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  1. Full article: Water Investment review
  2. Full article: FinanceNova Review
  3. click here to read the full article
  4. http://collectiveinvestmentsforum.com/news...er-review.xhtml
  5. ForexYard seems to be a very good platform, both for beginners who are interested in getting started with Forex and for those who have been trading Forex for quite some time. ForexYard seems to focus a lot on educating individuals which can be a real plus whenever it comes to learning a trading system, such as this. As far as options are concerned, they have plenty of these available as well. These include competitive fixed spreads, lots of choices for currency pairs, no price-freezes, negative balance protection and daily reports and articles. A big bonus is that they allow you to trade in Gold and Crude Oil... right inside their system. These are options that many people are now looking for. Judging by the number of tutorials that are available on the website, they will come people who are totally new to Forex trading. They also have plenty of professional material on their website as well as some advanced options that the pros would appreciate. ForexYard offers two different things that we consider to be absolutely necessary in any trading platform, customer support and all the help you need to gain more knowledge. It doesn't matter how long you have been trading on the Forex market, you will never get tired of knowing that you can pick up the phone, 24 hours per day and talk to someone about your account. The tutorials on ForexYard are also top notch and will help everyone, from the raw beginner to the seasoned trader.
  6. Sellers are ASKing for a high price Buyers are BIDding at a lower price Trading is an auction Slippage occurs with most Market Orders The difference between the ASK and the BID price is the Spread A Trader must understand what each order is and does and what part it plays in capturing profit. As a Trader on the FOREX you use three types of orders: a Market Order, a Limit Order, and a Stop Order. The two primary orders you should use for entering and exiting the market are a Limit Order and a Stop Order. Once you have placed your order to enter the market, there are two procedures to that your need to understand. These are: One- Cancels-the-Other (OCO) and Cancel-and-Replace. Properly executing your orders and understanding these procedures play a very big part in your profitability. Remember: all good carpenters carry a toolbox. The sharper his tools and the more skilled he is at using them, the more effective he is. The sharper you are as a trader the more effective and profitable you will become. The following explains in detail what each order does. You must clearly understand what each order does before you start to execute your orders. Market Orders: A Market Order is an order that is given to a broker to buy or sell the currency at whatever the market is trading for at that moment. It can be an entry order into the market or an exit order to get out of the market. Traders use Market Orders when they are ready to make a commitment to enter or exit the market. You must be very careful when using Market Orders in fast moving markets. In fast rallies or down reactions you can gain or lose many points to slippage before you receive your fill. Trading is an auction where there are buyers (bidders) and sellers (offerers). The bid is the "buy" and the "ask", or offer is the sell. Slippage is defined as: when a trade is executed between a buyer and seller and the resulting buy or sell transaction is different than the price you saw just prior to order execution. With Market Orders you will lose on average one to six pips, if not more, due to slippage. Market Orders are rarely filled at the exact price you are expecting. We Recommend caution when entering or exiting with a Market Order. Limit Orders: Limit Orders are orders given to a broker to buy or sell currency lots at a certain price or better. The term Limit means exactly what it says. You will buy at that exact limit price or better a large majority of the time. Limit Orders are used to enter and exit the market. They are generally used to acquire a specific price, avoiding slippage and unwanted order fills (execution price) which can happen with Market Orders. When you sell above the market, it is a Limit Order. When you buy below the market, it is a Limit Order. A limit order will be executed when the market trades through it. Seventy to ninety percent (70% to 90%) of the time, if the market is trading at your Limit Order it will be executed. The market must trade through you specified Limit Order number to guarantee a fill. The computer will notify you within seconds of your fill. You do not have to call your broker to see if you have been filled. Stop Orders: Stop Orders are orders placed to enter or exit the market at a desired specific price. When you buy above the market, it is a Stop Order. When you sell below the market, it is a Stop Order. Stop Orders turn into Market Orders when the market trades at that price. Stop Orders as well as Market Orders are subject to slippage, while Limit Orders are not. The majority of Stop Orders are used as protective Stop Loss Orders. It