Have you ever wondered what makes a Forex trading signal a success? Obviously if it makes pips, there is very little if no drawdown, it happens often and you can count on it to be successful much more than it fails. Wouldn’t that be the definition of a successful Forex signal?
I would like to give you some information that took me nearly three years to find and I stumbled on it while reading a book by Constance Brown a well known trading author. In her book she mentioned that she knew Andrew Cardwell THE expert on RSI, the Relative Strength Index. She said he could discuss the nuances of RSI for hours. This was enough to get me interested.
Now almost 3 years later I have discovered mounds of information on RSI that is not available in any books I know of, or is nowhere on the Internet other than in my eBook, my website and the articles that I have written for EzineArticles. Here is a little of what I know.
Reversals are little known
Reversals are trading signals discovered by Cardwell as a student of Welles Wilder the man that created the RSI. Welles Wilder moved on to other things but Cardwell stuck with RSI and in doing so discovered reversals.
Reversals are not divergences
Many people associate trading RSI with divergences. But Divergences are signals on RSI that indicate a trend is slowing and will retrace. Reversals are momentum signals that do something much more productive.
Reversals mean trend continuation
Reversals are trading signals on RSI that mean price is ready to…
Source by Paul W. Dean
All over the Internet, you would see advertisements for fee-based trading signals, and trading software that promise to make you a millionaire overnight or make other claims that are equally absurd. Common sense should tell you that get rich quick schemes do not work and the only way to make money trading in the Forex markets is to have a long-term plan with realistic expectations of returns and a sensible strategy.
Signals certainly help you with timing your buy and sell decisions in the market but they need to be accurate and reliable. Unfortunately, many traders try to buy signals on the cheap and pay the price for their false economy. You need to check the source from which you’re receiving a signal and the methodology they use in their technical analysis. But, above all, you need to use sound judgment and common sense in deciding how you would use these signals, if at all.
The best signals in the world will not help you make money if you cannot formulate a sound strategy and bring a disciplined approach to your trading. Letting your emotions or feelings get the better of your business judgment is the shortest way to lose money in the Forex markets. You will tend to hang onto positions that you should have exited a long time ago in the hope that the market will turn. You need to be logical and rational about devising your risk management strategy especially in setting your stop loss and take profit triggers for every position. Having set these triggers, you need to…
Source by Mark S. Carter
If there is one key factor that makes all the difference in profitable Forex trading, that factor has got to be timing. Knowing exactly when to buy and when to sell will determine whether you make a profit or loss on a position. A tool that is freely available to assist in the timing of your decision is the availability of trading signals that indicate market trends.
Finding a reliable source for signals or an appropriate software package that generates these signals requires a fair amount of homework. There are a number of packages that base their track record on back testing with historical data. As we all know, back testing is no indicator of future performance in live market conditions. Look for a software package whose creators have the confidence to display forward test data using live market conditions and then evaluate the track record. Also check out the technical analysis tools that are being used to generate signals to make sure that you are getting objective assessment and not individual opinions.
You also have to be confident that the signals are being transmitted to you quickly in real-time and reflect market conditions currently prevailing. That is nothing more infuriating than receiving data that may have been useful but is now dated.
Use your intuition and judgment to check out the data before you use it in trading. If you have been trading selected currency pairs for a while, it is likely that you would keep yourself updated on the latest economic and…
Source by Mark S. Carter
The “Advance Day trading Signal” Software is designed based on the time tested Technical analysis techniques that evaluate historical data of the underlying stocks, any indices or any symbol on which it is loaded.
It generates precise trading signals in advance before the start of trends and places stoploss line when the strength of the trends weakening. This unique feature of the system guide the traders to protect their profits at every crucial levels.
The software analyses each and every candle of the symbol in the given time frame and bunches the candles into three basic groups.
1) Bullish Group of Candles (Candle marked with Aqua Colour Arrow at the Price High of the candle)
2) Bearish Group of Candles (Candle marked with Magenta colour Arrow at the Price Low of the candle)
3) Floating Group of Candles. (Candle having no arrow either on top or bottom)
As the indicator start bunching the candles into groups, a line will gets drawn, if the candles falls into Bearish Group the colour of line will be Blue or Group of candles is Bullish then the colour of line will be Yellow.
Traders can take SHORT when Blue colour line appears or LONG when Yellow colour line appears..The floating Group of candles helps the traders to exit their current position.
These unique features of the “Day Trading Signal” software ensures Profits during Trending & Range bound Market conditions..
Trading Rules for ‘Advance Day Trading Signal” Software:
System consists of the followings;
Source by Javed Hussain Haraharavi
People tend to have many questions when they are presented with something new, especially when it is related to their money. The following are questions that homemakers frequently ask regarding forex trading and forex trading signal service:
Q1: Is forex trading safe?
