Posted: October 26th, 2009 | Author: admin | Filed under: Forex Analysis | Tags: Forex Analysis, forex technical analysis, forex tool, fx technical analysis, MACD indicator | No Comments »
The MACD indicator is one of the most useful tools of FX technical analysis but it is not usually well understood. This is a pity because many traders could probably use it more effectively if they understood it better.
The letters of its name stand for Moving Average Convergence Divergence. It is true that the name sounds rather complicated and unfortunately this is often enough to put people off from wanting to know more. So they only use the very simplest applications without understanding the power of the tool itself.
Like most forex tools, this indicator is used to show us when a new trend is forming, so that we can get in on it and make money. The MACD does this by plotting the relationship between two moving averages.
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Posted: October 19th, 2009 | Author: admin | Filed under: Forex Tips | Tags: forex indicator, forex signal, Forex Trading, stochastic indicator, trading forex | No Comments »
The stochastic indicator is an oscillator that enables you to see at a glance the momentum of the market. Momentum is the pressure or weight behind the current trend. It is based on the idea that while prices are rising, the closing price will tend to be higher than it would be if the market was stable. Equally, when prices are falling, the closing price will tend to be low. From this assumption the oscillator measures when a trend is considered to have reached its limit and is about to turn.
The actual calculations are complex but fortunately you do not need to do them because most trading software will do this automatically for you. This means that you should be able to access the indicator plotted on a chart in your forex brokerage account.
The stochastic indicator will give you two lines that usually run fairly close together:
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Posted: October 11th, 2009 | Author: admin | Filed under: Forex Tips | Tags: foreign exchange basics, forex fundamental analysis, Forex Market, forex news, forex trends | No Comments »
If you want to make money from the forex market then you will need to know foreign exchange basics. You may have a good mathematical understanding of trends and charts but it is also important to understand the foundation on which the currency trading markets are based. If you do not, you could enter a trade at exactly the wrong time.
The forex market is heavily influenced by national and international news and current affairs. This especially relates to financial news but other major events can have an effect too. These may be expected or unexpected.
For example a disaster such as a major earthquake or terrorist attack is usually unpredictable but could affect currency values. There is not much you can do about this except always to be sure to use stop losses.
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Posted: October 5th, 2009 | Author: admin | Filed under: Forex Expert Advisor | Tags: currency trading robots, expert advisor, forex ea, Forex Expert Advisor, forex expert advisor reviews, forex robot, reviews of expert advisors | No Comments »
Forex expert advisor reviews can be very valuable for anyone thinking of investing in the foreign exchange market. If you are thinking of buying a forex robot to do your trading for you, you should certainly look at the reviews of expert advisors or EAs which is the name generally given to currency trading robots that operate on the free software platform Metatrader 4.
Currency trading is not the easiest style of investment to learn for a beginner, especially as most people trade their accounts themselves from their home computers. It is not just a question of giving your money to the broker or investment company and hoping for good results.
If you are going to trade on the foreign exchange market without a robot, you need to be constantly analyzing all kinds of charts, graphs and technical information so that you have a chance of working out when the prices are likely to rise and fall. As you can imagine, it takes time, experience and a lot of testing to learn to do this, even assuming that you have the kind of brain that easily handles numbers and complex charts.
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