Monday, October 17, 2016

Forex Scalping l Can trader make a living scalping ? Guide to Forex Scalping

Forex strategies ways to find imbalance on a currency chart

It has been a fact that people often look for mechanical system for day trading and scalping for quick profits but still they don't really know the way to do it and indicators used for scalping and it has been pretty difficult to select the pairs we can scalp and enough profits from it to continue to depend on Forex for a day living.

Build your system for Scalping in Forex else Practice this system for months to see its consistency

Forex Scalping is perhaps the most widely used term in financial market because there are not too many trends in stock and treasury market on consistence basis but there are few pairs specially exotic currency that really moves a lot on intraday basis for trader's benefit and that is the real benefit of working in Forex market rather than any other stock or financial Market in the world.

Forex Scalping needs combination of RSI EMA and Fibonacci

Checklist for the system. Plot a 14 period RSI on daily Chart
Look for direction above 50 or below 50 for the trend.
Also plot 50 period EMA on the Chart
Move to 5 minute chart.
Check any movement that is above 40 pips
Trend has to be clear with RSI Value
Now apply fibonacci to this 40 pips move as shown in the below chart.
Now wait for price to correct 61.8% to 50.0% but not below 50.00 as I don't consider there could be any institution driving price that low to sell. When Price retrace to the mentioned fibonacci number wait for the price to break below 23.6% . Also check that IF price break below 50 period ema and retesting the EMA (real bonus if EMA and fibonacci provide cluster or confluence) Last point check RSI and set stop above 78.6% which should be below 50.

Live trade example 16th October 2016 Gbp/chf

s&p 500 index looking to start another down leg towards 2072 l U.S Index update

Forex strategies ways to find imbalance on a currency chart

World Stock market are on a verge of falling over, and S&P is no different. Because of the fact US is facing assembly election next month and also federation chairman Yellen and his fellows looking for series of rate hikes next year. So, that all stands for strength in U.S dollar and weakness in stock market and I am still looking for test of the 2162 area,and then we could see decline towards 2072.

S&P and US stock Market hesitant of any bullish rallies ahead of presidential election

We have seen lot of sideways movement after we broke through strong levels and IF there are rallies then those followed by extended sideways correction and the area 2114 is much strong level both ways and any rejection here and there we could see strong decline ahead of the election in U.S. Reason being I am favoring bearish price action In S&P Index is that price has not correct too strongly after the rallies from the bottom of 1900 level and records high does not seems to be getting enough cash flow and market is quite hesitant ahead of election and that is why market can still be looking to get their funds out and spend in U.S dollar or any other liquid assets like gold and crude or even treasury bonds.

Saturday, October 15, 2016

Us dollar future looking for breakout l Spx look to start its bearish rally

hi readers, last week we witness some strong rallies in the opposite directions both by Us dollar future and us index spx and it remind me of old days when fed officials want strong dollar at the cost of cheap stocks and hence we could see start of some strong year end rallies that might continue next year as well.

Us dollar future looking to break as talk of rate hike in december fuel the market

Talking of us dollar, we see a strong spike by us dollar which could be ready to break the recent one and half year sideways correction. keeping in mind last federation meeting was quite crucial as all the officials thinks of december rate hike is on the cards most probably and this lead to rally in us dollar futures immediately and since then there is no stopping as now we could see a rally towards multi year high of 102.00

How traders should look to trade pullbacks

Forex trader eyeing this rally and looking for small pullbacks and it could be test of strong trading levels which hold previous rally or pullbacks to ema and small risk opportunities which can give way to strong rallies in coming future.

Speaking of Us dollar one can track the main driver of us dollar future i.e Euro dollar and as we break below 1.1040, and now we can look for retests and rejection of this level and keeping in mind the risk involved we should keep the stops very small and look to drive the most part of this downside rally which is eyeing 1.0750

Forex traders should be good enough to manage risk in volatile market

As a forex trader, we should be ready to take this type of risk and small risk trading strategies should be in our database as we must test them from time to time and make use of them when we need them most.
Technical trading is the way we can control our emotions and even in this type of tense situations where moves are happening so fundamentally, we should rely on our trading strategies for entry and risks, because rallies or statements can be revrsed anytime and we can caught on the wrong side of the market, so preparing good money management strategies to tackle with risk is a quality of a good trader.

