TRADING FOREX

Forex is derived from the word "Foreign Exchange", which means foreign currency exchange, or the exchange of one currency to another, the original purpose was for overseas payment.

Because of differences in supply and demand within a given time, resulting in the fluctuation of the value of one currency compared to another. Difference of average difference between the value of money at a time is then used to take advantage.

Since there was such an understanding was finally traded currencies in a market called forex market.

Forex trading is an activity to Buy (buy) or Buy (sell) currency is continuously and consistently for profit.

Can also be interpreted that forex trading is the bottom line currency exchange activities with each other continuously for profit.

In contrast to stock trading only benefit if we buy stock price goes up, the forex trading we can benefit from two directions, either up or down the price of an example:

Advantage of rising prices:

Price or exchange rate GBP / USD is now 1.5000
It means that 1 GBP = 1.5 USD
(1 GBP (pounds) if swapped into USD (dollars) to $ 1.5)

Now I have a capital of $ 150.
I predict that the exchange rate GBP / USD will Rise
What I do is BUY GBP / USD or buy GBP using USD, in the sense exchanging my dollars into pounds.

After the exchange, $ 150 I changed to 100 pounds.
After an hour the exchange rate GBP / USD rose to 1.7000
It means that 1 GBP = 1.7 USD

I need to do now is to SELL GBP / USD or exchange returned 100 Pounds which I hold a dollar.
Having exchanged my pounds 100 to $ 170 (100 x 1.7)
BUY and SELL of transactions within an interval of one hour before my capital changed from $ 150 to $ 170, meaning I earn a profit of $ 20.

Of profit-making prices fall:

Price or exchange rate GBP / USD is now 1.5000
I predict exchange rate GBP / USD will fall.
So what I do is SELL GBP / USD. suppose I want to sell 100 pounds.

Since I do not have the pounds to be sold, the process is 100 pounds I borrowed money broker to be sold or exchanged into dollars.

Having swapped 100 pounds had been turned into $ 150.
After an hour the exchange rate GBP / USD fell from 1.5000 to 1.4000
It means that 1 GBP = 1.4 USD or 1 USD = 0.72 GBP

What I do now is I swap back $ 150 a pound. So I will mendapatlan 107 pounds.

Now I hold 107 pounds. From 107 pounds, 100 pounds, I return to the broker, and the remaining 7 pounds this is my advantage.

From then BUY SELL transactions within an interval of one hour before I changed the capital from 100 pounds to 107 pounds, which means I get a gain of 7 pounds.

In practice it is not as complicated as explained above, because every broker provides a system that facilitates its customers.

Once you predict the price will go up, you BUY. if you did in fact UP CLOSE then you profit. Gain is calculated from the number of points earned multiplied by the number of lots traded.

Similarly, if you predict the price will go down, you SELL, if you do indeed CLOSE DOWN then you profit.

With the understanding that we can benefit from this two-way, ie market decline and rising market, you can expect to see that there is a huge opportunity offered by the forex trading for you to be able to make a profit at any time, anywhere and from any such market conditions.

There are 4 Phase Movement Bollinger bands that we must understand that we can determine the strategies that will be used in each of these conditions, namely:

1. Normal Conditions

The condition is characterized by normal bollinger band width tends to the same band from time to time. Mandatar the form but not narrowed, or tilted in accordance with the trend slope below 45 degrees.

Bollinger on normal market conditions will move back and forth between the ribbon band. Meaning when the market touched the ribbon outside the band, then the market will come back ketengah.
So the ribbon Bollinger Bands are also referred to as dynamic support / resistance.
At Bollinger normal conditions, the strategy is suitable for use scalping strategy.

2. Preparatory phase break

Break preparation phase is characterized by Bollinger who tend narrowed or horizontally. The reason could be because the market is really quiet, or for sellers and buyers are waiting.
Strategies that can be used in this condition is a trap strategy


3. Phase Break

Break condition is characterized by the upper and lower bands widen away. This occurs because the flood of orders that market power is so great. Impact on the market will move straight.

