American focus: the dollar fell

The euro rose to one-week low against the U.S. dollar after failing to fall below a key technical level.

The single currency fell to near its 200-day moving average before cutting losses. Earlier, the euro was down, as European finance ministers this week failed to reassure investors as to the eurozone sovereign debt crisis is close to resolution.

As European finance ministers meeting in Luxembourg this week welcomed the determination of Greece to trim its deficit to your budget.

The Canadian dollar fell against most of its most traded currencies against the fact that the concerns about slowing growth in China will have a negative impact on demand for commodities such as oil and gold.

Also, the Canadian dollar fell after it was reported that car sales in China unexpectedly fell, it was the first time in eight months. Also today, the company Alcoa Inc (AA) said that the slowdown in growth in the country will lead to a global reduction in demand for aluminum. Note that raw materials account for about half of Canada's export revenue, and China, which is the world's largest consumer of metals and energy.

Pound broke his three-day losing streak against the dollar, up from its lowest level in four weeks after the National Institute of Economic and Social Research said the UK economy expanded in the third quarter by 0.8%, registering with the highest rates growth over the past five years. Bond yields fell after the governor of the Bank of England Governor Mervyn King said yesterday that inflation targeting should remain the focus of monetary policy.

The Australian dollar rose on the third day after the country sold its most long-term debt over the past thirty years, while increasing demand for assets of the country.

Also, the currency rose against the fact that the price of iron ore, which is the largest export product in Australia, rose to two-month high. Demand for currency was reduced in anticipation of tomorrow's report on the unemployment rate, which is expected to have grown to a three-month high.

The strategy of "Free Candle"

The strategy of "Free Candle"
In this article we will look at forex trading strategy for intraday work "free candle". This trading strategy is designed to operate on 15-minute charts and is quite a handy tool for working in the currency market, which can effectively make decisions and close deals with a good positive mathematical ozhidaniem.Osnovoy this trading strategy is the concept of "free candles." For the definition of "free" spark we need exponential moving average with a period of 9 superimposed on the 15 minute chart. In the description of this trading strategy we will use the 15-minute chart of the EUR / JPY forex. So, what is a "free" candle:

    body and the shadows of the candles do not touch the middle
    closing price of the candle should be higher than the previous high (for bullish) or below the previous low (for a bearish trend)
Watching the 15-minute chart, the first thing we determine the current trend of the slope of the moving average. After that define candles, body and which do not relate to the shadow moving average. This so-called "free" candle (free candle).
We define "free" candle can begin preparations for a sdelki.V our trading strategy to go long (buy) on forex, we need a free white candle, which is above average. If the closing price of the candle is higher than the maximum price (high) the previous candle, at the opening of the next bar, you can open a long position.
For a short position (sell), we need a free black candle, which is below average. If the closing price of the candle is lower than the minimum price of the previous candle - at the opening, you can open a short position.
Manage your
Once we opened the position we need to put a stop loss and take profit. For a long position we put the stop loss to the minimum free candles. Further monitor the situation and, if the floating profit on the position reaches about 70% of the initial risk can be transferred to the stop loss to breakeven. For a short position doing the same thing. Stop-loss set at a maximum of free candles and, as soon as the floating profit is 70% of the initial risk, we will move the stop to breakeven.

Strategy B. Barishpoltsa "Break average"

Strategy B. Barishpoltsa "Break average"

    All actions of this strategy make to close the specified trading day!

    * Inside the trading day nothing else to do.
    * Opening and closing trading positions are only pending orders.
    * Signal line strategy - eksponentsilnaya average period of 3 and shift forward (in the future) - 3.
    * The intersection of the candlestick body exponential average - set pending orders to buy H 5 item (if the candle is closed as a rising), or to sell L -5 n (if the candle closed as falling).
    * Touching the lower shadow candle moving average - is placed pending order to buy H 5 §
    * Touching the upper shadow candle moving average - a pending order is placed for sale L -5 n
    * Pending order is only canceled when a signal on the chart opposite.
    * Transferring the order if there is a signal in the same direction (buy or sell), but a more favorable (higher for sales or lower for purchase).
    * When you open a trading position a stop-loss is placed on the opposite end of the candle - (+) 5 n then the stop loss or transferred to "zero" (lossless), or rearranged closer to the minimum of the last two candles closed the purchase of two or a maximum of the last closed candles for sale. This must be done on each new candle to close before the trading position.
    * When the trading position is open, the new signals will not respond and additional items should not be open. (Opening on each trading signals, with the already open trade positions, quite tempting, but this option was not investigated by V. Barishpoltsom).

