Archive for November, 2010

Divergence Trading Using Stochastics

Trading Strategy
This is a guest post by Ahmad Hassam

One of the most popular ways to use Stochastics is divergences. A divergence takes place when the price and the stochastics diverge from following the same path. For example, if the price makes a new low but the stochastics don’t, it is a divergence. In the same way, if the stochastics make a new high and the price doesn’t, it is again a divergence.

Now, keep this in mind that divergence on a daily chart is quite different than the divergence on the weekly chart. Divergence on the daily chart means that the price will make a short term counter trend move in the next one to five days.


Read the rest of this entry »

Stochastics For Forex Traders

Stochastics
This is a guest post by Ahmad Hassam

Stochastics is one of the most popular indicators in forex trading. You can find it on almost all platforms and charting services. But most traders use them incorrectly. Stochastics is an oscillator that has two components %K and %D. This is the formula to calculate K=100(C-L)(H-L) where C is the Close, H High and L the Low of the period. Typically this period is 14 days. However, 9 days period is also popular. %K is the 3 day MA of K and %D is the 3 day MA of %K.

Fortunately, you don’t have to go into all this maths unless you want to fiddle with it and see if you can make it work better. One common question is how many days to use in Stochastics. Stick with 14 days as it is the default. Longer period means lesser signals and lower whipsaw while shorter periods means more signals and more whipsaw.


Read the rest of this entry »

A Channel Breakout Trading Strategy

Trading Strategy
This is a guest post by Ahmad Hassam

A Channel is formed when we draw a trendline and then a line parallel to the trendline with most of the price action if not all falling between the two lines. By scanning through a few charts, you will find that it is easy to identify channels. Channels occur frequently.

However, currencies rarely stay in a narrow range for long and have a tendency to breakout from a tight range and develop a strong trend in the market. Important economic news releases can act as a trigger for a breakout.


Read the rest of this entry »

Turbo Pip Sniper

This is an entry for Turbo Pip Sniper:
(official website: turbopipsniper.com)

Please leave your comments or reviews below.

If you want to submit a Forex software or course that is not already listed on this site for user comments and review, use the submission form.

A Simple Scalping Strategy Called Lucky Spike

Trading Strategy
This is a guest post by Ahmad Hassam

Many traders use scalping as their main trading strategy. Scalping means quickly entering and exiting the market making a few pips every time. Most scalpers look for making a quick 10-20 pips each time they enter and exit the market. By making a few high probability scalping trades every day, you can make 30-60 pips easily.

There are many scalping strategies. This simple scalping strategy is known as the Lucky Spike and it is being used by many traders to make consistent profits each and every day scalping the forex market.


Read the rest of this entry »

Ultimate Forex Club

This is an entry for Ultimate Forex Club:
(official website: ultimateforexclub.com)

Please leave your comments or reviews below.

If you want to submit a Forex software or course that is not already listed on this site for user comments and review, use the submission form.

Ultimate Swing Trader

This is an entry for Ultimate Swing Trader:
(official website: ultimateswingtrader.com)

Please leave your comments or reviews below.

If you want to submit a Forex software or course that is not already listed on this site for user comments and review, use the submission form.

Bullish and Bearish Engulfing Candlestick Patterns Warn Of A Trend Reversal

Engulfing Pattern
This is a guest post by Ahmad Hassam

Many traders make a good living catching changes in the trend. Catching a trend change means trying to pick the top or bottom of a trending move. It is not easy but it can be highly rewarding if done correctly. Bullish and bearish Engulfing Candlestick Pattern is one of the most popular patterns used by these type of traders to anticipate a trend reversal.

This is a two stick pattern meaning it takes two days for the pattern to develop. The pattern’s name comes from the fact that the signal day completely engulfs the setup day. So the candle body and the wick on the signal day engulfs the candle body and wick on the setup day.


Read the rest of this entry »

FX Loophole

This is an entry for FX Loophole:
(official website: fxloophole.com)

Please leave your comments or reviews below.

If you want to submit a Forex software or course that is not already listed on this site for user comments and review, use the submission form.

No Sign of Forex Trading Four Leaf Clover

News
This is a guest post by Becky Ashley

Ireland is in economic meltdown, with forex trading yet again being reminded of the delicate balance of the Euro. If you thought that the incoherent panic of the Greek Debt crisis had been swept under the carpet, think again. Traders are yet again being pounded by European disdain as yet another country weakens at the heels. Ireland is far from falling into economic disrepute but it is beginning to walk a very thin line in terms of reputation and confidence.

The Euro is not contained within one country and therefore its value is intrinsically linked with the economic paths of many countries. While in times of prosperity the value of the Euro is locked in and somewhat endorsed by multiple successes, it only takes one small cog in the constantly churning Euro zone wheel to fracture the fragile economic machinery.


Read the rest of this entry »