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Posted by michaeloliver

Derivatives are said to have existed as far back as the ancient Greek and Mesopotamian civilisations. Of course, at that time, derivatives were merely verbal agreements, not as complicated as the ones we have today. Derivatives have gone through significant evolution, such that now you can trade almost any financial instrument using a derivative.     Contracts for Difference (CFDs) and Futures are two types of commonly used derivative contracts, since their values are derived from various underlying assets. They enable traders to speculate on price fluctuations without actually owning the assets. They both are highly leveraged financial products, offering traders higher exposure with a small initial investment, equivalent to a small portion of the real value of the underlying asset.   Futures A futures contract is an agreement to buy (long position) or sell (short position) a financial product, based on an underlying asset, for an agreed price on a predetermined date. These contracts include the exact quantity, location and date of sale/purchase of the physical asset, as well as the predetermined price. On the expiration of the contract, it might be settled in cash or by debiting or crediting money from the concerned party’s account or via physical delivery of the underlying asset. Futures contracts are traded only on specific exchanges, which precisely define the parameters of each trade.   CFDs CFDs are agreements to exchange the difference in price of an asset between the beginning and the end of the contract or simply a transaction, based on fluctuations in prices of an underlying asset. The trader speculates on the price movement and if they conclude that the prices will increase, they take a long position, and if they believe prices will fall, they take a short position in the market. The party that gets their speculation right reaps the profit of the fluctuation in the prices.   Futures vs CFDs: What’s the Difference?   1.      Spread This is the difference between the buying and selling price of an asset. Both futures and CFDs are traded using spreads. However, the spreads tend to be small in the futures market. Often, CFD providers use the futures market to hedge their own positions and offer a larger spread to trade in the CFD market.   2.      Standardisation Both are derivatives products, although they differ in terms of where they are traded. Futures contracts are traded in official markets, such as the NASDAQ Futures Exchange (NFX), Euronext, London Stock Exchange and more. This makes futures contracts highly regulated and standardised, with fixed parameters. Just the date of settlement differs from contract to contract.   Contracts for Difference are over-the-counter (OTC) traded instruments. They are mostly not provided by official exchanges but by brokers who have their own terms and conditions. CFD providers organise a market for assets to trade and also create and disseminate prices in real time.   3.      Contract Size Futures are traded on large exchanges and are created to be used by large investment institutions. So, these contracts have a large minimum size. For example, the minimum unit of crude oil contract at COMEX is 1,000 barrels. Comparatively, the size of one crude oil CFD is 10 barrels. Contracts for difference provide much more flexibility and are accessible to individual small traders, who cannot afford large exposure.   4.      Flexibility of Leverage Leverage enables a trader to gain much higher exposure than they would be able to using only the amount in their account. The increased leverage can multiply the profit potential, although increased exposure would also mean higher loss potential.   In the case of a futures, leverage varies from contract to contract, but it isn’t very flexible. The initial margin or the amount to be deposited to buy a futures contract is determined by an exchange or a clearing house. This margin is about 5% to 10% of the actual value of the contract.   CFDs are created by brokers, giving power to the broker to set the initial margin of the contract. This provides a variety of options to choose from in terms of the initial margin for individual traders, based on their risk appetite.   5.      Expiration Date In the futures market, there is a predetermined date for the expiry of the contract. This date, under the terms of the contract, determines when the underlying asset is to be delivered at the agreed upon price. The expiration date of the contract is set by the exchange, facilitating the trade. Most futures contracts are settled before the date of expiry, since traders enter into such contracts with no intention of taking the actual delivery. They just want to make a profit out of the fluctuations in the market.   A contract for difference has no predetermined price or expiration date. A trader enters into the contract and liquidates it when the price of the underlying asset goes against the acquired position. The difference between the price at the beginning of the contact and the price at the termination of the contract is the profit or loss made by the trader.   6.     Regulations There are fewer regulations when it comes to CFDs, as compared to futures, making it easier to open an account to trade CFDs. Futures contracts are highly regulated by the exchanges, making it a complex process to open an account. Less regulations also facilitate trading with much less capital in CFDs than futures.   Conclusion Both futures and CFDs are mark to market, meaning they are priced on a daily basis. They have almost similar underlying assets, but futures backed by commodities are the most commonly traded. Futures come with high minimum commitment, but there is no such issue when it comes to CFDs. With evolving trading strategies and traders looking for quick results, CFDs seem a more viable option due to the flexibility this trading type offers individual traders, although these are high risk products. However, remember of regardless of what you are trading, having appropriate risk management strategies and market knowledge is key to long-term success.

Posted by danielboone

High volatility in the market can be extremely nerve-racking and can put a trader’s skills to the test. However, this is what makes trading more exciting, as volatility presents more trading opportunities. A market that is characterized by strong and frequent price movements is more attractive for intraday traders, presenting numerous options to take positions. No wonder then that most strategies focus on identifying entry and exit points when there are distinct price movements in the market.   But what happens when the market moves sideways? Intraday and day traders are often perplexed and a little frustrated when the market is quieter, either moving sluggishly in one direction or within a very narrow price range. It is during these periods that tunnel trading can help to identify entry and exit points.     How to Use a Tunnel Trading Strategy Low volatility typically occurs when the market is waiting for important financial, economic or political news. Before the breaking of such news, traders are unsure which direction the prices might move in and to what extent. Many don’t place trades till after the market has responded to the news, while those who do place trades counteract each other, preventing large price fluctuations and resulting in the market moving sideways.   Tunnel trading is suitable for markets experiencing low volatility. When prices move sideways, it’s possible to identify a section where the prices are concentrated. This is called a congestion zone.  Tunnel trading involves drawing two horizontal trendlines on the congestion zone. The upper limit of the average price movement becomes the resistance and the lower limit of the price movement becomes the support level of the tunnel. So, it’s important to have an understanding of these concepts before using a tunnel trading strategy.     Resistance is the level beyond which the price of an asset is unlikely to rise. This, therefore, becomes a point on the pricing chart where traders expect maximum sell off. It is always above the current market price. The possibility of the price rising beyond the resistance level, absorbing the demand for selling and then falling is high.   Support is the level beyond which the price of the asset is unlikely to fall. Therefore, support levels are points on the pricing chart where traders expect maximum buyers for any asset. Whenever the price falls below the support level, they are expected to rise. This level is always below the current market price of the instrument. The possibility of prices falling up to the support level, absorbing all the demand and then rising again is high.   Wait for Breakout     Once the tunnel has been drawn, the trader waits for the price to break out of the range. When the support or resistance level of the tunnel breaks, it indicates the beginning of volatility in prices, providing opportunities to take positions. The price may break either the upper or lower boundary, and both present an opportunity to trade. However, the indication is stronger when the breakout occurs in the direction in which the market had previously been moving (in the direction of the overall trend).   Less experienced traders may wait for the price bar to close outside the tunnel before taking a position in the direction of the breakout.   In cases where the price breaks one trendline but doesn’t close outside the tunnel, and instead moves back into the range, it would be best to refrain from opening a position. Traders may need to draw another set of trendlines if this happens.   Determining Stop Loss and Take Profit When the breakout occurs, apart from placing positions, traders would also need to know how to set stop-loss and take-profit levels. The stop loss can be set just behind the broken boundary of the tunnel made by the breakout, a few pips away. This allows the trade some space to move, if the price returns to the broken level again. Take profit orders can be set near the support or resistance level, depending on whether you are buying or selling the asset.   Advantages of Tunnel Trading The main advantage of tunnel trading is that it’s very simple to use. One doesn’t need to use any indicator and the strategy can be used for trading any asset and in any timeframe. Sometimes, the price becomes extremely volatile after breaking a tunnel trendline, offering more attractive trading opportunities. New traders can wait for the volatility to subside a little before opening a position.   The biggest advantage of this strategy is the risk/reward ratio. The stop-loss order is placed only a few pips from the currency market prices. So, even if a few trades turn out unprofitable, one profitable trade can more than make up for this.   Disadvantage of Tunnel Trading Traders need to be cautious of false breakouts and possibilities of sudden whipsaws.   There are a lot of trading strategies to choose from, making it difficult for beginners to find just one that works best for them. Trading is a process of trial and error, where you need to try out many strategies to find the one that is best suited for you. Experiment, change and improve. No strategy is perfect, but tunnel trading can undoubtedly help to maximise chances of success, if used and executed properly.

Posted by mikehodgson

Key Information to Look for in the NFP Report     1.    Employment Rate as a Percentage of the Overall Workforce The unemployment rate is defined as the number of people looking for a job. It is calculated as a percentage of the total labour force. It is the headline number of the report and a key part of the Federal Reserve’s evaluation of the US economy. It reflects the labor force that is not employed and its effects on the economy.   A crucial aspect to note here is that the employment rate is not directly proportional to the NFP figures, since an increase in the number of jobs might not alter the unemployment rate.   2.    Participation Rate Generally, it is assumed that a drop in the unemployment rate reflects that there are less people actively searching for a job in the country. However, this is not always the case, given that the unemployment rate is calculated as a percentage, rather than the total number of people looking for a job.   Participation rate plays an important role here, as it provides the actual number of people who are in search of a job. These people are either underemployed or are completely out of work. This report doesn’t include the number of people who don’t want to work or are unable to work, such as a student or a stay­-at-home dad or mom.   3.    The Sectors Influenced by Jobs The NFP report provides information about an increase or decrease in jobs in each sector of the economy. It is useful for forex traders, since it provides insight into which sectors of the economy are growing and which are stagnating.   4.    Average Hourly Wages Job gains can lead to an increase in wages. If the same number of individuals are employed but are being paid more or less for that job, it has the same effect as subtraction or addition of people from the labour force.   5.    Revision of the Previous NFP Report This is an important aspect of the NFP report, which affects the prices in the market, as traders re-evaluate prices based on the numbers mentioned in the Revised report, particularly if the changes in the numbers are significant.   Impact of NFP A high non-farm payroll figure is a good indicator of the health of the US economy. This is because an increase in jobs contributes to more robust and steady economic growth. Individuals with a job tend to spend more, leading to economic growth. Forex traders usually look for an increase of at least 100,000 jobs in a month. Any increase beyond this helps fuel the gains of the US dollar over other currencies.   Here’s a look at some of the other impacts of the NFP:   - An expected change in the numbers on the NFP report receives mixed reactions from the forex market. Forex traders expecting a change in the NFP report will analyse other sub-sections and items to gain insight or direction for their trading decisions. The unemployment and manufacturing survey payroll sub-sections act as key indicators. If the unemployment rate decreases or manufacturing payroll increases, forex traders tend to speculate a stronger position for the USD and growth for the US economy. If the opposite happens, traders will prefer other currencies over the US dollar.   - A lower payroll number is harmful for the US economy. Like any other economic report, it has an adverse impact on the US dollar, affecting markets and trades worldwide. If the NFP report shows a decrease in jobs below 100,000 jobs, it indicates that the US economy isn’t witnessing growth. This will result in forex traders looking to move to other currencies, instead of the US dollar.   There are many other key economic indicators, such as personal spending power, retail sales with PCE and CPI, that affect the movement of the capital markets. But the NFP report is the most important one, since it provides insight into inflation, sentiment and potential growth via an all-in-one report. The NFP report impacts most financial markets of the world, although the quickest reaction is witnessed on US indices like the S&P500, NASDAQ and major currency pairs like EUR/USD, USD/JPY, GBP/USD, and gold and oil prices.

