Archive for October, 2009
Selection of Forex trading platform
It is very easy to select a forex trading system for any user to use provides more than convenience. Any user can choose a forex trading very easily and use according to their convenience. The time is money in forex trading. In the serious business of trading foreign currency, time really is money literally. There are so many benefits of Forex trading like the good platform in success and profit of traders. Let us begin to explore and discover some other compelling benefits of a forex trading platform that contributes in a major way to a traders overall success and profit margin.
Benefits of forex trading platform are as follows:-
1. Accuracy of the frex trading system:
In forex trading exchange rates are changing quickly and foreign currency is done at real time. Every second exchange rates quickly change while foreign currency trading is done in real time. When a trader executes a forex trade and locks in the exchange rate that transaction should be recorded immediately. Since a quote can only be precise at the moment it has displayed any delays in processing the trade will cost traders in lost profits. Your forex trading platform software should access servers with the most accurate exchange rates available.
A web browser based trading platform makes it easy to trade forex from any location in the world with Internet access since there is no software to download. This ensures that your stop loss and take profit targets are executed exactly as you placed them (the suggested method for forex trading).
2 Security of the forex trading platform:
Any forex trading platform you decide on should be highly secure to protect your account and private information. That platform should not any other person to see or use our personal trading information. It should allow you to found your trading account securely with a variety of options including credit card, western union and paypal if needed. forex trading platform should allow any trader to use their account securely with help of their credit card or any other option.
There should be security in forex trading platform. There should security in trading account like verity of options like credit card, western union and paypal to your convenience.
3 Integrity of the forex trading platform:
A forex broker providing transparent services is a worthwhile choice for any forex trader. All costs associated with the trading platform and trading account in general should be disclosed up front. There is no any hidden commission or fees for making deposits and withdrawals.
Integrity means not having to pay any hidden commission charges or fees for making deposits and withdrawals. Bank costs that are part of doing business as a forex dealer are not passed on to you the forex trader. Beware of any service provider that does not provide sufficient firewall protection and some sort advanced SSL for user authentication and data transfer.
Forex trading System can seem overwhelming If you are new to forex, and you are going to need forex charts to assist you along they way. While you develop your forex trading system, you will want to use the demo accounts that many trade brokers provide. Try to use the demo account like forex chart provided by your broker before going to start new forex Trading. They will generally provide free forex charts as part of their demo forex trading system.
We can also find useful information related to the forex trading on Internet. You can search the Internet for forex or “forex charts” for more details. The choices will be a bit overwhelming at first but you will be fine once you have done a little homework. You will have to do research to find a good match that fits your needs, both with the forex trading system and forex charts. You may have to compare a few of them and match them up to get your specialized needs met.
Whenever getting more Forex trading skills, you we become more aware of it’s tools. As you get better and better with your new forex trading skills, you will find you are more discerning of the tools. Moreover, you will begin to notice more features on the forex charts. The forex trading signals should be quite standard on many sites, but how they integrate the forex trading signals with the forex charts may not function as well with your style.
So the more you search and find forex trading signals you will find those that are a good fit that closely fit with your requirements. Your forex trading system will become more and more refined with practice. In addition, that is the best way to learn forex by practicing with a demo account before you go live.
Learning the forex charts and the forex trading system of different brokers will be frustrating to start. Stick with it, and it will be worth it in the long run. Don t accept the first one you try, or even the one your friend uses. The forex trading system and forex charts are very personal so take the time to find out what works best for you. First find what works best for you using Forex trading system and forex charts. Because you are going to be spending a lot of time together to search good information about Forex trading with the help of Forex trading system and forex charts. So get comfortable.
The only way to pick a forex trading system and forex charts is to take recommendations and suggestions from this and other articles, trainers and friends. You will get more information from friends, their articles their suggestions about froex Trading. Then make it your own. Find a perfect fit for your forex trading system needs.
You should choose perfect fit for your forex trading system.
Wonderful Forex Software to gain continuous profits
The main purpose of writing this article is to give you a collection of parameters to assist you in determining which the best Forex trading software is. The first thing that you must consider is whether there is such a best trading software that alone deserves to be regarded as the most excellent among many other that you can find there. The answer is obviously yes. There are little good and trustworthy Forex software available in the market. But it is only a handful of them are trusted with your investment.
