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.
Swing Trading Trends -Knowing When To Enter The Trend
March 10, 2010 by Forex Guide
Filed under Forex Market
Get these Correlation Trading Cheatsheets FREE. Download this Forex Swing Trading Powerful FOREX-4 Pack End of Day Trading Training Kit FREE! This training kit has 100+ page PDF and Videos. You won’t find this type of training anywhere else. Read this shocking 40 page FRWC Brutal Truth FREE Report on forex robots just now! This is a must read report that has got premium content that you shouldn’t miss! One of the best swing trading strategies is to ride a trend. Trading trends tends to be more profitable as compared to trading ranges. The beauty of trend trading lies in the fact that you don’t need to manage the trade a lot. In an uptrend the currency pair or the security price will continue to rise.
Entering a trend early in the first few days allows you to enter when the risk is lowest. Entering a trend when it is already weeks or months old raises the chance of your getting on when you should have been getting off. The difficulty in trend trading lies in identifying when a trend has started and knowing when to get off quickly when the trend is over.
So the biggest risk for a trader engaged in swing trading trend lies in the possibility of entering a trend when it is just about to end. Someone has described this phenomenon of entering late in the trend as like a dog chasing speeding cars. It may be fun for sometimes but eventually the dog will get run over by a speeding car.
You need to learn how to minimize your risk of riding a crashing trend. You need to develop a swing trading system that lets you only enter trends at the right time and stops you from riding trends about to end. How do you identify that you are about to ride a beginning trend or an ending trend?
You should use an ADX indicator and only enter if the reading is above 20. However, in all aspects of trading nothing is 100% sure. The best thing you can do is to put the odds in your favor. You can use charts or technical indicators. Charts are much easier. Especially if you know the typical Candlestick patterns that signal a trend reversal like the hanging man and the hammer, you can know for sure that the trend is about to reverse and a new trend is about to start.
You can also use moving averages or MACD. Another approach in swing trading trends is to wait for the trend to pause and only enter on the day of strength or weakness. Whatever, method you use, make sure you only enter the trend after you have confirmed the trading signal. Combination of indicators and candlestick patterns can be highly effective in telling you when to enter the trend and when to exit.
SRs Trend Rider Vladimir Ribakov
January 17, 2010 by Forex Guide
Filed under Forex Strategies
Discover a Forex Trading System with an ROI of 2956.16% per month. Learn Forex Nitty Gritty. Try trend trading with sRs Trend Rider Vladimir Ribabov. The World’s First and Most Profitable Forex Hybrid-Strategy:
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Vladimir Ribakov is a professional Forex Trader aiming to change the way we all know the Forex market, and he puts his reputation on the line…He waited until the beginning of the New Year to mark the beginning of his activity, to symbolize the beginning of a new era in Forex trading. I have seen many new products and strategies in the last several years but it seems that Vladimir’s new strategy is really something of a different breed. Let me tell you a little about the system:
The system is what Vladimir has been using for several years to extract impressive profits and support a life of high quality for his family. It is a highly accurate strategy that can be used all day and with almost all currency pairs. It is set to change the ugly picture of today’s market, where home-based traders lose their accounts each and every day. It’s not just “stupid” people who are losing. 90% of all traders don’t make it because they are armed with promises instead of being armed with the right tools and education.
Since Vladimir is a wizard when it comes to the Forex market he has been using this strategy without any additional tools. However, for us, he has perfected it and created 4 components to ease our use of his system. Here is a short description of his 4 additional trading tools which come with the system:
1. The sRs Indicator – this is a simple to use but highly potent indicator developed by Vladimir. You don’t actually need to sit all day and watch this indicator, because it is automatically connected to the alert signal that you also get with the package.
2. Customized Template – a special template that eases and simplifies the use of the system.
3. The sRs Alert tool – an alert tells you when to be prepared to enter a trade. This tool is very sophisticated and accurate and relies on Vladimir’s proprietary algorithm.
4. The sRs Money Management and Trade Management Robot – Vladimir uses this system together with his TWO-PHASE smart management system. Instead of relying on users to use it correctly and be negatively affected by emotions, he programmed his money management and trade management rules into a robot (Expert Advisor) to apply after you execute the trade according the system rules.
I think that’s a fair enough description, although this is definitely even more impressive than what I can explain in this email. Suffice it to say the beta-testers have doubled their account in just 1 month of easy casual trading! The rest you can find out on Vladimir’s webpage. It seems to me that if Vladimir is willing to risk his name and reputation, then we need to give him a chance and see what he has prepared for us.
