Forex Trading - simplicity in two lines ~ Forex trading pip

Sunday, June 19, 2011

Forex Trading - simplicity in two lines

6:51 AM

Forex Bond

I'm always looking for new indicators that work well together and confirm each other. The indicators show that either there is a trend, or that the price changes direction and there is a new trend, or is not a trend, and prices are trading range.

Early in my business career I have often prey to "analysis paralysis' ... it is so overwhelmed by information from many different indicators that it was almost impossible for any kind of decision that I deal with rangeTrust. As I matured in my career of trading that I have learned to appreciate simplicity. More is not necessarily better ... and simple is good ... as long as it is effective.

Forex Trading Pip

You may have seen on the display "Forex-Sniper". There is a line that changes color to indicate whether prices are moving up or down. Normally, green and red is down. If the direction is the line turns yellow undecided. As with most indicators, MT4, you can color on what you want to change. I recently met two of theseLines. It can be used at any time - Working together for a trading system that is so easy to do is stupid.

The first line is the average non-ejection Adaptive Moving (NLADA) with a value of 45. We have seen above in conjunction with the NLADA Alert beginners. The second line is "LSMA color" of. I'm pretty sure that the part stands for moving average MA. I have no idea what it means to LS. In any case, the value of this 34 These values are adjustablewell.

As I tinkered with these two I have added and subtracted to integrate other indicators: EMA Crossover alerts Awesome Oscillator MACD, RSI, Stochastic, CCI - the whole range. When the dust settled I find it alone, without all the extra noise created by other indicators.

It would be easy enough to understand that if both the green lines are too long. If you are red, you are short. I found this to be the most effective in the shortPeriod of time and length. You can barter or H4 M15 equally well. If you're lucky, can in front of your computer for a while ', sit up while London and New York trading sessions. If not, then you must have a plan to trade if you do not develop at the computer screen to watch non-stop.

With a signal provider for a few years ago I learned gradually implemented. Suppose that both lines have just turned green, so that you are considering a trade is long. The angleLines is important. If you move sideways, which shows no real trend. You want to present a clear angle of, say 40-50 degrees or more are ideal. Whatever the number of tickets you decide to trade - which is divided into three parts.

Let's say the ten trading mini lots. For the first four mini-plots set a profit target of 10 pips. For the next three mini lots, the profit target of 20 pips. Lost in the last three mini lots no objective place, but add a trailing stop of 10 or 15 pips. TheStop-loss total of this trade is just below the bottom bar / candle down last year. With this arrangement, the growth potential is significant, while the downside risk is limited.

Remember, you can easily earn only 10 pips a day. You mix that in a period of time and you'll be in good shape too long. As always, it's a good idea to trade only in the direction of the general trend. If the longer term the trend is, then skip the short trades. They tend to be shortand weak. This approach is very popular because it does not take a rocket scientist to understand. This is not brain surgery. Everyone, even the novice trader, understanding and implementation.

Forex Trading - simplicity in two lines