Using Forex Signals To Navigate The Forex market
There are dozens of national currencies being traded full time on the foreign exchange, and nobody can potentially monitor them all at the same time. That’s why many traders depend on currency exchange signals to keep them apprised of movement in the market.
Many brokers and other forex-related enterprises offer currency exchange signals to subscribers. Currency exchange signals are simply suggestions to sell or buy based primarily on mathematical routines and professional know-how. Sometimes these signals include specific entry, stop and target levels. They might say something similar to, effectively, “Right now the EUR / Dollars bid is at 1.2529 and dropping. When it gets to 1.2465, sell. “
Currency exchange signal suppliers often charge for their service, sometimes as much as $100 a month. For this the customer gets 1-5 signals a day, sent through e-mail, SMS message or instant messenger. The trader is under no need to do anything with the info, of course. They are advisory in nature, and the trader is free to overlook them wholly if he wants to. But most traders generally go with the advice that comes to them through currency exchange signals. They wouldn’t pay for the service if they didn’t find the advice useful.
There are two schools of thought about currency exchange signals. One announces that you’re a sucker if you pay for them, with the reasoning that if the folks behind them are so good at playing the market, why do they have to sell signals to make a living? The opposing point of view says that since signals need research and experience to create, why shouldn’t the people who distribute them receive payment for their efforts?
If you do choose to pay for a signals service, you need to get a test subscription first. Be dubious of a service that won’t give you a no-cost trial period prior to starting paying, or that only offers a testing period of a few days. ( What do they have to hide? If their service is good, showing it to you for a week or two will only help sell it to you. )
On the other hand, one maxim usually is true : You get what you pay for. Sites which offer free currency exchange signals won’t be as trusty or experienced as the professional sites. And in either case, you should not blindly follow the advice of currency exchange signals. A smart investor will look at the trends himself to make sure he agrees with the signals he was given. The choice to purchase or sell is finally his, after all.
To ensure economic independence, one can no longer rely on a single source of income. For the past many years, people are tacitly following the strategy of raising the income, through different sources. The mindset arose primarily because of significant economic upturns that can negatively affect anyone’s pocket.The need of more sources of income is addressed in a variety of ways. Some save more now, and try to earn higher returns in blue chip stock investments, others try a business. A more subtle and easier way for the current generation of household earners is online Forex trading. Previously it had been considered a much complex task; however its complexity has been reduced manifold by many competing brokers who offer their services in this regard.Using Forex as source of income, many people have been successful in arranging thousands of additional dollars for their pocket. What’s more, forced by the lucrative profits and intense competition, many brokers have been offering schemes that one cannot afford to ignore. The brokers know very well how profitable the trades can be in the derivatives market. That is why some go beyond nominal levels of service, and encourage their clients to learn, adapt, train and practice trading Forex. They let you use premium algorithms set out to give signals for trading. They even encourage social connections among thousands of traders. This enables novice traders to obtain views and tips from professional traders.There are many platforms, which have been hard and successful at helping the Forex traders. Such platforms are offering more than a plethora of services to their clients. These types of websites offer the clients to collaborate with them in earning more. This collaboration is subtle and comes with platform’s own patronage, in the form of initial investment and practice. It is a win-win situation for the traders. Some will pitch such collaboration as the sleeping partnership, where the platform invests money, and the trader does the work for profits.There are brokers which offer hefty Forex no deposit bonuses to its clients. For example, up to $500 can be obtained in bonuses, depending on the amount being invested by the trader. If one open’s an account without any deposit, he gets $100 from the broker, for trading. That is done when the trader is able to prove that he is in the business for good. Once the funds have been released, the traders are allowed to make X number of trades with the free $100 Forex bonus. After the X trades are done, broker reviews the trader’s statistics. If they are good, the website offers the trader an opportunity to use its money, make profitable trades with it and share the profits.With the help of bonuses, you do not have to worry about initial capital even. All you need is an attitude that is formed up to learn about Forex and apply that learning, vigorously.
