Book: SUCCESSFUL FOREIGN EXCHANGE DEALING

STUDY BOOK FOR SUCCESSFUL FOREIGN EXCHANGE
DEALING

Contnent Of Book

1.Common knowledge about the trading on Forex
1.1. Forex as a aart af the global financial market
Brief data about the Forex rise and development.
The factors caused Foreign Exchange Volume Growth on Forex (Exchange Rate Volatility,
Business Internationalization, Increasing of Traders’ Sophistication, Developments in
Telecommunications, Computer And Programming Development).
The role of the U.S. Federal Reserve System and central banks of other G-7 countries on
Forex.
1.2. Risks by the trading on Forex
1.3. Forex sectors
Spot Market
Forward Market
Futures Market
Currency Options
2. Major currencies and trade systems
2.1. Major currencies
The U.S. Dollar
The Euro
The Japanese Yen
The British Pound
The Swiss Franc
2.2. Trade systems on Forex
Trading with brokers
Direct dealing
3. Fundamental analysis by trading on Forex
3.1 Theories of exchange rate determination
Purchasing Power Parity
Theory of Elasticities
Modern monetary theories on exchange rate volatility
3.2. Indicators for the fundamental analysis
Economic indicators
The Gross National Product
The Gross Domestic Product
Consumption Spending
Investment Spending
Government Spending
Net Trading
Industrial sector indicators

3
Industrial Production
Capacity Utilization
Factory Orders
Durable Goods Orders
Business Inventories
Construction Data
Inflation Indicators
Producer Price Index
Consumer Price Index
Gross National Product Implicit Deflator
Gross Domestic Product Implicit Deflator
Commodity Research Bureau’s Futures Index
The Journal of Commerce Industrial Price
Balance of Payments
Merchandise Trade Balance
The U.S. – Japan Merchandise Trade Balance
Employment Indicators
Employment Cost Index
Consumer Spending Indicators
Retail Sales
Consumer Sentiment
Auto Sales
Leading Indicators
Personal Income
3.3. Forex dependence on financial and sociopolitical factors
The Role of Financial Factors
Political Crises Influence
4. Technical analysis
4.1. The destination and fundamentals of technical analysis
Theory of Dow
Percent measures of prices reverse
4.2. Charts for the technical analysis
Kinds of prices and time units
Kinds of charts
Line Chart
Bar Chart
Candlestick Chart
4.3. Trends, Support and Resistance lines
Trend Line and Trade Channel
Lines of Support and Resistance
4.4. Trend Reversal patterns

4
Head-and-Shoulders
Inverted Head-and-Shoulders
Double Top
Double Bottom
Triple Top
Triple Bottom
Round Top, Round Bottom, Saucer, Inverted Saucer
4.5. Trend Continuation patterns
Flags
Pennants
Triangles
Wedges
Rectangles
4.6. Gaps
Common Gaps
Breakaway Gaps
Runaway Gaps
Exhaustion Gaps
4.7. Mathematical trading methods ( Technical indicators)
Moving Averages
Envelops
Ballinger Bands
Average True Range
Median Price
Oscillators
Commodity Channel Index
Directional Movement Index
Stochastics
Moving Average Convergence-Divergence (MACD)
Momentum
The Relative Strength Index (RSI)
Rate of Change (ROC)
Larry Williams’s %R
Indicators combination
Ichimoku Indicator
5. Fibonacci constants and Elliott waves theory
5.1. Fibonacci constants
5.2. Elliott wave theory
References

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book: The Six Forces of Forex

The Six Forces of Forex

date: 2004

By Scott Owens

Few traders ever stop to consider the context that defines the foreign exchange marketplace, but all of them should. As forex matures in its role as a retail investment environment the rules – and the stakes – will only multiply.
ANALYSIS
• Who: The faces of forex that shape market action
• Why: Understand the nature of forex, and its inherent opportunity
• Where: Matching your objectives to the optimal dealer
• What: Choosing a trading vehicle based on your investment premise
• When: Time your trades for maximum efficiency
• How: Select a toolkit that actually improves your trading ability
ACTION
• Take an inventory of your personal trading plan
• Find solutions that can help you execute your plan, step by step
WHAT IT MEANS
• Bad News: Successful trading is more work than you thought
• Good News: Everything you need to win is right at your fingertips
RELATED MATERIAL
Test-drive FX Engines for free online at www.fxengines.com to see the power of system building, system testing, and system automation.
ABOUT THIS REPORT
The Forex Report is a periodic publication that investigates advanced strategies for superior trading performance in the foreign exchange markets. These reports utilize advanced statistical and econometric modeling techniques to create new insight into the trading strategy of the average trader. This report, The Six Forces of Forex, is a more general report intended for all audiences, including those new to the forex market.

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Short data about the origin and development of the currency exchange market

Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.

