Currency Trading - Big Profit Opportunities For The Week Ahead

by sacha tarkovsky

Please find below currency trading opportunities for next week based upon the same style of analysis we recently published to catch the big moves in energies.

There look to be some great opportunities in the currencies this week, so let's look at some of the major currencies and the best ones to focus on for Monday.

Dollar getting short - With good risk reward

The dollar primary trend is down against the majors with the exception of the Yen.

While the primary trend is down, we have had a good bounce but it looks like it could run out of steam and this will be a good time to enter new dollar shorts.

As per usual were using charts and three indicators the stochastic, the Bollinger band and RSI and you can get some great free charts at futuresource.com

Get confirmation before trading

Don not try and predict the moves, always wait or confirmation of short term momentum shifting to the upside by using the stochastic indicator to time market entry.

Currency trading opportunities

The Euro

The primary trend is up and the sort term trend is down

We favour the long side and would look to key off the 1.24 level

Watch for stochastic momentum to turn up with bullish divergence above or at this level to initiate longs into the market.

If prices can steady resistance is at the mid bollinger band, if this and the recent double top gives way look for an advance to the highs.

RSI 44

The Dollar Index

The primary trend is down and short term trend is up

Resistance is at the 88.00 level. Look for a selling opportunity into this level.

Stochastic momentum is up, but is overbought look for selling opportunity into this level and sell on stochastic crossing to the downside with bearish divergence. Dont jump to soon, wait for confirmation.

RSI 58

Comment: This is a trade we like and we will be looking to get short as soon as short term mometum falls.

The Yen

The primary and short term trends are down and prices are looking to test the critical 86 level.

A test of these lows looks imminent and traders should go with market action by selling a break of the lows.

If prices, however steady at these levels and hammer out support take a stochastic crossover as a signal to go long for a quick pop to the upside.

We would not try and trade this move and would wait on the sidelines for now

RSI 30.48

The British Pound

Primary trend is up and the sort term trend is down.

Key off current levels and look for the 1.80 level to provide strong support.

Watch for downside momentum to ease and time entry on stochastic crossover to the upside with bullish divergence.

RSI 39

The Canadian Dollar

The primary trend is up and the short term trend is down.

The dollar advance is looking like it will run out of steam and resistance is at the 8900 level, which is the bottom of the recent channel.

RSI 43

This is a great long term trend and we are keen to go long and with the dollar index is our favorite trade of the week.

We have covered other majors but these two are our favorities while we are keen to be long the CD adn short the DX we need to see price momentum shift in our favor and will watch closely for short term strenght to enter. As per usual dont jump to soon.

About the Author:

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as well as other valuable material to make you a successful trader visit http://www.wellingtoncr.com

The Best Time to Day Trade the Forex Market

The three major forex trading ‘sessions’ are as follows (all in Eastern Standard Time):

1. New York open 7:00 AM to 4:00 PM

2. Japanese/Australian open 7:00 PM to 3:00 AM

3. London open 3:00 AM to 11:00 AM

** Often, the best times to trade is at the beginning 3-5 hours of the above mentioned opening times, because the major currency pairs tend to move the most in a particular direction. Especially when there are economic news releases.


THE ABSOLUTE BEST TIME TO TRADE IS FROM 3 AM TO 11 AM EST.

The New York and London trading sessions overlap between 7 and 11 am EST. The volatility is much higher and trading opportunities are much more frequent with bigger moves, especially in these four hours.

The currency pair that moves the most during these hours are the Usd/Chf (#1), then the Gbp/Usd, then the Eur/Usd, then the Usd/Jpy.

This is when you can make 30-100 pips trading in just a few minutes or hours, using any of our strategies in any time frame, especially around news releases.

If you need help in converting EST time zone to your time zone, please use this world time zone converter:

http://www.worldtimezone.com OR

http://timeanddate.com/worldclock


DAILY FORECAST WEBSITES

First thing in the morning, I go to http://www.fxstreet.com to check out some forecasts and news release times for the day. I always check before I start trading and I write down the support/resistance, trend, trading range, target highs & lows, news release times, etc. on my Daily Trading Sheet, which is provided in the Day Trade Forex Advanced course.

This is an interesting forecast site that I also like:

http://www.fxstreet.com/nou/content/107780/content.asp?menu=technicalanalysis

Another place to find out when the world economic news releases are: http://www.forexnews.com and scroll down to the bottom of the website for the list of the current week news releases that impact the Forex markets.

Most often, the economic news release is scheduled for 8:30 AM EST. If you are in a trade at this time, make sure you have your stop loss at a place you are happy with.

The volatility is scary and fast, but if you aren\'t already in a trade, you can jump in once you see the major trend, usually after the first 5-15 minutes. Look at a 30 min chart to see the major trend.

