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Live Forex Room Update October & 7/11/2011 Day Trade GBP/USD

stersuhr — Tue, 08 Nov 2011 03:21:14 +0000

Hey everyone! I hope trading is going well for you all. In this recent trade update we are going to wrap up last month and then get into the trade setup that we had today. October ended up with a gain of +265 pips. We didn’t win every trade and we had a few losers in a row but as you can see what matters is the monthly profit or loss. I think one of the biggest downfalls of most forex traders new to this market is there inability to lose their short sighted point of view. Often traders get so wrapped up in the here and now they lose sight of the big picture which is monthly profit. Losing sight of the big picture leads to over trading, revenge trading, “system jumping”, ect ect… Hopefully by sticking with the simple idea of only identifying what smart money is doing, everyone will be able to improve in their trading and finally crest the hill of profitability! Again going back to day trading strategy outlined in the article series learn to trade forex with smart money….accumulation, manipulation, followed by market trend. That’s all we need to understand. Â Today we had the first two steps come together quite clearly, we just never happen to enter a clear defined market trend. As you can see the GBP/USD came up and spiked above previous resistance (off screen). This showed a clear stop run at resistance, therefore showing a high probability of the accumulation of sells. Normally I like to see the stop run at the end of the accumulation however we had it at the beginning today. As you can see I have the accumulation marked in the red square. This is clear sideways price action that is often mistaken as a market lacking momentum, but as we know these periods are often times smart money accumulation areas. The market took off to the downside and we did not catch the first move down. After the first run down I said I wanted to take either the EUR/USD or GBP/USD when/if it pulled back into the accumulation area. It’s worth noting that once the market break out of the accumulation area, it will more often than not pullback into this point. This is why I stress not chasing a market but rather letting it pullback at a later time. These pullbacks are part of the manipulation. Think about this for a second. If the accumulation was the accumulation of sells which the first move down showed, then why would smart money drive the price back up to the same point. What do you think most indicators looked like as the price was coming back into the accumulation areas? More than likely everything was starting to turn up for a buy, and this is exactly what smart money’s intention was. By creating the belief in further upside traders are more likely to buy thus providing supply for smart money to sell into….clear manipulation. The EUR/USD showed the same thing as the GBP/USD. We took the EUR and it unfortunately pulled back past the accumulation area stopping us out. The EUR/GBP just happened to turn up which caused a quick spike in EUR strength, and that was enough to stop us out. Had we taken the same exact trade on the GBP/USD it would have been good for up to 40 pips initially. Later on we did end up taking the GBP/USD. We took it after the second test of the accumulation area go rejected. This trade is a bit tricky, let me explain. I had set before we left the room that I wanted to move the stop loss to break even when this hit +20. With an average entry of 27 it would have hit +20 on some brokers and not on others. It personally hit +20 on one of my brokers but not the other. Therefore some could have ended up break even and some it could have hit the stop of -20 pips. I’ve got 2 emails thus far both saying break even but I’m sure some did get stopped if they weren’t around to see what happened. Thus we will split the difference and call this a -10 pip trade. Today ended up down, but we have a lot of month left. Every month we will have losing trades which is why we learn to accept them, move on to the next day, and this is how we consistently turn a monthly profit!

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Channels, Triangles, And Trend Lines – Short Term Day Trading

stersuhr — Sat, 17 Sep 2011 03:54:08 +0000

Day trading channels, triangles, and trend lines has been around for a long time. These are standard chart patterns that many look for, and use in their day to day trading. As a forex trader we are always looking for an edge. Something to give us better entries, smaller stops, higher risk/reward, ect. That being said let’s re-examine these three forex chart patterns as they relate to the 1M chart. Now I don’t believe in forex scalping in the traditional sense of the word. Taking a few pips over and over is simply not a profitable long term forex trading strategy for retail forex traders. Having to deal with a 2-3 pip spread simply negates any thought you should have of this type of trading method. That being said we are looking for 1 to 1 risk/reward (R/R) at least. Doing so will ensure we do not set ourselves up for failure. That is also why I call these types of trades, “short term day trades” rather than forex scalping. Trend Lines – As stated above we are looking for trend lines on the 1M chart. Unlike traditional use of trend lines I’m only looking for the break of these trend lines, not a re-test and bounce off of them. In order to be properly formed I need to see 3 clear points touch the same trend line. Again the key here is that there are 3 obvious points at least, making a clear decisive trend line. Remember