The modern foreign exchange market characterized by periods of high volatility (that is a frequency and an amplitude of a price alteration) and relative stability formed itself in the twentieth century. By the mid-1930s the British capital London became to be the leading center for foreign exchange and the British pound served as the currency to trade and to keep as a reserve currency. Because in the old times foreign exchange was traded on the telex machines, or cable, the pound has generally the nickname “cable”.

After the World War II, where the British economy was destroyed and the United States was the only country unscarred by war, U.S. dollar, in accordance with the Breton Woods Accord between the USA, Great Britain and France (1944) became the reserve currency for all the capitalist countries and all currencies were pegged to the American dollar (through the constitution of currencies ranges maintained by central banks of relevant countries by means of the interventions or currency purchases). In turn, the U.S. dollar was pegged to gold at $35 per ounce. Thus, the U.S. dollar became the world's reserve currency. In accordance with the same agreement was organized the International Monetary Fund (IMF) rendering now a significant financial support to the developing and former socialist countries effecting economical transformation.

To execute these goals the IMF uses such instruments as Reserve trenches, which allows a member to draw on its own reserve asset quota at the time of payment, Credit trenches drawings and stand-by arrangements. The letters are the standard form of IMF loans unlike of those as the compensatory financing facility extends financial help to countries with temporary problems generated by reductions in export revenues, the buffer stock financing facility which is geared toward assisting the stocking up on primary commodities in order to ensure price stability in a specific commodity and the extended facility designed to assist members with financial problems in amounts or for periods exceeding the scope of the other facilities.

At the end of the 70-s the free-floating of currencies was officially mandated that became the most important landmark in the history of financial markets in the XX century lead to the formation of Forex in the contemporary understanding. That is the currency may be traded by anybody and its value is a function of the current supply and demand forces in the market, and there are no specific intervention points that have to be observed. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1.5 trillion by the year 2000.

Main factors influences on this spectacular growth in volume are mentioned below. A significant role belonged to the increased volatility of currencies rates, growing mutual influence of different economies on bank-rates established by central banks, which affect essentially currencies exchange rates, more intense competition on goods markets and, at the same time, amalgamation of the corporations of different countries, technological revolution in the sphere of the currencies trading. The latter exposed in the development of automated dealing systems and the transition to the currency trading by means of the Internet. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market.

Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication, their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.

Online Currency Trading requires Patience

When the going gets tough, the tough get going. This adage often brings back the memories of my past days when I was trading initially in the currency exchange market. Indeed, there's nothing more hurtful than losing your invested money in the FX market. But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on. Learning the basic skills of online forex trading could be easy but, practically, one needs to acquire the advanced skills to play safe through thick and thin of FX trading.

I have traded in forex for many years and, if you count on me, I must tell you that the secret of successful trading lies largely on the hunch and intuition of an trader. Technically expressed, you should have the accurate forex alerts and forex signals to be able to make the right moves in the currency market. However, this is easier said than done as the skills of the Currency Trading Signal takes a long time to master. This is why while a few people are able to boost their forex pips in a short span of time, the others take a long time to achieve the same or maybe, some of them get frustrated and just give it up! The reality is that not many people are ready to be entirely devoted to the perilous process of online forex trading.

Having said this, I still wonder why some people choose to be a dare-devil and risk their money instead of simply following an established and renowned Account Forex Online Trading. I began trading in 1997 and there is one important thing I have learnt in my trading career so far, i.e., you have to got to be patient to learn the tricks of making right moves at the right times and profit from your trading.

Since I have led quite a successful career in forex trading, I have been sharing the tips and tricks of online currency trading with many traders around the world through my G7 Forex Trading System which as you know has remained pretty successful for many traders so far. My G7 Forex Trading System is an easy-to-follow, step-by-step trading manual offering in-depth online forex trading review.

If you visit my site (www.forex-science.com) you will find many of my existing customers are pretty satisfied with the performance of their investments and in fact, most of them have been able to increase their forex pips drastically. You would be surprised to know quite a few of them haven't traded for a long time! Now, this is what we call success in the forex trading, eh?

Forex Trading

So what is is Forex trading you may ask? Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.

The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.

Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.

The name convention. In Forex, the name of a "symbol" is composed of two parts — one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).

As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.

Example Forex transaction

Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.

The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).

As you expected, the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.

by Richard Goldie

Forex Avenue: The Road to Riches

In my continuing quest to provide visitors of my site with a large amount of options to chose from when considering working from home I have done some research on Forex trading. I first learned of Forex trading while pursuing my MBA program. For those of you who have never heard of this, Forex trading is the exchange of foreign currency.

I know I would have never even know this was an option for making money had I not found out in class. Most of the really big corporations have departments of people that do this for a living because it can be very lucrative if done correctly. The best news I have learned about this process of exchanging currencies is that many of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money into trying it. You won't make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions. If you do well in the trial account you will know if this is something you want to try on your own.

