Forex Trading - Combining Internal and External Indicators for Bigger Profits

If you are involved in forex trading, you obviously need to generate forex trading signals for profit and you will be able to make bigger profits and achieve long term currency trading success, if you combine a visual view and then trade off shifts in price momentum, so let's look at how to do this.

A Visual view

Be objective! The right price is the market price and you can see this clearly by using trend lines. There is no better way to spot areas of support and resistance to trade than to use trend lines.

Many traders however like to use subjective indictors to do this like cycles and Elliot wave but these require you to decide where support and resistance lies.

Why bother?

Drawing trend lines and looking at support and resistance gives you the reality and objective areas you can trade against.

You can use other indicators such as moving averages and Bollinger bands, but you need to start with trend lines and use these as back up.

Furthermore avoid Fibonacci retracments, they are simply assumed levels and they break at least as often as they hold.

An internal view.

As we have discussed above, good old fashioned trend lines will give you the reality of price and important support and resistance levels clearly right in front your eyes.

You now need to calculate the odds of success of trading into these levels.

You will need some momentum indicators to do this - these will tell you the strength of price movement up or down and help you calculate the odds of success.

For example if price momentum weakens into resistance chances are it will hold if it increases on a break of resistance chances are the trend will continue.

There are two great price momentum indicators that any novice can use effectively:

The relative strength Index (RSI)

Developed by trading legend Wells Wilder (if you have not read new concepts in technical trading get a copy) its over 25 years old but a classic work and this is a classic powerful indicator.

The stochastic indicator

Developed by George Lane, this is one of the best momentum indicators if not the best, you can use.

There easy to use in forex trading and are covered in our other articles in more detail.

Trading is an odds game!

Trading is an odds game and for this you need to see the reality of price as it is and then get the odds in your favour by watching shifts in price momentum.

It is the shifts in price momentum you can use to execute your trading signals and get the odds in your favour.

If you follow the above tips and get both an external visual view and combine this with price momentum, you will have the basis of a powerful currency trading system.

Furthermore, you will be using objective analysis and trading on the facts, rather than using subjective analysis, which means you have to predict, which by its very nature is doomed to failure.

Follow the above tips and they will help you get the odds in your favour when trading forex and lead you to currency trading success.

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Forex Charts - Using The ADX Indicator For Bigger Profits

If you're using charts, then you want to trade the strong trends - and the Average Directional Movement Index Indicator, or ADX, enables you to do this.

Wells Wilder developed the ADX, and outlined it in his classic book "New Concepts in Technical Trading Systems".

Let's look at this essential indicator in more detail - and see how to apply it on your forex charts, to give you greater accuracy when generating your trading signals.

Determining the Strength of the Trend

The ADX is a momentum indicator, which aims to measure the strength of the trend - and attempts to determine if the market is trending, or is trading sideways.

The Advantages of the ADX

A core belief of technical analysis is that a strong trend in motion is more likely to continue, than reverse. Therefore, you always want to be trading strong trends - as your odds of success are higher. The Average Directional Movement is a good indictor - and you should consider using it as part of your currency trading system.

The Technical Bit

For the boffin's out there, here's the technical bit - don't worry if you don't understand the calculation, its easy to use when visually plotted. The ADX is based on the comparison of two other directional indicators, both of which were also developed by Wilder, and they are:

Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) to produce ADX as showed in the following formula:

ADX = SUM[(+DI-(-DI))/(+DI+(-DI)), N]/N

Where:

N: Refers to the period of calculation. The formula above produces the ADX line, which oscillates between 0 to 100 values. The +DI and -DI are both present and can be seen to make up the indicator.

You don't need to understand the above calculation to use the indicator - you only need to accept that the indicator works.

The indicator is easy to use when it's visually plotted - and you'll find it included, with most of the good forex chart services.

How to Trade using the ADX Indicator

The ADX it's not a bullish, bearish trading signal generator - and should never be used as such.

The ADX indicator simply indicates the strength of the trend - and other indicators should be used to enter, and exit trades.

Although the ADX fluctuates from 0 to 100, it rarely moves above 60.

Use the ADX in the following way:

Readings above 40 indicate the strength of the trend.

Readings below 20 indicate range trading and flat periods of consolidation.

You can use the crossing of +DI and -DI to determine the trend direction; when +DI crosses -DI upward, it's a bullish signal, on the other hand, when +DI crosses -DI downward it's a bearish signal.

The ADX line is a great momentum indicator and like the RSI (also developed by Wells Wilder), the ADX it will help you trade the strongest trends - and give you advance warning of changes in momentum.

The Bottom Line

If you want currency trading success, you can't just trade support and resistance levels, and hope they hold or break. You need confirmation of momentum to get the odds on your side - and the ADX indicator will assist you.

Final Words

New Concepts in Technical Trading Systems was published in 1978, and was one of the first trading books I ever bought. Every trader should make this book a part of his or her forex education. If you want to learn forex trading the right way, get the book, and use the ADX indicator to increase your chances of making big FX Profits.

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The Best Forex Strategies Revealed For Consistent Profits

I have spent years trying different trading strategies and waiting for the perfect forex strategies to be revealed. Waiting for some secret or holy grail that would make my trading profitable. I tried different indicators and signals, I drew the trend lines support and resistance levels and studied everything I could about technical trading. I would do back tests on systems and the tests showed excellent profit but when I would trade the systems live I never could get them to make a profit. I would always end up losing money.

After several years and thousands of dollars lost I finally discovered the secret to profitable forex trading. The problem all those years was that I was looking in the wrong direction. There are endless numbers of trading strategies that are time tested and profitable. The secret is that it's not so much about finding a good strategy, the secret is about us becoming good at consistently trading any system we are using.

