Forex Trading Course Lesson 2 Basics Of The Hanging Man

By Dragan Lukic

One of the basic candlesticks you will study in your

Forex trading course

is the Hanging Man. Whilst we focused on its cousin (the hammer) in our last article, here we will focus on the hanging man, its characteristics and how to use it within your trading strategies you have learnt throughout your

Forex training

.

[youtube]http://www.youtube.com/watch?v=NzfmT4vGXZY[/youtube]

The Hanging Man

In terms of look and feel the hanging man and the hammer are identical. The main difference is however, that the hanging man appears at the top of an up-trend rather than a down-trend. The reason why it is called a hanging man is because the candle appears to look like a person with their legs hanging beneath their body. Similarly to the hammer, it is not important what colour the the hanging man’s real body actually is. What is important is that the real body is near the sessions high. That is, the hanging man’s open or close need to be near the session’s high as long as it creates a ‘small’ real body at the top of the candle.

As you will learn in your Forex trading course, the hanging man also has to have a long lower shadow. This shadow represents the state of the market throughout the session where the bears have created a sell-off at some point but the bulls stepped in and pushed the stock further upwards. In order to qualify as a hanging man, the stock either closes slightly below the open or slightly above the open. If a long upper shadow appears, the candle is not a hanging man.

Throughout your Forex training you will adopt your own techniques but the basic rule when using the hanging man in your Forex trading strategy is to wait for a confirmation candle. Different Forex traders have different opinions about the type of confirmation that you should look for but we are going to stick to the basic rule of a confirmation candle that closes beneath the hanging man’s real body. However, do not dismiss that some Forex traders are taught throughout their Forex training to only use a candle that opens and closes below the hanging man’s real body. The point is that, just because you see a hanging man at the top of the up-trend does not mean that the trend will change direction. As we mentioned in our prior article (Forex Trading Lesson 1 – Basics of the Hammer) the trend can simply have a rest for a few sessions and once it builds up the energy, continue trending in the same direction. If you find yourself in this position, you must take yourself out of the Forex market straight away. If you don’t you will lose money. This is why a confirmation candle is of up-most importance.

Imagine if you were following the trend and bought the currency pair on the hanging man’s open or the close. You are literally left there hanging in the Forex market. The trick is to make sure the hanging man is at the trend’s high or even at an all-time high and once the confirmation candle comes into play, the Forex market has every chance of changing direction. To give you more of a clue the market may also provide prior few candles with long upper shadows. That means that the selling pressure has begun and bulls are starting to get nervous. At the same time, try and notice if the slope of an up-trend is decreasing. If it is, the up-trend is starting to stall and the bears are starting to acquire the control. How long for, will depend on the surrounding factors but once a hanging man and a confirmation candle appear in this type of scenario, it is certainly a trade to take notice of.

About the Author: Forex Training Worldwide train people around the world how to trade the Forex through our online

Forex trading course

. If you want to know how our

Forex training

can help you make money from the markets please visit the Forex Training Worldwide website.

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Forex Trading Complementing Strengths Of Adx And Rsi

Forex Trading-Complementing Strengths of ADX and RSI

by

ForexAbode.com

In this article we will see how the Average Directional Index (ADX) and Moving averages may indicate that we can take a trading position and Relative Strength Index (RSI) and MACD crossover to indicate the entry/exit point.

[youtube]http://www.youtube.com/watch?v=ZjDbJQKDXCY[/youtube]

