FXbootcamp London Outlook 09.30.2009

Hi everyone.

In this outlook I cover a multitude of pairs including the Euro USD, Euro Pound, Euro Yen and Pound Yen. Both the Yen set ups are almost identical; simply looking to meet the daily downtrend and trade with it. The Euro on the other hand is a little more of a complicated read, for the time being we are in a 4 hr channel, however I don’t expect that to last forever and I look at some breakout possibilities. I hope you enjoy the video!!

David Pegler


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

The Hammer Candlestick Pattern

Hi all,

Today I am excited to show you a classic candle reversal pattern "The Hammer" that has just been spotted...as I've mention in my recent blog, this is a warning of a reversal in the works...so lookout everyone...this is something that you should look into...use all the fundamentals & technical indicators to determine your deciscion on be it to enter or watch this trade unfold...Goodluck to us all !!!

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Forex Wrapup 09.29.09

Written by Andrew Spanton, GlobalFXRadio

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Tech Talk 09.29.2009

Written by Joel Kruger, Technical Currency Strategist

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Trade Results

Open Positions : 1

Closed Positions : 1

Total Pips Earned : 81

Total Profit Earn : 81.00

Just a small amount that I can get from this week trade...prices are always on a pullback as technical analysis is still not accurate...

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

camp London Outlook 09/29/2009

Hi everyone, for today’s presentation I stick with the majors and analyze the Pound USD, Euro USD and Euro Pound. The Pound has hit some significant support on a weekly chart so the question for us over the next 48 hours is whether we are going to see a significant pullback or is price determined to continue to the short side? All three currency pairs today are looking trapped on the medium term and I make use of some simple price traps to determine direction. Good luck!!

David Pegler

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Morning Star Formation Spotted

Hi All...

Here is an example of a "Morning Star Formation" which was spotted last week, too bad I was not trading last week as some foreseen circumstances have occur...nevertheless, I just wanted to show you the depth & possibility of recognizing such candlestick pattern & what it can do for us in determining our deciscion in placing a trade...We would have easily made 200 pips...

Too Bad I missed that one...

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 4

Stars

These candlestick formations consist of a small real body that gaps away from the real body preceding it. The real body of the star should not overlap the prior real body. The color of the star is not too important, and they can occur at either tops or bottoms. Stars are the equivalent of gaps on standard bar charts

Stars make up part of four separate reversal patterns:

- Morning Star
- Evening Star
- Doji Star
- Shooting Star (Inverted Hammer)

******

Morning Star -- this is a bullish bottom reversal pattern. The formation is comprised of 3 candlesticks. The first candlestick is a tall black real body followed by the second, a small real body, which gaps (opens), lower (a star pattern). The third candlestick is a white real body that moves well into the first period's black real body. This is similar to an island pattern on standard bar charts.


Evening Star -- a bearish top reversal pattern and counterpart to the Morning Star. Three candlesticks compose the evening star, the first being long and white. The second forms a star, followed by the third, which has a black real body that moves sharply into the first white candlestick.


Doji Stars -- When a doji gaps above a real body in an uptrend, or gaps under a real body in a falling market, that particular doji is called a doji star. Two popular doji stars are the evening star and the morning star.

Evening Doji Star -- a doji star in an uptrend followed by a long, black real body that closed well into the prior white real body. If the candlestick after the doji star is white and gapped higher, the bearishness of the doji is invalidated.

Morning Doji Star -- a doji star in a downtrend followed by a long, white real body that closes well into the prior black real body. If the candlestick after the doji star is black and gapped lower, the bullishness of the doji is invalidated.

Shooting Star -- a small real body near the lower end of the trading range, with a long upper shadow. The color of the body is not critical. Not usually considered a major reversal sign, only a warning.

Inverted Hammer-- not really a star, but does look like a shooting star. When occurring within a downtrend, may be a turning signal. Body color is not critical.

Final Thoughts and Credits

As traders, we need as many trading tools in our arsenal, and a basic knowledge of candlesticks provides a trader much needed ammunition. Also remember that no matter what the trading tool, no matter how advanced or ancient, it is only effective when put into practice properly. This is, of course, your job as the trader.