Pullback trader should look for caution retests at historical levels and rotation centers

I have prepared few checklists where I look to spot currencies which are trending strongly in the one direction and then I start looking for possible entries with small stop and it can be a historical level, rotation center, fakeout or even test of strong supply level with caution or with compression.

Forex trading is about timing and news can never help you ride strong rallies and news cant be a big driver all the time and the one very good example is canadian crosses which are in strong downtrend specially gbp/cad and also usd/cad which has corrected from 1.4700 to 1.2600 in no time even after strong bullish momentum during past few years. Reason being the crude which has recoverdd 50% from its low. I beleive nlw its time foe euro crosses to come under pressure soon, specially eur/cad which has somehow manage to avoid its bearish startoff. Now I would be watching the retest of 1.4730 level and from there I would like to see new downside presure towards 1.4100 level and I would update the blog with the charts of eur/cad and spx during this weekend.

Role of ema's in forex trading strategy and How to use indicators to filter EMA's

Forex strategies ways to find imbalance on a currency chart

In this Article I am about to discussed various methods where you can use EMA for better trade entries and the rest depends on your accuracy how you find trend and how you work with it to find more and better trade Ideas. But you must kept one thing in mind that accuracy of EMA crossover totally depend on type of timeframe you use and best use of risk reward.

How to use EMA with Bollinger bands to trade Forex

In this chart, I have used EMA with Bollinger Bands and I always use to work only if there is enough dominant trend in one way and In the chart below we have see price manage to find a low and rise and there is atleast couple of strong moves.

First thing You need to find out is Watch out for break above 50 period EMA

Secondly, watch out for test of middle band and IF you want better entry then watch for second test IF first test failed to test band and second test closely waiting for band to touch the price and In such cases we manage to set pending limit orders with stops below last swing low as shown in the following chart.

Value of Risk Reward when You use EMA trading strategy

Before You research a system and want to test it for how much success You can have You need out find out situations where it work best and situation where it respond very badly. But IF you keep track of what you have manage to find out best in a trading system like this You have much better chance of Making much better earning from such system than you first anticipated.

How I use EMA with RSI to filter my trades

Wednesday, October 05, 2016

How to trade forex for a living as a beginner l How much does a currency trader make to make a better living

html> Forex strategies ways to find imbalance on a currency chart

Everybody keep asking questions about How do we start trading forex and can we really make a living trading it . It it never easy and IF you say you can do it with hard work and willing to spend long days on screen, and pick up technical tools plot trendlines and fibos and learn few basic candlesticks and use them all to look out for setups and congratulation to those who have been doing exactly what we need to be a failure.

Making a living out of forex could be the hardest job to do if you are a beginner,coz as a beginner you need to spend time to get use to profile its structure and specially the pair or pairs you want to trade as a beginner as it will put lesser stress and focus can totally be shift when you saw selective and rewarding trading opportunities.

One always thinks is it really possible to make a living trading just one pair and lets say if it is euro and it drives the sentiment and opportunity in euro is always on the cards as dollar index futures rely mostly on euro and us dollar is an international currency used for reserves for global transaction by almost every country.

So, us dollar future can be a premeire choice for investors and speculators and stay with it for atleast six months and just look trade clear swings rejections strong confluences and retests as I always mention in my charts.

But when you are on a role and specially at first phase of forex which is building strategies and understanding the limitations and risks involved, you are bond to show emotions and greed even you had great success in doing what you like and the worst part has not yet experienced and it often happens to almost everyone of us when e have no goals and no experience and we just trade for profits and everything is just buy and sell.

But I trade with plan after few years of failure and that plan includes the following:-

Analyze the risk of trading system

It becomes important for everybody to understand that you analyze the risk of every trade you open and for this you have to be completely aware of the risks involved and type of market you are trading and what is driving the price. Is it news or any unexpected event of riskier assests or price is just moving to catch the stops. It is the first clue when you see stop hunting that strong money is looking for areas to step in and that is why they accumulate price and consume all orders buy and sell and then drive the prices in the direction they want.

Then what things we should do to make a better living trading forex and How much do a currency trader make, so that he or she don't depend on any other income sources to make a living.

Let me help you with few examples and power of risk management.

