Trading on the Break the Bull Ride news trading - forex market hours new zealand

Trading on the Break the Bull Ride news trading ~ forex market hours new zealand

In this version of the news trade, the idea is to get into the trade as soon as the data release breaks. The trader needs to have the ticket ready to go and jump in. The risk here is of a whipsaw, where the price reverses.

This risk is not as high as people think because when the news breaks, there is maximum energy and the market will respond. The risk of no surprise does occur and that results in a small move, causing the risk of smaller losses than a whipsaw because essentially the price doesn’t move beyond a previous range and there is little room for profits. But if you’re on the bull or bear trade and it is a big move, you have the same challenge ofwhen to get out. The advantage is that you are not immediately wrong.

Trading on the Break (the Bull Ride news trading)

More info for Trading on the Break the Bull Ride news trading ~ forex market hours new zealand:

Read More..

Trade the Break - forex market hours on sunday

Trade the Break ~ forex market hours on sunday

In trade the break, we see exactly where to place our entries and exits for both short and long positions.For this strategy, the trick is not so much in the entry price but in the stop loss. Many retail traders have no problem identifying areas of entry since the directional bias is to follow the momentum. However, the correct placement of the stop loss is what separates winners from losers.

Time Frame

Trade the break works with the 15-minute (M15) or 30-minute (M30) candle.

This means that each candle on the chart represents 15 minutes or 30 minutes of price movement.

Indicators

No indicators are used for this strategy.

Currency pairs: majors: EUR/USD, GBP/USD, USD/JPY, USD/CHF,USD/CAD, AUD/USD.

Rules

Trade the break is all about momentum. A big clue is seen when prices close above resistance or below support. This clue tells us that momentum is building strongly on one side. When prices close above resistance, that candle is called the breakout candle. A long trade is then taken at the opening

price of the next candle. The stop loss is placed below the midpoint of the prior range because we do not expect prices to fall back below that point.

When prices close below support, that candle is also called the breakout candle. A short trade is then taken at the opening price of the next candle.

The stop loss is placed above the midpoint of the prior range because we do not expect prices to rise above that point.

Long Trade Setup

We use the AUD/USD on M15 time frame to illustrate long trades. Here are the steps to execute the trade the break strategy for long:

1. Use at least two lows and two highs to identify the support and resistance levels.

2. Identify a candle that closes above the resistance. This is the breakout candle.

3. Enter long at the opening of the next candle.

4. Set the stop loss at the 60% mark of the range (distance between the support and resistance) below the resistance. In this example, the dis- tance between the support and resistance is 41 pips; the stop loss is set at 25 pips below the resistance.

Set two profit targets for this trade. The targets are set at a risk to reward ratio of 1:1 and 1:2 respectively. Since the stop loss is 44 pips (distance between the EP and the SL), the first profit target will be 44 pips, and the second profit target will be 88 pips. (se picture)

Short Trade Setup

We use the AUD/USD on M15 time frame for illustrating short trades. Here are the steps to execute the trade the break strategy for short:

1. Use at least two lows and two highs to identify the support and resis-tance levels. 

2. Identify a candle that closes below the support. This is the breakout candle.

3. Enter short at the opening of the next candle.

Trade the Break

4. Set the stop loss at the 60% mark of the range (distance between the support and resistance) above the support. In this example, the distance between the support and resistance is 42 pips; the stop loss is set at 26 pips above the support.

5. We set two profit targets for this trade. The targets are set at a risk to reward ratio of 1:1 and 1:2 respectively. Since the stop loss is 31 pips (distance between EP and SL), the fi rst profi t target is 31 pips, and the second profi t target is 62 pips. (See picture .)

More info for Trade the Break ~ forex market hours on sunday:

Read More..

Double Bollinger Bands with Awesome - forex trading times around the world

Double Bollinger Bands with Awesome ~ forex trading times around the world

Double Bollinger Bands with Awesomeis trading system a system of volatility trend following.

This system is profitable. It has good profitability and a good ratio Profit/ losses.

Time Frame 4H or higher.

Currency pairs: any.

Technical indicators:

Bollinger Bands (20, 2);

Bollinger Bands (20; 1);

Awesome (optional).

Candle pattern 1-2-3

Trading Rules

Buy

The candle closes above the Bollinger Bands 1 with the condition that the previous two

candles have closed within Bollinger Band 1 but above of the middle band (this condition setup is important).