Erik L. Gebhard

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 3

Candlestick Reversal Patterns

***

Just as many traders look to bar charts for double tops and bottoms, head-and-shoulders, and technical indicators for reversal signals, so too can candlestick formations be looked upon for the same purpose. A reversal does not always mean that the current uptrend/downtrend will reverse direction, but merely that the current direction may end. The market may then decide to drift sideways. Candlestick reversal patterns must be viewed within the context of prior activity to be effective. In fact, identical candlesticks may have different meanings depending on where they occur within the context of prior trends and formations.

***

Hammer -- a candlestick with a long lower shadow and small real body. The shadow should be at least twice the length of the real body, and there should be no or very little upper shadow. The body may be either black or white, but the key is that this candlestick must occur within the context of a downtrend to be considered a hammer. The market may be "hammering" out a bottom.

Hanging Man -- identical in appearance to the hammer, but appears within the context of an uptrend.

Engulfing Patterns -- Bullish -- when a white, real body totally covers, "engulfs" the prior day's real body. The market should be in a definable trend, not chopping around sideways. The shadows of the prior candlestick do not need to be engulfed.

Bearish -- when a black, real body totally covers, "engulfs" the prior day's real body. The market should be in a definable trend, not chopping around sideways. The shadows of the prior candlestick do not need to be engulfed.
Dark-Cloud Cover(bearish) -- a top reversal formation where the first day of the pattern consists of a strong white, real body. The second day's price opens above the top of the upper shadow of the prior candlestick, but the close is at or near the low of the day, and well into the prior white, real body.

Piercing Pattern (bullish) -- opposite of the dark-cloud cover. Occurs within a downtrend. The first candlestick having a black, real body, and the second has a long, white, real body. The white day opens sharply lower, under the low of the prior black day. Then, prices close above the 50% point of the prior day's black real body.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 2

Common Candlestick Terminology

The following is a list of some individual candlestick terms. It is important to realize that many formations occur within the context of prior candlesticks. What follows is merely a definition of terms, not formations.

***********************************************************************************************************

The Black Candlestick -- when the close is lower than the open.
The White Candlestick -- when the close is higher than the open.

The Shaven Head -- a candlestick with no upper shadow.

The Shaven Bottom -- a candlestick with no lower shadow.

Spinning Tops -- candlesticks with small real bodies, and when appearing within a sideways choppy market, they represent equilibrium between the bulls and the bears. They can be either white or black.
Doji Lines -- have no real body, but instead have a horizontal line. This represents when the Open and Close are the same or very close. The length of the shadow can vary.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 1

Introduction…a New Way to Look at Prices

Would you like to learn about a type of commodity futures price chart that is more effective than the type you are probably using now? If so, keep reading. If you are brand new to the art/science of chart reading, don’t worry, this stuff is really quite simple to learn.

Technical Analysis…a Brief Background

Technical analysis is simply the study of prices as reflected on price charts. Technical analysis assumes that current prices should represent all known information about the markets. Prices not only reflect intrinsic facts, they also represent human emotion and the pervasive mass psychology and mood of the moment. Prices are, in the end, a function of supply and demand. However, on a moment to moment basis, human emotions…fear, greed, panic, hysteria, elation, etc. also dramatically effect prices. Markets may move based upon people’s expectations, not necessarily facts. A market "technician" attempts to disregard the emotional component of trading by making his decisions based upon chart formations, assuming that prices reflect both facts and emotion.

Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length/height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar. Below is a standard bar chart example.

Candlestick Charts Explained

You may be asking yourself, "If I can already use bar charts to view prices, then why do I need another type of chart?"

The answer to this question may not seem obvious, but after going through the following candlestick chart explanations and examples, you will surely see value in the different perspective candlesticks bring to the table. In my opinion, they are much more visually appealing, and convey the price information in a quicker, easier manner.

What is the History of Candlestick Charts?

Candlestick charts are on record as being the oldest type of charts used for price prediction. They date back to the 1700's, when they were used for predicting rice prices. In fact, during this era in Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis. He is said to have executed over 100 consecutive winning trades!

