Posted by TomShort on December 21, 2009 under Daily Forex review | 
Several traders get attracted to the sophistication provided by the multi indicators and make use of them in their Forex trading systems. A number of the confluence system indicators can show traders price movement. Because of this, Forex traders either end up over bought or over sold technical indicators like the momentum indicators, stochastic indicators, candle stick chart pattern recognition and Bollinger band break out neural networks that are supposed to be false intelligent systems. The technical indicators show traders signals that are similar to purchase or sell making the signal generated to be right.
Theoretically it sounds good however, in reality to arrive at a conclusion may be tough. As a result, the Forex traders are confused in taking correct decision. They wither enter too late or early still without being able to take a decision to enter the market. The major flaw is because of the use of useless trading system that does not serve the purpose of making gains, however confuses the traders and complicates the Forex trading unless the trader loses.
Another terrific flaw found in Forex trading is of an emotional nature between interwoven into the process. It is greed of the trader. A gainful Forex trade leads to exuberance and over joy, however it is the time when greed comes in and crosses the aspects of risk management. If traders are hooked to win out of greed they over ride all aspects to see more gains, only to see then crash to earth. They wait for the process to regain, however in dismay, some time and with worst possible losses. It is the time when feat crops up and paralyses traders not making them to open any position. Therefore, while traders; traders must not override the emotional side of trading. They should stick to discipline of the trade that can protect them from committing the flow of Forex trading.
Another type of flow can happen when traders are unconcerned persons, lazy with no drive to obtain profits or feels the need to be gainful. These people would have entered into Forex trading because of the hearing it as an easy game. It is not a trade for them that involve skill, preparation, trade investment and trade management. It is a fun game for them, where loses do not make any kind of difference to then. Such persons can male a wrong footing with a wrong purpose. Flaws in Forex trading come because of the inadequate knowledge of the traders. Few of the losers start with best aim in the trade. Even if, they has obtained some knowledge from here and there, they may find it tough to apply them practically in the trade, Inadequate knowledge can be the major flow that stops traders from achieving success.
Posted by Daytrader on under Daily Forex review |
The last summer you had your hands on some foreign currencies that were bought with your own money and now you want more of them. The last summer surely made you trade some currency but you did not make any profit from the trade that you made. If you had thought before you had made a trade then you would have surely made some profit.
There are many who believe that, all traders begin to earn a lot of money in the market as soon as they stay for a while in the market. This is not very true in all cases. There is a lot of things that a trader needs to learn and know before he could do good to himself by making profits. The traders have to keep a close watch on the market for movements.
There is always a pattern that the movement in the market produces. The long stay in the market will make you an expert in predicting the trend of the market. There is immaculate pressure when a trader enters the market in order to make a gamble and tries to make a profit with the investment that he has made.
Emotions play a major role in the market. Traders should trade in the market with out any fear. That does not mean that the trader should be hasty. The traders should be able to keep control over their emotions especially when they are about to take decisions.
Decisions can be guided by various analyses. There are a lot of traders in the market and hence decisions can make you win or lose in split seconds. There are two major type of analyses. They are known as fundamental and technical.
The fundamental analysis contains a lot of detail but it is very precise in predicting the forex market. The fundamental analysis of a forex market is always done with regard to the extrinsic factors. The past data of a market is analyzed in order to predict the future trend in a market when technical analysis is deployed. . A person who is expert at fundamental analysis can predict a drop off in the market if the government in a particular country is very much not stable. The fundamental analyst can predict that the market will have an increase if in case a leader who is very popular has won the recent elections. Previous market trends are sure to impact the trends of the market in future. And forex market is no exception. People have always been same. Right from the dawn of forex market, people tend to buy or sell and also there is always a response to stimuli. Hence a thorough analysis is required before taking a decision.
Posted by TomShort on December 18, 2009 under forex market |
Nowadays the usage of automated forex trading systems has made people without proper knowledge of the market to make big profits. The forex robots and the signals used in trading can be categorized under the automated trading systems. But what puts real traders a step ahead of the traders who have not learnt the art of trading is the way they have learnt to trade markets.