Day Trading Forex News GBP/USD 26/08/2011

stersuhr — Sun, 28 Aug 2011 04:31:16 +0000

Today we had the intensely awaited speech from Ben Bernake. Forex traders everywhere were waiting on the words “QE3″ and they didn’t get it. Once this happened we saw equities sell off instantly. Both the EUR/USD and the GBP/USD went with it. The GBP/USD spiked into lows and started to bounce and we went long. Candle #1 on the chart was our entry candle on this 1M chart. On this one we took +20 on half and then the last half was closed for +10 pips. The second trade we took was at point #2 on the chart. If you were watching the EUR/USD at the same time you would have seen the EUR/USD absolutely tanking at that time. However the GBP/USD was still holding above the last major support level, therefore it still was giving a decent entry. Using correlation we knew the GBP/USD had a strong possibly of breaking the lows the same as the EUR/USD did. Â We went short during candle #2 and took half of the position off at +20 pips and the last half we closed at +55 pips, thus making it a +35 or so pip day trade overall. Before both of these trade we also had a EUR/USD long that went for +10 pips total. Overall today we took +60 pips. This was a nice close to a week that showed some extremely difficult price action. Patience will always pay off in the end, and today was

Breakout Continuation Level – Day Trading The USD/CHF 19/08/2011

stersuhr — Mon, 22 Aug 2011 02:37:05 +0000

We will keep this day trade setup short and sweet. To begin we had a previous support level on the USD/CHF that broke and then became resistance. The market re-tested this previous support turned resistance, and it held nicely. The USD/CHF again began to run down off this level. I want to give credit where credit is due….a member in the forex room pointed out this level to me as the USD/CHF is not a pair I normally watch. It’s nice to see traders taking what they have learned and putting it to good use:) There was one final support area that I said I wanted to see go which was the .7869 area. It started to work through that and we went short. Overall we took 30 pips off this trade. Someone in the room brought up a good point mentioning the intervention on the Swissy. The reason I was comfortable shorting the Swissy was because of history. Ask yourself this….have you ever seen an intervention in the forex market actually break a trend? Every BOJ intervention on the USD/JPY has failed thus far. Why? When you try to turn the market with only a days worth of order flow you will lose. Unfortunately the BOJ is finding this out and as of right now the SNB is as well. Now that doesn’t mean they won’t eventually weaken the Swissy, but if history has anything to say about it they will have a

Forex Volume Day Trade – GBP/USD 15/08/2011

stersuhr — Tue, 16 Aug 2011 03:52:18 +0000

Coming into the forex room today both the EUR/USD and the GBP/USD had run 50 + pips. If you follow this blog you know a market that is already extended makes for difficult trading. It makes it hard to take a continuation trade because the potential for a retracement becomes higher the longer it runs, and it becomes risky to take a retracement trade because the trend is clearly strong. Personally, and what I recommend in the day trading room is to wait for one of two scenarios. First, you can wait for a large retracement of the move and then a continuation trade, or you can wait for the market to come into MAJOR support or resistance depending on the direction of the trend. In this case we waited for the market to come into major resistance since it was trending to the upside. On the GBP/USD this level happened to be a psychological round number of 1.6400 which was also a previous major resistance point from the 9th of August. When it came into this level we looked for our standard volume forex trading strategy to come together, and it did. Our volume based entry is a 2 candle entry. Normally we like to see those candles right next to each other but in this case there was a candle inbetween. The first candle in the setup is a higher than average volume candle. Simply put once the market