In Forex trading the volatility in general is quite high and the trends can change very dynamically. Uptrend to sideways move to downtrend to uptrend may take place even during one life cycle of a trade. Of course we are not talking about trades where we enter and close within hours. Combining selected technical indicators comes in handy is such dynamically changing markets. It is always better to combine the chosen technical indicators for the trading decisions. While we talk about combining we are not talking about selecting similar indicators to cross check on each other. Before we take our trading decisions, we need to analyze the Trend situation: – Is it a strong trend? – Is the trend becoming stronger? – Is the trend becoming weaker? – Is the market running sideways without a clear trend – It has been a trend but a reversal may be on the way – A break out from the sideways movement is probable Trend identification is one of the important starting points before taking a position. How to identify the trend: ADX: ADX above 25 and rising EMA (for uptrend): The prices closing above Moving Average (say 5 to 20 periods for short term trading and 20 to 60 periods for medium term trades). So the price action is above the moving average line and we have a rising moving average line. And this shows a uptrend. ADX being the same if price action was below the MA line and if the moving average line was dropping then it would have indicated a downtrend. Now once we identify the trend situation we need to decide on the entry and possible exit. Apart from entry we also need to think about stop-loss levels and targets for taking profit. Let’s start with entry point. As far as entry point is concerned we can use various crossover methods like cross over of MACD with signal line or shorter period SMA (simple moving average)or EMA (exponential moving average) crossover with longer period of the corresponding moving average line. But lets bring in RSI (Relative Strength Index) here. RSI indicates overbought (hence probable selling levels) and oversold (hence probable buying levels). But will overbought and oversold indications work when the trend is very strong? Well the answer would be “Not”. But if we apply RSI with the knowledge of the trend as mentioned above then we may be able to take better decisions. So let’s see how to combine technical indicators. We are talking about combining the indicators which we have mentioned above i.e. ADX, Moving Averages and RSI. Lets consider the following scenarios: – Strong trend – Trend becoming stronger – Trend becoming weaker – Market is running sideways – A reversal may be on the way – A break out from the sideways movement is probable 1) Strong trend: ADX is above 30 and rising further. Price action is continuously over 20 periods EMA and EMA line is rising. The above indicates a strong uptrend. We can not wait for oversold and overbought signals from oscillators such as RSI in strong trends as the price can be in overbought area for long in strong uptrend and vice versa. So how to go about entering the market in such situation? 1) Entry: Buy when RSI (Relative Strength Index) goes to the range of 68/71. 2) Exit: Exit the buy position i.e. take profit when ADX stops rising and/or RSI drops below 50 and/or price action closes below the 20 days EMA. The take-profit targets mentioned are indicative as the exit depends on market situation/volatility and the decisions need to be dynamic. In strong trends it is advisable to use trailing stop-losses and rising take-profit levels. 3) Stop-Loss: As mentioned above its is better to use trailing stop-losses. Stop-losses levels even with trailing levels would depend upon the volatility. if the price movement is quite volatile then the stop-loss margins would be wide. We may decide to put a stop loss a few pips below the previous candle’s low. We can also use SAR (stop and reverse) indicator to indicate the stop-loss levels. As mentioned if the market is very volatile then the stop-loss margin has to be more otherwise even if upward movement continues, the narrow stop-loss margin may close the position with a loss. . 2) Trend getting stronger: (lets consider an uptrend) ADX is above 25 and rising. Price is closing over 20 periods EMA and EMA line is rising. This gives an indication that its an uptrend and the trend may become stronger. 1) Entry: Buy when RSI (Relative Strength Index) goes below 50 mark. 2) Exit: Exit or take profit when ADX stops rising and/or RSI goes below 40/42 and/or price action closes below the 14 days EMA. The take-profit targets mentioned are indicative as the exit also depends on various factors and market situation/volatility and the decisions need to be dynamic. 3) Stop-Loss orders: Use trailing stop-losses. Stop-losses would depend upon the volatility. if the price action is very volatile then the stop-loss would be wide. It could be a few pips below the previous candle’s low. As mentioned if the market is very volatile then the stop-loss margin should not be very close to the entry level otherwise even if upward movement continues, the narrow stop-loss margin can close the position with a loss, if price takes some corrective action. Stop loss could be a few pips below the previous candle’s low. As mentioned in above example we can use SAR to indicate the stop-loss levels. 3) Trend getting weaker: ADX is above 25 but not rising. The 20-period EMA is getting flatter. 1) Entry: Buy when RSI (Relative Strength Index) goes below 50. 2) Exit: Exit or take profit price closes below 14-period EMA. The take-profit targets mentioned are indicative as the exit also depends on various factors and market situation and volatility and the decisions need to be dynamic. 3) Stop-Loss orders: Use trailing stop-losses. Stop-losses would depend upon the volatility. if the price movement is quite volatile then the stop-loss would be wide. It could be a few pips below the previous candle’s low. In the above examples we have considered an uptrend. During the downtrend we can take short-positions when the EMA line is dropping down and price action remains below EMA, which is opposite to uptrend. ADX readings should remain same as above example because ADX reading only indicates the strength of the trend but not the direction. And we can take short-position when RSI (Relative Strength Index) moves over 50 mark.