In phase does not break the trend reversal may occur normally, except occurs convergent.

Suitable strategy in this condition is a breakout strategy.

4. Phase Normalization Break

This phase is to find the balance and strength testing trend.Disinilah a trend in the test.

This phase is characterized by ribbon bands corresponding trend is moving in the direction that has been set up. Impact chart will form a pattern horizontally or wedges. At kondidi like this should not go to the market, but rather wait until the next signal

 5. Closure phase Break

In the closing phase of this break Bollinger bands will narrow. Market direction in this phase are usually flat or contrary to the trend that has just formed.

In this condition should wait for confirmation of the signal which will appear later.

That's how to read Bollinger bands, which at first is used to measure the market crowd. In its development, a trader can determine the next direction of the market Bollinger Bands only read as above.

Indicators are tools that help us map out the next market direction, so that we can decide to go long or go short.

There are 2 main functions of indicators are:

1. Provide information market conditions so that we can determine what strategy will be used on condition that
2. Provide entry and exit signals so that we can enter and exit the market with the right.

Of the two functions mentioned above, if you are looking for is the most accurate indicator of course the size is digasilkan signal. Indicator so that should be used is the indicator function function generating entry and exit signals are accurate, I recommend some kind of signal indicators with the following :

1. Pepotongan indicator lines
Indicators that have been producing accurate signal is stochastic and MACD

2. Touching a certain level
Oscillator type indicator that provides entry and exit signals accurately is Money flow index and william percent range.

3. Displacement position indicator
This type of indicator is very little, but the most accurate is the parabolic sar

Needs to be noted is that the indicator above will actually be accurate if used as indicators marketnya conditions, as well as the parameters are no longer using the default parameters have changed it to suit our needs.

The following settings can be indicators that make it more accurate:

The most accurate indicator parameter:

I. Stochastic Oscillator
Period parameter is K = 9, D Period = 3, Slowing = 5, Price Field = Close / Close, MA method = simple
Signal Its entries are in the area when it happened perpotogan saturated

II.Money Flow Index
If the parameter is to be predicted is a short-term means only 2-3 next candle use MFI period = 3
To predict the long-term use period = 5
Its entries Signal Buy when the MFI value is 0, and sell when the MFI is worth 100.

III. Parabolic sar
The parameter is the maximum step = 0:02 and = 0.2
Its entries are Signal Buy when it first appeared sar dot below graph, and sell when sar dot above graph appears

For a while only 3 indicators that I know .. then followed in the next post

That is the most accurate indicator that can be used to produce more accurate predictions. Good luck

There are two types of indicators are known based on his time, the indicator and indikotor modern classic.

Classic indicator is a simple indicator that is used to manually or used without the complicated calculations. While modern indicator uses a complex calculation that can only be done komputerisaasi. Most of the indicators is the depiction of modern classic indicators or merging several indicators.

For example moving average, the trend line and support line and resistace. Here is how to use the classic indicators to predict the Market:

1. Predicts Using Moving Average

Moving Average is the average picture of a period. The rule is when the price is above the average then called up and when the price trend is now under so-called trend down.
Namum, If the wait condition that happens then we are late when we entered the market at that time. In order not to be late we have to identify the start of a trend with moving averages.

Characterized by a rising trend line MA (Moving Average) are cut from the chart above. Downtrend lines marked with MA (Moving Average) which cuts the graph below.
There are two options that are used for entry point:

a. When the line crosses the MA diertai enlarged volume.
b. When different MA lines intersect period.

2. Predict the market direction using the Trend Line, Support and Resistece.

Trend Line, Support and resistace is a line. But has a different line.

= Trend Line serves as a line delimiter. If the trend line is broken, then the trend will be kind direction.
= Line Support serves as the bottom of the wall that will reflect the price back up. But if successfully penetrated the price will continue to fall down.
= Line Resistance serves as the top barrier to reflect the price back down. However, if successfully penetrated the price will continue to rise.

Main rule:
If the third line is successfully penetrated, then the price will continue to move further. But if it fails to penetrate the price will reverse direction.