Posted by marvinholmes

Trading is all about making informed decisions, keeping emotions at bay. And yet, despite much effort, sentiments do end up affecting not just a single trader’s decisions but also the way the markets move. Investor behaviour has a considerable impact on asset prices and demand for specific financial instruments. Behavioural economics says that investment decisions are highly influenced by risk, emotions and future cash flows.     Trading sentiment refers to the overall attitude of traders towards a particular financial market, asset or instrument. For instance, rising prices usually leads to a bullish trading sentiment, while falling prices would result in bearish sentiments. These sentiments play a vital role for investors, especially those who like to take positions in the opposite direction of the current market trend.   Indicators to Determine Trading Sentiments The good news is that there are ways to analyze the mood of the market and the direction the market sentiment is moving in, to help to identify potential opportunities. Here’s a look at some of the key indicators that can help a trader determine market sentiment.   1.      Commitment of Traders (COT) This provides details about how the biggest traders, such as banks, corporations and hedge funds, are positioned and how committed they are to the current trend in the market. If these traders shift their positions, it indicates that the market is going to experience some movement.   2.      High/Low Sentiment Ratio This is one of the easiest ways to determine trading sentiment. It involves calculating the average and comparing assets heading to 52 weeks of highs to stocks heading to 52 weeks of lows. If the average direction of the market is close to the highs, then its bullish, and if the average direction of the market is closer to the lows, it is bearish.   3.      Put/Call Ratio In this indicator, the number of put options is divided by the number of call options. If the ratio is above 1, it indicates that more investors believe that the market is going to be bearish. If the ratio is below 1, it indicates that more investors believe the market is going to experience a bullish trend.   Factors Affecting Trading Sentiment   ·         Macro-Economic Factors Macro-economic factors, such as interest rates, inflation and strength of the overall economy, influence investor behaviour. Studies have proven that inflation and money growth have significant impact on the returns generated from the stock market.   ·         Herd Behaviour This refers to traders following a common path. If any seasoned trader invests in a particular asset, then others might follow the established trader’s lead and make similar investments. Herding can be based on the inclination of investors towards the same source of information, analysing indicators in similar ways and, therefore, increasing the chances of similar trading decisions. Small markets with low liquidity can also lead to herding, since it isn’t possible to execute trades without following other investors, due to a lack of options.   ·         Risk and Cost Factor This depends on two features of investor attitude, stability of the market and high risk leading to high returns, if the trade is successful. Investor decisions are also affected by stability and good governance, and the belief that risks and returns are directly proportional.   Impact of Trading Sentiment   ·         Ambiguity Aversion This is a situation where an investor prefers to choose known risks over unknown ones. This behaviour was explained through the “Elisberg Paradox,” where people preferred to bet their money on the outcome of an urn with 50 blue and 50 red balls, instead of betting on the outcome of the urn with 100 balls but unspecified number of blue and red balls in it.   ·         Familiarity Bias Here, people prefer investing in familiar portfolios from their own region, state and company.  Some investors will avoid foreign or international assets, investing in domestic or local assets due to the bias, despite the return on investment.   ·         Active Trading This trading strategy involves taking advantage of short-term price movements. It focuses mainly on financial instruments in high demand, such as stocks, currencies and derivatives. It could be focused on a specific industry as well. This type of trading involves continuous analysis of and speculation regarding market movements.   Tips to Control Your Sentiments while Trading   1.      Treat Trading as a Business Design a trading strategy, with specific, realistic goals and daily activities, to keep your sentiments in check. Stick to your plan despite the market conditions. This will help you prevent sentiments from colouring your trading decisions.   2.      Use Candlestick Sharts Often, early entry and misinterpreted indicators lead to unnecessary losses. So, analyse candlestick charts to fully form before making any trading decisions. Mid-candle decisions tend to be impulsive. This will not only help you control your emotions but will also improve your performance as a trader.   3.      Research before Investing Do not completely depend on trading sentiment, do your own research too. It might help you explore new opportunities for trading, while ensuring that your decisions are information based.   4.      Paper Trade Use demo accounts and dummy trading tools to test new strategies, new indicators and new ideas before investing real money in the live markets. Focus on your strategies and work them through to figure out any loopholes. Use new strategies or try new assets only after you gain confidence through practice.   5.      Educate Yourself There is always something new in the market to broaden the horizon of your trading. Learn about some new indicators, instruments, strategies or some advanced trading tools. With advancements in technology and internet penetration, today, you can easily access books, coaching academies, webinars, etc. This will help you assess and improve your current trading plan.   The financial markets are influenced by emotions, providing trading opportunities. Understanding trading sentiment is key to making informed trading decisions. Analysing trading sentiment as part of your trading plan is only useful if you can utilise it to gain an edge in the market and take positions at the right time. How the market feels about the current scenario and how it feels about the future provide potential opportunities for traders. So, make sure you learn how to assess and analyse market sentiment and your own emotions to fine tune your trading decisions.

Posted by jamesgardner

When you put in a request to purchase or sell an asset, that order goes into a handling framework that puts in a few orders before others. Securities exchanges today are totally automated, kept running by PCs that do their work, depending on an arrangement of standards for handling orders.     However, you have the freedom to choose the way in which your order is processed, based on the price you choose to trade at. You can execute your trade at market prices via market execution or give instructions to trade at a specific future price via a pending order.   What is Market Execution? Market execution is the most basic type of trade execution and is used to buy or sell securities at the current market price. Trades are executed at the current ask and bid prices. The advantage of using market order is that it guarantees that the trade will be executed. If a trader wants to get into or out of a position, a market order provides the most reliable method to accomplish just that. But it can lead to the execution of an order at a less favourable price. A market with high liquidity provides viable opportunities for market orders, otherwise crucial slippage can occur in trades. Stop loss and take profit cannot be used in market orders.   What is a Pending Order? This is an order to buy or sell securities at a desired price. In a pending order, a trader instructs their brokerage to buy or sell an asset at a pre-determined price. Pending orders are used to execute a trade at a position that will be achieved by the market in the future.   There are 4 types of pending orders that can be placed for execution.   1.     Buy Limit This involves the buying of a security at a specific future ask price, if that price matches the predetermined price. Generally, the current price of the asset is higher than the value of the pre-determined price. These orders are placed because the trader expects the price of the security to drop down to a certain level and then witness a bullish trend.   2.     Buy Stop This also involves buying of a security at an ask price in the future, if and when the price matches the predetermined ask price. Here, the current price of the asset is usually lower than the pre-determined price. These orders are places when the trader predicts that the price of the security will reach a certain level and will keep rising.   3.     Sell Limit It involves selling of a security at a bid price in the future, if the price matches the predetermined bid price. Generally, the current price of the asset is lower than the pre-determined price. These orders are placed when the trader anticipates that the price of the security will increase to a certain level and then will witness a bearish trend.   4.     Sell Stop This involves selling of a security at a specific bid price in the future, if the price matches the predetermined ask price. Generally, the current price of the asset is higher than the pre-determined price. These orders are places when the trader expects the price of the security to reach a certain level and then continue falling.   While placing pending orders, it is important to ensure adequate risk management through the use of Stop Loss and Take Profit orders.   Stop Loss This is used to reduce losses if the price of a security starts to move in an unfavourable direction. If the price of the security touches the stop loss level, the position will be closed automatically. It is usually attached to a pending order or an open position. This order is always placed below the present bid price in a long position and above the current ask price in short positions.   Take Profit This is used to limit the levels of profit if the price of a security rises to a specific level, to avoid losses if the market suddenly changes its direction. Take profit orders lead to the closing of a position and are always attached to a pending order or an open position. This order is generally set above the current bid price in long positions and below the current ask price in short positions.   When to Use Market Orders When does the use of market order make most sense? If you are stuck in a position where the market movement is against you, a market order will help you get out of that position quickly. Generally, investors are worried about prices when entering or exiting positions, but there are times when buying or selling is more important than the price itself. You might wish to acquire or get rid of an asset quickly and this could prove risky. Therefore, it is important to make careful, informed decisions for market orders.   Using Pending Orders There are some things that traders should keep in mind while using pending orders, such as:   - Determining the Entry Point: The trader has to calculate the minimum and maximum price at which the trends will continue in a favourable direction. Sometimes, pending orders can be placed by assuming that resistance and support of a price range will break. Another way an entry point can be determined is to wait for the release of important news. The trader will need to analyse the timing of the news and place the trade accordingly.   - Placing Take Profit: This depends on the speculation and goal of the trader, based on the current market situation. The trader will need to assess the size of the potential gain and the probability of loss if the market changes direction before placing an order.   - Placing Stop Loss: Stop losses are placed based on the trader’s risk appetite and trading strategy. It is useful to define the terms of expiration to ensure that the pending order is executed according to guidelines set by the trader.   Both market execution and pending orders are important to make the most of all types of market conditions. However, traders need to be careful to not allow emotions to colour the decision to implement one of the two types of orders. Instead, they should work on technical and fundamental analysis, charting tools and other tools at their disposal to make informed decisions.

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There are many ways to approach or attack the market, different types of trading strategies and different ways of implementing such strategies. Some traders do breakouts of supports and resistances, others prefer to trade bounces off trendlines, others trade trend following strategies, others trade mean reversals. Whatever approach you take, as long as you’ve mastered your craft, you could use it to make money off the market. With this strategy however, we will be looking into taking trades based on bounces off of a dynamic support and resistance using a variation of the Bollinger Band.   Bands and Channel Based Indicators Bollinger Bands are probably one of the most popular indicators that makes use of channels or bands although there are also other different band-based indicators. They may differ with the way the bands are computed and plotted, but they do work given the right parameters.   Band based indicators are great because for many reasons, but what I find most interesting is that because of the outer bands that these indicators have, they tend to have dynamic supports and resistances that move along with the average price. These outer bands could be used in different ways but the most basic way of using the outer bands is as an area where we could consider price to be overextended and could therefore reverse to the mean or totally reverse the trend.   Trading Strategy Concept Many traders are familiar with the Bollinger Bands and how to use it. With this strategy however, we will be making use of a variation of the Bollinger Band, the toptahlil_bollinger_and_atr_band custom indicator. This indicator has the regular Bollinger Band, but it also has a second set of outer bands, which is based on the Average True Range (ATR). This gives this indicator two outer band sets which we could use as an area of dynamic support or resistance.   We will be trading bounces off this area whenever we spot a decent candlestick with wicks signifying a rejection of these areas. We will only be taking trades with long wicks because these candles signify a quick shift of market sentiment, a shift that takes place in just one period or candle.   However, we will not be taking the trade immediately whenever a pin bar candle appears. We will be waiting for price to crossover the average price. The toptahlil_bollinger_and_atr_band doesn’t have a midline. For this reason, we will be using a different indicator as a basis for our average price, the TMA custom indicator. This indicator is a type of moving average which could be characterized as a smooth moving indicator.   Although we are taking notice of a possible trade whenever price bounces off the outer bands of the toptahlil_bollinger_and_atr_band, if we take the trade too early, we could still be trading against the trend. Instead of trading right away as soon as price bounces off the outer bands, we will be taking the trade when the change of trend is confirmed by waiting for price to cross and close beyond the TMA custom indicator.   Indicators - toptahlil_bollinger_and_atr_band: default parameters - TMA: default parameters   Timeframe: 1-hour or 4-hour chart   Currency Pair: any   Buy (Long) Trade Setup Rules Entry - Price should be bouncing off the area of the lower toptahlil_bollinger_and_atr_bands - There should be a bullish pin bar candle or a candlestick with long wicks at the bottom, signifying price rejection - Wait for price to cross and close above the TMA custom indicator - Enter a buy market order at the close of the candle   Stop Loss - Set the stop loss below the entry candle   Take Profit - Set the take profit target price at 2x the risk on the stop loss       Sell (Short) Trade Setup Rules Entry - Price should be bouncing off the area of the upper toptahlil_bollinger_and_atr_bands - There should be a bearish pin bar candle or a candlestick with long wicks at the top, signifying price rejection - Wait for price to cross and close below the TMA custom indicator - Enter a sell market order at the close of the candle   Stop Loss - Set the stop loss above the entry candle   Take Profit - Set the take profit target price at 2x the risk on the stop loss       Conclusion Strategies that take bounces off the outer bands of a regular Bollinger Bands is a common strategy and many traders have been profitable doing that. However, there are many cases wherein the bounce off the outer bands isn’t just strong enough to reverse the trend. This could work if you are trading a simple mean reversion strategy which aims for just the middle of the Bolling Band or the average price.   If you’d like to take trades with a bit more juice in it, you should be taking trades which actually results in the reversal of the trend. This strategy allows you to do this by having an entry after the cross of the TMA custom indicator, which is our average price.   There will be many instances wherein price could start a strong trend and if you’d let the profits run, you could be earning more than twice your risk. If you feel a bit more aggressive and opt to aim for higher returns, instead of using a fixed take profit target, you could instead make use of a for trailing stop loss, or close the trade based on signs of a reversing price action. However, this would be a more aggressive route to take as price could also reverse on you or start to form a range, instead of totally reversing the trend.   Happy trading!!!

