Forex Trading Courses

Looking to learn all about Forex? If you are new to Forex trading, you will want to learn as much as you can about how to be profitable in Forex. There are many courses offered these days by both Forex brokers and independent trading courses geared to both novice traders and professional Forex traders. DailyForex has reviews of the top Forex courses on the internet listed below. Also, you might want to take a look for those that provide weekly trading webinars so you can learn from Forex experts together with other Forex traders.

Help me choose a broker

Help me choose a broker

Welcome to our “Help Me Choose A Broker” help desk. We are happy to provide all traders with this special service so that you can find the best Forex broker to meet your needs. All you have to do is fill in your trading information in the 3 easy steps below and we will connect you with the broker that is most compatible for you.

Please answer the following questions:

The advanced broker matching tool uses an algorithm to match the criteria you have selected as relevant to your trading with the most updated services provided by the long list of brokers we review. We’ve successfully matched hundreds of traders with the most appropriate brokers and we look forward to helping you as well.

Finding a Forex broker has never been so easy!

Thank you.
Your information has been successfully sent to us.
We will handle your request as soon as possible.

Forex trading training

Forex trading training

There are many Forex education systems on the market, but many, if not most, are created by individual traders looking for a platform from which to share their ideas. Many, if not most, are lacking the finesse and technical capacity to transform a collection of articles into a truly comprehensive and interactive Forex learning experience. FX Academy was introduced by and was developed by a team of professionals in the fields of research, finance and education.

Forex trading training

Forex trading training

Rob has built his own proprietary indicator named “fire lines”, the precise calculation of which is not revealed. “Fire lines” are price levels at which a lot of significant intraday activity can be expected – in other words, key levels of support or resistance. As well as offering potentially lowest risk, highest reward trading opportunities, the position of the lines can be used to determine not only the best areas at which to seek to enter trades, but also whether the current day is more likely to see the price mostly rising or falling.

Forex trading training

The Forex Trading Coach

Forex trading training

As its name suggests, The Forex Trading Coach is a course that differs dramatically from most other Forex courses we’ve reviewed. For starters, it is not run by a big institution or a group of traders. The mastermind behind the website is Andrew Mitchem, known by his students as The Forex Trading Coach. Mr. Mitchem developed the course entirely on his own, and he continues to run it independently, relating to each student personally and providing personalized help when necessary.

Forex trading training

Forex trading training

There are a lot of defining characteristics that differentiate the Forex market from its counterparts. Some of these unique traits are positive and make FX a highly attractive investment for the individual trader, while others are less positive and make the Forex trading arena a dangerous one. However, this danger only exists if the trader does not prepare themselves in advance using one of the many tools available, such as the one we will mention below, the eToro Forex Matador e-course.

Forex trading training

Market Traders Institute

Forex trading training

While hundreds of Forex courses exist, many are shallow or one-dimensional, focusing on a specific aspect of Forex trading. Once in a while, however, a Forex course emerges which approaches Forex trading as a discipline, not just a hobby. Market Traders Institute is one such company. Headed by Jared Martinez, a widely recognized Forex expert, Market Traders Institute offers a range of Forex courses suited to traders at all levels.

Forex trading training

Forex School Online

Forex trading training

Forex School Online is a Forex course that has carved a unique place for itself in the saturated market, by focusing on the specific aspect of Forex trading known as price action trading. We actually found this singular focus to be refreshing, as many new traders fail to find the proper trading strategy because they get confused between their options or mix up different strategies entirely.

Forex trading training

Forex trading training

Online Trading Academy, in business since 1997, is one of the few FOREX training schools to integrate live trading into its courses. The company combines live classes with online training opportunities to meet the needs of individual students. Courses from Online Trading Academy are geared toward individual investors or traders, novice or experienced, who want to learn how to use the same tools and professional trading techniques as the professional traders on Wall Street.

Forex trading training

Forex trading training

Fibmaster, Neal Hughes, promises you to become a Fibonacci expert, after taking this 3 hour course. 2 video downloads include 21 sessions, and cost $79.95. Neal Hughes has a track record in financial markets. He was a stock broker and a trader himself, and has taught Fibonacci trading methods to private clients and small groups.

Forex trading training

Forex trading training

ForexCourse, developed and instructed by Peter Bain, teaches all the basis of trading in the FOREX market, focusing on using Pivot Points to identify the entry and exit points of the market. The full package, consisting of hard copy manuals, DVD’s and CD’s costs $495.

Forex trading training

Learn To Trade FOREX

Forex trading training

Learn-to-Trade FOREX makes accessible the gathered knowledge of Gains’ specialists, as to help new investors make their way through the FOREX market. The online course is very substantial, as it has both explanations and examples, each organized in different sections that make learning more efficient. The lessons deal with key terms and techniques to be applied in currency markets, as well as specific factors that may influence the movement of investments.

Help me choose a broker

Help me choose a broker

Welcome to our “Help Me Choose A Broker” help desk. We are happy to provide all traders with this special service so that you can find the best Forex broker to meet your needs. All you have to do is fill in your trading information in the 3 easy steps below and we will connect you with the broker that is most compatible for you.

Please answer the following questions:

The advanced broker matching tool uses an algorithm to match the criteria you have selected as relevant to your trading with the most updated services provided by the long list of brokers we review. We’ve successfully matched hundreds of traders with the most appropriate brokers and we look forward to helping you as well.

Finding a Forex broker has never been so easy!

Thank you.
Your information has been successfully sent to us.
We will handle your request as soon as possible.

5.45.74.36 Netherlands ForexCourses_International

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

© DailyForex All Rights Reserved 2006-2017

What is Forex Trading

How can you benefit from exchange rate changes?

Exchange rates change all the time, and forex traders attempt to profit from these changes. Here’s a quick example:

Let’s say you travel abroad and you go to an exchange and use $500 to buy euros. After a week, you come back (without spending a single euro) and exchange your euros back to dollars – but you receive $505, because during the week, the exchange rate changed. This is a profit of 5 dollars, which you made by trading currencies.

Of course, nowadays you don’t need to leave the house to invest in the price of currencies – and you don’t even need to actually buy the currencies. Thanks to online forex trading anyone can invest in the price of different currencies from home – or even from their smartphone – and potentially profit from changes in price.

Which Currencies Can You Trade?

There are many types of currencies that you can invest in with iFOREX – in fact, there are over 80 pairs to choose from. Let’s take a close look at some of your options.

The most traded currency pairs are called ‘majors’ and they compose about 85% of the entire foreign exchange market. Note that they all include the USD. These major pairs are:

(AKA ‘Crosses’) Currency pairs that do not include the US Dollar are commonly known as ‘cross currency pairs’. A few examples will be

Exotic currency pairs are made up of one major currency and a currency of an emerging economy. Examples would be

For the full list of the currency pairs you can trade at iFOREX, please visit our trading conditions page .

Understanding Pips

Pip stands for P ercentage I n P oint. For most currency pairs, it corresponds to the movement of one unit of the fourth decimal digit in a rate, but there are exceptions like the Japanese Yen pairs, where a pip corresponds to the movement of one unit of the second decimal digit in a rate.

Confused? Here’s a quick example:

If the EUR/USD moves from 1.1050 to 1.1051, this .0001 rise in value is one Pip.

When Can You Trade Forex?

The forex market operates 24 hours a day and is commonly separated into four sessions: The Sydney session, the Tokyo session, the London session, and the New York session.

Leverage Currency Trading

In the past, only large investors participated in currency trading, but nowadays anyone can trade currencies from home – and you don’t need to be rich to invest. Thanks to a unique tool called ‘leverage’ you can open large deals with a relatively small investment. For example, with a €100 investment, you can open a deal of up to €40,000, using leverage of 400:1.

What is forex trading

This means that for every euro you invest, we give you up to €400 in trading power. And remember: Because of iFOREX's Negative Balance Protection you can never lose more than your initial investment – your account will never go into minus, regardless of the leverage you choose.

How to Open Your First Currency Deal

Are you ready to open your first currency deal? Great!
You can do so in three simple steps.

