The pair has been  trending downwards and has made a small retracement upwards.

We want to enter the main trend which is still downwards but first wait for a confirmation the trend continues.

The entrance point is located below the last bottom the pair has made on the 4 hour chart.

More aggressive traders could try and short the pair from its current location but they should be advised the retracement upwards might continue higher and a SL of above 1.6170 is recommended for such traders.

 The RSI is near 50 in neutral territory.

SL is located above the last top the pair has made yesterday and above the 100 period moving average which is likely to act as a resistance for the pair.

TP’s are located  slightly above the support levels the pair has.

All analysis is based on the 4 hours chart.

Current rate: 1.6075

As the forex market is open twenty four hours a day, it is very essential to constantly monitor the market so that you do not miss out on any opportunity.

An automated trading system can keep a constant check on the Forex market. It is also capable enough to stop losses even while the trader is away.

There are two kinds of automated Forex trading system. These are:

• Desktop- based system
• Web/Internet based system

Desktop- based system

A desktop based system involves the use of a computer system. Internet connection is not required in this system. All the forex charts and data are banked in your computer’s hard drive. Traders using this type of system must maintain back-up files. This kind of system is not very popular amid traders as it is always under virus or security threat. Such an occurrence can smash your software and you might end up losing all your important data. In this case your data would all be ruined and you would not be able to recover it. This is also not considered to be safe; other traders can also access your data.

However, there are ways to prevent such hazards from your desktop based system. You can take extra safety measures in order to protect your software and computer. You can update your back-up files at regular intervals. You must also set a password for your data. Trading software can also be password protected. You must download a good anti virus so as to ensure that your computer remains free from all kinds of viruses.

Web/ Internet based system

In web or internet based system, there is no need to set up any extra software in your computer in order to use the automated Forex trading system. In this system the Forex account is taken care of and handled by a web-based provider. The server manages the data storage and the provider is also accountable for security and maintenance. To ensure utmost protection, your data is encrypted and the provider also maintains a back-up in case your data gets lost.

A best feature of this system is that it offers flexibility to the traders. With an internet-based system, a trader is free to trade anywhere.

Both the systems have their set of benefits and drawbacks. You need to figure out as to which one would suit you the best.

However, it is not as simple as it seems. You will come across traders who did not make any profit with automated system; in fact they have lost their money with its use. It actually depends on how you use the system. There might be some traders who are losing just because of some silly mistakes which can easily be avoided.

What exactly are the things that we must be aware of and what are the mistakes that most people make while using the automated Forex trading system?

First of all it is very important to choose an appropriate forex trading system. There are a lot of fake trading systems available in the market that are of no good. You must make sure that you opt for the right forex system. In order to find out which system is genuine and which is fake you can go through the reviews and testimonials of various customers. These testimonials are readily available on various websites. However, you must not base your decision completely on these reviews or testimonials. You must also check forums which do not just include the opinions about the software but also discuss the various issues faced and the way the customers were able to handle them.

Another common mistake that a lot of traders make is that they go for the software purely based on its rating. They opt for a system just because it has got a good rating and positive feedback. You must understand that even such a software system can come across certain problems. You must ensure that the software you are opting for offers you a twenty four hours live support.

There are some traders, specially the ones new to the trade who believe that once they have bought an automated forex trading system and have put it in place it is impossible for them to lose. You must understand that forex market is highly unpredictable and at times even the most exclusive trading systems can commit errors and make you lose money.

It must also be understood that you cannot make profit everyday. You must be patient in your dealings in order to gain profit.

There are quite a few traders who leave everything to the trading software; this is wrong. Though the trading system is fully mechanized, it still requires human intervention from time to time.

You must ensure that the trading software you are using should be in-sync with your trading technique and knowledge.

A number of forex trading systems consist of the technical signals. What are these technical signals? They are nothing but a series of information points that are spotted in a forex chart. These points are attained using a mathematical formula that is being applied to the rate of any given pair of currency. You can say that it is a chart of the rates spotted in a number of ways that aids you to observe the other important aspects of the rate.

For example let us consider a long MA crossover indicator. The rate has increased adequately to save a short period MA crossover procuring a long indicator. Some traders look upon it as the MA crossover made the rates increased, but actually it occurred in the other way. The MA crossover indicator happened as the rates increased gradually.

The decision related to trading depends upon the technical signals without considering the price action. This indeed gives less precise results. For instance, a long indicator produced by MA crossover because the forex market reaches a significant level of resistance. If the rates all of a sudden do start bouncing back off that significant level, there is nothing great to take this indicator. This is because the price action is telling you or indicating you that the market does not wish to rise upwards anymore.

You need to make an ideal forex trading system. For this you have to ensure that the trading systems suits your trading personality, or else it will be difficult for you to follow it. The goals and needs of the different traders do vary. Hence, there is no such system that fits precisely to the needs of all the traders. It is suggested to carry on your own research on different types of trading styles and technical signals unless you come across a concept that will work for you precisely.

You need to follow and maintain a strict discipline in your forex trading system. Do it by opening a demo account first, then go for a small account and gradually a regular account if you feel comfortable and are consistent with the trade.

 One of the more preferred choices after Windows OS is the Linux based fx platform. One of the problems faced by Windows based OS is that it is susceptible to viruses. If your account gets hacked by virus, the consequences may be very fatal. A false transaction might be initiated on your behalf and you might not even realize that. This does not happen in case of forex platforms based on Linux. This OS is relatively free from viruses. Also, the GUI of this platform is flexible and can be easily customized.

