Forex Trading – Candlestick Charts For Price Prediction

Candlestick charts are believed to be one of the oldest charts used to predict price movements. The origins of candlestick charts date from the beginnings of 18th century. It is believed that Japanese trader Munehisa Homma (a.k.a. Sakata), who became very successful and wealthy rice trader, had invented them.

Candlestick charts represent a method of technical analysis and are used primarily to describe price movements of equity over time. They give an overview of open, high, low, and close market prices and they are getting very popular in stock market as well as in forex trading, mostly because of their dynamic features.

Candlestick charts show the direction of a trend and strength of particular price movement (open, high, low, close) in some specific time period. Candlestick charts also provide earlier reversal signals and can be used with other technical indicators.

Candlestick charts use the same price data as bar charts and bear resemblance to candles with wicks on both sides. Candles represent opening and closing trades, while wicks (also known as shadows) illustrate highest and lowest traded prices of a currency (or stock). If the wick is longer, it means that the trading was extended beyond opening/closing price. Candlestick charts form various patterns over different time periods and these patterns can be used to predict certain trends.

If the candle is white, it is the signal of up trend movement and increasing of price. If the candle is longer, the increase of price is more significant. Black candle is the signal of down trend movement and decreasing of price. Again, the longer the candle, the decrease of price is more significant.

When the lower wick is longer than candle and upper wick, it is a signal of bullish market trend. Bullish trend reflects increasing confidence and optimism of the investors. When the upper wick is longer than the candle and lower wick, it is a signal of bearish market trend. Bearish trend respectively reflects decreasing confidence and pessimism of the investors.

Pattern of candles without wicks is called Marubozu and depending on the candle colour can be Marubozu white and Marubozu black. Marubozu white indicates dominant bullish trades where bullish trend is expected to continue, while Marubozu black indicates dominant bearish trades and where bearish trend is expected to continue.

One also significant pattern in candlestick charts is doji. It is neutral pattern and has meaning only in a combination with other candlestick patterns and usually points to trend reversals. Dragonfly doji looks like the letter T, while gravestone doji looks like inverted letter T.

Beside these patterns in candlestick charts there are many others like hammer, inverted hammer, spinning top white, spinning top black, hanging man, shaven head, shaven bottom, shooting star, as well as more complex patterns.

Candlestick charts may seem complicated at first, but they are very easy to comprehend and read. When you start using them, you will see how simple they are. They illustrate more information than other charts and can be even colorized for better definition. Using candlestick charts is a great decision making aid in forex market.

Forex Profit Code – Truth Or Scam?

Forex Profit Code, created by Robert Meyer is quickly becoming a widely known Forex automated robot that’s sweeping across the internet. This particular software is what’s known as an expert advisor, or simply put a simple system that places trades based on a mathematical formula. There are literally hundreds of expert advisors out on the market place today and in some cases it’s difficult to pick out one that’s actually going to work. Let’s take a further look at what actually makes up a good Forex trading robot.

What exactly is Forex Profit Code?

This system was designed on a simple algorithm to place trades within the Forex market while the end user is away form their computer. The system is mechanical in nature where it places a trade and automatically, monitors the trade itself, and exit’s the trade when certain parameters are met. For the most part the system allows one to trade while away from their computer. The Forex Profit Code is tradable on any time frame and on any currency pair.

Can automated trading systems sustain long-term profitable results?

There are many trading systems out there today like Forex Profit Code, the only problem that arises when using a particular Forex robot is it’s ability to sustain the results it boasts during choppy market conditions. Forex Profit Code allows the user to trade on any currency pair, and not every currency pair was created equally, each has it’s own daily range and patterns. The only way to sustain consistent profitable results is if the trading robot is able to adapt it’s mathematical formula that notifies the robot of either a trending market or choppy market. If it can accomplish this, then it’s very possible for a robot to produce astonishing results.

Who is Forex Profit Code For?

Forex Profit Code is for anyone looking to make money utilizing the Forex market. It’s easy to use interface makes trading and setup a simple process for anyone, even the novice to use. If you are someone who is strapped for time, new to the Forex market or just simply looking for an automated trading system, then choosing a Forex robot is a viable solution.

What does a good Forex robot look like?

A well rounded Forex robot will yield phenomenal back testing results, video testimonials of people who have actually used the system on their site, a live forum for updates and an excellent support system. There are plenty of quality Forex trading systems out there today, finding the right one is the ultimate challenge.