  1. Choose a currency
    Let’s say you want to trade EUR/USD, for example. If the price of one euro is $1.1200, with a €100 investment, you could have bought $112, without leverage.
  2. Choose Your Deal Size
    By using leverage you can open a deal worth up to 400 times your initial investment. For example, with a €100 investment, you can buy €40,000 worth of dollars, using 400:1 leverage.
    €100 X 400 = €40,000
  3. Choose Direction
    When you trade currencies with iFOREX, you could profit even when you think prices will go down. In this example though, let’s assume you think the price will go up. Choose ‘Buy’. Now what?
  4. Close Your Deal and Collect the Profit
    Let’s say the rate of the EUR/USD rose – meaning that the price of the euro increased by 0.01 – and you decide to close your deal.

This is a change of 0.01 for €40,000 deal, meaning a profit of $400 with a €100 investment.

The key elements of Forex Trading with iFOREX
  • Take part in the largest financial market in the world
  • Open large deals with a relatively small investment
  • Invest in a wide variety of currency pairs
  • Receive free access to useful education resources
  • Benefit from free training with a trading coach
  • Trade in your free time from your PC or mobile device
Want to learn more about currency trading?

Join iFOREX to benefit from our exclusive education package and start taking advantage of market opportunities.

Forex trading course

You could teach yourself to trade using many online resources – drawback here is that it will take time, you will loose money, eventually loose interest and walk away from it.

You could make use of several training seminars and platforms where they give you some knowledge, always not all of the knowledge ( they want more of your hard-earned money first ) – drawback here is that it is in the actual putting together of this knowledge that will cost you time and money.

Johan will teach you a well researched, all-in-one strategy where you do not have to “pay-more-then-I-give-you-more” ( ask Johan about this research, you will be amazed )

I was and still am also pleasantly surprised by how Johan has revived the phrase “support afterwards”. Ask questions and get answers with explanations.

Thank you Johan.

Just a note to express my satisfaction with the training and on-going support you are providing me with.

The training course was well constructed and made very clear to a novice who has never traded before.

Your commitment to helping your students after the training could serve as a benchmark for the industry.

You have a thorough and in-depth knowledge of your subject which you convey in a very understandable manner.

I am convinced that the money I have spend on the training is money well spent.

Please keep up the good work.

Karenpark, Akasia, Gauteng

I came through your course two months ago.

I loved it, and your method is effective.

90% profit in 2 days!

(One week after training)

My progress has a lot to do with your great methods and the confidence that your training instilled in me.

Good morning Johan.

I’ve been trading in the past 2 to 3 weeks and have just started with the real money last week. So far I’ve managed to retain my capital and making little profits in both accounts (Demo and Real).

I’m confident that soon I’ll be stable and consistent in applying your trading methods very well. I find setting ‘stop losses(sl)’ and sometimes ‘taking profits(tp)’ lines very helpful soon after getting into a trade. I set my targets and limits for each trade and try to stick to them without getting too greedy and emotional. My only weakness at the moment is getting into trades late and getting out tool late but I’m busy working on it.

Once again, thank you very much. I’ve played around and I’m now convinced that the methods you taught me are without any doubt spot on. From now on my focus will be on growing my ‘real money’ account.

Dear Mr Johan van As

I hereby wish to thank you for the excellent training course you presented to me in December 2011.

I have been able to double my account size every month since I started with the trading 3 months ago.

Thank you very, very much.

I just want to express my heartfelt gratitude for your time and effort to pass the knowledge of trading forex successfully and with accuracy during my training with you.

For once, I understand why I place trades unlike before when I traded blindly. And just like you pointed out, now I can know what the market will do with a higher level of probability (even though this is still subject to other factors out of human control).

I have been demo trading from the 1st of November 2011 and have executed 38 trades, and 26 have been successful out of these trades. I must admit I broke some of the rules in some of those losses. Greed and fear of a loss being the main reason.

I am convinced beyond doubt that with your strategy and sticking to the rules I can make this a professional job and quit my daytime job. I am going live in January 2012 and I am confident now in myself more than ever before. I think anyone (Novice or Professional) should take your course. it will mark an unbelievable turning point in their lives; like it did for me.

Thank you and God bless you and your family.

Please feel free to use this as a recommendation for your training course.

With my best regards,

I really found your forex trading course most informative and helpful. What you taught me forms the basis of my trading now. Without your training, I would never have been able to trade with the success that I have had. What is more is the support which you have given me after the course: you have always taken the time to listen or explain to me, once I started trading on my own. That is worth a lot and therefore makes your course superior in value when compared to other courses offered which charge considerably more and give considerably less.

Your system really works. What I have found is that when I depart from your trading system, I have bad results. However, as soon as I go back to what you taught me, I find I have a much greater probability for success. Trading is difficult (something you continually reminded me of), but your course has given me the edge that I need to succeed as a trader.

Please feel free to use this letter as a recommendation to others considering your FX Masters course.

Thanks once again Johan,

9 profitable intraday trading strategies (that you can use right now)

Your probably thinking:

“How do I find intra-day trading strategies that actually work?”

And Are there some day trading rules that will help me to trade forex, commodities, stocks?
All you need to do is: set aside a few minutes of your day to tackle one of the following forex day trading strategies which I outline for you below.

The reality is this:

Few people are actually successfully day trading forex or other markets for a living,

That’s the uncomfortable fact of life that marketers don’t like to speak of! And those few people are most probably trading with other peoples money, like traders working for a bank or a hedge fund.

That means the stakes are not as high for them, as they are for a person trading their own capital.

That being said;

There are intra-day trading strategies beginners can use to maximise their chances to stay in the game for the long haul. These can be use in most markets like forex, commodities or stocks.

Because, ‘the long haul’ is where someone can turn their initial starting capital, into a retirement nest egg!

So, in this article I will show you everything you need to know to get started including:

    • Awesome forex day trading strategies that are used successfully every day.
    • The main chart patterns associated with these forex trading strategies.
    • Instructions for implementing the strategies.

Then I will tell you,

The simple truth is.
Learning to use and implement a basic intra-day trading strategies can cut your losses by 63% immediately and will increase your profitability chances in the long run.

MUST READ: Few Things About Risk Management Forex Trader Should Know

1.Momentum Reversal Trading Strategy

#1 The strategy seeks trading opportunities through the combination of fundamental and technical analysis.

#2 It requires a trader to analyse the fundamental aspects of the traded currency to establish mid to long term trend first. Then it uses the price momentum, support and a resistance zones to spot market reversals.

#3 The strategy allows to enter the market at low risk and provide a large profit potential through advanced money management.

#4 All trades are planned in advance to give a trader enough time to enter the market every time. Most trades are placed as pending limit orders often executed during London’s session.

#5 The strategy works well on all major US Dollar crosses. It generates between 1-5 signals per month. All trades are entered and held for anything up to several weeks depending on the price action and the market fundamentals.

#6 The strategy has been traded in live markets for the last 15 months and its performance is clearly documented in the performance section

The strategy uses a few indicators only:

  1. Stochastic Oscillator ( multi-time frame)
  2. Support and resistance
  3. Fibonacci retracements

After establishing your bias and long term trend through Commitments of Traders report, it’s time to switch to daily charts and look for a price reversal phase.

To define the price reversal you need to analyse the price on daily charts first and answer 3 simple questions:

  1. Has the market been clearly falling or rallying recently?
  2. Is the weekly and daily stochastic showing overbought or oversold levels on daily charts?
  3. Is the price trading around major support or resistance zones?

Example 1: USDJPY – Daily chart

Forex trading strategy

In the USDJPY chart above you can see four examples of the price being in a reversal phase.

Setup #1 on the chart
Weekly and daily stochastics are above 70 zone and the market has been in a substantial rally prior to that. A trader should be marking this zone as bearish and switching to intraday charts to seek a bearish reversal price pattern.

Setup #2 on the chart
Similar to setup #1, price, after a few days of rally, it came back up to an overbought stochastics zone ( above 70) and is now trading around a major resistance zone. A trader will be marking this area as bearish and switching to intraday charts to seek a bearish reversal price pattern.

Setup #3 on the chart
Once again, the momentum is now overbought and the price is forming a clear resistance. A trader will be marking this area as bearish and switching to intraday charts to seek a bearish reversal pattern.