A trader can adjust his robots to improve their performance and make them more aggressive while trading and also control risks; this ultimately leads the traders to a jackpot of treasure. The interpreting of the news in the right way could prove to be very useful in analyzing the market. High movement is caused by some breaking news. This news could end up becoming a potential profit for the trader.
A beginner who has taken the decision to undergo the learning process of currency trading should not try to learn very much complicated lessons. The learning of these lessons without understanding could prove to be a mere waste of time. The beginner is advised to take a trading system that has proved to bring profits and stud it by analyzing it and test it on the real market circuit. The fruits of your own hard work could boost you in a very big way without any regard to the amount of profit that you have made.
The biggest market in the financial is the currency trading without any doubt. There is a regular turn over of $1.9 billion on a daily basis. The rules of both stock trading and forex trading differ a lot. The forex trading only involves two currencies hence knowledge about the currencies is alone enough to trade and make profits. The following lessons need to be learnt by a beginner before entering the real trade.
1. The charts play a major role in analyzing the trends in a market and hence the lesson about charts should be well taught to beginner so that he can analyze a trend well and there by use strategies accordingly. The lesson should also include lessons on patterns, oscillators, indicators etc.
2. Learning currency trading is not to invest your money in a market and lose it. You need to trade and gain profits. Hence proper risk management lessons need to be taught to the beginner to play safe. Risk management techniques involve the placement of stop loss orders. The identification of a market that brings no profit has to be identified and avoided. It is a very wise thing to do.
3. The identification of the right time to enter the market and leave the market is also very essential in order to make profits. The analyzing of a trading system is the best lesson that can be learnt.
Posted by Daytrader on under forex market |
According to experts, who made Forex trading software, this program application can perform greatly because of its wonderful calculations and low chances of a blunder. Forex trading software has the capability of doing all the calculations hence whatever these experts said are true. Forex software helps traders to successfully trade in the Forex.
The Forex trading robots are very easy to handle as they do not require special skills to use them. Anyone can make use of this software even the beginner can make trades only in few days after downloading this trading software. The Forex market is susceptible to trading market changes. It is also rather bothersome to try to keep up with the constant increase and fall conditions of the trading market. Some of the veteran traders are able to estimate where the trading market is heading.
The Forex robots help rookies, who are not that much familiar with the Forex market behavior and Forex trends. These robots help investors to decide when they must place trades. This software program has the ability to view the Forex market. It provides you an inside look to successfully trade. It allows you to identify market trends rightly. These robots use algorithms and are therefore, can predict the future of market with more accuracy by some hours. It is also able to work with several Forex trading strategies and gives suggestions on whether to make a trade or seize back.
The Forex robots such as MegaDroid, IvvBot and FAP are totally automated and make the good trade for you. You will get many benefits by using Forex robots. Forex robots can save your time. You can give that time in learning Forex trends. Forex robot works like your own assistant. Forex robots are of special assistance for people, who are unknown to the trading market and want to do investment in trading. This is an easy way of getting started to invest in Forex market. On Forex robots, there are stats that you need to check and see whether they are what you are looking for. Forex robots are best for newbie. Newbie can trade successfully with ease using Forex robots.
In order to get huge profits in this kind of trading, traders require searching automated trading robots. Forex robots are a key to gain success in Forex trading business. Choosing the correct Forex robot has several benefits. These Forex robots have the ability to bring successful trade in Forex trading. They make you trading very profitable. Robots correctly guide traders to get huge profits. Hence, before choosing trading robot, you should consider certain factors as it brings huge profits. You need to do little search on Internet to get best Forex robot. There are many robots available online out of which you need to choose perfect one.
Posted by Daytrader on under Daily Forex review |
USD Dollar (USD)
The Dollar gained versus most majors as Industrial Production came out weaker, lowering risk appetite. Industrial Production came out 0.1% versus 0.4% expected. PPI came out weaker with 0.3% versus 0.6% forecast. TIC Long-Term Purchases came out better with 40.7B versus 27.3B expected. NASDAQ and Dow Jones rose slightly by 0.27% and 0.29%. Crude gained by 0.68% closing at 79.44$ a barrel and Gold (XAU) remained almost unchanged with 0.16% change closing at 1140.5$ an ounce. Today, Building Permits are expected higher with 0.59M versus 0.57M prior and Core CPI is expected with 0.1% versus 0.2% prior. Housing Starts are expected higher with 0.61M versus 0.59M and Crude Inventories are expected with 1.2M versus 1.8M prior.
