Saturday, August 13, 2016

ways to find true trends l exit and entry rules in Forex

Forex strategies ways to find imbalance on a currency chart

Trading has been quite choppy and reason being the expectations and japan and Britain focus has now again been shift to Federation and next meeting will be a concern that september rate hike talks would be strong and we can see a hike next month when federation member met for the policy discussions.

Ways to find true trends

Its always important for us to know the trending pairs and play a waiting game till the price itself talk about the next move. No laughing stroke, as I see chart talking about the next move and that is what a trader has to look out for. Recent price action in Aud/nzd tells me that parity is again on the cards specially when so many rejects and overall bearish trend is roaring and we see another rejection Friday and test of 1.0700 area will be rejected once again and we can see 1.0450 and 1.0270 are and that will be a much better trade entry with no risk at all.

Entry and Exit Rule

Sell stop at 1.0700

stop around 1.0735

Target first 1.0580

Target second 1.0450

I really want to test If price has rejected with purpose and supply from 1.0700 has been tested twice and reason I am quite confident that Price has engulf the last flag which was protected while it was tested last time and this time price has strongly rejected from the supply again and this time engulfing the demand strongly and that is the reason any test of 1.0700 will be rejected and that is why I always trading pairs which are trending and have clear swings and have least risk involved.

Swing trading is not easy but logic behind Swing trading is quite simple and you don't need any help of Indicators and other technical tools to spot the involvement of strong money as they hardly watch any chart to move the price and they use charts only for one purpose and i.e stop hunting. That trade of Aud/nzd can really help you trade naked charts once I post the chart in my next post of trade diary for the week August 14th 2016.

Friday, July 29, 2016

How to find Imbalance on a chart-- Supply and demand Indicator

Forex strategies ways to find imbalance on a currency chart

It has been quite a busy week but at the end of the week as it happen mostly on last trading Friday of the month and last day of the week, currencies starts moving erotically and usd/cad was no different.

But what different has happen as it was on the cards and when you spot smart money around you can expect movement in every correlated or non-correlated assets class pair and as Canadian dollar is directly correlated with Crude, whose downside pressure was on the move suddenly we see profit taking and GDP numbers from US and Canadian Area was surprising factor in the overall context and hence strong movement was already witness on the chart.

Ways to find Imbalance on the Chart

As you all might wonder, what is imbalance and I have stated it so many times in my blog Articles that strong trend reversals out of nowhere and then minor bull bear fight to move the price is the "Imbalance", area on the chart and we all must eye such locations and canadian dollar recent up down movement was a great clue of something will give away at some point and today was the day.

IF you see the chart clearly I have mention two areas where strong set of orders are seen after price make a new high and fail to hold on those highs are first clue of collecting all the buy orders against the big sell orders and this week new multi month high was no different as price engulf that with pressure and after that you just have to find the approach to supply and QM area to short and where risk to reward should be atleast 5-6 times but pair has fallen more than 150 pips so that rewards was never expected.

Wednesday, July 27, 2016

How to Master the Art of Swing & Scalping Trading Techniques in Forex

Master the Art of Swing & Scalping Trading Techniques

Its has been a struggle for new traders to how to choose from swing trading and scalping as short term risks are always better for them to get small profits and build their accounts and they try using lot of indicators and expert advisors to see the results if it suits their trading style and yet it never did they never been able to admit that there is no such path of success that leads to shortest way to get there and scalping is such an illusion that traders find themelves very difficult to get out of those short term money making techniques.

How to use selective approach and be versatile in Forex

As a young trader, everyone use to try everything, atleast for first few years and it has been happening to everyone of us, not to every 2 or 3 out of 10 traders but 9 out of 10 traders using same techniques and mistakes over the years, but technology has changes and everything is made available so easily these days, but choice and control depends on traders as it always been the case.

But how and when is always the biggest question arising out of minds. So, lets start this journey with few checklists that we always need to be aware of while picking up choices between swing trading and scalping.

To start off, scalping is a technique which we use to trade to pick up small profits by entering a suitable pairs for several times a day .let's say scalp euro for 10 pips with stop 3-5 pips and do that 3 to 4 times a day and you succeed half of the times. So risking 5x4=20 to make 10x4=40 which means reward should always be 2 times or more.

In the process mentioned above even If you win half of the times you still make 20 pips and even if you loss three you still loose only 5 pips for the day and it is easy to recover next day and hope you win 3 out of 4 and that process continues and you start to believe in yourself that slowly and surely you can built such techniques and from time to time apply filters to make these scalping technique much improved and easy to use to identify setup to make a sound living out of Forex.

That statement tells us the importance of money management skills that we use to implement in our trading no matter what strategy we use and no matter which trading style we adopt but now the question is which strategy is so powerful that help us identify the direction and pinpoint stops and profit target that we can use the entire day or even a single session on day to day basis.

Simple answer here is adaptability and our accessing power tells us pairs that are trending and for this we should not be limited to a single cross and pick multiple pairs that are trending and find trade locations which tells us the probable profit potential.

Simply pick gbp/jpy and pairs which trend strongly everyday and yen paris hardly offers extended choppiness and are best to use while swing trading and necessary tools you need to pick up trend with entry and exits are being discussed in details below.

Necessary Tools to pick for Swing Trading

You can pick any indicator for scalping and for this purpose I pick bollinger bands, RSI and fibonacci.(settings are not important as you can use default platform settings)