Posted by kennethallen

Many successful strategies for trading forex exist, but not all of them are suitable for every trader. Select a strategy that best suits your particular situation, including your available time, personality type and risk tolerance. These are covered below based on the typical time involved, ranging from short to long term.   1. Scalping Scalping is a very short-term trading strategy that involves taking multiple small profits on trading positions with a very short duration. Scalpers need ultra quick reaction times because they usually enter and exit trades in just seconds or minutes. This very fast paced and a rather stressful activity that may not suit everyone.    Scalpers also closely monitor price charts for patterns that can help them predict future exchange rate movements. They tend to use very short-term tick charts similar to that shown below for EUR/USD for analysis. Scalpers generally do best using a broker with tight spreads, quick guaranteed order executions and minimal or 0 order slippage.    EUR/USD tick chart and trade entry box   2. Day Trading Day trading is another short-term trading strategy that is followed only during a particular trading session. Day traders generally do not take overnight positions, so they close out all trades each day. This helps reduce exposure to market movements when the trader is inattentive to the market.   Most day traders use trading plans based on technical analysis on short-term charts that show intraday price action. Many day trading strategies exist, but a popular one, is known as breakout trading. Trades get triggered when the exchange rate moves beyond a given level on the chart for a currency pair and are confirmed when accompanied by an increase in volume.   The 30-minute candlestick chart of GBP/USD shows a breakout below the level of the lower of the 2 converging trend lines of a triangle pattern drawn in red. Note that trading volume also increased when the breakout occurred, thereby confirming it.    Triangle pattern breakout in GBP/USD   3. News Trading Some forex traders with deep pockets and a decent appetite for risk might use news trading strategies, although they are probably not ideal for forex beginners. These strategies can be based on fundamental and technical analysis and they generally benefit from the notable volatility often seen in the forex market immediately after key news releases.    News traders typically need to monitor economic calendars for key data releases. They then watch the market closely before the event to determine key support and resistance levels so that they can react quickly after the event based on the results. News traders need to maintain strict discipline when managing their currency positions during such fast markets and often place stop-loss and take profit orders in the market. An example of an economic calendar and a data release event that a news trader might use is U.S. unemployment claims. This data was especially volatile during the COVID-19 shutdown in the U.S. and created considerable fluctuations in the forex market after its release. Although those jobs numbers were dismal, what mattered most to the market is how the result differed from the market’s consensus.    In the situation below, the previous unemployment claims number was 3,176K, the expected number was 2,500K, and the result was worse than expected at 2,981K. This should have put pressure on the U.S. dollar after its release versus other currencies.    Forex calendar showing a massive rise in U.S. Unemployment Claims data during the COVID-19 shutdown   4. Swing or Momentum Trading Swing trading, sometimes also known as momentum trading, consists of a medium-term trading strategy that aims to capture more market moves. Swing traders do this by trading both with major trends and also against them when the market is correcting, so they should be willing to hold overnight positions.    Swing traders tend to focus on entering and existing positions based on momentum indicators that provide buy and sell signals. Traders use them to find overbought or oversold markets they can sell or buy. Swing traders might also buy ahead of support or sell before resistance levels that develop on the charts of the exchange rate for a currency pair.   Some commonly used momentum indicators include the Moving Average Convergence Divergence (MACD) histogram and the relative strength index (RSI). The daily candlestick chart shown below for the GBP/USD exchange rate also displays the MACD and RSI in indicator boxes.    Daily chart for GBP/USD with MACD and RSI indicators shown below   5. Trend Trading Trend trading is a popular longer-term forex trading strategy that involves following the prevailing trend or directional movement in the market for a particular currency pair. This strategy often involves buying on pullbacks in up trends or selling on rallies in down trends.    After a trend trader has taken a position in the direction of the trend, you will probably hold onto it until the market reaches their objective or the trend starts reversing. Trend traders often use trailing stop loss orders to guard their profits if a significant reversal materializes.   Many trend traders use technical analysis indicators like the Average Directional Movement Indicator (ADX) and/or moving averages that smooth out the price action so they can better identify trends. They might also use longer and shorter term moving averages and watch for crossovers to signal a potential reversal.   The 4-hour candlestick chart for EUR/JPY below shows an upward trend in progress after a significant decline with a 10-day moving average shown in red and the ADX in the indicator box underneath.    4-hour chart for EUR/JPY showing a down trend followed by an up trend

Want to learn how to trade the spinning top and doji candlestick pattern? In this article, I will show you how to identify the spinning top and doji candlestick pattern, and how to trade them successfully. This article will be the first in a series of price action posts in which I will reveal to you guys everything that I’ve learned about trading price action candlestick patterns and other chart patterns.   Doji candlesticks are those who’s opening and closing price is the same. They usually have relatively small upper and lower shadows, although there are exceptions. In the picture below, you can see some doji patterns.     In the same picture, you will also notice some spinning tops. Spinning tops are similar to dojis, and in Forex they can be traded the same way. Spinning top candlesticks are those who’s opening and closing prices differ by only a few pips. They, like doji candles, also usually have relatively small upper and lower shadows.   How to Trade the Spinning Top and Doji Candlestick Pattern Many misinformed traders treat the spinning top or doji as a reversal pattern. The fact is that, although a doji or spinning top may often be followed by a reversal in price, the only thing it tells us for sure is that the market is unsure about what direction price should be going.   In the example above, price did reverse each time; however, often a doji or spinning top candlestick pattern signifies that price is simply slowing down at a level of support or resistance. Price could always continue in the direction it was heading.   The most important thing you should take from the lesson is that dojis and spinning tops signify neutrality in the market – not a reversal in price. Dojis and spinning tops can be used to prepare for a possible entry, and you can use them to note areas of support and resistance; however, you should never make a trade decision based on a doji formation or spinning top candlestick alone.   As with a few other price action techniques that will be taught in this series, multiple occurrences of these two candlestick formations increase the odds of a reversal in price. Keep in mind that the market can do anything at any time.   The majority of my knowledge in price action and candlestick patterns came from Steve. He is credited with introducing the western world to candlestick charts. He is THE expert on price action. I’ve also studied Nial Fuller’s price action course and a few others, but I highly recommend Steve Nison’s courses.   I hope you see how trading the spinning top and doji candlestick pattern can be useful to you.  Learning these price action techniques is a great way to profit in the Forex market, especially when combined with another profitable trading system.

Interested in trading the hammer candlestick pattern? Pin bars, like the shooting star and hammer, are great for price action trading. Many traders use them incorrectly, so I’d like to show you how to profitably use these candlestick formations in your own trading.   We’ve already gone over how to trade the shooting star candlestick formation earlier in my free price action course. The hammer is basically the opposite of the shooting star.    Rather than go over the same material, we’ll quickly go over identifying a true hammer candlestick formation, and then add some depth to our understanding of how to trade these two pin bar formations.   What is a Hammer Candlestick Pattern? The hammer formation is a Japanese candlestick that consists of a long lower shadow with a relatively small real body at or near the top of the range of the candlestick. The lower shadow must be at least 2x the length of the real body of the candlestick. The color of the real body (bullish or bearish) does not matter, and it should have a small upper shadow.   Like the shooting star, this candlestick is a reversal formation. A hammer candlestick must be traded within the context of the market or trend, i.e., a true hammer formation only occurs after downward trending candles. Trying to trade the hammer or shooting star from a neutral/ranging market is a good way to lose your money.   Trading the Hammer Candlestick Pattern In the picture below, you can see a good example of how trading the hammer candlestick formation can be very profitable.  This hammer signal was followed by a nice rally in price. It formed on the Aussie (AUDUSD) market on the Daily time frame. As you can see, price reversed aggressively after this hammer formation.     If you would have gotten into this trade at the 50% entry, you would have been risking about 80 pips. This swing in price has already moved about 828 pips from the 50% entry of that hammer, and could possibly go further. So, far this trade would have given you more than a 1:10 risk to reward ratio.   I took this trade, but my take profit was set to a 1:2 risk to reward ratio, which was hit within three days. In retrospect, I would have done much better to close only half of my position when price reached 2x what I was risking. I could have let the remaining half ride up to 3x my original risk, and then closed half of that position, leaving the remaining half (one quarter of my original position) to ride the swing to the top.   After moving the stop loss to break even, this becomes a free trade. The only risk in this trade, at that point, is risk to potential profit. Each time the upward trend made a new higher low, I could have moved my stop loss to just below the latest higher low – effectively capturing the majority of this swing in price (see the image below).     Another piece of advice that you might consider is that these price action formations are more meaningful on longer time frames. I typically do not take any trades based on the price action of a chart less than 15 minutes; however, the 1 Hour chart is more meaningful, the 4 Hour chart is better, the Daily chart is even better, etc….   That being said, you will not see as many of these price action formations as you move up to higher time frames. That should be pretty obvious, because there are simply less candlesticks for any given amount of time on a higher time frame chart.   This is true, not only for price action trading, but for any style of trading. There will always be a delicate balance of trying to get enough trading setups, while also trying to choose the most meaningful trade setups.

In the last addition to my free price action trading course, we went over the bearish engulfing pattern. In this article, we will go over trading the bullish engulfing candlestick pattern.   The bearish and bullish engulfing patterns are considered fairly strong candlestick reversal signals. The bullish engulfing pattern is essentially the opposite of the bearish engulfing pattern.   Like I previously stated, in my article, Trading the Bearish Engulfing Candlestick Pattern, these engulfing patterns are often misused. Rather than revisiting all the same points again, I’ll simply define the bullish engulfing pattern, and then we’ll try to expand upon our knowledge of trading these useful candlestick signals.   What is a Bullish Engulfing Candlestick Pattern? The bullish engulfing pattern consists of a candlestick that opens at or below the close of the previous candle (almost guaranteed in Forex), and then closes above the open of the same [previous] candle. As I stated before, the most effective way of trading these signals is based on the price action of the real bodies (open to close) of the candles – not the total range (high to low).   I’m defining a bullish engulfing candlestick pattern as one in which the bullish real body of a candle engulfs the bearish real body of the previous candle. In some frequently gaping markets, you may encounter cases in which a bullish candle engulfs another bullish candle. I don’t have experience with these, as I am purely a Forex trader.   Effective candlestick patterns must be traded within the context of the market. Since this pattern is considered a bullish reversal signal, a true bullish engulfing pattern will only come after a bearish movement in price (consecutive lower lows).   Note: Occasionally, you may find engulfing patterns occurring during periods of market consolidation that would have been effective, but we are only interested in what usually happens – not what occasionally happens. In the long term, you will lose more often than you win by taking these signals during consolidation periods.   Trading the Bullish Engulfing Candlestick Pattern     In the image above, you will see a small bearish movement in price, followed by a bullish engulfing candlestick pattern. You could have made a nice profit by entering a buy position at the open of the candle following the bullish engulfing pattern. Placing your stop loss at the bottom of the bullish engulfing candlestick, this trade would have been worth nearly 2x your risk.   Like many of these candlestick reversal signals, trading the bullish engulfing candlestick pattern is usually more effective, or at least a higher probability trade, when it follows a sharp decline in price. The reason for this is pretty simple; market prices are driven by psychology.   After a sharp incline or decline in price, traders lose faith that the market can sustain such a sharp incline or decline for long. While amateurs may try to chase price, the big players will start taking their profits or entering trades against a quick, volatile price movement (see the image below).     Sharp price movements are not, however, a necessary precursor for trading these patterns. Many times all that is required is a small consecutive movement in price in one direction or the other, as you can see in the first image.   As I stated in my last price action article, the relative sizes of the candles involved in these patterns are important. Some traders, for instance, will not trade an engulfing pattern unless the engulfing candle is much larger than the previous candle.   I have not personally found that to be any better or worse in indicating how strong the potential reversal that follows will be. In fact, if the engulfing candle is too large, it can sometimes swallow up much of the price movement, and leave you with a poor potential risk to reward ratio.   Final Thoughts The context in which these patterns occur is very important. You should never trade reversal signals from periods of market consolidation. That being said, these engulfing patterns, as well as other candlestick reversal signals, can be very effective after just a few candles have made consecutive higher highs or lower lows.   Occasionally, the engulfing candle in one of these patterns will be very large. Many traders would say that a relatively large engulfing candle signifies a strong reversal ahead. However, a larger engulfing candle requires a larger stop loss in pips (obviously), and may lower your potential risk to reward ratio. Enter such trades with discretion.   Typically, an engulfing candle that engulfs more than just the previous candle is an even stronger signal. The more candlesticks that are engulfed, the stronger the signal.   Again, keep in mind that the larger the engulfing candle, the less likely it is that you will be left with a favorable risk to reward scenario. Since candlestick signals are only reliable in the short term, there is no guarantee that price will continue to move in the direction that is indicated by the signal.   Lastly, any good trader will incorporate good support and resistance levels into their trading signals. Engulfing patterns that are bouncing off of relevant support or resistance levels are more likely to reverse. Previous swing points, obvious supply and demand levels, relevant Fibonacci levels, trend lines, dynamic support and resistance, etc… should be considered when taking these trades.   Engulfing patterns can be very profitable, if you know when to take these signals and when to pass on them. Using a good trading system, especially one works well with candlestick signals, like the Top Dog Trading or Infinite Prosperity systems, can help you qualify the best signals to trade. After a little screen time with your demo trading platform, you should be trading the bullish engulfing candlestick pattern just like a pro.