No matter how good the trading system is it won't do us any good unless we are effective with our trading. I was always blaming the strategies for my failures but when I look back on it the problem was that I was not being consistent with my trading. This is what causes most traders to fail.

It takes an extremely disciplined person to be able to stick to a system and trade without emotions such as fear and greed entering their trading decisions. When you bring human emotion to the table it alters your trading system and alters the results. If your emotions aren't right for trading it usually alters your trading in a negative way and often turns a profitable trading strategy into loser.

Another problem with forex trading is the market is moving 24 hours a day. While this is an advantage in some ways it can also be a big disadvantage. The disadvantage is you can't be watching the market 24 hours a day. You can't be there to catch all your trade signals. This alone can make many trading system almost impossible to follow unless you are working with a team of people who can monitor the markets 24 hours a day.

I don't know about you but I don't want to spend my life watching charts and I decided a while back that manual forex trading is really not for most people. The solution I found is to use automated programs called robots that will monitor the markets for you 24 hours a day and trade the forex for you automatically. Using a proven profitable system they will enter and exit your trades when the market gives them the signals. Modern robots are very simple to set up and one they are they everything automatically whether you are there or not.

When selecting a robot watch out for back tested claims. You want one that actually has a history of making a profit trading a live account. Most important is to make sure you can let it run on a demo account for a while and make sure it will make a profit before you use it with real money.

For me using a robot is the only way I have found that I can get consistent profits in my trading. The robot makes money automatically while I can spend my time doing other things that I enjoy.

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Forex Charts - Essential Indicators For Bigger Forex Profits

If you want to use forex technical analysis, then you will need to look at forex charts to decide where to execute your trading signals.

You will of course need to combine indicators to do this - Here we will give you some essential ones, to help you achieve currency trading success.

Before we look at how to use forex charts correctly, lets make two things clear.

1. Day trading

Do not even try and attempt it. The time frame is to short and all volatility is random, so you have no valid data and will lose. Day trading profits is one of the biggest myths of forex trading - Don't fall for it.

2. You can't predict market turns in advance

Forget the far out investment theories like Elliot wave, Fibonacci numbers, cycles etc that are supposed to repeat with scientific accuracy - they don't. If they did everyone would know the price in advance - so there would be no market.

Right lets move on and look at forex charts and how to get trading signals for longer term profits.

Determining the trend

You have a choice trend lines or moving averages.

The former are better, as you have more precise levels but there is no harm in using moving averages as back up.

Your main aim is to determine support and resistance levels and decide if they are going to break or hold.

Determining Price Momentum

You need to ALWAYS trade in the direction of price momentum. An accelerating price momentum through resistance for example would favour the bulls; if price momentum drops it favours the bears.

There are two essential indicators you can use and if you don't know what they are learn them - the stochastic AND Relative Strength Index ( RSI) - these are simply great indicators for helping you enter trades and take profits.

Determining Volatility

You need to know about volatility from the point of view of warning pf price reversals and determining targets and there is no better tool than the Bollinger band.

This indicator should NOT be used to generate trading signals but as a warning of trend change coming, or in determining targets there is no better tool.

Using trend lines to determine areas of support and resistance combined with momentum indicators to time entry and exit levels is all you need.

These are objective tools that tell you what to do - Ignore ANY Technical tool that means you have to make subjective judgements i.e Elliot wave or cycles -they will simply see you lose.

The indicators above are essential tools and if you learn about them and combine them, you will have a simple robust method t trend follow or swing trade and ALWAYS trade with the odds in your favour.

If you remember the above in relation to your forex charts, you can achieve longer term currency trading success.

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Best Forex Trading Indicators - For Bigger Long Term Profits With Less Risk

Here we will look at some best Forex trading indicators and how you can use them to make bigger Forex profits...

Here are some of well known indicators which every trader should make part of their Forex education. We will give you a quick overview of them and some tips, on how to use these indicators for bigger Forex profits.

Bollinger Bands

Gives you a view of the volatility of a currency and standard deviation of price. If you want to trade Forex successfully, you must understand the impact of volatility and standard deviation of price. Bollinger Bands help you see volatility at a glance and while we don't have time to cover all the advantages of Bollinger bands in this article, below you will find a trading tip which is extremely useful for entering a trend in motion.

Trading Tip

In strong trends, buying back to the mid Band (the center moving average) offers a great low risk, high reward entry point.

Moving Averages

Short term price spikes never last long and are normally driven by emotion and prices then fall back to an average which is in line with a longer term moving average. There are several moving averages which are great for spotting areas of value when trend following and here are two of the best.

Trading Tip

Notice in a strong trend, how important the 18 day MA is and how short term spikes away from the average and then returns to it. Take a look at the 40 day moving average as well, as it makes a great stop level in a strong trend.

Simple moving averages are a very effective tool and all traders should study and use them.

Average Directional Movement

Want to know if a market is trending and the strength of a trend?

The ADX line is a great indicator to help you do this.

Trading Tip

Want to know when to bank some profits and get advance warning when a trend might end? Watch for the following:

Watch for a move above 40 and a turn down, as a great profit taking warning. This set up often warns of the end of a strong trend and allows you to tighten stops or take some profit.

Relative Strength Index

The RSI measures the strength of the trend. Trading divergences of the RSI from the price trend can be a great way to warn of a trend change and get out of existing positions or get in to contrary trades.

Trading Tip

Look for changes in the RSI from chart extremes above 80 below 20, to warn of important trend changes and contrary trading opportunities.

The Stochastic

The stochastic is based on a simple concept:

If a trend is strong, the price will close, closer to the high in a bull market and vice versa in a bear market. Trading crosses on the stochastic, with bullish or bearish divergence from overbought or oversold levels, is a great way to time trading signals with greater accuracy.