Euro Day Trade Short 02/08/2011 – Live Forex Trade

stersuhr — Wed, 03 Aug 2011 04:10:00 +0000

Around the lows we missed an entry long. Unfortunatly the market had been trending to the downside and this trade gave the entry to go long right at resistance. I didn’t take this day trading setup because of this an it ended up being the “trade of the day”. A little later on in the day we got a volume based entry to go short at a breakout continuation level. Essentially it was previous support that was broken and now acting as resistance. After getting into the EUR/USD short the market then went sideways. This was the first sign that we should have gotten out. The second was the 3rd candle from the right. Notice how it tests below that tight little range and then gets rejected back to the upside? This showed a clear sign that the sellers simply were not there. Because of this we should have got out but didn’t and ended up taking a 20 pip loss. There were a few more shorting oppertunities once the price hit major resistance around the 1.4280 level but it just seems like it didn’t come together perfectly. Either way there was a lot of wasted pips today to be honest. That being said we have tomorrow:) That’s the great part about being a forex day trader….you always have the next day to look forward to. I forgot to wrap up last months trade but we ended up around 2% for the month. It was a pretty slow month and we sat around break even for the majority of it until we made the major change to our new volume based day trading strategy. This forex trading strategy has been in the works for a while but we finally got enough forward and backtesting to put it into action live. This market is forever changing and if you can’t change with it you will eventually lose. There is no fx trading strategy that you can trade today, and then trade it the exact same way 5 years from now. In some way shape or form it will need adjusting. Although the Confirmation Entry – Forex Trading Strategy took a profit 6 out of 7 months so far this year I felt like we needed to filter out some of the fake out’s due to the increase we have seen in short term volatility. Using volume we have done that, and done it well. As I said yesterday I’m looking forward to seeing what this month brings, after all forex trading success or failure is not judged on a daily basis, but rather month to month. That being said this will be the first month of volume based trading for the live forex trading room, and I look forward to the results and teaching this forex trading system to everyone else as

Day Trading Strategy – Forex Day Trade EUR/USD 01/08/2011

stersuhr — Tue, 02 Aug 2011 02:37:23 +0000

Well I’ve never been so irritated about making +30 pips on a trade lol:) Let’s get right into today’s day trade! As we came into the forex room for the NY session both the EUR/USD and the GBP/USD were falling. The EUR/USD was riding a nice descending trend line down which was one reason we thought there was resistance there. In addition to that the price came back up to a previous support level, that was now broken and acting as resistance. I call these levels Breakout Continuation levels. As with all support and resistance levels…..all you can do is simply mark out these points and then once the price reaches these areas wait to see if your entry criteria is fulfilled. This is exactly what we did here. The price pulled back to that resistance and then we waited to see if our volume entry criteria was fulfilled….and it was. Our entry was around the 1.4400 area on the EUR/USD. This was an exceptional entry but I closed the second half way to early for only +40 pips. The reason I did this is because we had a volume entry up on the GBP/USD and therefore I exited the EUR/USD short and took the Sterling long. Unfortunately that did not have any follow through and this left us with a total profit between the 2 forex trades of +15 pips. I can’t complain to much about starting off the month positive. This is going to be a very exciting month. As I mentioned in the last post, our new forex trading strategy that relies on volume confirmation won 75% of the time last week. These numbers are right on track with our forward and back testing, and therefore I look forward to what this will produce live in the forex room this month. We shall see as time progresses. If you would like more information on our new day trading strategy feel free to take our 10 day trial to our live forex trading room

Intra-Trend Day Trading Confirmation Entry EUR/USD 10/06/2011

stersuhr — Fri, 10 Jun 2011 23:16:52 +0000

After yesterday’s day trade during the ECB Press Conference it was important for me and the rest of the forex trading room to have a good day going into the weekend. It’s never good mentally when you do not recover a loss going into the weekend. This is exactly what we did! If someone is going to become successful at day trading it is going to require unshakable confidence in not only your forex trading strategy, but your ability to execute it as per the rules. It’s not how much profit a day trader makes that will determine his level of success in the forex market, it’s how they recover from a loss. A professional forex trader who used to work on the Floor of the CME as a market maker said, “it’s not how much you make as a trader, its how much you don’t lose”. It becomes much easier to make a mistake after you have already made one, which is why he said those words above. With those words in mind we came into today looking to get back some of the profit we gave back yesterday. In the trading room today we took 2 trades, both of which were profitable. The first trade was on the EUR/USD, and it was a short position. Anyone who follows this blog is more than likely very familiar with the confirmation entry, however this is what I call the intra-trend confirmation

