Forex trading is becoming a favorite of currency traders. Forex trading can be confusing for someone new to currency trading. The market also draws many people in because it has so many advantages over other types of trades. Forex trading is very different from stock exchange markets also, which can mean great riches for those who take part in forex trading. Answering the question about what is forex trading can be broken down into the basic information about forex, how exchanges work and the advantages.

Forex or foreign exchange trading is basically the trading of the world’s different currencies. Forex trading is done on the forex market. It is the world’s largest trading market, even above the market of the New York stock exchange. The forex market, however, is not done at a centralized location. It is done on what is called the “interbank”. This means trading is done on the telephone and through electronic networks. There are some main locations where trading is handled. These cities are located all around the world in countries like, Australia, Japan, England, United States and Germany. Forex trading can still be complex, like other trades.

Trading on the forex market involves staying current on currency exchange rates. The idea is to buy one currency while at the same time selling another currency. There are common currency combinations made to get the most out of a trade. These common exchanges are called a cross. There are a couple common terms that can help out a beginner in forex trading. The term “pips” refers to the smallest amount a cross price quote can change. The term “spread” refers to the price difference between the selling and buying price of a currency. While it is a process that takes time and energy to learn, forex trading can be very interesting because it offers many advantages over other types of trading.

The advantages of forex trading include many benefits that can not be found in other markets. With trade locations around the world and the major use of electronic transmissions, forex trading is open 24 hours a day. Other trading is limited by opening and closing times set based on where they are located in the world. The market is always busy. There are always buyers and sellers available. Currency is not going to fold overnight as it is a staple of life. While prices may go up and down, they do not fluctuate as much as stock prices. The forex market offers great stability over other markets.

Forex trading, like any form of trading, is a learnt art. It takes concentration and knowledge to do well on the forex market, but the advantages make it a much more inviting investment to many traders. Forex trading is the largest trading market simply because it offers much more to buyers and sellers than any other market can.

Before a product or company to be known and famous, it has to establish trust and assurance before it can be patronized by potential customers and prospect buyers. The establishment of trust is also applicable to newly created software programs specially the ones which require generating profits and requires a fast ROI or return of investments.

For a product to be known, variety of advertisements should bombard the society and this involves television ads, newspaper ads, magazine ads and in the World Wide Web or famous for internet. In addition to that, testimony of people who experienced using that product can also provide an impact in influencing other people to buy that product. This is also applicable when searching or deciding on what foreign exchange robot to engage with. Traders can always rely on what professional experts say about the best foreign exchange trading robot for them at present trading business.

These professionals are constantly using and evaluating this kind of trading software to provide feedback to prospect users. Their feedbacks and comments would be very useful for potential users of Forex robot and also to the ones who doesn’t have any knowledge of automated trading software programs.

Here are some of the feedbacks that professional expert say about Forex robot at present: first and foremost, trading experience is important. The Forex Megadroid is known to have Artificial Intelligence and this software learns from its trades then stores information it gets to embrace to the changing market for its future trades. Secondly, Timing counts when using this type of robot. The Forex Megadroid utilizes a one-hour time frame before it can trigger its trading entry. Other trading software only have one-minute entry point. Thirdly, aside from trading experience, traders also need strategy to fully utilize the use of Forex robots. Last but not the least; patience is important when using the Forex robot according to professional experts. Patience really pays off when using the Forex Megadroid and this trading software program gradually earns the reputation to those traders that use it patiently. Mostly, traders who trade with high time frames are most likely to become successfully with their trades.

Forex trading is becoming more popular as time goes by. Perhaps you have heard of forex trading, or heard things such as “the dollar fell sharply against the yen”. Not sure what all this means? Here is a basic overview of forex trading.

The foreign currency exchange market (forex) is the largest market in the world. Much larger than the stock market! Some of the reasons for its popularity are that leverage allows maximum usage for your money and there is very high liquidity. The forex market is also open 24 hours a day, although some hours are much better trading times than others.

Forex is traded on margin. This means that you can control a large amount of money for a small bit of cash. With a 1% margin, $1000 in cash would leverage you one hundred thousand in the forex market trading. What this basically means is that your rate of return (or ROI) is going to be 100% for each percentage change upwards. Of course, this means that your loss would be equally as great if the market went against you.

