do you guys say? Do you think this trade will work out?
GBPUSD support line was broken a week ago and looks like it is now retracing back to the trend line.
The strategy is very simple and works very well. You can find a lot of trading opportunities using this strategy. This strategy involves only parabolic SAR indicator with default settings. Indicators: Parabolic SAR with default settings (Step: 0.02, Maximum: 0.2) Time Frame: Hourly But you need to observe the parabolic SAR on the higher time frame of daily chart. Markets Sessions … [Read More...]
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