Setup #4 on the chart
The price declined and reached a support at 117 area. The momentum is now oversold. A trader will be marking this area as bullish and switching to intraday charts to seek a bullish reversal price pattern.
The above setups will be attempted only in the direction of the trend established by the trader during a fundamental analysis. The fundamentals were pointing to the downside in USDJPY. The first 3 setups would be considered and the 4th would be either ignored or entered as a counter trend position with a lower lot size.

Fore more information CLICK HERE

2:The Moving average crossover strategy.

What is it?
Moving average indicators are standard within all trading platforms, the indicators can be set to the criteria that you prefer.
For this simple day trading strategy we need three moving average lines,

The 20 period line is our fast moving average, the 60 period is our slow moving average and the 100 period line is the trend indicator.
How do I trade with it?
This day trading strategy generates a BUY signal when the fast moving average ( or MA) crosses up over the slower moving average.

And a SELL signal is generated when the fast moving average crosses below the slow MA.

So you open a position when the MA lines cross in a one direction and you close the position when they cross back the opposite way.

How do you know if the price is beginning to trend?

Well, If the price bars stay consistently above or below the 100 period line then you know a strong price trend is in force and the trade should be left to run.

The settings above can be altered to shorter periods but it will generate more false signals and may be more of a hindrance than a help.

The settings I suggested will generate signals that will allow you to follow a trend if one begins without short price fluctuations violating the signal.
Forex trading strategy

On the chart above I have circled in green four separate signals that this moving average crossover system has generated on the EURUSD daily chart over the last six months.

On each of those occasions the system made 600, 200, 200 and 100 points respectively.

I have also shown in red where this trading technique has generated false signals, these periods where price is ranging rather than trending are when a signal will most likely turn out to be false.
The first false signal in the above example broke even, the next example lost 35 points.

Forex trading strategy

The above chart shows the first positive signal in detail, the fast MA crossed quickly down over the slow MA and the trend MA, generating the signal.
Notice how the price moved quickly away from the trend MA and stayed below it signifying a strong trend.
Forex trading strategy

The second false signal is shown above in detail, the signal was generated when the fast MA moved above the slow MA, only to reverse quickly and signal to close the position.

Although the system is not correct all the time, the above example was correct 6/12 or 50% of the time.
BUT.

We can immediately see how much more controlled and decisive trading becomes when a trading technique is used. There are no wild emotional rationalisation, every trade is based on a calculated reason.

3.Heikin-Ashi Trading Strategy

Heikin-Ashi chart looks like the candlestick chart but the method of calculation and plotting of the candles on the Heikin-Ashi chart is different from the candlestick chart. This is one of my favourite forex strategies out there.

In candlestick charts, each candlestick shows four different numbers: Open, Close, High and Low price. Heikin-Ashi candles are different and each candle is calculated and plotted using some information from the previous candle:

            1. Close price: Heikin-Ashi candle is the average of open, close, high and low price.
            2. Open price: Heikin-Ashi candle is the average of the open and close of the previous candle.
            3. High price: the high price in a Heikin-Ashi candle is chosen from one of the high, open and close price of which has the highest value.
            4. Low price: the high price in a Heikin-Ashi candle is chosen from one of the high, open and close price of which has the lowest value.

Heikin-Ashi candles are related to each other because the close and open price of each candle should be calculated using the previous candle close and open price and also the high and low price of each candle is affected by the previous candle.

Heikin-Ashi chart is slower than a candlestick chart and its signals are delayed (like when we use moving averages on our chart and trade according to them).

This could be an advantage in many cases of volatile price action.

This forex day trading strategy is very popular among traders for that particular reason.

It’s also very easy to recognise as trader needs to wait for the daily candle to close. Once new candle is populated, the previous one doesn’t re-paint.
You can access Heikin-Ashi indicator on every charting tool these days.
Lets see how a Heikin-Ashi chart looks like:

Forex trading strategy

How do I trade with it?

On the chart above; bullish candles are marked in green and bearish candles are marked in red.

The very simple strategy using Heikin-Ashi proven to be very powerful in back test and live trading.
The strategy combines Heikin-Ashi reversal pattern with one of the popular momentum indicators.

My favourite would be a simple Stochastic Oscillator with settings (14,7,3). The reversal pattern is valid if two of the candles (bearish or bullish) are fully completed on daily charts as per GBPJPY screenshot below.

Forex trading strategy

SHORT SETUP
Once the price prints two red consecutive candles after a series of green candles, the uptrend is exhausted and the reversal is likely. SHORT positions should be considered.

LONG SETUP
If the price prints two consecutive green candles, after a series of red candles, the downtrend is exhausted and the reversal is likely. LONG positions should be considered.

FILTERS
The raw candle formation is not enough to make this day trading strategy valuable. Trader needs other filters to weed out false signals and improve the performance.

MOMENTUM FILTER (Stochastic Oscillator 14,7,3)
We recommend to use a simple Stochastic Oscillator with settings 14,7,3.

I strongly advise you read Stochastic Oscillator guide first.

Once applied, it will show the overbought/oversold area and improve the probability of success.

Forex trading strategy

A Trader would now:
Enter long trade after two consecutive RED candles are completed and the Stochastic is above 70 mark
Enter short trade after two consecutive GREEN candles are completed and the Stochastic is below 30 mark.

STOP ORDER FILTER
To further improve the performance of this awesome day trading strategy,other filers might be used. I would recommend to place stop orders once the setup is in place.
In the long setup showed in the chart below, the trader would place a long stop order few pips above the high o the second Heinkin-Ashi reversal candle.
The same would apply to short setups, trader would place a sell stop order few pips below the low of the second reversal candle.

Forex trading strategy

Accelerator Oscillator filter

As another tool you could use the standard Accellarator Oscillator. This is pretty good indicator for daily charts. It re-paints sometimes, but mostly it tends to stay the same once printed. Every bar is populated at midnight. How to use it? After Heikin-Ashi candles are printed, confirm the reversal with Accellarator Oscillator.

For Long trades: If two consecutive GREEN candles are printed, wait for the AC to print the green bar above the 0 line on the daily charts

For Short trades; If two consecutive RED candles are printed, wait for the AC to print the red bar above the 0 line on the daily charts

Forex trading strategy

The reversal pattern is valid if two of the candles (bearish or bullish) are fully completed on daily charts as per GBPJPY screenshot below. Don’t enter the market straight after a volatile price swing to one direction. It important to consider fundamental news in the market. I would advise to avoid days like:

            1. Move position to break even after 50 pips in profit.
            2. Move stop loss at the major local lows and highs or if the opposite signal is generated. Let your winners run.
            3. Stop loss 100 pips flat or use local technical levels to set stop losses.
            4. Every trader is advised to implement their own money management rules.

Strategy examples and screenshots

Strategy doesn’t generate much setups, but when it does, they are usually important market tops or bottoms. See some sample trade setups before and after.

To get the ready MT4 templates for the setups below please CLICK HERE TO DOWNLOAD

You can then unzip it and place them in your MT4 and have the below charts ready

Date: 22 May 2013

Trade: Long
Price in: 1.2922
Price out: 1.3215
Result: +300
Forex trading strategy

Date: 21 June 2013

Trade: Short
Price in: 1.3686
Price out: 1.3505
Result: +170
Forex trading strategy

4. The swing forex day trading strategy.

Swing day trading strategy is all about vigilance!
The trader needs to be on guard to notice a correction in a trend and then be ready to catch the ‘swing’ out of the correction and back into the trend.

“And what’s a correction?” I hear you ask.
Simple. Corrections involve overlap of price bars or candles, lots and lots of overlap!
A trending price makes progress quickly, corrections don’t.
Lets look at some charts for an example.

Forex trading strategy

Take the above chart, EURUSD at 240 minute candles, within the green circle we have 26 candles where the price stayed within a 100 point range.

How do I trade with it?
As I have marked with the blue lines the price even contracted to a daily move of only 20 points!
A swing trader would be on HIGH ALERT here! Contracting price, lots and lots of overlap.
This presented a very high probability that the price was going to continue in the trend that had started the previous week.
The trade would involve selling when the first candle moved below the contracting range of the previous few candles, A stop could be placed at the most recent minor swing high. ( Orange Arrows )
Another example of a swing trade is shown in the chart below.