Trend Trading SRs Trend Rider
January 16, 2010 by Forex Guide
Filed under Forex Systems
Meet sRs Trend Rider Vladimir Robakov and extract at least 100 pips each time you trade. Learn this 10 minutes a day highly profitable Swing Trading Strategy that works for forex, stocks and futures. Know these Forex Charts! The New Year brings with it a lot of promises and hopes…but the big question is will it be a successful trading year for YOU? Well, not one but three REAL-MONEY live account test have given me the ultimate proof that this is going to be a fantastic trading year for those who’ll be quick enough to get their hands on Vladimir’s secret system.
Vladimir Ribakov is a veteran Forex trader who already achieved his trading goals, enjoys the life he managed to provide for his family, and now looks to use his experience to help other traders achieve financial freedom. He waited until the New Year to release his secret strategy and he puts his reputation and name that this is something that we haven’t seen until now.
Vladimir describes his strategy, the sRs Trend Rider, as a “Hybrid” strategy in the sense that it combines an accurate manual strategy he has been using for a long time, with additional trading tools that make it almost fully automatic. This unique combination achieves three goals:
1. Enjoys all the advantages and none of the disadvantages of both manual and automated trading, while keeping us traders in full control.
2. Stops the time waste and emotional strain that’s usually associated with manual trading.
3. Provides accurate and dependable trading results.
During the years Vladimir has perfected the sRs Trend Rider and added two important components. A proprietary indicator to pinpoint the exact time to enter the market combined with a sophisticated customized template and alert mechanism. With these two great trading tools, Vladimir has manages to extract over 100 pips on each trade he takes. Vladimir is using his proprietary TWO-PHASE Money Management technique, that has proven itself over and over again, and is being revealed for the first time. Until now, it sounds like this strategy requires some actual work to operate it, and that’s true.
However, when Vladimir has agreed to finally release to the public this great and unique strategy, he has taken this strategy not one but several steps forward turning it to almost 95% automatically by adding a special trade management robot, which is like your secret helper that does all the hard labor for you. So, in addition to his accurate manual strategy you get 4 independent components which work in harmony to ease your trading process.
Before he unleashed this strategy to the public, Vladimir has recruited 3 random beta testers from among his subscribers to test the system. They were required to learn the system, try it and then open a live real-money trading account at the end of November. They traded these accounts and provided live public updates of the accounts verified by the MT4LIVE.COM site. To see the complete results of the beta testers, use the above link!
5 Trading Strategies For Trending & Range-Bound Markets
January 13, 2010 by Forex Guide
Filed under Forex Strategies
Get these FREE Forex Scalping Cheatsheets. Learn this 10 minutes a day Swing Trading Strategy that works for forex, stocks and futures and is highly profitable. Know these Forex Charts!Are you one of the HUNDREDS that Missed our FREE Webinar last night? Find Out Everything About TODAY’S webinar ENCORE…NO REGISTRATION REQUIRED! I hope it wasn’t our fault if you missed the webinar of the year. We had some “over crowding issues” that literally shut hundreds of people out of last night’s free training on:
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But I have some good news…TODAY, Friday January 8 at 1:00 PM EST/12:00 NOON CST we play the ENCORE of last night’s 60 minute training webinar! Find out about:
- How to trade Trending Markets with 87% accuracy…
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- How to have the SMOOTHEST equity curve…
- I’ll give you clear, unambiguous directions that explain in perfect detail exactly what the trader must do to make money trading…and that’s just a little taste of the Valuable Information that we shared with everyone who was able to get on the webinar last night! We maxed the our webinar account and the streaming simulcast last night and we are still getting registrations today!
Don’t wait on this one, you might not get another chance! We share ONE power secret in minute 23 that can instantly DOUBLE your trading profits. Pay attention to it: My customer support tells me that they have received more than a few emails from people who missed my “2010 Resolution” webinar Thursday night because of shopping, kids plays, etc. I really don’t like to put up videos of my webinars, BUT, in this case I’m going to make an exception…Click the link below to watch the video of my 60-minute training webinar:
NOTICE 48 hours Only: I’m only going to leave this link up for the next 48 hours. That should give you more than enough time go through: “5 Trading Strategies for Trending & Range-Bound Markets” Here’s just a taste of what you’ll learn during this 60 minute
FREE training:
- How to trade Trending Markets with 87% accuracy…
- How to trade Range-Bound Markets with 79% accuracy…
- The ONE power secret I use to literally double my trading results.
- An under-utilized TRICK that virtually removes risk on any trade…
- How to maximize your profits in minimum time..
- How to have the SMOOTHEST equity curve…
- I’ll give you clear, unambiguous directions that explain in perfect detail exactly what the trader must do to make money trading.
…and much much more…
Click the link below in the next 48 hours and you will be able to immediately access my NEW training “5 Trading Strategies for Trending & Range-Bound Markets”: Remember, you have 48 hours from NOW to watch and learn my NEW “5 Trading Strategies for Trending & Range-Bound Markets” webinar video. Those who take action will be glad they did, click the below and be ready to take notes:
