Forex Swing Trading

Forex Swing trading is like a middle point between trading long term and opening and closing positions in the same day (intra day trading).

Typical swing trades last anywhere from a few days to a few weeks.

Swing Trading Strategies

Forex Traders often use technical analysis to select entries and exits of swing trades. There are many swing trading strategies that traders use. Often they will involve the use of moving averages, RSI, momentum indicators etc.

One example of a commonly used swing trading strategy is the plot a 5 EMA on a weekly or monthly chart, then plot a 8 EMA. When the 5 EMA crosses the 8 EMA to the upside, go long. Also, when the 5 EMA crosses the 8 EMA to the downside go short. Fibonacci retracement points are often used for stop losses and take profit points.

This is a very simple strategy. It is certainly the case that the simple ones are often the most effective.

Metatrader 4 is an excellent platform for for this strategy. The charting is highly effective. It can be downloaded from metatrader4.com

Forex Trading Times

The Forex Market is a truly global 24 hour marketplace. There are several financial centres that participate in the forex market. The main ones are New Zealand, Australia, Japan, London and Wall Street.

All these financial centers operate during normal trading hours in their country. For example Tokyo begins trading at 7pm and closes at 3am (EST Timezone). London operates 3am-11am EST. As soon as Tokyo closes, London opens!

When trading currencies it is very import to know the individual trading sessions. The Forex trading times for the main financial centers are as follows:

Forex Trading Hours

Australia: 5pm - 1 am
Tokyo: 7 pm - 3 am
Singapore/Hong Kong: 9 pm - 5 am
Frankfurt: 2 am - 10 am
London: 3 am - 11 am

All the above times are using the EST timezone (Eastern Standard Time)

Typically the Tokyo trading session is one of the quietest. If you check historical charts for this trading session, you will see that on many occasions there is very little movement. Some traders exercise their scalping strategies during this period.

When exercising your forex trading strategy, it can be very important to fully understand the different trading sessions and the trading times of these sessions. The amount of volume and volatility can vary greatly between the different sessions.

A good example of this would be, a typical Tokyo session is generally likely to be much quieter than a US session on non-farm payroll day.

However, if you have a very long term forex strategy, where you have individual positions open for many weeks or months, the daily trading hours will not be anywhere near as significant to your trading.

A good example of this would be, a typical Tokyo session is generally likely to be much quieter than a US session on non-farm payroll day.

In conclusion, the forex trading times may or not be important to your trading strategy. Either way it is important to learn the trading hours of each session so you have a better idea of when the market will move.

The website timeanddate.com may be useful if you are wish to know the timezones in different countries.

Introduction to Forex

This introduction is for absolute beginners in Forex trading. If you don’t need to refresh your mind on basics go ahead and skip to the next section:Mechanics of Forex Trading.

What Is Forex?
What Drives The Forex Market?
Exchange Rates.
Who Determines Currency Exchange Rates

1. What is Forex ?

No prizes for answering the above. The word Forex consists of two words FOReign and EXchange.

Definition: Forex is a cash market where currencies are traded against each other

The word can be shortened to FX hence the full name for this site becomes Foreign Exchange Academy.

The Forex market is not exactly a single physical location. It can be in a bank, forex bureau, travel agent or wherever trading of one currency for another occurs.
It is an over the counter market. Major Buyers and sellers are banks, governments, corporation , investors, private individuals .These parties exchange currencies at the current going rate known as the spot price.
2. What Drives the Forex Market?

Different countries use different currencies, however cross-border trade has to take place.
The Forex market is therefore a vehicle driven by the need to move monetary payments across borders and transfer funds and value from one currency to another. If the whole world used one currency there would be no need for the forex market.

For example if a US restaurant needs to buy Italian cheese it needs Euros to pay the Italian cheese maker so it must be able to exchange US dollars for Euros.
Likewise if the US restaurant makes the payment in US Dollars the Italian cheese maker must be able to change the Dollars into Euros. It’s as simple as that.

3.Exchange Rates?

What then is the rate used to exchange one currency for another?
How many Euros are exchanged for one US Dollar?
This rate is where the ‘Forex game’ begins. What does this rate depend on?

Several conditions affect the rate of one currency against the other. The most significant factors that move currency rates are interest rates, global trade, inflation, and political stability.

Many other factors determine currency rates and these will be examined next.

Just What are the benefits of forex trading?

The are many benefits of forex trading when compared to other financial markets. One of the major advantages over all other markets is the low margin requirements.