New York Session Trend Continuation Day Trade GBP/USD 06/06/2011

stersuhr — Mon, 06 Jun 2011 23:25:54 +0000

We only took one trade in the forex room this morning, and it was a GBP/USD short. Unfortunately the price sputtered around for to long and we took a break even exit, only to later see it fall. Sometimes that’s the way it goes in day trading. Either way lets walk through this forex day trade setup and break down why we got in this position. The black line in the chart above represents a small intra-day breakout continuation level. As the market was falling from earlier in the London session this level acted as support. The Pound came down to this level, broke through it, and then closed above it…thus showing this level was support. This previous support level was broken to the downside, and then it provided resistance as it very often does in the forex market. This is where the setup began. Notice how candle #1 comes into that resistance area and then closes below it, thus giving us the reversal candlestick which is the first candle in the confirmation entry forex trading strategy. The second candle of this trading system is what we call the confirmation candle. In a short setup as shown above, the confirmation candle must close below the body of the reversal candle (candle #1), and candle #2 very clearly did that. The first two candlesticks in this trading method are used for confirming the direction of the trade, and the third candlestick is used for triggering the actual entry. During

Forex Trading Strategy – Live Day Trade On The EUR/JPY 19/04/2011

stersuhr — Wed, 20 Apr 2011 01:11:24 +0000

HeyÂ FxÂ traders! Today we have a nice little half position long on the EUR/JPY from 118.05 that is currently about +100 pips up as of writing this. I now have the stop loss moved to +40 pips and the final take profit is set to 119.35 which is +130 pips.Â Before we get into this FxÂ trade I think it is only fair to point out the bad. First we had a half position long on the GBP/USD that stopped us out for -20 pips. I’m just gonna come out and say it….that trade was a stupid mistake on my part. In no way shape or form had it given a confirmation entry, nor had it meet the criteria for any of my other forex trading strategies. The USD/CHF was giving a confirmation entry to go short and the GBP/USD had only a reversal candle to go long. I jumped the gun and didn’t wait….and I paid 20 pips for my error.

I’ve been dayÂ trading forexÂ for over 6 years, almost 7…and still from time to time my patience fails me….and this was a good example of that. This just shows why it is so important to wait for the market to meet ALL the criteria of your forex trading strategy before taking your day trade. Equally important it shows how to recover from a stupid trade! We have all been there, and what is your first reaction….to get right back in and “show the market who’s boss” right??? Doing that will only result in further losses. After this trade we keep our head down, didn’t lose our cool, and more importantly stayed patient and waited for the next good day trading setup! Additionally todayÂ there was a AUD/USD short. This trade on the other hand was a double confirmation entry short, and is a trade I would take every single time! The market gave us +15 pips at one point, but after seeing other correlating forexÂ pairs start to head up we decided to exit this one for -4 pipsÂ plus the spread. That’s the beauty of the confirmation entry….even when the market isn’t going to move your direction, because your taking entries on pull backs you usually have time to get out at break even or a small loss. The reversal candle was at 8:30 AM EST if you would like to go back and look at that confirmation entry. Finally we had our EUR/JPY long

Day Trading Forex Strategy – Confirmation Entry

stersuhr — Tue, 19 Apr 2011 12:52:02 +0000

Day Trading Forex Strategy – Confirmation Entry, a simple strategy to trade forex on the intraday chart. The confirmation entry is an extremely powerful forex trading strategy. This method is based purely on raw price action, and is a great day trading strategy the produces consistent monthly returns. Since the beginning of 2011 the Confirmation Entry and other variations of the strategy has been the staple day trading strategy used in the forex room. I hope you all enjoy this forex education video, and more importantly makes some pips with it!