Benefits to Forex trading are that is can be done 24/7 whereas the stock market is a business hours only exchange. It is 24/7 because it is done with countries around the world so clearly there are countries that are awake and working while we sleep. Another benefit is you are in control of the trading on your account. You do not need to hire a licensed broker to make your trades and charge you fees. Along those same lines, anyone who does any investing most likely knows that some funds require you to own then for a certain period of time or pay early withdrawal fees. You do not need to concern yourself with this either. One last benefit that I would like to point out is the fact that Forex is not really subject to the same kinds of swings in the market that stocks are subject to. Of course if you always buy and sell the same currencies then there will be market swings. But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.

There are many resources available to someone interested in becoming involved in this type of training. The Federal Reserve Bank's website is just one example of the information available — http://www.ny.frb.org/markets/foreignex.html. Here is another article that you will find helpful in starting out in this field. http://www.forex.com/pdf/pro2.pdf . I have also included one of the sites that does offer a free lesson.

While there are many benefits to this type of training, as I mentioned above, there are certainly risks involved as well. There are risks with exchange rates, central banks in foreign countries, and risks involving interest rates and credit. Forex is quickly becoming a popular way to help diversify your investment portfolio. If you are good with understanding investing concepts and enjoy doing it this may be the home business opportunity for you. Just do your research and try to find one of the sites offering the free trial account to practice with and you are well on your way down the Road to Riches.

by Scott Bianchi

Why Trade the FOREX?

My purpose for writing this article is to demonstrate to you the advantages of trading on the Forex market. However, there is one myth that I want to dispel before I go further. The myth is that there is a difference between trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Company, who wrote "If It Doesn't Go Up, Don't Buy It". He said "Everyone who invests is a trader, only the time period is different." It is a lesson that I took seriously after taking a beating in the stock market in 2000.

So now, let's compare features of currency trading to those of stock and commodity trading.

Liquidity — The Forex market is the most liquid financial market in the world around 1.9 trillion dollars traded everyday. The commodities market trades around 440 billion dollars a day, and the US stock market trades around 200 billion dollars a day. This ensures better trade execution and prevents market manipulation. It also ensures easily executable trading.

Trading Times — The Forex market is open 24 hours a day (except weekends) which means that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to choose the times they want to trade. Commodities trading hours are all over the board depending on which commodity you are trading. Including extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays.

Leverage — Depending on your Forex account size, your leverage may be 100:1, although there are Forex brokers that offer leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock market can be as high as 4:1, and in the commodities market, leverage varies with the commodity traded but it can be quite high. Because the commodity markets are not as liquid as the Forex market, its leverage is inherently riskier. Although I was never shut out of a commodity trade by the day limit, the fear was always in the back of my mind.

Trading costs — Transaction costs in the Forex market is the difference between the buy and sell price of each currency pair. There are no brokerage fees. For both the stock and the commodity markets, there are transaction costs and brokerage fees. Even when you use discount brokers, those fees add up.

Minimum investment — You can open a Forex trading account for as little as $300.00. It took $5,000 for me to open my futures trading account.

Focus — 85% of all trading transactions are made on 7 major currencies. In the US stock market alone there are 40,000 stocks. There are just over 200 commodity markets, although quite a few are so illiquid that they are not traded except by hedgers. As you can see, the fewer number of instruments allows us to study each one more closely.

Trade execution — In the Forex market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent.

While all of these features make trading the Forex market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky.

by Susan Walker

Explosive Profits: 7 Reasons to Trade Forex

There are many money-making opportunities out there and we've been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc.

We've come to a few conclusions with the help of some well-known properity coaches.

Often people with the income they desire don't have the time to enjoy it. Those that have time don't often have money. You don't have to sacrifice your life-style to earn an above-average income. If you focus on the for a few months you can make that dream a reality and create time and money to do what you REALLY want.

To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it's a repeat type of product or service.

Money is a medium of exchange. There's no magical formula to possess it, you need to exchange something of value for it.

What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn't it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that's like), competition stealing your business without providing the same value etc.

All that is possible with . You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go.

Another advantage is that you don't need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away.

Here's 7 more reasons to trade :

1. It never closes. It's open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It's a continuous electronic currency exchange. This is great because you can trade whenever you have spare time.

2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It's the best use of trading capital around, even banks lending on property investments don't come close.

3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. 'Technical Analysis' helps to see these trends and profit from them.

4. Low Transaction Cost. In other words, you mistakes won't cost you a fortune. Good brokers won' charge commissions to trade or maintain an account even if you have a mini account and trade small volumes.

5. Unlimited Earning Potential. has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion).

6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you're selling in another so there's no biase towards either currency moving up or down. This means it's up to you to choose which currency to buy or sell with. Yu can make money going up or down.

7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It's highly efficient and allows you to avoid unexpected 'surprises'.

I hope you're now convinced that is the best investment and income opportunity around.

by Sorna Devadas

Forex The Future Investment

There are many many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the european and then the Asian. One of the great times to trade is during the over lapping periods. The USA and european overlap between 5am & 9am eastern and the Euro & Asian between 11pm & 1am eastern. Usually the busiest time and best to trade.