Entry Point is there:

1. When a trend line break line, support or resistace with large volume

2. When prices were around the trend line, support or resistace, and overbought market conditions or oversould.

Function of both the technical analysis or fundamental is to determine whether the price will go up or down, will move in the same direction or reverse direction.
Based on the type of analysis is divided into two, namely:
1. Analysis to determine trends that will occur, ie globally analyze price movements and predict the form of graphs that would occur.
2. Analysis to determine what type of candle that will be formed, whether bullish or bearish candle candle. This means that only target one candle only, but it has a candle that shot distances as large as a trend. So usually use a candle that targeted the 4 hour time frame up.
In terms of determining the trends that will be formed, just as a supporting role candlestick alone. Ie as a signal provider entry / entry point, so that traders get the best price.
I. Entry Point Trend Up
Rising trend can be detected by the appearance of long-bodied bullish candle forwarding set up a low after the rising graph

 And this is the result 

II. Entry Point Trend down
Down trend could be detected with the advent of long-bodied candle bearis forwarding set up a high after the chart that modestly
This is the result

III. Entry Point Reverse Direction Up
Reversal of the trend down to the rising trend could be detected by the appearance or inverted hammer candle and candle reversal hamer in oversold area or convergent.
 


 This is the result
 IV. Entry Point Turn Directions Down
Reversal of the rising trend to trend down could be detected with the advent candle shooting star, hanging man and the kind of reversal candle overbought area or convergent

This is the result 

In terms of determining the type of the next candle is bullish or bearish, candlestick serves as a lead actor, supporting a form of the previous candle chart compilers.
I. Forwarding entry point is if the previous candle candle forming constituent meneunjukan continuation and trend graphs to continue.

 The most potential to continue the trend when the price is just reverse direction, or in starting a new trend, because if the trend has been formed, the next step is a potential weakness. Therefore, to zero in the next candle candle should we use that characterizes that price just reverse direction or a new trend begins. And the candle shape like this:



Example of analysis: 

In the picture above we see that the candle has emerged continuation types. From here we can predict that the next candle will go down. To mesamstikannya we see his chart pattern on a smaller time frame, then we analyze whether its graphics will show terjeadi trend down as well.

 From the above chart we find 3 things that show the trend is going down, namely:
- The existence of a modest peak
- The line that successfully penetrated support
- Break of the support line was confirmed with a correction which then in turn again down by long candle.

 And here's the result: 
 
II. Entry point reversal is if the previous candle shows the type of candle reversal, confirmed the constituent graphs are overbought or oversold atu even convergent.

Forex is a business that offers the opportunity to gain huge profits in a short time even with minimal capital. But the fact is not everyone can successfully pursue even sebangian forex business of which went bankrupt. Only investors who have a stable Psychological Trading, Money & Method Managemant really powerful one who can survive and produce a profit.

One of the things above that also determine the success of this forex business is metodhe or trading.Penyusunnya system is the analysis, because the method or trading system basic function is to tell the trader when to enter the market and when to exit the market, so that we make a profit trading.

There are 2 types of forex trading means analysis in general, namely:
1. Fundamental analysis

Maybe you've heard on television about the rise in global oil prices or the Fed's decision (the Fed) to raise interest rates, which is an example of fundamental news. Analysis based on economic fundamentals news is called fundamental analysis. Any news that has been issued and will appear on the market reaction that leads to a change in price. That is, the news issued by agencies or companies in a country will make changes to the price of the country's currency.

Therefore fundamental analysis found market price movements caused by the news and government policy, and the market response to the news.

Examples: Housing in America start this month compared to last month's increase. Increased housing construction showed meningkat.Tingginya purchasing power purchasing power is due to the increased income. Only healthy companies who can provide such income. Companies showed healthy economy is in good condition. Favorable economic conditions will attract investors to come in and invest. In addition to the good economic conditions will have an impact on increasing the number of exports. As a result, of course, the U.S. dollar is getting hunted. Why? to invest in America we have to use dollars, so we need to exchange our money into dollars first. If we import goods from the U.S., then the payment is done with dollars, therefore we need to exchange our money into dollars for payment of imported goods.

