The following is the EURJPY daily chart as of Nov 29, 2009. Observe the chart there is a strong resistance the bottom of the chart at which a candlestick with a long tail and a small body is formed. This is a reversal signal. Also the CCI indicator is currently below -100 which is in oversold region. I think this is a very good opprotunity to buy this currency pair what do you guys say?
Click on the picture to maximize it.
Today is sunday nov. 29th around 9 pm EST time. I have posted in my forum topic at http://www.forexbees.com/forex-forums/usdjpy-long-trade-opportunity there is a long trade oppotunity for USDJPY because of the following things.
1) USDJPY daily chart has formed a candlestick which has a long tail and a small body.
2) The candlestick is completely out of the bollinger bands.
3) Commodity channel index is below -100.
4) Stochastics oscillator is below 20.
5) RSI is below 30.
Here is the second part of the 10-point guide to finding the best FOREX broker. This part covers point 6 to 10. For points 1 to 5, please read the first part.
6. Is Your Broker a Member of any Regulatory Body?
The broker is the man who will serve as a link between you and the market; he is the one that provides you with leverage so that you can control large sums with smaller amounts of money. Therefore, finding a good broker and setting up a brokerage account are vital steps. Here is a ten-point guide that will be of immense value in helping you find the best broker.
1. What is the Minimum Investment Requirement?
This is my experience with forex signals. Around 3 years back I have subscribed for some forex signals services, which I don’t remember the name, but I have some funny and bad experience with that. They used to deliver the signals through yahoo messenger at around 12 AM EST time zone. So I have to sit before my computer, login to my messenger and wait for chat window to pop up. Everything was fine. I have subscribed for one month for that signals. Everyday aronund that time I used to login to my messenger and wait for the signals. I used to get signals like “Buy EURUSD now”.
SAR stands for stop and reverse. parabolic sar is used to trade signal to signal. However if we go for all the long and short trades based on the signals we may lose money. The idea behind SAR is to identify long term trends and take advantage of them. This video shows you how to use parabolic SAR indicator along with other techniques like trend line break outs etc for forex trading. The author of this video asks to identify crossovers of the new highs or new lows before entering the trading. According to the auther use break outs along with SAR for forex trading.
This video shows a moving average technique. The author of this technique is using three moving averages 10, 25 and 50. This technique is mainly for 15 minute chart and for any currency pair it works. I have verified this techniqe by drawing the moving averages the author is recommending and it looks like it is working. I haven’t really tested this technique but I will test it in my demo account. The author is also recommending money management when using this technique. He is also recommending to use support and resisnce lines and take profits accordingly when using this technique.
This is one of the very good video on a forex indicator called momentum indicator that I got today and would like to share with you. I almost don’t know how to use this indicator until I watch this video. Momentum indicator is a leading indicator. Momentum measures the rate of change in the closing prices for a currency pair. It is often used to defect weakness and likely reversal points. High momentum readings occur when a trend is at its strongest. Lower readings are found at the start or end of a trend.
MACD is one of most popular technical anlyis tool in forex trading. The following is a MACD video series consisting of two videos. In these videos the author explains how to use the MACD indicator.
The author also explains the following.
The most common formula for MACD is 12,26, 9 formula.
MACD is made up of the difference between the value of 12 day and 26 day exponential moving averages.
Then a 9 day exponentail moving average of the MACD is superimposed as the siganl line.
This is a very interesting technique I learned from this video as I have never used ATR for forex trading. ATR measures the average true range of the top to bottom of what you can see in terms of that currency pairs range for that time frame.
The author of this video explains how to use this indicator for break outs. According the author of this video Average True Range indicator can be used to find healthy breakouts.
The author also explained an example of ATR for 2007 USDCAD currency pair.
Loading ...
