November 27, 2011

Forex Gap - Risk of Forex GAP!

Forex Gap

Today I was looking at the EUR/USD chart at 7 PM EST.

Well, as expected, the currency pair showed support at 1.3200 levels as that level is where a low was formed
in beginning of Oct-2011 also.

NOTE: As you may be aware, if market bounces of a particular level, that level behaves again as support/resistance if
currency pair approaches that level again!

However there is something important I noticed, that I thought I should definitely tell you about!

"The market opened with a Forex GAP"

Yes, if you look at dailyfax.com EUR/USD 1 hr chart, it will show you that
the on Friday, the currency pair closed at 1.3231.

BUT, when the market opened today at 4 PM EST, the opening price was 1.3313!

Yes, that is a GAP of about 80 pips! (1.3313-1.3231)

So, if your stop loss was for example at 1.3250 or 1.3330, your entire stop loss would have got missed and your trade would
not have closed!

That is very important point!

In a GAP, the brokers are not obligated to close a Trade. It is the responsibility of the traders!

That is the main reason why

1. You should not carry over your trades from one week to next
2. Or if you are keeping your trade open, always monitor what is
the opening price the following week!

This way you can take care of these Forex GAPs!!

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September 26, 2011

Forex Trading Video

 

Just came across this nice video that shows you -

1. How to do intermarket analysis and take advantage of it

2. Effect of fundamental news on the market moves in short term

3. How to apply technical analysis on a currency pair chart.

 

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August 21, 2011

Forex Chart Analysis - Analysis of forex EUR/USD 1 hr chart

Forex EUR/USD chart is showing good indications of moving down over next few days. It can go down and once again test 1.4100 0r 1.4000 levels like it has done multiple times in last few weeks.

Let us take a look at the 1 hr EUR/USD chart -

 

Forex EUR USD 1 hr chart analysis

1. The hand driven line "A" shows the Head and Shoulder pattern. The high "2" is higher than high "1" and "3". In an ideal head and shoulder pattern the high 1 should be higher than high 3, which is happening in this scenario.

2. The Green line "B" shows the neck line.

3. The MACD as shown in Area "E" shows divergance, as in High 2 in head and shoulder is higher than High 1, but the corresponding highs in MACD are opposite (that is, MACD high corresponding to high 2 is lwer than MACD high corresponding to High 1).

So, these are all clear indications that the market may go bearish for next few days.

So, how to take advantage of this setup?

What a trader can do is wait for the market to price to break the "B" neck line. Once the neck line is broken, the expected support is at the line "D".

So, the trader can place a short trade as soon as the neckline B is broken with Profit target at line D. So this will be about 150 pips of profit. The stop loss can be placed above line "F" which indicates sort of mini resistance.

So, by risking about 50 pips, a profit of 100+ pips can be expected. Not bad..right?

If you like this post, can you do me a favour? Can you please add it to your facebook page or tweet it or digg it?

Disclaimer - The analysis is just for educational purposes
and is not a trading advice. Please place the trades by doing
analysis at your end.

 

Oh, by the way, if you are looking for a good swing trading course to trade on 1 hr chart, then check out -

Forex Success Formula Course

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August 16, 2011

Forex Trading - How is Gold from investing point of view?

I just came across this nice video that touches on investing in Gold. As you know price of Gold is increasing at a very fast. If you are trading forex, then you can consider investing in gold also to diversify your portfolio.

Take a look at this video on investing in Gold.

 

 

 

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June 1, 2011

Forex Head and Shoulder method - How to best Use Head and Shoulder method

Forex Trading Video - Head and Shoulder Method

Watch this this video to find out more about this highly reliable trading setup, which typically is more than 80% reliable. Easy to spot and use. And typical risk reward is very good - 1:2

In the video I am also showing you how to spot the best setup and what precautions to take when using head and shoulder pattern

 

 After the video, Click Here to Learn More

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May 21, 2011

Forex Income Engine Trade Alert Software - Review of Forex Income Engine 3.0

Forex Income Engine Trade Alert Software is a forex course and software from Bill Poulos. It is basically 3rd version of his famous Forex Income Engine course. It includes a trading software also that will generate alerts for you to help you in finding good trade opportunities.

I have just now posted my Forex Income Engine Trade Alert software Review

Go ahead and check it out.

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March 16, 2011

Portfolio Prophet Review - Portfolio Prophet is an ETF trading course

Portfolio Prophet is an ETF trading course. I happened to have insider access to the course.

I have posted my Portfolio Prophet review. The post contains details around -

1. What to expect from Portfolio Prophet

2. Is the course right for you.

3. What does Portfolio Prophet course made of? I mean what all does it include?

4. What is good about the course and what may be missing?

Click on the link to read my Review of Portfolio Prophet

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