MOVING AVERAGE CROSSOVER STARATEGY!

Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this easy system.
Currency pairs: ANY ONE YOUR CHOICE
chart time:1 hour or 15 minute chart.
Moving averages: 10 EMA, 25 EMA, 50 EMA.
Entry rules: When 10 EMA goes through 25 EMA and continues heading for the 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price candle to close on the opposite side of 50 EMA. This waiting helps to avoid false signals).
Exit rule: exit when 10 EMA crosses 25 EMA again.
or exit when 10 EMA returns and touches 50 EMA (again it is wise to wait until the current price candle after so called “touch” has been closed on the opposite side 50 EMA)





Advantages of this strategy:
1.it is easy to use
2.it gives very good result expecialy in a nice trending market.
3.you can expect a big price move except for the intervention of news.
Disadvantages of this system
1.The ema as an indicator is a slow indicator or a lagging indicator.
2.Does not do well in sideways trending market that is it should not be used in a non trending market because it will often give many false signals in that kind of market.

FOREX SCALPING STRATEGY !!!

Here is another strategy that can be used to trade the forex market for profits,it called scalping.Below is the strategy.

you should modify the macd indicator and input the parameters (10,24,7)on the 15 minutes chart.
you should also insert the exponential moving average (EMA 4) and the linear weighted moving average (LMA 10)on the 15 minutes chart.
But i must say you should be very disciplined using this strategy,as it is not meant for greedy,gluttonous and non disciplined traders,if you know your emotions cannot with stand the volatility of the forex market don't trade this strategy.

HOW TO INTERPRET THE INDICATORS:
Exponential moving average (EMA 4) and linear weighted moving average (LMA 10) is used to identify the trend,and the macd indicator as a confirming indicator.

BASIC SYSTEM RULES:
When EMA 4 crosses or punches through the LMA 10 going up,and confirmed with the macd indicator that is the histogram starts appearing above the zero line you have a buy signal.
When the EMA 4 punches through the LMA 10 going down,likewise confirmed by the macd histogram being below the zero line you should sell.

Get the trend as early as you can and follow the trend to maximize your profit.using this system on the 15 minutes chart is 15-25 pips is a realistic initial profit target expecaily if you are trading the gbp/usd usd/jpy,eur/usd pairs.

HIDDEN SECRET:An additional advantage for traders technical is when there are no major news affecting the market,there will always be a clear trend for the day trading.know when the news is coming out and close any of your trades 10-15 minutes before news is released.
happy trading!!!

PIVOT TRADING STRATEGY!!!

These are a forex trading strategy that you can try out on demo for at least two months before going on a live account.
First look at prices in relation to any of the pivot points- R1, R2, PP, S1, S2, ie what is price doing at the nearest pivot point,is it punching through a pivot point or is it retracing, then the secondary inputs of the indicators macd and the 9 and 18exponential moving averages on the one hour chart and entry with the 5 minute chart.

The trade:
plot the two moving averages on the one hour chart and give it different colours to identify the trend for the currency, then plot the macd indicator on the one hour chart too,if the macd line punches through it trigger line and it is above the zero line ie -0.000 look to the 5 minutes chart and check to see if only the signal line has crossed below the zero line -0.000 (not both lines of the macd line)then look to enter as close to the pivot point that was penetrated as possible and target the next pivot point for your profit.

SUMMARY:
Wait for a break of a pivot point and a retracement to the pivot point,look at the one hour macd chart to see if the macd and signal line is crossed in the direction of the trade you are considering to take.Also look at the 5 minutes chart to see if the signal line has crossed over the zero line in the direction of your trade if this is achieved enter as close to the pivot point as possible and target the next pivot point in your calculated pivot points to take profits.
Note: be conservative in the use of this strategy and look for 25-40 pips as profit daily.

In addition to using this strategy you can take your signal from where the last candle stick closes in relation to any of the pivot point on the one hour chart ie sell if the candle closes below any of the pivot point and buy when the candle closes above any of the pivot point.

This strategy is relatively simple to use but please remember to keep it simple always no trading strategy is expected to complex.
have fun in your trading!!!
source: How to trade the forex like a pro in one hour

HOW TO TRADE WITH TECHNICAL INDICATORS

1. PIVOT POINTS:
These are basically points of reference and they are used by all professional traders in the market.They are used to identify important levels of support and resistance.simply put it is a point at which the price is expected to basically change its direction.The pivot point originated from the floor in chigago in the usa and is made available to off floor traders like you and me to use in trading.The pivot point consist of the R2,R!,PP,S1,S2
Method of use:
Never buy above the pivot point and never sell below the pivot point(as in general guide line or rule)but buy when support or resistance is breached upward and sell when support or resistance is breached going down.
Note:This indicator should not be used in isolation.