EURO (EUR)
The Euro weakened versus the Dollar and the Pound as risk appetite weakened and ECB\’s president Trichet said a strong Dollar is important for the world economy. European Trade Balance came out better than expected with 6.8B versus -0.9B expected. EUR/USD traded with a low of 1.4806 and with a high of 1.4998. Today, European Current Account is expected with 0.6B versus -1.3B prior. ECB President Trichet will speak in Frankfurt.
EUR/USD – Last: 1.4870
|
Resistance
|
1.4900
|
1.4925
|
1.4955
|
|
Support
|
1.4810
|
1.4740
|
1.4703
|
British Pound (GBP)
The Pound remained almost unchanged versus the Dollar as CPI figures came out better than expected but Industrial Production in the U.S lowered investors Risk Appetite. CPI came out 1.5% versus 1.4% expected and RPI came out -0.8% versus -0.9% expected. Overall, GBP/USD traded with a low of 1.6755 and a high of 1.6872. Today, MPC Meeting Minutes will be released. CBI Industrial Order Expectations are expected with -47 versus -51 prior.
GBP/USD – Last: 1.6800
|
Resistance
|
1.6850
|
1.6900
|
1.6955
|
|
Support
|
1.6750
|
1.6670
|
1.6625
|
Japanese Yen (JPY)
The Yen gained versus the Euro and weakened versus the Dollar as risk appetite lowered after Industrial Production in the U.S came out weaker than expected. Overall, USD/JPY traded with a low of 88.73 and a high of 89.53 and EUR/JPY traded with a low of 132.44 and a high of 133.58. Today, All Industries Activity is expected with -0.1% versus 0.9% prior.
USD/JPY-Last: 89.17
|
Resistance
|
89.65
|
90.00
|
90.18
|
|
Support
|
88.80
|
88.60
|
88.25
|
Canadian dollar (CAD)
The Canadian Dollar dropped as Risk Appetite weakened following U.S production data. Overall, USD/CAD traded with a low of 1.0464 and a high of 1.0617. Today, Canadian CPI is expected with 0.2% versus 0% prior and Core CPI is expected with 0% versus 0.3% prior.
CAD/USD – Last: 1.0535
|
Resistance
|
1.0620
|
1.0680
|
1.0735
|
|
Support
|
1.0475
|
1.0450
|
1.0425
|
Research by http://www.ufxbank.com
Posted by TomShort on December 17, 2009 under daily forex analysis |
Is the CAD Headed for a Breakout? By GoLearn Forex
USD/CAD:
The Canadian Dollar from a technical standpoint is giving every indication it is going to breakout. Price has been consolidating for several weeks. You can see more clearly the consolidation in the Chart below depicted by the orange triangle.
Typically we draw a triangle where only one side represents the slope. However, the triangle drawn below is indicative of investor’s uncertainty with regards to the CAD. The Canadian economy is holding strong. The CAD is a commodity currency and will rise and fall as commodity prices rise and fall (in particular Oil). The Dollar has been rallying which should mean a weaker Loonie, but this rally stems from positive U.S economic data. The U.S economy and that of their northern neighbor are linked to a certain extent as they feed off of one another. Therefore, positive U.S data should also be good for the CAD. Therein lies the conflict and thus you have a dual sided sloping triangle.
The CAD is currently trading above its 50 day MA. Similar to the AUD and NZD it failed to breach the 100 day MA in spite of the Dollar rally. As the CAD wedges itself into the triangle we are looking for the following to occur in order to trip an entry signal. If the Loonie produces a candle south of the 50 day MA and south of the bottom slope of the triangle then look to enter a Long CAD position. Alternatively, if the CAD produces a candle body north up the upper slope of the triangle and the 100 day MA then enter a Short CAD position. Lastly, if a Short CAD signal triggers we see a near term take profit level at 1.0880 coinciding with the Fibonacci 23.6% Retrace level. We view this level as strong point of resistance.