Trading Tip

Watch for extreme readings in the RSI and a divergence away from the trend then, use a stochastic crossover (also from extremes) to confirm the move and execute your trading signal.

Learn how to use these best Forex trading indicators and combine them correctly and you can enjoy bigger Forex profits.

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FOREX Trading Tip - Use Leading indicators For Greater Profits Here's How

Many traders like to buy dips to support or sell into resistance but this simply ensures they lose.

This FOREX trading tips is all about using leading indicators to confirm a move, rather than simply assuming support and resistance will hold.

Let's look at it in more detail.

Buying Into Support and Sell Into Resistance.

You hear this tip all the time, but it doesn't make money.

It is based on the old saying "buy low sell high" which is another phrase that won't make you money.

If you buy into support or sell into resistance then the logic is that you will have low risk and high reward if the levels hold.

The important word here is "if"

If you trade FOREX then you don't want to rely on "if" and hope - you want indicators that will increase the odds of these levels holding and your chances of making a profit.

If a price is speeding toward support or resistance then it will break as often as it holds, you therefore need to watch for changes in price momentum and that's where leading indicators can help.

Getting the odds in your favor

If you want to buy support and sell resistance and get the odds in your favor do use the following FOREX tip.

You can use lagging indicators as well as trend lines in FX trading to denote areas of support and resistance and the ones we like are:

Bollinger bands and moving averages.

These indicaotrs like trend lines should NOT be used to enter trades.

When buying dips to support or into selling resistance, you want confirmation that the levels are going to hold - before prices reach these levels you want confirmation of the turn in advance.

When price momentum turns above support or below resistance you can enter with increased odds of success.

The best timing indicator by far is the stochastic.

Look it up and learn all about it as it's a great under used tool.

Another great indicator is the Relative strength Index RSI.

Combine the two and watch for confirmation on both and you have a powerful combination you can use to increase your odds of success.

They will give advance warning of a change in price momentum at support and resistance and when they turn in your favor you can enter the trade.

You don't predict with the above.

You act on confirmation and this will increase the odds dramatically in your favor and increase your overall profitability.

This FOREX tip is obvious, but it's surprising how many traders simply hope a level holds rather than looking for confirmation

Don't make the same mistake always act on confirmation when trading FOREX.

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Timing Camarilla Pivot Point Forex Trading Signals For Maximum Profits!

How to get the most camarilla pivot point forex trading signals by trading currency pairs at key times for optimal profits. Many people have read my previous article on forex market key timeframe's to trade around and so far I am just covering a lot of conceptual stuff the simple ingredients to successful forex trading. Today we will put a forex signal together and show just how fun and easy it is to make forex profit. We will be working with forex flows and basics theory on how you can generate forex signals on the forex markets for fast easy profits!

I will be using our free software in this example located at http://www.digital-intuition.com and while there is a premium service for our forex signals I am going to layout a simple strategy using only the camarilla calculator provided in the software. No charts, NO tons of indicators just lots of simple trading theory in words you can understand that will get you in the flow of the market.

When developing some of the mechanics of our own trading we coined the term digital Intuition and work off the premise that there is truth in numbers. In this digital age it seems almost anything can be expressed in numbers so it should not be hard to believe that news, sentiment and even fundamentals can be factored into the numbers in a forex currency pair. Lets look at my 3 favorite keys to catching the forex flow and see how they can work together in a synergy building forex signals.

1. Time: I touched on this in my previous article on market timing but you want to be in the market positioned well during the most volatile points of the day.

You can never catch every pip but it is likely you will catch the most of a movement when the market is moving most. Timing your trades around when the market is cooking is a key ingredient to my recipe for profits in the forex market.

2. Price: OK have you ever heard the saying that "you have to stand for something or you will fall for anything". In forex trading this is very true. Let me explain what I mean more clearly. You have to be either close to support or close to resistance before you take action.

Support = You think the market is going to turn and trend upwards but if it has been broken you think a breakout is happening

Resistance = You think the market is going to turn and go down but again if it is broken you think a breakout is happening

Anywhere in the middle = I will fall for any trick the forex market throws at me because I am not positioned correctly.

3. Volatility: OK let me point out the last component for you. Get up and run as fast as you can at top speed around your neighborhood for this little experiment. Probably in a while you will get exhausted and eventually slow down to a brisk walk at best. The forex market or any market in my opinion is going to be the same way. Why because the market is composed of human beings ( but what about the automated trading Alfred )? Well who programmed automated forex trading ( human beings ) ? So you see after volatility you can expect a market to cool down and after long periods of no volatility you can expect a market to cook.

Putting it all together. Lets use these 3 keys to unlock a synergistic forex signal. Pull up a chart if you must on USDYEN April 24 - 26 of 2007. Now minimize that chart because in my opinion charts are great for showing you a visual of what is happening or what has already happened on the forex market but I don't use them for forex signals in the way most people do with all those indicators.

I want you to visit http://www.forexflows.com and download this software. The software is completely free and this is all that I will be using to setup this position. Once installed you will be using the camarilla pivot calculator. Let me touch on something here briefly and explain. The reason I am so big on Pivots is because they are a predictive indicator. Most indicators simply revolve around a linear representation ( drawings ) over the current market action. In order to draw anything you have to know the beginning and end points therefore most indicators in my opinion are not very useful especially for entry forex signals. Pivots give you hard numbers that everyone will see ( nothing left for interpretation ) and they try and predict pivotal points on the coming day's market. This lets you get a plan together in advance instead of jumping at a minutes notice when the market moves like 80 - 90% of forex traders.

OK lets plug in some numbers and let me show you an example of a forex signal at work. I spotted this trade with no indicators at all just completely using the 3 elements above and my simple camarilla Pivot calculator included free in the forex flows software.

