Today i am going to discuss about my experience, research (trial and errors), and knowledge that i have learn from many sources to provide guidelines for others to learn. I believe there are plenty of sources i.e. books, internet articles, forums, blogs, websites provide free lesson about forex trading but it will be useless if you fail to harvest the right information and put them into one working effective strategy.
Apart it will takes significant amount (probably years) of time to study and fully understand each of the knowledge. In the end you will have to combine to provide the best result for your trade. During your trial and errors you will make profits and losses, don't worry about the losses because that's what it takes to be real good by being able to keep up confidence run high at all time. If you worry too much about it, use demo account but be serious about it.
Over 4 years of learning and trading experiences i have strongly believe that below strategy will work very well if applied with wisdom, patience, and of course luck. Learn each of them and combine them into one working strategy, that will give you the edge for better understanding of the forex market.
- Moving Average Convergence/Divergence (MACD) - Very powerful lagging indicator built based on moving average. It is called "lagging" indicator because the signal always delay behind the real market movement. The strength of MACD is to provide the long-term signal of the market movement. And weakness of MACD is because it's delayed always behind the the market movement. Why MACD is important because everyone seems to use it and you must follow the crowd to be a winner.
- Stochastic - It is similar to MACD indicator but the signal is close to the real-time market movement. Very popular indicator for short-term traders or scalpers who look for quick trade in daily trading. Obvious weakness of the stochastic indicator is providing signal too early prior to the market movement. Most often it fails to indicate the overbought oversold movement. It is important when combine with MACD it provides better trading signal rather than use it alone.
- Bollinger Band - Build on 3 lines of moving average lines namely the upper band, middle band, lower band. The Bollinger Band provide signal for setup and profit targets. Point of support and resistant can be trace by the Bollinger Band line.
- Counting Candlestick - By counting the candlestick you will be able to see clearly the market movement (price action) and not getting tricked by the short-term fluctuation behavior. If you plan your trade by weekly basis you have 5 candlestick (from Monday to Friday) using the help of MACD and Stochastic indicators you can estimate how many candlestick will go up and how many will go down.
- Multiple Time Frames - It is very important to understand the perspective of multiple time frame because of the existence of short-term, intermediate-term, and long-term traders.
- Support and Resistant Level - Repeated chart patterns and behavior create a clear line of support and resistant point. It is very important to take note of this critical point because technical indicators often fail to cross the line and traders tend to follow the repetitive pattern instead.
- Non-Farm Payroll (Fundamental News Release) - During non-farm payroll release the market move according to the news and there are no indicators can predict market direction.
- Good Luck - It need a lot of good luck to succeed in forex trading. No matter how much knowledge you have but to apply real trading to yield consistent result is another matter. So plan your trade properly to get better luck.
Renew Antivirus Store