Currency or Forex trading is almost exclusively undertaken on-line in the modern marketplace. Investors can trade seamlessly from their desktop PC or from a mobile device using the same platform and login. See our platforms page for details. Modern technology has put the trading environment and associated data quite literally into the palm of our hands. The best way for many investors to keep track of and understand this data is via a Currency Chart. A chart is visual record of the price action of a currency pair or other instrument, that is drawn over a fixed period of time. For example a week, a month or a quarter. The Currency Chart records the rise and fall of the price of a currency pair or cross. Which means traders can easily spot and identify traits, such as support and resistance levels and high low points in the price, during the period the chart is drawn over. The use and study of charts is known as Technical Analysis – this discipline sits somewhere between an art and a science. The charts themselves being mathematically derived whilst their interpretation can be a subjective thing. Chart types Modern trading platforms such as the Blackwell Trader MT4 offer their users a high quality charting package as part of the software. These tools are available free of charge are intuitive to use and yet are highly configurable. To the extent that they can be customised to meet a client’s specific requirements. That said currency charts will usually take one of three standard formats these are : 1. Line chart : A line chart is the simplest form or plot of the three styles. The line records the price of currency pair or other instrument at fixed points in time for example every five minutes.The line chart is effectively joining together a series of points or plots, drawn at the end of the specified period,which are displayed in chronological order. This type of data is known as a time series : See the image below. 2. Bar chart : The bar chart is a more sophisticated method of recording price data, of for example, a currency pair. The bar chart contains more information than is displayed in the simple line chart. Bars are drawn vertically and once again track price changes for a given length of time, for example over 15 minute periods. Each new bar is displayed to right hand side of the prior one i.e. in a time series. Rather than just being a series of discrete points on a page, the bar chart captures the high price, the low price, as well as the opening and closing prices of the instrument as at the beginning and end of each period measured. The high and low points represent the top and bottom of the bar whilst the open and close form horizontal pegs attached to the bar. (Note that the positions of the open and close pegs are determined by direction of the price during the sample period). The additional data recorded in the bar chart means that users can make now direct comparisons between individual periods and the data points contained within them. Potentially allowing them to identify trends and other price patterns. See an example below. 3. Candle chart : Candle charts are in effect an extension of the bar chart. Though they were developed independently of them and have their origins in the rice markets of 18th century Japan. The candlesticks, as the individual objects within a candle chart are known, are usually comprised of a body and two wicks or shadows. Each candle records and displays the high, low, open and close data for a given period of time. However candles have an extra dimension than the markers in a bar chart and a such as can impart more information. For example the candles body is often colour coded to reflect whether the price of the underlying instrument rose or fell in that period. Classically a white or unfilled body represents a price rise during the period recorded whilst a black body in the candle signifies that the price fell during the period of observation.(Other colour schemes may also be used). The size and shape of a candle’s body will also vary, reflecting the size of the price range within the given period. As such candle charts often form patterns that traders look for and use as an aide to their trading. Some examples of candlestick patterns Thanks to their Japanese heritage candlestick patterns have some exotic sounding names, some examples of which can be found below. These are just a few of patterns that Technical Analysts look for. And spotting and interpreting them is the art form within the discipline. A subject on which may papers and books have been written. Drawing lines Many traders like to draw lines on their Currency Charts. They do this to help them visualise what has happened and what may happen in future to the price of a currency pair or other instrument. These lines would usually fall into one of three main categories which are. Trendlines: A trend line is used to describe a prevailing price trend in a instrument. The trend line connects a series of higher or lower highs, or higher or lower lows depending on whether you are plotting an up or downtrend and or the top or bottom of that trend. When drawn on a candle chart the trendline will be drawn, or placed, so as to connect upper or lower wicks and will classically connect at least three points via a straight line. Two parallel trendlines, one above and one below the charts candles are sometimes drawn to visualise a trend channel. Trend lines and channels are often extended beyond the lifetime of the current chart, in an attempt to predict the future path of price action. Price moves above or below a prevailing trend or channel are generally of a great interest to Technical Analysts and traders. Support and Resistance : These