Latest Indicators
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The MACD Divergence indicator issues signals based on positive and negative divergences between the currency price and the MACD trading indicator.   Red arrow means possible sell signal while green arrow below the main window means possible buy signal (going long).   EUR/USD 5 Min Chart Example  

The Aroon Oscillator indicator for Metatrader 4 oscillates between +100 and -100 . It provides buy and sell signals based on the Aroon formula (Aroon Up – Aroon Down).   Trading signals: Bullish – Buy at the green dots. Bearish – Sell at the red dots.   General Assumptions: - Price bullish above the zero line. - Price bearish below the zero line. - Strong uptrend above +50 - Strong downtrend below -50      

The automated trend line indicator for Metatrader 4 draws two trend lines. The upper trend line is formed by connecting two highs (resistance line). The lower trend line is formed by connecting two lows (support line).   Trading signals: Go long if price breaks and closes above the upper trend line with target price: Upper Projection Line. Go short if price breaks and closes below the lower trend line with target price: Lower Projection Line   General Assumptions: - Price bullish above the resistance line. - Price bearish below the support line. - Place stop-loss above/below the breakout bar  

Posted by martybonner

The automated pinbar indicator for MT4 identifies pin bars on every timeframe and shows them on the chart. Pinbars can be extremely useful to find and trade possible reversals in the market. The indicators works for all currency pairs. This trading indicator is very popular among forex price action traders.  

Posted by lexiegordon

The Drive indicator for MT4 looks very similar to the popular ADX indicator developed by Welles Wilder. The main purpose of the indicator is to determine the strength of the current trend. The green line above the red line indicates an uptrend in the market while the red line above the green line indicates a downtrend may be underway.   EUR/USD 1 Hour Chart Example  

Latest Experts
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Posted by robertplows

MIB Pro MT5 is a version for MetaTrader5 of Metal Index Boxer Pro forex robot.   Fully automatic professional tool for trading metals and stock indices. The classic trading strategy of price levels breakout. Trading is carried out by pending orders taking into account the medium-term trend.   Stop loss is always set.   Dangerous strategies – grid, martingale, etc. – NOT used.   Minimal number of parameters makes the use of this Forex Expert Advisor accessible even for inexperienced users.Not sensitive to account type and execution speed.   Recommendations Broker and type of account – any. Timeframe – H1. Minimum recommended deposit – $ 100. Terminal – MetaTrader5.   Expert Advisor with simple and effective strategy: Yellow If you want to trade in MetaTrader5: Yellow MT5 Hedge   Parameters Hour to start searching price levels – hour to start searching trading levels.* Hour to finish searching price levels – hour to stop searching trading levels. At that moment pending orders are to be set. * Hour to delete all pending orders – hour, when all pending orders of current instrument are to be deleted.* Summer adjustment of broker – adjustment for daylight saving time (contact your broker for details).* TrailingStop in pips – trailing stop value in points. If 0 – disabled. ** AutoTakeProfit – if “true”, the EA will detect TakeProfit level by itself. ManualTakeProfit – value of TakeProfit, defined by a user, if parameter AutoTakeProfit=false.** AutoStopLoss – if “true”, the EA will detect StopLoss level by itself. ManualStopLoss – value of StopLoss, defined by a user, if parameter AutoStopLoss=false.** Range from “box” to set order – indent from important price level for pending orders.** TrendFilter – if “true”, pending orders are to set taking into account current medium-term trend. MagicNumber – “magic number” of this forex robot, which allows it to distinguish its positions from others. Must have different values for every instrument. Automatic lot estimation – can be set to “true” or “false”. When set to “true” the EA selects the lot size for trading depending on the balance value. Manually set of Lot size if Auto lot estimation=false – lot size is set by user, if the value of AutoLot is “false”. Risk level – percentage of the deposit, used for the automatic calculation of the lot. Max allowed drawdown – the maximum drawdown as a percentage of the balance, at which all positions on current trading instrument will be closed. Max Spread – maximal value of spread to set pending orders. AccountFillingType – type of order execution for this type of account. If the advisor does not open positions with default value of this parameter – select another type of execution.   * – Recommended parameters for the terminal time GMT + 2 (winter) and GMT + 3 (summer) – in .zip-file with the EA.** – depending on the number of digits in instrument quotes used by your broker, the values of TrailingStop, ManualTakeProfit, ManualStopLoss parameters and Range from “box”, possibly, need to be multiplied or divided by 10, 100 or 1000. These parameters in set-files are for: Gold – 3 digits, DE30 – 1 digit, US500 – 1 digit.   I will be thankful for your positive reviews and ratings – it inspires us for further improvements of our Expert Advisors.  

Posted by robertplows

Extended version for MetaTrader5 of famous Yellow Expert Advisor.   The fully automated Yellow MT5 Hedge EA works on short-term trend changes creating the price channel set in the parameters. Trading is carried out at the external borders of this channel by opening positions in different directions with different lot sizes.The strategy is simple, but effective. With adequate money management, the probability of stable earnings is very high.   Presence of a sufficient number of parameters allows trader to customize the advisor in accordance with personal trading style.   Terminal – MetaTrader5. Account type – only Hedge. Yellow MT5 Hedge is intended for trading any currency pair on H1 timeframe. Not martingale, not arbitrage.   Stable trend Expert Advisor: TFollower   Parameters AutoLot – can be set to “true” or “false”. If “true”, the EA selects the initial lot size for trading depending on the balance value. TradingLot – initial lot size is set by a user, if the value of AutoLot is “false”. Risk – percentage of the deposit used for the automatic calculation of the lot. MaxLotSize – maximal allowed trading lot. Change this parameter only if you really understand what you’re doing. DD – maximum allowed drawdown. If reached, all positions on the symbol will be closed. To continue trading on that symbol its EAMagic parameter must be changed. TradingMode – selectable option for searching of market entering points. “Classic” – like in version for MetaTrader4. “New” – new entering points. TakeProfit – take profit in points. TrailingStop – trailing stop in points. AutoPriceChannel – can be set to “true” or “false”. If “true”, the EA automatically determines the trading price channel. ManualPriceChannel – value of the price channel in points for Yellow MT5 Hedge to open positions, if AutoPriceChannel=false. ZeroPositions – if “true”, the EA opens positions only if there are no other open positions on the trading account. SaveDeposit – can be set to “true” or “false”. If “true”, the EA will close order series with minimal profit ignoring TakeProfit parameter. TradeOnFridays – can be set to “true” or “false”. If “true”, the EA will open trades on fridays. SafeMode – can be set to “true” or “false”. If “false”, built in additional filter will be turned OFF. LotMult – lot multiplier for the next opened position. AccountFillingType – type of order execution for this type of account. If the advisor does not open positions with default value of this parameter – select another type of execution. CommissionFor1Lot – broker’s commission for 1 lot, in the deposit currency. If your account does not have a commission, set it “0”. CommentOfOrder – comment to orders. Can take any value. EAMagic1 – the magic number of the EA, that allows the advisor to work only with its positions. Must have different values for every chart.   Recommended broker – any.   Minimal recommended deposit – $300 for cent account (30000 cents) and lot 0.1. Account leverage – from 1:400 and higher.   For the correct operation of the EA, the currency pair history for the H1 and D1 timeframe should be downloaded to the terminal. For that just switch your chart to D1 timeframe, and then – back to H1. This will be enough.   Parameters are set as for 4-digits servers. They will be automatically recalculated for 5-digits servers.   Do not update your terminal and do not move your currenct trading to another terminal, if there are opened current positions. It’s important.   Backtest screenshots on different currency pairs are provided below.  

Posted by robertplows

Trading is performed using pending orders on important price levels, that are detected by advanced adaptive algorithm A.P.L.D., that gives the opportunity to respond quickly to changes of market conditions.   The A.P.L.D. algorithm provides 3 strategies of important price levels detection. They can be used either together or separately.   Virtual StopLoss is always set. Two- levels adaptive TrailingStop for accounts with floating spread. “Dangerous” strategies are not used.   Trading can be performed either with fixed lot or with automatic money-management system.   Expert Advisor with simple and effective strategy: Yellow   Broker and deposit Any 5-digit broker with low spreads and fast execution is suitable for trading. Minimum recommended deposit – $100.   Currency pairs and timeframe Trading on EURUSD, USDJPY, USDCAD or on any currency pair with small spread is recommended.   Trading on several currency pairs is not recommended, because of periods of drawdown. And if such periods match on several currency pairs at the same time, common drawdown of trading account can be noticeable.   Timeframe – H1. Terminal – MetaTrader4.   Parameters AutoLot – if “true”, the EA selects the lot size for trading depending on the balance value. Lots – lot size is set by a user, if the value of AutoLot is “false”. Risk – parameter for automatic lot calculation, if AutoLot value is “true”. AutoRiskReduction – if “true”, it provides reduction of possible risks in case of simultaneous using of all three strategies. DD – the maximum allowable drawdown. If reached all positions of this currency pair will be closed. Strategy1 – if “true”, the EA uses the first strategy. Strategy2 – if “true”, the EA uses the second strategy. Strategy3 – if “true”, the EA uses the third strategy. TakeProfitInPoints – take profit in points. AutoStopLoss – if “true”, the EA detects StopLoss level automatically. StopLoss – virtual stop loss in points, if AutoStopLoss=false. TrailingStop – trailing stop in points. TwoLevelTrailing – if “true”, the EA will use 2 levels of TrailingStop. The first – for order protection, the second – for earnings. VirtualTrailing – if “true”, the EA hides the modified StopLoss levels from the broker. CommissionFor1Lot – broker commission for 1 lot, in the deposit currency. If your account does not have a commission, set to “0”. OpenMode – if “true”, pending orders will be set only on the beginning of new bar. Delta – indent from important price level for pending orders. StartHour – hour to start trading. EndHour – hour to stop trading. All current pending orders will be deleted. SummerAdjustment – adjustment for daylight saving time. EAMagic – magic number of the EA, which allows it to distinguish its orders. There are two more hidden EAMagic parameters that are determined automatically. That is, for example, if you set EAMagic = 10, then the advisor reserves two more “magic numbers” – 11 and 12. Keep this in mind when simultaneously running several robots on one account. ShowInfoPanel – can be set to “true” or “false”. If “true”, the information panel will be displayed on the chart of the traded pair. Panel_Language – language of the information panel. TextColor – font color of the information panel.   Recommended settings for EURUSD are set by default.   By default, the StartHour and EndHour parameters are set for the winter terminal time zone GMT+2. If necessary, set these parameters according to the time zone of your terminal.