There are numerous important factors that should be taken into consideration when choosing Forex trading software. You need to understand first that there are generally two types of Forex software that we can use. Assessing which one is good is not only a matter but how trustworthy and what your needs as a trader. When you search for software the first type of software that you will find can deliver signals. There are some software that is good ones and work constantly toward the growth of your trading business. But this kind of software has a downside. You need to remain attentive to the signals all the time as the Forex trading market runs twenty four hours a day.
The first kind of software that you will find is meant to deliver signals. There are some good ones that do work constantly. But this kind of software has a downside that you have to remain thoughtful to the signals at all times as the Forex trading market is open for twenty four hours. Therefore performing well using any one these systems is possible but you require some time to spare during the day and most likely tolerate couple of late night Forex trading meetings.
The other kind of forex trading software that you will find is generally named as expert advisors. They are the cousins of this software that have the ability of scanning the Forex trading market for best entry as well as exit points in a specific currency pair. They also have the added capability of placing and closing the trade orders by themselves that means the trading software not only assists you but also executing for twenty four hours a day.
Many trading software and services are developed to gain huge profits in trading profits. You will find completely automated Forex treading software that can deliver a great money management and general performance with the obvious benefit that they can trade when you are not able to expect to be in front of your computer. Nonetheless, it does not mean that completely automated trading software is the best software for traders. Forex signal and service is also suitable for you. They work as an expert advisor for your trading business.
Daily Review 30/10/2009
USD Dollar (USD)
The Dollar fell against most of its counterparts after better than expected GDP increased investor\’s appetite for risk. The Gross Domestic Product was released at 3.5% vs. the 3.1% expected. Initial Jobless Claims came out slightly worse than expected at 530K. After 4 straight days of drops Wall Street headed for a steep rise after the GDP showed that the U.S. economy expanded at a 3.5% annual pace in the 3Q and fueled stocks. Dow Jones jumped by 2.05% to 9,963 and the NASDAQ rose by 1.84%. Crude oil jumped by 3.19% closing at 79.93$ a barrel as the surprising US economy expansion signaled for a potential increase in oil demand. Gold (XAU) trades at $1,047. Today, Personal Spending is expected at -0.4% vs. 1.3% previously and Employment Cost Index is expected unchanged at 0.4%.
EURO (EUR)
The Euro continued towards its fourth monthly rise against the Dollar as the U.S.’s return to growth renewed optimism a global recovery will quicken, aiding demand for higher-yielding assets. German Unemployment Change came out better than expected at -26K vs. expected 15K. European markets rose more than 1%. Commodities recovered from previous losses and posted important gains. Overall, EUR/USD traded with a low of 1.4682 and with a high of 1.4857. Today, European CPI Index is expected at -0.1% vs. -0.3% previously.
EUR/USD – Last: 1.4830
|
Resistance |
1.4880 |
1.4925 |
1.4970 |
|
Support |
1.4770 |
1.4720 |
1.4680 |
British Pound (GBP)
The Pound climbed against the Dollar for a fourth day after reports showed U.K. mortgage approvals increased more than forecast last month and the U.S. returned to growth in the third quarter. Overall, GBP/USD traded with a low of 1.6337 and with a high of 1.6602. Today, Nationwide Housing Price Index is expected at 0.7% vs. 0.9% previously.
GBP/USD – Last: 1.6560
|
Resistance |
1.6640 |
1.6700 |
1.6765 |
|
Support |
1.6475 |
1.6410 |
1.6350 |
Japanese Yen (JPY)
The Japanese currency fell during the European session and continued its plunge after the release of a government report that showed Japan’s jobless rate unexpectedly dropped for a second month, reducing demand for the relative safety of the Japanese currency. Overall, USD/JPY traded with a low of 90.24 and with a high of 91.60. Today, The Bank of Japan (BOJ) Press Conference is expected. The interest rate is expected unchanged at 0.1%.
