DailyFX for Beginners

Anticipating a MACD Crossover

Richard Krivo — Fri, 19 Mar 2010 16:07:16 GMT

Student's Question:

I want to ask you -

I was of the mind - as I was reading the lines - just before the crossover - to anticipate the market price dropping versus waiting for the actual crossover to occur to make my trade.

That's why I placed my trades where they are. Is that too risky??

Also, do you think I should have placed my Limits lower? If so, where should it have been placed.

Thank you....

EUR/AUD

Thomas Long — Thu, 18 Mar 2010 11:51:34 GMT

What do you get when you combine a 13-year low with a positive rollover for open sell positions?

Trade with at least a 1:2 Risk Reward Ratio

Richard Krivo — Wed, 17 Mar 2010 17:40:48 GMT

Student's Comment:

I entered the EUR/CAD based on Shooting Star @ 20 EMA. My stop is placed just above the trend line with first target of 20 pips.

Support and Resistance

Thomas Long — Wed, 17 Mar 2010 11:43:29 GMT

Of all the strategies used to identify an entry into a trade, the use of support and resistance may be one of the more reliable.

March 16th FOMC Meeting

Thomas Long — Tue, 16 Mar 2010 11:59:09 GMT

I am of the opinion that the major tops and bottoms of a market are determined by the fundamentals of that particular market.

Top Movers

Thomas Long — Mon, 15 Mar 2010 15:19:31 GMT

A valuable tool used by experienced traders is a table of the biggest moving currency pairs over a designated period of time.

Trading a Range Bound Market

Thomas Long — Mon, 15 Mar 2010 14:20:37 GMT

A range bound market is noted by a number of moves between two similar price points. The 4-hour chart of the EUR/USD is a good example of a market in a range.

The Economic Calendar

Thomas Long — Mon, 15 Mar 2010 12:33:15 GMT

Instead of posting a chart today, I thought I would show some important economic releases that will take place this week.

Trading with Bollinger Bands

Thomas Long — Fri, 12 Mar 2010 15:48:54 GMT

Bollinger Bands are simply moving average bands with a volatility filter. However, it is that volatility filter that makes this one of the more valuable and popular technical indicators in use today.

Understanding Foreign Exchange Rollover

Antonio Sousa — Thu, 11 Mar 2010 23:51:50 GMT

In this article we make an attempt to demystify foreign exchange overnight rollovers. In particular, we try to explain how rolls work by highlighting the differences between central bank benchmark risk-free rates and interbank offered rates.

DailyFX Pivot Points

Thomas Long — Thu, 11 Mar 2010 22:09:50 GMT

Many successful day traders use support and resistance in their trading approach since technical indicators have limited value on the shortest time frame charts. Pivot Points are the preferred way to determine that support and resistance for many of those traders.

Trading with Candle Formations

Thomas Long — Thu, 11 Mar 2010 17:39:20 GMT

Candle formations can be a valuable addition to a trader’s approach to trading, but only if used correctly.

EUR/CAD

Thomas Long — Thu, 11 Mar 2010 15:02:30 GMT

The AUD is not the only strong currency worth following. The CAD has also shown strength, most likely based on the price of oil rising to above $80 a barrel.

Long Wicks

Richard Krivo — Wed, 10 Mar 2010 23:26:49 GMT

Student's Question:

Long wicked candlesticks are discussed in the course. Would you give an example of how they might be used in a trading situation? Thanks.

An SSI Trade

Thomas Long — Wed, 10 Mar 2010 17:09:33 GMT

For years, savvy traders have incorporated sentiment into their trading approach.

AUD/CHF

Thomas Long — Wed, 10 Mar 2010 14:40:53 GMT

The AUD/CHF remains in a strong uptrend with a new 20-month high being printed this morning.

Stop Placement: Negative Risk Reward Ratio

Richard Krivo — Wed, 10 Mar 2010 00:50:43 GMT

Student's Comments:

20 day crossed the 50 day, 20 day crossed the 200 day ,candlestick patterns showed a bearish engulfing pattern, enter at following candle at 132.54 -set stop at 132.21 - exit at 131.54

Next chart shows 200 day crossing 50 day with a double top. enter at 133.64 - stop at 135.05 - exit at 132.65

The Moving Average Trade

Thomas Long — Tue, 09 Mar 2010 16:24:20 GMT

The FX markets have always been known for their long trending moves and experienced traders use this to their advantage.

GBP/AUD

Thomas Long — Tue, 09 Mar 2010 13:46:07 GMT

The GBP/AUD continues to make new multi-decade lows with a move down below the 1.6450 level this morning.

Stop Placement: Double Bottom

Richard Krivo — Tue, 09 Mar 2010 00:18:17 GMT

Student's commments:

Here are my entry and stop levels on this trade.

Stop level, blue line at 128.515

Entry level, gray line at 140.602

The MACD Trade

Thomas Long — Mon, 08 Mar 2010 16:20:21 GMT

The important first step in identifying a potential trading opportunity is to pick the right pair. What we should be looking for is strong trending markets and then to find a trade in that same direction.

EUR/AUD

Thomas Long — Mon, 08 Mar 2010 13:59:32 GMT

As this new week starts it is still the EUR/AUD that appears to be the strongest trending pair.

Stochastics: closing above 20 and below 80

Richard Krivo — Thu, 04 Mar 2010 20:31:25 GMT

Student's Question:

My question is regarding when do we enter a trade using Stochastics:

1. after stochastics have crossed 80/20 lines in either direction?

2. after stochasics crossed below the 80 and above the 20 lines?

Also, do I have to wait for the current candle to close to enter the trade?

Thank you very much.

Trading the Nonfarm Payrolls

Thomas Long — Thu, 04 Mar 2010 14:12:13 GMT

This piece has been posted here before, but I like to remind traders of what is happening this Friday, March 5th at about 830AM Eastern, which is when the US Department of Labor will release the most anticipated news report of the month, the US Nonfarm Payrolls.

FXCM Expo in Las Vegas

Thomas Long — Wed, 03 Mar 2010 15:15:37 GMT

Announcing the FXCM Expo in Las Vegas: May 3-4, 2010.