For more details please check

ADX

,

RSI

and

MACD

pages of ForexAbode.com.

Article Source:

Forex Trading-Complementing Strengths of ADX and RSI

A Few Things That You Should Know Before Getting Into Forex Trading

A Few Things That You Should Know Before Getting Into Forex Trading

by

jenny christopher

People who are interested in making quick money in a legitimate way by investing it somewhere can choose Forex Trading. The term Forex is nothing but an abbreviation used for Foreign Exchange and the business of foreign currency is what is known as Forex Trading. This form of investment can appear to be very complicated and difficult to people but this is the case only with beginners. People who have a vast knowledge about it are the ones who make huge profits and returns on their invested money. This form of investment is a great way to make money without losing much.

[youtube]http://www.youtube.com/watch?v=PsCOjBXUlmA[/youtube]

The popularity of trading in todays time is mainly because of the advanced technology which made people to take up this trading business. With the development of technology, investors can deal with several online Forex platform which exists in the market today. The internet has also played a major role in the advancement of the trading business. There can be found various brokers and agents online who take up the orders placed by the investors. All this is done by the online portal as anyone can open an account. This is a great way for people to make use of their Forex accounts for trading purposes. A very common term which people come across during training system of Forex is Forex platform which is basically the site where traders do their business and also get information about every trading deal. If you want to make profits out of your investments then it is extremely important to understand the concept of trading platform. There is no dearth of these platforms as there are many available in the market. With changing times trading on the Forex market has become extremely easy. But beginners should always be cautious when starting with investing money in the market because little knowledge in this market can eat away all your hard earned money. Therefore, it is always advised to do a lot of studying and research before entering into the Forex world. The training system provides all kinds of basic information about Forex trade. For instance, you will be informed about facts like Forex Currency Trading is open 24 hours a day. This is different from other stock markets in the world because they work only during some specific hours. The reason it works 24 hours is because every country trades on it and so it is open throughout the day for people to work according to their time zones. The most important feature of an online Forex platform is that an investor can purchase and sell currencies and at the very same time get all the related information in least possible time. There are screens where one can easily view the charts explaining the market and status of their investment. All this helps trader to access his platform conveniently. However, it is very important to choose a platform quite cautiously and carefully because the trading depends on this. Also, one should have adequate knowledge about the way the market works.

Winners Edge Trading provides ,

Forex

,

Forex Trading

, Training System,

Forex Platform

, Forex Trading relating to forex trading and the currency markets.

Article Source:

ArticleRich.com

Are Forex Robots A Scam?

By Pete R. Graham

If you are unfamiliar with Forex Robots, then you probably are even more uneasy about whether or not the Forex Robots are a scam. However, if you are so unfamiliar with them that you do not even actually know what they are, then here is what you need to know about Forex Robots.

The use of Forex robots has grown in popularity as more and more individuals are realizing the profits that they can make by trading Forex. However, despite how good the program is, it can leave you in suspense. Many individuals approach the best Forex robots, thinking that they just can’t lose. If that were the case, the entire world would be trading Forex rather than working 9 to 5 jobs.

Forex Robots are electronic machines that act as any other currency exchange broker would. However, the obvious difference is that the force behind exchanging your currency is a robot instead of an actual human being. A lot of people are hesitant about using the robots because it is easy to be scammed by technology. However, do you have to worry about this when you are using a Forex Robot?

[youtube]http://www.youtube.com/watch?v=WstJM_aNSj8[/youtube]

Can you be scammed?

The truth of the question is yes, you can be scammed using one of these machines. However, there are only certain ways that you can be scammed. A lot of people tend to think that it is the fault of the machine when they receive some sort of mistake from these machines. However, you have to think deeper than that. The machines only do what they are told to do. Before you put your currency in the hands of a machine, think of where you are putting your currency. Think about the hands that are the driving force for that machine. Who is responsible for the machine could determine whether or not you get scammed.