I use these techniques after years of research and we can turn a $1000 dollar account to $1 million in  span of 10 trades but there is no time limit and it depends on setups and time you are willing to spend to look out for such setups but good option would be look out for couple of pairs and start analyzing daily and h4 time frame for low risk reward opportunity.

I set up a plan in which I use to consider few points that risking 20-30% and look for 10 times reward should always be the good one and right approach to your trading. I know risking 20-30% is way too much for  beginner trader but If You look out for lower risk and look to build your account with low equity, then probably it will take years for you to get to the destination. But if you still have a plan of risking the much you can afford and make money equal to your account equity, then it would sound good if you even have 20-30% success rate and no wonder you all have idea of what I am talking about even with this amount of success rate.

For more information hyperlink this page and look for updates for till next 7-8 months.

Another question might be arising out of mind that how much initial capital do we need to make a decent living or atleast keep us interested that We would make enough if you keep a plan and follow it.

We can make simple things look elastic If we have a plan and starting capital of $1000 is more than sufficient and then you can turn you luck and fortunes to make best use of your skills

Always track three to four pairs in a month that are trending nicely

In order to make a living trading Forex and maintain a balance between winning and loosing trade first thing one need to know is to stop looking for shortcuts or holy grail systems like indicator of Robert that can help you find trends and You can plan your trading based on those mechanical systems. Best thing to tackle any problem is always track couple of pairs that are trending nicely and you can look for low risk entries in those pairs and look to enter in squeeze and then there is big chance to understand PA and make most use of the opportunity provided.

Reason I always track couple-of or maximum of three pairs
in the whole month and look for setups and clear example is the following chart of kiwi dollar where I found no risk opportunity and my target was the trading history level and it was a good 10-12 times reward opportunity and that helps me a lot understanding the Forex not only as a beginner but as a opportunist and rest of the time I keep waiting and tracking but never hurry or rush to a trader ever.

Its not easy for us to look out such big reward opportunities but overhead supply and compression to supply was a big reason for price to fail at the historic level specially when there is new low found and price made and attempt to rejection or new supply level. Look at the chart below for more information.

Tuesday, October 04, 2016

Us dollar is about to explore to strongest rallies in recent time----US future technicals.

Forex strategies ways to find imbalance on a currency chart

I will soon update the blog as Euro is looking for support around 1.1115 area and soon we can see a rally towards recent high and see the pressure made by bulls to make a break, and then there would be much better view of the recent price action.

Monday, October 03, 2016

How to learn forex l Forex strategies, courses, pairs and system l concept of risk management

Forex trading is somewhat draw attention of every speculator and investor specially the ones who has good background of stocks and bonds market

why would one be interested in Forex market as this is the biggest financial market volume wise and liquidity providers are world's biggest banks, brokers and hedge funds. So, first thing you need to do is learn the basics of trading contract size pip value its history and mode of investing.

Forex Courses to choose from while speeding up the learning process. One thing, one must bear in mind that there are no hard and fast rules as one must stay with the mentor or source forever even if it is quite hard to understand and implement whole or part of what you learn.

How I manage to start my forex trading is I built couple of demo accounts for Three majors like euro pound and jpy against us dollar future. Then I  pick the trending and pair with clear swings on daily and intraday chart. I use to find low risk reward setups on hourly and on daily and this is the reason why I pick one demo account each for scalping and swing trades.

From today 4th October 2016 I am going to prepare a special column on the right aide of blog in which I would update opportunity and setups on daily basis or opportinity wise for next 3 months. I would pick Euro dollar, us dollar futures, gold futures and crude oil futures.

By doing this,You as a reader, would have idea on how I approach my trading from starting till now and how you can pick some of the good risk reward opportinity and ignore most of the intraday traps.

Usd overnight exchange rate hints a big turn around in Us dollar futures as pound tumbles

we have seen a big downside squeeze in pound exchange rate against us dollar and in result usd overnight deposit rate squeezed to +135 bps to 190bps.

 This could be just a start of us dollar dominance in coming weeks and months as speculation on rate hikes has come to extreme and it could just be around the corner and banks have started to buy us dollar against all major currencies and targeting the weaker one of them all in the recent time and if pound keep managing to struggle against us dollar then we can soon see euro and other major currencies start following pound.