USD/JPY-Last: 91.30
|
Resistance |
91.80 |
92.20 |
92.30 |
|
Support |
91.05 |
90.83 |
90.50 |
Canadian dollar (CAD)
The Canadian Dollar climbed from a 3 week low against the Dollar as stocks and commodities rallied after the US GDP report showed the American economy grew in the third quarter for the first time in a year. Overall, USD/CAD traded with a low of 1.0654 and with a high of 1.0820. Today, Canada\’s The Gross Domestic Product (GDP) is expected at 0.1% vs. 0% previously.
USD/CAD – Last: 1.0670
|
Resistance |
1.0750 |
1.0820 |
1.0865 |
|
Support |
1.0630 |
1.0585 |
1.0545 |
Research by http://www.ufxbank.com
GoLearnForex Daily Technical Analysis
AUD/USD:
The AUD continues its recent retrace. Many traders use different time frames for different currency pairs. The longer the time frame the more valid the pattern you are charting is. Moving Averages are basic tool that even the most sophisticated trader needs to always be cognizant of. The markets tend follow the moving averages generated off of the daily charts.
In Chart below I use a moving average from an 8 hour chart. I strongly encourage traders to be vigilant of at least checking a weekly, daily, 8 and or 4 hour chart and then any time frame less than 4 hours that you may want to look at.
INSERT CHART
You can see that the yellow line representing the SMA 50 was breeched and prices continued a steady fall (The Red line is the 100 SMA). There are also a number of near candle formations that support this price depreciation.
Circled in blue is a near Falling Three Candle pattern. Typically you have a red candle followed by 3 or so small green candles that are contained by the original red candle. Following the last green candle is another red candle with price closing below the original red. The Falling Three pattern is nearly followed by Three Black Crows. This candle pattern forms when you have the candles each open in the midsection of the proceeding candle but also close lower than the proceeding candle. This pattern nearly forms between the 2 white lines.
GBP/USD:
This pair has been range bound since May. When a pair trades in a range, price is confined to a narrow margin of highs and lows. In the Chart below the 2 red lines represent the range support and resistance lines.
The 2 red boxes indicate when minor breakouts have occurred. The tops and bottoms of the boxes would be your absolute stops depending on the handle you entered the trade at. Another point of consideration is the 50 SMA and 100 SMA. You can see that the SMA’s are also moving sideways. Price typically pops when it passes above/below a significant SMA. With SMA moving into a sideways march we are approaching congestion on this pair and that should signal another breakout. Obviously if the dollar continues to strengthen as it has GBP should be headed south.
INSERT CHART
Analysis by http://www.golearnforex.net
Benefits of combining a good robot with Metatrader 4
All are aware of the fact that trading in the Forex markets is tremendously unpredictable and high risk affair. Steady price fluctuation needs constant attention as well as tracking. It also requires the ability of making split-second decisions to take benefit of money-making openings. Certainly you need the recent and wonderful technology to cope. Your selection of correct software is a key to decide whether you get success or not in Forex trading business.
The first area should be addressed is in your choice of a Forex trading platform. The most famous Forex trading platform today is the Metatrader 4. This trading platform is a perfect trading solution for financial companies, brokers and banks that takes special care of the whole transaction system from beginning to end. Metatrader 4 has provided several advantages to banks. Brokers also find this trading system useful to get the guidance about trading business. This trading platform has several useful functions that are beneficial to gain great profits in Forex trading business.
It has the ability of handling two way information flows. It can serve as a terminal to carry out transactions whether you are purchasing or selling currency. It also has the ability of handling a number of trading markets including spot Forex trading markets as well as the derivatives markets. It also has the ability of providing multilingual support. This trading software provides excellent security and even advanced encryption so that not a single outsider is able to hack into your database.
It provides you wonderful backup by way of information restoration in the happening of data loss. With the help of this trading software, you can obtain great amounts of historical data in its archives, which can be used to do analysis or test trading systems. If you want to get more advantages from this trading platform, you need to unite it with a best Forex trading robot. The combination of Forex robot and Metatrader makes your trading business gainful. Once you found a good Forex broker, who is providing this platform, the next thing is to find a good Forex trading robot. Find that Forex robot that, which can analyze and trading on your behalf.