The candlesticks themselves and the formations they shape were give colorful names by the Japanese traders. Due in part to the military environment of the Japanese feudal system during this era, candlestick formations developed names such as "counter attack lines" and the "advancing three soldiers". Just as skill, strategy, and psychology are important in battle, so too are they important elements when in the midst of trading battle.

What do Candlesticks Look Like?

Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. Below are examples of candlesticks and a definition for each candlestick component:

* The body of the candlestick is called the real body, and represents the range between the open and closing prices.

* A black or filled-in body represents that the close during that time period was lower than the open, (normally considered bearish) and when the body is open or white, that means the close was higher than the open (normally bullish).

* The thin vertical line above and/or below the real body is called the upper/lower shadow, representing the high/low price extremes for the period.

Bar Compared to Candlestick Charts

Below is an example of the same price data conveyed in a standard bar chart and a candlestick chart. Notice how the candlestick chart appears 3-dimensional, as price data almost jumps out at you.

3a

3b

The long, dark, filled-in real bodies represent a weak (bearish) close ( 3a ), while a long open, light-colored real body represents a strong (bullish) close ( 3b ). It is important to note that Japanese candlestick analysts traditionally view the open and closing prices as the most critical of the day. At a glance, notice how much easier it is with candlesticks to determine if the closing price was higher or lower than the opening price.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

FXbootcamp London Outlook 09.25.2009

Hey everyone,

This is my normal detailed market look but I wanted to get something to you in light of the significant currency moves we have seen over the last few days. I take a brief look at Cable and the Pound Yen and put together a few very conservative trend following trade plans. I also discuss some possible scenarios we could see during the London session today. Good luck!!

David Pegler


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Japanese Yen Mixed Against Major Currencies - Where to From Here?

The Japanese Yen has turned in a mixed performance this week: while it is tempting to say that the rebound in risk appetite accounts for losses against the commodity bloc and gains against the US Dollar, the pattern is upset by the Yen's decline against the Pound and rise against the Euro. Where will prices head from here?


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

FXbootcamp London Outlook 09.24.2009

Hi everyone,
With lots of news today it’s left our charts in a somewhat of a technical shambles. However it does look like we are about to see a dose of dollar strength. As weak as the dollar has been over the last month, moving forward in a conservative cautious manner makes the most sense. For this outlook I have constructed 2 very conservative trade plans for Cable and Euro USD respectively. Good luck and I hope you enjoy the video.

David Pegler


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Tech Talk 09.23.2009

Written by Joel Kruger, Technical Currency Strategist


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Take A Step Back From The Market & Re-assess.

My trading decisions have been largely disappointing as of late, as recently choppy and frankly unpredictable market conditions have played havoc with my own forecasts. Instead of forcing the issue, I'll take a step back from the market and re-assess. Yet I won't get my hopes too high unless we see sustainable signs of a return to trending market conditions.


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Trading Outlook - Daily News 09/22_US Open 2009

Price action has been wild this morning with Europeans taking the opportunity to drive USD stops against all of the major currencies.

Written by Joel Kruger, Technical Currency Strategist


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

US Dollar Bought As Stocks Retreat To Start Trading Week

The US Dollar pushed higher to start the trading week as stocks sold off in Asian and European trading while US equity index futures hinted shares will open down nearly a full percentage point on Wall St. Has a meaningful correction in the risk rally finally begun, or is this merely a short-term setback before stocks and high-yield currencies resume upward momentum?


"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

FOREX VIDEO - PRE LONDON OUTLOOK SEPTEMBER 21ST 2009

Hey everyone, for this Monday presentation I take a look at a small currency basket. I have constructed trade plans for the Euro USD, Euro Pound, USD Yen and Pound Yen. The USD Yen and Euro USD are both in some tight 4 hr price traps that I am watching closely for a break out. In addition to this analysis I talk about using the USD Yen and Euro Pound as proxy pairs for trading other USD and Yen related pairs. I hope you enjoy the video and good luck today!!

David Pegler

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Top 10 Biggest Mistakes Forex Traders Make

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic "

Two Trading Mistakes Which Will Destroy You

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

Forex Wrapup 09.17.09

Written by Andrew Spanton, GlobalFXRadio



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trade Results

Open Positions : 3
Closed Positions : 3
Total Pips Earned : 542.3
Total Profit Earn : 542.30

If there is a will to learn, there is always something to be learned !!!...all you need is dedication & perseverance...afterall to me, this is the layman way in doing forex...