Forex trading strategy

Again we are working on the EURUSD 240 minute chart.

In green we can see a correction to the downside, notice the slowing downside momentum?

Notice all the overlapping price candles?

The entry point in this trade would be a little harder to execute, although the principle is the same.
We want to wait for the price to show a sign of reversal, at the end of the correction, two separate candles moved above the upper blue line.

This showed that the price was now gearing up for reversal.

A trader would buy the open of the following candle and place a stop at the lowest point of the correction.
The risk here was about 30 points, the gain was about 600 if you managed to ride it all the way up!
Swing trading is a little more nuanced than the crossover technique, but still has plenty to offer in terms of money management and trade entry signals.

5.Candlestick patterns.

MUST READ: Candlestick patterns – 21 easy patterns ( and what they mean )

Bullish engulfing pattern.

Forex trading strategy

What is it?
Engulfing patterns happen when the real body of a price candle covers or engulfs the real body of one or more of the preceding candles.
The more candles that the engulfing candle covers the more powerful the following move will likely be.
There are two types. Bullish and bearish.
The bullish engulfing pattern signals a bullish rise ahead and the opposite is true for the bearish engulfing candle.
In the above chart I have circled the bullish engulfing candles which led to price rises immediately after.

How do I trade it?
Well, the bullish engulfing pattern is a precursor to a large upward move.
So, when you see an the engulfing candle taking shape you should wait for the following candle and then open your position.
Your stop should be placed at the low of the engulfing candle.

Bearish engulfing pattern.

Forex trading strategy

What is it?
The bearish engulfing pattern signals a bearish price decline ahead.
In the above chart I have circled the bearish engulfing candles which led to price declines immediately after.
Again, the more candles that the engulfing candle covers the more powerful the following move will likely be.

How do I trade it?
It is the same principle as the bullish pattern, just the flip side of the coin!
The bearish engulfing pattern is also a precursor to a large decline.
So, when you see an the engulfing candle taking shape you should wait for the following candle and then open your position.
Your stop should be placed at the high of the engulfing candle.

Forex trading strategy

What is it?
The ‘long shadow refers to the length of the line from the closing price on a candle to the high or low price of that particular candle.
The ‘shadow’ should be at least twice the length of the real body of the candle.
These shadows tend to occur at turning points.
And they tend to lead to large price moves!
How do I trade it?
As with the rest of the candle stick patterns, we wait for the long shadow candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the shadow candle and trailed to follow the trend.

Forex trading strategy

What is it?
A candle forms a ‘hammer’ when the real body of the candle sits at one end of the candle leaving a head and handle!
Again these candles tend to form at price reversals giving a strong signal for traders.

How do I trade it?
Its the same trick!
We wait for the long hammer candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the hammer candle.
and again trailed to follow the trend.

6.Support and Resistance

Role Reversal Day Trading Strategy

To start I needs to assume that you know what is the support and Resistance in Forex trading. If not see few simple definitions and examples below.
Support and Resistance are psychological levels which price has difficulties to break. Many reversals of trend will occur on these levels.

The harder for price to cross a certain level, the stronger it is and the profitability of our trades will increase. The most basic form of Support and Resistance is horizontal. Many traders watch those levels on every day basis and many orders are often accumulated around support or resistance areas.
It important to mention, support and resistance is NOT an exact price but rather a ZONE. Many novice traders treat the support and resistance as an exact price, which they are not. Trader must think of support and resistance as a ZONE or AREA.

Forex trading strategy

Forex trading strategy

These levels are probably the most important concepts in technical analysis. They are a core of most professional day trading strategies out there.
How do I trade with it?
Let me introduce you to the “Role Reversal”. Let’s see how can you use it in your every day’s trading.
Role Reversal is a simple and powerful idea of support becoming a resistance (in the downtrend) and the resistance becoming a support (in the uptrend).
Let see how this plays out in the uptrend.
Once the price is making higher highs and higher lows we call it uptrend. Technical trader must assume the price is going to go up forever and only long trades should be considered. Once the uptrend is defined, the lowest strategy to trade is – buy on pullbacks.

As per definition of an uptrend, the price punching through the resistance and pullback before it makes another higher high.
“Role reversal” concept comes handy for bulls in this scenario.

Forex trading strategy

Forex trading strategy

Once the resistance is broken to the upside, it becomes a new support level.

Resistance changes its role to support, hence the name “Role Reversal”.
After making a new higher high, the price in uptrend must correct. It is likely to correct to the new support level. This can present an excellent buying opportunity for bulls.
We don’t know where exactly price will resume an uptrend. Risk management must be applied.
Trader must remember to treat support and resistance levels as ZONES rather than exact price.

The same principle applies to downtrends.

If the market is in downtrend, the price will punch through supports making new lower lows. The broken support becomes new resistance and offers opportunity for short positions.

Forex trading strategy

Sometimes the price will pull back a bit further than just the former support or resistance. It might retrace toward other important technical levels.

I like to combine pure price action with other major, widely used leading indicators. My favourite would be: Pivot Points and Fibonacci retracements. After many years of using these tools, I can say with confidence, they are pretty accurate.

The popularity of these tools makes them so responsive.

You could also establish few levels of entries for example:

If you are looking to buy the market after the price made fresh high, you would be waiting for the price to retrace towards role reversal, Fibonacci Level or moving average. As you are pretty confident, the price is moving higher, you don’t know how far the price will pullback.

If it’s an aggressive day, the price can only come back to 20MA and shoot for new high again. Another day, the price can dip as far as 38% Fib retracement.

You can divide you position into 3 equal parts and set limit orders based on the logic above:
1/3 at 20MA, 1/3 at role reversal, 1/3 at 50% Fib retracement. This way you lower the risk and increase the odds of getting filled.

7. The Bollinger band squeeze strategy.

Forex trading strategy

Bollinger bands are a measurement of the volatility of price above and below the simple moving average.

John Bollinger noted that periods of low volatility are followed by periods of high volatility, so when we notice the Bollinger bands ‘squeeze’ in towards each other, we can infer that a significant price movement may be on the cards soon.

So, the Bollinger band squeeze trading strategy aims to take advantage of price movements after periods of low volatility.

I urge you to read: Bollinger bands ( the COMPLETE how-to guide! )

The above chart is the EURUSD 240 minute chart.
The Bollinger band indicator should be set to 20 periods and 2 standard deviations and the Bollinger band width indicator should be switched on.
When trading using this strategy, we are looking for contraction in the bands along with periods when the Bollinger band width is approaching 0.0100 or about 100 points.

How do I trade it?
When all the conditions are in place, it signifies a significant price move is ahead as indicated within the green circles above.
A BUY signal is generated when a full candle completes above the simple moving average line.
And.

A SELL signal is generated when a full candle completes below the simple moving average line.
Stops should be placed at the high or low of the preceding candle, or, to allow for a maximum loss of 3% of your trading capital, whichever is the smaller.

8. The Narrow Range Strategy.

The narrow range strategy is a very short term trading strategy. The strategy is similar to the Bollinger band strategy in that it aims to profit from a change in volatility from low to high.
It is based on identifying the candle of the narrowest range of the past 4 or 7 days.

Forex trading strategy

A suitable candle would consist of a ‘ Chubby’ look with an opening and closing prices close to the days high and low as shown in the chart below.
Quite often you will find two or more narrow candles together this only serves to contract the volatility and will often lead to an even larger breakout of the range to come.

Forex trading strategy

HOW do I trade it?
Once a narrow candle is identified we can be reasonably sure that a volatility spike will be close at hand.

            • A BUY signal is generated when the price moves above the high of the narrow candle.
            • A SELL signal is generated when the price moves below the low of the narrow range candle.

Your stop is placed at the low or high of the Narrow candle and trailed to suit.

9. The 2 period RSI strategy.

Forex trading strategy

This strategy is pretty simple really.

In general this is a very aggressive short term strategy as you can see by the amount of signals that are generated in the chart shown.

As such this aggressiveness will be caught out by a ranging market and may lead to several losing trades in a row.

The aggressive nature of the strategy should be matched with an equally rigorous stop loss regime.
The merits of the system shine when the market begins to trend in a particular direction. In this case Extra BUY or SELL triggers can be used to add to positions.
Those positions should be closed when an opposing signal is generated.

