We’ve all heard the saying “The trend is your friend”, and while it sounds nice it doesn’t really teach us anything about trading a trending market or how to identify one. In today’s lesson, I am going to give you guys some solid information on trend trading that you can begin using immediately. Today’s lesson is all about trading trending markets with price action, and we are going to talk about how to tell when…"How To Trade Trends In Forex – A Complete Guide"
– Buying at a discount involves waiting for price to pull back to level of support before entering – Using an oscillator like Slow Stochastics with settings 14,3,3 can help traders time entries – Traders may miss trades in a fast moving market waiting for the “discount” level, but this will enhance the risk to reward ratio over time Whether you are investing real estate, stocks, businesses or trading Forex the wisdom of “buying low…"4 Rules for Selecting Great Forex Day Trade Entries"
Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend may be your friend, but it sure helps to know who your friends are. In this article in this article, we’ll examine the value of ADX as a trend strength indicator. Introduction to ADX…"ADX: The Trend Strength Indicator"
Contents in this article [hide] 1) Price action analysis 2) The slope of trendlines 3) ADX 4) Moving averages (MA) 5) RSI 6) Bollinger Bands ® Knowing the strength of a trend is the backbone of any trading method Trading is all about understanding what your price charts are telling you. Being able to read market structure, sentiment and the balance between bulls and bears is vital to make the right trading decisions. Understanding if a…"How to know The Strength Of A Trend – 6 Tools And Indicators"
The first thing to consider is which news reports to trade. Earlier in this lesson we discussed the biggest moving news releases. Ideally you would want to only trade those reports because there is a high probability the market will make a big move after their release. The next thing you should do is take a look at the range at least 20 minutes before the actual news release. The high of that range will…"How to Trade the News Using the Straddle Trade Strategy"
Let’s now see how to trade the news with a directional bias in a trading scenario. Let’s go back to our example of the U.S. unemployment rate report. Earlier, we gave examples of what could happen if the report came in light with expectations, or slightly better. Let’s say there was a surprising drop. What effect could this have on the dollar? One thing that could happen is that the dollar falls. What??? Isn’t the…"How to Trade the News With a Directional Bias"
There are two main ways to trade the news: a) Having a directional bias b) Having a non-directional bias Directional Bias Having directional bias means that you expect the market to move a certain direction once the news report is released. When looking for a trade opportunity in a certain direction, it is good to know what it is about news reports that will cause the market to move. Consensus vs. Actual Number Several days…"2 Ways to Trade the News"
Before we even look at strategies for trading news events, we have to look at which news events are even worth trading. Remember that we are trading the news because of its ability to increase volatility in the short term, so naturally we would like to only trade news that has the best forex market moving potential. While the markets react to most economic news from various countries, the biggest movers and most watched news…"Which News Releases Should I Trade?"
Be Careful Trading the News Why trade the news? The simple answer to that question is “To make more money!” But in all seriousness, as we learned in the previous section, news is a very important part to the forex market because it has the potential to make it move! When news comes out, especially important news that everyone is watching, you can almost expect to see some major movement. Your goal as a forex…"Be Careful Trading the News"
News Makes the Forex Market Move It’s not enough to only know technical analysis when you trade. It’s just as important to know what makes the forex market move. Just like in the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news! To understand the importance of the news, imagine this scenario (purely fictional of…"News Makes the Forex Market Move"
The Ichimoku Cloud consists of several components which give it a unique capacity to detect trends, determine whether we are in a trend, the direction and the when the trend reverses. One of the components is the Kumo/Cloud which is one of the most unique aspects of the Kumo. Using the Kumo, there is a great strategy to detect key reversals using the Kumo Break Strategy. Before we can look at this strategy, we must…"The Kumo Break Strategy – Ichimoku Cloud Trading"
Trading with support and resistance is one of the more popular and successful trading methods in the forex market. In using any level as support or resistance, it is important to remember the following points: a) The more often a key level of support/resistance is tested by the pair without being broken, the stronger it is and the more difficult it is for price to break through that level. b) Once a level has been…"Support and Resistance Trading Using the Kumo (or Ichimoku Cloud)"
One of the most often used, and robust systems for the Ichimoku Kinko Hyo is the Tenkan-Kijun Cross Setup, or what I refer to as the TKx setup. It is simple, efficient, and great at picking up trends and trend reversals. It is best for the traders interested in trading trends or momentum type moves. What are the Tenkan and Kijun Lines? The Tenkan Line (TL) is also known as the conversion line or turning…"Ichimoku Strategies – The Tenkan-Kijun Cross Setup"
Article Summary: The concepts of Ichimoku can be applied across the board on all time frames. Short term traders can take the same rules and apply them to their time frame for holding a trade. However, there are two key aspects you should focus on with short term trading. “If you’re going to panic, panic early.” -Wall Street Proverb Trading short term has many real benefits if you’re comfortable with the seemingly erratic moves. Ichimoku…"Ichimoku’s Day Trading Strategy With The Primary Trend"
Article Summary: Trend trading with Ichimoku need not be confusing because the name is unfamiliar. Many traders prefer to trade with Ichimoku once they learn to see the trend in a new way with Ichimoku. This article is a complete breakdown of the components of the indicator as well as how you can turn this indicator into a trend following system. Patience is a high virtue. —Geoffrey Chaucer Many traders are asked what indicator they…"Ultimate guide to ichimuku kumo trade"