Some modern retail brokers offer traders leverage of a whopping 500:1. This is a margin requirement of just 0.2%. This may sound very enticing when we think that we can open a $1,000,000 position for just $2,000. However, it is important to remember that leverage can work with you as well as against you. Leverage can amplify your trading gains as well as your losses.

Another huge benefit of the forex market is the fact that it is open 24 hours a day. Just as one financial center closes, another opens. More information about the trading times of different financial centers can be found on our trading hours page.

The Forex market is the most liquid of all the financial markets. The main of this is the fact it can result in some very low spreads (the difference between the buy and sell price), especially on the major currency pairs. For example I have seen spreads of lower than 1 pip on EUR/USD.

Due to the high liquidity of the forex marketplace, it makes it possible to trade a very wide range of forex trading strategies. Some of these include scalping strategies, news spike strategies, swing trading strategies, pseodo hedge type strategies, carry trade strategies and many more.

Another benefit of the currency market is the fact that as it trades currencies, and currencies all have a base interest rate, it opens the opportunity to buy a currency with a high interest rate, whilst selling a currency with a low interest rate. This enables the trader to profit from the difference in the interest rates. This is known as the carry trade.

In conclusion, the forex market has many advantages over the other financial markets and there is great potential to earn excellent returns on your investment. However, it is very important to remember that whilst leverage can improve your trading gains, it can also increase your trading losses.

Learn forex trading

FXacademy: - your guide to understanding forex.

Teach yourself forex trading now! It will be the most important step towards your financial freedom. One of the secrets to successful trading is ” millionaire traders are ordinary people like you”.
The only difference is they have taken time to learn and understand how forex works. Placing profitable trades and making money with forex is easy once you learn and develop the required skills.

FXacademy has forex tutorials aimed at explaining the forex market concepts to beginners.
It is a simple guide meant to explain concepts of forex using easy to understand tutorials. Tutorials range from basic to advanced and caters for beginners and experienced traders.
Why should I Learn Forex ?
Forex is the largest market on planet earth. Gross daily turnover is over US$2.5 trillion. That’s many times bigger than all equity markets. It is no secret that you can make huge profits in currency markets.

Many individuals are successfully investing in day trading and generate a turnover of US$50 Billion daily. Internet technology makes online trading the best home business opportunity available.
Anyone can teach themselves and start trading forex online immediately from their home computer.

How You Make Money Trading Forex Online?

The goal of forex market trading is to exchange one currency for another in the expectation that the currency you bought will increase in value compared to the one you sold.
Most investors are day traders, they enter and close their positions in a single day (EST).
Learn more…

What are the requirements for trading?

Below is a list of things needed to start currency trading.
1. Learn how the market works.
Profitable trading requires good knowledge and skills. One needs to understand how to read quotes, place trades, stop losses… Many online forex resources and trading guides are available to individuals who wish to learn how forex works.

2. A forex trading strategy.
Many online brokers allow you to open practice accounts before trading with real money. This allows you to develop and test forex strategies,You can then pick the best one , that allows you to place more profitable trades. You should develop a trading strategy that works otherwise you will not make profit in forex trading.

3. An online broker.
You need to open a trading account with a online broker. For $25 000 + you can open a managed account. Mini forex accounts require a minimum of $25 depending on your broker.
A managed forex account allows you to relax while experienced investors trade on your behalf.
With ‘minis’ you do trading, money management..everything by yourself.

The broker will provide a trading platform which is an application for conducting trades. It is important to learn how to correctly use the platform provided by your chosen online broker.There is no room for mistakes in forex trading.

FXAcademy has two tutorials . Going through both of them will greatly assist any individual wishing to teach themself forex concepts.

Fast-track introduction..
This is an easy guide on forex market basics for newbies. The fast track intro is for forex beginners. Experienced traders should skip this simple tutorial .

Advanced Forex.
This is an introduction to advanced forex concepts. A greater part of this tutorial goes into introducing technical and fundamental analysis.Teach yourself advanced concepts such as money management, risk management ….
- Understanding fundamental analysis:
- Learn technical analysis.
More…

Our goals:

To provide education for beginners hence give everyone an opportunity to learn profitable forex trading.

To promote the best forex trading platform.

To endorse the best tools for learning and trading - software, forex education and training ,online brokers, courses, traders’ groups and books.

‘Lets Play The forex game.’

What is a Forex Pivot point?

This article looks at exactly what a forex pivot point is and how to calculate one.

