What About the Descending Triangle? 1 Forex Trading stategy. The strategy is my favourite only because it makes me the most amount of money based on data that I’ve collected on over 2K Forex Trades in the past 4 years. In short, the strategy consists of scanning for stocks that are forming a certain pattern. The reason why I called this my favourite is that it works most often for me. People are different, Forex -- Foreign Exchange -- Definition & Example you might be a different story. I always recommend you to develop your own angle and your own personal trading strategy. The pattern is called the ascending triangle (AT). It forms when the price of the instrument seems to gather upward momentum by coming closer to a “glass” ceiling that it has trouble breaking at first. More times than not, when the ceiling breaks, the price will continue shooting higher. I personally have an above 70% success rate with this specific pattern. I like to enter as soon as the resistance level is broken and I set my stop loss below the previous low. In these set-ups, I’m looking to make at least 1.5:1 risk return ratio.
Forex Bank Currency Exchange
Meaning that if I risk 50 pips, I’m looking to make around 75 pips. I also look at the price action, if the break-out is really strong, I may let it run for a little longer, while paying attention to not losing the profits that I’ve already made. I always save the chart patterns that I use for trading and enter the trade into my trading journal. If the pattern is not working, I also check if I should adjust the RRR. One ratio is a function of the other, if you adjust your stats, you will also see shifts in your RRR or profitability ratio. When you’re just starting out, I suggest you try this with a 1.5:1 risk reward ratio. When you get some experience and collect your own data, you can start adjusting. If you’ve read any of my other strategy articles, you probably already know that I like to grade all the patterns once I enter into a trade (just like them scientists grade hurricanes). My grading is based on how pure the patterns are.
The perfect set-up being a 10 on a 0-10 scale. With the AT, I’ve been able to be profitable with patterns that start from grade 6. This is the lowest of the patterns I’ve used. Most other price patterns require a minimum of 8 to be profitable in the long run. What About the Descending Triangle? A descending triangle (DT), is the opposite of the AT. It happens when the price is heading down and can’t seem to break through a glass floor. It bounces off of it and every time the bounce seems to have less energy. To check out more information in regards to RoboForex look into the web site. The descending triangle works just as good as it’s brother AT. The success rate is about the same, which means that you have twice as many opportunities as you would have when only trading these on the long side. Oil: In the example above, we have oil price trying to break to new highs. The chart has formed a rather sharp ascending triangle.
I’ve given it a 7, because the ending of the chart is a bit messy. With the triangle patterns, 7 is a good enough grade to take a trade. USD/CHF: The above chart is clearly in a downwards trend and in a descending triangle formation. The formation is rather clean and thus could provide a decent trading opportunity. Here we would be looking for the bottom trend line brake before entering. Triangle patterns are fairly profitable, although they are harder to find compared to some other simpler set-ups like channels and trends. The clearer the shape, the likelier it is to play out in a predictable way. I recommend to take the time to record the patterns you trade and rate them. When you’ve collected sufficient data, you are able to forecast which grades yield profitable trades and which do not. When trading forex, all you need to do is go through the charts of different currency pairs. Don’t be afraid to check through the less liquid pairs as well.
You don’t need to stick to the big pairs, it would limit the amount of opportunities available. When checking various pairs, browse different time periods starting from longer and moving towards shorter term periods. This way you’ll be able to start from a more broader view of the market sentiment and zoom in to spot possible set-ups in shorter timeframes. For example, this EUR/USD chart shows us that the pair has been trending higher since the beginning of 2017. So in general, we would conclude that the pair is riding an uptrend. If we zoom in to a shorter time frame like 4 hour candles, we could see that the pair is slowly pushing higher towards a local high. There is a small ascending triangle forming here. I wouldn’t touch it before it starts to form a more clearer pattern. However this is something that I would be interested in.
Whenever I find a really good one, I will buy/sell or put in a pending order.
