Life and the Forex Market works the same way a firearm works. You own a gun and want to go targeting practice, so you go to a gun range.
At the gun range, you load your magazine with 5 bullets, put the magazine into the gun, aim and fire. When you fire your gun, the gun has to eject the shell casing to reload another bullet into the chamber so you can fire your next bullet.
This example applies to most stuff in life. You get up in the morning, do your daily stuff, but at night you have to eject the shell casing go to sleep to let new energy fill the chamber so in the morning you'll have the energy to do your daily stuff again. You go to the bathroom to eject the shell casing so you can eat again fire the gun again.
You pay the taxi driver eject the shell casing to make the taxi driver able to take you someplace else again. The list goes on and on, but how does this ejecting the shell casing connect to trading? The market can only go up so much before it has to reload another bullet. To reload another bullet, the gun has to eject the previous bullets shell casing, and when that happens in the market, the price falls a bit before the next bullet makes the market go bursting up.
After all 5 bullets are fired, the gun can't fire no more. In trading, the market can't go up no more, so it reverses direction.
Once we change the magazine, the market starts going up again. We can never figure out how many bullets are in the magazine of the market and when they run out because we didn't load the bullets in, the market makers did, but we can figure out when the bullet is fired the market bursts up , and when the market ejects the shell casing the market falls a bit. When the market falls a bit, we know that its ejecting the casing and the next bullet is about to be fired.
When we think the shell casing is successfully ejected, we order a buy position so we catch the next bullet ride up. Play around with the indicators in your trading platform and try to make a strategy that will tell you when the bullet casing is successfully ejected.
Here's an image example. It may look complicating, but you'll figure it out. Posted by Mennzzz at Friday, August 13, New! Hi Traders, Here's another strategy The same for SELL trade. Posted by Mennzzz at 3: Thursday, August 12, New! Posted by Mennzzz at 7: Most trader's don't even know it, but Divergence, is like the 'Holy Grail' to trading You just gotta learn it correctly.
There are 2 types of divergence. There is 'Regular Divergence' and 'Hidden Divergence'. To learn how to trade divergence, you should go through all the lesson at this site: Learn - Divergence Trading.
Hope you are successful in your trading! Posted by Mennzzz at 4: Breakouts and TrendLine support and resistance are all over the Forex market charts. Knowing what a trend is, and how to draw a trend can be quite complicated a first. I'm going to point blank show you an image of trend lines.
The market always usually bounces off trendlines, or in a case were it punctures the line, it will continue going down. To learn how trendlines work It's easy to say that, Trend-Lines rule the market.
Thursday, July 8, New! Scroll down to see "Powerful Simple Trading Strategy". All the indicators have to all give these signals all at the same time. Do the opposite for sell signal. Exit the trade when any of the indicators give the opposite signal you've gotten when you entered the trade. Ehler's for MetaTrader 4. For the exit signal, the first indicator to change to a sell signal from a buy signal is the exit signal. Don't enter a trade if all the indicators don't line together, In other words, don't get into a trade without all the indicators giving the exact same signal at he exact same time as shown in the second image below.
You can play around with this strategy. You have to wait until the candle bar closes over the SSL. This strategy alone, or combined with another strategy will produce profitable results This strategy was not back-tested. I hold no responsibility for any loss. It takes time, and its hard. Maybe I'll post another strategy up soon, if I figure out one. But, for now, play around with this strategy Posted by Mennzzz at 6:More...