Forex Trading With Support and Resistance

Forex Trading With Support and Resistance

Forex Education & Resources
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This educational video seminar explains the basics of support and resistance levels in forex trading. It shows how to use these technical indicators on charts in FXCM’s Trading Station.

Support and resistance levels are important in terms of market psychology and supply and demand. They are the levels at which most traders are willing to buy (support) a currency, or sell it (resistance).

When support and resistance trend lines are broken, the supply and demand and the psychology behind the currency’s movements is thought to have shifted, in which case new levels of support and resistance will likely be established.

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Forex Trading Strategies – Trend Trading How To Find Perfect Entry

Forex Trading Strategies – Trend Trading How To Find Perfect Entry

forex trading strategies – Trend Trading
use our most profitable trend system until now:http://www.rohaizad.org/forextrendy

Forex Trendy is a software solution to avoid trading during uncertain market periods. Instead, pick the best trending pair at the current time.

It uses no indicators, but the trend is determined by pure price action.

It quickly scans 34 Forex pairs on all time frames from minute to monthly. That’s 34 x 9 = 306 charts. Forex Trendy analyzes all the charts for you every second! This way, you get the best trending pair and time frame at any time you want.

Learn more here:http://www.rohaizad.org/forextrendy

Forex trading is the buying/selling of currencies in one of the largest financial markets in the world, with an average daily turnover reaching $4 trillion in April 2010. Forex trading works much like it does with other instruments like stocks/options/futures – buy low and sell high, markets are open 24 hours a day from Sunday to Friday, following the sun from trading centers in Tokyo to London to New York and then back again to Tokyo.

When identifying trading opportunities, traders should follow two basic guidelines. First, identify the direction of the trend. If the market is trending up, look for buying (long) opportunities. If the market is trending down, look for selling (short) opportunities. The second guideline is to identify the best time to sell (exit), and when to buy (entry). In this video we cover 3 simple Forex trading strategies illustrating forex fundamentals such as chart setup and entry/exit plans. New traders tend to clutter the charts with signals and data, key is to not focus on everything but keep it simple.

Ways how to trade the Forex Grid system – an introduction

Ways how to trade the Forex Grid system – an introduction

For more information please visit the forextrading blog at http://expert4x.com.

Grid trading, also called the no stop, hedged, grid system has become very popular amongst forex traders because it does not use stops, is highly mechanical, has no reliance on direction, uses the natural wavy nature of the market, does not require indicators or charts to trade and can be easily automated.

On the downside it can appear complex and illogical initially, it can incur large drawdowns if poorly managed, requires more patience than normal and may require forex traders to make a huge paradigm shift it their thinking.
Grid trading refers to the trading approach which uses fixed price levels to enter and exit trades. Grid gaps are the gaps between these price levels.

The steps to trading the grid system are simple:

Step 1: A trader would start out by selecting a grid gap suitable to the currency traded.
Step 2: The trader would enter a simultaneous Buy and Sell in the currency. Normally this will be done at a round number value price for the particular currency.
Step 3: The transaction price would move away from the entry value by the grid gap value determined in step 1
Step 4: At that level the trader would enter another simultaneous buy and sell transaction. The trader will also cash-in or close the profitable transaction from the previous level and leave the negative transaction open
Step 5: Continue trading until positive or breaking even when the price reaches the next grid level. When this happens cash-in or close all transactions and start all over. You would also cash-in all your transactions if your transactions have reached your predetermined maximum drawdown level.

So using the process above you will make a profit every time the price moves from your start position to the next grid level and back again. This is called the one hundred percent retracement formation. You will also make a profit if the price moves from your start position two levels away and retraces to the previous level. This called a fifty percent retracement formation. The trader will breakeven if the price moved 3 levels away from the starting point and then retraces for one level.

The trick is to control losses as positive transactions are cashed in on a linear basis while losses grow exponentially if left unchecked. If is therefore generally recommended that grid trading should not go beyond the fourth level from the starting point. When this happens it is better to close all transactions. The loss should be approximately six times the grid gap size at that point.
The key success factors to Grid Trading is selecting currencies that are range bound and selecting grid sizes that will protect your trades from reaching the forth grid level from your starting point. As with every trading technique it should be thoroughly back traded and tested before being used in live trading.
All of this may sound very complicated but many times convenience of a profitable mechanised trading technique outweighs the downsides.

For additional information click on this link http://hedged4x.com

This video has been created by http://expert4x.com to support the Forex Products and service available on their website. Expert4x Forex offers you many of these Forex trading money making solutions: Beginner introductions, manual trading techniques, Automated trading, using specialized indicators, subscribing to alerts, etc. Expert4x also supplies many FREE trading tools, magazines, movies, courses etc.
More information can be obtained from the group websites:
http://doubleinadayforex.com
http://longcandleforextrading.com
http://forextradeoftheday.com
http://meetforextraders.com
http://forextrading-alerts.com
http://expert-4x.com