Pro Forex Robot

Forex trading has provided a new way of earning to many of the traders & the professionals are earning in millions through various currency trades. It’s quite easy to trade in forex and within very short time you can easily earn money with few successful trades. But its been observed that around 80% of people open the trade at the wrong time or close it at wrong time & ultimately losing money rather then earning. It’s human mentality & thinking along with greed & fear forces us to take those wrong decisions. So what’s the solution?

Automated Forex Trading Software, which is not having those greed or fear factors & which simply trades based on the fully automated live accounts with expert advisors (EA’s) by professional forex managers & traders.

PRO FOREX ROBOT is the new advanced professional forex software built specially for those 80% losing persons who have those greed & fear factors & to stop them losing trades.

Pro Forex Robot – PFR is set to launch on May 25th Via ClickBank. Pro Forex Robot is going to be running on Meta trader 4 platform. It is having extremely advanced detectors with 100% fully automated system and all data coming from live accounts.

Pro Forex Robot presumed price is 110$-140$ approximately but the final price is yet not published & will be soon published before its launch. It is a safe product to buy as it is having 60 day money back guarantee from clickbank.

It provides you constant operation, short term opportunities across major currency pairs during each trading day or even session. The main advantage is that it uses expert advisors i.e. highly advanced trading algorithms prepared by professional money managers.

Forex Trading – Mindset of The Millionaire Forex Pro’s

Forex trading can be learned by anyone yet few succeed so what separates winners from losers? While a method is important, so to is the right mindset and here we will look at 3 character traits all the top traders have.

1. Success Comes From Within

Top traders do their homework and devise a trading logic and forex trading strategy they know backwards in terms of how and why it works and why it will be successful.

Contrast this with the amount of losing traders who buy an e-book from a vendor and then blame them, when the few hundred bucks they spent, didn’t make them rich! – what did they expect?

Other traders blame anyone they can – from the market, to their broker and squeal like babies when they lose – They are forgetting that they are responsible for their destiny, no one else.

Winners accept this and rely on themselves and so must you.

2. Confidence

If you have done your homework you will have confidence in your forex trading strategy and confidence is essential, as you have to follow your method through losing periods and know in your own mind, that you can emerge from periods of losses and emerge a winner longer term.

All successful forex pro’s have this trait and you need it to, as it leads onto a trait that is absolutely vital to forex trading success:

3. Discipline

This trait is needed to execute a method rigidly and not deviate from it.

Keep in mind if you can’t follow your method with discipline, you don’t have one in the first place.

If you think it is easy, think again – it’s tough even for seasoned pros.

Many traders have great methods but fail due to lack of discipline.

Confronting the Beast

Trading forex is hard as only you can be wrong (it’s always right) it will make you look stupid (it does this to all traders) and it moves where and when it wants and there is nothing you can do about it!

However you can win you just need to obey its rules.

You are like a ships captain on the ocean. You need to obey its law and understand everything about it to travel on it safely.

For this you need to have knowledge, confidence in your ability and the discipline, to plot the right course – If you can do this – just like the ocean has unlimited riches so does the forex market.

If you respect it and confront it with the right mindset you can win if you don’t you will drown – it’s as simple as that.

Forex Software Systems Reviews – Undeniably the Most Comprehensive Online Forex Software System

Recently I had the opportunity to place my hands on some Forex system software, video guides and tutorials, as opposed to some worthless material which is sold on the Internet. With 3 years trading experience now what I do is trade various currency pairs and if the margins profit, I stick with the system and if they fail, simply throw it back at the vendor, which is why in the first place you should obviously never buy a product without a money back guarantee.

In this spirit, one particular platform was tested which has been around for approximately 4 years now and is backed by the N.F.A. (The National Futures Association is the industry wide self regulatory organization for the U.S. futures industry).

One: Firstly, one of the tools of this platform is that they show live trading updates every 20 minutes on their website. This is insightful because a number of other currency software packages only provide back testing as proof of what they can do and this can be somewhat outdated due to the hands on nature of this game.

Back testing however is sometimes helpful, although this is not a preferable guide as the market conditions are constantly changing.

The live demonstration that this Forex company supplies is certainly novel to Forex trading and that, coupled with the fact these back testing results seem precise- they also have an inside trader which will also help you calculate its potential profits scenarios and the aggregate structure of these live deals.

Two: Only having previously read a couple of Forex reviews provided by some folks that use this Forex strategy, who gave the thumbs up – the first deposit was laid. There word was valued mainly because  they are old and respected players in the game who hold over 10’000 posts on well known forex trading forums.

