As most any truly successful trader will tell you, the stock market has
averaged somewhere in the neighborhood of 10% a year over the last 100
years. What this basically means is that if you would have invested in
the 30 stocks that make up the Dow Jones Industrial Average, the index
which is designed to represent the overall market, you would have earned
about 10% on your money on average over the last 100 years. With this
in mind, what most any truly successful trader will also tell you, is
that if you can consistently double that return, on average, over the
long term, then you will be considered among the best traders out there.
It is this concept that is one of the most important to understand in
trading, as it underscores the importance of protecting one's trading
capital, as it shows the difficulty of coming back from a loss in
relation to the ease of taking a loss. It is also most traders lack of
understanding of this concept that causes them to take risks which are
way to large and is a major contributor to the high failure rate among
These are the most liquid currencies in the world. The US dollar is involed in 90% of Forex Transactions. Currencies fluctuate in fractions of a dollar called a Pip (Price Interest Point) A Pip is the last decimal of a quote
Now that we understand that determining how much to risk per trade is
the first step in any successful money management strategy, we can move
on to other methods of setting your initial stop which fit within the
limit set by the amount a trader is willing to risk on a per trade
So with this in mind, the most basic way that traders use the ATR in
setting their stops is to place their stop a set number of ATR's away
from their entry price so they have less of a chance of being knocked
out of the market by "market noise".
One of the most popular methods which we have touched on in previous
lessons where many traders use support and resistance in their trading
is when trading ranges in the market. Many traders favor ranges, as they
provide traders with the ability to enter trades with tight stop losses
and much larger potential returns. The reasoning here is that traders
can enter a trade just below resistance or just above support in the
range, place their stop just outside that level and then their profit
target at the other end of the range. Generally the distance between the
stop level is much shorter than the distance between the other end of
the range, providing traders with a great opportunity for a relatively
low risk and potentially high reward trade.
As you can see from the below chart the head and shoulders pattern is a
perfect example of this. By entering the trade on a break of the
neckline and placing the stop just above the right shoulder of the
pattern traders ensure that there are at minimum two resistance levels
in between their entry price and their stop level if not more.
Summary: In this webinar presented by Nicole Elliott, a veteran trader and highly respected technical analyst, the attendees will be provided a step-by-step guide on how to construct and use Ichimoku Cloud charts. This will be followed by an analysis of live current markets conditions in order to interpret the cloud charts in a real environment. Nicole is the author of best-seller Ichimoku Charts and has been a regular media commentator on CNBC and Bloomberg.
USDJPY Technical Analysis 23.06 - 30.06 : Rally Finishing to Ranging
newdigital, 2013.06.27 12:07
Well ... what I am explaining here by text and charts - it is understandable for traders. But there are traders and coders on the forum. And I think we all know that they are using different "forex english" in some cases. So, I am just translating some terms/words I am using for technical Ichimoku analysis onto "coding english" language :) :
Market Condition Evaluation based on standard indicators in Metatrader 5
newdigital, 2013.06.28 18:00
as to lower timeframe ... the default settings of Ichimoku is 9/26/52, right? But it is mainly for higher timeframe (started from H1 for example). For lower timeframe - there are 2 kinds of settings:
Besides, there are many signals of Ichimoku indicator to open the trades. I know about 6 signals (but it is much more signals in combination with each other):
The combination of all those 6 signals = Ichimoku indicator.
So, the request about alert ... it is the request to create alet for all those signals with combination with each other? if yes so it is big project ... I do not have the credits in my profile for all those alerts (which may be - more than 100 different variations) :) ... if you are talking about some particular signal so - it may be possible to make alert.
I am mostly using on the thread just one signal : Chikou Span crossing historical price. So, which signal to be alert?
A Simple Pattern That Signals A Trend Change by Steven Prim
One of the best ways to gain consistency in your trading is to trade
with the trend. But wouldn't it be better to know when a trend has
changed? Join Steven Primo, Former Stock Exchange Specialist and 36 year
professional trader as he reveals -- A SIMPLE PATTERN THAT SIGNALS A
TREND CHANGE. In this presentation Steven will show you how to spot
these trend changing patterns by displaying numerous chart examples in a
variety of currency pairs. Mr. Primo's tools are extremely simple yet
versatile, and can also be applied to trading any market, in any
direction, and in any time frame.
This concept of the stop being a sort of "moving target" is a nice lead
in to our next concept and lesson where we are going to be talking about
what is known as a trailing stop.