IMPORTANT NOTE: Most of the forex brokerages have now stopped guaranteeing their stops during fundamental news release times, as the volatility is so extreme, that the price can often move faster than their servers can keep up with. Thus, please be very aware that getting into and out of a trade when you want, can sometimes be next to impossible. You can possibly encounter several things during news release times: whipsaw of the price, slippage, freezing of the platform, disconnects, re-quotes of price, loss of money, etc. Don\'t bother calling up any dealing desk to complain, as they are all now distancing themselves from this problem, and they all have a disclaimer on their websites. It is a buyer-beware type of situation. If you choose to play the news, you have to be aware of it\'s risks. The rewards can be very great in just a few minutes, or it can go against you. Make sure that you immediately put in your stop.

Author:

Erol Bortucene and Cynthia Macy are co-authors of ‘The Day Trade Forex System: The Ultimate Step-By-Step Guide To Online Currency Trading’.

Visit:
http://www.daytrade-forex.com

Sign up for the free \'Trade of the Week\' for examples of actual trades using the Day Trade Forex System.

Visit their other websites at:

http://www.successtrading2000.com
http://www.shortterminvestingsite.com
http://www.professionalforextrading.info

Forex Trading - The Next Hottest Home Based Business?

by Richard Stranberg

When running a home-based business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.

One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time don't have the money to invest in a home-based business and the people that have the money don't have the time. With Forex Trading, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.

The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.

Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX business.

The third and last classical business truth is that most people are prevented from starting a home-based business because they don't feel good enough about themselves. They don't feel like they're educated enough. I read stories all of the time about people that feel passionate about something or they just pick something that they are relatively good at or have done before and start a business. They just take a chance. If you want to do it, step out. Take that first step. Don't drop any huge sums of money, of course, but do a little research, make a small investment and start your adventure down to the road to FOREX trading. You don't need a doctorite degree to get involved with FOREX trading, but after a couple of months of good study, it's quite possible to generate a significant source of cash from FOREX trading.

Richard Stranberg is an experienced forex trader and has made a lot of money with his Forex Trading System. He contributed this article to the Forex Trading Guide. Visit the Forex Trading Guide at www.forex-trading-guide.us.

About the Author:
Richard Stranberg is an experienced forex trader and has made a lot of money with his Forex Trading System. He contributed this article to the Forex Trading Guide. Visit the Forex Trading Guide at www.forex-trading-guide.us.

A Good Forex Trading System And Its Main Characteristics. by Adrian Pablo

Forex trading is one of the great money making opportunities available these days. People from many walks of life, men and women, decide to join the forex trading world everyday looking for the great style of life a profitable forex trader can achieve.

But once you enter the world of Forex trading the first thing you will realize is that it's not easy to become a profitable trader. The more you learn about the currency markets the more you realize the urgent need of a good forex trading system in order to make money and not just spend your time entering trades as a hobby taking you nowhere.

There are many companies and individuals out there offering you forex trading systems that promise to be the real thing and that will teach you how to earn tons of money easily. But you must be aware that not all of them are always sincere and you should be ready to look for some specific characteristics good forex trading systems must have. For example; they must be willing to let you know part or the basics of their trading system for free, so you can evaluate their claims and be sure of what you will be buying from them. Also, they should offer you a money back guarantee in case the complete system doesn't stand to their initial claims. A very good sign of the "goodness" and utility of the system would be if the company offering you their services offers to follow up with you about any doubts and questions arising from the use of their trading system. This follow up can include a users forum, contact phone number, email direct contact, etc. Also the forex trading system you are acquiring should be recession-proof and go beyond the traditional linear models that are based mostly on past results, it is difficult to make decisions about the future moves of the currency markets based just on past performance. Ideally, the currency trading system you get should allow you to go with the market direction, either up or down, instead of hoping and believing it will go one way or another, and then find out it was all wrong. And, of course. The system should be given to you with software that performs the complex math behind it, making it simple for you to use at any time and without strange formulas. Look for these main characteristics in the forex trading system you are planning to buy, and if it full fills them; then you are quite certainly making a good decision by planning about using it in your trading career.

About the Author

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of forex trading , visit:

http://www.1-forex.com

Winning Strategies With Forex Charts by Joseph Plazo

As you read forex charts, remember that the two fundamental approaches for online forex trading: fundamental analysis and technical analysis.

Fundamental analysis doesn't rely on forex charts. It scrutinizes political and economic indicators to determine trades. Charts here are deployed as used as a secondary reference.

Technical analysis on the other hand, attempts to predict price swings by analysis of historical price activity. Those who use technical analysis study the relationship between price and time.

The most actively traded pair of currencies is the Euro and the US dollar, so we will use them in our example. The dollar is on the right hand side of the chart and the Euro is on the left hand side. The currencies are expressed in relationship to each other in pairing. Forex charges will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left side. Looking at the typical EU-USD, chart you will notice the last price displayed per given date. This number is always emphasized. The time is tabbed horizontally across the bottom of a chart and the price scale is displayed vertically along the right hand edge of the chart. The time and the price are set in all caps to help the trader remember that technical analysis rests upon the relationship between time and price.