As in the chart above, when the RSI moved above 90 the first BUY signal was generated and the first position was opened, the RSI then triggered another BUY signal and another similar position was opened.
Both trades were then closed when the RSI moved back below 10.

In the End!

Day trading, and trading in general is not a past-time! Trading is not something that you dip your toes into now and again.
Day trading is hard work, time consuming and frustrating at the best of times! It is no wonder that over 93% of people that try it, lose money and give up!

“the excuse doesn’t matter; the cold hard number is that only about 4.5% of traders who start day trading will end up being able to make something of it.”

BUT, by recognizing the difficulty and learning some basic trading strategies you can avoid the pitfalls that most new traders fall into!

The honest truth of the matter is this, most new traders get involved because they see huge profits straight ahead by simply clicking BUY.
Believing they will wake up the next morning a newly minted millionaire! What actually happens goes more like this.
Your friend has just opened a trading account, he claims to have made a hundred dollars in ten minutes, he just sold the EURUSD because the U.S economy is so great right now, it said so on TV!
So you go home, lodge a $1000 into a trading account, SELL the EURUSD at $5/ point.
You wake up the next day and the market has moved against you by 200 points, and your account is wiped out!
Lets look at the facts. There are three main reasons behind the high failure rate of new traders, and you can avoid them easily!

As in the story I told above, trading based on hearsay or some popular narrative will lead you to almost certain doom!
The value of using a tried and tested trading technique is immense, and will save you from loosing your hard earned savings.

By using a day trading strategy, you remove the emotional element from the trading decision.
A trading strategy requires a number of elements to be in place before trading.
So, when those elements are in place, you place the trade.
It is a binary decision rather than an emotional decision. All other actions are off the table, by following a trading technique you avoid the cardinal sin of trading, that is, over trading.

So often new traders place a trade without even placing a stop loss position! An error which can lead to catastrophic losses.
Money management can be as simple as using the 3 / 1000 rule.
That is: never ever ever ever risk more than 3% of your capital on any trade.
And never risk more than 1000 th (or as close to) of your capital per point.
Now, I’ve given you the tools, so get to it, and start trading profitably!

Please let me know, which intraday trading strategy is your favourite in the comment section below. I will expand of the most popular ones.

Forex trading strategy

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  • Forex trading strategy

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  • Forex for Dummies

    Published: October 17, 2016

    Currency trading for dummiesThere is no doubt about it – Foreign exchange trading, or forex, has garnered enormous popularity in the last decade, as droves of newcomers have crossed over from stocks and other investments to test their skills with the currencies of the world.

    And why not? Forex is our largest and most liquid market, over $4 trillion in daily turnover, a market that can resist even the vainest attempt to manipulate it. For this reason alone, currencies are deemed to be our purest form of trading, but winning in this arena is not nearly as easy as marketing claims would have you believe.

    Yes, access is easy. Sophisticated trading platforms make it appear easy, and markets are open for nearly six days, non-stop, a week. You can trade from your desk, the backseat of your car, from down at Starbucks, or even from your hot tub, if you are so inclined. There are, however, no shortcuts. You must invest the time up front to reap dividends down the road.

    Knowledge, experience, and emotional control are the same factors for success in this genre, but it helps to get guidance from mentoring professionals, if you have any desire of jumping into the fray after a short period of time. You need to be aware, unfortunately, that nearly 70% of beginners become impatient early on and leap into the market before completing anything close to preparation. They become quick casualties, as a result.

    At , we do not wish this fate on anyone, but we do understand the desire to get active quickly. There are ways to do it, and we will show you one path in what we have called “ – Everything You Need to Know about Forex to Start Trading Quickly”. The objective here is to give you an initial pathway upon which you can build a steady foundation over time.

    Experience can only be gained by doing it. Free demo systems were designed by forex brokers for this very purpose, but the real market will beckon soon enough. Get a list of forex brokers offering free demo accounts. The next few pages will arm you with key tools and a strategy for winning from Day One. What you decide to do after this lesson is up to you, but at least you will have a greater chance of stepping over the 70% of fatalities that refuse to face facts.

    All Articles

    Currency trading for dummies

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    Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. Please read our legal disclaimer.Copyright © 2017 . All Rights Reserved

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    Non-Farm Payroll Forex Strategy

    TABLE OF CONTENTS:

    The Non Farm Payroll is the most significant data in the US. usually published the first Friday of each month. at 8:30 am EST. it is a major economic indicator that measures the employment situation on the USA. A strong non farm payroll number means a solid. growing and abundant economy. On the other side. a weak number is synonym of slowing economy. It is always compared with the previous month data (added or losing jobs except the farm industry ) between +10.000 et +250.000. The FOMC based their monetary policies decisions on the results of NFP Reports. In the Forex market. the NFP is a great volatility maker. not only in forex markets but also in stocks and bonds. (see Non-farm payroll dates here )

    In this article. we will project the lights on 2 trading NFP strategies. that works and provide best results .

    The first one on the day of reports using 5 minutes daily chart and the Second one at the end of monday (next NFP) using the daily chart .

    1 – Friday Trading Strategy (the NFP Release):

    The rule :
    At the opening of Market US Session. take a look at the first 8:30 bar. you should wait for the next bar going below the low of the 8:30 Bar. or above the high of 8:30 bar. this bar becomes our valid Bar. then you should place a sell stop 15 Pips above the high of this bar and 15 Pips below the low oh this bar. the trade must be executed the same day. Use always the Parabolic SAR or MACD to predict direction moves .

    The figures below shows how it works :

    Forex strategy

    The beauty of this strategy is that you have always on the other side a sell stop or buy stop. even if the price take the other side of the trade. you can close the position with the use of PSAR and MACD. and the other trade will be executed. This strategy gives best results in trending markets, and this is the case in NFP Release .

    2 – End of Monday (following the NFP) Trading Strategy :

    The Rules :
    At the end of monday following the NFP. you take a monday high by looking at the daily chart. and Place a Buy Stop (15 Pips ) above and Sell Stop order below the monday low (15 Pips ) on tuesday US opening session. The trend takes usually for a week. This position must
    be closed at the end of the week on Friday .

    Forex strategy

    (13 votes, average: 4.23 out of 5)

    Forex for beginners

    How to Trade Forex for Beginners

    With the improvement of technology in the late 20th century, the world of forex trading opened up to the internet. By 2004, forex had developed into a $1.9 trillion a day market. As of 2016, the daily volume surpassed $5 trillion a day! Gaining access to the markets is relatively easy. The creation of the Internet made it possible to trade currencies anywhere in the world with internet access, 24 hours a day five days a week.

    When beginning one’s forex journey, you’ll likely come across two methods of trading: technical analysis and fundamental analysis. Technical analysis . the more popular of the two approaches, is effectively the study of price movement on a chart. Fundamental analysis . however, looks at the underlying economic conditions of an economy, focusing on statistical reports and macroeconomic indicators.

    Fundamental analysis helps answer the question WHY a market is moving in a particular direction. For example: is the currency pair rallying due to the Federal Reserve (more commonly known as ‘the Fed’) expected to hike rates in the near future, or is the move fuelled by a country’s political stance? Knowing what causes markets to move helps one pin down market direction in the future.

    Technical analysis typically helps define WHEN to trade. For example, assuming that we know the underlying fundamentals are pointing to a rally in the dollar, but technical price action remains trading at the underside of a strong resistance (which essentially means a level in the market that price has trouble breaking beyond), this may not be the best time to buy the currency. However, once the resistance is broken, a buy trade could be taken as we now have both technical and fundamental cues signalling that the dollar is likely to strengthen. Learning both methods is highly recommended!

    Terminology:

    Doctors, lawyers and engineers all use specialized language related to the profession. Why should trading be any different? Knowing how to communicate is essential! Fortunately, the forex market’s terminology is not all that complex. For those completely new to forex, please check out our ‘what is forex trading ’ article before continuing as we touched on some very significant market jargon like what a pip is and how to recognize this in a currency quotation, what spread means and how it affects us traders and also what leverage is.

