Forex
« Previous EntriesMomentum Trading Strategy
Tuesday, May 19th, 2009Description: The momentum (M) is a comparison of the current closing price (CP) and a specific length of the previous closing prices (CPn).
Calculation:
M = Closing Price [today] – Closing Price [n days ago]
The Momentum indicator is a rate of change indicator that is designed to identify the speed of a price movement. Usually, [...]
Trading with the QQE
Thursday, May 14th, 2009QQE, which is actually Quantitative and Qualitative estimation is based on exponential moving averages of RSI or relative strength indicator. QQE can be used in many ways and based on many different levels of smoothing averages, most popular that I have seen used in my trading are 2, 5, 30 and 60, I employ 5 [...]
The gartley pattern part 2
Sunday, May 10th, 2009In our last article, we discussed how the Gartley pattern is formed and where entries and stops should be placed for the initial trade. In this article we will discuss ways to profit from the pattern and maintain appropriate risk management.
Every trade should have targets. These can be fixed targets or dynamic ones specific to [...]
The gartley pattern part 1
Sunday, May 10th, 2009The Gartley pattern was outlined by H.M. Gartley in his book Profits in the Stock Market, published in 1935. Gartley reversals appear on all time frame charts. These patterns form near important support or resistance levels and are very powerful. It’s important to note that these patterns as with most patterns work best if found [...]
Trading with the MACD indicator
Tuesday, May 5th, 2009The MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of price. The MACD was invented in 1979 by Gerald Appeal. This is probably the most popular indicator whether you trade Stocks, FOREX, or Futures. The MACD is commonly used as a trend or a momentum indicator. [...]
How to Determine the Direction of a Trend
Monday, May 4th, 2009Before you decide to go long or short, there are several criteria you should check:
I. Pick a time frame that you like to use as the trend time frame / chart.
An up trend on one time frame (eg: daily) can be a consolidation on the higher time frame (eg: weekly).It is also important to [...]
Trading for Forex profits
Tuesday, April 28th, 2009Why is it that very few traders succeed in the forex trading market while 95% of forex traders fail? Below are some pointers to help you:
1. Get Rich Quick
Obviously, forex trading is not a get rich quick scheme, it will not make you wealthy overnight. Becoming successful requires patience and knowledge. Success requires some [...]
Introduction to Forex Options
Friday, December 12th, 2008Forex options are a great way to invest in the forex. This introduction will give you the basic information you need to start understanding forex options and how they can be a great tool for risk control and speculation.
Forex options are available from certain forex dealers in over-the-counter versions, just like spot forex contracts. If [...]
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