Forex for a trader
Youtube sell and buy forex

Youtube sell and buy forexKnow When to Buy or Sell a Currency Pair. In the following examples, we are going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. But right now, try to pretend you know what’s going on… In this example, the euro is the base currency and thus the “basis” for the buysell. By doing so, you have bought euros in the expectation that they will rise versus the U. S. dollar. If you believe that the U. S. economy is strong and the euro will weaken against the U. S. dollar, you would execute a SELL EURUSD order. By doing so, you have sold euros in the expectation that they will fall versus the US dollar. In this example, the U. S. dollar is the base currency and thus the “basis” for the buysell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USDJPY order. If you believe that Japanese investors are pulling money out of U. S. financial markets and converting all their U. S. dollars back to yen, and this will hurt the U. S. dollar, you would execute a SELL USDJPY order. By doing so you have sold U. S dollars in the expectation that they will depreciate against the Japanese yen. In this example, the pound is the base currency and thus the “basis” for the buysell. By doing so you have bought pounds in the expectation that they will rise versus the U. S. dollar.

If you believe the British’s economy is slowing while the United States’ economy remains strong like Chuck Norris, you would execute a SELL GBPUSD order. By doing so you have sold pounds in the expectation that they will depreciate against the U. S. dollar. In this example, the U. S. dollar is the base currency and thus the “basis” for the buysell. If you think the Swiss franc is overvalued, you would execute a BUY USDCHF order. By doing so you have bought U. S. dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that the U. S. housing market weakness will hurt future economic growth, which will weaken the dollar, you would execute a SELL USDCHF order. By doing so you have sold U. S. dollars in the expectation that they will depreciate against the Swiss franc. When you go to the grocery store and want to buy an egg, you can’t just buy a single egg; they come in dozens or “lots” of 12. In forex, it would be just as foolish to buy or sell 1 euro, so they usually come in “lots” of 1,000 units of currency (Micro), 10,000 units (Mini), or 100,000 units (Standard) depending on your broker and the type of account you have (more on “lots” later). “But I don’t have enough money to buy 10,000 euros! Can I still trade?” You can with margin trading! This is how you’re able to open $1,250 or $50,000 positions with as little as $25 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Listen carefully because this is very important! Sell the Euro, Buy the Dollar.

Trade currency exchange rates using forex binary options. With the US Federal Reserve poised to raise interest rates and the European Central Bank committed to keeping its rates at or near zero for some time, the exchange rate between the euro and US dollar fell dramatically over much of 2014. It finally appeared to find a bottom early in 2015 and went into a volatile range with up weeks and down weeks. During that time, the Greek economy went through a long debt crisis and a series of negotiations with its EU creditors. The US unemployment rate dropped to rates not seen since before the financial crisis. And China’s stock market, which had been booming, showed signs of weakness. While the weakness in Europe’s economy drew investors to the US stock market, it also meant bargains for travelers to Europe and those buying European products. All of which is to say, there was plenty for traders to consider in their decision-making about the relative value of the two currencies. In this in-depth example, you’ll trade a downward trend in the EURUSD currency pair. You decide to sell a binary option with the expectation that it will expire in the money and you will collect $100 per contract (option).

What if the price goes up? You can exit at any time, but since you have the built-in protection of knowing your maximum possible loss up front, you’re going to use that to your advantage. Your plan is to sell an option for well over $50 and hold it until expiration. Your maximum loss is one you’re prepared to take and you also know that you can change your mind and get out early. Every binary option trade has four basic steps: Choose a market to trade and the time frame you want to trade Choose a strike price you think the market will be above or below at expiration (or before) Buy or sell for an amount you are willing to risk Manage the trade until exit or expiration. The Nadex EURUSD spot forex option is based on the current exchange rate of the worldwide, decentralized currency market. Unlike stock or futures, the price is not set by a single exchange. The forex market is by far the world’s largest and therefore has a constantly updated price. Nadex uses an underlying indicative market based on live data feeds from Reuters, Bloomberg, and other trusted sources. For this example, let’s say the EURUSD is trading around $1.10 to one euro. 1. Choose your market and expiration. You see that the EURUSD has been in a downtrend for two days and you think it will continue. You want to sell a binary option and then either buy it back at a lower price or hold it until expiration. Given the clear trend direction, your hope is to sell for a price well above $50 and hold it until expiration, when the option price will be zero. You see price resistance above 1.1040, with the market hovering underneath that level. While the market might go higher, you think there’s more downtrend to come.