The is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with alot more from your pocket. It can be very risking. But not in Forex. Worst case senerio you could lose whats in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. OOOPS. But That wouldn't happen with a smarth trader.

Then there are the demo accounts which is an account where you can trade using all the right things, platform,charts,and information. But you are using play money, or what we call paper trading too.

Plus with Forex you have a mini account. Instead of needing thousands of dollars to get into it. You can open an account with as little as $300.00. Now of course you will be trading at 1 tenth of a trade. IN other words you controling 10,000 instead of 100,000.00 These are call lots. Which also means you will only risk 1 tenth too!

So if you would love to learn to do investing and not have near the risk you really need to take a closer look at Forex trading.

by Mike Pachuta

Investing in Forex

Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.

A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor's time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It's easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.

I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.

by Joe Clinton

Advantages of the Forex Market

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

by Heather Redmond

Are you looking to make money? Have you thought about trading on the forex?

Are you looking to make money? Have you thought about trading on the forex?

If you answered yes keep reading. Maybe you have thought that forex trading is just for people with a lot of knowledge and experience with traditional type of investments such as stocks, bonds and commodities.

The true of the matter is forex trading is for anyone. Forex traders, are made up of a large group of people. Ranging from everyday people to large corporations. The foreign exchange market offers you, as an investor the potential to make a lot of money. I don't want to miss lead you but, with any investment there is also a chance to loss money. So do bet the farm, educate yourself and get all the proper tools that you need be a successful forex trader.

I have come up with a few good reasons why you should start trading on the foreign exchange, which is commonly referred to as the forex or FX. More and more well informed, individuals and entrepreneurs are diversifying their traditional investments like bonds, stocks & commodities with FOREX

Here are some good reasons to start trading on the FOREX.

1) As a forex trader you will be trading in the world's largest financial market.
The FX market typically involves one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global forex and related markets is continuously growing and has been reported to be over $4 trillion US.

2) The FX market is open 5 days a week / 24 hrs a day.

The stock market has set business hours and closed on banking holidays and weekends. The forex market is 24 hrs a day except on the weekends. The hours of the FX are 22:00 Coordinated Universal Time (UTC) on Sunday until 22:00 UTC Friday. As one market is opening, another countries market is closing. This is appealing to traders because it gives them the flexibility of when they want to trade. This allows forex traders to trade before or after their daily obligations. Most forex traders are using automated forex software applications. The forex trader enters the data into the application and then lets it run. Amazing!

3) The FOREX market is never a bear or a bull.

As a forex trader you can have access to an array of currencies. When you trade on the forex you are trading currencies "pairs". For example, US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is constantly moving in relation to the other. When you make a forex transaction you are buying a particular currency, but at the same time you are selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value and other will decrease in value.
The key it is up to you to choose the correct currency to be long (the currency you bought) or short (the currency you sold).

4) The FOREX market offers a great amount of leverage.

You are permitted to trade foreign currencies on a highly leveraged basis sometimes up to 400 times your investment (400:1) with some brokers. The mini FX accounts allow you to trade with just 0.25% margin. This meaning, $25 allows you to control a 10,000-unit currency position. Now that's leverage. Futures traders, who are accustomed to margin requirements generally equal to 5%-7%-8% of the contract value. They will instantly recognize that the FX market provides much greater leverage. The stock trader, who must post at least 50% margin, there's no comparison. If you're looking for an efficient
market to trade in look no further, the Forex Market is the place.

5) Predictable Cycles and Trends.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The trends that foreign currencies develop are Advantageous for traders who use the "technical" analysis verse the " fundamental" analysis. It is my opinion that both methods should be used. But, as a technically trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

6) Forex brokers commissions and FX liquidity.

There are none of the usual fees, which futures and equity traders pay. FOREX transactions are traded over-the-counter (OTC), via a global electronic network. When a FX transaction takes place, what you see on your trading screen, is what you get. Thus, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage. But in the equity and commodity markets, you must pay both a commission and exchange fees. The OTC structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.
Like all traded financial products, over-the-counter currency (OTC) trading involves a bid/ask spread. This spread represents the prices at which your counterpart is willing to trade. The broker receives a part of this bid/ask spread. What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast
for any investor from any country. Because the currency market offers round- the-clock liquidity, you receive tight, competitive spreads both intra-day and night. As you can see the FX market can be a very profitable market.

As a forex trader you do not need a degree or any special training. But you do need to educate yourself and be aware economic factors that relate to FOREX. Using an automated software application will help you get the ball rolling.

Questions, answers and a tip: Trade the eurgbp

1) Can the US Dollar Actually Go Up during this crises and soon?

