Your Questions About Indicator Forex Signal

December 26, 2011 by Forex Guide  
Filed under Forex Account

Ken asks…

In FOREX: Why does the MACD line appear to crossover MACD Signal line at different points?

Why when I look at the FOREX EUR/USD chart using the MACD indicator, the MACD line appears to crossover the MACD Signal line and be at different levels above or below 0.0000 when I view the chart in different time settings? For example, when I view the EUR/USD on a Daily chart the MACD looks to be below 0.0000, in a down trend, and crossing under the MACD signal line and when I view the same chart in a 15 min frame the MACD appears to be above 0.0000, above the signal line and trending upwards? Why is this?

Forex Guide answers:

Hi!! What a nice question!! Not everybody wanna know really how MACD works!!!
It will be different because MACD (Moving Average Convergence-Divergence) is calculated based on 3 Moving averages… Custom setting 12, 26, 9… Apply to the close… That means.. That it calculate the average of the close value of the last 12 bars periods or candles… Also the average of the las 26 candles and also the average of the close of the last 9 candles… Si the close of a bar on a 15 mintue chart is different that the close of a daily chart… Thats why the value of the moving averages are different!

If you wanna completely understand how MACD works you can go to

http://en.wikipedia.org/wiki/MACD

cheers

Chris asks…

Forex psychology?

It is possible to trade forex based on news and indicator? I want to trade forex by the information by news of either buy or sell, and then I analyze by using 9 indicator. If 5 signal sell, 4 signal buy I would buy. Can I make profit, regardless high and low?
Sorry, it is I will sell if the 5 indicators signal sell, 4 signal buy, not buy as I had mistakenly written above.

Forex Guide answers:

News trading can be tough especially if the broker widens the spreads.I will wait till the markets settle down after news and stay with the trend.

James asks…

I trade in the Forex Market using a MA Crossover. I need help on how to confirm that cross is one to enter.?

I trade in the Forex Market. I use a Liner Weight Moving Average Crossover. I have a 12 period and a 24. When the 12 crosses down through the 24 I have a signal to go into a sell. When the 12 crosses up through the 24 I have a buy signal. Where I need help is when my moving averages cross what other indicators or analysis can be used to help confirm that a crossover will be a good trade to enter on?? I would also like some help with finding out after the trade is in what to look for to see when its time to exit the trade?? Thank You

Forex Guide answers:

Trading is an art. There is no formula. Everyone successful trader develops their own trading systems.
From your question… I’d say you’re 3-5 years away from being successful (that’s actually average, for the few that succeed).

Spend more time on money trading management/risk control. In Forex 30% of your success is on Technical Analysis….. The rest is how you manage your trades.

Richard asks…

I seriously think I can make a fortune in forex trading?

Well i have been learning about stock trading for 6 years and have developed a good system. Forex is a little different. I started last january. i blew up within weeks because i was uing 400:1 leverage. i also wasent cutting my losses. Anyway through some experience i think i have it a ltitle figured out. What i have to do is wait patiently for a trend to form and act on it. I have about 500 in my account right now trading 50:1.. i cut my loses at 20 pips and let my profits run. until there is a reversal. ii incorperate the fibonacci retracement signals amounst a few ocilattors/indicators. I also keep an eye out on the news that would affect a currency pair. I have also read a few forex traders turning a couple grand into 10s of thousands their first year. I honestly believe this can be me.. can any experienced forex trader advise me?
uhh its actually a minus sum gamethe winner does not make all the money with slippage and commissions look up alexander elder.

Forex Guide answers:

Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus. You are being mislead by people who are trying to make Forex appear easy, when it is horrendously hard for people to make money in it in the long run.

You’ve already tried one strategy and you’ve blown up. You will probably find your new strategy blows up eventually too. Forex is a treacherous game.

Forex is similar to what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.

Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.

There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.

Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: “Go to Forexcrap,com/q2347.” The “q2347″ is a signal to the Forexcrap site that you are being referred to them by “q2347.” If they sell something to you, “q2347″ gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.

I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.

Read the warnings in the links below:

Thomas asks…

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Forex Guide answers:

Thanks I learned in Forexnext.com and earn $142 in my first trade. Thanks a lot.