Awesome with green bar is optional.

Sell

The candles price closes below the Bollinger Bands 1 with the condition that the previous two candles have closed within Bollinger Band 1 but below of middle band (this condition setup is important) ..

Awesome  with red bar is opional.
Initial stop loss 10 pips below/above middle band.

Minimum Profit Target 1.3 initial stop loss.

For a conservative trading only trade in the direction of the major trend.

Add a simple moving average of 100 periods.

Sell ??

Lower bands of the BB1 ??and BB2 <100 simple moving average.

The candles price closes below the Bollinger Bands 1 with the condition that the previous two candles have closed within Bollinger Band 1 but below middle of the band.

Awesome red color is optional.

Buy

Upper bands of the BB1 ??and BB2> 100 Simple Moving Average

The candle closes above the Bollinger Bands 1 with the condition that the previous two

candles have closed within Bollinger Band 1 above but of the middle band .

Awesome green color is optional.

More info for Double Bollinger Bands with Awesome ~ forex trading times around the world:

Read More..

Trading with MACD - forex market hours converter

Trading with MACD ~ forex market hours converter

 The MACD is a indicator developed by Gerald Appel based on two moving averages of price (close). This is a trend-following momentum oscillator. The MACD is calculated by taking the difference between two moving averages long and shorter exponential moving averages (EMA). These Type of the exponential averages are used because they show more quickly to changes in price, A “signal” or trigger line is also used, which is the nine-period exponential moving average of the MACD line. Below there is the MACD formula.

MACD = EMA1 – EMA2

Where:

MACD = Moving Average Convergence/Divergence Value

EMA1 = Current value of the first exponential moving average (using shorter period)

EMA2 = Current value of the second exponential moving average (using longer period) Exponential Percentage Moving Averages:

A weighted moving average calculated by taking a percentage of today’s price and applying it to the previous period’s moving average. The percentage is determined by the investor:

EMA = (Today’s close × Exp %) + [(Previous period EMA) × (1 – Exp %)]

Where: Exp % = The chosen exponential percentage

Signal Line:

SL = Previous period MACD + Exp % (MACD – Previous period MACD)

Where:

Exp % = The chosen exponential percentage for the signal line.

When the indicator is plotted on a chart, including the MACD line and the signal line, the most important aspect is the interaction between the two lines, as well as their positions relative to the equilibrium, or zero, line. When the MACD is above the zero line, it indicates that the shorter-period moving average is above the longerperiod moving average, which in turn indicates that the market is bullish on this security or index. More accurately, current expectations are more bullish than they were previously—demand is increasing. When the MACD falls below the zero line, the shorter period moving average is less than the longer-period moving average, indicating that demand is more bearish than it was in the past.

There are three ways for trade with MACD: Crossovers, OVERBOUGHT/ OVERSOLD , Divergence.

Trading with Crossovers MACD

Crossovers are probably the most popular use of MACDs: a sell signal is generated when the MACD crosses below the signal line, and a buy signal is generated when the MACD crosses above the signal line. In addition, the locations of these crossovers in relation to the zero line are helpful in determining buy and sell points. Bullish signals are more significant when the crossing of the MACD line over the signal line takes place below the zero line. Confirmation takes place when both lines cross above the zero line. Using the MACD in this way makes it a lagging indicator. Just like moving averages—which are also lagging indicators—the MACD works best in strong trending markets. Both the MACD and moving averages are intended to keep you on the “right” side of the market (on the long side during uptrends and on the short side or out of the market altogether during downtrends), meaning you buy and sell late. While you may enter a trade after the beginning of a trend and exit before the trend comes to an end, these indicators are intended to reduce your risk. Figure 1 shows the buy and sell signals generated for NZD/USD by the crossovers of the MACD line and the signal line. Over the period from June October 2008 to to November 2015, Figure 1 highlights the strengths and shortcomings of using MACD crossovers in a trading system. Note that the MACD works very well in strongly trending markets, because it is a trendfollowing indicator. When was in a period of “choppy” trading, the MACD generated trades in losses,