So sit back, relax & Enjoy the weekend !!!


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trade Results

Open Positions : 4

Closed Positions : 4

Total Pips Earned : 43.2

Total Profit Earn : 89.97

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Yen Seen Strengthening Against Euro

There is some for chance for the euro-yen to trade a little bit lower, believes Thio Chin Loo, senior currency strategist at BNP Paribas. She explains why to CNBC's Oriel Morrison.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

EURUSD Looks To Hold

EURUSD looks to hold the 1.4735 high through today's close. This is a very prominent double top and will require a break or reversal soon, but the longer it takes to mark a reversal, the more probable a break becomes.


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Evening Star Formation Trade Setup

I am just excited to show you a classic "Evening Star Formation" which as you know is a bearish top reversal pattern candelstick signal...open a trade & was comfortably earning 178 pips, but did not exit cause was looking to go long...hence put a limit order at 1.61100 & my stops from 1.6750 to 1.65490...



Hopefully momentum will keep going as predicted...








"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Dollar Becoming Main Funding Currency

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Incredible Shrinking Dollar

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Dollar Ignores Jump in Retail Sales, Risk Appetite Still Bleeding the Currency

US retail sales surge the most in three and a half years; but does the dollar respond to the growth prospects or the risk appetite aspect?

Written by John Kicklighter, Currency Strategist and Jaclyn Sales


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Difference With Other MT4 Vs FXCM MT4 Trader Platform

Difference with other MT4 vs FXCM trader platform...


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Reward Yourself For A Job Well Done !!!

Hello Again !!!

As you can see, in the pics is a hard to find HOTTOYS "BATMOBILE" !!!...I was aiming for this toy for quite awhile & since I had a great returned in Forex this week, so i decided why not reward myself for a job well done...hence went & got it for a hefty price...

The last known highest price was estimated USD 620 !!!, the story was that production for this wonderful product has been ceased, so prices has been jack up...nevertheless, it was afterall my birthday anyway so what the hey !!!

Remember!!! Layman Forex Trading System is the layman way !!! & always reward yourself for a job well done....

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Tips & Facts About Scalping In Forex

The only way to make small account big in a short period of time is through the use of really high leverage. But wait... do not jump of the cliff right away. Start with reasonable leverage for scalping, for example 20:1 or at most 50:1, then move on as you see scalping skills improve. But even before that do not be lazy to demo trade your scalping system – make sure it will not disappoint you later...

The only way to trade with high leverage without risking blowing up an entire account in only 10-15 trades is by trading with a tight stop loss. Trading without stop loss will “kill” your investment in no time.

It is wise to decide on the size of the trading lot and exposed risk in advance. Do a simple math: calculate the worst possible situation, e.g. 10 consecutive losses in a row; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it...

Although Forex is active 24/7, not every hour is suitable for scalping. No scalper wants to sit in front of the monitor for numerous hours bored and disappointed with the “sleeping” price as it literally moves nowhere.


Scalpers hunt for volatile, liquid market. There are 4 major market sessions: London, New York, Sydney and Tokyo session. To trade effectively scalper needs to learn behavior of a chosen currency pair and define most active sessions, even particular hours for this pair to be able to catch good price moves.


Another thing to keep in mind is spread which brokers charge for different currencies.


The higher the spread the harder it will be to collect desired pips (because once trading position is opened, trader must cover spread cost – earn pips for broker first – and only then collect own pips). And, of course, the lower the spread the easier/faster it is to accumulate pips.

Another factor to consider is an average daily range of the price for chosen currency.
The wider it is the more realistic is an opportunity to profit from price moves.
One of the scalpers’ favorite currency pair is EUR/USD with its low spread and good daily price range.

While using high leverage combined with high frequency trading, scalpers should be very cautious about the cost of actual trading, as each pip here makes a dramatic difference after a large number of trades.

This means being very careful with entries and exits, stops and limit orders, and also be very realistic about profit targets.

