How to Control Losses with Stop Loss - forex trading platform cost

How to Control Losses with Stop Loss ~ forex trading platform cost

How to Control Losses with "Stop Loss

Stop loss is a widely used order aiming mainly at limiting the possible losses in case of negative market movements.

Stop loss is used only with open positions. When the market conditions are not favorable for a trader and the price has reached the level of the "Stop loss", the deal is closed automatically.

Therefore, Stop loss helps the trader to control losses and in case of failures to keep safe at least part of his deposit.

If a trader does not use Stop loss orders, the position is closed by the broker when the sum of losses is equal to the sum of the deposit.

There are 3 types of Stop loss orders: fixed Stop loss, sliding Stop loss and combined Stop loss.

Fixed Stop losses are set while opening positions. They cannot be changed until the deal is closed. Sliding stop losses, on the other hand, can be modified any time depending on the price movement. Another name for sliding Stop loss is Trailing stop, that can be modified either manually or automatically based on the traders settings.

Now I would strongly encourage you to go and visit the above brokers site right now even if you are not yet decided whether you want to go into Forex trading. Why? because it provides tons of free education materials, videos and best of all a demo account that allows you to practice Forex trading for free without the need to deposit any money. Simply go to the site, register for a free account and start "trading" - by actually practicing and experiencing it firsthand youll be able to decide whether Forex trading is for you.

In any case, before starting to trade for real, it is advisable that you practice with a demo account. Once you build some skill and feel more comfortable with the system you  can start trading gradually for real money.

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3 12 Tunnel Breakout - forex market hours in pakistan

3 12 Tunnel Breakout ~ forex market hours in pakistan

3/12 Tunnel Breakout is a simple breakout system trend following requires:

three exponential moving averages:

12ema (of price highs);

12ema (of price lows);

3ema (of price closes).

Top Tip: This system is great for the Daily timeframe to get on board

some big runs... the 4-hour timeframe works well too!

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

To trade this system we just wait until the 3ema has gone in between the

high and low lines of the 12ema-channel.

On the next candle that closes and causes the 3ema to rise above the

12ema-channel – BUY:

3/12 Tunnel breakout

On the next candle that closes and causes the 3ema to fall below the

12ema-channel – SELL:

3/12 Tunnel Breakout

Exit position is discetionary but see this examples:

4H time frame

stop loss 30 pips on GBP/USD and 25 pips on EUR/USD;

profit Target 40 pips GBP/USD 30 pips EUR/USD.

daily time frame stop loss 60 pips on GBP/USD and 50 pips on EUR /USD;

profit Target 80 pips GBP/USD 60 pips EUR/USD.

Note this trading system is created only for higher time frame. Best time frame is 8H, 12H , or daily.

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Reversal candlestick pattern the Harami - forex market hours pst

Reversal candlestick pattern the Harami ~ forex market hours pst

The Harami pattern is a reversal pattern that signals an exausting dowtrend or a rally that is losoing steam. The Harami candlestick formation is comprised the first candle has a long body while the second candle has a smaller body that is within the first candle. Tipically the smaller of the second candle the stronger the price reversal signal. The smaller the wicks of the second candle the more accurate the signal. If the second candle hovers near the top of the first candle during an up trend this indicates that there is a higher probability for consolidation than a reversal. The same is true in a downtrend, wihch is if the second candle hovers nears the bottom of the first candle, it indicates a higher probability for consolidation as opposed to a reversal.

In Picture we see a bearish Harami reversal where a large white candle is followed by a small dark one. the Harami is a good example of an “inside” day where the price action of today is completely inside the price range of the prior day.  

Candlestick Harami pattern

Harami pattern quiz

Harami Candlestic Pattern Quiz

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