Trading with OVERBOUGHT/ OVERSOLD MACD

 Another use for the MACD is to determine when a given security or index is either overbought or oversold. An overbought condition may exist when the price has experienced a significant upward move. At some point you expect that the price might fall and return to some more “normal” level. Likewise, when the price has seen an extended downward movement, an oversold condition may exist. At some point the price may be expected to rise to some normal level. A security or index may be overbought when you see the MACD rise significantly. During this period, the shorter moving average used in the MACD calculation is rising faster than the longer moving average. This is an indication that the price is overextending itself and, at some point, may reverse its course. When using the MACD to identify periods when a security or index is overbought or oversold, the best buy signals come when the MACD line and the signal line are below the zero line—the security or index may be oversold. Sell signals are generated when the lines are above the zero, where they may indicate an overbought condition. Unlike other oscillating indicators such as the RSI (relative strength index), there is no pre-determined overbought or oversold condition. High and low MACD levels are relative, depending on the security or index you are examining. You may need to study the behavior of the MACD over time before you can determine when the price is overbought or oversold. Looking at the MACD behavior over an extended period of time, you may be able to discern patterns where the MACD may rise or fall to relatively similar levels, at which point the price will fall or rise, respectively— and with it the MACD lines. You should also be aware that over bought and oversold levels need not be symmetrical for a given security or index (in other words, oversold levels can be higher relative to overbought levels and vice versa). Although the MACD is a lagging indicator when trading on the crossovers, it is more of a leading indicator when it is used to highlight possible overbought or oversold conditions. A leading indicator is useful because it alerts you to what prices may do in the future. Leading indicators offer the potential of greater rewards—getting in on the ground floor—while exposing you to greater risk—the possibility of the expected move taking place farther off or never taking place at all. There is the assumption that when a security appears to be oversold, its price will rise; conversely, there is the expectation that a price that is overextended or overbought will fall. The setting of this trading method is discretionary but is have a good profitbility. In the first example 4H chart NZD/USD possible trades with OVERBOUGHT/ OVERSOLD MACD method. Level 0.0028 and -0.0028.

In second example chart level 0.0018 and -0.0018.  

Trading with divergence MACD 

Divergence is one of the best-known types of non confirmation. A divergence is a separation between price and indicator that warns of a possible short- to intermediate-term change of trend. A bullish divergence arises during a down move when price makes either a lower low or a double bottom but the indicator makes a higher low or a double bottom. A bearish divergence occurs during an up move when price makes either a higher high or a double top and the indicator makes a lower high or a double top. divergences can occur at price tops or bottoms and also at price corrections.

corrections. The chart of NZD/USD in Figure shows both a bearish and a bullish divergence. We have add also two moving averages for to confirm the divergence and to entry in the market.

*Moving Average linear Weighted 7 period open.

*Moving Average linear Weighted 7 period close.

Buy

Bullish Divergence confirmed by MA close > MA open.

Sell

Bearish Divergence confirmed by MA close < MA open.

  

More info for Trading with MACD ~ forex market hours converter:

Read More..

50 Pips daily set and forget - forex market hours chart

Power Bollinger Bands ~ forex trading hours australia

Power Bollinger Bands is trading system based on the Bollinger Bands, Stochastic Oscillator and the patterns formation.

Time Frame 4H or daily.

The system works on any pair and Indices.

Setting Chart

Indicators:

Bollinger Bands: period 20, deviations 2;

Stochastic Oscillator (9, 3,3, with levels 80 and 20) that measures overbought and oversold of the price in the market.

Patterns: doji, engulfing pattern, inside candle, pin candle.

Trading Setup

When the Bollinger bands are far enough, wait that the price touches or broken a band, while the stochastic is in a state of overbought (above 80) or oversold (below 20).

Once both of these conditions are met we seek confirmation of entry into the market.

So looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Doji candle:the Doji is a candle indicating a period of indecision of the market the open and close have the same price. The Doji can be interpreted as a reversal signal if it appears with stochastics in overbought or oversold along with the price at the sides with Bollingher bands.

Engulfing pattern: an engulfing candle or also momentum candle, becaouse this pattern is a change of the momentum of the market. the first candle is completly engulfs by the following one.

Inside candle: the inside candle pattern is the complete opposite of the engulfing pattern, the second candle is formed completely inside the body of the previous candle.This pattern may provide a price breakout.

Pin Bar: the pin pattern , it shows huge emotion of the market indicating a potential sign of a reversal of the price.

