Forex Trading Software
Forex trading software, also referred to as currency trading software helps the currency trader with forex analysis and the execution of trades. This software provides charts and other methods for taking orders which are usually included when you open a trading account with a forex broker. When you look for forex trading software to use please note that the software differs greatly in functionality when compared to software for other types of securities.
Forex brokerswill allow you to set up a demo account so that you see if you like the trading software. Every broker is very different and therefore every type of trading software is different so you really should take the time and set up a demo account before committing to a brokerage firm. Decide which software best suites your needs.
Once you have chosen a forex trading software you must choose your methodology for trading forex. You must choose the time frame in which you will trade forex and then you must decide if you will use support and resistance levels, buying or selling breakouts, or technical indicators such as the moving average and crossovers. Once you have decided and settled on a system and a methodology, you then should test to see if it is consistent. Many traders fell that as long as your system is reliable more than 50% of the time that you already have an edge of over traders.
Forex investors and traders recommend back testing your trading system and if you find that if you had traded very time your were given a signal that your profits were more than your losses, then you most likely have a pretty sound trading system in place. You should test a few forex trading strategies when using your forex trading software of choice in order to find one that provides consistent results. Once you find those strategies then you must stick with them and test it with a variety of instruments and various time frames.
The time frame, when forex trading, really tells you what type of trading is appropriate for your investment risk tolerance and your personality. Some traders choose weekly charts which means they are comfortable with overnight risk and they are okay with seeing a few days that may or may not go against your position. Other traders prefer five minute charts because they are more comfortable with being in a position without risking any overnight exposure. Additionally, traders can practice short term trading, also referred to as scalping if they are willing to sit in front of a computer screen all day long and make many trading decisions throughout the day.
Market Direction: Understanding the ramifications of the candlestick signals allows an investor to make intelligent trade decisions immediately. As of last week, holding short positions put a safety cushion in the portfolio. The trading of the last three days of last week indicated indecisiveness, Doji's and Hammer signals. The stochastics had moved to the oversold conditions. What should this have prepared us for? The appearance of any bullish trading would have implied the past three trading days had been bottoming action. Upon witnessing the premarket futures trading positive this morning, that was a good indication the bottoming action would be confirming. This assessment of market conditions prepares an investor to make decisions immediately. The premarket futures showing bullish strength instigated selling the short fun positions on the open. From that point, those funds could be utilized for trading long positions.
Was this going to be a reversal day? At the open, the likely target was eventually a test of the tee line. If that was the case, there was no reason to be in short positions or short funds. There was no anticipation the tee line would be tested today, but establishing long positions put you in the right positions at the right time. Having the ability to analyze the direction of the markets with a high degree of accuracy allows for profitable movement of portfolio positions. The market trend can be easily evaluated for any time frame. This information becomes a valuable tool for the longer-term investor as well as the daytrader. It does not matter whether you are trading stocks, bonds, commodities, or Forex, the correct interpretation of the candlestick signals creates a trading format that allows an investor to put the probabilities in their favor consistently.
The NASDAQ is forming a cradle pattern and closing above the tee line. This is a strong indication of short-term trend has stopped going down. The Dow is also forming a cradle pattern and closing above the tee line. New bullish strength from this area would negate the analytical assessments derived from the head and shoulders pattern. The candlestick investor has the advantage of seeing how parts of patterns are being formed. Long positions will be established well before other technical analysts realize the head and shoulders formation is not confirming. This is what produces much better profits for the candlestick investor. Establishing positions before the rest of the investment crowd can reassess their positions.
Candlestick signals prepares an investor for a potential pattern or pattern breakout. Being able to visually analyze when a trend is in the process of reversing allows for the establishment of positions at the appropriate time. Currently the CHK chart is revealing bullish sentiment in the oversold areas.
High profit patterns presentation - Thursday July 16, 2009 Steve Bigalow will be presenting to the World Cup Advisors group. You are invited to join his presentation. The World Cup advisors group has a number of unique investor programs you can trade as they do through the World Cup program. Join us for a review of the candlestick high profit patterns. Also, learn about the different trading programs available with the World Cup advisors group. Please take the time to explore some technical investment programs operated by very reliable traders. This is a perfect method for diversifying your investment funds into highly profitable trading funds.The WorldCupAdvisor site is home to nationally recognized futures, forex and stock traders. Through their advanced technology, they are able to display their live trading accounts in real time and allow subscribers to attempt to replicate their activity. Many subscribers use World Cup AutoTrade service to follow trade activity automatically. Click here to register.
The Candlestick Forum Online Training clinic - July 25 and 26, 2009. Do you want to have better control of your own investments? Wouldn't you like to accurately analyze your own investment trades versus depending upon others to invest your money? If you learn how to use candlestick analysis in a step-by-step orderly manner, you are going to have a much more clear understanding of how the professional investor thinks. Candlestick analysis is merely the graphic depiction of investor sentiment. The successful investor acknowledges that prices do not move based upon fundamentals, they move based upon the perception of fundamentals. The candlestick signals are graphic formations of investor sentiment. Whether you are a beginning investor or a seasoned trader, you will gain insights from this two day training program that will alter your investment abilities for the rest of your life.
The Candlestick Forum Team
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