lines are often drawn across the main body of chart to highlight areas in the chart, at which the price of the currency pair has encountered a barrier. In the case of a move lower which is curtailed, this barrier is known as support. Whilst a price barrier encountered in a move higher is known as resistance. These barriers can be formed at the same price point on subsequent occasions, within time series data, forming horizontal support or resistance. Or if they occur during periods when the price slopes away, either higher or lower then they will be considered as trend support or trend resistance. Fibs, Fans and Scans : These are lines that are often drawn using a specific mathematical criteria. For example the Fibonacci series . They are used to measure previous price action and make predictions about future price behaviour. Other studies such as Gann fans apply geometry(via a fan of nine lines) to a price chart to identify existing trends and potential future price direction. Other linear studies include Andrews Pitchfork and Cycle Lines. All of these studies and more are included and available free of charge in our trading platforms charting package. You can register for either a live trading account or a free demo trading account by clicking on these links. Once you have opened your account simply download our free state of the art platform Blackwell Trader MT4 which is available for both PCs and Android or iOS mobile devices. Once done you can start creating and exploring your own Currency Charts. Indicators Traders will often add indicators to their currency chart to allow them to get a better understanding of how the price action is performing and to predict what may happen next . Blackwell Trader MT4 is preloaded with literally dozens of indicators, many of which can be configured to meet user specific needs In general these indicators are designed to track one of three main types of variables which are the sentiment towards and the money flow into an instrument. The price momentum of the instrument and the speed at which this develops or disappears. Or the instruments price performance relative to a price average or other statistical measure and whether these averages are themselves rising, falling,converging or diverging. The image below shows a selection of indicators applied to a currency chart. Blackwell Global clients can explore currency charts and the wide variety of indicators within our trading platform by opening one of our Demo trading accounts and downloading our Blackwell Trader MT4 platform. You will then be able to create as many different Currency Charts as you wish. Mixing timescales chart styles and indicators and familiarise yourself with drawing trendlines and identifying support and resistance levels etc.
While not everyone may agree that money makes the world go round, it is still important for money to flow around the world. Finance markets make money circulate from place to place and one of these currency markets is foreign exchange trading, also known as Forex Trading.Why Is There Even a Forex Market?The foreign exchange market mainly exists for the assistance in currency exchanges for international corporations. These companies have a constant need for currency trades for the use of payrolls, payments for goods and services, etc. These actual needs, however, cover only a portion of the market and majority of the trades are actually just speculative. In this market, trades are made based on the rise and fall of market values of the tradable goods; in this case it’s the currencies. This is why the foreign exchange market can be greatly affected by news on politics and economics.Making Profit Out of Selling NothingPeople earn by buying or selling currencies depending on what direction the market is going. To profit, you must buy a currency, then sell it when the price increases – or you can also sell a currency and buy it back when its price decreases. As with any other market, prices adjust depending on the supply and demand of what you are trading.In forex trading, you’re basically buying or selling nothing because there are actually no physical currencies being traded. It is a speculative market and everything can be done on a computer. Forex trades can be made anywhere with an internet connection. Trades are done online, and they’re open 24 hours a day and 5 and a half days every week.How Do You Buy Currency?In order to buy something, you must first learn its price and when two currencies are being exchanged, it’s confusing to know what the price is at first. This is why one must learn about currency pairs.Currency pairs indicate the two currencies being exchanged. The price is the exchange rate or how much of one currency is needed to buy 1 unit of another. In each exchange, there are two currencies involved but there is only a single price.There are four major currency pairs being traded in the foreign exchange market:The Euro and Dollar or EUD/USDThe Dollar and Japanese Yen or USD/JPYThe British Pound and Dollar or GBP/USDThe Dollar and Swiss Franc or USD/CHFThere are other different currencies being used but these four are used by the majority.Getting to know the very basics of forex trading gives one a foundation in learning more about this finance market. “Foreign exchange trading may be hard to grasp at first – and the concept of trading “nothing” may be a new thing to most and may be scary to invest in, but forex trading is a big need for multinational trades and this proposes a stable future” quoted by an analyst from MTrading.eg, an Egypt Forex broker. There will always be a necessity for currency trades and there may be endless opportunities to get hands-on with foreign exchange trading.