Forex pivot points can be calculated using this simple formula:

(Previous high + previous low + previous close) / 3

So for example if on the daily forex chart for GBP/USD the follow was true:

High 2
Low 1.98
close 1.99

The pivot point would be (2+1.98+1.99)/3

In the instance the pivot point would be 1.98.

Pivot points can be worked out from any time period. You just need to use the previous candle for the calculation.

Pivot points can be very important in forex trading because some traders place there stop losses and take profit points at them. As a result they can act as support and resistance and the market will often “bounce” at them.

Pivotpointcalculator.com has a pivot point calculator that allows you to put in the high, low and close and it will calculate the pivot point for you.

Forex vs. Stocks

Trade Around The Clock
The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.


Pay No Commissions*
In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.

* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here


No Uptick Rule
Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.

Forex Market Information Easily Accessible
Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.

We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.

To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739.

High Risk Investment
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Desktop Currency Converter v4.0

A currency converter

on your desktop

Desktop Currency Converter is a free currency calculator always accessible and easy to use. It converts 55 world currencies and you can use it as a calculator.
Desktop Currency Converter is much more comfortable to use than any online currency calculator. Try it to see the difference.

Functionalities

Converts 55 world currencies

Automatically download exchange rates

Works as a calculator: Type a formula and you will see the result in two currencies.

Works in offline mode

Easy cut, copy and paste

Two editable fields: you can adjust the target amount and view the result

Decimal: 0 digit, 2 digits or no limit

Easy to install and uninstall

More info about Desktop Currency Converter.

eToro - Online Forex Trading Platform

What is Forex? Forex is an abbreviation of Foreign Exchange (also referred to as FX) and it is the largest financial market in the world.

The Forex market is the place where currencies are traded (currencies are money that is used as an exchange medium). In other words, it is the place where currencies are being sold and bought. In the Forex market all currencies are traded in real time.

Trading with currencies always means that there are two simultaneous transactions taking place. If a currency is being bought, it is also being sold. To better understand this notion, think of currencies as both the goods you are buying AND the method with which you're paying for the goods.

Since the Forex market is the place where currencies are traded in real time, people may trade one currency for another and make a profit off of this transaction. Profits are made when one is able to determine which currency's value will increase by the end of a pre-determined time period (such time periods may be short or long). The Forex market is open 24 hours a day, five days a week and it is based in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.

While Forex trading may sound daunting, it really isn't. It can be easily comprehended and understood without prior experience in finance or economy. It is challenging and exciting, thought provoking and manageable, stimulating and filled with opportunities.

Some Forex Basics:

• The first currency listed in a currency pair is called the "base currency".
• The "base currency" is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the "counter currency".
• Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
• When a quote increases, it means that the "base currency" has risen in value and the "counter currency" has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)

Now that you know a thing or two about the Foreign Exchange market, we invite you to explore eToro-the Revolutionary Forex Trading Platform. You too can make your mark in the Foreign Exchange market. Use eToro as your gateway to the ever-growing world of Forex trading.

Forex Tester - Professional Forex Training Software for Traders

Forex Tester is a professional software simulator of the Foreign Exchange Market. It allows you to gain and improve trading skills without risking your money. You do not need to train in real time, waiting for days and weeks to test your trading ideas and strategies, Forex Tester will pack this time in hours and minutes.

This is an excellent forex training tool that will help you to:

• Study trading on the FOREX market in a fast and convenient way.
• Develop and test your own trading strategies without being a programmer.
• Test your trading strategies on years of historical data.
• Save your money and time.

The program has extended drawing tools that allow you to test trading strategies based on technical analysis. It provides some of the most popular technical studies such as: Fibonacci Retracement, Fibonacci Fan, Fibonacci Arcs, Andrews' Pitchfork and others.

Also, we added some of the most popular indicators and oscillators to Forex Tester and continue to increase their number.

For the advanced users and programmers we designed open interfaces with detalied documentation to help you create your own indicators and strategies. Thus, if you have your own ideas, you can implement them using Forex Tester API and significantly expand the program functionality

MetaTrader 5 Beta Testing

MetaTrader 5 is at the stage of public beta testing till the 1st of February, 2010.

Today the public testing of the MetaTrader 5 client terminal starts. All of you now can participate in it. If you want to become the testing participant, just download the terminal and test it. You can send your bug reports and suggestions by email or publish them in this topic.

Now Metaquotes have launched the Beta testing of their latest platform, Metatrader 5 (MT5). This has been some 4 years in the development and promises to improve many of the inadequacies experienced in MT4.