Yes indeed! The fact that traders should realize is that this is a global crises. Its a contraction of confidence around the world. Just look at the GBP and the EUR and how its behaving. Britain and the Eurozone have their own problems as well! The DXY ( US Dollar Index is actually right in the middle at .78 2 points off its Sept 15th low and 2 points off the 9/11 high of .80. Thats telling you something.

2. What other signs are there that are dollar positive?

Well, its the fact that its bad everywhere. New Zealand is in a recession. Australia is slowed down. Asian markets are down fearing global slowdown. So its a set up soon for a rebound.

3. With all of this dollar turbulence is there a way to trade the currencies that we should know?

Actually, its a great time to look at Crosspairs. Look at the EURGBP in particular.With both the EUROZONE AND THE POUND STERLING facing major pressures, one of the best trading currencies is the EURGBP cross pair. It is in a great sideways range and bounce trades off Resistance and Support is now a high probability trade.

4. What is the best pair to trade in response to FEAR in the US markets.

I have stated that the USDJPY is behaving incredibly in sync with the S&P. Also look at the GBPJPY pair.

Sources: Learn Forex Trading Secrets

Start Today Earning Thousands as a Successful Forex Trader

Everyone is talking about the Forex. The foreign exchange rate has changed dramatically or the last ten years. The change has taken place due to the internet and technology. As a forex trader you can trade 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday). The trading can be done anywhere there is an internet connection.

Sounds to good to be true you are thinking. The Forex is great place to trade. But, you do need to educate yourself with some basic knowledge. You don’t need any special degrees or diplomas to start training on the forex. There are a lot of great sites on the internet with forex tools that will help you to start your training \ education.

You will need some basic knowledge in the economic arena.

1.Payroll \ Unemployment
Strong job creation is a good indication of economic growth, as companies must increase their workforce in order to meet demand

2. The Discount Rate \ FOMC Interest Rate Decisions
The Federal Open Market sets the discount rate, which is the rate at which the Federal Reserve Bank charges member banks for overnight loans.

3. Trade Balance
The balance of trade measures the difference between the value of goods and services that a nation exports and the value of goods and services that it imports.

4. CPI – Consumer Price Index
The CPI is a key gauge of inflation, as it measures the price of a fixed group of consumer goods.

5. Retail Sales
Retail sales is a measure of the total goods sold by a sampling of retail stores. It is used as a gauge of consumer activity and confidence as higher sales figures would indicate increased economic activity.

This data is public information and easy obtained via government websites, newspapers and online resources.

Now that you have some basic knowledge of economics your next step is to open up a demo forex account. You will need to purchase an automated forex trading software application. Look for a forex software application that has a demo account. Using a demo account is a great place to start it is free. Who doesn’t like free. When you feel confident and ready to start trading you can open up an account and start making money.

The mini forex is a good place to start for people just entering the forex market. The mini forex allows you open an account that is at a reduced amount. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position. The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

Now that you have started trading on the mini forex if that is the route you have taken there are few other concepts to learn. They concepts are moving averages, Fibonacci levels and Bollinger Bands. These are ratios and measurements used to determine the highness or lowness of the price relative to previous trades. You just need a working knowledge of these concepts. Your automated software will handle all the mathematical calculations for you.

Now that you have a good knowledge of these concepts, there is one other thing we must consider. Fear, which can be the worst enemy of the Forex trader. To become a profitable trader you must leave fear aside and stick to your trading plan.

In conclusion, the key to being a successful forex trader is to have the knowledge and proper psychological preparation.

Tracy Lenyk

The Forex Market Can Be A Lucrative Market But Don’t Obsess

Have you ever thought about making money trading in the stock market or in the forex? If you aren’t living under a rock you have heard about the stock market. But have you heard about the FX. The foreign exchange (currency or FX) market is where currency trading takes place. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another.

With the easy access to the internet many people are getting involved with forex trading. With in the last few years the forex market has really taken off. The forex market is 30 times larger than the US stock market. In order in trade in the forex you don’t need any special degree, license or diploma. What you need is to educate yourself, have money that you are willing to invest and even willing to loss, an internet connection and a forex software application.

How big is the FX you ask? The forex market is the largest in the world. With so many countries involved the daily turnover is 1.5 million dollars. The FX is extremely liquid which makes it very desirable for traders. The FX has long trading hours: 24 hours a day except on weekends. The hours are 22:00 Coordinated Universal Time UTC on Sunday until 22:00 UTC Friday. This is a great benefit for the fx trader. You can make you trades after, before or inbetween your daily obligations.

As a stock trader the market is only open 8 hrs a day. Any event over night can cause a stock to go up or down. But with the forex there are no gaps in time during the week. Forex traders and day traders find this appealing.

As a forex trader you always trade in pairs and usually against the US dollar. There are 7 major currencies which are; EURO (EUR), The British Pound (CGP), Swiss Franc (CHF), Japanese yen (JPY) Australian Dollar (AUS), New Zealnad Dollar (NZD) and the Canadian dollar (CAD). You can enter these pairs into a currency calculator.