is the order you place with your entry order to insure an exit when the market goes against you. A good trader never trades without a protective Stop Loss Order. They are orders executed to get you out of the market when your trade has gone against you. Protective Stops are discussed separately as one of the 10 Keys to Successful Trading. One Cancels the Other (OCO): Whenever you enter the market, you must exit the market at some future time. An OCO order is a procedure and means one-cancels-theother. Once you have entered the market, you should place a protective Stop Loss Order and have in mind a projected profit target. That projected profit target can be your Limit Order. If you simultaneously place both Limit and Stop Loss Orders when you enter the market, you can OCO them and walk away from your computer. What does that mean? At some future point in time either your Stop Order or Limit Order will be executed, automatically canceling your opposing order. If the trader is so sure about the trade, he can execute an OCO order and walk away from the trade. The computer will than manage the trade. Cancel/Replace Orders: A Cancel/Replace Order is a procedure and not an entry or exit order. By definition it is when the trader cancels an existing open order and replaces it replace it with a new order. A cancel/replace order is primarily a strategy of trading and is predominately used after one has taken a position in the market and wants to stay in the market locking in profit. For example: you buy Swiss at 1.410. Your protective Stop Loss Order is 1.390. The market moves in you direction as projected. You now want to reduce your potential loss, so you cancel your Stop Order at 1.390 and replace it to 1.410 where you got in. You are now in a trade with no risk. As the market moves further north in your direction, you now want to lock in more profit. You cancel your 1.410 Stop Loss Order and replace it with a new 1.440 Stop Loss Order. You now have locked in 30 Pips in profit. You are in an all-win, no-risk trade. You keep canceling and replacing your Stop until you are finally stopped out.
  7. Great thread here, I think we all need to do some good from time to time :Hot:
  8. Thanks for joining our community. If you have any suggestion please tell us. New features will be added to our forum soon.
  9. In a sense, every successful trader employs money management principles in the course of forex trading, even if only unconsciously. The goal of this thread is to facilitate a more conscious and rigorous adoption of these principles in everyday trading. For many forex traders, the forex market is a game of balancing fear, greed and hope. When a trader is out of balance, he likely will lose money, and if he is out of control, he will lose balance. Well-designed money management concepts can help to keep the trader in control at all times. Trading FOREX involves three interrelated, yet somewhat separate operations: 1. Analysis of when and at what price level a market will top and bottom. 2. Market Entry and Exit – the actual buying and selling (or trading) once the decision has been made. 3. Money Management, perhaps most aptly called the art of survival. Most forex traders spend 99% of their time on analysis and the buying and selling of currency pairs. Many of these traders ultimately join the legions of ex-forex traders because they ignored the most important aspect of speculation – money management. You can be a good analyst and lose money trading due to poor money management. But, if you have sound, market-proven money management concepts, and the discipline to follow them, you will never lose all of your money. There is no guarantee that you will make money using these money management rules, but you will never lose the farm. Before entering the market, determine a stop/loss as a profit objective Many traders often enter the market with a price objective, but without a clearly defined protective stop. When the market moves against them they are often forced out of the size of their margin call. They lose control, and the results are often disastrous. What should have been a relatively small loss becomes an extremely large loss. With a pre-determined price objective and a pre-determined stop/loss, you know where you will get out if you are wrong and where you will get out if you are right. You have control. The stop/loss must be in the market, not in your mind. If you have been stopped out only to have the market make the move without you, the problem was how you determined where to place your stop, not whether to use stops. Never risk more than 10% of equity on any single trade. If possible, risk 5% or less. Never risk more than 20% in any one complex. If you are like most traders, you always figure how much you could make. The question of how much you could lose if you are wrong is never quantified. You are out of control. The most important question in trading leveraged markets is – How much of your equity is at risk? On any given day, for any given trade you must know how much you will lose if the market goes against you. You can maintain control by never risking more than 10% in any one trade, and by adjusting stops so you are never risking more than a maximum of 20% of open equity at any time.