Time: Firstly I am not even looking for a forex signal until at least 6:00GMT or later. I will sometimes start as Germany opens just to get the last little pips before the UK market opens and a run starts. That is it guys I did not touch the chart because one of my synergy components is time itself.

Price: OK now I plugged in all my numbers into the pivot calculator and saved 3 consecutive days worth of pivots. The pivot Calculator in forex flows has 10 slots available that you can label and it will show you 3 consecutive Central pivot points #1 is the oldest and #3 is the newest.

The 3 Central Pivots were

APR 24: 118.57

APR 25: 118.58

APR 26: 118.59

Camarilla Pivots April 26

H4 118.97

H3 118.81

H2 118.76

H1 118.71

L1 118.60

L2 118.55

L3 118.50

L4 118.34

So the central pivots are very slowly trending up. In fact they are moving to slow ( 1 point a day for the last 3 days ). Question:What will happen after this low Volatility most likely?

Answer:

The market will start to cook

When or around what TIME will this most likely happen?

Answer: During one of my key timeframe's explained in earlier articles.

Where or at what price do you enter?

Answer: At 7:00GMT on April 26 USDYEN was trading

at 118.85 this is just above H3 on our Camarilla Pivot Calculator. Now here is where I want to point something out.

A: The last 3 days central Pivots were moving up

B: We had just broken H3 and comon Camarilla theory said that was EXTREME resistance.

C: The market opened modestly above Central pivot so I usually look for long positions on those days.

All these factors

Timing: Just after 7:00GMT market can move big in the next 3 hours

Price: We just broke H3 wich is extreme resistance so predicting a breakout is not a stretch especially since we have been slowly trending up 3 days prior.

Volatility: Central Pivots have been only 1 Pip each day for 3 days so the currency is prime for a breakout.

Now pull up your chart and Viola all our components worked together in a synergy to give us a forex signal at 118.85 and we could ride this breakout all the way up until

16:00GMT 119.51 for 66 Pips profits or $660 trading 1 standard lot. Again Time told us when to leave at 16:00GMT because if you read my other articles you already knew most of the action was over at 16:00GMT and we exit the forex market when most of the action is over. Notice I did not use any indicators but my simple Camarilla pivots and an understanding of the natural flow of the forex markets. This is why we call our forex signal software forex flows. I hope this has opened up some ideas for you guys about trading with synergy on your side and riding the natural flow of the markets.

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Best Forex Trading Indicators - 4 of the Best Indicators For Bigger Profits

Many traders use numerous indicators - but over the last 22 years I have four favourites and I will share with you here and they have worked for me and they will work for you. Let's look at them...

Today, good old bar charts have gone out of fashion but I think their essential and use them in conjunction with the indicators below. I don't use candlestick charts, there is a big myth there better but there not. If you like using them, then do so but the relationship between the daily range open and close is obvious.

Here are the four indicators and you can read more about them in our other articles. There available on most free chart services and will take you around 30 minutes each to learn and then, your all set to start using them on your forex chart and start making bigger profits.

1. The Stochastic

For me this is the ultimate timing tool.

Trading stochastic crossovers with bullish or bearish divergence, into chart resistance or support, from overbought or oversold levels, is simply the best market timing tool. If the stochastic crosses from chart highs or lows the signal is even more powerful.

2. Relative Strength Index

This gives you the strength of the trend and when RSI weakens or strengthens, when the trend is still up or down, especially from over bought or oversold levels, you have advance warning of a contrary move.

When combined with the stochastic, you have a great combo for better market timing.

3. The Bollinger Band

Gives you the volatility of price and you simply need to understand it to make money at forex trading.

I love using pops to the outer band, near chart support and resistance, to look to take profit or, initiate a contrary trend. Also in a strong trending market, dips back to the centre band ( the moving average) are great value areas to look to add extra positions in a strong existing trend.

You don't time with them - you look for areas in line with support and resistance to trade into.

4. Moving Averages

Simple moving averages are great and I have just mentioned the mid band of the Bollinger band, which is in fact a simple moving average, to buy and sell back to in existing trends.

In strong trends dips to the 18 - 25 day moving average are a great place to load in new trades.

Another excellent time period is the 40 day moving average which acts as the last line in a strong trend with nearby support or resistance. In strong trending moves we like to trail our stop behind this level and it keeps us in the long term trends.

When trading with the above and support and resistance lines you will get market timing for your trading signals.

There are some other useful technical indicators and we like the ADX line and the MACD too - but the above are the four we use all the time. If you spend 30 minutes on each one you will soon have four powerful indicators that you can use in your own forex trading strategy, to seek currency trading success with.

Check them out, they're simple, powerful and can work for you too with a little practice.

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Best Forex Trading Indicators - For Trend Following and Catching the Big Moves and Profits

If you want to make the really bit profits you need to follow the big trends so what are the best Forex trading indicators to help you do this? Let's find out...

Most traders like to trade short term and trade the noise of the market so they day trade or scalp and end up losing, the savvy trader, trades the big trends spends less time on his trading and makes bigger profits. Let's look at some of the best trading indicators the pros use to lock into and hold the big trends.

If you spot a trade and want to get into it, you can do it in two ways:

Breakouts

You can buy or sell a breakout to new highs or lows and when this occurs check momentum supports the move and for this there are no better indicators than the stochastic and Relative Strength Index (RSI), you can learn how to use each in about 30 minutes and if you are not familiar with them, make them an essential part of your Forex education. If they support the move and show price momentum is accelerating, you have the odds on your side and can enter.

Dips

Any trend will move to far too quickly, to become overbought or oversold and prices will then come back to an average price. If you want a good average to look to add to positions into an existing trend, you can use the 18 day moving average or you can use the middle of a Bollinger Band. The Bollinger band has many uses but overlay it on any price trend and you will see often prices rally in a bear market to the mid band and fall back to it in a bull market; you can then look to enter supported by momentum indicators.