Posted by robertplows

It is necessary to understand that testing this strategy in the MetaTrader4 tester is impossible, since the work is carried out simultaneously on several instruments, while the tester makes it possible to test only one trading instrument at a time.   This Forex Expert Advisor implements the classic idea of correlating currency pairs, both direct and reverse. This allows, when opening a position, to protect it by simultaneously opening a position on a correlating currency pair. With a high level of correlation of currency pairs and a reasonable money management, this approach makes it possible to get profit with high probability and to avoid large drawdowns of the trading account.   Presence of the DD parameter, which performs the StopLoss function, and built-in recovery system helps to keep the drawdown at a comfortable level for a user.   When the level of correlation of currency pairs changes for already open positions, additional positions are opened either for the same currency pairs or for other unrelated ones, which provides additional security for trading.   2 trading modes are available: 1. With automatic selection of currency pairs – trading will be performed on 28 currency pairs: EURUSD, GBPUSD, AUDUSD, NZDUSD, EURJPY, USDJPY, AUDJPY, USDCHF, EURAUD, EURCAD, EURCHF, EURGBP, CADCHF, EURNZD, AUDCAD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, AUDCHF, NZDCAD, NZDCHF, NZDJPY, AUDNZD, USDCAD, CHFJPY, CADJPY.   2. With manual selection of currency pairs – they have to be set in parameters.   Expert Advisor with simple and effective strategy: Yellow Expert Advisor for price levels trading: Level15   For the advisor to work correctly, the quotes of the used currency pairs are needed in the “Market Watch” window of the MetaTrader4 trading terminal. To do this: right-click in the window “Market Watch” – Show all. After that, you need to drag the Correlates EA to the chart of one of any currency pair, selected for trading.   Recommendations: TimeFrame – H1. Trading terminal – MetaTrader4. Minimal recommended deposit – $500 for 0.01 lot on standard account. Or $50 (50000 cents) for cent-account with lot 0.1. Minimal recommended account leverage – 1:500.   Parameters: AutoLot – can be “true” and “false”. If “true”, the EA chooses the lot size for trading depending on the balance. Lots – lot size is set by the user, if the value of AutoLot is “false”. Risk – part of the deposit in % used for automatic calculation of the lot. DD – maximum allowed drawdown, when reached all positions are closed. Performs the StopLoss function. CorrelationPeriod – the number of candles of H1 timeframe to calculate the correlation. TakeProfitInPercents – take profit in % of the account balance. MinimumCorrelation – minimum correlation value in % for opening positions. CorrelationStep – change in the correlation of currency pairs for which positions have already been opened, in % for opening additional positions. LotMult – lot multiplier for the following opened positions. CommonProfitClosure – can be “true” and “false”. If “true”, the advisor will close all positions with the minimum profit, regardless of the parameter TakeProfitInPercents. AllowNewPositions – can be set to “true” or “false”. If “true”, the EA will open new positions on other currency pairs. If “false”, the EA will only accompany positions that are already opened. AutoRecovery – can be set to “true” or “false”. If “true”, the EA will use the system of gradual recovery of unprofitable positions. DD of two symbols to start recovery – level of drawdown of two instruments. When reached, the AutoRecovery system will start working. EAMagic1….EAMagic8 – “magic numbers” that allow the advisor to work only with it’s positions. Must have different values. BrokerPrefix – if there is a prefix in the names of your broker’s currency pairs, it must be entered in the field of this parameter. If not to do that the error “zero divide” will be displayed. BrokerSuffix – if there is a suffix in the names of your broker’s currency pairs, it must be entered in the field of this parameter. If not to do that the error “zero divide” will be displayed. CurrencyPair1….CurrencyPair12 – currency pairs with which the advisor will work. It is necessary to indicate them without prefixes and suffixes. ShowInfoPanel – can be set to “true” or “false”. If “true”, the information panel will be displayed on the chart of the traded pair. Take in mind, that current information, displayed in the panel, may be delayed by 1-5 seconds.

Posted by robertplows

Level15 automatic Expert Advisor is based on classic trading from price levels. No technical indicators are used to determine trading levels. Only current volatility of a currency pair matters.   Trading is provided by a series of orders: initial positions are opened in order to “study” the current state of the market and factors that influence it – with a high probability these positions will immediately give profit. If market factors turned out to be unfavorable, the Level15 Expert Advisor opens opposite positions.   DD parameter executes StopLoss function. Expert Advisor with simple and profitable strategy: Yellow Stable trend Expert Advisor: TFollower   Broker and account type Broker – any. Account type – any with leverage from 1:400 and higher.   Timeframe and deposit Timeframe – H1. Minimal recommended deposit: – for cent accounts – $300 (30000 cents) for 0.1 lot. – for standard accounts – $3000 for 0.01 lot.   Currency pairs and terminal Trading on any currency pair except metals and indicies is recommended. Terminal – MetaTrader4.   Parameters EAMagic – “magic number” of the EA, that allows it to work only with its positions. Must have different values for every chart. AutoLot – can be set to “true” or “false”. If “true”, the EA selects lot size for trading depending on account balance. Lots –  lot size is set by a user, if the value of AutoLot is false. Risk – percentage of the deposit used for the automatic calculation of the lot. DD – maximum allowed drawdown in % of balance. If reached, all positions on that symbol will be closed. CommentOfOrder – comment to orders. Can take any value. TakeProfitInPoints – take profit in points. TrailingStop – trailing stop in points. LotMult – lot multiplier for next opened position. StartHour – hour to start trading. EndHour – hour to stop trading. TradeOnFridays – can be set to “true” or “false”. If “false”, the EA will not open new order series on fridays, but will continue to accompany previously opened order series. SaveDeposit – can be set to “true” or “false”. If “true”, the EA will close order series with minimal profit regardless of TakeProfitInPoints parameter. ShowLevels – can be set to “true” or “false”. If “true”, the EA will show current price levels in the beginning of next trading hour. ShowInfoPanel – can be set to “true” or “false”. If “true”, the information panel will be displayed on the chart of the traded pair. Panel_Language – language of the information panel. TextColor – font color of the information panel.   Recommended settings – default and on testing screenshots.   Parameters are set as for 4-digits servers. They will be automatically recalculated for 5-digits servers.   Once a month it’s recommended to check that account history (history of previous trades) is downloaded to MT4 terminal. It’s important.

Latest News
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USD/JPY tilted lower in Asian trade off October 20 highs ahead of US data today and amid a lack thereof from Japan.    As of 06:58 GMT, USD/JPY fell 0.13% to 104.38, with an intraday low at 104.35.    From the US, house prices are expected up 0.8% in September, slowing down from 1.5%.    US Richmond manufacturing index is expected down to 20 from 29, while the consumer confidence index is expected down as well to 97.7 from 100.9.    The General Services Administration in the US just announced Joe Biden's win in the 2020 presidential elections, succeeding Trump as the 46th president of the US.    Biden intends to choose former Fed Chair Janet Yellen as his Treasury Secretary, becoming the first woman to do this role.    The World Health Organization has so far reported 58.43 million global cases of Covid 19 with the death toll at 1.385 million.

The British pound rose against the US dollar on Monday, following the release of strong economic data in the UK.   Data showed Britain's services PMI rose to 45.8 in October, beating analyst's forecasts of 43.2 points.   The manufacturing PMI rose to 55.2 points in October, also better than analyst's forecasts of 50.5 points.   British Prime Minister Boris Johnson stated that his government is preparing to ease the Covid-19 lockdown restrictions due to the upcoming Christmas celebrations, as the French government prepares to take the same step.   AstraZeneca said that its vaccine, developed in collaboration with the University of Oxford, may reach 90% efficacy in preventing Covid-19.   As of 21:13 GMT, GBP/USD rose 0.3% to 1.3319, after the pair hit a high of 1.3398 and a low of 1.3265.

The US dollar rose on Monday, erasing its early losses, following the release of positive economic data and news about AstraZeneca's Covid vaccine.   The US manufacturing PMI rose to 56.7 points in October from 53.4 points in September.   The US services PMI rose to 57.7 in October, beating analyst's forecasts of 55.8 points.   AstraZeneca said that its vaccine, developed in collaboration with the University of Oxford, may reach 90% efficacy in preventing Covid-19.   The British firm added that it will be able to provide 200 million doses of the vaccine by the end of this year.   The dollar index rose against a basket of currencies by 0.1% to 92.5 points as of 18:31 GMT, after it hit a high of 92.8 and a low of 92.02.

The Australian dollar fell against most of the major currencies during trading on Monday, despite positive news about Covid-19 vaccines.   AstraZeneca said that its vaccine, developed in collaboration with the University of Oxford, may reach 90% efficacy in preventing Covid-19.   AstraZeneca added that it will be able to provide 200 million doses of the vaccine by the end of this year.   This comes after Pfizer announced last week that its vaccine was effective by 95%, and Moderna's vaccine reached 94.5%.   Otherwise, Australia's manufacturing PMI rose to 56.1 points in October from 54.2 in September, and the services PMI rose to 54.9 from 53.7.   As of 17:05 GMT, AUD/USD fell 0.4% to 0.7275, after hitting a high of 0.7338 and a low of 0.7265.

The US dollar fell on Monday to its 12-week low, resuming its losses after taking a pause on Friday, due to a strong market sentiment following successive positive news about the coronavirus vaccines, and ahead of the release of major US data for November, which are key indicators of the economic impact of the second Covid-19 wave.   The dollar index fell 0.4% to the lowest level since September 1st at 92.02 points, after opening at 92.39, and hit an intraday high of 92.39.   The index gained 0.8% on Friday, in its first daily gain in 6 days, and took a pause from a broad losing streak.   The greenback also lost 0.4% during the past week, in its second weekly loss in 3, due to the weak demand following successive positive news about the Covid-19 vaccines.   The British pharmaceutical giant AstraZeneca said on Monday that its vaccine, developed in collaboration with the University of Oxford, was about 70% effective in preventing Covid-19, after an interim analysis of clinical trials third phase.   A top official in the US government virus vaccine effort said on Sunday that health care advisors have recommended that the first Covid-19 vaccines can begin to be used within a day or two after the regulators' approval next month.   The US Food and Drug Administration (FDA) will grant the approval in mid-December to distribute the vaccine produced by Pfizer and BionTech, which will be the largest vaccination campaign in US history.   The US Treasury Secretary Steven Mnuchin calmed markets on Friday that the Federal Reserve and Treasury Department have many tools to support the economy, after a decision to suspend several federal lending and aid programs by the end of this year.   Investors awaited the release of major data on the performance of the US manufacturing and services sectors during November, which are key indicators of the economic impact of the second Covid-19 wave.   At 14:45 GMT, the flash manufacturing PMI reading is expected to reach 52.5 points in November from 53.4 in October, and the flash services PMI is expected to reach 55.8 from 56.9.

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Posted by lexiegordon

One of the most important aspects of forex trading is choosing the right broker. Many traders have already faced many problems with brokers. Some people have problems with investing as they cannot choose a good broker without realizing it. Again, it has been seen that even after making a good trade, one cannot fall into the various traps of the broker and withdraw money. There are many such examples.   So today we will discuss how to choose the right broker and how to make sure that your investment is safe with this broker or how much the investment should be.Refrain from trading in the brokers in which you will get the following points.Slipage:Slipage is the difference between the price at which you want to open a trade and the price at which you can open a trade. In this case you will never be able to open or close the trade at the actual price on instant order. Solid and no dealing desk brokers do not have slippage.New Broker:This is not to say that you cannot trade in new brokers, but there are many new brokers who disappear with your capital after accumulating in the market for a few months. One broker is Kiwifxbank so be aware of investing in new brokers.Cash or product offerMany brokers open new live accounts and offer a variety of attractive products such as iPhone, Android, etc. with cash prizes. In fact, these are just a trap to get you invested. Beware of all these brokers.Fiscal Paradise:If your broker is a Fiscal Paradise type broker, think twice before investing. That when you go to withdraw money or visit their office directly, you will actually find someone there!Unknown Authority:Brokers have at least one authority when it comes to the market, but in that case you have to be clear about some things. For example, the authorized number that the broker is using is actually the authentication of his company. For example, a broker called Kiwifxbank did such a thing. They started working under the name of Kiwifxbank as a Sister Concern of an organization called Vault Market Pvt.Let's learn how to choose a solid broker.Review / Reputation:When a broker starts working, many forex bisayaks write about the good / bad, advantages / disadvantages of that broker. Such as how this broker is, how transparent its transactions are, what are its good aspects and what are its bad aspects, etc. There different traders write their respective opinions about the broker to help you find out the details about that broker. When many traders give the opinion that the broker has slips, recalls or problems in withdrawing money, then that broker should be careful.Duration:Straightforwardly, the older the broker, the greater your reliance on that broker for trading. Many brokers come every year, so study the broker to see how long it lasts, you can proceed in a positive perspective for those who have been running the business for about 3 years.Regulation:As I said before, broker regulation is a very important fact. In the case of broker selection, check whether there is a National Authority with minimum তার domestic stock exchange regulations. For example, check for CFTC / NFA for US brokers and FSA for UK brokers.It would not be wise to trade in Virgin Islands regulated brokers.Headquarters Location:Solid and real brokers trade with their physical existence because this type of financial business is not possible in Fiscal Paradise. So be sure of the broker's office location.ECN or Dealing Desk / Market Maker:Brokers are usually of two types, market makers who open another trade against each of your trades and create a market on their own to benefit themselves by keeping you away from the main market buyer sellers.ECN - Electronic Communication Network Brokers are real brokers who conduct trades by directly connecting buyers and sellers. (Read my post to know more about Dealing Desk Brokers and ECN Brokers.)You can also choose a broker and start trading knowing the broker spreads, customer support and some other details.