However, the market is volatile and you can’t be sure what it will do the whole day, so you choose a binary that will expire in an hour or less. In the Finder panel on the left side, you choose Forex (Binaries) and under it, EURUSD and Daily (11AM). The current time is just before 10AM and you start watching for a good entry point. 2. Strike price: your line in the sand. Every binary option is based on a simple question: will the market be above this line at this time? Since you are selling the binary option, now it’s time to choose that line—the line you think the market will be below at expiration. The seller of a binary option thinks the answer to the question is No. You’ll get the full payout even if it’s right at the strike price, but your goal is to be safely below it. While some traders will choose their strike price from the contract list, many traders like to open a chart and do some technical analysis. Our binary ladder charts have buy and sell buttons have buy and sell buttons next to each strike level, so you can place your order right from the chart window. Here’s how to see the chart for your particular contract. From the list of contracts, choose: EURUSD > 1.1040 (11AM) On the right side of the binary ladder chart are Buy and Sell buttons next to each strike price. You click the Sell button next to 1.1040. This example is going to be a little more involved, with multiple contracts and some ups and downs. To see a simpler, but still realistic example click here. Before you can place your order, the market pops up two points in less than 10 minutes. When something like this happens, you may re-evaluate your trading plan.

In this case, you decide to use the opportunity to sell the same strike price for a higher amount, meaning a higher portion of the $100 value of the binary option. You still believe the market will head downwards before the expiration time. An order ticket will pop up. Here you choose your selling price and number of contracts. The order ticket will show you the live bid and offer price. Since you used the chart, your order price will be filled out. In this case, it’s 66.00. If you had clicked on the contract name in the list, then the ticket will still be blank. A great feature of Nadex ladder charts is that you can see the live chart along with the order ticket: In this case, the market ticked upwards and the Bid price went higher, meaning more potential profit for a seller. Clicking on it will update the price window. Or if you want to set a limit order for the price you want to pay, just type it in. Set the number of contracts (options) you want to trade. You’ll see that your maximum profit and loss, if you place the order at that price, is calculated and shown at the bottom. In this example, let’s say we’re trading ten contracts. You can trade more or less depending on your account size and preference, but the riskreward ratio remains a reasonably favorable one to two. When we say that you know your riskreward up front, you can see it right there, next to the Place Order button.

Run through the checklist one more time. Do you have the right expiration and strike price? Are you buying or selling? Did you place the correct order for the right number of contracts? Is your order at the price you want to pay, with the max profit and loss that you want? Once you have those things the way you want them, click Place Order. Nadex will never take the other side of your trade. Your order is matched with that of another exchange member. Your order will appear in the Working Orders window of the platform.

If it is for a different price than the current bid, you may have to wait for it to get filled. Once it is filled, it moves to the Open Positions window. At this point, things get interesting. The market heads back up and your trade starts losing money. It doesn’t lose the maximum possible, however. And even if the market went up dramatically, you still have the security of knowing that your risk is limited. Still, patiently enduring that red number in your ProfitLoss column is part of trading. 4. Manage your trade until exit or expiration. Knowing that your maximum risk is limited to an amount you decided on helps you focus on something other than that loss, which may or may not be temporary, but is definitely capped. Meantime, you start to see the market stop again at the blue resistance line on your chart and resume the downtrend. Interestingly, the trade starts to become profitable even before the market price falls below the strike price. When the market is at 1.10438, the option is breaking even. Why? The option is independently traded and the price is determined by the buyers and sellers in the exchange. As the market continues to drop (and you start to celebrate your analysis andor luck), the binary option also moves toward expiration. With less time for it to move back above the strike price, demand for the option drops and the value declines toward zero.

You as the seller profit more as the option loses value. As the option expires, your profit maxes out. For the sake of this example, we’re showing you how it looks to hold the options until expiration, but you could have exited early with most of that profit already locked in. Why would you do that? The market is just below your strike price, not a huge margin of safety. In fact, this market did turn around just after expiration. It didn’t change the outcome of the trade, but a few minutes earlier and it might have. That’s why it’s important to manage the trade and have a strategy for whatever the market offers. We designed the Nadex Trader platform and our other platforms to give you the flexibility to react to ever-changing markets with confidence. This particular trade took some unexpected turns, but because of the limited risk, you could spend your energy trading, not worrying. At no time did worry about how much you might lose, since you knew that up front. And at no time did you wonder if the pricing was reliable, or if the exchange might be taking the other side of your trade, or if your fill was really the best possible one. And finally, the platform itself didn’t get in your way. Fill out our online application in just a few minutes. You’ll get a quick response. Once it’s approved, you can fund your account and be trading within minutes. What Forex Buy and Sell Signals Do I Use? This week’s question comes from Kendrick, who asks: Would you be so kind to discuss the various sell and buy signals that you frequently or commonly look out for when trading, especially after identifying support and resistance? Just about everything I do in the Forex market revolves around six buy and sell signals . Three are candlestick patterns while the other three are chart patterns such as the head and shoulders.

