Forex Trading - Useful Indicators to Improve Your Results

One of my favorite indicators to trade the forex markets is the Signal Bars. It tells you at a glance the trends in multiple timeframes according to various technical indicators. Let me say right from the get go that I did not invent this, but I have put it to good use. The features and benefits, and how to best use them, are what I want to share in this article.

The Signal Bars indicator resides in a corner of your MT4 screen. I prefer the upper right because I have the chart shift moved to about one-third the way from the right towards the left, so the upper right corner remains uncluttered. The Signal Bars indicator consists of three horizontal rows of colored bars, green for up, red for down, orange for no clear direction - and these colors can be customized. The rows are divided into timeframes: M1, M5, M15, M30, H1, H4 and D1 - and these can likewise be customized. Each of the three rows represents a different technical indicator. The top row is the MACD with settings of 8/17/9. Middle row is an Exponential Moving Average (EMA) with a cross of the MA5 and MA9. Finally the bottom row is labeled STR and consists of Relative Strength Index (RSI) with a setting of 9, the Commodity Channel Index (CCI) with a setting of 13 and Stochastics set at 5/3/3 and all three of these indicators need to be in agreement before a signal is generated.

Forex Trading Pip

What I particularly find valuable is that without having to look at the lower timeframes, you can tell when the M1 and M5 are beginning to move in another direction. If you're trending down and that is about to reverse, you'll see a dull green first, then as the trend becomes stronger it turns to a bright green. Yes, there are shades of red and green to show the strength of the move. Very useful.

The Signal Bars can be configured to show different kinds of data. These three rows of bars are the essence of the indicator. You can also display a large-font current price of the pair -again in green or red depending whether the move is up or down- which is very handy. It can also display the current spread on the pair and how many pips it's moved up or down since the open.

Further, it can show the overall daily range and the average daily range. To see how these different configurations look, visit my blog where I show a few examples. Of all the indicators available, this Signals Bar is one of the most useful and handy available. A search of popular forex forums will likely turn up the most current version of this valuable tool.

Forex Trading - Useful Indicators to Improve Your Results

Thanks To : Forex trade99. Forex trade alerts Best indicator forex trading

Read more »

Posted in: 101Inch,Cover,Fishbond,Galaxy,Improve,Indicators,keychain,keychain Tablet,Results,Samsung,Samsung Cover,Silicone,Tablet,Trading,useful

Forex Hedging Systems - are they useful?

There are many forex traders who seek to protect their assets after having suffered substantial loss of equity. While this is a good way to cut their losses may seem, a hedging strategy is not necessarily any help at all. In this article I will discuss why hedging trades may be a bad idea if you want to limit your trading losses.

What is covered?

Forex Trading Pip

The goal of coverage of a business there, the potential losses that would otherwise be incurred, can not be reducedthe hedge.

For example, say I go long the EUR / USD at 1.4030 price. The market immediately goes down to 1.4010 against me, resulting in unrealized loss of -20 pips.

In order to hedge against further losses, give me a second to trade: a short circuit at 1.4010 (which is the current market price). In this way, if prices fall further, at least I do not want to lose pips. If prices fall by another 5 pips, I lost 5 points in my first long position and win in 5 pipsmy second short position nets for a total of zero pips.

The problem of coverage in this way

This form of coverage is very interesting for the novice traders who do not really understand what they're doing. At first glance, it appears that coverage can stop a merchant from suffering further losses, while simultaneously turning the potential of trade to its advantage. This is the exact way of thinking that causes many traders wrongly in hedging transactions as you enterthose I have just shown.

Here's the problem with this method of protection:

Although the price still to be done in my favor and go back to the 1.4030 price, I'm still suffering from an unrealized loss of -20 pips! Why?

Because even though my first long trade balance (current market price at 1.4030 is the price itself is long gone), my job is the second short by an unrealized loss of -20 pips (remember that in the short to 1, 4010) to suffer a total loss compensation is not made-20 Pips!

Can you see how that even if prices rise again in my favor, I cover it still manage to lose money? Had I not sure I would at least break even from now.

It's not all. Because I have a second (cover) came to trade, I had to pay transaction costs extra on the bid / ask spread!

Forex Hedging Systems - are they useful?

Related : Free forex ebooks site Traderlive-fx & Stock Cooktop best

Read more »

Posted in: Hedging,systems,useful