    While gaining access to this huge marketplace takes less than a few clicks, trading has proven especially tough for beginner traders. They often come to the markets with unrealistic expectations. This business, despite what some gurus claim, is not a get-rich-quick-scheme. And, unless treated like a business, your trading career will likely be a short-lived one.

    Helpful Tips:

    Here are a few tips to keep you on the right track in the earlier stages of your journey:

    Rather than thinking short term, try and think long term. Don’t fall victim to the ‘I want to be a millionaire next month’ camp.

    Don’t rush! How long does it take the average doctor to become medically qualified? Several years! Why would trading be any different? How many businessmen/women do you know that started a business with little to no knowledge and have stayed in the game? Not many, that’s for sure!

    Journal your progress. Learn from your mistakes. This is crucial. Without a journal, the learning curve will likely be a long process that may end up with you throwing in the towel.

    Despite hearing of traders winning 80% of the time, and there are some that do, don’t get us wrong, you don’t have to win 80% of your trades to profit. You don’t even need to win 50% of the time. If we were to present a trading method to you that won only 4 trades out of ten, you may respond with a rather confused look upon your face. However, what if we then said that on those winning trades, the average gain was two times your risk, now would you be interested? Think about it like this, we risk $200 each trade. So, on each winning trade we net $400. Multiply this by 4 and we have $1600. Taking out the the 6 losses ($200 * 6) which equates to $1200, we’re left with a profit of $400 from these ten trades.

    While this is an article for beginners, we feel it is necessary to touch on how a trader sizes (calculates) their position. This is EXTREMELY important. As traders, before anything else we are effectively risk managers. Get this part wrong, and it could have dire consequences for your account and effectively leverage your position to reckless levels.

    Correct position sizing allows the trader to select how much risk is placed on each trade. To calculate a position’s risk one needs the following data: account equity. the pip value for the pair you’re intending to trade, the stop-loss pip distance and the percentage of your account equity that you’re willing to risk. Furthermore, Standard lots, Mini lots and micro lots are what we generally use to calculate a trading position. 1 standard lot equates to 100,000 units, whereas a mini lot represents 10,000 units and a micro lot comes in at 1,000 units.

    By way of example, let’s say trader A has an account balance of $10,000. On average that trader risks about 25 pips each trade on the EUR/USD pair. So, in this case, the account denomination is the same as the quote, or counter currency. Trader A has chosen to risk 2% of his account equity per trade. Firstly, we’ll need to calculate the dollar amount: $10,000/100 = 100 * 2 = $200. Following this, we divide the amount of equity risked by the stop-loss distance in pips: $200/25 = $8 per pip. Once we’ve completed this, the trader must locate the pip value of the EUR/USD. 1 standard lot equals $10 per pip, a mini lot equates to $1 per pip and a micro lot represents $0.10 per pip. As such, using 1 standard lot here would put the trader in at a higher risk bracket of $250 ($10 per pip * 25 pip stop loss = $250). Given this, we could simply size the position using 8 micro lots since they equate to a $1 pip movement ($1 per pip [1 micro lot] * 8 = $8 per pip * 25 pips = $200). There are additional steps involved when your account currency is different from the counter currency. However, for ease, one can simply use a position sizing calculator. It’s time efficient, easy to use and less taxing on the brain!

    Keep risk parameters to within a 1-2% risk bracket. We know that it may be tempting to risk more but this is a dangerous play, in our humble opinion.

    Don’t overtrade. Focus on only a few pairs to begin with.

    Trade using a demo account first. This will allow one to become familiar with the platform features. Why not consider opening a demo account here: Open a Demo Account and get a feel for the market without risking capital. The next question that usually arises is, how long should one stay on demo? Well, there is no one right answer here, we’re afraid. While a demo account is beneficial for the learning process, to trade the markets successfully one needs to fully appreciate the psychology behind trading. Therefore, once fully comfortable with the trading platform features, trading a small live account could be the next step forward, assuming you have a back-tested method with a clear-cut trading plan that is! With IC markets, you can open an account with as little as $200 (Open Live Account ). That way, making your very first need not break the bank should you make a mistake.

    Ex-dividends 16.02.2017 Wednesday 15th February: European Open Briefing

    IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.

    How to Use Alligator Indicator in Forex Strategies

    Forex strategies

    The Alligator indicator is a great Forex trading tool that has been fascinating traders for a long time. While not a moving average. riding trends is its main quality. This article shows how to use Alligator indicator in Forex in a profitable trading way.

    Having a funny name, the indicator shows the power of bulls or bears to reverse a trend. It adapts most to a trending strategy, but it’s famous for calling reversals too. For this reason, the indicator is popular among Forex traders, trend followers or contrarians.

    This is one of Bill Williams famous indicators. Together with Fractal, Gator or the Awesome oscillator, the Alligator Forex strategy is unique in every way. It is part of a special group of indicators. Trading platforms, MetaTrader included, offer the Bill Williams indicators separate from classical trend indicators or oscillators.

    All traders face a dilemma: to use trend indicators or oscillators for their analysis? There’s no right or wrong answer to this, as both have pros and cons. However, one can use both.

    Either as part of an individual trading system or not, the Alligator indicator shows the right side of the market. Traders use it to find a bullish or bearish market, support or resistance levels, confluence areas, etc.

    The indicator has a funny name: it comes from the head of an alligator. Part of it, there are three averages. Each average has a name related to an alligator’s mouth parts: jaws, teeth, and lips.

    A trading system based on moving averages plots multiple averages on a chart. The same here. Any Forex Alligator strategy contains three averages, with the above names. Any average has a period that relates to. For the Alligator, these are the 13, 8 and 5 periods for jaws, teeth, and lips, respectively.

    Forex strategies

    All three averages combine the power of the Alligator indicator. One can choose the average type (smoothed, simple, exponential, linear weighted) and the price to apply it to. Either closing or opening price, a median one or not, multiple settings exist.

    Forex strategies

    What makes this indicator unique is the ability to shift the averages. In fact, with the default settings, the averages shift, leaving a bit of room from current price until the Alligator Forex indicator.

    Applying the Alligator on a Chart

    We will use the MetaTrader trading platform to show how to apply it on a chart. However, any trading platform offers it, so the principle is the same. From the Insert/Indicators/Bill Williams path, choose the Alligator indicator.

    The result is a pop-up window like the one above giving you customized possibilities. To use it like Bill Williams intended, just leave it with the default settings. Anything is editable, though: colors, levels, etc.

    The three averages plotted on the chart reflect the time frame you use. If the Williams Alligator indicator is set on the daily chart, the jaws consider 13 days, teeth 8 and lips 5, respectively.

    Forex strategies

    The jaws line comes in blue, teeth in red and lips in lime, but this is just a setting. You can change/edit the indicator in any way you like, as long you’re using it properly. For that, the following information is crucial.

    Alligator Indicator Standard Interpretation

    When using it, think of a system that follows price. No matter where the price goes, the Alligator goes. These averages closely follow price and keep traders on the trend. Because of that, missing a trend is virtually impossible.

    The classical way to use it is to look for “the perfect order”. The three elements should NOT cross. When doing that, the perfect order forms. Moreover, this signals a strong trend. We all know the “trend is your friend” saying. Hence, you don’t want to fade the perfect order. The bigger the time frame, the stronger the trend. What can go wrong?

    Many things can. Firstly, price moves aggressively below the green line (lips). This is not scary if it is the first attempt. The more the price tries, the weaker the trend becomes.

    In a bullish trend, it shows bulls lose steam. Also, they might become wannabe bears. Trading with Forex Alligator indicator gives two choices: follow the trend and spot the reversal.

    Secondly, look for the perfect order to break. This is a bearish sign in a bullish trend. You don’t want to fade this move if you care about your trade.

    In short, trading with the Alligator indicator is easy. Stay long when the price is above it, and short when is below. The perfect order is a plus.

    The perfect order is just one Alligator indicator strategy. It mainly deals with spotting the right trend. And stick to it. However, Bill Williams designed it for other purposes too. Keep in mind that it shifts the averages further in time.

    This shifting allows for greater flexibility. In a way, it resembles the Ichimoku Cloud. Traders familiar with cloud strategies know the cloud, or “kumo” is shifted. That is, on the right side of the chart, obviously! Therefore, future support and resistance levels appear at present time.