The question above reminded me that while I have written about these signals separately, I’ve never compiled them into a single post. So this seemed like the perfect opportunity to give you a big picture view of the signals I use. If you’ve followed me for any length of time, you know that I like to keep things simple. So while the six patterns below can be highly profitable, they are also simple to understand. In fact, some might say they are too simple. But I assure you that after using the signals in this post for more than five years, they are all you need to become consistently profitable in the Forex market . What follows is a summary of the various signals I use along with real life examples of each. Feel free to use the links throughout this post to learn more about the different patterns including entry and exit methods. With that, let’s begin. Candlestick Patterns.

There are three types of candlestick patterns I look for during a trading week. They are the pin bar, engulfing bar and inside bar . While the pin bar can be traded on the 4-hour and daily time frames, both the engulfing and inside bars are most effective on the daily time frame and higher . If you use them on any time frame lower than the daily you open yourself up to false positives. Let’s take a look at each one in greater detail. For those who have followed me for a while now, it will come as no surprise to hear that my favorite candlestick pattern is the pin bar. These candles are characterized by long upper or lower wicks and represent a rejection of support or resistance . That last sentence is paramount to the effectiveness of the pin bar pattern. Without having a key support or resistance area near the candlestick, the formation is rather meaningless. Here’s an example of a bearish pin bar on the AUDUSD daily chart: Notice how after closing below a key level, the pair formed a bearish pin bar after retesting the area as new resistance. A short entry on a 50% pullback would have yielded a tidy profit in less than 48 hours. To learn more about the pin bar including how to trade it, see this post. The engulfing bar is a reversal pattern that can often signal exhaustion from buyers or sellers . As the name implies, it’s a candle that completely engulfs the previous one. One critical rule of using this signal is only to pay attention to the engulfing patterns that develop on the daily chart and above .

Any signal on the intraday charts is unreliable in the sense that it could be a false positive. Another important point is that the candlestick pattern must form at a swing high or low . Otherwise, it won’t signal the necessary exhaustion from bulls or bears that make it an effective reversal signal. Below is an example of an engulfing candle on the AUDUSD daily chart. Note that the candle formed at a swing high and at a resistance level that had been in place for several months. See the two links below to learn more. When I began trading with price action in 2010, I started with the pin bar and inside bar candlestick patterns. I figured I would learn the two signals inside and out before considering other more advanced patterns. It was a good move. I always advocate sticking with one or two price patterns in the beginning before expanding your options . The fewer things you have to learn the easier it is to become proficient by honing in on the subject at hand. But over the years I’ve moved away from trading the inside bar, at least to some degree. I still find one here and there that catches my attention, but for the most part, I don’t trade it. That doesn’t mean it isn’t a profitable signal.

It just means that it doesn’t suit my style as much as the other signals in this post. With that said, for someone searching for a good trend trading signal , the inside bar is one of the best in my opinion. The key, however, is to make sure you stick to the daily time frame . Anything lower than that and you’ll end up with too many false positives. Below are three bullish inside bars that formed on the USDJPY daily chart during an aggressive rally. The key here is to find a pair that is trending. You should also pay close attention to the location of support and resistance before deciding to execute a trade. See this post on the inside bar trading strategy to learn more. Now that we’ve looked at the three candlestick patterns I use, let’s dive into the three chart patterns.

These include the head and shoulders, channels and wedges . As the name implies, these are patterns that form over an extended period on a chart and involve multiple candlesticks. In fact, most of the technical structures I utilize take weeks, months or even years to materialize. The good news is that we don’t have to wait months or years to trade. With dozens of currency pairs at our disposal, there’s almost always something to do. Head and shoulders (and inverse) When it comes to profitability, the head and shoulders pattern is at the top of the list. It typically forms after an extended move up and signals exhaustion from buyers . The inverse head and shoulders pattern also represents a potential reversal but does so after an extended move down and signals exhaustion from sellers . The reason I say these formations can be highly profitable is that they often provide several hundred pips of profit if traded successfully. Here’s a head and shoulders pattern that formed on the NZDJPY weekly chart over several months. This was a formation that I traded and also commented on several times on this site as things unfolded.