When you join up, you first receive a one-on-one personal adviser who talks you through their particular  Forex system with an introductory guide to all their tools and more importantly, a tutorial on how to place your margins after the initial training had finished

Three: Once you have placed your stop loss and take profits margins down, your automated Forex software systems will work completely on autopilot.

Forex Trading – The Only Indicator You Will Ever Need To Know Your Entry And Exit Signals

Is your charting interface of your forex trading platform all littered with indicators, and you are feeling the increasing stress of forex trading? Truth be told, many forex traders spent countless hours in front of their trading screens, awaiting the onset of a trading signal…to enter or to exit at the proper time and to make the best profits. No wonder, they continue to feel the stress that comes with trading the markets.

In the quest to ensure every single movement is tracked, many traders have put in indicator after indicator on their charts. I have seen trading charts that are full of indicators so that by the time the trader has gone through all those indicators, the price would have moved on, away from their entry price, and they would have missed the sweetest part of the move.

Depending on how you wish to trade, there are three major trading setups in forex trading that you can consider:

1. Trading the breakout of a consolidation trend or a trading pattern such as a rectangle, a pennant, a flag, an ascending triangle or a cup-with-a-handle pattern.

2. Trading with the trend – this occurs when you can put in a selling order when the trend has changed from uptrend to downtrend, and to reverse the order when the trend has changed from a downtrend to an uptrend. Many times, there are continuation moves where shorter trends occur within long uptrends and downtrends (called counter trends) where there are opportunities to trade with good prospects of profitablity.

3. Trading the tops and bottoms – this occurs after a trend is exhausted, and the forex trader will be watching his chart for W and V bottomming patterns, or a reverse head and shoulder pattern or an inverted hammer. or gravestone doji candlestick pattern and so on.

The question is, with the need to monitor all these moves, won’t it be a forgone conclusion that the forex chart be invariably clutterred with indicators?

This is where trading systems come into play. A selection of the correct indicators acting together in synergy to tell you with a reasonable confidence the trend direction will be sufficient for most purposes of trading.

But the most powerful of these trading systems is a good understanding of price movement in forex trading.

Experience professional traders have been trading the forex markets by tracking essentially nothing else but PRICE, making price an indicator by itself.

Why, some argue, would you want to watch another indicator such as bollinger bands or stochastics when it is a mere representation of price in another form?

Indeed, if you wish to be free from the countless indicators and be an expert on price movement, then it is necessary to consider adopting a price driven forex trading method, where you are free from any type of indicators, support or resistance levels, moving averages, pivots, oscillators, fibonacci, trend lines or ANY other trading tool you can think of.

Won’t it help you to only need to concentrate on the price of the currency pair and a time element?

The benefits are immense – and the chief among them all is the ability to know the best time of entering and exiting your trade, and to ride the sweetest part of the move to success in forex trading.

So, simplify your trading charts, adopt a price driven forex trading method and accelerate your winnings.

Forex Trading – The Modern Day Goldrush

There is a modern day goldrush going on right now and it is called forex trading. This has made people very rich because they saw an opportunity and jumped on it immediately. The good news is that there is so much money to be made that the opportunity for you to get in on the action is still there. Whether you are new to forex trading or have been doing it a while, you can still make more money then you can imagine.

Forex stands for “foreign exchange” which basically means the amount each country’s currency is worth. Currency rates can fluctuate everyday and even every hour depending on many variables. Such things that can change the currency worth of countries can be, economy strength, war, disasters, etc. The way you make money with forex trading is buying stock in currency when they are priced low, and selling them when they increase.

The forex market is different then the regular stock market that you are used to. This is because the forex market is open for trading 24 hours a day, 5 days a week. It literally never shuts down because as we know, the movement of money all over the world is never stopping either. The secret to forex trading is to capitalize on volatile markets so you can invest low, and sell high which gives you the highest profit.

Most people are not able to keep up with the forex markets by themselves. The market is constantly changing every minute and the people who are making the most money are using forex trading software to give them the upper hand. This is probably the biggest secret weapon that the people who are making the most money on forex use.

The Rubber Band Forex Trading System

Of the many trading methods available out there there is one that has been recently realized and that is amazingly simple and uses the forex trading platform of your choice. This trading method will show you how to build your own indicator suite based on the author’s recommendation, but this method is not only colored screenshots, it will allow you to make a profit very often, in fact more often than you think.