2.MOMENTUM:
This is an indicator /oscillator that measures the rate of change in the price of the currency.It calculates the difference between todays closing price with that of ten days ago and plots the results around a zero line.
Method of use:
When the indicator reaches the bottom of a downward curve and begins to grow it is a signal to buy.
When the indicator touches the top of an upward curve and begins to point down it is signal to sell.
3.MOVING AVERAGES:
Moving averages are basically used to define the trend of a currency whether it is an uptrend or a downtrend.There are four types of moving averages 1.simple MA,2.exponential MA,3.smoothed MA,4.weighted MA.They all differ only in terms of the weight coeficiency that was calculated to the latest data.
Method of use:
when the price is (candle stick )fall below the MA,it is a signal to sell.
when the price (candle stick)rises above the MA, it is a signal to buy.

4.MOVING AVERAGE CONVERGENCE AND DIVERGENCE(MACD):
This is an indicator that follow the trend of the market.It is made up of 12 period exponential MA,and 26 period exponential MA and a bar chart.
Method of use:
When macd crosses the signal line,down it is a signal to sell.
when macd crosses the signal line upward it is a signal to buy.
NOTE:it is advisable to wait for a confirmed crossover before taking action.

5.RELATIVE STRENGTH INDEX(RSI):
It is a price following oscillator that ranges between 00 and 100.It is used to know when the market is overbought ie reading from 70-100 and when it is oversold ie readings below 30-00.
Method of use:
Reading of 30-00 is a signal to buy.
Readings of 70-100 is a signal to sell.



The idea here is to develop a trading strategy and style that of course you must stick to and be disciplined about it to really succeed in forex trading which i must tell you can be highly lucrative.

FOREX MARKET AND LOCATION:

The market is a seamless 24 hours market and it runs 5 days a week. The market opens 5pm on Sunday(new york time,trading starts in Sydney and Singapore and finally goes round the globe to get to new york at 8 am.

note:the forex market has no central location it just virtually follow the sun round the globe.

How do i start trading the market online:
Before you will begin to trade the forex market or participate in it you will need the services of a broker or a market maker to be able to trade.bellow are names of trusted market maker or brokers that are reliable.

www.northfinance.com
www.marketiva.com
www.fxcm.com
www.interbankfx.com

How to trade :

There are basically to ways to trade the market or better still to analyze the market and then be able to participate for profits or pips.


Fundamental analysis
fundamental analysis focuses on the macro economic indicators such as interest rates economic growth,inflation,import and export, employment etc as it affects the countries currency that you are going to be trading with.ie These factors or indicators drive demand and supply for the countries currency one thing to note is to be aware of when these indicators will be released.

Technical analysis:
This type of analysis uses historical price movement that is charts to forecast or tell the possible move and direction that the currency pair is going to take.This analysis basically uses different chart patterns to identify trends in their earliest stage so as to take profit .
visit www.chartpatterns.com to study the different chart patterns on display there.

INTRODUCTION TO THE WORLD OF FOREX TRADING

What is forex trading?

Forex or foreign exchange is nothing but the buying and selling of currencies online almost simultaneously.The market is so large in volume that it will take a whole one month for the new york stock exchange to match up with the volume that is traded in a day in the forex market.

In the forex market currencies are always traded in pairs and not in isolation, that is buying of one currency and the simultaneous selling of the other. The objective of currency trading is to buy the currency that appreciates or increase in value compared to the other that is sold.ie if you have bought lets say British pounds and the value of that currency increases then you must sell it back in other to lock in the profit for that day.

Is currency trading difficult or easy?

I remember the first time i learnt about forex trading and i got all excited about the possibilities of making cool money all from the comfort of my home, i quickly funded my account and started trading live,funny enough i was making profit for the few weeks that i was trading as i was abiding by the rules or the strategy that i was taught by my trainer. After some few weeks of making some substantial progress my profit got swallowed by the market.i was annoyed,only to later discovered that i have totally diverted from the strategy i have learnt. and had gone on to something else and hitherto causing my losses.To answer the question above correctly with my experience is that forex is not difficult but it requires discipline and that i can say over and over again without getting tired,discipling is the key to success in forex trading as in everything that you are going to learn or study you just have to be disciplined about your trading style or strategy.