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Non-Farm Payroll Reversal On The GBP/USD 7/1/2011

stersuhr — Mon, 10 Jan 2011 00:49:51 +0000

Friday was Non-Farm Payroll day. This release was a bit mixed overall. The number came out -47K worse than expected, however the unemployment rate came out .3% better than expected. Usually +/-50K usually creates a sustained move, but this month there was conflict between the headline number and the unemployment rate. In addition to that, and to complicate things more there was a revision to the previous months number….it was revised 20K better than expected. After taking a minute to go over the numbers we decided to short the GBP/USD when it reached the 200EMA on the 1H chart. If you look at the 1H chart you can see the first initial spike came right into the 200EMA as well as previous trendline resistance. On all Non-Farm trades we always enter the position as a half position. We do this because trades in and around Non-Farm usually carry a higher risk. Therefore we simply use a smaller position size to minimize the risk. Very quickly we saw around +25 pips of profit. I was looking for a bit more out of this trade and did not take profit unfortunately. The trade then came back and closed us out for a -20 pip loss. Overall we had a great week with only one losing trade over the course of the entire week! Additionally we managed to take +6.5% out of the market last week. We had a great start to the year

Descending Triangle Trade Update 12/10/2010

stersuhr — Wed, 13 Oct 2010 04:43:32 +0000

. On MondayÂ we took a short on the GBP/USD from 1.5932 after seeing a nice descending triangle formation with a bearish shooting star reversal candle formation. WeÂ closed half for +20 pips during the NY session and let the last half run. Today I updated the trade by setting the stop loss to 1.5832 which means worst case scenario the last half of the trade is closed out for +100 pips, not a bad trade at all! As of writing this the market got to within one pip of closing the trade for +100 pips and is still around the same area. I will not adjust this trade until tomorrow’s NY session at 7:30AM EST, if the trade is still running that is. Either way this is going to end up as a great trade. From a daily chart perspective we have 2 very nice bearish candles, however the EUR/USD just formed a huge bullish daily reversal candle (Red Arrow) Given the fact that the EUR/USD moves more money than any other pair, if it does continue up in the direction of yesterdays bullish hammer formation it could cause the GBP/USD to go up as well and more than likely would. Either way great trade, and we will see what tomorrow brings inÂ live forexÂ trading room. See you all there!

Descending Triangle with Reversal Candle Cluster on the GBP/USD 11/10/2010

stersuhr — Tue, 12 Oct 2010 03:47:07 +0000

Here we have a nice short trade that setup during the NY session Monday. Because of Monday being a US banking holiday you can see the price movement was rather choppy as well as the price being caught in an extremely tight range. Normally I would not place a trade when seeing such a stagnant market, however other pairs such as the EUR/USD as well as the USD/CHF were all moving in the direction of USD strength. I say over and over again inÂ our live forex tradingÂ room, that having overall USD sentiment in the direction of your trade is a must. Quite simply put it makes the probability of a successful trade much higher! Now lets cover a little more specifically why I entered this trade short on the GBP/USD. First and foremost if you zoom out to a daily chart you can see that not only is the price at a major daily high but additionally that previous daily resistance level was additionally support a few months back, thus making this a breakout continuation trade as well. Second, you can see the price has formed a niceÂ descending triangle which is a chart pattern that points to a break lower. The final point to this trade was the cluster of reversal candles. I say over and over that every candle tells a story and this cluster of 3 shooting star reversal candles are no different. 3 times the market tested the highs with each candle and every time the price closed near it’s lows after getting rejected when it tried to move up. Additionally each reversal candle sets a lower high which is also a bearish sign. The more things that point to direction the higher the chances for a successful trade. In this trade there are many points giving you the key to the next move. Right now I have closed half of the trade for +20 pips and I currently have the the stop loss on the last half set to break even and we

Reversal Candle Cluster at Major Intra-day Resistance 07/10/2010

stersuhr — Thu, 07 Oct 2010 18:52:05 +0000

Here we have a great example of being able to read and understand raw price charts. Usually the market tells you direction before it makes its move, and today was no exception. This is a 15M chart of the GBP/JPY. As you can see the price had moved up into an area of previous resistance, and then formed a cluster of nice reversal candlesÂ (black circle). Reversal candles were the first clue but not enoughÂ to get in just yet. What I look for next isÂ whatÂ I call a confirmationÂ candle that closes below the reversal candles body. Another words the reversal candle shows there is indecision at that level, and the confirmation candle shows there is actually selling pressure at that level. Once the confirmation candle closes you can enter there or wait for a slight pullback before entering, which is usually the technique we use in our Live Forex Trading Room to get better entries and thus higher risk/reward setups. On this trade we managed +60 pips. Once the market ran into previous major intra-day support we got out with a nice profit in hand.