Oil Takes Off by GoLearn Forex
The FOMC meeting came and went without stirring the waters. In the Euro-zone and London, Equity Markets finished their sessions in positive territory ahead of the highly anticipated U.S FED rate decision. The accompanying FOMC statement was intentionally left mostly unchanged so as not to roil markets. It served its purpose well as the DJIA finished the day off slightly lower by 10.88 points to close at 10,441.12 while the tech heavy NASDAQ closed up 5.86 points to 2,206.91.
In the Currency Markets the Dollar followed Equity Markets finishing the session nearly flat against its G-7 counterparts. The AUD gave up .61% still reeling from CB comments that took on a more dovish tone in regards to any near term future rate hikes.
Oil soared to 73.54 during intra-day trading before leveling off the day at 72.66, a gain of $1.97. Gold climbed $12.70 an ounce to 1,137.90. On the Agricultural front Soybeans, Cotton and Sugar continued to rally while Copper, Wheat and Corn declined on Dollar strength.
On the economic data docket for today we have the BOJ rate decision to be announced, although no change is expected. In the U.K, Retails Sales are set to be released while in Canada CPI data will hit the wire. In the U.S, Jobless Claims will print as will the measure of Leading Indicators and the Philadelphia FED survey.
Upcoming Forex Events for December 17, 2009
GBP Retail Sales (MoM) Forecast 0.50% Previous 0.40%
CAD Core CPI (MoM) Forecast 0.10% Previous 0.10%
USD Initial Jobless Claims Forecast 470.00K Previous 474.00K
JPY Interest Rate Decision Forecast 0.10% Previous 0.10%
Analysis by http://www.golearnforex.net
Posted by TomShort on under forex market |
With the availability of a number of currency trading systems in the markets nowadays, it is indeed possible to make an error of selecting the wrong one for your trade or business. Unluckily, in case of forex, it does not indeed offer to much space to make mistakes as any mistake here signifies great financial losses on part of the trader. Hence, he has to be aware and very cautious while selecting from the different trading systems he would be using successively for his trade.
Many forex traders make the very common error of not going through the small print of the various forex trading podiums when they are buying it. It is no wonder, a very expensive error on the trader’s part. It is suggested to browse online on the internet for the different trading platforms in forex, if you at all wish to purchase them. While you are filling the forms, pay wise attention to the smaller prints on it and you will definitely come to know that this forex trading platform is nothing but a simulated program of forex trading. It means that the trading platform was never ever used in the real world of forex trading. , therefore the features that you found were interesting are nothing else, but only useless. Even worst is the case, if you lose hold of your equity. Therefore, you need to very careful while you are selecting your forex trading platform for your forex trade.
Then what might have happened actually with that trading. Did they occur in real time? The answer to this is have you come across the word ‘Curve Hitting”. The same has been taking place in the situation. What happens in this case is the system is bent after creating the so called rules a number of times, in order to make significant gains from the information offered. Basically, the problem is that no two sets of data imitate themselves in the same form as stated before. This is the simple logic that makes your system nothing, but a true FAILURE.
Let’s club it all in a proper setting that would be quite simple to grasp. Assume that there is a corkboard plastered on the walls of your house to throw the darts. Accordingly, many holes will be developed on the corkboard. After firing the darts, draw a circle around specific hole clusters. This will make the holes appear as a bull’s eye. Same happens in curve hitting in forex.
Therefore, it is better to avoid this while looking for a number of trading systems in the forex market. Conduct a lot of research about a particular system before you select one for yourself or your trading activity.
It is indeed suggested to play successfully in the game of forex trading system so as to avoid any disastrous situation.
Posted by Daytrader on under forex market |
Making a Prediction about the prices of the large number of FOREX products, just by making use of FOREX tip of trading is not at all sufficient. This particular topic is the one on which quite a large amount of stress should be laid upon. At the same time, there is actually no certain reason which says that you cannot obtain or receive a good amount or level of FOREX education and that too online basis. You can make use of all the education related sources that are present on internet or even you can be the one in its kind by picking up some sort of online tips for the purpose of FOREX trading from a really very good guide that deals with all the basics of FOREX trading, if you desperately want to make quite a large amount of money with the help of FOREX trading, then you can just simply have a basic yet sound type of strategy of currency trading. Don’t go for the difficult ones that are above your head level, you should only try to go for the simple ones that are understandable by you. You need to take all the steps in a planned out way. Don’t create hassle in the process of trading. Take your own sweet time and then decide what exactly you want to do with this trading market.