A number of Forex robots available in the market and only you require finding one that is perfect for your meticulous trading needs. You should always remember that even if a Forex robot can trade on autopilot, it is also important to choose best Forex trading strategy. By using Forex trading strategy and robot, you are able to stop loss and gain great profits. you need to find a Forex robot that you are completely comfortable with and where you are able to tweak the settings with precision to your satisfaction.
Daily Review
USD Dollar (USD)
The Dollar rose across the board. A rise in risk aversion following an unexpectedly drop in New Home Sales sent stocks lower worldwide. The Dow Jones fell for the 4th consecutive session and ended at 9,763.The Standard & Poor’s 500 Index dropped 2% on concern a rally in equities this year outpaced the prospects for economic growth. New-home sales unexpectedly fell last month to an annual rate of 402K, from a revised 417K pace in August. Crude oil fell from $79 a barrel to $77.20 on stronger Dollar. Gold (XAU) continues to move away from the highs of the year and fell to test levels below $1,030 an ounce. Today, The Gross Domestic Product (GDP) is expected at 3.1% vs. -0.7% previously. The Initial Jobless Claims are expected at 520K vs. 531K previously.
EURO (EUR)
The Euro kept weakening versus the Dollar for the 4th day in a row. The currency slumped against Dollar and Yen, reaching a 2 week low against both safe havens. The German Consumer Price Index (CPI) came out as expected at 0.1%. Overall, EUR/USD traded with a low of 1.4690 and with a high of 1.4840. Today, The German Unemployment Change is expected with 15K vs. -12K previously. The German Unemployment Rate is expected at 8.3% vs. 8.2% previously.
EUR/USD – Last: 1.4700
|
Resistance |
1.48 |
1.4842 |
1.489 |
|
Support |
1.471 |
1.4675 |
1.465 |
British Pound (GBP)
The Pound failed to hold above 1.6400 versus the Dollar finding support only at 1.6360 following economic data in the U.S and Dollar\’s strength. GBP/USD peaked at the highest price for the current week but it was unable to hold versus the strengthening Dollar. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6466. Today, Net Lending to individuals is expected unchanged at 0.7B. The Mortgage Approvals also expected unchanged at 52K.
GBP/USD – Last: 1.6368
|
Resistance |
1.651 |
1.6575 |
1.6640 |
|
Support |
1.6355 |
1.6285 |
1.6240 |
Japanese Yen (JPY)
The Yen rose sharply versus most majors as weak economic data sent world stocks lower fueling risk aversion. The Yen reached the highest in 2 weeks against the Euro amid signs the global economic recovery is losing steam, damping demand for higher-yielding assets. Industrial Production came out 1.4%better than 1.1% expected. Overall, USD/JPY traded with a low of 90.54 and with a high of 91.80. Today, Household Spending is expected lower with 1.2% versus 2.6% and Tokyo Core CPI is expected with -2.0% versus -2.1% prior.
USD/JPY-Last: 90.42
|
Resistance |
91.3 |
91.75 |
92.1 |
|
Support |
90.5 |
90.1 |
89.9 |
Canadian dollar (CAD)
Canada’s currency depreciated against its U.S. counterpart to the lowest level in more than three weeks as declines in crude oil, the nation’s largest export, and stocks damped demand for higher-yielding assets. Overall, USDCAD traded with a low of 1.0636 and with a high of 1.0810. Today, The Raw Materials Price Index (RMPI) is expected at 1% vs. 3.7% previously.
CAD/USD – Last: 1.0790
|
Resistance |
1.08 |
1.0855 |
1.0898 |
|
Support |
1.068 |
1.063 |
1.0587 |
Research by http://www.ufxbank.com
Advantages of using Metatrader 4 in Forex trading
Many comprehensive trading platforms available in the market are useful and advantageous for your trading business. Metatrader 4 is one of those trading platforms. This trading platform is especially designed for traders so that they can manage their trading by brokers, market participants and banks. It is an end to end solution able to handles sales as well as purchases of currency. It can also handle the data flow needed for Forex trading market analysis. It is most famous trading interface. Several brokers provide this trading interface to their customers. Using this great interface has many advantages. This interface guides traders in their Forex trading business to gain huge profits.