While writing this post, I did add the pattern to my watch list to see how it develops. It might get interesting by breaking the previous high, which is where I would jump in with a long trade. In the present case however the pattern isn’t clear enough for me to enter a pending order straight away. When entering into a trade, it is best to zoom in even further to pay close attention to the support and resistance levels. Previous highs and lows tend to be a significant point of interest for a lot of traders, which makes these levels important. Whenever they brake, there might be some action ahead. I go through all the main currency pairs to hunt for the triangle pattern. Whenever I find a really good one, I will buy/sell or put in a pending order. If the pattern isn’t clearly developed yet, I’ll add it to my watch list like in the case above.
As you probably understood, finding a unicorn triangle pattern is tedious work and only happens every so often. However when you do find one, it usually is worth the hustle. Going through all the various patterns of the main currency pair may seem boring, but I am not hunting for a single pattern, I have 4-5 main set-ups that I’m looking for. I almost always find something to add to my watchlist or take a trade on immediately. Oh and please understand that Triangles is my favourite only because I have had the most success with them. I strongly advise you to test out various patterns. Find and record them. Keep track of your results (with a paper account at first if you’d like) and find out which patterns work the best for you. You need to put in the work to actually get results. The majority of which consists of analysing your trades to adjust and improve in the future. This is the only way to give yourself a true chance of success. Good luck with your trading ventures! Please feel free to drop me a line in the comments section if something is unclear or should you have any additional questions. Yours personal experience with the pattern is more than welcomed.
Forex Trader Adalah
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways: Flights to quality: Unsettling international events can lead to a "flight to quality" with investors seeking a "safe haven". There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. Long-term trends: Currency markets often move in visible long-term trends. Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at longer-term price trends that may rise from economic or political trends. This market truism can apply to many currency situations. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or "overbought". To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when investors focus too much on the relevance of outside events to currency prices. Economic numbers: While economic numbers can certainly reflect economic policy, some reports and numbers take on a talisman-like effect - the number itself becomes important to market psychology and may have an immediate impact on short-term market moves. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
The Forex Traders
The technique to use pivot point in Forex trading has come from previous generations who used to trade through pivot points. Then they need to calculate these points based upon the market trends themselves but due to technological advancements computer can perform the same for you now. The trend for using pivot points has seen a downfall since many new techniques in assisting trading has come up but the value of such points is same in Forex trading. Pivot points are support and resistance levels which are derived from the past period of changes in the market. Always remember that a market can either go up or down or sideways just like a pendulum movement. A pendulum which is held from the center can move left, right or sideways but once it becomes stable fix its position at the centre. Similarly the market may go up or down but will come at the stable state sometime which we will get to know with the help of these pivot points.
Forex Trading Demo
There is no need of getting into the deep of calculating the pivot points as it is a long procedure and now we have various gadgets which will easily calculate accurate pivot points for us. Pivot points help us to know the entry and exit points and thus will help us to know when to purchase a currency and when to sell it. This will never make any lucrative opportunity to go wasted and thus will help us making profits. Pivot points are used widely by various technical persons as well as any other traders. There are even some traders who are dependent mostly on the use of pivot points and perform there trading solely on the basis of this and are less dependent on other source of help. Pivot points just act as objectives to help when to invest in Forex trading as which is the safe time to invest and thus will help us minimizing losses to a certain extent.
Since the pivot points are calculated mathematically hence they give as the best time period which can be obtained by any other means. Pivot points in the Forex trading world have never lose importance and always are a source of minimizing losses. It is always advised to enter into the Forex market will all possibilities in mind and having a strategy for all cases. As trading is one such example where there is no one strategy to follow and requires diverse strategy every single time as many new faces are seen by traders once they enter into Forex trading. Pivot points are calculated on previous days changes and are more favorable for short term traders who wish to know the trend of market regularly as these are the traders who make many transactions per day. Pivot points are less required by the long term investors who sell out not regularly but waiting for the market to peak, hence have less interest in day to day changes. Pivot points thus are points of resistance and support for the trends which tells us when the short term trends will be reversed.
FX and FOREX are two of the terms used interchangeably within this market.