Such sort of materials on the topic of FOREX education may help you out in a great way by getting you started with the process of your currency trading strategy, although, it is really very useful or helpful to make a decision that whether you are actually looking forward to generate a very basic and a simple type of FOREX day trading strategy, even you have some other options also like making use of a scalping kind of trading strategy, or making use of an automatically operated strategy of trading. If you are the kind of person who has a general idea about the market of stock trading, then there are quite a large number of possibilities that you may be intelligent enough to apply the knowledge of the things that you have already learned and maybe put in to the great use like practice. There is a strong need for you to d quite a large amount of practice when it actually comes to the factor of initiating your FOREX business. You can actually be able to protect yourself from any sort of associated dangers and you can also be able to make quite a large amount of profits.
You just need to use it in the right way, rest this trading market will take care of.
Posted by Daytrader on under Daily Forex review |
USD Dollar (USD)
The Dollar gained massively across the board on the day the Federal Reserve decided to leave rates as expected at 0.25%. The Dollar rose after the announcement and continued its gaining after Asia markets opened. Earlier, the Building Permits came out 0.58M better than expected 0.57M. CPI came out unchanged as expected at 0.4%. Wall Street finished mix after being unable to hold in the positive side. Stocks turned to the negative after the statement of the FED about monetary policy. The Dow Jones fell 0.10% and NASDAQ rose by 0.28%. Crude Oil kept gaining for the second day closing at 72.77$ a barrel after the oil inventories showed a 3.7M drop. Gold (XAU) gained also closing at 1137$ an ounce. Today, the Initial Jobless Claims expected at 470K vs. 474K previously. The Philadelphia Fed Manufacturing Index expected at 16 vs. 16.7 previously.
EURO (EUR)
The Euro fell against the Dollar and the Pound, breaking through the 1.4500 and 1.4400 support levels, after the CPI came out 0.5% worse than expected 0.6%. The breakdown of this level could bring the pair to fresh new lows. Manufacturing PMI came out 51.6 better than expected 51.5. Overall, EUR/USD traded with a low of 1.4379 and a high of 1.4590. Today, the Italian Unemployment Rate expected 7.7% vs. 7.4% previously.
EUR/USD – Last: 1.4410
|
Resistance
|
1.4500
|
1.4600
|
1.4675
|
|
Support
|
1.4345
|
1.4300
|
1.4235
|
British Pound (GBP)
The Cable was the best performer among majors. GBP/USD momentarily broke above 1.6370 and rose to 1.6404, reaching a one-week high but then pulled back, breaking below the 1.6300 support level, reaching lows of 1.6230. Claimant Count Change came out -6.3K better than the expected 14K. Overall, GBP/USD traded with a low of 1.6230 and a high of 1.6409. Today, the Retail Sales expected at 0.5% vs. 0.4% previously. The CBI DTS expected at 16 vs. 13 previously.
GBP/USD – Last: 1.6275
|
Resistance
|
1.6425
|
1.6475
|
1.6525
|
|
Support
|
1.6275
|
1.6210
|
1.6170
|
Japanese Yen (JPY)
The Yen fell against the Pound and the Dollar. The Dollar reached a one-week high against the Yen as the Federal Reserve said deterioration in the labor market is abating while it will keep its low rate for an extended period. Overall, USD/JPY traded with a low of 89.37 and a high of 89.96. Today, the interest rate decision of The Bank of Japan (BOJ) expected unchanged at 0.1%.
USD/JPY-Last: 89.65
|
Resistance
|
89.95
|
90.40
|
90.75
|
|
Support
|
89.30
|
88.75
|
88.35
|
Canadian Dollar (CAD)
The Canadian currency gained as crude oil and stocks rose. It was little changed after policy makers in the nation and the U.S. made commitments to keep interest rates at historic lows. The Manufacturing Sales came out 2% better than expected 0.5%. Overall, USD/CAD traded with a low of 1.0570 and a high of 1.0641. Today, The Core CPI expected unchanged at 0.1%. The Foreign Securities Purchases expected at 10B vs. 13.59B previously.