    With the cloud, the price is in a state of equilibrium. It finds a balance between historical and future levels. Those shift backward and forward twenty-six periods. Hence, shifting is not a new concept. Bill Williams sensed its power and used it with the Alligator indicator.

    Dynamic Support and Resistance with the Alligator Indicator

    A wonderful Alligator indicator trading system deals with support and resistance levels. Moreover, levels are NOT horizontal. You see, traders make a fatal mistake. They believe support and resistance can only be horizontal.

    While this happens most of the times, there’s more to it. How about dynamic levels? As a rule of thumb, dynamic support and resistance move along with the price. Therefore, they offer more value.

    The three lines that make the Alligator Forex indicator (jaws, teeth, and lips) do exactly that. They follow the price. If the price rises, the three lines follow. If the price falls, they fall too. The bigger the distance between the lines, the stronger the support and resistance area. The bigger the time frame, the more difficult for the price to break through.

    In this way, the area between the first line (the green one – lips) and the last one (the blue one – jaws) is dynamic support or resistance. For example, in a bullish trend, it shows support.

    Forex strategies

    The chart above is the EUR/USD hourly time frame in a bullish trend. Note the Alligator indicator MT4 support on it. It starts from the green line and ends with the blue line. The lips offer weak support. If bears push stronger, they might reach the teeth. Jaws represent the final support. Any move beyond and bulls end up in the Alligator’s stomach.

    Trading is fun if a logical approach governs it. Decisions to buy or sell should come at support or resistance. For this reason, the Alligator indicator formula is a great tool for traders.

    Trend Reversals with the Alligator

    Because the Alligator technical indicator shows a trend, it doesn’t mean reversals miss when analyzing the market. In fact, they go hand in hand.

    First, one needs to look for a reversal pattern. This can be a double top or bottom, a head and shoulders pattern, or a triangle. Or, it can be one of the Japanese candlestick techniques. The Japanese were masters in spotting reversals. As such, most of their techniques deal with trend reversal approaches.

    After a possible trend reversal pattern appears, don’t go long or short. Use the Alligator indicator Forex platforms provide as confirmation. After all, you don’t want to get caught in a fake pattern.

    What is the confirmation then? This is very simple: wait for the lips (Alligator’s green line) to cross above the other two “sister lines”. The result is one of the best approaches of how to use the Alligator indicator in Forex.

    Especially relevant is this system when used with a Japanese candlestick pattern technique. The above chart shows a morning star pattern on the hourly EUR/USD chart. Because it follows a bearish trend, it’s a bullish reversal pattern. Moreover, a morning star is, perhaps, the most powerful bullish reversal patterns ever!

    But we don’t have to go blindly in a trade. Confirmation protects a trading account. Hence, look for trend reversal’s confirmation. The Alligator Forex indicator is the perfect tool for that.

    Probably as important as the reversal pattern is its confirmation. Without it, traders end up going long, in this case, only to find out that market comes for their stop. There’s nothing more frustrating than that.

    Look for Fake Crosses

    Another great Alligator Forex trading system consists of interpreting the crosses. That means, the crosses between the three lines that make the indicator. They can’t be all correct, right? How about spotting the fake ones?

    A typical approach is to use the faster average (the green line) for spotting fake crosses. Therefore, eyes on the green and red lines, please! When the green line crosses the red one and then turns again without reaching the blue line, a fake move just forms.

    Hence, in a bullish trend, go long on such a cross. Or, in a bearish trend. go short when the perfect order gets back in place. Trading doesn’t have to be complicated. Keep things simple and logical and profits will come to you.

    Forex strategies

    One example of a bearish cross in the chart above shows plenty of further downside potential. The fake cross was nothing but an opportunity to use the Alligator Forex platforms offer. And there are more of them.

    A similar fake cross is possible between the bigger averages: the blue and the red lines. In fact, such a cross is more powerful. It is only normal, as the two lines consider more periods before plotting an actual value.

    The time frame matters here too. Not for the actual cross, but for setting the right take-profit level. When a signal as described here appears, consider the time frame before setting the take-profit level.

    If you use the five-minute chart and a fake cross signal appears, don’t set a hundred pips take-profit level. Do that if the signal comes from the daily chart, for example. This way, you adjust your expectations with the time frame used. While it seems logic, most traders fail to recognize the time frame’s importance.

    Use Different Crosses

    Probably you’re familiar with the golden and death crosses concept. It calls for two big moving averages crossing. When the fast one moves above the slow one, a golden cross forms. This is bullish. When a death cross appears, the opposite is true. Bears are in control.

    This Alligator indicator trading system offers a similar interpretation. The secret is to use the bigger averages in the same way. Therefore, use the red and blue lines as the faster and slower averages. Just like in the case of a golden or death cross.

    A cross like this shows you the type of the market: bullish or bearish. Of course, in a bullish market, we want to buy. In a bearish market, shorting a Forex pair works best.

    Furthermore, use the green line of the Alligator indicator as a confirmation. If the golden cross, for example, forms and the lines are in perfect order you’re good to go long. If not, Think twice. The opposite is true when a death cross forms.

    The EUR/USD chart below shows two crosses. One bearish and one bullish. Both are great signals to take with the Forex Alligator indicator. Again, simple things work best in technical analysis.

    Forex strategies

    Make the Most of the Shifting Attributes

    Just like a displaced moving average shifts on the right side of a chart, the Alligator indicator does that too. This is a powerful tool in the hands of Forex traders. Being able to predict FUTURE support/resistance levels is valuable information.

    Stop for a minute and think of how this indicator functions. The lips, teeth, and jaws appear on a chart on the right side of the actual price. However, this is obvious only if you look at the current price. If you look back in time, you’re missing the point if don’t know how the Alligator technical indicator works.

    Let’s assume you plot the indicator on a daily chart. The currency pair is irrelevant. Before backtesting a strategy, take a look at the current price. You’ll see the blue line (jaws) standing 8 periods on the current price’s right side. That is the support level eight days from now! The same with the other two lines: five days for the teeth and three days for the lips

    This is very important as traders forget this small detail. When backtesting, the entry signal is EARLIER than the respective candle. Depending on the line that gives the signal, it is three, five or eight periods earlier. Or candles.

    Such a small detail may or may not change the entry. However, it brings a whole new perspective to trading with any Alligator indicator strategy. If your entry place considers the Alligator, you must shift it earlier with the corresponding value.

    The same thing happens with displaced moving averages. If you test a strategy back in time and don’t consider the shift, the results are subject to interpretation.

    And now you have the wonderful opportunity to see the Alligator indicator in action. Below you will find a video example of the Forex Alligator in action. I opened a short trade with the AUD/USD Forex pair that grew bigger than I expected. I was aiming for a trade of few hours. However, the Alligator gave no indications that the trend will stop and I held the trade for 30+ hours. Bottom line, the trade generated pure profit of 1.18%.

    Simply enter your details, hit “Play” and you will be able to see the Alligator trading video for FREE!

    This is how powerful the Alligator indicator could be. Confirming trending moves with the Alligator could put you in a trend that might exceed your expectation.

    The Alligator indicator shows a trending environment. This is the main characteristic. However, one can use moving averages instead and have the same result. A displaced moving average has even the shifting attributes incorporated.

    Still, the Alligator indicator formula is unique in every way. Above all, it’s a system, not an indicator. It has multiple uses, not only one. And, it has one great advantage: it’s visible.

    This means traders cannot go wrong if respecting what the Alligator Forex trading system. Both trend-following strategies and reversal ones perform better when the Alligator indicator validates an entry. Furthermore, the indicator tells much about the strength of a support or resistance level. You’ll know from the start if the support or resistance has a chance to hold or not.

    Therefore, you’ll know if it is worth buying the dip/selling the spike or not. Again, the bigger the distance between the three lines, the stronger the dynamic support or resistance level is.

    This is not the only indicator Bill Williams is famous for. There are plenty more. However, it has a big advantage: it doesn’t repaint. When an indicator repaints, its values change together with future prices.

    For example, the Fractals indicator disappears from the screen when price invalidates it. This is repainting. Not that is not useful, but it’s misleading. With the Alligator indicator, there’s no such thing.