Forex trades are always done in pairs. You always purchase one currency at the same time as you sell another. While there are many pairs in the forex market, there are really four major currency pairs: USD/JPY, USD/GBP, GBP/USD and USD/CHF. These pairs see the most market activity.

When you work with forex trades, you do not pay a commission fee per trade, unlike the stock market. What you do pay is a spread. That is the difference between the asking rate and the bid rate of the currency pair. The spread is determined by the trading company you work with. The spread is how they make their money. Be careful in trading, as some brokers will increase the spread during big news breaks (such as non farm payroll announcements), or during off peak hours.

Since you are buying and selling currencies at the same time, it doesn’t matter whether the market is up or down. You can make money either way. For example, if the GBP/USD is going up, it means the pound is stronger than the dollar. If you think good economic news is coming for the dollar, you may want to sell the GBP/USD and buy USD/GBP.

Price quotes are based on pips – which is the smallest unit that a pair can trade at. It is the very last number on the right of a quote. For example if a currency bid is 1.0345 and the ask is 1.0347 – the difference is equal to 2 pips. This is the spread that was mentioned earlier.

There are two types of forex traders, those that are technical traders and those that are fundamental traders. Technical traders base their trades on a lot of different statistics and parameters. Viewing past patterns the currencies form will give a technical traders strategies on which pairs to buy or sell. Technical traders don’t necessarily take news into consideration and often don’t trade during big news breaks. Fundamental traders work only with news. They have a calendar marked with big market news days, such as job numbers, consumer confidence, retail sales, etc. They then plan their strategy to buy and sell based on what those numbers are predicted to be.

If you are interested in learning more about forex, there are many website with free training available, or you can purchase courses to learn. Take the opportunity to open a free ‘game’ account, such as at oanda.com – and practice trading whichever strategy you want to follow until it becomes second nature. This is a great tool before you actually put real money into the market!

Since the Forex market has become one of the most popular ways to make money and invest online a few years ago, many new strategies have been developed to help people just like you take advantage of this very lucrative yet complicated idea, trading currencies.

Consistently, Forex trading signals have been one of the most widely used and most effective ways to succeed in Forex regardless of experience. After all, following a signal is quiet simple, all you have to do is buy or sell a certain currency pair once the indicator says to do so and close the trade once the indicator to do so is given.

Sounds extremely simple right? Well it should be, but it’s only simple if they are accurate, because if they’re not you could be missing out on huge potential profits or even lose your initial deposit. To help you find the most effective and most accurate trading signals, we’ve developed a quick

If you want to become involved with foreign currency exchange or Forex you will require a Forex account. That is understandable enough, I think, because it is just too costly, the overheads are just too high, to just go into the bank and buy a few thousand dollars worth of whichever currency you think will rise in value.

If you open a foreign currency trading account with a Forex broker, you will never actually see the notes of the currency you buy or sell, it is all done electronically and so the transaction is much cheaper.

You can find a Forex dealer by keying those words into a search engine, but to be honest you are no better off then. You will have a list of names, sure, but you will still not know which one is preferable. If you trust my opinion, I would like to propose that you begin with my favourite. I say my favourite, but it is also the biggest online Forex trader in the world, turning over $70 billion each and every month.

Not only that but it has done all this, set up a business and risen to world pre-eminence since its establishment in 2002. That must tell you something, eh? The company’s name is Advanced Currency Markets. It is Swiss, but it has branches all around the world as well.

There are many other Forex brokers too. In fact, the numbers of Forex traders or brokers has boomed since home computers and the Internet became popular after about 1995. This means that inevitably there are some that are worse than others and some that are practically fictitious, so you would be wise to take a couple of measures before you part with any money.

The first thing to do is go to the web site. Look around and try to get a feel for the place. Are there lots of spelling mistakes? are there dead links? Send a message to support, did you get a reply? Did it come quickly enough for you?