In essence, when we perform fundamental analysis, we will look at the living conditions of the people of a country as well as the condition of the economy, the ends will be tied to the economic conditions of a country. The better the economic conditions of a country, then the value of its currency to rise, and vice versa.

The most important factor when we use fundamental analysis is the speed of capturing news, news accuracy and ability to predict the market reaction to the news is released.
2. Technical Analysis

Technical analysis is a method of analysis or how to predict the next market direction by using the data of the past and present, for the reason that triggers the movement of the market is always issued news constantly over and over, so that the market will move to repeat. Such data are usually presented in chart form (charts) as well as on the process and on the analysis of the trading platforms using berbegai indicator.

If fundamental analysis to make sure about the direction marketnya where regardless of when to enter the market, technical analysis focuses on when to enter and when to exit so that we get maximum profit.

Determine when to enter the market very closely related to the strategies used by traders. There are 5 strategies commonly used by traders, namely:

1. Strategies buy sell top bottom
2. Trend follower strategy
3. Breakout strategy
4. Correction strategy
5. Convergent divergent strategies

Looking at the above strategy can be summed up bahw focus technical analysis is:

Looking where the peak and valley points.
Determine when to start a new trend.
Determine when there is a breakout.
Find out the extent to which the correction will end.
As well, see whether there is convergence or divergence

Actually, in the world of trading, there are many models and manifold. In a trading system offered by the forex master through various forums, a place where forex traders to share their experiences. Where all the trading systems claim to be one of the best trading systems and as a second opinion for traders who are looking for the best forex trading system in getting an advantage.

Although the trading system trading systems offered are the best ones, will surely be reborn latest forex trading system, which can provide a level of success in getting a better profit. In fact when you think about trading the forex market is a market that is still, in the sense that the object has to offer fixed, where a country's currency. It's just a trend that frequent changes. A forex trading system is a system that remains, which is the currency as its main object. While the trend is always changing as a reference in making a decision in the midst of an ongoing forex market. That means, a system that offered in ancient times, at the beginning where forex trading is a system with the same object, the currency of a country and remain valid.

Trading systems that exist today many giving options for traders to make decisions in forex trading. How effective trading system is the best ever? Or question is made more simple and more personal: how much profit you can gain achieved by the best forex trading system ever to use and suitable for you? There are Sidus system, KG system, system fan, Donchian system, Trend EMA system, nail systems, Simple Trading System, Renko Ashi System and many more. All the forex trading system provides many advantages and attractive for traders, because the master is like many forex through forex forum for free. Navigates the world of forex, not have to discuss about profit and loss. Because the bottom line is these two things. Forex world is not an easy world to get a success.

I am reminded of the wise words of success: Success is a journey, not a destination To get success, failure in the forex world is commonplace. There was no professional forex trader and successful without going through a failure many times. One of the tips of a successful trader I have ever seen in a talk show on the private TV station 'Kick Andy' is: "Keep in mind our brains, that we can be successful and can achieve our dreams of success" So automatically, subconscious we have made certain settings about success and every movement of our lives formatted steps to get success.

It is very inspiring to me separately applied in the forex business. Therefore, for my friends who are not experiencing success in the forex world, let us try to make the failures in the forex world which we feel for this as a journey for success and it is a happy journey where we have a purpose, we have hope and we had dreams that we can make happen.

How a sophisticated and best forex trading systems offered, success does not come from there. mental rather than us to reach success. Trust me with the advice of our parents or people older than us. Forex world is not only about the money ... money ... and money but about psychology and mental. If we are able to maintain and control our psychological and mental, is not mngkin, the simplest indicator or trading naked, we can take the profit offered by the forex world.

    I learned a lot from the failures I've ever experienced, I could be 'more knowledgeable about the world of forex' because I've failed. I've failed, but I am still here and will never despair.

how about you?