Want FULL ACCESS To ROSS’ DAILY TRADE ROOM? Simply Click The Get Started Button Right Now! Transcript of Video I’m going to get started today with an overview of each of the seven US currency pairs. We do have a holiday week this week. We will not be having an update video or a Trade…
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Throughout the Forex worldwide, brokers offer many different leverage setups and account types and there are many factors to consider when opening a trading account. Factors such as the style of trading that you will be using, your appetite for risk and the amount of investment capital that you have available, are all things to consider when opening a Forex trading account. So I want to take a moment to give you some food for thought when it comes to your trading account.
First, proper account capitalization can be defined as having a sufficiently funded trading account to place and hold trades and manage risk. For example, if you only have a small amount of risk capital available you should consider opening an account that gives you better flexibility with your lot allocation for each trade, like a mini or micro account.
Also, by having a properly funded trading account it increases your chances of recovery after a period of drawdown. With an insufficiently funded account, it will become much more difficult to recover losses when they happen. Of course, it is unrealistic to believe that you will never have a loss; the key is how you manage those losses.
In addition to proper account capitalization you should
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Potential Reversal vs. Actual Reversal
There is a difference! Potential reversal only tells us that there are indications that a trend change has a higher likelihood of happening than it did before. Actual reversal tells us that there are indications that the trend has already changed and so our directional focus should change with it.
So, what are the differences?
There are numerous indicators to inform us of potential reversal. We can use momentum indicators, volume indicators, charting patterns or candlestick formations, actually too many to discuss in this post, so I want to focus in on the chart pattern that is forming on the weekly AUDUSD.
The AUD has been in an uptrend for, well, a few years. The current leg began in May of 2010. That being knows there is an obvious tendency to focus on the upside and
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The NZDUSD has been in a long term uptrend quite frankly since bottoming out in early 2009 recently capping at multi-year highs at .8300. There has been a turn down from those highs and is now showing signs of potential reversal on multiple compressions.
Begining on the Daily chart below there has been an open/close below the daily trend line that originates from March of this year. This O/C candle also forms below the previous resistance back in April and before the highest high. Looking forward, a few weeks, if the pattern persists we could set up a Head and Shoulders on the Daily….only potential at this time.
On the 4hr chart we can see an intraday climb back under the
Want FULL ACCESS To ROSS’ DAILY TRADE ROOM? Simply Click The Get Started Button Right Now! Trade of the day on the EURUSD sold 1.4258 at 9:11 am ET. Trade closed with 50 pips but much more potential for traders holding for more. During the trade room today we discussed the break of the trend…
Want FULL ACCESS To ROSS’ DAILY TRADE ROOM? Simply Click The Get Started Button Right Now! A quick follow up to the trade posted earlier. Buys were taken into the 1.6250’s and intraday profit closed for 50+ pips on test of 1.6300 and 30 minute trend line. If you continue to hold it will need…
Want FULL ACCESS To ROSS’ DAILY TRADE ROOM? Simply Click The Get Started Button Right Now! Trade posted at 8:30am ET buy GBPUSD at 1.6256. This pair has been falling for a few days now since testing the 1.6700 highs. The daily trend line has been well established for the year and it is now…
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There is a difference between potential trend change and actual trend change. Potential trend change tells you that there is a strong likelihood that the trend could change, actual trend change tells you that the trend has already changed and would be the focus of your attention. In my last two commentaries I spoke about identifying the trend and identifying actual trend change. So now let’s focus on potential trend change.
So, how do you tell them apart? That is what we use technical analysis for!
There are many indicators that point to potential trend change, or instance, candlestick formations. Candlestick formations are a single candle identifier of potential trend change. Formations such as the Hanging Man, Shooting Star or Engulfing candle could point to a possible shift from
Hello everyone, I was looking at Forex broker reviews the other day and I noticed that hardly any of the brokers that had been around for any length of time had an overall positive ranking. And I am fed up with it!!! My question for you is what are you looking for in a Forex…
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A few weeks ago I wrote about methods of identifying the trend. The trend, defined as the overall general direction a currency pairs price is moving. We have all heard the saying “the trend is your friend”, however, trends do and will change…..eventually. But how can you identify those moments at or near the beginning of the change without waiting weeks or even months only to look back and say “I wish I knew the trend was changing back then”.
There are a lot of ways of identifying momentum shift or overbought and oversold conditions, but I want to focus in on how to actually visually identify that change is taking place.
First, there are the candlestick formations. These are a single identifier that a potential shift in buyers and sellers are taking place. These can be a great beginning clue to trend change. For example a Shooting Star tells us that the buyers are losing ground and the sellers are gaining momentum. Or it could be a hammer that tells us that the sellers may be losing their hold on a currency pair. These in my opinion are just the beginning.
Then you have chart patterns. These are typically made up of multiple candlesticks forming an identifying pattern of reversal. Patterns such as the Double Top or the Head and Shoulders inform us of an impending fall at the top of an uptrend. These again are a good beginning clue to trend change at or before the trend has actually changed.
Both of these identifiers are a clue that change is probable but has not yet occurred.
So, how do you know then that trend change is actually happening? Go back to the basics! An uptrend can be identified as having higher highs and higher lows and a downtrend has lower highs and lower lows. It’s that simple!
I want to provide a few examples of this simple yet effective method of identifying trend change and potential entry points at or near the beginning of the change.
Let’s start with the GBPUSD on April 11th (see chart below). For some
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Convergence of Indicators
Often times, when you can identify a level, where multiple indicators point to a certain outcome there can be a higher probability of that outcome, which is the case of the GBPUSD today.
This morning we can see at 1.6235/40 that there are 4 different indicators pointing to a price barrier, or what I like to refer to as a wall. First the trend line from the