USD/CAD – Last: 1.0615
|
Resistance
|
1.0640
|
1.0670
|
1.0700
|
|
Support
|
1.0570
|
1.0550
|
1.0515
|
Research by http://www.ufxbank.com
Posted by TomShort on December 16, 2009 under daily forex analysis |
Review Key Support and Resistance Levels for USD by GoLearn Forex
Key Support & Resistance (S/R) Levels:
As the Greenback continues to rally heading into the end of the year we thought it would be a good time to review a couple key S/R levels. Traders generate S/R based on a number of factors. One key factor is based on the tenor of the chart the trader is using. A trader using a tick or minute chart will be less concerned about S/R generated from a 4 hour chart that is 100+ pips from the current handle. However, that same trader will want to know where the longer term S/R levels sit. If price moves towards those points he can integrate them into his trading strategies thereby profiting and or avoiding losses.
GBP/USD:
The Cable is currently sitting below its 100 day MA which generates an already negative bias. A candle body below 1.6198 would generate the next Short entry point Near term profit taking would be the 200 day MA. If the 200 day MA is breached we would target the low of this range bound period near 1.5683 which also represents the Fibonacci 38.2% Retrace level. The 38.2% Retrace level was generated from the Sterlings turn around in January of this year.
AUD/USD:
The Aussie has shown great resilience and for good reason. The RBA had taken a hawkish stance on rates as it was amongst the first to raise rates. The Australian economy is in relatively good shape. Additionally, the AUD is a commodity currency and it has ridden the commodity rally. Currently the AUD is sitting just below the 50 day MA. A candle body appearing below .8944 equal to the Fibonacci 76.4% Retrace level, which also coincides with recent support levels would trigger a near term Short entry. We would increase the Short position with a close below the 100 day MA, currently holding at .8834. A long signal would be generated with a close well above near term resistance at .9325.
With the EUR taking a sharp nose dive yesterday it prompts us to look at recent relative price levels on the G-7. The EUR/USD is the most commonly traded pair in the world. The price of the EUR has broad implications on the relative value of other G-7 currencies. Although the below data can be shown graphically it is easier to view price differentials in a table. If the EUR is a leading indicator of relative value then the CAD, AUD, and GBP may be in for a minor drop.
Historical
Date EUR CAD AUD NZD JPY GBP
2009-10-02 1.4576 1.0797 0.8652 0.7160 89.8050 1.5946
2009-10-01 1.4545 1.0839 0.8697 0.7149 89.6050 1.5955
2009-09-30 1.4640 1.0695 0.8828 0.7232 89.7050 1.5982
2009-09-29 1.4587 1.0846 0.8703 0.7143 90.0885 1.5961
Current
Date EUR CAD AUD NZD JPY GBP
2009-12-15 1.4533 1.0611 0.9067 0.7224 89.6355 1.6272
US Producer Prices Climb by GoLearn Forex
Global Equity Markets were mixed on Tuesday as Dubai continues to sort out its debt repayment obligations. In the U.S Producer Prices climbed 1.8% which was more than double expectations. This caused stocks to retreat as it may engage the U.S Fed to raise rates out of necessity instead of a planned withdrawal from its current quantitative easing policies. The DJIA slid 49.05 points to close at 10,452. Ahead of the rate decision today traders have consolidated positions as markets may move drastically depending on what language the Fed uses.
There are a number of other economic data releases on the docket for today. Oil traders will be watching Crude Oil Inventory figures. CPI data as well as Housing Starts and Building Permits will also be on the wire today. In the U.K Jobless Claims will print although no major changes are expected. GDP in Australia has already printed slightly below expectations.
The Greenback continued to advance against its G-10 counterparts with the AUD giving up 1.15% for the day. The DXY closed above the 100 day MA to 76.961 helping to legitimizing the recent rally. Gold and Oil were essentially unchanged finishing the U.S session at 1.125.20 and 70.69 respectively.
Upcoming Forex Events for December 16, 2009
EUR CPI (YoY) Forecast 8.00% Previous 7.80%
USD Core CPI (MoM) Forecast 0.20% Previous 0.20%
USD CPI (MoM) Forecast 0.40% Previous 0.30%
USD Interest Rate Decision Forecast 0.25% Previous 0.25%