Once in the trade, scalpers should manage trading risks by:

1) moving stops to break-even as soon as situation permits;

2) taking profits at a logical levels: at round market price numbers: 00, 10, 20, 50 etc., at previous support/resistance levels, at Fibonacci levels etc.

3) getting out of the trade if the price freezes for longer time than expected.


Scalp-trading is very demanding and requires a lot of concentration, constant monitoring of the price and very quick decision making. Also, short time frames used in scalping strategies, require a good grasp of trading complemented with sound technical analysis skills. It is not a place where beginners feel very comfortable as it demands from traders a good chunk of experience.

Scalping involves substantial risks

A lot of beginners have common problem when trading highly leveraged accounts – they tend to maximize profits by trading with full capital at once. Do not do that! Maximizing chances for higher profits goes hand in hand with maximizing risks! The size of positions opened must be calculated very accurately so that your entire account will not be wiped out with just one(!) very unfortunate trade.

Another factor that increases risks for scalpers is the spread traders pay when open a trade.

Each time a new trade is open, the spread cost is paid to the broker, thus opening 10 small trades instead of 1 long term trade increases the cost of trading in 10 times.
If to measure risk/reward ratio of such scalping activity it may show very risky and potentially losing trading.

Example:

With GBP/USD currency pair a scalper sets profit target of 10 pips and stop loss of 10 pips. So far it is 1:1 risk/reward ratio.

In the next step, when the spread is added, the picture changes. For example, the spread his broker charges for GBP/USD is 4 pips.

When scalper opens a position he is -4 pips (the spread has been charged). Now in order for him to reach the target of 10 pips profit, the price has to move +4 and +10 pips = 14 pips.

On the other hand, in order to trigger his stop loss the price should move... -4 is already in place... so, only -6 pips and he will be stopped at total of -10 pips... the risk-reward ratio has changed in over 2:1, not very promising situation indeed...

To understand the full challenge of scalping as a trading style, consider this: hard work and small gains accumulated over a decent period of time could easily be wiped out with one large loss. Finding a balance between profit levels and size of acceptable losses presents the most difficult challenge to scalper’s strategy.


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trend Analysis: Trend Lines and Trend Channels

Trend Analysis: Trend Lines and Trend Channels

Trend is a general direction of the price.

Trend Lines
Prices do not only rise or fall but most of the time they actually move in narrow ranges. So, in accordance with the Dow Theory we can therefore divide trends into three types:

"bull" (or "uptrend") - prices rise;
"bear" (or "downtrend") - prices fall;
"flat" (or "sideways") - prices are in a narrow range. As a general rule, market consolidates prior to a rapid price rise or fall.
First of all, it is very important to determine if the market is uptrending or downtrending (this can be done with the help of trend indicators and trend lines or channels) and if the prevailing trend is strong or weak (with the help of oscillators and charts patterns).

Uptrend line in MetaTrader

Uptrend means that every next bottom is above the previous one, and every next high is above the previous one, so in this case, the trend line is drawn between bottom points. Obviously a trend line created by joining only two points will be less effective than a trend line created by three or more points.

Downtrend line in MetaTrader

Downtrend means that every next bottom is under the previous bottom and every next high is under the previous high, so in this case, the trend line is created by using the highest points.

Any trend (bullish or bearish) must be confirmed by trade volume. Put it simply: when prices move in accordance with the prevailing trend, the trade volume increases; when prices move against the prevailing trend (rebound), then trade volume decreases. Once the situation changes and trade volume during rebounds becomes greater than that during the trend price movement, it is a serious signal that the trend may not be so strong (but it is not the signal to open the opposite position, as there is no confirmation of the trend reversal).

Flat trend line in MetaTrader

A Flat Market means that every next bottom or high is at the same level as that of the previous bottom or high. In this case, the trend line is drawn by joining both bottoms and highs.

With the help of a trend line you can identify the moment when the trend will change. Once a trend line has been broken, chances are that the trend has just changed its direction or its strength has started to diminish.