Stops

Most traders never catch a big trend because they trail their stop to close. It's a fact that if you want to follow a trend for weeks or months and bank a big profit, you need to give the market room to breathe and accept open equity dips. A good Moving average to use is a 40 day MA which will hold you in the best trends for longer.

Another great indicator for defining if a market is trending strongly is the ADX line, its also excellent as a profit taking signal, if the ADX line moves above 40 and turns down, you have a warning to take profits.

Moving averages, RSI, ADX the Stochastic and Bollinger Bands, are indicators that all trades should make a part of their essential Forex education. To learn to use them will take you a day and for this work, these best Forex trading indicators could make you thousands or tens of thousands of dollars.

Long term trend following can be very profitable and the above indicators, will help you turn the best opportunities into huge profits.

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Learn Forex Trading - Little Known Technical Indicators That Make Bigger Profits

To learn Forex trading, you need to know the best technical indicators to incorporate in your Forex trading strategy. Here we outline the best indicators - and give some tips on how to use them to make bigger trading profits.

Some of these technical indicators are well known, but some you may never have heard of before. However, they're all fantastic Forex profit tools - if you use them in the right way.

First things first: No indicator works all, the time - or by itself. It's essential to combine several indicators together in order to generate trading signals - and here we will look at the indicators and how to combine them.

If you want to learn Forex trading, you need to spot trends. You also need to confirm entry with momentum of price on your side. So, let's look at the best indicators for doing this:

1. Indicators for Trend Confirmation

Good old-fashioned trend lines are your first clue to important support and resistance. You need to know where important support or resistance is - and you can easily spot this by drawing trend lines.

Moving averages are a great back up to trend lines in order to identify trends. Moving averages combined with trend lines are all that you need.

Many traders simply like to buy into support - or sell into resistance and "hope" the trade is going to go their way. However, to get the odds in your favour, you need to confirm that price momentum supports your view of the market.

2. Indicators for Trading Signals Entry and Exit

When you take a currency-trading signal, you should have short-term price momentum in your favour. If short-term price momentum is not in your favour, then the odds are not in your favour - and you'll lose.

Two great indicators are RSI and Stochastic - and both give an excellent visual picture of the strength of price. You can learn how to visually spot price momentum changes easily and competently with these two indicators. You don't need to understand the equation behind them - just know that they work.

Another useful indicator for defining strength of price is Average Directional Movement (ADX)

Many Forex traders use Bollinger bands and MACD for timing price momentum and entering trades. This is wrong - they essentially gauge volatility - so only use them for that purpose.

3. Contrary Trading Tools

Do you want to get advance warning of every major trend change - and know when a big move is coming? Of course, you do - and these are the indicators to use:

1. % Bullish

2. Net Traders Position Report

These two indicators are not commonly used by Forex traders - yet they give you advance warning of all the big trends - and these yield the biggest profits.

You need to gauge when to enter (use momentum indicators) - but the % Bullish, and Net Traders Position Report will tell you when the market is ripe for a big move.

Consider this fact: Currency markets tend to have huge trend changes when the fundamental consensus is extremely bullish or bearish - and the % Bullish measures peoples view of the market.

In simple terms when the consensus is over 80%, then price is too bullish. When the consensus is under 20% then price is too bearish - and a trend change is due.

After looking at the tool you can confirm a trend change is due by looking at Net Traders Positions published bi weekly by the CFTC. It relates to the futures markets - but movements in spot currencies tend to mirror the set ups.

You can track hedgers - these are the real pro traders. These traders know the value of a currency - it's their living. You then compare the hedger's positions with the speculators - who always get the major turning points wrong.

If you're trading online currencies and you see hedgers going the opposite way to speculators - and this is backed up by the % bullish being over bought or oversold - then a big move is imminent. It's then time to look at your charts - in order to time an entry opposite to the majority.

In Forex markets contrary trades offer you the biggest reward for the lowest risk - and the % Bullish and Net Traders Position Report will help you spot them.

So now you know the best tools, which when combined with your Forex education, could top up your regular Forex trading profits, with a few spectacular gains.

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Best Forex Trading Indicators - 4 of the Best For Bigger FX Profits

There are lots of Forex indicators to choose from but here I will look at five that all traders should know about and if they are used correctly, they can enhance your profit potential lets take a look at them.

These indicators all complement each other and can be used in the same strategy. You can learn them in around an hour each, their visual and if combined with normal bar charts come together to give you a flexible and powerful way to trade. Lets look at our best Forex trading indicators for bigger profits.

Bollinger Bands

This indicator, doesn't generate trading signals but it gives you a view of volatility and all traders need to know and understand how volatility affects price.

A very simple effective way to use it is to use the mid band or 20 day moving average, as a simple way to get into existing trends.

Look to buy currencies in moves back to the mid band in a bull market and sell them, in a bear market - Simple? Yes but look at a chart and you will see how effective it is.

The Relative Strength Index

Developed by trading legend Wells Wilder, this indicator can give you advance warning of trend changes watch for the RSI to turn against the direction of the trend in overbought areas in bull markets and oversold areas, in bear markets to take profits or to enter contrary trades.

The Stochastic

The stochastic is the ultimate indicator for entering trades in our view, simply look for stochastic crossovers from overbought or oversold levels in bull or bear markets to enter trades, in the direction of the crossover and enter your trading signals.

Its the ultimate timing indicator and one, all traders should learn to use.

Average Directional Movement

Another Wells Wilder indicator and it's used, to determine whether a market is trending or not but its best use is, as a profit taking signal in strong trends.

Simply look for the ADX line to rise above 40 and turn down, to take profits and look for contrary trading opportunities.