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Figuring Out Market Range And Trend

January 26, 2011 by Forex Guide  
Filed under Forex for Beginners

A trend is described as the general route of price movements. An uptrend exists when prices frequently gain higher highs, or as they’re additionally referred to as “Higher Tops” and higher lows (bottoms). A downtrend is present when prices slope downwards as a result of a series of lower highs and lower lows. The main goal of trend trading is to enter as near as it can be to the formation of a new trend and keep along with it until it breaks down.

A range is created when price constantly bounces on a period of time between an upper level and a lower level. Range trading occurs when price is trading in a sideways or horizontal channel which is capped by a ceiling or resistance and a floor or support.

Currency pairs normally oscillate regularly in between being range-bound or trending. With this former, traders usually follow a quick “buy low, sell high” approach, whereas with the latter they attempt to trade with the trend. Detecting if the market is range-bound or trending is absolutely not so easy that can be costly if concluded incorrectly. One of the very popular methods of identifying the state of the market is using the Fibonacci Retracement levels.

If price is either in an buying (ascending) or selling (descending) channel and after that it begins to pull-back by a portion of its initial move, then this can be described as Fibonacci Retracement. Usually as it reverses direction, price eventually finds support (buying channel) or resistance (selling channel) at key Fibonacci levels before it continues in the original direction. These levels might be identified by drawing a line between lowest and highest points from the original movement right after dividing the vertical distance with the key Fibonacci ratios of 38.2%, 50%, 61.8%.

As an example, think about a significant rally to the upside that then starts to reverse. If price then passes through all 3 commonly used Fibonacci levels i.e. 38.2%, 50%, & 61.8%, this is a strong hint that the trend isn’t growing because support wasn’t found as any of these levels.

This kind of action is generally signs that the buyers usually are not in control of the marketplace. This fairly equal distribution of power between the buying and selling forces produces increased possibilities that price will stay at a range-bound market environment until conditions alter.

In contrast, trends exist if there is an uneven distribution of buyers and sellers that forces the market either to new highs or lows. For instance, the market again rallies towards the upside but now finds another resistance on the 50% Fibonacci level. This action indicates that the sellers have gained control of the marketplace and, the result, an ensuing downtrend is very possible.
As trend trading generates more losing trades than winning ones, typically around 60% of the trades end at a loss, it requires rigorous risk control.

Most Money Management strategies propose that traders must not risk more than 2.5% from the total capital accounts on any given trade. If traders use high leverage, they’ll likely leave their accounts vulnerable. On the other hand, traders must psychologically steel themselves to the fact that employing very tight stops may result in 10 or sometimes 20 consecutive stop-outs before they succeed in achieving a winning trade with strong momentum and directionality.

True range traders really don’t care about direction. The fundamental assumption on this . sort of trading is that price will usually come back to its original starting value in spite of how far it travels. This is sometimes referred to as “mean reversion theory”, this means price often revert to the mean, even though they’d travelled a considerable distance up or down the chart.

As an illustration, assume that that EURUSD is trading at 1.4000. Classic range traders may then prefer to short the pair then every 50 pips higher if the market move in the opposite direction to their preferred one. These traders will likely then arrange to close their trades at a profit everytime price moves 25 pips below the levels of activation. However, to carry out this tactic successfully requires traders to own a lot of money. One solution for this problem is to implement less leverage by using mini or micro Forex accounts. To find a reliable forex robot review website check out forex robot reviews.

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Leo Trader PRO Is Live-In Just Minutes, You Could Be On Your Way To Making 113% On Autopilot!

December 27, 2010 by Forex Guide  
Filed under Forex Robot

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Pips4Idiots Collective Intelligence Technology!

December 13, 2010 by Forex Guide  
Filed under Forex Robot

Download this Pips 4 Idiots Trade Assistant FREE. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Try these Forex Signals from two top gun traders. I haven’t seen heat surrounding a product like this all year! After you watch the video, when you sign up you’ll see that there are more than 500 blog posts there already! Joe Simpson is pulling out all the stops here. Everyone who signs up is automatically entered into a draw to win a free copy of Pips4idiots. Now, you might be wondering why there’s so much hype surrounding this product. Go have a look and you’ll see:

He’s calling this “Collective Intelligence” Technology. I have no idea how it works, but I do know what it can do. $4,736.31 profit within a month on a $5,133 deposit. He even has a video that shows the software in action. It’s truly amazing. Any one of us might be tempted to call this man a liar, but he’s so confident about this that….wait for it….he’s given out his INVESTOR PASSWORD…so that you can log in to his very own account and look at everything for yourself.