Sometimes the trend line is broken by a bar low or high, and the price continues to move in the direction of the current trend. There are many methods to define if a breakout is true, hereafter are the most popular :

Trend is your friend - do not open positions against the prevailing trend.
The primary trend remains intact until a change in that trend has been given. Trend line breakout is one of the most important signals that the trend may reverse.
Do not try to open positions against the prevailing trend hoping that the trend is weak and that the reversal point is not far away. In most cases price sweeps through your Stop Loss order and only subsequently does the trend reverse.
A Stop Loss order should be placed below an uptrend line (or above a downtrend line).

Tomas Demark made his contribution to the theory of trend lines. According to his theory, trend is rooted in two critical points through which the trend is drawn. He called these points TD-lines (his name, Tomas Demark, abbreviation). These points are defined at the basis of extreme points.

Channel Lines
Channel lines are a significant part of trend analysis. Channel lines are like boundaries for price fluctuations. To create a channel line, draw a parallel straight line next to the trend line: one of them joins price chart highs, the other price chart lows:

Channel lines are used:

To point out where to fix profits and losses. If there is an uptrend channel, Take Profit order may be placed under the upper line and Stop Loss order under the lower line. If there is a downtrend channel, Take Profit order should be placed above the lower line and Stop Loss above the upper line.
If the price does not touch the upper line of the uptrend (lower line of the downtrend) this signifies that the prevailing trend is weak.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trend Analysis: Support/Resistance Levels

Trend Analysis: Support/Resistance Levels


Support and Resistance levels are patterns of classical technical analysis. All trend (channel) lines, reversal and continuation chart patterns are only combinations of support and resistance levels.

Support level is a starting point of an uptrend, and is actually a tangent to the minimum prices. It is commonly thought that when the price falls down to the support level, Bulls (buyers) start to resist against further price decrease thus giving it support. This explains why is many cases the price will bounce back and start rising after having reached a support level.

After several attempts the price may break the support level. Once the support level is broken, it becomes the resistance level:

There is an example of when a support level became resistance in September 14, 2003:

Resistance level is a tangent to the maximum prices:

It is assumed that once the price reaches this level it will not point higher. After several attempts the price may break the resistance level. Once the resistance level is broken it becomes the support level.
Support and resistance levels are very easy to create and they are a very effective method to forecast price behaviour. In order to define if the support/resistance level breakout is true, please refer to the criteria outlined for trend lines.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

2009 Federal Holidays

This page starts with U.S. Federal Legal Holidays because on these datesmany government offices, banks and businesses will be closed. Followingthat list many other popular holidays & observances are listed.
United States Legal Federal Holidays

Federal Legal Holidays 2009

• January 1, 2009 (thursday): New Year's Day [Jan. 1 every year]

• January 19, 2009 (monday): Martin Luther King Day [3rd monday in Jan]

• January 20, 2009 (tuesday): Inauguration Day [every 4th year]

• February 16, 2009 (monday): Presidents Day (observed) [3rd monday in Feb] note: Presidents Day is also Washington's Birthday (observed)

• May 25, 2009 (monday): Memorial Day (observed) [last monday in May] July 3, 2009 (friday): federal employees extra day off for July 4th

• July 4, 2009 (saturday): Independence Day [July 4th every year]

• September 7, 2009 (monday): Labor Day [1st monday in Sept]

• October 12, 2009 (monday): Columbus Day (observed) [2nd monday in Oct]

• November 11, 2009 (wednesday): Veterans' Day [Nov. 11 every year]

• November 26, 2009 (thursday): Thanksgiving Day [4th thursday in Nov]

• December 25, 2009 (friday): Christmas Day [Dec. 25 every year]

Federal Legal Holidays 2010

• January 1, 2010 (friday): New Year's Day [Jan. 1 every year]

• January 18, 2010 (monday): Martin Luther King Day [3rd monday in Jan]

• February 15, 2010 (monday): Presidents Day (observed) [3rd monday in Feb] note: Presidents Day is also Washington's Birthday (observed)

• May 31, 2010 (monday): Memorial Day (observed) [last monday in May]

• July 4, 2010 (sunday): Independence Day [July 4th every year] July 5, 2010 (monday): federal employees extra day off for July 4th

• September 6, 2010 (monday): Labor Day [1st monday in Sept]• October 11, 2010 (monday): Columbus Day (observed) [2nd monday in Oct]

• November 11, 2010 (thursday): Veterans' Day [Nov. 11 every year]

• November 25, 2010 (thursday): Thanksgiving Day [4th thursday in Nov] December 24, 2010 (friday): federal employees extra day off for Christmas

• December 25, 2010 (saturday): Christmas Day [Dec. 25 every year]

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

How to Choose A Trading Platform That Suits You Best.