Live Forex Trade – Triangle Break +67 pips

stersuhr — Mon, 08 Mar 2010 16:19:39 +0000

Here is a great example ofÂ how toÂ properly use triangleÂ chart patternsÂ to effectively day trade in theÂ forex market. This video shows not only the potential of triangle formations in triggering trades but also how you can use aÂ previous triangle breakout to point to the overall direction of the trend. We managed to take +67 pips on the GBP/USD on a pullback to the triangles breakout. Hope this video helps and happy trading! 10 Day Trial To Our Live Forex Day Trading Room

1 2 3 Reversal Pattern Strategy Day Trading

stersuhr — Mon, 22 Feb 2010 07:37:16 +0000

A Video Outlining the 1 2 3 Trend Reversal Pattern Strategyfor Day Trading Forex The 1,2,3 reversal strategy represents the first breakdown in the current trend of the forex market. This is something that can be applied not just to small time frames as pointed to in the video, but longer chart such as 4H charts. Give the broad scope of this forex trading strategy it is of value to any forex trader on any trading time frame. You will be able to recognize a shift in the fundamental makeup of any trend and be able to capitalize on it if used properly. This is a forex trading strategy used often in our live forex trading room. Hope you all enjoy the video and happy trading!

1 2 3 Day Trading Forex Reversal Strategy

stersuhr — Fri, 19 Feb 2010 18:13:52 +0000

Day Trading Reversal Strategy During the course of any day you will often find many trends within the overall trend. To effectively day trade and thus take advantage of these moves within the large trend, you need to be able to quickly identify changes in short term direction. While you can use many methodsÂ to day tradeÂ these changes in trend, the “1,2,3″Â reversal strategyÂ recognises and provides an entry signal with precision that is rarely matched. A standard rule of thumb for a downtrend is lower lows and also lower highs, and the inverse for an uptrend. The 1,2,3 reversalÂ strategy will allow you to automatically see this breakdown in direction and thus show you the trend is over for the moment and a potential trendÂ reversal is on the way. In addition to that it can be used for an even safer trade signal entry’s, that is, trades in the direction of the overall trend. So what is the 1,2,3 reversal strategy? First determine what you are looking for, the overall trend to continue, or the overall trend to stall and retrace. As an example lets use a overall down trend,Â then the market is retraces against the overall trend. To determine when the overall trend is going to continue you would wait for the market to start back down again and this would be #1. After that the market tries to continue the overall trend, it stalls and fakes up again, but sets a lower high,Â this is #2. Finally

Live Trade – Trend Continuation with Candlestick Reversal

stersuhr — Sat, 13 Feb 2010 14:43:29 +0000

Here we have a 5M chart of the GBP/USD. During the day before the current screen shot the Pound increased its gains on the dollar and then after a last high momentum run up was turned around and continued to channel down going into the days London session. As I have talked about in previous articles the forex market is comprised of humans that drive price. Being the large run up in price the previous day no doubt many were taking some profit if not all, as well as some speculating short on the GBP/USD. In terms of supply and demand, the supply outweighted the demand and thus a retracement against the bigger and stronger upmove. However at point #1 there is a clear double bottom formation before our trading session starts, somewhere around 10PM EST.

GBP/USD

This double bottom signaled a possable end to the retracement against the stronger underlying uptrend, but we still needed more confirmation to signal a trade. At point number 2, you have a arrow pointing to a reversal candle formation also known as a hammer formation. The psychology behind this candle is quite simple. The bears tried to make one push down and couldn’t find any sellers and thus the price was rejected and a reversal candle formed. At that point the market now made a higher low, another confirmation point that is added to the candle formation, as well as the previous double bottom. At