Type the name into Google again with the word ‘problems’, such as ‘Advanced Currency Markets problems’. See what other people think of the broker. Check out the company’s introduction about itself, do they make it sound as if you will be wealthy soon after opening a Forex account with them? If they do, be wary.

You will be required to transfer money into your new Forex account sooner or later. This is normal and it should not worry you if the company is abroad, although I personally would stick with the USA, Europe, Australia, Canada and New Zealand. If you like, you could ask your bank to check out the recipient of your money, just to be sure. It may also give you cover, if you money goes astray.

It is much easier to avoid being scammed these days, so long as you do your groundwork. Research is the key on the Internet and the same holds true for when you are searching for a reliable online Forex broker.

Foreign currency exchange, or so call FOREX, had become one of the best home businesses you can venture in nowadays. By trading foreign currencies thru Internet, theoretically now one can now make money at anywhere, anytime. For the new comers, Forex is the world largest trading market, yielding an average of $1.9 trillion daily turnover. As the majority who trade FOREX are speculators, FOREX is also well known as the most liquid trading available.

Nowadays, we are seeing increasing numbers of Forex investment opportunities as well as Forex traders in all over the world. As loses in Forex can be huge, it is best advise that beginners to learn about the risks involve in Forex trading.

Often we heard that getting started in Forex trading is easy and instant. All you need is a computer with Internet connection and a funded Forex account with foreign currency exchange broker. However, the hard part is who to open the Forex account with (meaning who should we appoint as our Forex dealer)?

Forex market is a non-centralized market. There is no common market place for Forex traders and there is no so-call ‘standard’ in foreign currency exchange price. Different Forex dealers offer very different deals to their customers. As an individual FX trader, you depends solely on the dealer to make a transaction in your trades, thus picking up the right dealer is extremely crucial in your risk.

How can a bad dealer cheat on your money?

Often a bad dealer is not totally scams. They are smart persons that trick money from traders that are not well-aware. These dealers, often known as retail market makers, will often encourage their clients to trade on margin and set stop loss orders, which allow the market makers to close out trades almost at will during busy markets at prices they have set. If the market maker does not offset the trader’s position, the loss generated when a stop loss is triggered becomes the market maker’s gain.

Trade prices are easily skewed one way or the other depending on the retail trader’s position, which is known by the market maker. Traders can be encouraged to take risky positions just before major economic announcements. If all else fails, the market maker can quote extreme prices (known as spiking) to trigger stop loss orders while the client is at work or asleep. The vast majority of retail FX traders are not profitable. For those losing retail speculators, much of the funds they had on deposit will be, in some form or another, transferred to the market maker.

How can leveraging makes you lose money?

Leverage is the key for profiting in Forex. Forex dealers often allow their clients to trade with high margin. Margin trading refers to the leverage amount given to the traders to make purchase in the FOREX market. Typical FOREX margins can go up to 100 to 1 or even 200 to 1 where traders are given the power to buy 100 to 200 times more than what they can afford. With high leverage rates in Forex market, traders often find themselves controlling a big sum of money with a little cash put on the table.

Yes, margin trading might sounds attractive as 1,000 cash in a 200 to 1 margin rates account will have the power of purchasing currency worth $200,000. It magnifies the ROI of the trades with less money outlay on the table. But, as most experts say, leverage is a two way street. The brokers want you to use high leverage because that means more spread income because your position size determines the amount of spread income; the bigger the position the more spread income the broker earns. Not to forget the market does not always go in the direction you want, leveraging can magnifies your ROI in your Forex trade but it as well can turn your losses big.

Conclusion

As the article is meant for FOREX rookies, you probably are one of the rookies looking for the best way to get involved in the FOREX market? However, there is no quick answer for the question you are asking. Trading in FOREX is not as simple as it seen from outside. Especially there’s margin involved in FOREX trading, you might lose a lot of money in the beginning and learn your lessons in a hard way. Take all the time you need to learn this new trading skill well — practice everything you learn with a demo account before you consider going ‘live’ with your own money. Seminars, eBooks, Internet, papers, as well as video courses are all your needs to get involved. I wish you good luck and good profit making in your FOREX trades.