    The few trading strategies listed here meant to show the flexibility of the Alligator indicator formula. One can edit it or keep it as is, the outcome is the same: great trades result from its correct interpretation.

    To sum up, this article shows how to use the Alligator indicator in the best possible ways. Probably the most powerful tool ever developed by Bill Williams, the Alligator indicator offers great value.

    What are you waiting for?

    GET STARTED WITH THE FOREX TRADING ACADEMY

    Forex strategies

    Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among 500 other traders. He was awarded a cup and a certificate at an official ceremony in his university.

    Forex strategies Live Trading Example – Forex Alligator Indicator Trading System

    • May 5, 2017
    • by Damyan Diamandev
    • in Alligator Indicator. Forex indicators. Technical Analysis. Volume Indicator

    Best Moving Average Strategies for Day Trading in Forex

    • April 28, 2017
    • by Damyan Diamandev
    • in displaced moving average. exponential moving average. Forex indicators. Moving Average. Simple Moving Average. super smoother. Technical Analysis. volume weighted moving average

    FOREX FOR AMBITIOUS BEGINNERS

    5 Forex Beginner Tips That Will Save You Money

    Forex for beginners

    The 5 forex trading tips listed below are mentioned throughout this book. That’s because even though they can’t guarantee success ― nothing ever can, otherwise everybody would be successful ― they can save you a lot of money. Experience shows that many beginning forex traders bleed money mainly because they fail to follow the next five principles:

    Forex Beginner Tip 1. Money Management

    Rule number 1 for every forex trader is to survive. Every trader has losing trades, but when you go broke you can put yourself in a position where you can no longer have winning trades. Therefore, before everytying else you have to make sure you stay in the game.

    Many beginning and/or consistently losing traders focus exclusively on having a profitable trading strategy. But even though a good trading strategy is definitely important, using solid money management and having a rational, disciplined trading attitude will get you further at the end of the day.

    Two rules of thumb for good money management are not to risk more than 3% of your trading capital per trade and making sure you have enough trading capital for at least 40 trades when you are a beginner.

    Forex Beginner Tip 2. Always use a stop loss

    The stop loss is perhaps the most powerful weapon in your arsenal as a forex trader, just as the most powerful weapon of the professional poker player is the fold (if that means anything to you). The stop loss allows you to predetermine your risk down to the pip, therefore ALWAYS use it!

    There are really only advantages to putting in a stop loss. It forces you to think about when the trade you’re about to put on would be considered a failure. After you’ve opened the position you might talk yourself into staying in a trade going bad, using all kinds of irrational excuses. But if you’ve set a stop loss before opening the trade (when you were still thinking rationally) you’ll always have that shining beacon, reminding you that you’d be a weak, emotional idiot if you stayed in the trade after the stop loss is triggered.

    Setting a stop loss also forces you to think about your profitable trades/losing trades ratio. Suppose you want to risk 50 pips to win 100 pips, that would mean you’d need a winning trade at least 33% of the time to break even. Does your trading strategy get you a profitable trade 33% of the time?

    Another advantage of the stop loss is that you don’t have to be afraid that one badly chosen trade will kill your whole account in case the trade goes bad and for some reason you’re not in a position to close it manually. So remember to always put in a stop loss and never move it further away after opening the trade.

    Unless you are amazingly lucky you can’t expect to close 80% of your trades profitably or turn a $500 trading capital into a $10,000 trading capital in six months. With those kind of expectations you’re simply setting yourself up for disappointment, frustration and failure. (unless you’re very, very lucky).

    Try to look at things realistically right from the start. Determine an attainable percentage of winning trades considering your strategy and experience. Ask yourself how much time you can spend on trading and learning. When you have a clear view of your trading tools and conditions, you will find it much easier to work towards a profitable trading strategy.

    For example, suppose you’re a day trader with a trading strategy where you risk, on average, 15 pips to win 30. After doing about 200 trades, it turns out that 50% of your trades reached their profit target of 30 pips; the other 50% of the trades went sour and triggered your stop loss. So you’ve won 100 x 30 pips = 3,000 pips and lost 100 x 15 pips = 1,500 pips, for a gross revenue of 1.500 pips total. Gross revenue, because you still have to deduct the spread, i.e. the transaction cost you pay your broker, remember? Let’s say the spread is 2 pips per position, meaning your 200 trades costed you 400 pips. Your net revenue then, was 1.100 pips over 200 trades, or 5.5 pips per trade.

    Of course data on 200 trades isn’t enough yet to be of statistical significance, but at least it would give you something to work with: on average, each trade nets you 5,5 pips.

    Forex Beginner Tip 4. Interact with other traders

    For beginning traders an often overlooked source of information is other traders. Of course, reading books about forex is important. Books can provide you with a solid basis in a short time, providing a foundation to build on.

    Practicing is another important factor to get the hang of things quickly, but you’d be surprised to find out how often fellow traders can give you valuable feedback about your trading strategy, or about alternative ways for putting on a particular trade. You should therefore become part of an online forex community and consider starting a trading blog, so people can comment on your strategy.

    Don’t be embarrassed because you’re a beginner; remember that we all started out as beginners at some point, and many of the traders you’ll meet on online trading forums are also just starting out.

    Forex Beginner Tip 5.Keep your emotions under control

    This last trading tip is perhaps the most important one. As previously said, trading on the forex is exciting, fun and dynamic, but it’s crucial not to get carried away because of this. Successful traders approach trading like a business, not a hobby.

    You use your trading capital to make business decisions; some will make you money, others will cost money, it’s that simple. But as soon as you lose sight of your rationality I promise you that the losses will stack up pretty quickly.

    I’m talking about those moments that you do move your stop loss, because you just can’t get yourself to take the hit. Or those moments that you decide to get in right now, even though your trading plan tells you to wait, because you’re so scared to miss the trade, or perhaps you’re just bored. Those moments that you’re so mad that you lost 10 trades in a row that you start trading with triple your normal risk, taking positions in currency pairs you normally never trade in.

    Those are the moments you lose in 30 minutes what it took you three weeks to build up.

    from: Forex for Ambitious Beginners. Jelle Peters, Odyssea Publishing 2012

    Recommended Trading Courses for Stocks, Forex and Futures

    On this page, you will find trading courses and services offered by this site, or that are recommended.

    Forex Trading Courses and eBooks

    The Forex Strategies Guide for Day and Swing Traders – A forex trading eBook written by Cory Mitchell, CMT. The book is designed to give you everything you need to know to start short-term forex trading and get profitable.

    The FX Master Course – Created by Dr. Corvin Codirla, this course introduces traders to forex investing (looking at longer-term trades and factors), and provides ways to consistently profit from long-term (as well as short-term) moves in currency markets.

    Stock Trading and Investing

    Canadian Investor Stock Signals Newsletter – See the Canadian stocks Cory Mitchell, CMT is buying, why he is buying them, and where he plans to get out. Stocks that are bought have at least 100% return potential, and often 300% or more, as well as strong dividends (not always). Includes stock and commodity analysis.

    Stock Market Swing Trading Video Course – 12 videos created by Cory Mitchell, CMT, that include stock market basics, as well as two versatile strategies, so you can quickly start profiting in the stock market.

    Futures Day Trading

    DTA Day Trading and Mentorship Program – Created by the Day Trading Academy (DTA), this day trading course introduces you to futures trading, gives you day trading strategies and then provides mentoring from DTA instructors as you progress.

    Which Trading Course to Choose?

    If you want to invest in the stock market, and put your money to work for you while you sleep, with very little time investment, then check out the Canadian Investor Stock Signals Newsletter. It is recommended that everyone invest in the stock market, as it takes little time and has been shown to increase wealth over time (if done correctly). If you want to be a more active trader, and potentially increase your returns, then check out the Stock Market Swing Trading Video Course .

    The forex market isn’t as well known as the stock market, and yet the forex (currency) market is the largest market in the world, dwarfing all other markets. If you want a more passive approach for accumulating returns, check out the FX Master Course. as this course focuses on longer-term trades which don’t require much of your time. If you want to ramp up your returns, by taking more trades and putting in a bit more time, then read the Forex Strategies Guide For Day and Swing Traders .

    If you are interested in day trading futures, then check out the DTA Day Trading and Mentorship Program .

    Cory Mitchell, CMT

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