ibrahim a asked:
I am a forex beginner. I’ve been trying different indicators to help me profit from forex trading, but most are complicated and difficult to understand. I am glad if someone out there can help me with something easy and reliable.
I am a forex beginner. I’ve been trying different indicators to help me profit from forex trading, but most are complicated and difficult to understand. I am glad if someone out there can help me with something easy and reliable.
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first, you have to understand there is nothing easy and reliable. and if there is, only a small group of people know. if everybody knows the market will adjust so nobody can profit from that trick anymore.
as for your main question, many chartist use 6 day and 12 day MACD as part of their indicators. they may buy when 6 day crosses 12 day on the low and sell on the high.
No indicator will work on it’s own, you have to combine them with others to build a complete trading system. I suggest to learn more about trendlines, candlestick patterns and the different technical indicators and what they can do for you. Or you could invest some money in a trading system to get you started. The choice is up to you.
MACD doesn’t really work anymore, at least in the currency I trade, read the wiki article below (re: ‘whipsaw’). As far as I can tell stochastic (5, 3, 3) is more important, but yet again, that will depend on the currency you are trading.
to profit from forex is tough luck for a newbie. more often than not, you end up losing your deal. well, you just have to take that as part of your learning process, sort of paying some tuition fee. there is no such thing as accurate forex software. the Forex market is so uncontrollable that no single event, individual, or factor can rule it nor predict its outcome. personal experience is still the best software. learn from your own mistakes. reflect on the steps you took when you terminated, closed or exited your position. try to understand how you profited or lost from your past deals. suggest you learn how to establish stop/loss and limit orders. stop/loss orders help traders control risk by capping losses, limit orders help create a disciplined trading methodology.
you may check your options in this site. learn various technical and fundamental analysis by talking live to a personal Account Service manager and increase your chances of raking in profits from your deals with their proven trading strategies formulated from years of experience being one of the world’s leading forex site.
Consider yourself very good if you get 50% of your trades correct. Pick 2-3 indicators that you feel comfortable with. The most important part of FX trading is “Position Sizing” and “Money Management” (keep your win/loss ratio to at least 2/1,better 3/1). ie., you make $200 for every winning trade & $100 for every losing trade. Best bet, take the next year and read 8-12 books on FX trading.
I like the MACD (Hist. +2 lines) using the fast momentum line as the trend indicator.
Go here:
Some very good resources there. Good luck.
Focus more on fundamentals than technical analysis. Economic news analysis is what moves the markets.
Here is a free site that shows what has happened after economic news releases:
I have two moving averages you can use on my website and they are totally free, this would be in lieu of MACD but its all trend based. Do not apply these to one timeframe, apply these to multiple timefremes and start with the largest trend first to monitor or analyze a pair. There are screenshots there on how to set them up with on a metatrader platform and how to use the free price alarms too to monitor movement.
Go to the website and click on “complimentary trading tools” for full setup instructions.
here are the links
Good Trading
Mark Mc Donnell