MT5 has been totally written from scratch and offers many new features, including:

1) Access to more asset classes - including options, futures and stocks (exchange based rather than via a CFD as with MT4).
2) Access to market depth, or order ladders/trees.
3) New order types.
4) Easier programming language for EAs. Some suspect that MT5 also makes it easier for a broker to view the EAs parameters via a "back window". If so, MT5 improves dramatically the ability for a broker to run a hedging strategy against the clients EA trades. This could be seen as an advantage for both sides, as "legitimate" EAs will be more readily acceptable by brokers.

Even though beta testing has only just begun on MT5, there are already many comments and posts already written about the functionality, advantages and disadvantages of the platform which you can read about on various forums.

If you want to participate in this beta testing you can download the platform via this link.
Please note at the moment this is only available for Forex - they will be rolling out other asset classes over the coming weeks.

We will post our comments and feedback on MT5 in our next update. Let us know what you think! If you have any questions regarding MT4, MT5 and its application with the brokers on our site, drop us a line and we will be happy to help.

Forex MegaDroid Review

If experience is indeed the best teacher, then the Forex MegaDroid, the brainchild of around 38 combined years of it, would be at the top of its game. A Forex autopilot software package created by two Forex veterans (more about them later), Forex MegaDroid not only promises profits, it also promises the highest of them: a revolutionary formula that guarantees 95.82% accuracy, regardless of market condition, is at the program’s core.

Forex MegaDroid is immensely adaptable to differing market conditions: trending, non-trending, volatile or non-volatile, the software is able to anticipate the dynamic nature of the Forex market, ensuring successful trades that will consistently quadruple the dollars you invest, no matter what happens to the market.

Adaptability is the name of the game, as any Forex veteran will tell you. This is why this software is also equipped with the RCTPA (Reverse Correlated Time And Price Analysis) system, an advanced artificial intelligence program that allows for its immense adaptability.

Forex MegaDroid is very easy to use, as its creators have taken steps to ensure that even new users of such Forex autopilots will not be confused with how the system works. A simple download and install is all it takes to start earning.

=>Go to the Forex MegaDroid Website

Company Info…

Albert Perrie and John Grace, who have been trading for 20 and 18 years respectively, are the creators of the Forex MegaDroid. It is this immense amount of professional, actual work experience which has allowed them to create this immensely accurate and adaptable Forex robot.

Official Site:

www.forex-megadroid.com

Overall Rating…

Because of its staying power in Forex profits and the expertise of its creators, Forex MegaDroid has proven to be a customer favorite. This has given it consistent 4 star rating all over the World Wide Web.

To see if all the customer satisfaction is really true, go to the Forex MegaDroid website to download the software package.

Actual Customer Feedback…

“I have been trading Forex MegaDroid for a couple weeks and it has already tripled two of my accounts!! I cannot tell you how excited I am.” Actual user review from fxproductreviews.net

“Setup and installation were a breeze and the robot began making money immediately for me. I cannot recommend it highly enough!” Actual user review from squidoo.com

“Unlike most robots that use a wide stoploss, it follows strictly on a average 3:1 risk/reward ratio. With a high winning rate, this robot is a wealth multiplier.” Portion of a review from forexreviewlink.com

“Forex MegaDroid is different. It is programmed with Artificial Intelligence capabilities. These allow the program to actively learn from the behavior of the market and to adapt to it. In this way, you are much less exposed to changes in market conditions.” Portion of a review from ezinearticles.com

Our Research On Forex MegaDroid Suggests…

Research has shown that the unique AI system built into this software is indeed impressive, and does allow for a very high degree of adaptability. Additionally, Forex MegaDroid’s developers are highly dedicated to the project and consistently looking for ways to improve the system. Overall, Forex MegaDroid is one package that competitors will really have to contend with.

Verdict…

The above factors, plus the sheer amount of professional experience poured into the creation of this package, make it deserve the 4 star rating we give it.

=>Go to the Forex MegaDroid Website

Summary…

*Easy download, easy install
*Plug-and-play system – no experience required
*Unique RCTPA AI system
*One-time payment
*Money back guarantee

Price:

$97.00

Introduction To Forex Trading

Making money in Forex is very simple. Though exchanging once currency for another one of equal, lessor or greater value and buying and selling these currencies at different time as price fluctuates over time you can profit from these moves. Trillions of dollars are exchanged day after day generating a large amount of liquidity in the forex market. Think of the forex market like a bigger better stock market and it will be easy for you to get started trading forex.