There’s no place to hide once people have got that kind of access. You’re going to see everything! There’s tons more proof on the page but the investor password is the proof that beats all others. It’s the truth that 1 out of a hundred guys are willing to share. You’ll also find a free special report and the trade assistant from yesterday. This is going to be a good one, and there’s so much focus on this right now… I just know there’s going to be a lot of disappointed people come launch day. Not everyone will be able to get their hands on. It goes live on Monday. There’s a lot going on today so pay careful attention to this. Yesterday I told you about Joe Simpson. This software that he’s got is called “Collective Intelligence” technology. I’ll be quite honest with you, I’ve never heard of anything like this before.

“What’s the big deal?” – I’ll tell you. $4,736.31 profit within a month on a $5,133 deposit. It’s okay if you’re having a hard time believing that. What if I told you that he’s giving out his OWN investor password so that you can log in to his account and look at everything yourself? Profits and losses, nothing is hidden. That’s how confident this guy is. I have to tell you, this fact alone already has me sold. Hardly anyone ever does this, and when they do…you know that you have to sit up and take notice.

He’s got a new video there where he actually shows you the system in action as it works. You’ll find even more on that page as well. He’s got the trade assistant from yesterday, a special report and a ton of other proof that shows just how powerful Pips4idiots is. That’s not even the end – Joe is going the ‘guns blazing’ route for this launch. When you sign up, you’ll be automatically entered in to a draw to win a free copy of Pips4idiots! Stop hanging around, get on over there!

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Forex Trading – Using Fibonacci Levels

June 9, 2010 by Forex Guide  
Filed under Forex Trading

Leonardo Fibonacci was an Italian mathematician who lived in thirteenth century Italy. He was not the first to observe repeating patterns and ratios in nature however his studies led to our understanding and the application of Fibonacci in Forex as it is today.

From his studies he discovered a particular number series that was applicable to the natural proportions of matter it in both nature and the universe. forex broker

The Fibonacci number series is a series of numbers starting with 1. Each subsequent number is created by adding together the two previous numbers. Therefore the second number would be 1+1, the third number 1+2, the forth number 2+3 and so on. From this sequence (1,1,2,3,5,8,13,21…) he identified what is known as the Golden ratio. If you divide any number in the series after 3 by the next highest number the resultant answer is 62.5. The higher up the number sequence you carry out the calculations the closer the ratio comes to 61.8%, which is considered the ‘Golden Number.’ forex broker

The ratios applied in Forex trading make use of this Golden Number and also set out additional incremental stages of this ratio. These are 23.2%, 38.2%, 50.0 % and 61.8%. The low of the move is referred to as 0.0% and the end of the move is referred to as 100.0%

These levels are used in Forex trading to project both price contractions and price extensions within the market.

1. Fibonacci retracement levels

Retracement levels are defined areas, based on the Fibonacci ratio, which aim to identify where the market is likely to pull back to after a move. In an up trending market these are also referred to as a Fibonacci support level. In a down trending market these will be referred to as a Fibonacci resistance level. These provide the opportunity for traders to position themselves to enter the preceding trend after a retracement has competed.

2. Fibonacci price extension levels

While Fibonacci retracements can be used to profit following a market move, Fibonacci price extensions are used to predict how far a move is likely to travel. Again the Fibonacci ratios are applied but in this instance they are used as price targets for the trader to take profits.

Fibonacci levels tend to work due to the expectation of many traders watching and entering the market at these points. Therefore it can be argued that to some degree these levels become a self-fulfilling prophecy.

You can calculate Fibonacci levels by entering the high and the low of a move into a Fibonacci Calculator and apply them to your own charts.

Fibonacci levels make a useful addition to the traders’ toolbox. As with all technical methods it is best to seek confirmation by the use of additional indicators rather than simply relying on Fibonacci methods alone.

Find out pragmatic knowledge about the topic of forex investment – please make sure to study the web page. The times have come when proper information is truly at your fingertips, use this opportunity.

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