Forex indicators exist all over the place. Download any forex broker and you will see indicators out there with the odd name out. The secret in profitable trading is not finding that all the indicators that you fancy are in fact profitable. Instead the secret is to find a combination of indicators that become a forex winning system.
As an example we are going to use moving averages as a blend of 3 different indicators. Once you have this blend you have a hopping medium that fluctuates slowly but surely in its vow. A forex beginner can pick it up in an afternoon and by the time he load it the next morning it is ready to trade.
How does the blend work? Let’s do the technical bit first. The moving averages are terrific tools for spotting the trend. Here we are going to use a simple indicator – the % Bullish.
What is the % Bullish?
Here it is – it is the central market share price divided by the highest peak in the market share price, times a hundred.
It is calculated by dividing the highest peak by the lowest market share price for the last two hundred days.
Now here is a hint – because the economy is so fluctuating and new financial indicators are released daily the % Bullish constantly changes.
It is so volatile that just 2 or 3 days difference can make huge differences in the buy and sell of currencies.
Use this example!
daily chart
Enter 2 trades – a buy of the British Pound and a sell of the US Dollar
After this simply wait for the direction of the markets to settle. Calculate the pairs sell and buy favourably and watch for the price of the trade to reach the target profit.
You are not trading a currency formula – you are simply using a simple 6 or 12 month trend in a currency to show how the % Bullish and momentum are working.
You will have peaks and troughs – but the % Bullish will show you the direction in which the market is trending.
Use the example above and things to look out for.
- If the trade separates from the main trend and the % Bullish is climbing then you have a potential swing trade.
- If the % Bullish is dwindling then this is indicating the market is taking a breather.
- If the % Bullish is apart and the price is still trending then this is telling you a trend is slowing.
- Check and see if the price is taking a bigger swing higher or lower away from the main trend. Also look for a trend change, as soon as the main trend is in motion. For example, if the main trend is up and you get a sell signal at a higher extreme then prices will calm down and take a rest. This is called a trend change.
Once you have traded with the trend and the momentum then it is time to look at how you are getting the odds in your favour.
Risk and money management.
Learn to place stops and how to manage so that you don’t get taken out by market noise and volatility.
inguish high odds trades. In forex trading your winners can be in the hundreds whereas your losers can be the lower hundreds. Make sure you cut your losing trades quickly and keep them small. Forget your ego. If you are losing don’t let it worry you unless you have a go or see the market as a zero sum game.
If you want to win you have to forget your ego and respect the market.
Confidence and Discipline
If you want to enjoy your profits you need to have rock solid confidence in what you are doing, this means, having set the mindset to take a lot of losses cheerfully and keep them small.
If you don’t have discipline and the confidence to execute your trading strategy, you won’t stick with your plan.
So there you have it Forex trading for losers and a winner. If you learn the above Forex trading for beginners can be learned by anyone and applied by anyone can enjoy Forex trading success.
