forex trading: The benefits of Pivot point in taking profit

I have always found it rather mysterious how mathematics takes its course in our day to day living especially when it relates to money making. Be it in the field of sciences and engineering, banking and investments and also in the course of trading the forex market.

A very simple tool like the plotting of pivot, support and resistance points in an uptrend or downtrend serves as a vital tool in profit taking especially when you have traded a particular currency pair like the GBPUSD.

In the currency market, we can always plot our daily pivots, or in a case where a trend is established as an uptrend or downtrend plot our weekly and monthly pivots. These helps in telling us where we can expect to take profit at the end of the week or month depending on how the pair trends or the strength of the trend.

It should be noted however that trends persist because we have millions of emotional traders all around the world that are looking to increase their equity and these traders rely on the economic news in particular from various countries to place their trades.

In plotting pivot point for this purpose, simply point your cursor on the daily chart on your meta trader, this gives the High, Low and Close for the previous day’s trading, add these up and divide by 3.

Mathematically: Pivot Point=H+L+C/3

Support1= 2*PP – High                          Resistance1=2*PP – Low

Support2=PP – (High – Low)                  Resistance2=PP + (High – Low)

Now, sometimes your pivot or support might be too far for the price action on the currency pair to get to probably as a result of no strong data(fundamental) for its up swing or down swing( ie in an uptrend or downtrend). In this case, you simply do a little calculation. Take for instance, the pair breaks through the pivot point but can’t get to the first support level, then add the pivot point to the support and divide by two. Use that as your temporary take profit point. You can also look to other time frames apart from the one you trade with. It usually speaks for itself. I suggest using SMA100.

For further information on this and how to maximize pivots for extra gains drop a mail.

You can also write an Expert Advisor (EA) that will plot this pivot on your chart which will update daily using your meta trader metaquotes language editor.

Use this in line with your trading system and you will be consistently successful.

Looking to trade the forex market without sweat? Click trade forex easily

Want to make money trading forex? Look to price action

To be really sincere, making pips in forex is subjective to just one indicator; Price action. I really see no need clustering the charts with so many indicators that we really don’t follow probably as a result of price action at that particular time. Remember, we are emotional traders, right?

Making money trading the forex market is probably less feasible if we don’t device a means of understanding the signals that price action tell us.

Now, lets site an example.

Trading the GBP/USD, lets assume the pair begins to rally with GBP gaining ground and probably you are long the pair. You get excited, you are gaining and suddenly if you look well enough, you notice the strength in the GBP lagging but your indicators still confirm the trend, so instead of taking your profits at that time, you probably leave the trade open and suddenly before your very eyes and even before you could say “Jack” the tide changes, with you licking your burnt finger, meanwhile the obedient indicators just follow suite at that last minute change. Poor you..

Now, you might say, what does he mean by this? Following our indicators are probably the best options, but what is safer is looking at the price action at the moment in conjunction with those indicators.

In my chart, I have a SMA100, I have tested and seen that when prices breaks through it (upwards or downwards) there is always a rally but having looked closely at price action, I have come to the conclusions that it is not always so. So many times prices have broken  through, only for the reverse to be the case.

Want to make money trading forex? Be attentive to price action! I cannot but repeat this again and again. I have also said this several times, in other to be at the right trend and early enough say 70% of the time, learn to consult longer time frames. It earns you more. Success to you out there.

Want to trade the forex market profitably? Bag more pips and enjoy your vacations? here’s introducing forex loop!. Be your own boss now.

Forex Trading by experience by experience (Please learn)

This year marks my 4th year in the forex business and to be exact I know actually what works and what doesn’t but you know what recently I have been trading out of fear and do you know what happened? On more than three different occasions, i lost a lot of money.

So how come, this is because I decided the trading method i was using wasn’t fast enough and needed something that would be in and out, more like scalping. I’m not saying to scalp isn’t alright, nope, not at all but that wasn’t the type of trading I was use to and deciding to trade that way really made me ignorant of a preceding  trend and I kept buying when i was supposed to be selling, you know like some nasty expert advisors out there that is said to generate massive amount of cash and which keeps buying even when the trend is down.

Also, I failed in a most important part, keeping my account open for excessive drawdown, how do i mean you’d ask?

When you take a trade and you do not count the cost of the trade and become irrational with your funds, you are actually opening your account for a drawdown. When you embark on taking any trade without pre-planning an exit strategy, then you are risking good money for nothing.

Now the number one advice I’d like to give to anyone hoping to trade confidently is this, stick to a trading style which consist of your exit strategy cum your money management check up.

If you are deficient of this like I had been, then I’d like to advice you to turn back to demo trading or better still trade smaller lots in your account using this same strategy until you’ve become used to it and re faithed your self in your strategy.