These 4 Indicators can help you enter new trends, trends in motion with the best risk to reward and also give you advance warning of major contrary trends and if you use them, in conjunction with your bar charts, you will be soon making bigger profits with some of the best Forex trading indicators.

Read more...

How to Pick the Best Forex Trading System That Will Make You Big Profits Quickly and Safely

Looking for the best forex trading system out in the market? There will be a whole lot available for you to use. But you also need to practice a bit of caution as you begin your selection process. There will be some that would claim to be the best and provide you with what ever you need as well as help you gain profit. But may live you empty an empty hand in the end.

There are several reasons why you need to adopt the best forex system. What's in it for you?

If designed well, it can save you a lot of time. So make sure that you test your system. You don't want to end up at the loosing end just to find out that your trading system is not working the way you want it to.

There is no physical location where transactions are done. Most of the transactions are done electronically and there is no better way than to do it online using the internet. Foreign Exchange is different from playing the stocks or future trading. It deals with a lot of analytics that it's best to use a computer.

Having the best forex trading system helps simplify the complex characteristics of the market. If designed well enough, it can provide you with helpful information that can increase you profit. At the same time, it can provide you with trends that can assist you with decisions to make as you do trading.

Now that you know some of the advantages, here are some characteristics or features that can help guide you in finding the best forex investing system.

There really isn't a perfect trading system. So if you have been in the trading for a certain period of time and have good grasp of trading, you may also consider creating your own system. In this manner, you'll never the different curves your system does and the design it the way you want it to. That would be the best forex trading system for you.

But we know that developing your own system takes time and expertise so just in case you want someone else do it for you. You will want trading systems that of course provide you what you need. You need to make sure that it can provide reliable information. In this line of business, you need real time data and accuracy of information..

Make sure to be knowledgeable about the system. Identify it gives you everything you need at the same time; test the features to get a feel of what the system can do for you. It is highly advised that the provider has free trial. You can get a chance to text it and study it's capabilities as well as extra features.

Which ever trading system you, just make sure it's the best forex trading system that will work towards your advantage.

Read more...

Best Forex Trading Indicators - 4 of the Best For Bigger FX Profits

There are lots of Forex indicators to choose from but here I will look at five that all traders should know about and if they are used correctly, they can enhance your profit potential lets take a look at them.

These indicators all complement each other and can be used in the same strategy. You can learn them in around an hour each, their visual and if combined with normal bar charts come together to give you a flexible and powerful way to trade. Lets look at our best Forex trading indicators for bigger profits.

Bollinger Bands

This indicator, doesn't generate trading signals but it gives you a view of volatility and all traders need to know and understand how volatility affects price.

A very simple effective way to use it is to use the mid band or 20 day moving average, as a simple way to get into existing trends.

Look to buy currencies in moves back to the mid band in a bull market and sell them, in a bear market - Simple? Yes but look at a chart and you will see how effective it is.

The Relative Strength Index

Developed by trading legend Wells Wilder, this indicator can give you advance warning of trend changes watch for the RSI to turn against the direction of the trend in overbought areas in bull markets and oversold areas, in bear markets to take profits or to enter contrary trades.

The Stochastic

The stochastic is the ultimate indicator for entering trades in our view, simply look for stochastic crossovers from overbought or oversold levels in bull or bear markets to enter trades, in the direction of the crossover and enter your trading signals.

Its the ultimate timing indicator and one, all traders should learn to use.

Average Directional Movement

Another Wells Wilder indicator and it's used, to determine whether a market is trending or not but its best use is, as a profit taking signal in strong trends.

Simply look for the ADX line to rise above 40 and turn down, to take profits and look for contrary trading opportunities.

These 4 Indicators can help you enter new trends, trends in motion with the best risk to reward and also give you advance warning of major contrary trends and if you use them, in conjunction with your bar charts, you will be soon making bigger profits with some of the best Forex trading indicators.

Read more...

Forex Charts - Essential Indicators For Bigger Forex Profits

If you want to use forex technical analysis, then you will need to look at forex charts to decide where to execute your trading signals.

You will of course need to combine indicators to do this - Here we will give you some essential ones, to help you achieve currency trading success.

Before we look at how to use forex charts correctly, lets make two things clear.

1. Day trading

Do not even try and attempt it. The time frame is to short and all volatility is random, so you have no valid data and will lose. Day trading profits is one of the biggest myths of forex trading - Don't fall for it.

2. You can't predict market turns in advance

Forget the far out investment theories like Elliot wave, Fibonacci numbers, cycles etc that are supposed to repeat with scientific accuracy - they don't. If they did everyone would know the price in advance - so there would be no market.

Right lets move on and look at forex charts and how to get trading signals for longer term profits.

Determining the trend

You have a choice trend lines or moving averages.

The former are better, as you have more precise levels but there is no harm in using moving averages as back up.

Your main aim is to determine support and resistance levels and decide if they are going to break or hold.

Determining Price Momentum

You need to ALWAYS trade in the direction of price momentum. An accelerating price momentum through resistance for example would favour the bulls; if price momentum drops it favours the bears.

There are two essential indicators you can use and if you don't know what they are learn them - the stochastic AND Relative Strength Index ( RSI) - these are simply great indicators for helping you enter trades and take profits.

Determining Volatility

You need to know about volatility from the point of view of warning pf price reversals and determining targets and there is no better tool than the Bollinger band.

This indicator should NOT be used to generate trading signals but as a warning of trend change coming, or in determining targets there is no better tool.

Using trend lines to determine areas of support and resistance combined with momentum indicators to time entry and exit levels is all you need.

These are objective tools that tell you what to do - Ignore ANY Technical tool that means you have to make subjective judgements i.e Elliot wave or cycles -they will simply see you lose.

The indicators above are essential tools and if you learn about them and combine them, you will have a simple robust method t trend follow or swing trade and ALWAYS trade with the odds in your favour.

