Online Currency Trading Blog

GoLearnForex Analysis 16/11/2009

EUR Struggles to Break 1.50 Handle by GoLearnForex

EUR/USD:

The EUR continues to struggle to break the 1.50 handle.  Last week, the EUR on a daily chart, completed the formation of a double top just above resistance at 1.50 [shown in the red boxes in the chart below].  The 50 day SMA continues to hold support for the EUR at 1.4764.  We have not had an entire candle appear below the 50 SMA since April, however, we have bounced off this MA support nearly 15 times since then.

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If an entire candle appears below the 50 SMA that would be a good indication to open a near term EUR short position.  On the flip side if we breach R1 we would resume a long EUR position.  You can also see the formation of an ascending triangle when using the 50 SMA as the slope and R1 as the top side.  Although trading becomes thin towards year end and a a result the market can appear a little more volatile we anticipate the 50 SMA will move in a more parallel form to R1.

GBP/USD:

Last week the Pound broke top side resistance at 1.6750, striking 1.6843 before retracing and barley closing above R1.  The Cable has been moving sideways since June bouncing off S&R with near predictability.  As a trader you want to decipher when the current short term trend near S&R is fading.  It not only allows one to time the market but it also can limit your losses.  By setting Stops just north or south of S&R after a reversal appears to be forming a trader will limit their losses should the actual breakout occur.

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In order to time the reversal correctly we suggest using candle patterns in conjunction with at least an additional indicator such as an RSI or even a Stochastic oscillator which will highlight over bought/sold points. On the Graph above you can see the candle pattern referred to as a Hangman (red arrow on graph) which indicates a reversal.  On the lower part of the graph you can see the RSI headed down from its near breach of 70. Combine that with price at its current R1 level and you have a nice short entry point.  Remember you limit your risk by placing a stop loss just above your point of entry in case a breakout really occurs.

Dollar Ends Mixed Across G-10 Commodity Currencies by GoLearnForex

The Dollar ended the week mixed across the G-10 with commodity currencies advancing while the remaining G-10 currencies suffered minor losses.  Global Equity Markets finished the week in positive territory although Futures are pointing towards a slightly lower open.

Gold finished the week ahead at 1,118.70 while Oil lost a little over $3 a barrel to close at 76.35. The Bond Market capped a stellar week with the U.S Government auctioning an additional $81 billion in notes and bonds.

In Japan, GDP figures are set to print Sunday night.  Forecasters are looking for a slight increase in Annualized GDP figures.  On the docket for tomorrow we have Retails Sales set to publish in the U.S.  This may be a real market mover, as traders will use this as a barometer for the impact unemployment  will have on the economy.  Additionally, this will shape expectations for the popular Holiday season Forecasts.

Upcoming Forex Events for November 16, 2009

USD Core Retail Sales (MoM) Forecast   0.40%  Previous  0.50%

USD Retail Sales (MoM) Forecast  1.00%  Previous  -1.50%

USD Fed Chairman Bernanke Speaks

GBP MPC Member Sentance Speaks

Analysis by http://www.golearnforex.net

Tags: daily forex analysis, forex analysis

Managed Forex Account and Automated Forex Software

In this article, we will discuss about a unique feature of Forex trading, known as the Managed Forex Trading Account. We will also discuss about some of its benefits that can further facilitate your Forex trading venture. Apart from this, we will try to provide you some information about the automated Forex software. Discussing about the similarities and dissimilarities of these two is also our objective.

Doing Forex trading through Managed Forex Trading account was the only viable option for gaining “Easy Forex Profits” for many days. The people who do not want to learn how to become a prolific trader usually deposit their funds in a Managed Forex Trading account. They also sign a Limited Power of Attorney that gives the rights to make decisions on what trades will be placed on their account. In this arrangement, the traders can simply spend their time as they choose and can also get access to more funds to trade with. They also receive a management fee in most cases. The fee ranges between 20-35% of the profits.

Now, let’s discuss about the Automated Forex Software. Many Forex traders believe this to be a more viable option than the Managed Forex Trading Account. There are many automated softwares available in the market and you can choose the one that suits your personality and requirements to the most.

The automated Forex software allows more flexibility than the managed Forex accounts. You can start your trading venture with a small investment of as little as $500 and you need not to pay any management fee to the broker. You can keep the entire 100% profits they make you. Another advantage is that you can customize the software according to your choice and also control whether it will act conservatively or aggressively. You can also choose the default settings of the software and rely on it.

In most Managed Forex Trading accounts, you are restricted about when and how much of money you can withdraw from your account. On the other hand, while using automated Forex software, you can easily control the timing and the amount of money you want to withdraw from your account. The software will automatically adjust to compensate for this.

Now, if we compare the two options, one thing can be said that the automated Forex software is definitely a better option to choose, especially if you do not have a lot of money to invest. In Forex trading, the primary goal of Forex traders is to earn additional money, beside regular income. You can achieve this goal with the help of automated Forex software in a much better way than the managed Forex trading accounts. Now, it is totally up to you which option you should choose.

Tags: automated trading software, forex market, forex trading, Trading software

Forex Trading With Automatic Robot Software Programs

Automated Forex trading with automatic Forex robot software programs written in the MQL-4 programming language for MetaTrader 4 Platforms should have the potential of allowing the programmer to back-test for functionality and also allow the Forex trader who is investing in automated Forex trading software to test the automatic Forex robot software with advance-testing. Automated Forex trading robots that only offer back-testing results are not providing you with foreign currency trading statistics that are perfect enough to base your purchasing decision on. These robot programs that only provide you with simulations are actually providing you with nothing more than an animated screen shot. The best Forex expert advisor automated Forex trading software programs will have evidence they are the best advisors for Forex through their forward-testing results.

Back testing automated Forex trading is normally useful to test trading strategies and Forex trading scenarios in the foreign currency market. Back testing results provided by the best Forex expert advisor automatic Forex robot programs permit you to compare one Forex advisor against another. They are not, however, a perfect example of profit potential. Back testing characteristically occurs in one-minute increments, for example with the MT-4. In authentic Forex trading, Forex trading occurs in seconds and fractions of seconds. These fractions of seconds are generally taken into consideration during forward testing Forex market analysis strategies performed by automatic Forex robots in an automated Forex trading system program. The finest Forex expert advisor automated Forex trading software programs will offer forward-testing results so that the Forex robot purchaser can see the incremental changes, like price spikes and spreads that occur during those seconds. This gives the purchases of the automated Forex trading robot program exact profit and loss estimates.

Forward testing automated Forex trading software robot programs will also give you genuine time results and not just for testing your chosen currency trading marketing strategies and profit potential. Forward testing automatic Forex robot software programs grants you an opportunity to examine options and flexibility, test out software glitches and test out disconnection potential and computer conflict potential.. If you are running Forex trading scenarios from multiple automated Forex advisors and automatic robot programs, it is probable that an automatic Forex robot from one Forex automated trading program will impede with another or cause internal computer conflicts.
Automated Forex trading programs with automatic Forex robot software ought to be forward tested to alert you of any technical problems, Forex software application options, currency trading discrepancies between real and promised and divergence between automated Forex trading programs and automatic Forex robots. The best Forex expert advisor automated trading programs will have forward-thinking and forward-testing robots which will turn a foreign currency investment into a profit in your Forex market.

Tags: automated trading software, best trading software, forex market, forex trading platform, Trading software