Trading different strategies is like a man or a woman who never gets satisfied with a partner, such a person can never settle down in life. Re-trust  your strategies and stick with it come rain or sun.

Also its pertinent here that the time frame you trade here should be of utmost important and the indicators you use in taking trades. What do I mean, using a time frame like 5mins keeps you open to all the noise in the market and you may never really know when a trend is in formation thus you end up selling when the trend is just about buying or buying when the trend is all about selling. This is not to say that trading 5mins chart is bad, no not at all but this should be done when you are looking to take some gains in anticipation of a move either long or short the pairs you are trading.

I specifically had been trading the 30mins, 1hr chart and trading this cahert gives you confidence that no matter the trend you are always on time and following it without any fear of losing especially once you are already profitable. You just set your take profit and your trailing stop and can go do other things because no trade is likely going to take you out without a profit to your kitty. See the post on trading with time frame to learn how to trade with 30mins or 1hr candle.

I think I’ll drop my pen here till later. Stay conscious and play safe trading.

Happy pipful day.

How to trade with timeframes say 15mins, 30mins, 1hr, 4hr or daily.

This looks like what is causing so many of us to loose touch with our trading and make us look as if we aren’t grounded in our trading style or preference. A word of caution though. Learn how each timeframe reacts with the currency pair in play and you’ll always set your buy or sell limits at appropriate points and it would always look as if you’re planning where price should touch before going in the direction of your trend.

An information however for you is this. I say it categorically because if you check trades in years past, you’ll find its always true.  I start by analysing the 15mins.

15mins : The best timeframe for picking a trend. This timeframe always respects the bollinger band and a trending move usually starts from here. Try plotting a bollinger band(62) and see it on the 15mins chart.

In terms of candle, it is note worthy that on normal conditions a 15mins candle usually moves at least 5pips counter  move before it continues in its intending direction. In a very liquid market it can move as much as 10 to 10 pips. When it moves more than 15pips then know the trend is temporary changed in the direction of that move.

30mins:  This timeframe says a lot without really being the best. Trading the 30mins tf could constantly earn you all you desire trading if you follow the rules of its trading. It also respects the bollinger band(62) unless the currency pair is trending based on fundamentals. This totally disregards all the rules of technical trading and you’ll already be in the trade so it will always be to your advantage. In candle formation, the candle can move from 5 to 20 pips contrary direction before it continues its direction within same candle formation.

1hour: This is the father of all directions on the entire charts. It is note worthy here that when the 1hr picks on a direction, it usually rides that direction so trading the 1hr chart makes you more relaxed and you can even leave your trades and go out without being afraid if the price will eventually go against your direction.

The candle formation works like the 30mins, but 1hr candle can move up to 40pips in contrary direction before going back to its direction.  It is note worthy however that when a candle forms and the full candle formation is above 60pips, then add the low and the high, get the midpoint then subtract 10 or 20 pips from this midpoint. That’s where you place your sell limit or buylimit. No matter what, the market usually comes back to this point before it continues with its direction.

Trading 4hr and daily is a lot riskier except you are well funded and using very low leverage because you need to set your stop above 100pips and your buy sell limit could sometimes be above a 100pips. However, if you catch the move when its just starting then your entry could be as low as 20pips from the close of the previous candle.

So how do you benefit from this info.

Take a look at the recent charts on Eur/Usd for the past 2 days

 Two consecutive entries would have fetched 100pips and the 3rd one has already fetched 100pips twice today and still counting.

I don’t have to say more for now.

Have a wonderful pipful week. Make more pips.

How to avoid losing over a $1000 like I did last week

Yes! That title typifies what just happened to me friday on the Eur/Usd pair.  Sounds very funny, right?

The truth of the matter is that no matter how professional you think you are, you are always prone to losses when you break the golden rule of trading the currency market.

Find a trend and follow the trend. Sounds really ridiculous right?

How can one who claims to know a lot about forex trading be losing that type of amount?

Now do you also know that you can also make money trading counter trend?

One basic reason was this, when a market shows a kind of thrust the previous day on a particular currency pair then no matter the retracement for a bigger continuation move, don’t always expect retracement like it should normally move especially when all indication of the value of the fallen pair depicts fears for the teaming number of investors.

You see I was actually expecting a retracement of .5 0r .618 fib levels which should have held but due to the drop of the market it came to the .236  and consequently headed lower breaking below 300pips.

So what am I really getting at here?

Though we may expect what the market may do, we cannot really tell when such move may start and should be prepared in case of the unexpected. Always be over protective of your equity by taking protective stops to avoid losing more than is supposed incase of an unforseen and unexpected event. Do not be caught pants down when trading.