To answer the question in the title, ‘is forex funnel a scam?’, the answer is a definite no. Forex Funnel is the newest automated Forex trading software to hit the market. If you’re thinking “what did he just say?”, then let me explain. With this software you basically turn it on and leave it on 24/7, running on your computer. This software then works the Forex markets on autopilot, potentially making you a whole lot of money for minimum effort. Ok, sounds too good to be true? Let’s go into more detail and find out exactly why this software is selling like hot cakes. This is for a number of reasons which I’ll explain and let you decide for yourself.

To start with, this new software is the cutting edge technology. It boasts more advanced algorithms which in turn allow it to squeeze better profit margins than the older competition. The fact it’s BRAND NEW in essence means it will calculate risk much better in an ever changing market in comparison to its aging competition.

The other thing I loved about Forex Funnel when I first tested it was that I could do so at absolutely no risk! The software allows you to create a ‘demo account’. This lets you run the software with ‘play money’ so you can see how profitable the software can be without risking a single dime. The really exciting part is the reports the software delivers showing just how much money you would’ve made had you been running the software with the real thing. You’ll kick yourself after the first test run when you see how much you could’ve made, I know I did.

The best feature I found when purchasing Forex Funnel is that there is a 60 day money back guarantee. It basically allows you to test the software on a ‘demo account’, if you make big cash, then let the software make you a big whack of the real stuff. If for some reason the test run doesn’t produce a profit, return it and get a full refund. This actually makes it impossible to lose money, now you can’t argue with that. That’s why I’d pick Forex Funnel over and above any of the other automated Forex programs on the market.

With unsettled and declining stock markets around the world there has been a resurgence of interest in forex trading by investors of all stripes. Novice forex traders soon learn that in trading forex at least a few basic forex trading tactics must be observed in order to trade at a profit.

Here are eight important forex trading tactics that if followed can help a trader to become more successful.

1.) Never trade with money that you can not afford to lose. The forex markets can at time change levels at blinding speed. If you are on the wrong side of such a move and do not have proper stop loss orders in place you may lose all of your funds before you have the opportunity to react.

2.) Do not over trade. Most traders are in and out of the market far too often. Trading at a profit often depends upon a good entry point. Be patient until a low risk entry point presents itself.

3.) Think for yourself. Do not accept everything you read or hear about trading forex as the truth. For example, one often hears in trading circles that to make a big profit you have to take a big risk. Not true. Big profits are usually made when you take a high percentage low risk trade, such as going long as markets run stops just below long term support areas and selling out or going short as markets run stops just above long term resistance areas.

4.) Do not think that you are so smart that you can beat the market by frequent day trading. While there will be times when day trading will offer quick profits the profits are usually fairly small and over time will probably be more than offset by undisciplined trades. A few trades may start out as day trades but when at the end of your endurance for the day you have a loss and the trade is held over a small loss may well grow into a major loss. Successful day trading takes a lot of discipline. If you do not have the discipline to quickly cut off losing trades do not attempt to day trade.

5.) Do not try to trade more than one or two currencies at a time. Unless you are a real pro you will find it difficult to manage multiple forex positions.

6.) Do not bet the farm on any one trade. If one big trade turns against you that might mean you will be knocked out of the game. No one trades forex over any significant time period without incurring losing trades. If your positions are too large, using too much leverage, you may experience the misfortune of having a series of just a few losing trades that completely deplete your capital.

7.) Do not scale up your trading activity and position size too quickly. Some traders think that after a few winning trades they have found the secret to fame and fortune. They then drastically step up their trading position size and go for ever larger profits. While there is nothing wrong in scaling up position size as a forex account grows it should be done very slowly and carefully. Racing forward and scaling up based on only a few winning trades is usually a mistake. One loss on a big position can do you in.

8.) While using stops is recommended you must place them with care. If you place stops at obvious price levels chances are great that other novice traders are doing the same thing. As stops accumulate at obvious levels do not be surprised if professional traders push the market into the stops. After the run on the stops (you have been stopped out) the market will often rebound and the traders who stopped you out (by buying what you have sold) will sell out for a quick profit.