What is a currency index:An index of a currency is the trading volume or trading weight value of the currencies of other countries at a higher rate than the currencies of one country. Which has been the official forex base currency since 1973. So the highest base currency is the USD whose indexing calculation can be used to measure the value of the Ananya currency. So in today's currency index discussion the index currency is USD i.e. USD index USDX.The USDX is calculated with the trading value against the USD of the currencies of 22 countries over a total of 8 major currencies.The currencies are:Euro (EUR)Yen (JPY)Pound (GBP)Canadian dollar (CAD)Krona (SEK)Franc (CHF)Now the question is how to include 22 countries in 6 currencies? Yes, we know that there are 16 countries in the European zone, all of which have a single currency, the EUR, and the USD has a trending value against the single currency of Japan, Britain, Canada, Sweden and Switzerland. The simplest thing is to find out how much the USD is running against different currencies, which is called Indexing, since we will find out the index of USD, so it is called USDX.USDX Currency Country:Let's find out now which currencies are most involved for USDX i.e. how much of which currency is USDX for trading. Notice the image below:     The EUR is a huge part of the figure for USDX. In second place is Japan, followed by Great Britain. Thus you see a ratio of country-based currencies, with 50% of USD currency trading and more trading against the EUR. The remaining 30% off the chart is traded with unique currencies. The EUR plays the most important role for the USDX dollar and the USD is the most affected by the EUR. That is why USDX is called "Anti-Euro Index". The USDX is not calculated in the Forex market, but rather the large financial institutions that are there calculate the USDX to balance their trade or economy according to their needs. Since USDX is a global concept, many financial institutions use this formula to keep their economies afloat or to conduct business accordingly. One such institution is the Federal Reserve. They calculate the USDX as "trade-weighted U.S. dollar index". Hope you got a good idea about USDX.USDX Formula:USDX = EUR * 0.576 x JPY * 0.136 x GBP * 0.119 x CAD * 0.091 x SEK * 0.042 x CHF * 0.036· When the USDX starts to fall, it means that the exchange traders are selling the USDীত Conversely when USDX starts to rise then exchange traders start to buy USD.How to read USDX chart:The USDX chart is a type of chart similar to the unique currency chart whose index is calculated on a daily and weekly basis. In this case the INDEX General value of 100.00 is calculated on a Base basis. For example, when the USDX goes up, the USD value increases. If USDX is 110 then USD value increases by 10%. Again when USDX falls to 90 then USD value decreases by 10%. Remember that since we are talking about USDX, its reflection will be around the USD currency, which is why I see the reflection of USDX rising or falling, but in my USD currency. So far the USDX level has reached a high of 160 and a low of 78.   Why useঃAs mentioned earlier, the trading weight of USD can be measured with a unique currency through the USD Index. Since the combination of many currencies is USDX. So it is possible to forex those currencies through USDX. The effect of the strong or weak behavior of the USDX chart plays an important role in the forecasting of unique currencies. Just as we use Support and Resistance, Candlestick pattern, technical analysis or various other strategies in the case of trend lines and price forecasts, the trending trends of those currencies can also be understood through the effect of USDX or the flow of this chart.How to use: Since the index chart of USDX is EUR / USD, GBP / USD, USD / CHF, USD / JPY, USD / CAD based on trading volume. The trading strength of all these currencies against USD is USDX. So notice that when the trend is down in the EUR / USD daily chart, the trend is reversed in the USDX chart.   This time look at the EUR / USD Daily Chart   If you consider the above two charts, you will see that they are slightly opposite to each other. Because we already know that the main traded currency of the USDX chart is EUR so this currency hits the USDX chart more. Thus the next movement of the charts is predicted according to the country based and the traded volume of USD with their currency.Currency co-relation needs to be discussed to clarify this issue. And different Currency Strength Indicators are used to get their Forecasts by combining unique currencies with USDX. Understanding the currency co-relation will get you magic on how 4-5 currency charts create a reverse trend against a USDX chart. Today I tried to give a good idea about USDX. We will discuss currency co-relation in detail in the future.   You can see the USDX chart in your Meta Trader, in which case you need to use two indicators.First download the USDX indicators below from attached files:1. Copy to your Meta trader \ experts \ indicators.2. This time open Meta Trader and bring the Create $$ USDX indicator to the EUR / USD chart and enter the timeframe value in the time frame in which you want to view the USDX chart from the Input variable, 15M, 30M, 45M 1H as desired.3. Go to Open offline from the File menu and bring the chart you created. (Originally written offline chart and it is but live chart)   Thanks.

I am not a professional forex trader. I have heard from one of my brothers in the area, professional forex trader, that he earns a minimum of 635000-600000 taka per month from forex. So I am interested to join forex. I wanted to learn Forex from that brother and he promised to teach me and make expat like him. So I kept waiting for him with eager interest and one day I got bored at his house. He is one of the few people who can do forex. He told me that it will take at least 1-2 years to learn forex and he does not have time to teach me. , hurricane r candle stick o Hobby Jabi has a friend of his Nikki to learn from his forex coaching.I said brother, you are your expat, you teach me, he showed me excuses and said goodbye to me. When I lose, then the profit becomes minus, then the mind becomes very bad. I thought Forex is not for me. In the meanwhile, during the news release, in less than 1 minute, I made $ 24. I fell in love and interest in Forex. I made a big loss during the news release. I was on my way to say goodbye to Forex. I did a miracle one day in between. I don't even know how it happened to me. Since then I have been in a dilemma for 14-35 days and I have Professional TRADERS of Forex. The main source was caught. Now my Balance $ 855 I only trade in one euro / usd pair.After 2 daysAfter Tarabi's prayers, I met that big brother. I told him that my forex balanche is now $ 469. My brother thought I was doing a demo.Brother, I am joking, I don't know who left. After that, I picked up the SCREENSHOT of my forex balan and showed it to him. I don't think I need fundamental, trechni analysis, price action and rsi, adx, hurricane for money income in forex.This is the first time I've read a book on the subject, and it's the first time I've read a book on the subject, and it's the first time I've read a book on the subject, and it's the first time I've read a book on the subject, and it's the first time I've read a book on the subject.When they do not share. And this is the formula of 2-3 minutes, whether it is heard or not, you have to do only three things on everyone's mt4 or mt5 indicator.I am very fond of thisP.F.T.S.T.S.R (PROFESSION FOREX TRADERS SECRET TRADING SYSTEM REVEALED)I will appear with you in the video. I will share it with everyone for a certain fee. Join my group and you will need a jar jar to join the group by texting me on Facebook. 20-25 people will be given. There will be no loss, only profitable professional forex traders can earn money. And Zara Pandit, they will be 100 hands away. I have given proof pictures. If anyone wants, I will give the video. Apply to the group. I think I will give the number on the mobile. Thank you.Who will get this Forex Formula (P.F.T.S.T.S.R) and join my Forex Group.1. Those who have minimal ideas in Forex2. When did he do forex before or is he doing it now3. You can invest capital in Forex4. You are in Forex but you are losing5. You can forex but very few inches6. Those who can deposit big money in FOREX are MOST WELCOME.Who will not get this Forex formula (P.F.T.S.T.S.R).(Because there is no point in wasting money if you can make money by buying formulas from us).1. Those who do not have the latest ideas in Forex.2. He has never done forex before or now3. You can't invest capital in Forex4. Do not understand forex5. Demo and never did.6. The lazy and more learned man that can change my needle.Last wordA very important point is that I am not a professional forex trader and the formula I will give you is the theme of professional forex traders which they never share. And I know many professional darlings who are wearing my writing here know this formula and maybe understand that I am giving the formula (P.F.T.S.R) to everyone on any subject.I think if my Dara benefits 10-15 more people then it is much better. Because their money is no longer out of my own pocket, they are working hard and earning income. I hope everyone understands. It will be good.God bless you      

1. Start with the basics.It is very easy to say that in order to be a trader, you must first know the basic terms of the Forex market. On a regular basis, you will learn things slowly without any haste. Eliminate the thought of becoming a great sage by learning all the things together in one day. Take your time, don't get too excited.2. Give up the thought of gaining quickly, learn to gain slowly by creating experience.If you think that Forex is the shortcut and the only way to get rich in less time then you are wrong. First, master the subject in a good way and gain experience. The more time you spend on any career, not just Forex, the more you will benefit. What difference does it make if your friend makes 100 pips at the same time you make only a few pips at the same time? The difference is experience! Your friend has been trading for the last 5 years and you have started those few days.Remember Forex is a career, not a scheme to get rich overnight.3. Be an expert.At the beginning of learning, many people first look for experts, people think that if you get the shadow of an expert, you will become an expert in a short time, I am not completely denying that. But the latent desire to become an expert is one step towards becoming an expert. Another form of expert is the result of your normal learning day by day. Because you can become an expert in the light of experience, so make your dream successful by counting your own experience. Expert's experience is completely his own. Until you cross that path on your own, it will only remain your dream.4. Use your own analysis.Following another person blindly will make you blind. Your goal is to be a successful trader so analyze your own trades by mastering the analysis methods well. If you are able to trade in your own analysis, your analysis will make you a professional trader. If you follow a self-proclaimed guru like a blind man, how will you trade when the guru stops giving his tips? So be your own guru.5. DemoThe best of all is demo trading. Demo trading will help you catch the mistakes of your new trading and help you to give up bad habits in trading. Demo trades are superior to live trades from different brokers. The test of every trading method is demo. If the demo success rate is good, use it in live trade. Use all the styles you have in the demo first. Extend the trades in the demo as you wish. Then select which strategies to use in real trade.. Learn from mistakesTake note of the success and failure of each test trade. Retire from trading for some time (may be more) in three consecutive failed trades. And give time again in the cold head after the break. Don't go live thinking about the success of the fourth time in the three times loss trading method. He started the analysis with the loss trades, where the mistake was or why it didn't work properly. Find out the right reason and move on to the next trade in Shudra.. Create good methods.Most new traders lose first. The reason is over-excitement, over-demand and pre-trading ahead of time. So, without trading too much excitement, first master the issues well, gain experience and start trading at minimum risk. Before trading every time, check and check if the trading tool (strategy) is correct. Everything you expect from the trade.. Stick to your own method.Every trading method has its pros and cons. No trading method is 100% profitable. There are 6 profits and 3 losses in 10 trades of your trading method, you are successful. In case your trading success rate may go down further, don't get frustrated or excited, update the strategy by understanding the market change and stay sticky in your strategy because only you know how fruitful your strategy is.9. Think of everything simply.There is no reason to think that your trading is too difficult. Start in a simple way, you will see that it is really easy, there is no need to create a base. Set aside time to trade at your convenience. Give less time but it is Zeno effective. In other words, if you can't give more time, then spend as much as you can for trading. If you want to start a new strategy, just think about it in time, analyze and fix it, make sure the results in the demo. And decide.10. Trade in a pair.Starting many trades at once does not put your risk level and extra stress on your head. So choose only one pair for longer trading. Many currencies may seem suitable for trading together, but trade with the currency pair that you have a good idea about. If you trade with 4-5 pairs at a time, you will not be able to understand the character of any pair well. And become a misguided and eventually lose trade.11. Trade within a certain timeframe.Practice trading in a specific timeframe, as there are many advantages to trading in a single timeframe, such as trading in a single timeframe where you can fully concentrate where many timeframes can confuse you a bit. A timeframe will help you analyze and make proper decisions, because the same chart will start different analyzes in different timeframes, so trading in a timeframe is very important, especially for beginners.

