The following is the GBPUSD hourly graph as of Jan. 28th 2010, 12 AM EST. If you observe the graph you can see that it is going in a channel. AT some point it will break the channel and it is a good opportunity to enter the trade in the direction of the break. Chcek the following graph.
gbpusd in channel
The following is the daily chart of AUDJPY as of Jan. 26th around 4 AM EST. If you observe the graph you can see that there is a strong resistance trend line which was broken earlier and now the graph is coming towards the resistance line and now this resistance may act as a support trend line. Moreover the stochastics has reached the oversold region which is below 20. The CCI also reached the oversold region.
I think its a good opportunity to enter a long trade if a bullish engulfing candlestick pattern is formed or a doji with a small or no body at all is formed at this point.
What do you guys think of this?
audjpy technical analysis
As most you know one of the most profitable way to trade forex is using divergence. But you may not know what is hidden divergence. (I also don’t know what it is until I read this small ebook).
Today I got an email from some one and that email referred me to go to a site where I can get a kind of small ebook about hidden divergence for free. This book is really interesting. You can get it for free at http://www.tradeology.com/hidden-divergence-a.html. All kinds of divergence is explained in this. Different kinds of divergence using different indicators is also explained. Go ahed and get this small free ebook. Let me know what you think of about all these divergences.
Any one heard of this competition? A competition between the authors of non-commercial expert advisors is going on at http://www.forex-robot-world-cup.com/. Non commecial expert advisors mean expert advisors that are not being sold or marketed anywhere but are solely used by their developers.
The first prize is $100,000. The competition has two phases. The first phase is a screening phase and the second phase is live (real money) trading phase.
In the screening phase 329 authors participated out of which 10 expert advisors are selected for live trading phase. In the screening phase around 320 expert advisors are taken out as they did not do well in a short period of time which is 2 months.
Now there are only 10 expert advisors are left which are already trading on live accounts. You can see the results of the expert advisors on the site. One expert advisor is trading good which made around 160% profit with in the 11 days.
I am not sure if this competion is real or not but it is fun. Go and check it.
I have been trading with FXCM for almost 2 years and recently I got an email from them saying they are offering virtual private server for free. If you don’t know what is virtual private server I will give you a little introduction here.
A virtual private server is another computer which is hosted remotely, which you can use for trading. You can install metatrader application on that and login to that from your computer. You can do trading as your normal way in that computer. You don’t need to install metatrader on your system.
If you are using your system for forex trading then definetly the following are some of the problems you might have faced.
1) Problems with internet connection like low speed internet so that your orders may not execute instantly.
2) If you are using expert advisors for forex trading, you know that you have to leave your system on, all the time as they run 24hrs a day. This will cause your system to heat up and after some time your system may start working slowly. If you are using virtual private server, you can install metatrader on that and also the expert advisors and you can shut down your system. Virtual private servers are really a big advantage for expert advisors.
3) Power problems which stop your expert advisors to work.
The following are some of the advantages of virtual private servers.
1) Remote access – you can login to your platform from any computer and do trading which is very cool. You don’t need to use your system for trading.
2) Faster execution of your orders – Since generally virtual private servers are maintained by big companies who generally have a very good internet connection your orders will be executed faster than from your computer.
3) Expert advisor – As I mentioned above you can install an expert advisor on the metatrader platform account in your remote system, start it and you can shutdown your computer.
4) This is very useful in countries where people generally have a low internet connection speed.
FXCM is offering free virtual private server for their customers who have metatrader account. If you are a customer of FXCM but not using metatrader you can open a new account with them or transer your account to metatrader account to use this private server. If you don’t trade with FXCM but want to use this virtual private server you have to open a new metatrader account with FXCM.
Currently FXCM is offering free private virtual server for 12 months. If you want to use it after that you should be an active trader. Active trader means you should make at least 10 trades per month according to FXCM. You can use any expert advisors including scalping EAs. So if you are an FXCM customer go ahead and take advantage of this.
The following is the AUDNZD daily chart as of Jan. 24th, 2010 around 10 PM. If you observe the graph you can see that it is going in a channel.
1) The chart has reached the upper channel line.
2) The CCI has reached the overbought region and now it is trying to cross below the overbought region (+100 line).
3) Stochastics almost reached the overbought region.
4) Moreover a pin bar formation is formed (a candlestick with no body at all – I call every candlestick with no body as a doji).
Because of the above reasons I think it’s a good opportunity to enter a sell trade. What do you guys say?
Check the following charts.
AUDNZD daily chart:
audnzd daily chart
AUDNZD Doji Formation:
audnzd doji formation in daily chart
The following is the daily chart for USDJPY as of Jan. 21st, around 11PM EST. If you observe the chart you can see that there are two resistance lines and the chart has crossed the trend lines with two strong bearish candlesticks. The second one is not completed yet. But if the second one is completed with a strong bearish candlestick I think its a good opportunity for a sell trade. What do you guys say?
USDJPY Daily Chart
The following is the four hour chart for EURJPY as of Jan. 17th around 2 AM EST. There is a CCI indicator I placed below the chart. If you observe the chart you can see that there is CCI divergence. The price has come down than the previous low but the CCI didn’t. This formed a divergence. Moreover the CCI has crossed above the oversold region which is -100 line. So I think this is a good opportunity to enter a long trade. What do you guys say?
EURJPY Four Hour Chart:
The following is the AUDUSD four hour chart as of Jan. 17th, around 11 PM EST. If you observer the chart you can see that the chart is moving in a channel with a resistance line at the top and a support line at the bottom. Currently the chart is the bottom support line. And if you observe the CCI it is in the over sold region and it trying to cross above the -100 line. And also if you observe the Stochastics it is also in the oversold region. It is also trying to cross above the 20 line. At this point if a bullish engulfing candlestics are formed I think its a good opportunity for a long trade. What do you guys say? Also observe the hourly chart.
AUDUSD Four Hour Chart:
AUDUSD four hour chart moving in a channel
AUDUSD Hourly Chart:
AUDUSD Hourly Chart
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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