 But, there are also some disadvantages associated with a Linux based fx platform. You might encounter an error message saying that the platform is not compatible with the browser that you are using but the fact is that you have a latest version of browser.

 Java based trading platform is non down loadable platform. It is made available via your web browser only. The advantage of this is that you do not have to install the software before using it. This is particularly useful if you access your account from different places. In case of Linux based fx platform, you have to download the software on your PC first, if it is not already installed. All that you need is a high speed internet connection. But this very feature can prove to be a drawback if your internet speed is less. With poor internet connectivity, it will take time to load the pages and navigate from one page to another can be time consuming. If you have traded in forex market, you would know that a delay of few seconds prove to be very costly. Also, since you always have to be connected to internet, you are always prone to virus attacks.

 Also, Java based forex platforms have less features as compared to Linux based platforms. Only the features required to place an order is made available to the user. For other tools, you will have to purchase some another trading software.

 It is essential that you first analyze how you are going to trade and what is your trading method. Different platforms will suit different types of traders.

More and more software are being introduced in the market. Some of these are actually beneficial like metatrader 4 but some will just give you fake promises but are just there to fool you. So selection of a right trading platform becomes very important for a profitable currency trading. The two functions that a trader must look for will selecting a forex trading platform is as follows: 

1. The first thing you should look for is accurate price feeds. You must not be aware of this but the data feeds that display the variable live prices on their trading platforms are many times not accurate. You must have also experienced this thing. Like for example you must have experienced huge price spikes of up to 500 pips within an hour. Certainly it’s a fault but many novice traders might not take it lightly. As they are beginners they will not understand this and may start panicking. 
2.     
      Being a trader, you depend on your charts to make good trading decisions. How is it possible to make good trade if the charts show inaccurate prices for trading? This will happen with you quite frequently especially if you are using a demo trading account. Thus make sure that you check you’re trading platform correctly whether it has accurate price feeds or not as your success in currency trading depends on it. 
3. The second requirement you should look for is the graphical representation of profit targets and stops. As we fairly depend on the graphical representation of the historical price movements during our trading, it would be better if the platform will also enable us to view where our profit targets and stops are graphically on the trading chart. This feature is useful for you to make better profit target with more chances of being strike. This means that with the help of graphical representation you can place your profit target near to the recent low or high swing.

Thus make sure that you follow these two steps before selecting your trading software.

It is convenient to trade with the help of credit cards as well as trading around the clock. Online currency trading takes place in real time with the exchange rates changing continuously in intervals of just a few seconds. The quotes that are shown are only precise for that specific time and change at the next instant. After deciding upon a rate when a trader executes his transaction, it is processed at that moment executing the trade immediately. You just need to have an internet connection to participate in online FX trading. Here the trading platform comes into picture. You need to register at a trading platform and deposit funds for easy trading before starting any transaction.

The necessities for registration differ from platform to platform. You need to sign up as an individual trader and fill out simple or complicated forms depending on the requirements of the government. Some platforms also require personal meetings and hard copies of all the documents for registration. Nowadays the security provided along with these platforms is also tight. The traders need to prove that the deposited funds for trading are not related to any illegal act like money laundering. Apart from the initial deposit, some trading platform also demand a maintenance margin or activity guarantee. These additional amounts are required to provide an extra guarantee and are generally frozen under the trader’s account.

There are specially designed software’s for particular trading platform which a trader is supposed to download for online transaction. Thus you cannot access your online trading account without downloading the software. But if you are a trader who cannot stay in office and has to do outside work, you should not worry. There are some online trading platforms which can be accessed from anywhere using a web browser. These platforms don’t require downloading any kind of software. The trader has to just sign in using their account details and then they can make deposits or trading. Thus by looking at all this features, online platforms has made trading more easy and secure.

This is where you are. You are thinking right you need not be any professional or genius to make fortunes in the forex market. There are many good and efficient forex trading software that will manage your forex trade. The forex software is no less than a robust intelligent robot that has been carefully and effectively designed. These forex trading softwares make all the calculations that are required to find out the best trade opportunities in the forex market.

The only thing you have to do is to buy the original forex trading software and install it onto your computer. When you install these software’s to your computer you become the holder of a lot of benefits. These benefits include:

• Trading and automated analysis of forex: As there are so many things happening in the forex market you may take quite long if you sit and analyze the market and then do the trading. If you install good forex software or a forex trading software all you have to do is relax and start concentrating on your trade. The rest of the functions like the analysis of the market and the trades will be done by this robot.
• Continuous monitoring of trading: By this you can stay assured that that none of the good trading opportunities are missed by you. This forex trading softwares act as a watch dog and it gives you the information of all the best trading opportunities and this software also has the ability of doing this trade for you.
• Security of your transactions: Installing forex trading software ensures that your transactions are not copied or do not fall into the hands of the hackers. The main advantage of this forex trading software is that it helps you perform or itself performs all the transactions with utmost safety and security. •
• Difficult calculations: The forex trading software has an ability to perform all the difficult mathematical calculations which helps in figuring out the trading opportunities. Thus you need not be a specialist or break your head on calculating difficult calculations so as to perform your trades and transactions in a simple way.

Thus, good trading software and better forex trading strategies can be of great use and help for gaining desired profits.