| Many think that analyzing forex is hard and | | | | too risky if we try to predict that the price |
| filled with mathematical concepts and many is | | | | will be bullis or bearish at certain price |
| willing to pay millions for market courses so | | | | level. Then we have to wait for the perfect |
| they understand the technical analysis with | | | | moment to enter the market that is when the |
| graphics and so on. But we are confused by | | | | chance has come. The main key is to stay |
| ourselves which frame will we choose, single | | | | close to our trades.Trading must be |
| minute, five minutes or daily.If we think | | | | discipline, disciplne following systems and |
| logically, clear, and ease we will see | | | | patterns that we have already set. Greed can |
| signals that actually exist but we can't see | | | | cause a very fatal condition. Many failures |
| because there's indicators blur it. KISS = | | | | started only by the simplest of mistakes. |
| keep it simple stupid, is basic to be | | | | Miscalculations happened, and if those |
| implemented everywhere.To be successful in | | | | happens then we have to cut-loss or else we |
| trading there's some principals to follow. | | | | will beburden. Then think positive that |
| When you're trading then you'll have to think | | | | there's always better times tomorrow.You can |
| as a trader, buy at low price and sell at | | | | enter without having to know graphics and |
| high price is the number one rule. Whether | | | | charts. The basic in decision making is the |
| you're playing stocks, commodities, or forex | | | | highest and the lowest price range everyday. |
| keep the basic traders' principals.Trading | | | | If the price moves to the highest price that |
| forex lasts for 24 hours. If we're in | | | | day, wait, because the price will try to get |
| Indonesia, the Australian market starts at | | | | through the highest price that day. Just look |
| 04:00 early in the morning, then the Japanese | | | | at the daily range. For Euro/USD, the daily |
| market at 14:30. Starts next is European | | | | range is 98 points when we enter the market, |
| market at 20:30 and the last one to open is | | | | there's a possibility that it might pass 98 |
| the American market which will close at 04:30 | | | | points that day then the price will decline |
| the next morning.Based on experience, time is | | | | again because there will be profit taking |
| very important to the outcome of the trade | | | | action.If you are risk taker, you can make |
| whether we will win or lose. Mostly the price | | | | profit when there's a price correction and |
| is going steadily from the morning till | | | | actually you will get two gains at a time |
| afternoon Indonesia time. The ups and downs | | | | that is when the price goes up for a moment |
| of the price start when the European market | | | | for then goes for reversal. This can be done |
| opens. Then when the American market sessions | | | | but beginners are adviced not to do this and |
| are open, we have a very good chance to gain | | | | everyone who hasn't a good experience about |
| big profits in short time only if we can | | | | the market. You could try at the virtual |
| position ourselves in a good position.The way | | | | forex first to understand the situation.Don't |
| to determine the buy and sell position. | | | | forget to pay attention to the currency that |
| Looking at the daily phenomena it is better | | | | is opposite to the one you are trading. |
| for us to trade at American time. The first | | | | Example in this case you hold Euro/USD, you |
| step is to count the price range (high and | | | | have to pay attention to opposite currency |
| low) from currency pairs that day. There are | | | | such as USD/JPY. Because at the same time USD |
| four commons currency traded:* EUR/USD Daily | | | | JPY will try to touch the lowest point before |
| range average : 110-120 points* GBP/USD Daily | | | | at the end go for reversal.With the usage of |
| range average : 180-200 points* USD/CHF Daily | | | | graphics, we can get very good informations. |
| range average : 120-130 points* USD/JPY Daily | | | | It is also better if we use some softwares |
| range average : 80-90 pointsThe numbers above | | | | for trading we could only watch the time |
| is not fixed but at least when we enter the | | | | frame for 5-15 minutes. The indicator that is |
| market we know that we're in the right | | | | used is Bollinger band and if you're not |
| position. Eventhough this won't guarantee a | | | | pretty sure you can add RSI indicator with 6 |
| 100% win.If we look at closely there's a | | | | as it setting period. But back to basic, the |
| certain pattern from those four pairs of | | | | important thing is the daily range of highs |
| currency that is Euro/USD and GBP/USD walks | | | | and lows. If there is break high and break |
| the line together and 180 degree from USD/JPY | | | | low, you then go watch the candlestick and |
| and USD/CHF. If Euro/USD and GBP/USD is going | | | | focus on the five-minute frame.Many are |
| high than the USD/JPY and USD/CHF is going | | | | trapped focusing on the graphics like the Ma |
| the other way, vice versa.But things don't | | | | lines has crossed or it hasn't and many more. |
| always go this way. There's a moment where a | | | | Actually at this time, price range hasn't |
| currency is on his own and the other at the | | | | become mature yet, and of course makes things |
| usual pattern. If this happens than the | | | | risky. Once again it is necessary to look at |
| curruency that is has a stable movement is on | | | | the mature price range.The usage of pivot, |
| its lowest or at its top and the currency has | | | | support, and resistant point can also sharpen |
| a mature daily range (close to the currency's | | | | your decision. But once again the price range |
| average daily range).There's no certain rule | | | | is all matter for decision making and you |
| that says a pair of currency is easier to | | | | shouldn't be doubtful because of any other |
| trade than the other, every currency have | | | | indicators. For example Euro/USD has gone |
| their own chances, and it is better for us to | | | | through break high. Look at the five-minute |
| adjust to our margin that we have. The Euro | | | | chart than the candlestick will touch the |
| USD and USD/JPY movement is far more stable | | | | upper bollinger band or even more. You can |
| at range of 100 points and this make the | | | | wait a bit more so it can get to the very |
| currency safer to be traded with the smallest | | | | top, then when you feel there's a reversal |
| of our margin compare to GBP/USD and USD/CHF | | | | you can do your entry.Price movement is very |
| which range in the 200 points.From the | | | | complex that affect four world main currency |
| phenomena above a conclusion can be taken, | | | | one another. This can't be explained in |
| that money is traded by top-class speculators | | | | detail. Overbought and oversold aren't |
| like George Soros only on four world main | | | | basically call upon the five-minute or the |
| currency. This is to balance the daily volume | | | | fifteen-minute frame. This signal will come |
| and price so at the closing stage the | | | | to you as you practice, use your logic and |
| currency will be at their average range of | | | | amazing things will happen.Trading is not a |
| high and low.The price movement can actually | | | | exact science so don't waste your money for |
| be determined by the movement of each | | | | courses that will guarantee your success.The |
| currency pairs. Analysis approach | | | | main key is practice. There are many source |
| fundamentally with watching close the news is | | | | of informations such as newspapers, internet, |
| reflected from the price movement. We can | | | | and mailing lists.Tricks above doesn't |
| read schedule of economic news just to watch | | | | promise you a profit but at least if you |
| it for hours and only waiting for certain | | | | implement the logic you will the be on the |
| news. Close to those times there are | | | | right track. You will have the basic of |
| possibilities of extreme price | | | | decision-making.The recipee is, at the |
| changes.Knowing when ther's going to be an | | | | opening of the market, choose currency that |
| extreme price movement we can at least save | | | | is there.Nofie Iman is a full-time investor. |
| times and we don't need a whole day to watch | | | | He has been researching investment strategies |
| the price movements in the monitors, except | | | | since 1998 and make his own living from stock |
| it is a hobby and doesn't bother you that | | | | investment and forex trading. For more |
| much.In trading it is better if we adjust to | | | | information, please take a look at here. |
| the condition of the field that day. It is | | | | |