Euro dollar has been in big consolidation mide since the mid 2015 and we have not seen any big rallies that follow any spike on weekly and daily time frame but we do need to watch crucial areas as bulls can play a trick for stop hunting and any rally that fails above the recent high or any big squeeze that fails within a session or two can be a very good area to enter.

Keep watching the blog for updates and I would post chart very soon of Us dollar and euro dollar with entry exit and targets.

Sunday, October 02, 2016

Useful steps to choose before choosing a trading system----See the facts you need to know before relying on traditional methods

How to build a powerful trading system

Forex price action strategies

------Never use failure price action techniques like fibos, trendlines and candles as price never react at those levels randomnly and if you expect trendline to hold the price when it is tested then think about it again because when I have to buy some dollars I wont check if a downtrendline is provide support but rather I would use that trendline to catch stops and always look for initial breakouts failure to catch the buy stop orders and after taking the stops for long trades I will catch sell stop orders just below the retesting candle and when market catch all the stops of sell orders then once again I have the best low price to buy and that is the logic of not using trendlines to predict randomn price movements.

Price action is the only and most effective tool

for trading, not only because it helps a trader to see the higher probabilities areas of trading but also most recent price level is used which can attract lot of orders e.g News can drive the price anywhere but after targets have been met we can see starting and ending points of targets provide strong trading levels and they are much more reliable in any case because that might be the areas where large bulk orders were placed and those who are still looking to enter the market after stop hunts can look to enter at the same levels and hence giving you an area to work with which is very reliable and logic behind is very clear.

We trade fibonacci waves, harmonic patterns in such a way to catch reactions at particular level again and again but common why market take turn at those levels again and again as price reaction at those levels is not random.

We just keep on learning different advanced price action techniques but never use our brains to come out with conclusions that what are the probabilities that a paricular fibo number will hold the price and a down or uptrend line will force rejection.

Shocking truth is these fibos trendlines and candles only tells 10% of the price history but as a matter of fact I never believe that a term trendline ever exists or helps trader to take trading decisions.

But as a matter of fact breakouts. Failed breakouts and approach to certain demand and supply level or retest of a particular are the most reliable and offer strong attribution of trading facts and as a matter fact are more reliable.

Weekly Review week started 2nd october 2016 ---- Us dollar gold and euro looking for direction

currencies and commodities review

Trading was quite light amid consolidatio due to profit taking during weekend and largely due to lack of fundamentals that drives the prices. I am waiting for trading to resume this weekend and as this week is another NFP week so one thing we can see is movement in USD crosses specially Us dollar future, gold and euro.

Prices of Us dollar and euro are in extended choppiness

Its nothing new in Forex trading that currencies went into deep sleep and price often do that when there is no participation by strong holders and volume behind moves are very low and spikes often got faded immediately or in next few hours and it never too far away from catching stops both ways and price start resuming trend again or even can reverse and in case of Euro price resumed its downtrend post Brexit and fall apart along with pound but has found support but approach to overall supply has been so compressive that I waiting for reaction at test of capped supply and Will look to short towards the alone origin and it could turned out to be a best risk reward deal if it behaved as expected

Us dollar can remain bearish prior to NFP Data

As far as weekly review or opportunity is concerned Euro will remain bullish and you can see buy on dips scenario but If we face relatively volatile price action for a session or two we should atleast wait for breach of strong supply or demand and in this case 1.1050 and any rejection from new highs and breach the mentioned area then we can look to sell the retests and that is the best way to trade price action.

Trade plan and strategy to trade currencies future and gold

Main purpose of this blog is always to let everybody give confidence and alert traders of possible opportunity available this week and also about technical knowledge. I always use to have one trading strategy and plan that give me clues of risk and probabbility of movement in currency in the coming week and I often keep eye on risky events and possible reason of rejections and stops. e.g this week I expect euro to show more movement as compare to its rallies in recent weeks.

Reason I am quite cirumspect because im my last post I expect price to hold recent support and that is what price has done and it holds and in such scenarios when price holds one area then it possible look for the next strong area that is holding the price up or down. As a traders you might have heard few technical terms like capping supply and retests and that is what exactly price respond to capping supply and when it retests the previous zone which hold the price up we can again look for this area to give away and then the whole context might be easy to understand. I will soon post chart on the idea what I am expecting right now and that is what forex trading is all about as it is about a plan to keep things straight and target the pairs that best suits the opportunities wise i. the coming days or weeks.

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