One of the many things that set the forex market apart from the stock market is the exiting feature of being the largest and therefor the most efficient market in the world. Also open 24 hours a day the forex market allows traders to trade when it fits their schedules and not the markets. Traders can choose from three of the major trading sessions which include Asia, London and New York opening and closings.

For example, you can trade the London market open through a breakout style trade of the mornings range or place a trade once a day on the Asian market open. Traders also enjoy trading New York hours with the open and close of the US equity markets and morning news releases which can bring volatility to the market.

Many investors have made money through flipping houses during the last real estate bubble and forex traders are able to take advantage of a similar opportunity through buying or selling devalued or over appreciated currencies. Through buying a large amount of a countries currency and selling it at a better time you can make a lot of money in forex.

To make money with Forex you need the tools to do your trading in an appropriate manner. So what are you waiting for? Begin learning today to earn money with Forex and generate big income. Forex is very easy with the right guidance and information and the opportunities are limitless. Books, courses, ebooks and training mentor ships are all good tools which can help a trader learning curve tremendously. Like anything else from golf lessons or cooking shows it is important to learn from those who are better than you in order to form yourself the best possible way for future success.

Some experience traders also prefer having an automatic trading system trade for them using a forex robot or otherwise known as an expert advisor. Also many traders prefer having a manual trading system that has a defined set of rules to follow. Forex currency trading is an exciting way to build wealth in a systematic manner opening up opportunities for traders of all back grounds and financial status. Like most other competitive environments the more prepared you are the better your possible success. Do you homework and learn from the best traders you can find who are willing to work with you and share their knowledge.

Learn more about Forex currency trading. Stop by Alyssa Elle’s site where you can find out all about Currency System for Forex Trading and what it can do for you.

An Advanced Forex Trading Platform

CMS Forex unveils the next edition of its advanced Forex trading platform, VT Trader™ 2.0. Our comprehensive trading software sports a new efficient and intuitive interface with a variety of ways to personally organize your workspace. VT Trader™ 2.0 also offers an expanded arsenal of VT Mobile Trader fundamental and technical resources. Enhance your Forex trading experience with easy access to powerful tools, highly developed charting technology, Dow Jones news, and an advanced level of customization, sophistication and convenience that sets VT Trader™ apart from other Forex trading platforms

Trade Forex Signals based on Technical Analysis.Advice

You have traded Forex exchange market for quite a while now. You have read hundreds of Forex guides and ebooks or Forex trading advice widely spread over internet. Those gave you basic knowledge about forex. Now you know the terminology, rules, currency movement trends and all factors influencing whole Forex market.
There is a lot to take at once.But let me tell you something here,Forex is something people learn all their lives and still there is something left.
You have probably wondered many times before which tactic to take.
Will I rely on technical analysis?Should I look at the bigger picture and consider all economic conditions?Will I trade news for quick profits or maybe invest long term.I believe you went through many demo trading accounts to try them out.
If you picked up your strategy and you decided to go and trade technical chart analysis here is so much else left to consider. At this stage your knowledge should extend to whole terminology including:
support, resistance, chart names. You should know about moving averages, Bollinger band, Fibonacci or Elliot wave theory, Pivot points etc. Now all you have to do is apply all the above rules on your chart and here we go happy pips. Well it is not as easy as it seems to be!
There is one piece of advice that we would like to give you.
Not all the rules apply to all the currencies. That is right. If you have had enough experience and spent thousands of hours watching charts moving you have probably noticed that almost every single combination of currencies have their own flings and this makes them difficult to predict. Not all pairs would create head and shoulders, double top or bottom to signal the potential major movement. Some of them will but that may mean nothing.
Another combination would not necessarily bounce back from 55 or 200 hours moving average or follow pivot points. Other will not create hammers to indicate diversion. All above rules would apply to successful technical analysis trading.
We strongly advise you to do your homework and research. Before you select certain rules for certain pairs make sure that there is a pattern to follow. Adjust moving averages, Play with a few values and backtrack to see where there is a rule that you could use in the future forex trade.
There are many examples to learn from. If you study eurjpy and euraud pairs you will see how different they are. Euraud seems to have a strong trend on daily charts where eurjpy has not got one.Take also eurusd and we will see that there was strong head and shoulder with the bottom formed on 22 Jan 2008 and instead moving significantly up it did not. Compare the daily chart of eurchf which on the other hand follows nicely its double top and bottom pattern.
We encourage all beginner traders to consider those factors before trading real money.Select your indicators to your pairs in the way they are most suitable for each one of them.Make sure it is backtracked and there is evidence for such a selection. Remember: plan your trade and trade your plan.