If you remember the above in relation to your forex charts, you can achieve longer term currency trading success.

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Forex Trading - Combining Internal and External Indicators for Bigger Profits

If you are involved in forex trading, you obviously need to generate forex trading signals for profit and you will be able to make bigger profits and achieve long term currency trading success, if you combine a visual view and then trade off shifts in price momentum, so let's look at how to do this.

A Visual view

Be objective! The right price is the market price and you can see this clearly by using trend lines. There is no better way to spot areas of support and resistance to trade than to use trend lines.

Many traders however like to use subjective indictors to do this like cycles and Elliot wave but these require you to decide where support and resistance lies.

Why bother?

Drawing trend lines and looking at support and resistance gives you the reality and objective areas you can trade against.

You can use other indicators such as moving averages and Bollinger bands, but you need to start with trend lines and use these as back up.

Furthermore avoid Fibonacci retracments, they are simply assumed levels and they break at least as often as they hold.

An internal view.

As we have discussed above, good old fashioned trend lines will give you the reality of price and important support and resistance levels clearly right in front your eyes.

You now need to calculate the odds of success of trading into these levels.

You will need some momentum indicators to do this - these will tell you the strength of price movement up or down and help you calculate the odds of success.

For example if price momentum weakens into resistance chances are it will hold if it increases on a break of resistance chances are the trend will continue.

There are two great price momentum indicators that any novice can use effectively:

The relative strength Index (RSI)

Developed by trading legend Wells Wilder (if you have not read new concepts in technical trading get a copy) its over 25 years old but a classic work and this is a classic powerful indicator.

The stochastic indicator

Developed by George Lane, this is one of the best momentum indicators if not the best, you can use.

There easy to use in forex trading and are covered in our other articles in more detail.

Trading is an odds game!

Trading is an odds game and for this you need to see the reality of price as it is and then get the odds in your favour by watching shifts in price momentum.

It is the shifts in price momentum you can use to execute your trading signals and get the odds in your favour.

If you follow the above tips and get both an external visual view and combine this with price momentum, you will have the basis of a powerful currency trading system.

Furthermore, you will be using objective analysis and trading on the facts, rather than using subjective analysis, which means you have to predict, which by its very nature is doomed to failure.

Follow the above tips and they will help you get the odds in your favour when trading forex and lead you to currency trading success.

Read more...

Best Forex Trading Indicators - 4 of the Best For Bigger FX Profits

There are lots of Forex indicators to choose from but here I will look at five that all traders should know about and if they are used correctly, they can enhance your profit potential lets take a look at them.

These indicators all complement each other and can be used in the same strategy. You can learn them in around an hour each, their visual and if combined with normal bar charts come together to give you a flexible and powerful way to trade. Lets look at our best Forex trading indicators for bigger profits.

Bollinger Bands

This indicator, doesn't generate trading signals but it gives you a view of volatility and all traders need to know and understand how volatility affects price.

A very simple effective way to use it is to use the mid band or 20 day moving average, as a simple way to get into existing trends.

Look to buy currencies in moves back to the mid band in a bull market and sell them, in a bear market - Simple? Yes but look at a chart and you will see how effective it is.

The Relative Strength Index

Developed by trading legend Wells Wilder, this indicator can give you advance warning of trend changes watch for the RSI to turn against the direction of the trend in overbought areas in bull markets and oversold areas, in bear markets to take profits or to enter contrary trades.

The Stochastic

The stochastic is the ultimate indicator for entering trades in our view, simply look for stochastic crossovers from overbought or oversold levels in bull or bear markets to enter trades, in the direction of the crossover and enter your trading signals.

Its the ultimate timing indicator and one, all traders should learn to use.

Average Directional Movement

Another Wells Wilder indicator and it's used, to determine whether a market is trending or not but its best use is, as a profit taking signal in strong trends.

Simply look for the ADX line to rise above 40 and turn down, to take profits and look for contrary trading opportunities.

These 4 Indicators can help you enter new trends, trends in motion with the best risk to reward and also give you advance warning of major contrary trends and if you use them, in conjunction with your bar charts, you will be soon making bigger profits with some of the best Forex trading indicators.

Read more...

How to Pick the Best Forex Trading System That Will Make You Big Profits Quickly and Safely

Looking for the best forex trading system out in the market? There will be a whole lot available for you to use. But you also need to practice a bit of caution as you begin your selection process. There will be some that would claim to be the best and provide you with what ever you need as well as help you gain profit. But may live you empty an empty hand in the end.

There are several reasons why you need to adopt the best forex system. What's in it for you?

If designed well, it can save you a lot of time. So make sure that you test your system. You don't want to end up at the loosing end just to find out that your trading system is not working the way you want it to.

There is no physical location where transactions are done. Most of the transactions are done electronically and there is no better way than to do it online using the internet. Foreign Exchange is different from playing the stocks or future trading. It deals with a lot of analytics that it's best to use a computer.

Having the best forex trading system helps simplify the complex characteristics of the market. If designed well enough, it can provide you with helpful information that can increase you profit. At the same time, it can provide you with trends that can assist you with decisions to make as you do trading.

Now that you know some of the advantages, here are some characteristics or features that can help guide you in finding the best forex investing system.

There really isn't a perfect trading system. So if you have been in the trading for a certain period of time and have good grasp of trading, you may also consider creating your own system. In this manner, you'll never the different curves your system does and the design it the way you want it to. That would be the best forex trading system for you.

But we know that developing your own system takes time and expertise so just in case you want someone else do it for you. You will want trading systems that of course provide you what you need. You need to make sure that it can provide reliable information. In this line of business, you need real time data and accuracy of information..