Various companies engaging in the foreign exchange business have gone online to conduct business. Some are definitely legal but there are some whose main target is to scalp the people with their hard-earned money. Financial transactions between one or more countries usually occur in the foreign exchange market. FX and FOREX are two of the terms used interchangeably within this market. The Forex markets are defined as the buying and selling of currencies between countries that have different monetary units. Most of these transactions transpire between banks and other financial institutions, both public and private, in the countries involved, and as long as currency exchange is needed then the FOREX market will continue to exist. An example of these transactions would be when a person travels to another country and has to exchange his dollars or euro for the local monetary unit to enable him to buy something in the domestic market.
In this case, he would usually have his money changed in a bank, where such transactions are provided, or in an accredited agency which handles the same thing. It is to be noted that not all banks and financial institutions have foreign exchange services. Unfortunately, there are still a lot of people who are not aware that such transactions are processed through intermediaries like banks and certified institutions or companies. There are some who prey on these individuals by offering them a chance to make a quick buck. Since the rates usually vary, those who are involved in it monitor its movement since it might also mean a significant difference in its value. But if one falls in the hands of unscrupulous individuals, instead of earning, one may end up with nothing. The very fact that money changes hands so quickly, means the FX market has been a likely target for those who are trying to perpetuate various FOREX-related scams.
Some companies have been blacklisted and one should be wary of them.
Most of those affected are individuals or small businesses who are on the looking for a very quick return of investment, without assuring themselves of the validity of the transactions. Some of these scams are prevalent online. Its spread may have been brought about by the lack of knowledge that such transactions should go through legal intermediaries. Various companies engaging in foreign exchange business have gone online to conduct business. Some are definitely legal, but there are some whose main target is to remove people from their hard-earned money. Fraudulent transactions with these companies or individuals may result in huge losses so Beware ! There is plenty of soft ware claiming to aid in foreign exchange transactions. Lot's of this soft ware can help in trading forex, but before investing in it, one has to determine the companies reliability and if such companies are legitimate . Some companies have been blacklisted and one should be wary of them. It is still best to make the transactions via banks, who usually have their respective trained brokers or personnel who can assist the investor or the client. As such, it is still recommended that one should go to a legitimate broker or the bank to avoid becoming a statistic of Forex fraud.
This single forex trading strategy once understood will be your added arsenal in your forex trading system. In the chart above: Forex Trading Pair (EUR CHF) Weekly Time FrameYou see price touches the pivot zone @ 1.2405 (orange line).That is an all time low pivot zone. When price came down and touches the pivot zone the first time (marked by blue box 1.) It gets rejected and bounced back up. And so it retraces back up for a little while to come down back again to test the pivot zone for the 3rd time. Now, most people may think that since price had tested the area for 2 times before and got rejected by it. Price moves in patterns and respect these patterns most of the time. And the No. 3 is one of it’s pattern. As simple as it may seem, it is true. Forex trading need not be difficult. It is all about understand how the market moves and how to play along with it. Learning price action is a major key in forex and in combination of a good proper forex trading system. It is a matter of time before you find success accompanied with discipline and perseverance. Check out our AFM winning Price ActionForex Course where i teach you the exact FULL Forex Trading System that i personally use to be consistently profitable.
Forex Money Manager - Have You Considered This Option? Forex Money Managers are online overseen Forex accounts that offer to oversee, exchange the business sectors in the interest of customers in Forex. Forex support chiefs are prepared to give their administrations to you. It’s implied that this choice gives financial specialists an extraordinary number of points of interest because of the way that larger part of oversaw Forex accounts make more money when contrasted and standard retail speculators. For a normal retail Forex broker who is simply beginning in Forex exchanging, it shapes a fairly troublesome movement to ace Forex exchanging. Most tenderfoot Forex dealers flop inside two or three months. It must be called attention to that most beginner Forex brokers lose cash when exchanging monetary standards as well as when managing oversaw Forex accounts which neglect to be respectable. The noteworthy advantages of contributing through Forex support supervisors is that financial specialists don’t have to get together with gigantic interests keeping in mind the end goal to get to this specific oversaw Forex accounts. The general presumption is that a lion’s share of oversaw Forex accounts expect speculators to contribute no less than one million dollars.
Topic title: A Profitable Forex Trading System
Topic covered: ava forex, forex affiliate, forex trend, master forex, online forex purchase