Now even if  I had decided to hedge the trade, probably the loss level would have been lower. This might be another case study for another day. Be prepared.

Thanks for reading

Reasons why you should consider trading with 2-great-indicators

Trading the forex market and the currencies as they fluctuate could cause hazards especially when you are always on the wrong side of the trade.

You may be wondering then, why should I invest my hard earned cash on what many term “lost Investments”?

The beauty of trading comes only when you’ve learned to master your emotions and act based on what works in the long run.

So many always cry follow the trend, but the question is how do you quantify the trend with the present price movements and how do you know when a trend is likely to turn?

I won’t call myself a pro but considering indicators that tells you when a trend is peaked and noting another is about to start and you are able to place your trades at the mouth of the turn wouldn’t you see it as something worth investing for?

Take a look at these trades in various currency pairs and see what I mean:

The AUDUSD, see the resistant levels, i.e the points at which you place your sell limit and buy limits as the case maybe.

The same applies to GbpUsd. See the buy limit point as well as the sell limit point. All these are 4hrs time based and will run your portfolio and indeed make you happy.

The GbpJpy pair has a whole lot of potentials. See the barriers and what it has taken so far.

The EurUsd pair still gives its own indication as the 2-great-indicators are in place in the move. See the latest drive downwards, the price hits the bollinger and then plunges downward. See the reward of obeying these indicators?

Finally see the UsdChf pair. It also has some interesting points of move signalling a potential sell. see the move also. These indicators are capable of power driving your equity beyond your imaginations and the  price is what you can afford to make in just one trading session applying minimal risk ratio reward.

I could actually go on and on about the potentials of using good trading techniques but then whats the point.

No better signal is there than to be able to know when a trade is at its resistant or support point and thats where the real money making abilities come with trading the forex market.

To test drive this simply head on to 2-great-indicators.

See you at the Top!

Smithid

betonmarket a forex tool to generating cash

Many times we have had frustrations of why we entered a position and it suddenly turned on us but have we ever tried to find out the points at which these turns are likely to occur and avoid them. This alone is crucial to trading the forex market and ensures your potential gains are not lost in the retracements we see.

I have a wonderful suggestion. First see this chart. This is a chart of my betonmarket trading platform along side my forex meta trader chart. See the indicators all lined up.

The truth of the matter is this, whether you like it or not the forex market does not care whether you are short or long a currency pair, hence it just trends as it deems based on traders emotion. So the only alternative is to find out at what point will these support and resistant points likely to occur.

We’ll be learning that together on this page.

We have lots of technical trading indicators. I use the bollinger band, moving average, a support/resistant indicator, Fib and pivot point. I’ll also like to add I trade the 5min charts. The combination is awesome.

You see at every move of the tick of the currency, a support or resistance is established,which is either annulled or establish by price and verified by these indicators I mentioned.

Now look at the chart above. The first candle picked from an unbroken MA and sent the bulls to work. You’d also notice that the bulls couldn’t break through my resistant indicator. The result was a down run on the currency.

Now look at how the currency pair kept on sliding until a support was met on the 5min chart. The result bulls came by again but notice they could not break above my fib and MA and then notice what happened in the next chart

It went bearish and could only find a support at the bollinger bands tail. It then shot up again only to be limited on my fib Indicator. The next chart tells a whole lot more. The reason why I’m actually taking my time to give this explanation is this. You can profit unending channeling this info betting for or against the market riding the roller coaster and earn lots of money doing this. Learn the market’s pros and cons and then leverage on its weakness to make your mark on dollar earnings.

Before I windup here, lets have a view of the last chart I’ll show you and how to leverage on the power of these illustration.

Wow! Just look at what happened. Just because the price couldn’t break above the Fib, you can see a break below to the daily pivot point and walah the price does an upside move again. So having and knowing the exact points of these support resistance gives you no small room for earning every dollar you literally deserve.

Okay, so here I drop my pen and hopefully you’ll get to see more sound info on trading the forex market profitably using either the betonmarket system like I said here or trading with a broker.

Well just incase you’d like to have my full explanation plus indicators and parameters for trading this market successfully then head on to 2-great-indicators. If you would also like to join betonmarket and profit with what you’d purchase and start earning your cash on the go then see this link betonmarket.

For more info send email to: forex2pavillion@gmail.com

2 great indicators

Hi dear friend,
You’ve probably been trading the forex market as long
as I can remember. You’ve probably had some very good
trading days raking as much as a 100 pips only to lose
it all within a second trading time.
Well, I guess you aren’t in this alone. We all had to pass
through the same bridge at a point in our lives. The only
difference is that you keep looking for the golden fleece
once this trading system makes loses.
Now I don’t blame you, Nobody likes loses not even me.
Its really a wonder, but does it mean forex cannot be
demystified?
No sir!
You need to master the trade and your trading system.
But is that all? You may ask?
Nope! Some trading systems are easier to comprehend
that others.