Make sure to be knowledgeable about the system. Identify it gives you everything you need at the same time; test the features to get a feel of what the system can do for you. It is highly advised that the provider has free trial. You can get a chance to text it and study it's capabilities as well as extra features.

Which ever trading system you, just make sure it's the best forex trading system that will work towards your advantage.

Read more...

Best Forex Trading Indicators - 4 of the Best Indicators For Bigger Profits

Many traders use numerous indicators - but over the last 22 years I have four favourites and I will share with you here and they have worked for me and they will work for you. Let's look at them...

Today, good old bar charts have gone out of fashion but I think their essential and use them in conjunction with the indicators below. I don't use candlestick charts, there is a big myth there better but there not. If you like using them, then do so but the relationship between the daily range open and close is obvious.

Here are the four indicators and you can read more about them in our other articles. There available on most free chart services and will take you around 30 minutes each to learn and then, your all set to start using them on your forex chart and start making bigger profits.

1. The Stochastic

For me this is the ultimate timing tool.

Trading stochastic crossovers with bullish or bearish divergence, into chart resistance or support, from overbought or oversold levels, is simply the best market timing tool. If the stochastic crosses from chart highs or lows the signal is even more powerful.

2. Relative Strength Index

This gives you the strength of the trend and when RSI weakens or strengthens, when the trend is still up or down, especially from over bought or oversold levels, you have advance warning of a contrary move.

When combined with the stochastic, you have a great combo for better market timing.

3. The Bollinger Band

Gives you the volatility of price and you simply need to understand it to make money at forex trading.

I love using pops to the outer band, near chart support and resistance, to look to take profit or, initiate a contrary trend. Also in a strong trending market, dips back to the centre band ( the moving average) are great value areas to look to add extra positions in a strong existing trend.

You don't time with them - you look for areas in line with support and resistance to trade into.

4. Moving Averages

Simple moving averages are great and I have just mentioned the mid band of the Bollinger band, which is in fact a simple moving average, to buy and sell back to in existing trends.

In strong trends dips to the 18 - 25 day moving average are a great place to load in new trades.

Another excellent time period is the 40 day moving average which acts as the last line in a strong trend with nearby support or resistance. In strong trending moves we like to trail our stop behind this level and it keeps us in the long term trends.

When trading with the above and support and resistance lines you will get market timing for your trading signals.

There are some other useful technical indicators and we like the ADX line and the MACD too - but the above are the four we use all the time. If you spend 30 minutes on each one you will soon have four powerful indicators that you can use in your own forex trading strategy, to seek currency trading success with.

Check them out, they're simple, powerful and can work for you too with a little practice.

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Forex Home Study Course - Learn to Trade For Huge Profits Risk Free!

If you want to learn the basics of currency trading, a good place to start is with a Forex home study course. The best courses will teach you all you need to know quickly and allow you learn risk free. Let's look at what the best study courses give you.

A Forex home study course will give you proven Forex trading tools and strategies, you can use to get the odds on your side and win. All the logic will be fully explained so you know how and why the tools work and you will also be taught sound money management.

To show you how effective the strategies are, the vendor will offer daily updates and trade the system so you can see how profitable it is and this will build your confidence up for when you come to trade. You will also normally get dedicated support from real traders, so you can ask any questions you wish as you learn.

To complete an FX home study course will normally take a week or two to learn the strategies and then, a month or so of practice; after this education your all set to trade for yourself and make some big profits.

A great advantage of the best courses is they offer you a satisfaction guarantee - If you don't like the strategy or feel that you simply don't want to become a currency trader, they rebate your subscription in full. In conclusion, you can see if you have what it takes to become a currency trader from home with no financial risk whatsoever.

If you want to win in a market where 95% of traders lose, you need to learn the basics and skills to get the odds on your side. If you want to cut your learning curve and get on the road to a triple digit income, get the best Forex home study courses and get on the road to trading success.

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Best Forex Trading Indicators - For Trend Following and Catching the Big Moves and Profits

If you want to make the really bit profits you need to follow the big trends so what are the best Forex trading indicators to help you do this? Let's find out...

Most traders like to trade short term and trade the noise of the market so they day trade or scalp and end up losing, the savvy trader, trades the big trends spends less time on his trading and makes bigger profits. Let's look at some of the best trading indicators the pros use to lock into and hold the big trends.

If you spot a trade and want to get into it, you can do it in two ways:

Breakouts

You can buy or sell a breakout to new highs or lows and when this occurs check momentum supports the move and for this there are no better indicators than the stochastic and Relative Strength Index (RSI), you can learn how to use each in about 30 minutes and if you are not familiar with them, make them an essential part of your Forex education. If they support the move and show price momentum is accelerating, you have the odds on your side and can enter.

Dips

Any trend will move to far too quickly, to become overbought or oversold and prices will then come back to an average price. If you want a good average to look to add to positions into an existing trend, you can use the 18 day moving average or you can use the middle of a Bollinger Band. The Bollinger band has many uses but overlay it on any price trend and you will see often prices rally in a bear market to the mid band and fall back to it in a bull market; you can then look to enter supported by momentum indicators.

Stops

Most traders never catch a big trend because they trail their stop to close. It's a fact that if you want to follow a trend for weeks or months and bank a big profit, you need to give the market room to breathe and accept open equity dips. A good Moving average to use is a 40 day MA which will hold you in the best trends for longer.

Another great indicator for defining if a market is trending strongly is the ADX line, its also excellent as a profit taking signal, if the ADX line moves above 40 and turns down, you have a warning to take profits.

Moving averages, RSI, ADX the Stochastic and Bollinger Bands, are indicators that all trades should make a part of their essential Forex education. To learn to use them will take you a day and for this work, these best Forex trading indicators could make you thousands or tens of thousands of dollars.

Long term trend following can be very profitable and the above indicators, will help you turn the best opportunities into huge profits.

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