Metatrader has wonderful features that are useful in trading. This Forex trading platform provides you market indicators and Forex charts. You will get a stable flow of technical analysis and charts along with actual-time trading prices. A lot of data is needed to make trading positions. This Forex trading platform also has the capability of integrating other software. Metatrader is open-source software that is capable of incorporating other software easily, for example, advanced charting and analysis software. Furthermore, several Forex robots that are used in automated trading can work flawlessly on the trading platform. Choosing right trading platform makes your trading business money-making hence; you need to choose it very carefully. Before choosing it, you should consult with experienced Forex trader.
Archival data is another extensive databank of historical information, which can be used for analysis and to do back test on any system, which you may be trying out. The data is also be made available into any other software or Forex trading robots, which you may be making use of for market analysis and automated trading. This software can support multicurrency trading and Multilanguage. Security is given using 128 bit encryption. It is reliable Forex trading platform that provides you automatic data restitution as well as endorsement in the event you lose your data.
Using this trading platform has several advantages. If you want to make it more advantageous for your trading business then you must use it in combination with best Forex trading robots. Maze-like Forex robots available in the market, therefore you require choosing one that is trustworthy, has a best track record and easy to use. For example, you can select to use Forex MegaDroid that has an excellent track record. The disadvantage of using MegaDroid is you can deal only in the EURO currency pair.
You should also remember that no magic solutions and magic wands are there in the Forex trading market. It is just a amalgamation of your strategy, proper software and homework, which will surely enable to make maximum benefit of to trading market opportunities.
GoLearnForex Daily Technical Analysis
USD/CAD:
We have noted several times a formation we refer to as a Step pattern. More commonly this is identified by Lower Lows and Lower Highs and vice versa. We picked up on this pattern emerging on a 4 hours chart. We identified the possible start of this pattern shortly after the BOC publicly declared it’s sentiment for a “weak Canadian Dollar”. We assured you that there would still be time to catch this move even if you could not trade the actual news.
We suggested that you wait for the Step to appear and buy on the dip which was a confirmation of our pattern formation. On the graph that it is depicted near the 3 and a yellow circle. The exit for taking PNL we had at 1.0660 a prior support resistance point.
INSERT GRAPH
EUR/USD:
The Squeeze Play. We talked about this move where we are seemingly forced into a breakout. In one of our earlier pieces we mentioned that our experience told us not to bet on the Squeeze Play, meaning trade against the direction of the existing trend. I must admit we got carried away by the hoopla of crossing 1.50.
So the question you all should pose” is why in this case do you bet against the trend when one of the number one rules of technicians is never bet against the trend”. The answer is based on the number two rule of technicians and that is; trade for the outcome that has the highest statistical probability of occurring. To explain this further lets pose a question. Why didn’t the market make this move a while ago similar to the recent strong moves in CHF & AUD?
INSERT CHART
The answer is the Strength of the move was deteriorating in advance of 1.50. Every trader had their eye on 1.50, but obviously no one was a real buyer (for now) otherwise at 1.4830 when momentum started to stall we would have had traders continuing to bid up the EUR. Lastly, when price action was negligible on the big cross of 1.50 that should have been another tip that there were no big orders lined up to continue buying north of 1.50.
We added a MACD to indicate when the momentum started to wane. There are number of overbought tools on your platforms that you can use, from Stochastics and Oscillators to something as simple as the RSI.
Analysis by http://www.golearnforex.net
Daily Review 28/10/2009
USD Dollar (USD)
The Dollar strengthen during yesterday trading session as Confidence among U.S. consumers unexpectedly fell in October for a second month. The Conference Board’s confidence index dropped to 47.7 from a revised 53.4 in September. NASDAQ decreased by 1.2% and Dow Jones slightly rose by 0.14%. Crude oil rose by 1% closing at 79.55$ a barrel after a volatile trading session as investors wait for the oil inventories today. Gold (XAU) weakened by 0.7% closed at 1035.4$ an ounce. Today, Core Durable Goods Orders are expected at 0.6% vs. -0.3% prior, New Home Sales are expected to rise from 429K to 443K.