Exponential Moving Averages – The Only Profitable Forex Indicator

stersuhr — Tue, 19 Jan 2010 13:54:28 +0000

Exponential Moving Averages – The Only Profitable ForexÂ Indicator Over the years I have tried every form of forexÂ indicators, every system, every gimmick and found the same results….negative ones. That is until I discovered the use of exponential moving averages (EMA’s) in the forex market. Itâ€™s no surprise the use of EMA’s fits so well in price action based day trading. EMA’s are simply a “smoothed” representation of the raw price action. Unlike the standard simple moving averages often used, exponential moving averages apply more weight to the latest or most recent price movement. What does that mean? If you are using a 10 day simple moving average the moving average is the closing price each period, added together, and in this case divided by 10. With an exponential moving average more weight is applied to the more recent days. In any case, and whatever moving average you are using how can you take advantage of them? Well in short, here are some solid principals to use with moving averages. Many make the mistake of using a simple moving average cross to signal entries and exits, and often times find the same results as they do with any other indicator, often times buying tops and selling bottoms and so avoiding the use of them in this fashion would be a wise choice. However moving averages in the forex market can often times be used as “floating” support and resistance for trades your are currently managing. Over years of trading you will find different moving averages hold more weight than others and knowing what EMA’s to use and the time frame to use them on is key. In our live trading room we implore 3 EMA’s in combination with our price action basedÂ forex day tradingÂ strategies. You will find if using the proper moving average that the price will frequently, during the course of a trend, retrace back and move away from a given moving average when used properly. Knowing this is very important, and can be used in combination with support and resistance as entry areas on retracement. As mentioned before each moving average has its place and some are more effective on different time frames, as well as some being more important and respected more frequently on different pairs. The key to exponential moving averages and the way they are used inÂ our live forexÂ trading room more often than not is for trade management. In our live trading room we teach how to profitably trade using moving averages as discussed above. Not only do we implement them in short term trading but also teach how to use them during news releases, as well as using them to place and manage swing trades. If you are interested in learning more about trading with moving averages as well as our other numerous day trading strategies we offer a 14 day trial to our live forex trading room. See you there, until then happy trading!

Reversal Times – Applied To Forex

stersuhr — Tue, 19 Jan 2010 23:52:01 +0000

Reversal Times – Applied To Forex Often times we forget that the forex market is made up of people; humans who one and all have some measure of fear, greed, fatigue, hunger, as well as many other psychological and physical factors. Applying this to your current trading method is something that can give you an edge. Price reversal times applied to the forex market is a new theory for many, so let’s take a moment to examine it deeper and the psychology and emotions that cause it. First let examine some human emotions and how they play a part in the forex market. To start let’s discuss fear. All traders, no matter how long you have traded in the forex market have some measure of fear, and fear it its proper place is healthy. Often times this is seen when the market starts to fall rapidly and the acceleration down is dramatic. The fear of the market continuing to fall is a self fulfilling prophecy and only leads to further downside. Also there is a fear of giving back floating profits. In combination with fear there is greed. All traders want to lock in profits, but also want to maximize the potential of the trade. Driving stop and take profit locations can often be negatively be affected by this Other factors that affect every trader are physical factors such as fatigue and hunger. Let me ask you this, how often do you not each lunch? Do you think traders

Scalping Forex Markets â€“ What itâ€™s All About?

stersuhr — Thu, 14 Jan 2010 16:26:39 +0000

Scalping Forex Markets â€“ What itâ€™s All About? Through the years the portrayal of a short term trader, weather in the movies, the news, or other ways, has always been that of a glamorized lifestyle. One filled with excesses in every form of oneâ€™s life, and for those that have perfected scalping the forex market this might hold a ring of truth. But what is involved in this form of trading, and what is it all about? Though there are many forms of forexÂ trading methods, one that seems to bring the most appeal and attention is scalping. As brought out in the first paragraph, this type of trading has a lifestyle and prestige attached to it that simply isnâ€™t connected to other forms of trading. Itâ€™s a fast passed, high stress, and if mastered, highly lucrative career. So is scalping the forex market exactly what its portrayed to be, whatâ€™s it all about? The easiest way to define scalping is to examine the standard goal and/or objective of a scalper. Most that implore this method are looking for small movements in the markets price, and most often take repeated small winners that add up to a large sum. In addition to that, losses are always very small to allow for taking smaller profits as well. Positions are held from a few seconds to upwards of a few hours at the most. Unlike other forms of trading, when you scalp, you are not looking for a large trend to ride,