  10. As you know there are to ways of analyzing the forex market: Technical and Fundamental Analysis. Personally, I think that for short term trading the Technical Analysis is very useful and the Pivot Points are indicators used in this theory. Pivot points are based on a mathematical formula originally developed by Henry Wheeler Chase in the 1930s. Chester W. Keltner used part of the formula to develop the Keltner Bands as described in his book - How to Make Money in Commodities (Keltner Statistical Service, 1960). However, it was really Larry Williams who was credited with repopularizing the analysis in his book - How I Made One Million Dollars Last Year Trading Commodities (Windsor Books, 1979). Don Lambert, the creator of the Commodity Channel Indicator (CCI) uses the pivot point formula that makes the CCI work. You can make develop your own trading methods using pivot point analysis combined with candlestick patterns, including the advantage of trading using multiple time frames, or what is know as a confluence of various target levels based on different time periods. This topic will highlight those techniques as well as explain how to incorporate the pivot point as a moving average trading system and how to filter out and narrow the field of the respective support and resistance numbers and will divulge various formulas that are popular today. Pivot points are a mathematical formula designed to determine the next time period’s range based on the previous time period’s data, which includes, the high, the low, and the close or settlement price Using these variables from a given time period’s range is that will reflect all market participants’ collective perception of value for that time period. The range, which is the high and the low of a given time period, accurately reflects all market participants’ exuberant bullishness and pessimistic bearishness for that trading session. The high and the low of a given period are certainly important, as they mirror human emotional behavior. Also, the high is a reference point for those who bought out of greed, thinking that they were missing an opportunity. They certainly won’t forget how much they lost and how the market reacted as it declined from that level. The opposite is true for those who sold the low of a given session out of fear they would lose more by staying in a long trade; they certainly will respect that price the next time the market trades back at that level, too. So the high and the low are important reference points. With that said, the pivot point calculations incorporate the three most important elements of the previous time period: the high (H), the low (L), and, of course, the close © of a given trading session. First, let me give you the actual mathematical calculations, and then I will go over what each level represents. Pivot point the sum of the high, the low, and the close divided by three. P = (H + L + C)/3 Resistance 2 (R-2) pivot point number plus the high minus the low. R-2 = P + H – L Resistance 1 (R-1) pivot point number times two minus the low. R-1 = (P × 2) – L Support 1 (S-1) pivot point number times two minus the high. S-1 = (P × 2) – H Support 2 (S-2) pivot point number minus the high plus the low. S-2 = P – H + L Some analysts are adding a third level to their pivot calculations to help target extreme price swings that have occurred on certain occasions, such as a price shock resulting from a news event. You can notice that the spot forex currency markets tend to experience a double dose of price shocks because they are exposed to foreign economic developments and U.S. economic developments that pertain to a specific country’s currency. This tends to make wide trading ranges. Therefore, a third level of projected support and resistance was calculated. Resistance 3 (R-3) the high plus two times (the pivot minus the low) R-3 = H + 2 × (P – L) Support 3 the low minus two times (the high minus the pivot) S-3 = L – 2 × (H – P) or R-3 = P – S-2 + R-1 S-3 = P – R-2 – S-1 There are other variations that include adding the opening range, which, in this case, would involve simply taking the sum of the high, the low, and the open, and the close and dividing by four to derive the actual pivot point. P = (O + H + L + C) /4 Since there is no formal closing and opening range, forex traders can use the N.Y. bank settlement as the close at 5 P.M. (EST) and assign the next day’s session open as 5:05 P.M. (EST). The following list shows what these numbers represent, how price action reacts with these projected target levels, how the numbers would break down by order, what typically occurs, and how the market can behave at these levels. Keep in mind that this is a general description, and we will learn what to look for at these price points to spot reversals in order to make money. I must stress that it is important to look at the progressively higher time period’s price support or resistance projections; for example, from the daily numbers, look at the weekly figures; and then from the weekly