Best indicator forex trading: higher

Saturday, July 16, 2011

3 steps to success: STEP # 2, identify the conditions for participation in higher proportion Patterns

10:05 PM

Forex Bond

3 steps to success: STEP # 2, identify the conditions for participation in higher proportion Patterns Tube. Duration : 10.00 Mins.

Calls for a moment, our first step was Step # 1 use the gauge to find the best possible use, and then look for price patterns as simple as the Wave, 2-Step and Breaker, damage trade. Once we see patterns important to present this important price level, we have to phase 2 ... Now we have a lot of our terms and conditions, these models are identified as high or low probability, to ensure that we take only the best tradingOpportunities. Before we can do it, we must be aware that rules! Our members receive an enhanced full, detailed copy of our terms and conditions, but also for live trading, using a shorter version, which we call the cheat sheet, and it is a copy of these rules on our blog published for your reference. Lets go over the rules one by one for each model set-up so you can familiarize yourself with them, it is important that the rules are awarethese are listed in order of importance, first on the listis first checked, and the last is checked.last.  Wave Set-Up: Breakout • Over / Under • trigger line HH / LL perfect control scheme • • 6-8 • Ticks & Slow • Medium • Momentum Trigger Slope (check this last one) • The speed of the tape (POT) (latter) OD / D: Time / Price / Pot The Wave Set-up is a continuing trend that the model works best in trending markets. This entry model seems to capitalize on a market in motion, look for the Swing-Highs & Swing Lows, and a steep slope, our firing-lineInput. Attention to Wave ...

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Posted in: conditions,higher,identify,participation,Patterns,proportion,success

Wednesday, July 6, 2011

Forex Charts - Using the ADX indicator for higher profits

1:17 PM

Forex Bond

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If you use graphics, then you are on the strong development of trade - and the average Directional Movement Index Indicator, or ADX, enables you to do so.

Wells Wilder developed the ADX, and outlined in his classic book "New Concepts in Technical Trading Systems".

FOREX Indicator

Let us at this crucial indicator closer - and see how to apply it on your forex charts to give greater accuracy in the preparation of your trading signals.

Determine the strength ofTrend

The ADX is a momentum indicator, which aims to measure the strength trend it - and trying to determine whether the market is trending or sideways movements.

The advantages of the ADX

A premise of technical analysis is that a strong trend in motion, rather than on the back. Therefore, we always want to be trading strong trends - as are your chances of success higher. The average directional movement is an indicator of good - and you should take into accountas part of your currency trading system.

The Technical Bit

For Boffin out there, here's the technical bit - do not worry if you do not understand the calculation is to use easily when presented visually. The ADX is based on a comparison of two different indicators, both of which were developed by Wilder, and are based:

Positive Directional Indicator (+ DI) and the Negative Directional Indicator (-DI), produced by ADX, as shown in the followingFormula:

ADX = SUM [(+ DI (DI-DI ))/(+ + (-A)), N] / N

Where:

N: It refers to the period of calculation. The above formula gives the ADX line, which ranges between 0 and 100 values. The + DI and-DI to be both recognizable and make available the indicator.

You do not understand the above calculation, use the display - you just have to accept that the display works.

The indicator is easy to use, if it is presented visually - and I am registered withmost of the good forex chart services.

Trade with the ADX indicator

The ADX is not a bullish, bearish trading signal generator - and should never be used as such.

The ADX indicator simply shows the strength of the trend - and other indicators to be used to enter and exit trades.

Although the ADX ranges from 0 to 100, rarely more than 60

Use the ADX as follows:

Readings above 40 indicate the strength ofTrend.

Values below 20 indicate phase of consolidation and flat trading range.

You can use the intersection between + DI and-DI to determine the direction of the trend, if + DI-DI crosses up, is a bullish signal, on the other hand, if + DI crosses below-DI is a recurrent signal.

The ADX line is a great momentum indicator and as the RSI (also developed by Wells Wilder), the ADX will help you trade the strongest trends - and give you notice of changesMomentum.

The bottom line

If you want a successful currency trading, you can not just trade support and resistance, and hope to maintain or break. Do you need a confirmation of the dynamics, opportunities to have on your side - and the ADX indicator is happy to help.

The final words

New Trading Systems Technical Concepts was published in 1978 and was one of the first trading period of the books I have ever bought. Each trader needs to book some of its forex education. If you want to learnForex trading the right way, the book and the ADX indicator to increase the possibility of large profits FX.

Forex Charts - Using the ADX indicator for higher profits