Forex Training | Forex Trading Videos | Currency Trading | Forex Analysis | Learn to Trade

Forex Training | Forex Trading Videos | Currency Trading | Forex Analysis | Learn to Trade
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Sunday, July 6, 2008

ADX Indicator in Forex Trading - Video

Today we’re going to learn about the ADX indicator or as its referred to as the average directional movement index in our metatrader platform and how we can use this tool for developing our forex trading strategy.

The average directional Index or ADX, is an indicator that is use to determine the strength of a prevailing trend. The ADX is measured on a scale from zero 100 with a series of lines that illustrate the trend, the strength of the positive direction and the strength of the currencies negative direction. These series of lines are actually three indicators all built in to want into the one ADX.

There are 2 direction movement indicators, one of them being the positive directional movement referred to as the green line in the video. The negative directional indicator in the video is the red line, between these 2 lines you can see the fight between the bulls of the bears and who is dominating that fight. When the green bull line crosses the red bear line then we see that the bulls have just taken charge of the currency pair and can be marked by the change in price movement.

An aggressive buy signal could be taken when the green line crosses the red and vice versa when the red crosses the green without taking into context the blue ADX line.

The blue ADX line is a measure of the strength of the trend for the foreign currency pair. When the ADX line is above 20 or 25 for our case in the forex trading video is an indication that currency pair is trending (we only trade during trending markets remember). We then watch the ADX line and should be in a position on that currency pair and ride that trend as it approaches and even exceeds a value of 40.

Here is when the fun kicks in. Currency pairs can remain overbought of oversold for extend periods of time which is what we always hope for (well when we are making money on a move). So what we watch for is for when the ADX line crosses the 40 line and then moves south towards the 20 line. This is our indication that the trend is over.

Make your trading easy with a proven method of forex trading that makes it easy forex.

-Mission Phoenix
Live Abundantly and Then Share That Abundance

RSI Indicator in Forex Trading - Video

RSI Indicator in Forex Trading - Video

Today we are going to learn about the RSI indicator in Forex Trading. The RSI indicator is a technical momentum indicator which is also a lagging indicator as like all the other indicators. Where does the computers I need to the recent gains to the recent losses in an attempt to determine whether of the currency pairs going to be overbought or over sold, you will see that that the RSI’s number ranges from zero to hundred.

It is deemed to be overbought once he RSI approaches the 70 level and it tends to be overvalued at that level becomes a good candidate for a pullback that. It may correct when it reaches that level, but not necessarily, always remember that it is on a relative basis, and likewise as the RSI approaches 30 is an indication that this currency is undervalued, on a relative basis. Always remember that when using lagging indicators in forex trading everything is on relative terms, meaning that yes the currency is overvalued at the current time (much like the U.S. housing market is some locations), but that doesn’t mean that it won’t continue heading in the same direction. If it was easy, everyone would be rich right!?

The best way that I like to use RSI is rather than looking to see whether it's relatively overbought or oversold is to take divergence into account. Divergence in currency trading is the most powerful trading tool, but most people don't like to use divergence.

Another great way to get these oscillators is to just draw trend. What direction is it heading in? Is there a breakdown out from a triangle? Is there a trend that you can see clearly? Look for times when there is a momentum shift, or a reversal in the indicator. Does the indicator reverse when the currency pair runs out of steam? This may be a big indication that the preceding trend is over and the currency pair may reverse.

The RSI indicator has gained popularity here in recent times however it is never an indicator that should be used by it self. The RSI indicator should always be used with other tools in making entry position decisions with your forex trading strategy.

-Mission Phoenix
Live Abundantly and Then Share That Abundance.

Wednesday, July 2, 2008

Forex Currency Nicknames

Recently I’ve had a few questions about the various nicknames that certain currency pairs have. This can be very confusing, because some commentators, wallets and news feeds will refer to currency pairs in their nicknames, which makes it difficult to follow along and or even participate in the conversation.

There are really nicknames for two different categories. One naming convention refers to actual currency pairs, while the other naming conventions refer to the individual currency itself.

Individual currency nicknames are as follows:

USD = Greenback or Buck

EUR = Euro

GBP = Pound Cable

JPY = Yen

CHF = Swissy of Franc

CAD = Loonie

AUD = Aussie

NZD = kiwi

The most popular currency pair nicknames along with their symbols are shown below:

USD/JPY = Dollar Yen

GBP/USD = Sterling

EUR/USD = Fiber

USD/JPY = Gopher

EUR/GBP = Chunnel

GBP/CHF = Geppy

It makes it easier when following CNBC other news broadcasts to understand what the terminology is in the special language that is used in this Forex trading niche. It’s also helpful, because financial commentary usually is at such a rapid and fast-paced that when you hear an awkward name such as the key we wore the sterling or the fiber that you don’t get hung up asking the question, “what is that”, and then this the following news announcement.

These are the major names of the Forex currency pairs and of the actual currencies, I hope this helps and defines some use for this information. Learning everything in the Forex market takes some time. There are some great courses out there that help with this, it’s also easier to learn from and mimic successful traders, and there are very few courses out there that I would recommend to friends and family. And since friends and family have been wanting me to teach them how to trade for a couple of years now. I decided to fill that need and provide the best quality course available online.

Make it Easy Forex, Learn Forex Trading with the best for Forex Day Trading System.

-Mission Phoenix

Live abundantly, and then share that abundance