Hi Again !!!

I have just posted 2 video tutorial on 2 seperate trading platform which is widely used by Forex traders....

Hopefully you can decide which is the best platform that suits your trading needs...as for me, my personal favourite is the marketscope 2.0 as I find it more easier to use, as it's click & bid order is done directly from the charts....

So decide for yourself which is better cause at the end of the day...it's all about making money...



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

MarketScope 2.0 Trading Platform

Here is a video tutorial for the other trading platform "Marketscope 2.0".


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Metatrader 4 Trading Platform

Here is a video tutorial on the popular METATRADER 4 platform.



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex Concept

Forex is the abbreviation for foreign exchange, refers to the foreign currency or the foreign country currency expresses which can be use in the international settlement payment means and the property, mainly it includes the credit instrument, disbursement voucher, the negotiable securities and the foreign exchange cash and so on.

The International Monetary Fund defined Forex as the international creditor's rights which a country has, no matter this kind of creditor's rights are express by the foreign currency or expressed by the standard currency.

Exchange Rate
Exchange rate, also known as the exchange price, it refers by a country currency being express by another country currency, or it is also the price ratio between both countries currency, generally it is being expressed by using the price proportion of both countries. For instance: USD/JPY=105.40, is being expressed a US dollar equal to 105.40 Japanese Yen, US dollar is also known as the unit currency, the Japanese Yen is known as the price currency.

In the foreign exchange market, the exchange rate is demonstrated by five numerals, for example:

Euro/US dollar: EUR/USD 1.3325
US dollar/Japanese Yen: USD/JPY 104.95
Pound/US dollar: GBP/USD 1.9337
US dollar/Swiss Franc: USD/CHF 1.2303

The exchange rate smallest change unit is, namely a final one-figure number digital change, is called an exchange rate basic point (Pip), abbreviation exchange rate spot, for example:
Euro EUR 0.0001
Japanese Yen JPY 0.01
Pound GBP 0.0001
Swiss Franc CHF 0.0001



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex Glossary

American-style option An option contract that may be exercised at any time before it expires.

Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.

Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.

Bid/Ask Spread The point difference between the bid and ask (offer) price.

Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.

Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.

Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.

Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.

Dealer A firm in the business of acting as a counterparty to foreign currency transactions.

Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.

European-style option An option contract that can be exercised only on or near its expiration date.

Expiration This is the last day on which an option may either be exercised or offset.

Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.

Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.

Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.

Margin See Security Deposit.

Offer See ask.

Open position Any transaction that has not been closed out by a corresponding opposite transaction.

Pip The smallest unit of trading in a foreign currency price.

Premium The price an option buyer pays for the option, not including commissions.

Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.

Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.

Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.

Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.

Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.
Settlement The actual delivery of currencies made on the maturity date of a trade.

Spot market A market of immediate delivery of and payment for the product, in this case, currency.

Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.

Spread The point or pip difference between the ask and bid price of a currency pair.

Sterling Another term for British currency, the pound.
Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex system - "With Arms Wide Open"

Details : Draw trendlines to show a higher high and lower low. It will look like arms wide open ;) If you are good with chart patterns it might help to think its a backwards triangle formation. Next, draw a straight line from your start point and that will be your entry trigger. With practice this technique can be extremely profitable. Let me show you some more examples.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Scalping system - 2 SARs to go

Be prepared to watch the price constantly. Monitoring the price is not an easy job.

Trade the most active hours – London and New York.
EUR/USD 5 min
GBP/USD 5 min
(optionally may also trade AUD/USD)
SAR (0.01, 0.1) – on the chart
SMA 8 – on the chart
MACD (5, 8, 9) + SAR (0.01, 0.1) on this MACD

SAR defines whether we go short or long. We will take only one type of trades according with SAR signals.
Whichever SAR gives earlier signal – we take it. (Sometimes it can be “chart-SAR”, sometime “macd-SAR”)...