In the case of this NZDJPY reversal, the selloff totaled more than 1,200 pips. Note that the head and shoulders also comes with what’s called a measured objective . This is a potential profit target that’s found using the height of the structure. Learn everything there is to know about the head and shoulders pattern in this detailed guide. You can learn more about how to use measured objectives in this post. Channels (ascending and descending) Channels occur more often than most traders probably realize. They are particularly plentiful after an impulsive move up or down . The channels that form in this manner are known as bull and bear flags . If you’ve followed me for a while, you’ve no doubt seen me comment on either an ascending or descending channel. In fact, I bet not a single week goes by where I don’t use a channel to outline the price action on a given chart . They offer an excellent way to identify and outline periods of consolidation which can provide an opportunity to play the subsequent breakout. Here’s a recent example of an ascending channel on the NZDUSD daily chart: Notice how the ascending channel above began forming after an extended move lower. As such, we could also call this a bear flag, which most often represents a continuation of the prevailing trend .

Check out the detailed guide on how to trade equidistant channels for more information. While usually the result of consolidation, channels can sometimes outline a broader trend or cycle . Such is the case with the ascending channel on the NZDJPY monthly chart below. Instead of using the channel above to catch a breakout (which would take decades), I would use a formation like this to form a longer-term outlook for the pair. See this post for more details on how I utilize multi-year channels such as the one above. Wedges (narrowing and broadening) Like channels, wedges usually represent consolidation. However, what sets them apart is their terminal nature. In other words, a narrowing wedge has a definitive end point whereas a channel does not . The two charts below show the difference between a narrowing wedge and a broadening wedge. First up is a narrowing wedge on the GBPJPY 4-hour chart.

As the name implies, a narrowing wedge occurs when price action gets “squeezed” by support and resistance . Because the pair has no choice but to eventually break out, we call this a terminal pattern. Now, here’s an example of a broadening wedge on the GBPJPY 4-hour chart: Notice how unlike the narrowing wedge in the first chart, the price action in a broadening formation “fans out” as time passes. The broadening wedge is not considered a terminal pattern because the pair could theoretically never break support or resistance. Of course, reality says that the formation will eventually break down as was the case in the chart above. Want to know more about the broadening wedge? Check out this post. If you’re new to price action or just looking to add an extra signal or two to your already established arsenal, the list above is a great place to start. Each one is simple yet highly profitable if you follow the lessons on this site (see links throughout this post). My advice is to pick one or two signals, learn the characteristics, entry and exit methods, etc. before moving on. Trying to learn all six at the same time would make things harder than they have to be in my opinion. Also, the more material you try to digest at one time, the longer it will take to become proficient . By selecting just one or two patterns, you’ll be able to master them in much less time than if you took on all six at the same time. Last but certainly not least, stick to the 4-hour and daily time frames, take notes and just keep piling on the experience . Before you know it, you’ll be seeing pin bars and channels without even thinking.

Your Turn: Ask Justin Anything. I’d love for this new weekly Q&A to be successful and provide an invaluable repository of answers to common Forex questions. To do that, I need your help. Here’s what you can do to get involved and have your question answered in next week’s post: Ask questions. Post them in the comments below or Tweet them to me @JustinBennettFX Help me answer questions. If I missed something or if you have something to add, don’t hesitate to leave a comment below. been trading 2.5 yrs - not profitable - currently in a course so not a canditate now-maybe later. No worries, James. There’s a ton of free material here to digest. Just wondering what is your view on supply and demand trading? Do you ever use these zones?

Any tips on it if you have any would be cool. Love your site ?? Hi Justin, thanks for the question. The support and resistance levels I use throughout this site are the byproduct of supply and demand, but I could certainly elaborate on the topic in a future Q&A. Just wanted to say this is one of the most useful articles on price action trading I have come across. Pretty much all we need to know about price action trading in one concise and informative post. Great stuff. Now to put it into practice! That’s great to hear, Dan. I appreciate the feedback. Cheers. I started love your yr technique, now I started getting profit, Tq so much for yr help. You’re very welcome, Rosli. Thanks for sharing your experience using these strategies. Your method influences the way I trade, because it suits my trading type.