A lot of people look at it like there are good Forex robots and bad Forex robots. The fact of the matter remains that even the best Forex robots can be operated in a manner that goes against how the machines are supposed to be operated.

Forex Robots are only a Scam if you let them be

The reason behind this statement is because there is no such thing as avoiding scams by using the best Forex robots. The robots are only a scam if someone hinders them to be that way. So, if you are using a machine that you are unfamiliar with or that is operated by an unknown source or a source that is not well known, you may want to keep a hold on to your currency.

You can get scammed by a robot, but the truth behind this remains that you can only get scammed by a robot if you allow yourself to. There is no such thing as getting the best Forex robots, instead, you need to look for the best driving force responsible for the Forex robots that you are about to use.

About the Author: MBA Student, Self-trained forex trader with 2 years on the currencies market. Pete spends long hours understanding the algorythm of each and every forex robot and predict how they will trade in a real account, and follows live trading results at

Forex Robots

Source:

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Pros And Cons Of Blackberry Forex Trading Software

By Mike Goodworthy

Today, the technological advancement has enabled almost everyone to engage in forex trading with ease. For example, if you own a blackberry mobile phone, you can enjoy blackberry forex trading anytime, from anywhere and capitalize on opportunities. Forex trading has transitioned in a smooth manner to the mobile platform offering customers an enhanced trading experience.

From your mobile phone, you can access information and monitor your investment from anywhere in the world. In order to engage in an effective blackberry forex trading, it is important to first identify the best forex broker offering a platform that supports mobile trading.

It is recommended to go through the list of features offered by the forex broker before signing up. Mobile Forex trading is offered today by most of the prominent brokers and finding a good one is not a difficult task.

[youtube]http://www.youtube.com/watch?v=AtH0lVRAwlc[/youtube]

Purchase the best mobile device that supports forex trading. Blackberry forex trading is most popular today due to its user friendly interface and ease of operation. Before you start forex trading through your Blackberry mobile, you must first download the Java based software to the device. To allow you to access vital information and enable you to trade, you will be connected to the trading platform by the software.

Blackberry forex trading is easy as all blackberry mobiles have adequate bandwidth for high speed internet access. These mobile phones are also Java compatible and make it easy for you to download the Java program from the website of your forex broker. These Java programs take up little memory space and will therefore not have any major impact on your mobile phone. This ensures that there is no interference with any other function on your mobile phone.

As you venture into blackberry forex trading, it is important to keep in mind a few disadvantages too. Mobile forex trading offers you limited market information that may not be sufficient to make informed, risk-aware trading decisions. This is why some people just use mobile trading platforms to keep track of current prices and keep themselves up-to-date. Of course, it is easy to trade instantly through your mobile if you identify a wonderful opportunity.

Security is another major concern in mobile trading. Mobile devices are vulnerable to theft. There is also a huge risk of damage to your forex portfolio endangering blackberry forex trading data. The small size of mobile phones makes it easy to steal them and leaves them vulnerable to forex trading credential access to others. This can result in a huge loss and it is therefore absolutely necessary for you to protect your blackberry forex trading software with necessary security measurements including a strong password.

If you are careful enough with your mobile phone and use it discreetly enough, then you can enjoy the exciting forex trading experience on your state-of-art mobile. Choose one of the best forex trading software that offers a host of interesting and value added features to enhance your blackberry forex trading experience and maximize profits.

About the Author: These steps are key to acquiring the most efficient

Blackberry Forex

trading software. Choose the

Forex trading software

that you can truly benefit from.

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Forex Trading From Home

Forex Trading From Home

by

Herman A Wilcox

A home forex trade expert would only have the resources of the internet open to him.Thus, if you want to set up a forex trading business at home, then you will need to follow certain steps.