It is important to mention that the author doesn’t recommend The Rubber Band Method in a fast 5, 10, or 15 min timeframe, he says 30 min to 4 hours is the optimum time frame for his forex trading system. However, some traders who like fast trading can do it in a 10 min chart, and even in the 15 min chart. It is beyond question that in a chart faster than 10 min, you will be trading “market noise”, and your pips will be limited.

His stop loss/limit ratio for money management is really good. By using RBM formula for setting stops and limit orders for profit targets, you can even lose 1/2 of your trades and still come out way ahead in profit.

You will learn a lot from this simple method. It only uses his RBM custom indicator and one other technical indicator making your chart really simple and uncluttered. Additionally the system is so simple that it practically screams at you indicating when to take the trade and when you should take your profit.

The author of the Rubber Band Method looks at his trades in the morning and in the evening to see what’s happening. This means that if you have a day job, this is perfect for you.

He recommends demo trading this system for two months before using real money, but maybe that’s pretty conservative. If you understand it, start trading live money within a week or two! Just make sure you really do understand the RBM for forex trading and the one rule it teaches. You will make money, and lots of it.

How to Start Forex Position Trading

Forex position trading strategy is a simple technique to increase your position size without increasing your risk. This trading strategy is particularly effective with mini lots and with averaging into a position also it works equally efficiently for standard lots.

For example you may buy one mini-lot of EUR/USD at 1.3100 and set the stop loss at 1.2980. It pose a risk of $20. When the price rises, you may buy a second mini-lot at say, 1.3120 and set the stop at 1.3100 with raising the stop of the first lot to 1.3100. Now you have two lots with overall risk still at $20.

If you find the price to be still rising, you buy a third lot at 1.3140 and set the stop at 1.3120 along with rising the stop of the first two lots also to 1.3120. This would ensure that even in the worst case the whole trade is at break even. Now, with further price rise, you buy a fourth lot at say 1.3160 setting the stop at 1.3140.

Accordingly, you raise the stop on the first three lots at 1.3140, which will protect your profit. Finally, you buy the fifth lot, set the stops as before and ensure a profit of $100. Throughout the process your risks remain at a constant of $20. So in this forex position trading strategy, you limit your risk exposure and at the same time gain handsome profits.

You can use a similar forex position trading method to average your trades. Weekly 3-bar pattern is a strategy which is ideal for forex position trading and which is very effective on longer time frames like the daily or the weekly chart. This forex position trading strategy lets you stay with the trend for a longer period of time.

Ideally, any day trading should be done with minimum lot size position. With forex position trading strategy, the initial profit is less but with trailing stop it can maximize the profit. A good position of day trading can be changed with forex position trading into a long-term profit option.

With forex position trading your exposure to the market is less and therefore no need to monitor the market continuously. The hedging order protects the position and limits your risk in the trading. With forex position trading, you can earn profit with minimal loss that boosts your trading confidence.

You can find many trusted money management software to calculate tradable profit/loss patterns along with optimizing trade sizes for supporting your forex position trading strategy. These software are designed to calculate trade position sizes according to various money management models with several successful positions sizing formula.

The forex position trading strategy may use formulas based on fixed percent risk, float percent units, fixed units, etc. The software are easy to use and help in calculating the most optimal position size for forex position trading strategy. You may also have many online position sizing techniques and position size calculators, which can supplement your forex trading strategy.

Best Forex Prediction and Analysis Software

A forex prediction and analysis software does a few things which can help you make more money in currency trading. What the software does is analyze the market data of the various forex pairs as well as other indicators and predicts where the market will go in the future. This is of course something which any trader would love to know as pre-knowledge equals money, and in the Foreign Exchange market, it means a lot of money.

Of course, no forex prediction and analysis software is perfect or we’ll all be billionaires, and the market is often so volatile that it is often very difficult to predict where any currency is going. However, a good forex prediction software will improve the probability of you making profitable transactions which will help you to make more money in the long run.

One of the best (if not the best) Forex prediction and analysis software for the home user is Forex Killer by Andreas Kirchberger (a veteran trader of Deutche Bank). Forex Killer is extremely popular and has been used by thousands of people worldwide to improve their forex earnings.

The reasons why I believe this may be the best forex prediction and analysis software for the individual home trader is for the following reasons:

  • It’s easy to install
  • It’s relatively easy to use – provided you read the manual correctly and follow the instructions
  • Provides the prices for you to feed to your broker based on market information which is exactly what a currency prediction software should do.
  • Is affordable (compared to other softwares which can cost many hundreds of dollars)
  • Has excellent reviews from users.

You should know however, that it does take a few days to learn how to operate this software correctly. When you do, however, it can be an entirely different trading experience for you.