A1: Trading forex is of course safe. The reason is because today more and more country regulates forex market and they enforce strict rules that every forex broker must follow. As a result, we find that only the good brokers stay in the forex trading industry. On a personal level though, it is up to you to determine the safety of your account. If you trade recklessly then you will find that your capital will drain rapidly. Sometimes it is faster to lose money in forex trading than in casino. Therefore, you need to prepare yourself mentally and acquire lots and lots of knowledge or you can choose to go with hiring a good profitable trader and subscribe to his trading signal service. The latter is by far the faster, easier way to trade forex if you have limited or no knowledge about forex at all.
Q2: Can a homemaker succeed in forex trading?
A2: Of course, you can succeed in forex trading just like other trader. Everyone who trades forex have the same opportunity. In fact, homemakers have more potential to succeed because they have the most flexible schedule and needless to say, they have more time at their disposal than any other newcomer in forex trading. Homemakers usually develop the ability to do…
Source by Linda Wilkinson
There are lots of forex trading signal services to choose from and if you find the right one can be making good forex profits but you need to consider two key points when using a service.
Here are the 2 points that can lead you to success with forex trading signals.
1. Beware Of This!
The fact is most of the forex signal services that claim top have made profits haven’t as the forex trading system has never been traded and this applies to well over 90% of services. Always check for the disclaimer below and if you see it don’t buy the service – here it is:
“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.
This disclaimer allows anyone to make up any track record they like. Of course we would all be multi millionaires if we knew the closing price in advance – but we don’t forex trading is a bit harder than that. Only choose currency trading systems that have a real time track record (audited) over 2 years or more – if you find one you need to…
Source by Kelly Price
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Continue reading “Trading Forex”
There are 4 RSI trading signals that traders should be aware of when they place any trade. They have nothing to do with price being overbought or oversold. RSI (Relative Strength Index) was never designed with that in mind. Prices that push RSI to 70 or above are not necessarily overbought and prices that push RSI to below 30 are not necessarily oversold. If this is the way you are using RSI then you would be better off not using it because these signals would be leading you astray.
The 4 RSI trading signals are composed of two types: divergences and reversals. Most traders are very comfortable with finding divergences on their price charts. There are two divergences patterns, positive meaning a momentum force upward or bullish, and negative meaning a momentum force downward or bearish. They are commonly called positive divergence or bullish divergence, and negative divergence or bearish. Theoretically when you have a positive divergence price should move upward and vice versa for a negative divergence.
The second signal is less known and almost never considered. They are reversals and as with divergence there are two. A positive or bullish reversal pushes price up and a negative or bearish reversal pushes price down.
You may be wondering what the difference is as it sounds like they do the same thing. A positive divergence is signaled when RSI is higher on the chart but price is lower. However, a positive reversal is signaled when RSI is lower on the RSI chart but price is…
Source by Paul W. Dean
You may have heard of this frequently in some Forex trading tutorials, ‘Trend is your best friend’. So there is really nothing to be afraid of trends in Forex trading. In fact, one should leverage the power of the trend to make money in currency trading.
Although many people is aware that they have to trade with the trend, but surprisingly for some reason, a lot of people may have problem of spotting a real trend. It may be true that different people has different views on whether the currency pair is trendy or not. But the bottom line is, if you can’t spot a trend in Forex trading, there is nothing else much simpler that you can do.
The first step that anyone attempts to trade the Forex will be identifying the trend, wait for a good entry point into the existing trend and then hope to ride the trend as long as possible. So they will try to figure out whether its a down trend or up trend by looking at their arsenal of Forex indicators. Are you doing the same too? If you are, that is the mistake that most people make! You should train your eyes to judge instead of using those moving averages to be able to know where the trend is.
So how do you do it? It’s not as difficult as you think it is…yes, it’s simple! What you have to do is to pull out a chart of the currency pair that you would like to trade. First look at the chart and try not to look for very long, the first impression will always be the more accurate one. If price is going upwards from the bottom and if the past…
Source by Daniel S.
In today’s sophisticated world, stock trading has become everybody’s piece of cake. Bygone are those days when professional guidance was required for trading. Now we have the Internet and other emerging technologies to help us.
However, a bit of thoughtfulness and caution will go a long way in successful trading. A good emini signal provider can be a boon to a day trader, who trades S&P emini. In recent times the markets have multiplied several fold, and so have the signal providers. It is important to choose a provider wisely.
At times this can be quite a tedious task. Here are some tips for selecting a good emini signal provider: It is not prudent to select new players in the field. Make sure the provider has been in existence for a long time, and is well established. Discuss with family and friends to get some valuable inputs. Ask the company to provide you with supporting documents highlighting their performance history.
You may even ask for testimonials and references. Study them well and get satisfied about their past performance. By speaking to a few customers of the company, you may be able to judge the company’s customer satisfaction level. Obtain the company’s contact details.
It is very important to verify their address, and telephone number. It is a good idea to either visit the place, or call them. Getting to know a few people in the company will be an added advantage. Some companies may offer free or paid trials. Taking them up may help you make a decision.
Source by John L Cruz