[youtube]http://www.youtube.com/watch?v=XKQU-CcrQhs[/youtube]

Join a forex trade course The intricacies of the forex market can be quite complicated if you are not schooled in them from an seasoned expert.What this implies is that you would be unable to teach yourself how to trade in forex.This is why, before you even consider starting a forex trade home business, you need to enroll yourself into a good forex trade training program. There are a range of things that a forex trade training program can teach you.As a matter of fact, a good forex trading training program would try to integrate everything from simple currency education to complex forex trading methods online.Moreover, you would also learn about evaluating the market, tracking trends and minimizing risks through a good forex trading training program. How to open your forex trading account. Following the completion of your forex trade training program, you have to open a forex trade account. In most cases, the forex trade training organization would also provide forex trade brokering services.Therefore, you should open your forex trade account with the same institution.Notably, you should look for your forex trade account from the same enterprise because you would be able to work on the same forex trading platform. Resultantly, you would be simplifying forex trade for yourself.If you do not do this, you would have to learn a totally different forex trade platform. Advantages of joining a forex trading community It is common for a new forex trade professional to think he can do the whole process by himself.This is the wrong way to approach things because the forex market itself relies entirely on external factors.For instance, the forex trade operates on international currencies, which, in turn, depend upon the economies of their respective countries.Thus, the economies will affect the currencies which would influence the forex units. This is why it is important for you to ensure that you keep pace with all the developments of the world.You can get access to such changes by joining forex trading communities online.You should also try to register for relevant newsletters with the focus on forex trading. Keep learning about forex trade The dynamic nature of forex trade makes it important for you to keep learning about it.In fact, your ability to make money in forex trading depends on this.Thus, you should keep trying to learn new things about forex trade and update your existing knowledge.Additionally, for forex trade, no amount of financial knowhow is enough.In addition to this, a MBA degree would also help.

If you are interested in more info about

how to trade forex

, please visit our site

learnforextradings.org

wherein you will find all the information you require.

Article Source:

ArticleRich.com

What Is Forex Technical Analysis Market?

Submitted by: Sean Goudeloc

Technical analysis market is a type of Forex analysis technique that heavily relies on numbers and historical data. It makes use of charts, quotes, indicators (both simple and complex), supply and demand volume, and most especially, the data about past market performance. Its main purpose is to give traders a clue on what will happen in the market based on all the data that was gathered from the past.

Many online trading platforms provide users or traders with different types of technical analysis. By using technical analysis tools, you can have a better projection of the ups and downs in the market. With the knowledge you get from this kind of analysis, you will be able to make better trading decisions and minimize risks of trading in the Forex market. However, you do have to remember too that even the most profitable Forex traders do not stick with technical analysis alone. Technical factors are often weighed vis- -vis fundamental factors. Make sure that you consider other techniques like fundamental analysis for a better reading of the market.

Technical analysis market trading involves different types. A few of the most popular types of technical analysis tools are charting, volume indicators, Bollinger bands, relative strength index, and Stochastics. Each of these types has unique methodologies to generate data. These also help you look at the technical factors from various perspectives. Below are brief explanations about those types:

[youtube]http://www.youtube.com/watch?v=rE2dudYR6UQ[/youtube]

The most basic type of technical analysis in Forex is charting . Fundamentally, it focuses on knowing and analyzing the highs, lows, and closing prices within a certain time frame in the market. Using this type of technical analysis will let you immediately know the major trends within the market, areas of support of trends, and resistance to the price movements.

On the other hand, volume indicators focus more on telling traders the current and upcoming trading volume for them to know if there will be sudden rise or fall, or a reversal. Many rely on this analysis as their leading indicator to predict future price trends.

If a trader wants to check the volatility of the market trends, he will rely on Bollinger bands. The technique gathers the data about the moving average prices in the past 21 days. If you use this technique, always watch out for any sharp tightening of the bands. When you see that, it means that the market s volatility will intensely increase, and a new price trend may arise.

Last, but not the least is the RSI (Relative Strength Index). This type of analysis is used when traders want to predict any forthcoming market reversals. Fundamentally, RSI is a scale starts from zero and ends with 100. If a trader sees a value that is below 20 on it, it is possible that an uptrend will happen. Alternatively, if he sees a value that is above 80, a downtrend may happen instead.

As you can see, Forex technical analysis market is an effective tool you can use in your trading venture. Use it wisely with other Forex tools, and you can expect that your success rates during your trades will rise significantly.

About the Author: If you are looking for information on

technical analysis market

, click on the link. Or you can visit

lifestylesecretreview.com/

for more information.

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