Archive for October, 2009
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
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