Hello, now here is introducing 2 killer indicators. You
should know one of them our dear old bollinger band
and a second a support /resistance indicator.

What actually do I use them for.
Helps in visualising a potential support/resistant point.
And thats where the real money is and that exactly
demystifies the forex cloud.
How do I use them?
Simply place them on your meta trader with the
parameters i’ll give and you’re good to go
How do i obtain and use these indicators.
You will need to read this ebook by clicking on the link
below

https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxmb3JleHBhdmlsbGlvbnxneDo0NmMxMWM5ODc5NDJkZjkz

Want to know all about this 2 great indicators then head on to

http://sites.google.com/site/forexpavillion/2-great-indica. Just copy and paste in your browser and you’ll be glad you did.

When done, you’ll get all the live directions plus an
ebook from a guru who made it big trading the forex as
well as stock market.
Want to see more trades? 2gI in 15mins chart
This will either make you money or I refund your
investment.. Simple.
So you may ask?
How much does this wonderful package go for?
Its not 299, not 199 just $99 and the good part is that
you can make that amount in just one trade.
Once again just $99 unlocks your door to mega cash in
the next 1hour.

You can forward all corresponding questions
to forex2pavillion@gmail.com

Thanks
Eme Ogbonnaya
Smith_idextrous Ltd

What Markets Are Suited For a Particular Temperament

To a large extent, it is worth mentioning that the markets basically plays lip service to no one no matter ones status, temperament blend etc.

So we may now ask, how does my temperament affect the way I trade? The sanguaine is likely to be an unserious person and this hampers his/her trading deccisions.

The choleric is likely to be one who thinks price should just go where it is going and the constant fluctuations of price may tend to rile his anger and ensure unsteady indecisions, hence losses.

The melancholy on his own becomes too analytical for the market that before he comes to a point of decision taking, the market has already played itself out.

The phlegmatic becomes so unperturbed in his trading that he allows his losses to run the mile race.

So how should these blend with their trades?

The base word in trading is discipline to follow. It may be a system, a plan or a pattern but one requires the discipline to follow through. The equity market is filled with pattern of trades that does not require analysis at all or all that. It just requires you acting like a robot. The best part of it is being able to minimize risk and then looking for profits. Basically, there are no markets suited for a particular temperament,, be it the stocks, options, futures, forex, oil and so on. All these market have their own proportionate amount of risk and these risks come without warning so you definitely have to be prepared for it.

A word of caution though, Learn the trade, then trade the risk otherwise the trade learns you and you definitely become the risk.

It does not take a genius to trade these markets successfully but it does take a little discipline to follow patterns guided by your strict money management technique that will overtime make you confident in whatever trade you place and in whatever markets you finally decide to join.

For a more complementary analysis on trades suited for your temperament, you can see http://forexpavillion.googlepages.com http://forexpavillion.googlepages.com.

For free stuffs you can check the freebies section http://forexpavillion.googlepages.com/freebies

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Updates on my sites

Hi there my friends,

This is to inform you guys and gals that I have another site in place in line with helping you achieve the best trading forex

http://forexpavillion.googlepages.com
for further enquiries please send email to forex2pavillion.gmail..com.
Thanks for your usual cooperation.

Once again, the site is
http://forexpavillion.googlepages.com

What you need to know about currency trends

I have always stated that the sole aim of trading is profit, yes with your blend of temperament. That is true to no small measure. You also need to know when not to over trade especially when you are on the loosing streak side. To better explain this, I will illustrate using the Gbp/Usd pair and using todays trade so far.

You will need to pay attention to this very well as it makes the difference in your profit and loss trades.

Now look at the two(2) charts of gbp/usd on 5mins and 1hr time frames and pay attention. Also check your 4 hrs time frame too

Now look at the 1hr chart, even if you don’t know how to trade, the trade setup tells us definitely to sell the gbp/usd(technical), backed up by bennanke testimony(fundamental). Now incase you are at a doubt when to sell, then look at the 5mins.

 

 

When the stochastics hits above the 80 peripheral and the macd is now tending negative, then your sell condition is in place. Place your stoploss on the higher high candle stick and you can use a trailing of say 50pips to pick enough pips and go take care of other things. You could set your profit to 120pips, if you are not greedy or 200pips for the greedy ones like me.

You could also pick extra pips on the 5mins chart by ensuring you place your buy when the first sell signal is seen in a down market. Confirm this with the 1min chart.

I will like to drop my tech stuff for now till later.

All the best in your trades.