Currencies are always going up and down and you can trade in either direction. This course that the currency takes is due to how the world perceives the value of a currency. Economic factors of a country is a real key. You don’t have to be economic guru but you should know where to get the information and be familiar with the data. When you make your forex trades your forex software application with be able to take over. The application is a mathematical program you put in a few setting and it takes over.

Sorry to bust your bubble but there is a downside to Forex trading. The forex is a great place to make money but it can also be a war where you loss your money and confidence. You must be wise with your money and trades. The great and famous military leader, Sun Tzu once said, “the obession for victory is a state of mind that benefits the enemy” These wise words are applicable to the FX trading arena. There is nothing more damaging to a trader or for that matter any business owner than the obsession of winning or victory. Making a profit is always sweet but there will be times when you lose as a forex trader. You must be aware and realistic about this as a forex trader.

Don’t trade with the mind set that you must never close a trade until you turn a profit. It is my opinion that you should never obsess with forex trading, be wise with your stops and forex indicators. Good luck and happy trading.

FX Psychology For The Successful Trader

Taking responsibility of your capital
It is amazing how many people are happy to place their hard earned savings in other peoples hands, accept the losses as its easier to blame someone else than to take responsibility of those funds ourselves.



The first step in any financial success is to believe in yourself and your own abilities. Have you ever notice how the experts on stock exchange get it so wrong to often. It is a real boost to your ego and confidence level when you grasp the trading concept and acquire a real solid forex education.

With this new found knowledge and confidence you can often outperform many professionals with years of experience.



The forex market moves several times faster than any other financial market and with leverage, the rewards and losses compound many times. The best way to overcome the thought of using your own money and the volumes you will be trading is to think in terms points and not in dollars, rubles or pounds. Don’t calculate your profit and losses in terms of hard earn currency talk in terms of profits and losses in points. If you implement this psychology from the beginning it will feel as if are trading a demo, a mini or 10 contacts of a full account.



It is common practice for FX traders to refer to gains and losses as points. We don’t refer to the currency as the benchmark of our own performance. We reference our losses and gains in points and measure our performance against this.



When trading via a forex demo account most people do very well. Why? Its psychology 101 they are trading without fear. When the real money comes into play; even on mini forex trading account they suddenly find themselves not thinking clearly and trading with fear. The outcome can be many missed opportunities and accumulated losses. They quite simply loose their nerve and give into fear and greed. I have seen this happen to forex traders when they step up from a mini account to a full account. Same thing can happen for a forex trader when they decide to stop trading single contracts and start trading multiple contracts.



Easier said then done, stop thinking about how much money you may gain or loose. Think points not money no matter how many contracts you are trading. Try this approach in a demo account.



Cut your losses and run with the profits.


Simple concept but is one of the most difficult to implement for most forex traders. It can also be the demise for most forex traders. Most traders violate their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in hopes that the market will come back. In addition, traders who have had their stops hit a few times only to see the market go back in their favor once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more then a predetermined amount! The mistaken belief is that every trade should be profitable. If you can get 3 out of 6 trades to be profitable then you are doing well. How then do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal.



Another good forex strategy is to move stop losses (the point the trade will be sold if it goes the wrong way) behind the trade to a level where a pull back can be accommodated but a reversal will lock in at least some profit.



Self-discipline
Use discipline when trading. Ask yourself this question. If my next retail purchase is over $400 how much research will I do prior to making the purchase. If you take your shopping serious take your trading seriously. The point to be made here is be sure that you have a plan in place before you start to trade. The plan must include stop and limit levels for the trade, as your analysis should encompass the expected downside as well as the expected upside.



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Keep your trading simple. Most traders start out with a simple trading strategy that is successful. But later on find themselves trying to find a better and more profitable system. They also allow themselves to be influenced by other opinions and too much fundamentals. It is not too different from going to a race track where everyone has a sure thing or the information available becomes so confusing you can no longer see the wood from the trees. Trading the stock market is often similar in this regard. Have a simple forex trading strategy, stick to it and keep it simple. The golden rule here is to keep it simple…don’t allow yourself to become confused with too much information and if you’re not sure or not in the right emotional frame of mind, don’t trade.



You are not married to your trades
The reason trading with a plan is so important is because most objective analysis is done before the trade is executed. Once a trade is in a position don’t analyze the market differently in the “hopes” that the market will move in a favorable direction. Look at the changing factors objectively that may have turned against your original analysis. This is especially true of losses. Learn from your mistakes. Forex traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses. Don’t take more trades in the hope that the market will turn in your favor. Your losses will accelerate.



Do not bet the farm
Would you over pay for a retail product? So why would you over trade. One of the most common mistakes that traders make is leveraging their account too high. They start by trading much larger sizes than their account and they don’t trade prudently. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $1000 as a minimum forex margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to trade with 1-10 leverage or never use more than 5% of your account at any given time. Forex currency trading is not easy. If it was everyone would be trading forex.