Trading Rules:
When we talk about “trend change” we mean small tiny trends that are actual for us scalpers on 5 minute chart. We do not want to know what is going on 15 min, hourly or even more so daily chart.

With the first SAR dot appearing on the opposite side (the trend has changed) – open one “trial” position Stop loss -12 (spread not included), Take profit +5. Once profit target has been hit – look for the best that current price can offer and open three equal orders. Stop loss for all orders is -12 pips (without spread), profits will be taken next way:

1st order – close in 5 pips and later constant re-entry-scalping with rules described below.
2nd order – close on 14th (or 18th) SAR dot (whichever SAR got first 14 dots – just count them) – this gives us some relief that we have scored something. Also you may not wait till certain number of dots and just close second order where you fill it is a good gain to secure.

Another option: if you are familiar with waves and know what price retracement means, look to close 2nd order after the first, at most second clearly noticeble retracement and once the price has recovered and gave a strong move forward.
3rd – this order remains open and it is our constant relief that we are always earning something as long as both SARs are in agreement that the trend is alive. We close 3rd order only with the first SAR dot (any of 2 SARs) appearing on the opposite side signaling of a reversal.
Or if you feel it is enough for you – do not hesitate and close it earlier!

We trade both currency pairs at once. In total we run 6 open orders maximum.
EUR/USD and GBP/USD have over +90 in correlation which means they move simultaneously almost always. It helps to anticipate good or bad signs watching two pairs at once.

If with the first “trial” entry we have loss, open next “trial” position only when both SARs have agreed on the trend. (You may always wait for 2 SARs to be in agreement before entering any trade, but then sometimes you will miss most of the price move).

Now let’s move to our order # 1 which is going to be reopened to scalp the market with 5 pips in profit.
Stop loss will remain -12 pips. Profit target +5 pips.

Once hit 5 pips and we are on the same candle (price bar) set limit order on the same candle half way from the current price (this is not to be calculated, just approximately, also you may check previous candle extremes and set order accordingly). In other words, “half way” means half of the candle’s current body while the candle continues moving up and down). So, set half way below (for uptrend)/above (for downtrend) the recent price – what we want here is for the price to pull back, fulfill our order and bring us another 5 pips on the same spot. If it does not retrace – we will not worry as we have our two other orders gaining profits for us.

If a new 5 min candle appears, then project (visually) possible future retracement/pullback close to 8SMA and set limit order there – in other words, make your limit order “sit” on the tip of 8EMA line). Reposition your limit order with each new candle.

Now let’s play around 8 SMA. The price really “knows” this SMA.
a) If most of the candle has closed above (uptrend)/below (downtrend) 8 SMA for the first time – buy/sell accordingly.

b) For uptrend when price touches 8 SMA for the first time from above and current candlestick closes above or on 8 SMA – buy, but only if MACD’s histogram is not sloping down and about to cross 0 line or already below 0 line. If conditions are not met – sit and wait...
...And wait for the same MACD’s histogram to go below 0 line with the new candle and create a sharp turn (usually) or a rounding turn (not often). Enter on the close of the current candle after the sharp or rounding turn is spotted.

c) Constantly watch the price approaching SAR dots as once they meet – SAR indicator will signal for the change of the trend with the new dot not matter what, therefore if spotted – prepare to exit – do not wait for the SAR as it will redraw signal only in 5 min interval – valuable time can be lost. Instead watch the price, find the best “offer” and exit early with minimum loss.

If one currency pair is showing change in trend – e.g. got signal on SAR indicator, but the other does not – exit on both anyway. Pairs move simultaneously. So the other reverse signal is on its way to appear. You may find at times that EUR/USD pair usually moves slightly ahead of GBP/USD.

d) If the price for the first time has breached 8 SMA and closed on the opposite side – start watching closely the next 3 candles: if it comes back, closes on your side and goes in your favor – OK, but if price comes back, closes on your side and soon after goes and “attacks” 8SMA again and closes on the opposite side – exit with all you orders at the first suitable moment, because it is a strong (about 80%) sign of the trend reversal.

Once again the safest mode is:
If two SARs are in disagreement – stay out. Once both are telling the same thing – get in.




"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"