Posted by andrewdoherty

Why Do Forex Traders Lose? Common questions we're asked is why do Forex Traders lose when they first start off trading or when they've tried it for some time. Well, it comes down to 10 main reasons. Traders will fall into either one or more of these categories on why they lose then go off on their way and say trading isn't for them, it's too hard it's a scam. The harsh reality is they never started off their trading with the correct foundations.     Top 10 Reasons Why Traders Lose Below I've listed the core reasons and I'll cover each reason in a little bit more detail so you can prevent yourself from making the same mistakes.   1.Poor Risk Management 2. Not accepting responsibility for mistakes 3. Over trading 4. Risking too much 5. No trading strategy 6. Unrealistic expectations 7. Indecisive trading 8. Never wrong 9. Not Enough Money to Trade with 10. Focusing only on technical analysis   Poor Risk Management Most traders get into trading without understanding a thing. This includes risk management principles. When it comes to taking on risk they may think it's completely fine and logical to be placing trades by risking everything. In reality this is gambling and it's why trading has this persona of being too risky.   The professional traders are ones who understand risk, they don't gamble their money away and they only risk what they set out and no more (unless they're scaling in). Even simple tools like setting appropriate stop losses and profit targets the noob trader lacks. So before you start trading make sure to learn about real risk management.   Taking Responsibility Time and time again people and not just traders fail to take responsibility when things go wrong. What happens? The blame gets put on someone or something else. When traders get into the markets and they lose trades they try to find one single reason why it happened. BUT, it will never be themselves. So, what could it be? Did the brokers do make me lose? Did the market makers hunt my stop loss? News just made my trade fail.   All these phrases are put to blame when trading but the reality is you need to get into a habit as a trader to take sole responsibility of losses and trades. Once you do this you can actually improve as a trader but until then it will be impossible to progress.   Over Trading Over trading is one of the most common mistakes traders will make and a costly one for sure. It generally happens the most after a trader has just exited a trade whether it be a losing one or a winning one. The trader will either be emotionally happy or upset causing them to try get back into the markets.   One key fact you need to consider when trading are the costs involved. Spreads and commissions are the main ones for most traders that fall in this category. The main reason being if you keep entering and exiting tradings then you need to pay a fixed commission and spread per trade. This is what causes losing traders.   Risking Too Much Traders come into trading thinking it's somewhere to earn big where they think they need to "risk big". That's where traders make a massive mistake, they risk too much per trade which causes them to actually end up blowing up their own trading account. Even traders online will say they risk 100% which is crazy.   What you need to do when starting out is setting proper risk management principles based on your trading capital. If you start with less capital then you start leverage more which messes you up.   No Trading Strategy Beginner traders coming into the markets won't really understand the concept of a strategy. Well, everyone needs a strategy when they come into trading. It should basically tell you why you should be trading and if you don't have one then you shouldn't really be trading at all. Having a strategy allows you to stay consistent in a set of rules and principles to come up with trading ideas.   We give all our traders a systematic strategy to follow using fundamentals (economic data). Your success will basically be measured on how consistent you can execute a strategy. One big mistake is that traders come into the market thinking they can follow a technical strategy which is following lines and indicators but that's completely wrong. If you're not considering economics the strategy is useless.   Unrealistic Expectations Many people come into trading thinking it's a get rich quick thing a quick profit from the markets. One of the core reasons traders lose is because of this exact reason of setting themselves unrealistic expectations. As a trader you never get to decide how much you can make from trading, the market will decide that for you.   Something I absolutely hate is when so called traders decide how much they can make. "Make £5000 a month trading", "Quit your job" and "Work from anywhere" are all very big red flags that what they're trying to reel you in with are false dreams and hopes which are setting you unrealistic expectations.   The best traders in the world make upwards of 50% on a good year just take a look at the performance of hedge funds and investment banks. If you set yourself ridiculous expectations then it will force you to risk too much, trade too much or make even more mistakes just so you can reach the goals but in reality you'll get further and further away of what you want to achieve.   Indecisive Trading What do I mean by indecisive trading. Well this is simply a trait where traders literally freeze in fear before placing a trade so they wait and wait and wait until they think it's the right time to get in staring at price movements. Another case of indecisive trading is buying something and selling it straight away due to price action.   The harsh reality is if you had a thorough strategy and proper risk you wouldn't have this fear driving your emotions or trading activity. Having a strategy that isn't just pretty patterns and indicators will give you that confidence in your trading over the long run.   One of the factors which has surprised me is peoples financial situation. If you're not working you shouldn't trade, very simple. The reason being a psychological loss of money when you have no income is much stronger and therefore causing you to make too many mistakes. Trading is not an income it's to build existing income.   Never being wrong When you become a trader the first thing I guarantee you want to be is thinking your trades are always right. However, when trading you can never be 100% certain and having this sort of ego will get you killed. When you start thinking you'll never be wrong you end up taking on more risk. When you take on that big risk and lose you start getting upset and fall for the other reasons why traders fail.   What you need to do is accept that losing is part of the game. Keeping losses smaller than your winners is key. Some of the best traders and hedge fund managers out there have success rates of about 25-50% meaning they lose more than half their trades but when they're right they win big and when they lose they lose small.   Not Enough Money This one is really interesting reason for why traders lose and it's not really talked about. Similar to mentioned points earlier about not having a job you shouldn't be trading without one, trading is to increase existing income. However, people think they can jump into Forex and create an income. One of the biggest problems is that creators on social media create false expectations of trading basically selling the dream which doesn't exist. In reality to trade properly you need a decent start up capital. If you're trading with the bare minimum you're forced to over leverage which causes traders to lose quickly. Remember the goal to being financially stable is first having a job with income and from there you can work on growing yourself.   Technical Analysis Only Our final and probably one of the most important reason why existing traders fail is because of their overrated attention to technical analysis. What traders think they need to do is understand the charts, price and indicators. In reality technical analysis is only useful for a couple things like identifying a specific trend or timing your trades. It's terrible for trying to forecast the future direction of prices.   This is the sole reason you need to understand fundamentals to get the best probable outcome of future price depending on economic data. If you're not using both types of analysis there's a high chance you'll end up like the rest of the losing traders. Save yourself time and money by learning these reasons and improving your trading habits.

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There is no best moving average crossover strategy for swing trading regardless of what anybody tells you.   All we can do as swing traders is put the odds in our favor by using a few technical indicators as well as price action.  We need an edge and even a small edge can build your trading account if you trade it consistently.   This swing trading strategy will use a few technical analysis tools that are designed to show us if we are in an environment that supports a trade.   We are going to use 2 moving averages to determine the direction of the trend.  For this strategy, we are going to use the 5 SMA and 10 SMA (simple moving average) The stochastic indicator will be used with the settings 14,3,3 and the levels 80 and 20.  We will use these levels to indicator an oversold/overbought market condition The RSI (relative strength index) will be set to 14 and we will use the 50 level to help confirm a strong trending environment.   Consult your trading platform user manual to show you how to apply these technical indicators onto your chart.   What A Moving Average Crossover Means   There is nothing magical about any moving average crossover.  Even the so called “golden cross” doesn’t pan out in extensive testing as having any deep meaning.  Moving averages, like all technical analysis indicators, are derivatives of price.   Moving averages simply calculate the average of X number of price points in the past.  Obviously when a trend is slowing down the price range decreases and you start getting closing prices closer to the one previous.   What may appear to be a moving average supporting price is simply an artifact of slowing price action which allows the average to catch up to price.   When we use it for trend direction in the crossover, all we are seeing the average of the previous 5 closes and the average of the previous 10 closes are getting smaller.  You eventually see the crossover occur.   We will use the cross as the first indicator for a sell signal or a buy signal.     This is the daily chart of the EURUSD.  Since we are looking at swing trading strategies, I much prefer longer term time frames for trading so swings can actually develop that have the potential to run.  Choose the time period you want to trade and be consistent.   If you are trading a daily chart, avoid the temptation to zoom in or out to a different time period to convince yourself of a trade.  You also want to monitor any current positions on the time period you entered the trade on.   A few key points:   The 5 and 10 SMA are a fast and slow moving average which we will use for the first signal in our trade setup.  They will help us define the new trend direction. The stochastic will be used for oversold and overbought. We won’t ignore the cross of the lines if they take place around the 50 level. We only care about this indicator if the moving averages have crossed. The RSI will be one more tool to see if price is either breaking down for shorts or is gaining strength for a buy signal.  This is the last variable in a buy or sell signal.   We will not ignore price action or support and resistance.  Nothing pays but price and you will see an example where price structure would have had you sitting on your hands (although the setup never does confirm).   What Is A Sell Signal?   These numbers do not represent what we see on the above chart.  That will be discussed after you learn the setups.   Wait until 5 sma crosses 10 sma to the downside Wait for the candlestick that forced the crossover to close. Look down and see if the Stochastic indicator either above the 80 level or has started to head down below the 80 level. Check to see if the RSI indicator is breaking through the 50 level If both 3 and 4 are true, then place a sell stop order 3-5 pips below the low of the candlestick Your stop loss can be above the high of the last candlestick or a 2 bar high.   What About Profit Taking?   You can trail your stop loss above each lower high to really get some home run trades.  You could also exit on the next crossover or if there is signs of exhaustion coming into the market.   I will say it again…whatever you choose to do, be consistent in your approach.  This is where using a trading plan and logging all your trades will be important.  You can’t fix what you don’t track.   What Is A Buy Signal?   Your signal to buy is the exact opposite as a sell signal.   Upside cross of 5 and 10 SMA Wait for close candlestick Stochastic is below the 20 level and rising ( or recently crossed) RSI is breaking 50 level If 3 and 4 are true, place a buy stop order 3-5 pips above the high Your stop loss can be below low of previous candlestick or 2 bar low.   Swing Trading Example Of Crossover Strategy   You can open the chart above in a new window so you can follow along.   Everything sets up nice for this sell signal.  The crossover occurs to the downside.  The stochastic has recently turned to the downside and RSI has broken 50.  We don’t get a lot of price movement here but we also have just come from a period of price movement that made up an ascending triangle. You could exit the previous trade here.  This is a beautiful buy signal as the crossover occurs, Stochastic is rising and RSI has just broken 50 No sell signal so no trade exit.  RSI doesn’t touch 50, Stochastic crosses back up around the 50 level. No sell signal as Stochastic still bullish, RSI still strong. No sell signal.  Stochastic has turned and so has the 5 and 10 SMA but RSI is still bullish.  Also notice that when RSI bottoms at 50, the black line on price is showing support structure.  We can also see the Stochastic is heading toward oversold and that combined with our support equals no trade and no long trade exit. If you missed the original long or like to add to positions, you can get on-board here.  I won’t describe it…..what do you see?   That initial long trade is up 796 pips as of this chart!   In Summary   This is a great swing trading strategy that harnesses the power of common technical indicators: Moving averages Relative strength index Stochastic oscillator   We also included common price structure (support and resistance) and we need price action to get us into the trade via stop orders.   As will all swing trading strategies on this site, test them, tweak them and prove to yourself they can work.   Please like and share this blog post is you found it helpful

Posted by finnhenry

And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.   A trading setup requires only an open chart and no restrictions for the currency or timing preferences.   Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below (drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.   Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the distance between point 2 and point 3 and project it on the chart for exit.   Additions: as an additional tool traders can use MACD (12, 26, 9). The rules for entry then will be next - let’s take a SELL order:   When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts “attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down). Once the price closes below the “pivot Line” – place Sell order.     Same chart: MACD (12, 26, 9) is added.     Enjoy!

Posted by maishamrittika

Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this simple system. Currency pairs: ANYTime frame chart: 1 hour or 15 minute chart.Indicators: 10 EMA, 25 EMA, 50 EMA.   Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).   Exit rules: option1: exit when 10 EMA crosses 25 EMA again.option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).     Advantages: it is easy to use, and it gives very good results when the market is trending, during big price break-outs and big price moves.   Disadvantages: Fast moving average indicator is a follow-up indicator or it is also called a lagging indicator, which means it does not predict future market directions, but rather reflects current situation on the market. This characteristic makes it vulnerable: firstly, because it can change its signals any time, secondly – because need to watch it all the time; and finally, when market trades sideways (no trend) with very little fluctuation in price it can give many false signals, so it is not suggested to use it during such periods.

Posted by holdenlevi

Just look what this trading strategy has to say. It's a simple yet quite promising Forex trading method. Trading strategies like this can only be discovered through a long and determined observation of the price behavior.   To start:Currency: ANYTime frame: 1 dayIndicators: 5 SMA, RSI 5   Entry rules: Buy when the price crosses over 5 SMA and makes + 10 pips up, the RSI must be over 50. Sell when the price crosses below the 5 SMA and makes +10 pips down, the RSI must be less than 50.Exit rules: not set.     It is a very very simple system, yet with quite impressive results.Always remember to take actions/enter the trade only after the signaling candle is closed.   This Strategy or trading idea can be used to create more advanced trading version.

Posted by laraparker

As we move forward we discover a strategy that fits only chosen currency pairs.Take a look at the next Forex trading system:   Currency pair: EUR/USD.Time frame: 30 min.Indicators: MACD (12, 26, 9), Parabolic SAR default settings (0.02, 0.2)   Entry rules: When Parabolic SAR gives buy signal and MACD lines crossed upwards – buy.   When Parabolic SAR gives sell signal and MACD lines crossed downwards – sell.Exit rules: exit at the next MACD lines crossover or if the market starts trading sideways for some time.     Happy Forex trading!