Now that you have mastered the psychology of forex you will need a good forex trading software application to start making money. Some of the best forex software application are; forex auto cash robot, forex autopilot, forex killer and forex loophole.

How to use Pivot points in Forex trading? The strategy

Ok now let's start trading.
We are going to show you the way we trade Forex using Pivot points.

We calculate Pivot points on daily basis using daily charts and then use those Pivot levels on 15 minute charts — our main charts — where we will look for entries, stops and exits.

We use 15 minute time frame because it allows catching the best entry and exit opportunities. With hourly charts, for example, when the signal is there it is quite often already too late to react / enter.

We know we have to calculate Pivot points every single day, so that each morning we start with new fresh daily Pivot points, calculated from midnight to midnight EST.

Let's look at the current chart to see how Pivot points were found.

As you can see we use only 5 major Pivot point levels: R2, R1, PP, S1 and S2.

After Pivots are in place traders should start taking notes:

First, they should note where the market has opened today in relation to the Pivot Point (PP): above the Pivot Point or below it. The answer to this question provides the first clue about traders' biases for the day, e.g. if the market has opened above Pivot Point, traders will be bias towards taking long positions, on the contrary, opening below the Pivot Point would suggests shorting for the day.

Then traders should look at how far the price opened from the Pivot (PP), and make extra notes when it opened below S1 or above R1 level which is considered to be a quite distant open.

With some small distance away from the Pivot Point it is considered to be a good morning for trading. It is very much suggested to wait for a pull back towards the Pivot line before taking a position. 15 minute charts in this case help to catch the right moment for entry.

With the second — distant opening (below S1 or above R1) — we have very high expectations that the price will try to correct such "distant irregularity" and thus instead of progressing further away from Pivot Point it will try to move back towards the Pivot — the gold-middle point of the day. As a result, we will typically see a ranging market which does not produce much of the trading opportunities The expectations are that the price will revolve around Pivot Point for the rest of the day — nothing to do for us, we stay out.

Let's look at the next picture:

We have daily Pivots on 15 minutes chart. We wait for a pull back towards any of the closest Pivot levels, or, usually, towards the Pivot Point level. In this case Pivot Point level acts as a support.

We don't enter on the touch of the Pivot Point line. Why? Because we remember that the price do breaks through support / resistance levels, otherwise it would move constantly in one direction. So, instead of "jumping in fire", we wait.

Remember, before we actually see the price bouncing off the Pivot Point level, we can only expect it to do so. An expectation is not a good reason for entry. We need to see the price touching,stopping and then reversing. That's what we wait for. Another 15 minutes goes by and the situation clears: once we see a U-turn we enter!

Once the price has chosen a direction and we are in the trade, the first target is going to be the first level of support (downtrend) / resistance (in uptrend). What does that mean for us? It means that when opening a position around the Pivot Point the first profit target can be set to R1 or S1 level regarding the price direction. The guarantee that the market will reach that first level is very-very high. It does reach those first levels almost 95% of the time! You will be amazed how simple those quick profits are

In general a trading area around R1, S1 and Pivot Point itself is the easiest and most predictable area to trade in.

As we know from the theory once a level of support is broken it becomes a level of resistance. Same for resistance, once broken — becomes support.

So, here come other Pivot levels such as S2 and R2.

Let's take an uptrend. When the price starts to move up from the Pivot Point it aims at R1 level first. There the price usually meets a strong resistance which it needs to overcome before it can move any further.

Once above R1, what is the next target? The next is R2. While aiming at R2, the price will have R1 level as its strong support now. It may or may not come back one more time to test R1 level before moving further up.

While holding a position, it is a common rule: if the price didn't "see" the first support / resistance, e.g. goes quickly through it without noticing / stopping, do not exit the trade, set your profit target at R2 because the market shows strength and is capable to push the price further to the next level. Typically, R2 becomes the highest point of the trading day.

However, R2 and S2 are not the ceiling for the price to stop at. During well trending market periods the price can move past those levels with no troubles at all.

If the market opens or trades at the extremes R2 or S2, the price will show a tendency to trade back toward the Pivot Point or even stop and go sideways. Try to avoid buying at R2 or selling at S2.

A general rule for Pivot point trading can be set as:
The further the price moves away from a daily Pivot Point the lesser should be attempts to enter the market. Try catching the market when it is close to the Pivot Point in the beginning of the day; and if came late, avoid entering for the current day.

That's basically the way how traders use Pivot points in Forex trading.
Although it sounds quite simple it requires a lot of attention and patience as well as mastering the technique of Pivot point trading.

Would you like to find out what happened later on the chart where we waited for clarification last time?

That day was very good, we made some healthy profits.
But, it is important to remember that although Pivots are so remarkably helpful, there is always risk

involved and not all 100% of trades turn out profitable. Using stops to protect your capital is a very wise choice and taking losses when went wrong is an everyday trading routine. Being truly realistic about Forex trading is a huge step forward.