numbers, look at the monthly numbers. The longer the time frame, the more important or significant are the data. Also, it is rare that the daily numbers trade beyond the extreme R-2 or S-2 numbers; and when the market does, it is generally in a strong trending condition. In this case, we have methods to follow the market’s flow, and we will cover them in more detail in the next few chapters. Remember, pivot point analysis is used as a guide; these numbers are not the holy grail. By focusing on just a few select numbers and learning how to filter out excess information, I eliminate the analysis paralysis from information overload. Resistance Level 3 This is the extreme bullish market condition generally created by news-driven price shocks. The market is at an overbought condition and may offer a day trader a quick reversal scalp trade. Resistance Level 2 This is the bullish market price objective or target high number for a trading session. It generally establishes the high of a given time period. The market often sees significant resistance at this price level and will provide an exit target for long positions. Resistance Level 1 This is the mild bullish to bearish projected high target number. In low-volume or light-volatility sessions or in consolidating trading periods, this often acts as the high of a given session. In a bearish market condition, prices will try to come close to this level but most times will fail. Pivot Point This is the focal price level or the mean, which is derived from the collective market data from the prior session’s high, low, and close. It is the strongest of the support and resistance numbers. Prices normally trade above or below this area before breaking in one direction or the other. As a general guideline, if the market opens above the primary pivot be a buyer on dips. If the market opens below this level, look to sell rallies. Support Level 1 This is the mild bearish to bullish projected low target number in light-volume or low-volatility sessions or in consolidating trading periods. Prices tend to reverse at or near this level in bullish market conditions but most times fall short of hitting this number. Support Level 2 This is the bearish market price objective or targeted low number. The market often sees significant support at or near this level in a bearish market condition. This level is a likely target level to cover shorts. Support Level 3 In an extremely bearish market condition, this level will act as the projected target low or support area. A price decline to this level is generally created by news-driven price shocks. This is where a market is at an oversold condition and may offer a day trader a quick reversal scalp trade. Weekly and monthly time frames can and should be utilized as well as the daily numbers you may be used to or have heard about in the past. To understand how price moves within the pivots, begin by breaking down the time frames from longer term to shorter term. As traders, we should begin with a monthly time frame, where there is a price range or an established high or low for a given period. This range, with its price points, is what we as traders should be looking for. Here is how I utilize the range in my research. There are approximately 22 business days, or about 4 weeks, in each month. Every month there will be an established range - a high and a low. There are typically five trading days in a week. Now consider that in one day of one week in one month, a high and a low will be made. It is likely that this high and low may be made in a minute or within one hour of a given day of a given week of that month. That is why longer-term time frames, such as monthly or weekly, should be included in your market analysis. In the world of 24-hour trading, the most popular question I get from those studying and using pivot points is, “What are the times that you derive the high-low-close information?†There are many different people telling many different stories. Here is what I do and what seems to work the best for me. For starters, just keep things simple, and apply some good oldfashioned common sense. If the exchanges and the banking system use a specific time to settle a market, then that is the time period that should be considered for a “close.†They should know those are the rules that make money move. I want to follow the money flow and be on the same time schedule as the banks and institutions, so here are a few pointers: - Use the 5 P.M. (EST), New York bank settlement close to determine pivots. - For the weekly calculations, take the open from Sunday night’s session and use the close on Friday. - For the monthly calculations, take the opening of the first day of the month and the close from the last day of the month.
  11. Hello, I’m Gabriel one of the new owners of CIF. In this topic you will get information about how to use Pivot Points in foreign exchange trading. If you are new in Forex Trading please visit Forex For Noobs section of our forum.
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