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Posted by rodneyevans

Quote from forex-stationWe like: One of the most accurate non-repainting indicators we have used. Works in range-bound and trending markets. Wide range of Alert options. Arrows. Beginner friendly and easy to use. An all-in-one indicator for Scalping, Counter-trend trading, Trend trading and gauging the market's movements. Room for improvement: When counter-trend scalping on the smaller timeframes this indicator can sometimes cause new traders to jump in too early. Rest assured, it's a highly effective trading tool so if you do open a position early you'll find that price will eventually correct and you'll be able to close at break even or in profit. Anyone know how to use this? how to trade with this?Attached on chart seem to slow down or hang MT4.  

Hi TradersI used the Extreme Spike Indicator on the GBP/USD setup. How I use is it I wait for a Spike Low to form then trade in its direction to the upside as you can see this methods work but the indicator does repaint even though you enabled the non repaint option but the repainting has been reduced by this feature when enabled but I still think a filter is needed in order not to just trade the spikes low or high blindly so if someone has a better way to add to this indicator as a filter it would be really great as this indicator has a potential

Posted by maishamrittika

Trading with Parabolic SAR involves the following signals:   PSAR dot is above the price - downtrend.PSAR dot is below the price - uptrend.   Parabolic SAR   Parabolic SAR indicator is a trend indicator, which tells Forex traders about price stop-and-reverse points as well as trend direction. Its concept of usage is easy to understand from the first look. Parabolic SAR appears as a set of dotted lines, where each dot represents certain time period.   When price is above Parabolic SAR dots, Forex traders should be holding Long positions only. Once Parabolic SAR dots come on top of the price - it is time to change trading positions to Short. Parabolic Sar indicator literally allows being in trade all the time.     How to trade with Parabolic SAR indicator   However, trading with Parabolic SAR is not that simple; not all Parabolic SAR reversal signals can be traded profitably. Let's turn to advice given by the developer of Parabolic SAR indicator - J. Welles Wilder. He suggests using Parabolic SAR, first of all, for trailing stops and finding the best exits.   The way Forex traders use Parabolic SAR is by simply setting a Stop loss order at the level of the most recent SAR dot appearing on the chart. Stop is then trailed along with each new Sar dot till trend remains intact. Once Parabolic SAR indicator changes its position - SAR dots appear on the opposite side of the price - the trade is closed.   Welles Wilder doesn't recommend using Parabolic SAR as a stand alone indicator. The main reason for that is: Parabolic SAR can easily create whip-saws (false signals) during periods of market consolidation. The Parabolic SAR works best during strong trending periods, which Wilder himself estimates occur roughly 30% of the time. Thus Forex traders will need other Forex indicators to identify those strong trending periods. For himself, Welles Wilder developed ADX indicator - another trend indicator - which tells what kind of trend is dominant and how strong the trend is. Upon knowing the trend and its health Forex traders can pick appropriate signals from Parabolic SAR and disregard the rest.   How do you determine the trend if you don't want to use ADX. Try 50 EMA. Price readings above it would suggest an uptrend, below - downtrend.   Parabolic SAR settings   So, Parabolic SAR is developed to keep stop loss level moving adjusting to new prices and thus locking profits on its way. The formula of Parabolic SAR includes an "acceleration factor", which allows to react to market changes fast as the trend starts to accelerate. At the beginning, new Parabolic SAR dots are placed close together and then accelerate as the trend advances.   Parabolic SAR has two variables: a step and max step. Settings recommended by W.Wilder are: a step of 0.02 and the max step of 0.2. The step sets sensitivity of Parabolic SAR indicator. If the Step is too high, Parabolic SAR becomes more sensitive and will flip back and forth more often, with lower step Parabolic SAR will become smoother. Maximum step sets a cushion between price and Parabolic SAR. The higher the max step the closer the trailing stop will be to the price.   Parabolic SAR - useful tips:   Tip 1:When space between Parabolic SAR dots increases significantly, it indicates that acceleration formula for SAR is already working. Thus, if you have missed out on an entry, it might be better to avoid late entries at all and rather wait for an opportunity to re-enter the trade with a help of, for example, Stochastic indicator.   Tip 2:Parabolic SAR is only a mathematical interpretation of the price. Even though it helps to identify initial place for a Stop, it may not be the final or best one sometimes. Forex traders who also look at support/resistance levels, round numbers, trend line etc may find even better place for Stops to be set.   Parabolic SAR indicator Formula      

Posted by angelacomes

100% NEW 2019 - NEURO DETECTORLatest Neural Network Technology 2019Download FileTechnology of Neural Networks - You will not find the second such indicator predicting the direction of the market movement so precisely! No delays, no signal rewriting.24/7 Global Market Analysis - It doesn’t matter where you live or what time you want to trade, the indicator analyzes the market around the clock, so you can work anytime and anywhere.Number of Signals - The indicator can work simultaneously on all currency pairs. More signals at the entrance!Convenient to Use - Due to its clarity and informativeness, this indicator is surprisingly simple and easy to use.Always High Accuracy - Signals are always specific and never redrawn!Signal Quality - The indicator has been tested by over 3000 people, the accuracy of the signals has been proven!No Defects - NO lag. NO delays. NO rewrite.Quick Start - This indicator is very easy and quick to install. Installation and full launch of the indicator do not require additional knowledge and take only two or three minutes.Multi Asset Setup - The indicator is configured to work on cross currency pairs. Increase the number of reliable signals.Signal Accuracy More than 82% - Extremely high signal accuracy, trading on all timeframes!Bonus - Additional secret indicator ($).

Posted by dionnabown

See Why the WaveTrend is the Most ConsistentlyProfitable Trading Indicator Money Can Buy,and Why it’s Such a No-Brainer to Make Sure YouHave it in Your Metatrader Trading Arsenal.”The WaveTrend Calls Reversals with Precise Accuracy The WaveTrendDOES NOT REPAINTDOES NOT PAINT IN ARREARSWaveTrend Reversal Dots Paint at the Close of the Current Candle… Just the way we Want Them!!The WaveTrend is a Leading IndicatorNot Lagging like Most Other IndicatorsThis indicator original price 49$ at mt4 market. But im going to give for free. So enjoy your profit ..

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Posted by leeroberts

This adviser gives very good results. The author of the adviser gave a week to test it only on a demo account. Try and give your feedback. Trend Hunter is a Trend Following EA. It is a conservative EA. and this EA not take entry randomly. When signal comes then EA will take entry. You no need to run this EA any selective pairs. EA has ability to analysis 35 currencies from one chart. A user can change it conservative to aggressive settings. We give all the files to users. So a user can use it his suitable settings. In ttl it is a User Friendly Robot.EA can monthly return 30-60%DD is depends on users. How much his balance and how much he want to take risk. On average EA DD 10-30% maximum.

Posted by marlonadkins

Upgrade for Urakan, now price action only, fuck the bloody late indicatorgoing somewhere nothing else , no glossy fab scalpersGb H4.

Hey Buddys ,today I'm sharing with you a pretty simple EA that I'm using to manage my trades. It works also pretty well with other profit scalping and maritangle EA's to reduce the risk of trades.It can:1. Manage your loss / winn & stop your trades & EA's on a special point of loss / profit in 1.1 Pips1.2 Percent1.3 Amount / Money​ 2. Manage Trailing stops3. Many others Here is the full way to use it: Double-click the script to execute or attach it to the desired chart Once started EA will start monitoring current account equity and all upcoming closed trades You can set EA to close all trades and disable all EAs when account equity reaches a certain loss or profit level in percent, money or pips. You can choose multiple options like close all trades when account reach certain profit in percent or certain loss in money. You can set EA to close all trades and disable all EAs when certain cumulative profit or loss level is reached in money or pips. Profit or loss target in money depends on your account currency. If you have USD account, profit/loss target will be in USD, if your account is in USD, profit/loss target will be in USD. By default EA will manage all trades running on your account, but you can override this by setting certain magic number in EA settings. All values must be positive. By default EA is set to disable all Expert Advisors on equity trigger. This means that after EA will close all trades it will try to disable all EAs by virtually clicking “Expert Advisor” button on your Metatrader toolbar. This will disable all EAs including Equity Sentry and no trades should be opened by any EA until manual intervention. Note that we can not guarantee that this will affect all EAs. Some EAs (like for Renko or other offline charts) work in different mode and they can not be disabled until removed from chart. You can set EA to use Trailing Stop and/or BreakEven function on your trades. Here is the explenation of all settings:DisableAllExpertAdvisorsby default this is set to true and it means that EA will disable all Expert Advisors on equity trigger or certain cumulative profit/loss reached. This means that after EA will close all trades it will try to disable all EAs by virtually clicking “Expert Advisor” button on your Metatrader toolbar. This will disable all EAs including Equity Sentry and no trades should be opened by any EA until manual intervention.CloseMetatraderCompletelyby default this value is set to false. If you set it to true EA will close MT4 platform completely on equity trigger or certain cumulative profit/loss reached. This is very useful if you use trade copier software to receive trades as most of the trade copiers does not stop operating when “Expert Advisors” are disabled.EquityLossPercentwhen account loss equity in percent will reach this value EA will close all trades. Set this value to zero to disable itEquityLossMoneywhen account loss equity in money (account currency) will reach this value EA will close all trades. Set this value to zero to disable itEquityLossPipswhen account loss equity in pips will reach this value EA will close all trades. Set this value to zero to disable itEquityProfitPercentwhen account profit equity in percent will reach this value EA will close all trades. Set this value to zero to disable itEquityProfitMoneywhen account profit equity in money (account currency) will reach this value EA will close all trades. Set this value to zero to disable itEquityProfitPipswhen account profit equity in pips will reach this value EA will close all trades. Set this value to zero to disable itMagicNumberthis is where you set magic number. If set to zero (default), EA will manage all trades. Set this variable to a certain value and EA will manage only the trades with the specified magic numberCumulativeLossMoneywhen cumulative profit/loss amount in money (account currency) will reach this loss level EA will close all trades. Set this value to zero to disable it. Value must be positive.CumulativeLossPipswhen cumulative profit/loss amount in pips will reach this loss level EA will close all trades. Set this value to zero to disable it. Value must be positive.CumulativeProfitMoneywhen cumulative profit/loss amount in money (account currency) will reach this profit level EA will close all trades. Set this value to zero to disable it. Value must be positive.CumulativeProfitPipswhen cumulative profit/loss amount in pips will reach this profit level EA will close all trades. Set this value to zero to disable it. Value must be positive.TrailStopStartPips and TrailStopMovePipsEA will activate Trailing Stop function when trade goes in profit by pips value set in TrailStopStartPips. Once activated EA will move stop loss in profit every pips value set in TrailStopMovePipsBreakEvenStartPipssets how many pips trade should get into profit before stop loss is moved to the entry price. BreakEvenMovePips is used to set how many pips EA must add to the entry price if you want your trade to be closed in profit on reverse.Happy & Save trading!

Posted by antwanbedgood

Dear Friends in Journeyforex, I am back again with yet another release from me, Now this time, its 100% profitable and making a monthly returns of 20% minimum with low risk. I am posting the EA in this for you and just follow the instructions. Use it for your accounts and Enjoy ! you will not be disappointed.Attached Files :1. Keltner Channels Indicator [ Copy this File into Indicators Folder of MT4 datafolder ]2. KeltnerVersion 3 EA [ Copy this File into Experts Folder of MT4 datafolder ]

Posted by eloaizabel

The Robot or Expert Advisor (EA), MF Trend Trader is designed to use the currency movement trend.It uses two indicators in 4-hour Grafica to determine the automatic operations.The two indicators of the program are; A Bandit MA set to 27 (3) and another Bandit MA set to 50 (3).It will buy automatically when the price is above Bandido 27 and Bandido 27 is above Bandido 50. Automatically sell when the price is below Bandido 27 and Bandido 27 is below Bandido 50.This robot will automatically enter into commerce with each 4 hour stage and will seek to charge 13 pips of each move, unless the operator adjusts it differently.The MF Trend Trader 27-50 Robot works better and is more profitable in accounts that have Hedge ability (play both sides at the same time).Included is the indicator template used by the Robot for Metatrader 4 platform.All rights reserved to Maestro Forex.