Trading with Freedom Rocks Group

Hello,

I’ve been using a trading system developed by a group called Freedom Rocks. Not very exciting but slow, steady growth so far. I’m up about 62% overall in the past three months. They are a new startup (April ’06) and not many users. Is anyone here using this method? I’d like to talk to others about various strategies and get any feedback I can about this type of trading.

Dick

P.S. you can check it out at www.tradefreedomrocks.com/demo if you like.

Urban Towers Scalping Strategy

Name : Urban Towers Scalping Strategy by urbanforex
Indicators : Blue MA
Time Frame : 15min

Description : During a trend, when the market retraces to the blue MA with at least 3 consecutive lower highs (3 towers), we enter at the break of the high of the last high. Ok let me explain in details one by one.

Steps to Follow :

- Price is above the blue MA trend is up
- Price is below the blue MA trend is down
- Market retraces towards the blue MA with 3 consecutive lower highs (in a uptrend)
- At the break of the high of the last candle, we enter long (in a uptrend)


Trade Example Number 1

Alright, what do we know right off the bat by looking at this. We know the market is in a uptrend because the market is above the blue MA. The market retraced to the blue line with 3 consecutive lower highs (3 towers) as we can see the red candles above. Next, we entered long at the break of the high of the last retracement candle - which in this case is 3rd tower as we can see above. Ok 1 more example for you guys




Trade Example Number 2


Ok now here is a example of a no good trade.


Alright, in this example, the market was in a uptrend, it did a 1, 2, 3 tower retrace but it never had a breakout on the high of the 3rd tower, in fact, the market continued down and changed to a down trend. This example is to show that this strategy helps avoid many fake trades.

Great GBP/JPY 1M scalping strategy

Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:



1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)








Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.



Sell strategy:

When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.



Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.



Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.



Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.



Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...



Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...



Download Template for Metatrader Platform is available for download

$10,000/month forex trading – revealed!

You are about to learn EXACTLY how to make $10,000’s on the forex market each and every month absolutely free of charge. I will explain to you step-by-step with all due details about how you can win 100’s of pips per trade.

Although all of you would kill to get this priceless system, only a limited number of people will actually get it. This system has been developed and perfected over years of experience and hard work. So the people that are lucky enough to get this system will get themselves to the top. Many of you are struggling to be successful on the forex market. Many of you have put life savings at risk because you really don’t know what you are doing. And that is very sad, my friend.

Now paint yourself into this picture: You wake up in the morning, wash your teeth, grab a cup of coffee and head over to the computer. You turn it on, log into your forex trading account and you see you just won another trade making you another $1,350 with only ONE trade! Awesome! Now, you take about 20 minutes to watch the currency charts to see how the market is moving. Then, you go away from your desk, spend time with your family and you have a lot of time to do all the stuff you usually do throughout the day. At night, you come back to your computer to watch the charts again to see what trades you can setup to make some more $1,000’s.

That will be your routine from now on once you get my system. No more long hours in front of your computer watching the charts, and no more waiting. You will setup successful trades knowing exactly how much you will make and knowing when you will hit your profits. That’s how perfected this system is.

Let me tell you upfront that you don’t need any special skills about economics or forex overall. You just need a basic understanding about forex and how to place a simple trade. Other than that, you just need an internet connection and my instructions. That is enough to set you up to make $10,000’s every month.

As mentioned before, this will be limited to a select few people. No. I won’t choose people looking at their reputation in this forum or their positions (mod, admin, etc). You need to post your interest in this threat and I will decide who gets it and who doesn’t. I won’t be influenced by anyone and will make my decision using my own criteria.

The people who get it will need to agree NOT to share this with anyone else. This system is too valuable to give away uncontrollably. This system is what splits the category between men and babies.

Does this sound too good to be true? You have nothing to lose. It’s absolutely free of charge so why would you doubt about trying. But, like a friend of mine says: “Trying is for losers, be a doer”.

once - a -week "lazy trader " strategy

Of course, i am kidding when i say it is a "lazy trader" strategy. If you are lazy, you will not last in these markets. But this strategy is very low-maintenance and should with the proper money-management produce @ least 20% return annually . Not bad for only setting this up once a week and closing the position next week!
The principle behind it is very simple : not many traders are willing to scan the markets on Friday afternoon for a new set-up. But this is what you would do to profit from it.
Pairs to trade : any.
Chart set up :
Daily charts
Indicators :
MA10 and MA 40
that's all!
The rules for buying : set a buy on Friday on a 9-day bullish break-out , when MA 10 is above MA 40.
To cover: Sell short next Monday morning
The rules for selling : set a sell on Friday on a 10-day bearish break-out , when MA 10 is below MA 40.
To cover :Buy back next Monday Morning.
That is all there is to it.
Very simple, easy to follow
I have a number of indicators that you can download for free as well just to make your trading more efficient:

What is Forex

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.