Example: the buyers pushed the market high but failed to hold it so price returned back to around the open leaving a pin pattern or opposite the sellers pushed the market low but failed to hold it so price returned back to around the open leaving a pin pattern.

Engulfing formation and pin bar pattern are most reliable with a little practice youll soon learn to recognize these patterns and can represent your success.

Trading Rules Power Bollinger Bands

Buy

Bollinger bands are far enough and the price touches or broken lower band,

Stochastic is oversold,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Sell

Bollinger bands are far enough and the price touches or broken upper band,

Stochastic is overbought,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Exit position

Initial stop loss on the previous High/Low after move stop loss at the break even

make profit at the middle band or at the opposite band.

EUR/USD 4H chart

More info for Power Bollinger Bands ~ forex trading hours australia:

Read More..

Sabtu, 19 Maret 2016

50 Pips daily set and forget - forex market hours chart

Posted by pancakaki on 12.37 with No comments so far

50 Pips daily set and forget ~ forex market hours chart

The “50 pips Daily- Set & Forget” system is a very easy set and forget system where you don’t have to watch the market day and night. It is perfect for beginners and people with 9am-5pm day jobs.

The algorithm is based on a 6:00pm est – 6:00pm est (yesterday – today) range and Asian Session opening around 7:00pm est.

Let’s begin:

Forex Candlestick charts show sets of data consisting of open, high, low, and close values of each period.

The hollow and filled section is called “the body”. The lines above or below “the body” are called shadows or tails. If the stock has closed higher than the opening price, then a hollow candlestick is drawn. In addition, if the stock closed lower than the opening price, a filled candlestick is drawn. In a hollow candlestick where closing price is higher than opening price, the lower body shows opening price and the upper body shows closing price. In a filled candlestick where closing price is lower than opening price, the lower body shows closing price and the upper body shows opening

price. Hollow means stocks up and filled means stock is down.

The system works on the majors pairs.

The rules of this system are simple, and managing trades, and calculating levels will take no more than five minutes of your time. The only tricky part is using your knowledge to set limit orders.

This trading system involves 3 simple steps.

1. Get ready around 6:00 pm EST

2. Identify your entry levels

3. Place 6 limit orders

The Strategy Step by step:

. 1. At 6:00pm EST pull a 2H (or 1H or 4H - doesnt matter - it will be used only to determinate high/low of the 24 hour) chart USD/JPY. See example above.

2. Identify the USD/JPY high and low of the 24 hours period

from 6:00pm to 6:00pm ( let’s take an example high=90.50 and low=90.00 )

3. Identify your entry levels

Set 3 BUY orders 7 pips above the high (high + 7 pips)

Order 1 Entry: High +7pips

Set take profit 15 pips and stop loss 25 pips

Order 2 Entry: High +7pips

Set take profit 35 pips and stop loss 25 pips

Order 3 Entry: High +7pips

Set take profit 50 pips and stop loss 25 pips

Example:

USD/JPY High=90.50 Low=90.00

Order example 1 LONG=90.57 Take Profit=90.72 Stop

loss=90.32

Order example 2 LONG=90.57 Take Profit=90.92 Stop

loss=90.32

Order example 3 LONG=90.57 Take Profit=91.07 Stop

loss=90.32

5. Set 3 SELL orders 7 pips below the low (low -7 pips)

Order 1 Entry: Low -7pips

Set take profit 15 pips and stop loss 25 pips

Order 2 Entry: Low -7pips

Set take profit 35 pips and stop loss 25 pips

Order 3 Entry: Low -7pips

Set take profit 50 pips and stop loss 25 pips

Example:

High=90.50 Low=90.00

Order example 1 SHORT=89.93 Take Profit=89.78 Stop

loss=90.18

Order example 2 SHORT=89.93 Take Profit=89.58 Stop

loss=90.18

Order example 3 SHORT=89.93 Take Profit=89.43 Stop

loss=90.18

6. Done! You don’t have to monitor your trades. All will be

done by your limit orders.

IMPORTANT: CANCEL ALL ORDERS IF NOT TRIGGERED ON

THE NEXT DAY BEFORE 6:00pm EST

Do not trade: If the 6pm – 6 pm range is too big – over 150

pips.

More info for 50 Pips daily set and forget ~ forex market hours chart:

Read More..