Trading forex is an interesting game, often exciting, and can be highly profitable. However, you should be aware that if your forex trading tactics are defective there are traders who will be pleased to take your money as long as you keep putting it at risk.

See beginning of this article under name “Forex Secrets – The True And False Breakouts Of The Resistance And Support Levels on Forex. (Part I)”

In “Stock exchange secrets”, L. Connors and L. Rushky state the following. In trading on the deviations (oscillations), the most appropriate model is the trading on the trial of the previous peaks (maximums or minimums). Such tests enable us to indicate the double breakpoint (rest-point, salient point). Thus, one can find a perfect position for opening a deal. Under such conditions, the risk of losses is minimal. The detection (test, probe) of a minimum, where the long-term position must be opened, can take place slightly higher or lower. All the same, the support cannot be established before the realization of the detection (test, probe). The majority of our models has become formed exactly after the successful detection (test, probe) – i.e., after the previous maximum/minimum approbation by the market and returning to this value again.

Chart 2.9. An example of the double breakpoint (rest-point, salient point). (For view the picture see notes in end of article)

T. DeMarque has examined the difference between the true and false breakouts through the technical levels. He has emphasized the importance of estimating whether the intra-day price breakouts are true. TD-points must be chosen correctly. TD-line must be plotted from the right to the left. The price guideposts must be calculated. After this, the three way-outs must be considered:

1. There can appear the signs of the tendency reversal.

2. A substantial shift in the correlation between the demand and proposal is possible.

3. The price guidepost realization is important as well.

Besides, there is another factor, to which the attention should be paid. One must consider whether the intra-day price breakout is true. This is especially important. I regard my investigations in this area as a substantial contribution into improving of the technique of choice of a moment of entering the market – and leaving it. What is more, the given principles are applicable in other methods of the technical analysis as well. The following situation is rather typical. Traders take a position at points of the trend line breakout to-be. Than they with horror watch that prices stop and start to move in the opposite direction. This results in substantial losses. However, those very traders keep on doing the same mistake, not thinking about the origins of it. False breakouts are always rather frequent. It is trader’s stumbling block, because of which some of traders totally refuse to use the trend line. A techniques of developing TD-lines has somewhat improved this situation. Nevertheless, false breakouts do happen. As far as I know, a technique of estimating whether the breakout is false or true is not developed yet.

We now dwell on the breakout qualifiers.

TD-qualifier of the breakout #1.

The signal of “buy” is true if the price of closing has decreased the day before the signal arrival.

The signal of “sell” is true if the price of closing has increased the day before the signal arrival

TD-qualifier of the breakout #2.

The signal of “buy” is true if the price of opening is higher than the price of breakout.

The signal of “sell” is true if the price of opening is lower than the price of breakout.

TD-qualifier of the breakout #3.

The signal of “buy” is true if the price of closing on the eve of the breakout, summed up with the difference between the price of closing and the minimum price in the same day (or the price of closing the two days before the breakout if it is lower) is lower than the price of breakout.

The signal of “sell” is true if the difference between the price of closing on the eve of breakout and the difference between the maximal prices of closing in the same day (or the price of closing the two days before the breakout if it is higher) exceeds the price of breakout.

I have discovered three TD Breakout Qualifiers. There are two price models, formed the day before the probable breakout. In addition, there is one model, which is formed in the day of breakout. In particular, I have drawn the following conclusion. If a market is in the state of oversell (overbuy) the day before the breakout, there increases the possibility that the amount (pressure) of buyers (sellers) all the same will not become diminished after the breakout. This makes just illusion of the market strength (weakness).

Giving analysis to the price behavior on the eve of breakout, I have discovered the following. If the price of closing on the eve of breakout upwards is lower than in the previous day, the probability of the true intra-day breakout increases.

In this case, it can be recommended to open a position in the intra-day intersection (crossing) of the trend line. I determine this as TD Breakout Qualifier #1 (see Chart 1.37 ??).