    And a few more rules for Strategy "Break the middle":

    1. Stop-loss is upwards never tolerated.
    2. Order must be placed only on the breakdown of the exponential average of the body candles. That is: the rising candle set a buy order at its masimum when descending put a pending order to a minimum.
    3. If, after the conclusion of the transaction, the position can not tuck into the black, and the next two for the spark plug opening end worse prices at the opening position, set the take item 5
    4. If the position is closed bezubytke or take-profit, not for the next candle exponential average but goes in the same direction (higher or lower than the previous 3 candles) - put a pending order to its end in the direction of movement (closing).
    5. If the candle rests in the middle with a strong slope intersects with only the tail, and the body has not been able to cross, and it is clear that the next candle will begin at the middle - to place an order on the tail of the candles behind the line judge. average.
    6. Closer than 10 paragraph from the end of the trading day breakeven put unnecessary.

BBMA Forex Strategy

BBMA or Bolinger Band + Moving Average forex system is a pretty popular strategy these days. Many traders use this strategy and they find it’s quite helpful to predict the price movements. Mainly to predict the big trend and find where and to where prices will move.

This forex strategy can be used on any time frame but It’s recommended used on timeframe H4 and H1 to know the big trend anda use M15 for make entry decision. On pair EURUSD, GBPUSD or USDCHF.

Setup the Indicators on your chart 

1. Add Bolinger Band Period 20, Deviation 2 
2. Add Bolinger Band Period 20, Deviation 1 
3. Add Moving Average Period 5, MA method : Linear Weighted, Color : RED, Apply to : High 
4. Add Moving Average Period 5, MA method : Linear Weighted, Color : PURPLE, Apply to : Low 
5. Add Moving Average Period 55, MA method : Expotinential, Color : Aqua, Apply to : Close 

How to trade 

1. Determine the big trend by looking the Moving Average (MA 55) on timeframe H4 and H1, look if the candel prices is below candlestick or above. If they're below of MA 55 then we are going to find any chance to sell on TF M15. And vice versa if they're above of MA 55 then we're going to find any chance to buy on TF M15. 
2. In time frame M15 the best signal for entry when the candlestick touch upper or lower bollingger band, Especially when you see good signs for candel reverse like doji or long shadow. 

It’s very recommended to use this forex strategy using your demo account until you familiar with it at least 3 months. After that you can go with your live account. Happy trading…!

Top 10 Forex Exit Signals

In the previous article, we pointed out that one might regard forex as being somewhat simple: you just need to know which pair to trade, when to get in, and when to get out. (An exception to this is with carry trading, where you also need to pay attention to a few other factors). Of course, all of the challenge is in those three little decisions. Here we discuss some of the major signals for knowing when to exit a trade.
For starters, the basic set of tools is almost identical to the entry signals. With entry, you look for a trend and jump in just before it starts. With exits, you simply look for the end of a trend or the beginning of a new one, and jump out before it's too late.
The big difference is that you are not usually looking for a new trend. By the time you can identify that a new trend has begun and is measurably significant, it's already too late-you're losing money. Instead, you should exit the market as soon as it is clear that the trend you bought on has ended.
So you could start with crossovers in the moving average. If you used that to identify an uptrend, now you're looking for a reversal with crossover from above. But hopefully you won't get that far. Instead, you should watch the percentage of change in the short term moving average. If the short term average remains unchanged over a period of time, the trend has probably ended.
Of course, this means that the average directional index (ADX) or moving average convergence/divergence (MACD) both become more significant for you. Look for stabilization or stagnation in these indicators as a signal for the end of a trend. Some of the most helpful forex exit signals are the momentum indicators such as TRIX, smoothed rate of change, or relative strength.
It is also easy to draw a trend line based on Fibonacci pivot points. When prices begin to fall below the original trend line and you see a new pattern of pivot points, the trend has ended. Look for resistance or support that offers any type of pattern. You can also rely on exponential moving average (200 EMA). The problem here is that it is often hard to know if you are dealing with a new trend or just with retracement. This is where price candles can be helpful in some cases. Since the end of a trend is often more analytically complex than the beginning, knowing your analysis well is very important.
News shocks are generally a bad way to make exit decisions, since your response will be too late, anyway. However, if you do have reason to suspect an event and you are more accurate than the market, this might be useful. Generally, your stop loss order will kick in before you can.
And this is where the most important exit signal comes in. You should always have stop-losses in place for every trade you make. Quite simply, you've found an exit signal when your stop-loss kicks in and ends the trade for you!
This also relates to the biggest value in automated systems: rely on your software to free you from a position before you lose too much. You can set this up in complex ways to help you even with profitable trades. If more traders relied on their own analysis to get them into the market and software as one of several signals to get them out, they would significantly improve their profits.

How to Become a Forex Trader - The Simple Three Step Guide

Forex is one of the most volatile type of investment markets and one of the most exhilarating experiences in the world. Forex, in it's nebulous form, is simply trading currencies-buying and selling, betting for and against the various currencies of nations. With great liquidity and immense margins, it is one of the most effective ways to make money in a market, and easily the quickest way to throw money away.
Still interested? Here is a simple, three-step guide on how to become a forex trader.

