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How to use momentum indicator in forex trading – video

November 28, 2009 By Raj Leave a Comment

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.

This video shows you how to use this indicator in forex trading. It also shows you

  • what it means when it statys above the 0 line and below the 0 line
  • when to take a momentum forex signal
  • how to use it with trend lines
  • how to use it with patterns like head and shoulders, double tops etc
  • how to use it for divergences in price actions
  • when to take profits on strong divergences and trend line breaks
  • when to buy and when to sell using this indicator

There are many other things also you can learn about momentum indicator using this video. Check the video.

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MACD indicator videos

November 28, 2009 By Raj Leave a Comment

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.

The author explained the three MACD ignals from three sources which are MACD / Signal Line Crossovers, MACD Centerline Crossovers, Divergence with price.

MACD Video 1:

MACD Videos 2:

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Average true range indicator for breakouts – video

November 28, 2009 By Raj Leave a Comment

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.

The author explained the use of ATR on a daily chart. Since it is explained on a daily chart he also recommends staying in the position opened for a long time like a couple of weeks.

The author explained that if a break out occurs after a period of consolidation in daily chart and if the gain in the average daily range is more than 10% that means its a perfect breakout. That means the pair may move a large number of pips like 500 pips or 1000 pips in the same direction.

Check the following video.

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Average directional index video

November 28, 2009 By Raj 1 Comment

Average directional index(ADX) is also called average directional movement index(ADMX).

This is an indicator for determining the strength of a prevailing trend.

ADX is measured on a scale from 0 to 100.

There are three lines in this indicator. One line represents the positive directional index and another line represents the negative directional index and the third one represents the strength of the trend.

This video shows you how to use this indicator for forex trading.

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Alligator Indicator Videos

November 28, 2009 By Raj Leave a Comment

This is a video series consisting of two videos that shows you what is an alligator indicator and how to use it for forex trading.

This video also shows you What are the entry singnals and exit signals using this alligator indicator.

This video also explains how to apply this indicator to the metatrader.

Alligator indicator is made up of with three smooth moving averages and not exponential moving averages.

When these moving averages are together which means there is no trend. When the alligator moving averages are far apart that means there is a trend.

Alligator Indicator Video 1:

Alligator Indicator Video 2:

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Two very good trading opportunities that I am seeing for AUDNZD

November 28, 2009 By Raj 2 Comments

The following is the AUZDNZD daily chart as of Nov. 28, 2009. I am seeing two very good short trade opporunities for this currency pair.

1) MACD Divergence

2) Trend Line Break out

1) MACD Divergence:

If you want to know about the MACD divergence you can check it at http://www.forexbees.com/content/macd-divergence-trading-very-powerful-forex-trading-technique. If you observe the following graph which is a AUDNZD daily graph you can clearly see that AUDNZD is forming a divergence in the daily chart. The daily chart is showing higher highs but MACD is showing the lower highs. So there is a very good possible short trade opportunity here. There are many ways to take this short trade.

  • Candlestick Formations: If a strong reverse candlesick formations are formed like the doji or a bearish engulfing candlesticks etc, this is one entry for a short trade.
  • Commodity Channel Index: Currently the commodity channel index is above the 100 line. When it crosses below the 100 line this is one entry for a short trade.
  • Stochastic Oscillator: Stochastic oscillator is currently above the 80 line. When it crosses below the 80 line this is one entry for a short trade.
  • MACD moving average line: When the MACD moving average leaves the histogram bars that is one opportunity for entering a short trade.

Whichever happens first in the above short trade entries, I will enter a short trade.

2) Trend Line Break out:

If you observe the AUDNZD daily chart, it clearly tells you that it is moving on a trend line. When the chart is coming down and crosses the trend line with a strong bearish candlestick that is a perfect siganl for another short trade. When the trend line is broken with a strong bearish candlestick I will enter a short trade. It may take some days as currency the chart is away from the trend line.

For each of the above two opportunities I would like to enter them with two short trades each. For MACD divergence I will enter two short trades and for trend line break out I will enter two short trades. Whenever I get little proft I will close one and leave the other by moving the stop loss below the entry point. Check the following picture.

Click on the picture below to maximize it.

AUDNZD Daily Chart:
AUDNZD daily chart showing two possible trading opportunities

AUDNZD daily chart showing two possible trading opportunities

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