In a way, TD Breakout Qualifier #3 is similar to TD Breakout Qualifier #1. Really, it also takes into account the price movement on the eve of the trend line breakout. However, in the case of TD Breakout Qualifier #3 one determines the difference between the maximum price and the price of closing on the eve of the trend line breakout downwards. Further this difference is subtracted from that very price of closing. It is the method of calculating the supply value. The demand value is calculated in the following way. The difference between the price of closing and the minimum price on the eve of the trend line breakout upwards is added tothat very price of closing (see Charts 2.10, 2.11 (143 and 144)).

Chart 2.10 S T Bonds. (For view the picture see notes in end of article)

The true breakout can be detected in the following way. One must find the difference between the price of closing on the eve the breakout upwards and the minimum price in that very day (or the price of closing in the previous day – if it is lower). Further it is necessary to add this difference to the price of closing in the day before the breakout. If the value obtained is lower than the price at the point of breakout, the breakout is considered true. If the value obtained is larger than the price at the point of breakout – most probably, the breakout is false

In the given example (see Chart ??), the difference between the price of closing and the minimum price on the eve of the breakout of TD-line of supply (A-B) is added to the price of closing in that very day. The value obtained is smaller than the price at the point of breakout. Consequently, the trend line breakout is true. In this chart TD-line of demand (A’-B’) is also drawn (plotted).

In Chart (145??), for determining whether the trend line breakout downwards is true, the use is made of the procedure, the sense of which is reversed with respect to the above-described one.

Chart 2.11 S&P 500. (For view the picture see notes in end of article)

First, one has to determine the difference between the price of closing and the price minimal on the eve of the supply line breakout upwards (A-B). Further, the price of closing in the same very day must be added to this difference. As one can see, the resulting value is smaller than the price at the breakout point. This confirms that the breakout is true.

Chart 2.12 Soybeans Oil. (For view the picture see notes in end of article)

The principal drawbacks of the “classical” theory of distinguishing the true and false breakouts of technical levels at Forex from the viewpoint of Masterforex-V TS.

Such drawbacks are the following.

1. The “classical” theory of the true and false breakouts of technical levels was developed not issuing from conditions of Forex money-market (where the trading volume was not taken into account). Some other markets were considered.

2. Even T. DeMarque has recognized that this approach is incorrect in total. This classicist has admitted the following. As far as he is concerned, he still doesn’t know any technique that could permit traders to see whether the price breakout is true or false.

One can judge by oneself.

Really, it is evident that the deal opening directly after the previous day technical level breakout must be specified much more exactly. E. Neiman doesn’t write about this aspect directly. However, his approach to the order opening is based on the conviction that a given breakout must happen along the trend development direction. This approach must be scrutinized much more closely. The reason is that the one of the keystone figures of reversal (such as either “the head and shoulders”, or “the head and shoulders reversed”) is purely the result of (exactly indicates) a local peak breakout of the previous day.

Some traders try “to play safe”. Avoiding not getting into the “head and shoulders” figure, they open deals after 5 (!) days to start from the technical level breakout. In this connection, there arise the following questions.

Surely, one could give analysis to broad markets post factum. In this case, one can choose heavy trends of the duration within 30-70 days or longer (as Swagger did it). Thus, one can recommend traders to open their deals in the 6th day to start from the technical level breakout.

However, what’s about the real trading? Under such conditions, a trader does not know the trend actual duration. For instance, see Chart 2.12 GBP/USD pair movement on June 30, 2006 can serve as an example. The support at 1.8000 has been broken through. After waiting for 5 days, one could open a deal in the vicinity to 1.7560 at the 6th day – i.e., after the currency has already advanced more than the half-way in its movement (by 440 points!). Now one could expect a local minimum at 1.7310 – to be more precise, at 1.7435. Exactly at this point, after the breakout thorough the previous day maximum, the currency has reversed.

Chart 2. 12 GBP/USD pair movement (For view the picture see notes in end of article)

Thus, making use of the technique by Swagger one can gain just 125 points under the conditions of a strong trend (690 points). However, one must keep in mind that the reversal could happen earlier. That is, one losed 500 point in order to dogmatically stick to the rule “not to open a deal during the first 5 days after the level breakout”. As the result, a deal will be opened at the end of the currency movement or before the recoil. When a dogma does not correspond to the practice any more, it would be better to decline (reject) it, would not it?