First, you have to understand how currencies are traded. There are three critical terms to learn: "Exchange rate or quote," "pairs," "pips," and "spread." For starters, let's look at a forex quote:
EUR/USD 1.3325 BUY / 1.3315 SELL
Each quote is composed of two parts, the pair and the rate. Pairs are the "items" traded on the markets, e.g., EUR/USD, USD/JPY, EUR/GBP. Each pair signifies two different currencies.

EUR/USD means "Dollars for Euro;" EUR/GBP, likewise, equals "Pounds for Euro." The rate is what you can buy or sell the pair for. 1.3325 BUY means you can buy 1.3325 dollars for each euro, and 1.3315 SELL means you can sell 1.3315 dollars for each euro.
The second major term is "pip." This word represents the basic unit of profit in forex so it's crucial to understand it. A pip is the smallest increment of a pair. For the EUR/USD or any other pair it's 1/10,000th. The yen is an exception, where the pip is 1/100th.
A final term: you might have noticed that the BUY/SELL rate wasn't the same. That is called the "spread." All forex markets of any liquidity have a spread of some sort, and oftentimes a broker will widen them slightly to make a profit. This is equivalent to a stock broker charging per-trade. So in order to be profitable, you will need to recoup the spread.
The second key to Forex trading is practice, practice, practice. Most forex brokers offer a $50,000 practice account. Set one up, and mess around-watch your money evaporate. After you have played around for a couple days, open another practice account, but this time develop or use a specific trading strategy. Pick a method and stick to it. You may or may not make money this time, but you will start to have a fuller understanding of the inner workings of the market. After a few weeks, try another strategy and get good at two or maybe three.
The third key is to start small. This is where most beginning traders lose the most money. After you have practiced for several months, take the strategy you know best and some money you can afford to lose. It is certainly best to chose a broker based on a comparison list or based on reputable reviews. Open a micro account, start really small, use a disciplined method, and begin trading. Know your own psychology and resist the temptation to be driven by greed or fear.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

Forex KISS - How Keeping It Simple Can Improve Your Bottom Line

It's a phrase everyone knows - Keep It Simple Stupid [or Keep It Short and Simple]. However, forex KISS is better known than practiced. Part of this is because of marketing, as well as that ever-present "keep up with Mr. Jones" attitude that pervades forex.
Here is what happens: a trader enters the forex market with high hopes and minimal knowledge. He invests time and energy into learning the basics and makes a modest return at the beginning. After a few months he compares himself to a forex superstar or reads an ad for a fantastic trading method with guaranteed results. Off he goes, trying to learn ever more sophisticated techniques, tools, and methods. Several months later he's exhausted and a lot poorer, with the feeling that he just doesn't have the sophistication to be in the forex market.
There is certainly nothing wrong with sophisticated tools or trading methods. Most technical indicators offer genuine insights with real analytical value, and if a trading method never worked, people wouldn't call it a strategy (though maybe that's a bit optimistic). In fact, it's good to grow and become more sophisticated as you gain trading experience.
The key is to never let go of the fundamentals. To make a comparison to a more familiar market, stock traders can make endless guesses and extrapolations. However, at the end of the day, their price should match the underlying value of the security. People who lose sight of that are speculators and lose money on average.
In the same way, it is fine for a forex trader to use sophisticated, tools of technical analysis, but there are always basic, fundamental realities he should come back to. What are the things you should focus on if you want to "keep it simple, stupid."
First, remember that you are trading real currencies in real countries. Anything that influences the economy of that country or makes a difference in how the market regards it will influence the currency as well. You should not be trading a pair without knowing the basic economic data and current events that apply to both countries. You should also know international ties and the paths for trade revenue.
Second, establish a sensible, meaningful strategy and follow it all the time. If you can't clearly express your strategy in a way that makes sense, you haven't achieved this yet. You should also have back tested and forward tested your strategy before risking real money, or you should at least have reason to believe that it will be profitable.
Most importantly, discipline yourself to stay within the confines of reasonable risk management. You should have stop loss orders on every trade you make and always watch your leverage. You should also establish what amount of money you are willing to lose. Then compare this to your total liability.
How do you know how much you are risking? Keep track of the difference between your opening trade and your stop loss on each trade. You can find your total risk exposure by multiplying this number by the leverage and adding the results of this calculation for all of your open trades. The final number should never exceed the liability you started with-what you were willing to lose. In other words, never put yourself in a situation where you could lose more than is acceptable if everything went wrong. As soon as you risk it, everything really will go wrong.
It isn't true that the simplest traders are the most successful; nor is it true that the most sophisticated traders have the most wins. The best traders are the people who can use sophisticated tools without losing sight of the simple realities which drive the forex market.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.