The trader observes the price and time movement on a chart. These include bars, lines, point and figure, and Japanese candle sticks-- the most favored method. With the candlestick method there is a large, red section that is the body of the candlestick. Lines protrude from the top and bottom and they are the upper and lower wicks. When you look at all the candles on a chart it is apparent that bodies come by difference sizes. Sometimes no body exists at all.

The same is true with wicks. Candle wicks come by many difference sizes; there may be no wick at all. The length of the body and the length of the wick are determined by the price range for the candle. Longer candles will have had more price movement during the time that they were open. The top of a candle wick is the highest price for that currency while the wick's bottom is the lowest price. A currency is bullish when the close of the candle is higher than the open. In simple terms this means that there were more buyers than there were sales during the opening time period. Sometimes the candles will not have wicks. The price opened and it dropped off until it closed.

Forex charts don't offer bullet proof trading hints, but they can help a trader. Past trends do have their place in forex trading as most traders will admit, and using the charts to track historical trends can assist a trader in making a snap decision.

The online investor typically joins a service that provides realtime charts that updates on currency activity. Charts can be checked on a minute to minute basis. For those who primarily do their trading based on historical accuracy this can ease the burden of prediction.

Most forex traders however use a combination of fundamental and technical analysis. They may chart historical trends, but they will also pay close attention to political, cultural and economic indicators within a region. They might use charts and other techniques to check correlation between political climate and currency fluctuations. But even the most sophisticated technical analysis software or tool has its limitations. A trader must be prepared to take risks... and invest money that is not needed for the immediate future.

About the Author
A master of manifestation to his associates, Joseph R. Plazo offers intense executive coaching so people can find jobs and build careers.

Online FOREX Trading - The Secret of Building Huge Profits Quickly

The secret of how to make big profits with online FOREX trading is staring traders in the face - but most traders don't see it. The secret is ...

Ignore the usual advice you are given, on how to make money in online FOREX trading - and do the opposite!

Read each myth outlined below - which are touted as the great ways to make money on the FOREX - then, when you know what's false, read the truth in the "Reality" that follows each myth.

Myth 1: Day Trading Makes you Money

No, it doesn't - and it's obvious why.

Daily movements are totally random - and by the time you throw in commission, and slippage, you're guaranteed to lose money.

This myth is perpetrated by brokers, and vendors on commission kickbacks - that's why it's such a common myth. Remember you lose they win - period.

Reality - the way to make money in online FOREX trading is to follow the longer-term trend.

The big currency trends last for months, or years - so lock into them, and pile up huge profits.

Myth 2: You can Buy Success - by Following a Guru or Tip Sheet.

For just a few hundred dollars, you can learn systems that trade with 90% accuracy or more. - Yeah, right. If that's the case, why don't the vendors and gurus simply keep quite, and make money for themselves? Answer - because they can't - it's all sales hype.

Reality - if you want to make huge profits by FOREX trading, the reality is - no one can give you success - you need to take responsibility, and do it for yourself. All the great traders do this - and you must too.

Myth 3: There is a Safe Way to Trade Currencies

Most traders don't like risk - they believe people that say that you can trade "safely".

Traders try and follow scientific theories - and believe it when told, that they only need to risk a few hundred dollars, to make thousands.

Reality - online FOREX Trading involves risk - pure and simple. If you don't want to take risks, put your money in the bank, and earn interest.

If you want to make money, be selective on the trades you make - and have confidence in your own judgement.

If you take calculated risks on trades with good odds, you will pile up huge profits.

Myth 4: Buy Out of the Money Options for Leverage

In FOREX trading, options give you unlimited profit potential with limited risk - so brokers tell you to buy out of the money, cheap options with little time value. These options give you greater leverage - and you can then make huge profits, when your option trades "in the money"
Reality - out of the money options, with large time decay, are cheap - because the odds of them trading in the money are small.

In FOREX trading, this is the same as backing the outsider in a horse race - of course, you can be lucky, but over time, you lose.

Buy in the money options, with lots of time value. You won't make as much per trade, but you will make huge profits over time - and your odds of success are far better.

Myth 5: Timing the Entry to a Trade is Crucial

Many brokers and gurus say you need to be in, ahead of the move - and predict the market tops and bottoms. You will then get all the profit from the move.

Reality - trying to pick tops and bottoms is a mugs game - wait for confirmation, and then catch the trend as it gets underway. Sure, you'll miss the absolute top and bottom, but no one can pick those anyway - so don't even try. If you get even 70% of the big moves in FOREX trading you'll make huge profits. Read articles on breakout systems, for more information on how to do this.

Step Away from the Crowd

As you can see, the way to make money in online FOREX trading is to step away from the 90% of traders who lose money - and join the elite 10%, who make the big profits from the big moves.

Ignore the conventional wisdom, and understand the reality - and get rich!