We now dwell on the recoil system according to T. Chand in his book “On the other side of the technical analysis). Notwithstanding all the positive aspects of this system, a very serious drawback is inherent in it. That is, within the framework of this system one cannot detect a point at which the recoil turns into the reversal.

The theory of the level breakout, developed by D. Cats and D. McCormick in “Encyclopedia of trading strategies”, must be revised (specified) from the viewpoint of (with respect to) the price of closing in the previous day. That is, one can give hundreds of examples when the work according to the given technique is profitable at Forex. At the same time, there are also hundreds of disadvantageous situations – e.g., the breakout through a local peak in the previous day can result either in the reversal or in a very heavy recoil towards the direction, opposite to the level breakout.

In the framework of the classical analysis given to Forex, the notions of technical levels of resistance/support of tilted (slant) and horizontal channels are not clearly defined – they are just “piled up”. Hence, how can one tell the difference between these characteristics from those the features in common?

Elder was the first who attracted attention to the following problem. How to elaborate one’s position in all the mess of true and false breakouts, trends and flats in different time frames?

The currency pair movement may be divided as following.

a) trend waves;

b) trend recoils;

c) a flat.

After this, all possible combinations of these three characteristics must be put on trial in various time-frames at least at 3 screens – as A. Elder has recommended.

It is necessary to calculate the number of combinations. For instance, there is the combination #1. That is, the trend is in the minimal timeframe, whereas the flat is in the large-scale timeframe.

At what points it must be determined whereas level breakouts are false or true?

Is it enough to use three screens (displays) according to Elder? Maybe more screens would be preferable.

As far as I’m concerned, I work with 4 screens. What are the drawbacks and advantages of the given technique?

How different timeframes are correlated with one another under the following condition. That is, at one’s point-of-sale terminal, there are 4 screens. However, one must take into account the quantity of timeframes much larger.

What is the correlation between the technical levels of resistance and those of support, all of them being exposed at 4 screens?

In what way do the fundamental and technical analyses supplement each other? How can a trader make use of the fundamental analysis from the viewpoint of its applying in the branch of the technical analysis, the problems of which are enumerated above?

Note: Full text of this article and pictures of examples you can see on

http://www.masterforex-v.su/002_002.htm

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Forex Trading appears to be a complicated activity at the first look. Any Trading/Trade involves Buy/Sell activities. Only difference being in what you sell or buy. So what do we sell or buy in Forex Trading? It is international currency. It involves buying and selling of currency pair.

It involves exchange of currencies and it happens in big scale because multi national companies are investing in nations across the globe. So it becomes inevitable to exchange currency in order to make Global investments to happen. we can buy/sell currency at the market price.

When you place an order you buy one currency and sell another. This becomes a Currency pair. Say,when you buy EUR/USD (Currency pair involving EUROS and US Dollar) you are selling US Dollars to buy Euros. When you sell EUR/USD you are selling Euros to buy US Dollars.

In simple terms you make profit when you sell currency at a price higher than the price at which you bought it. The exchange rate between two countries’ currencies is important in Forex Trading and in turn exchange rate depends on the supply/demand for a particular currency in the International market. When the demand exceeds supply the value of the currency goes up and when the supply exceeds demand the value of the currency goes down.

How to do Forex Trading?

There are many Forex trading agencies available online where in you can open an account and do Forex Trading.

Common terminologies used in Forex trading.

Currency Pair

Example: EUR/USD – In this Euro is the BASE CURRENCY and US Dollar is the COUNTER CURRENCY. Price of EUR/USD will indicate the number of units of counter currency required to buy one unit of base currency.

Forex

Forex means Foreign Exchange( Exchange of one currency for another).

Limit Order

It is an order to execute a trade when the price of the order changes to the advantage of the trader.

PIP

‘Percentage in Point’ refers to the very last digit of a currency price. Forex quotes are in 4 decimal places(.0001). Price movements happen in units of.0001.

Risk Management Tips

1.Understand the Risk involved by making an online research.

2.Start with small Investment.

3.Open account with a reliable broker to avoid any trading mishaps.

4.A professional approach is required and don’t take any emotional decisions.