EURO (EUR)
The Euro weakened versus the Dollar for the third day in a row on concern a rally in stocks and commodities can’t be sustained. M3 Money Supply came out worse than expected at 1.8% vs. 2.1% forecast. Overall, EUR/USD traded with a low of 1.4770 and with a high of 1.4926. Today, German Prelim CPI is expected at 0.1% vs.-0.4% previously.
EUR/USD – Last: 1.4811
|
Resistance |
1.4824 |
1.4927 |
1.5046 |
|
Support |
1.4770 |
|
|
British Pound (GBP)
The Pound strengthened against the Dollar after the Confederation of British Industry\’s distributive trade\’s survey reported sales balance rose to +8 in October from +3 in September, better than economists\’ forecasts of a rise to +5. This is the fastest pace of growth since December 2007. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6438. No economic data expected today.
GBP/USD – Last: 1.6358
|
Resistance |
1.6438 |
1.6636 |
1.6693 |
|
Support |
1.6286 |
1.6250 |
|
Japanese Yen (JPY)
The Yen rose against the Dollar for the first time in 6 days as a plunge in Treasury yields after the record $44 billion auction in two-year notes made the Dollar less attractive to Japanese investors. USD/JPY traded with a low of 91.70 and with a high of 92.32. Retail sales came out at -1.4% vs. -1.5% forecast. No economic data expected today.
USD/JPY-Last: 91.18
|
Resistance |
91.57 |
92.19 |
92.32 |
|
Support |
90.77 |
90.48 |
|
Canadian dollar (CAD)
The Canadian Dollar appreciated from a three-week low, gaining for the first time in four days amid speculation its decline was too big to be sustained after it reached a key technical level. Overall, USDCAD traded with a low of 1.0626 and with a high of 1.0716. Today, BOC Gov Carney Speaks.
USD/CAD – Last: 1.0664
|
Resistance |
1.0696 |
1.0717 |
|
|
Support |
1.0630 |
1.0500 |
1.0450 |
Research by http://www.ufxbank.com
A Brief Overview on the Forex Trading Platform
The forex market is regarded as the largest market in the world with a turnover of about 3-4 trillion dollars. The forex trading platform enables an individual to purchase a currency and sell the other. The currencies are generally traded in pairs such as the Japanese yen and the US dollar.
There are basically two reasons to sell or purchase the currencies. About five percent of the regular turnover is produced by the governments and organizations that sell or purchase the services and products in a foreign country or the ones who have to transform the gains from the foreign sales in domestic currency. The remaining ninety five percent is signified by the speculative transactions or profits.
Working of the forex System- a number of traders do emphasize on the major forex currencies. At present about 85%of regular dealings include such kind of currencies along with the British pound, Japanese yen, US dollar, Euro, Swiss franc, Canadian dollar and Australian dollar. This market is open for twenty four hours a day; forex trading commences in Sydney and then moves throughout the globe. The traders can react instantly to the currency fluctuations that are as a result of social, economic and political events then they do take place.
The forex market is regarded as over the counter market as the transactions here are either conducted by electronic networks or telephone without any central exchange. It is not at all difficult to read the quotations of the foreign exchange if you basically remember tow things in general:
- The first currency that is being listed in known as the base currency and its value is 1 USD always.
- USD is the general essence of the forex market and presently it signifies the base currency for quotations.
While using the forex trading platform you would frequently observe the quotation of two sides the ask and the bid. Bid is indeed the price wherein you can sell the base currency and ask is the price at which one can purchase the base currency.
If you are willing to invest your sum then you can start using the forex trading platform without any doubts anytime. The transactions of the forex market have to be treated carefully and precisely as you may everything here in this market if you fail to take precise care.
There are forex trading platforms available for the interested forex traders and one has to learn how it works. Once you know the theory, you will be able to trade successfully in forex and change your lifestyle accordingly. The only thing is you need to adhere to the rules established or defined by you.