Thank you Justin. You’re welcome, Agung. Glad to help. Let me know if you have any questions. Hi, Dear Justin, , This article is like a grossary store, no need to move here and there. simple but well-explained. Thanks and have a nice weekend. I love that analogy, Mahmood. Thanks for the feedback. Much appreciated and great to have it all on one post with simple explanations! Pleased to hear that, Mimi. Cheers. Draw a chart in the Future, al you’do is Dessing some lines on what happend, my kid from 3 van do that also. What a rude and irrelevent comment.

What exactly is this ‘chart’ you’d like to see? Trading price action (as explained very clearly inthis article), is about using candle stick and chart patterns in confluence with support and resistance areas, channel breakouts etc. Why are you subscribed to a website that can help you with your PA trading when all you can do is be rude the the person writing the post? This article is good (and moreover, free), education. I wish you all the best, Let me know which commentary you’d like to see, and I’ll be happy to post the links. The truth is that five of the seven signals above were discussed on this site in real time. In other words, I’m not just going back after the fact and drawing levels. The examples above were taken directly from the Trade Setups section of this site. Justin, Thank you for the article. I learnt something totally new, sticking to the 4hr and above time frames. Is the Pin Bar good on the 1hr time frame? Regards. John. John, it can be useful on the 1-hour chart, just make sure you have a good reason for trading it. Having said that, trading the 1-hour chart before you’re profitable on the daily is like trying to run before you can walk. Gooday justin, read some of ur articles, they ar’ priceless.

Money is ur issue for doing this, it is noble gesture which some people will sell jst to hve all the money of this world. Ur articles hve been concise, incisive and an eye opener. I will like to knw if a confluence is also a resistance and support? Jon, I’ll be writing about confluence in the next Q&A segment. Thanks for the question. Hi Justin, What about indecision candlestick pattern on support and resistance level? Would you recommend using it, any comment on it from you will be appreciated.! Rahat, anything that represents indecision isn’t actionable, so I tend to ignore it. With that said, I’ll add this question to the list as I believe some could benefit from the answer. Cheers. Great to have this all together in one post. Is it possible to give us cheat sheets with a bullet point summary of the rules and maybe a chart of each? I thought I saw something like that on the site somewhere once but was not able to find it later. Francois, pleased to hear you found the content valuable. I think you’re referring to this post: dailypriceaction.

comfree-forex-trading-lessonsforex-candlestick-patterns. I won’t be creating PDFs like that for the weekly Q&A posts due to time constraints. This is a very helpful post. Thanks a lot. Hi justin, thank you for all your insight into price action trading. Just one question, on the rising wedge chart, will it be incorrect to say that the price action printed before the rotation down can be viewed as a double top. thanks once again. You’re welcome. I wouldn’t call it a double top as the two intraday swing highs are too close together, at least for my liking. Usually, there’s a decent amount of space between the two swing highs that form a double top. Good article! Thanks, Justin! You’re welcome, Dan. What do you think about the possible head and shoulders on the gbpnzd pair?

thanks justin for guiding us. plz can u guide me my question is What should we do when big news is coming up while my trade is going on. i am afraid that it will hit my stop loss. sir, when market breaks the channel. wedges, double bottoms etc. sometimes it retests. sometimes it is not. so how i get in to the trade accordingly? You have to experiment with both. Personally, I wait for the retest. I’d rather secure a favorable riskreward ratio even if it means possibly missing out on the trade. Can you explain to me why no one teaches day trading? I know some people make a lot of money that way, and not everyone wants to swing or position trade. Hi Justin, I observe you arent using moving average. Do you have an article that explains why is that so? I appreciate your response. Thanks ?? very very nice post. Hi Justin, I’ve watching Eurusd, and xauusd from Early 2017.

For me, both pairs kind of creating head and shoulder. But you don’t say anything bout this on your weekly analysis. Would you like to tell me why they are not valid h& s pattern? Thanks in advance. How do you deal with economic news releases? Hola justin jenntte. fx Buenas noche Escribir programas justin. To someone who is really enthusiastic to learn free lessons brought on this site can ultimately change one’s trading. personally I startrd to follow this site from 2016 and since then my trading improved so massively. I fell in love with channels wow ! They pay likecrazy once you master and follow the. Methodology.

Thanks Justin for opening a new trading dynamic that improved my trading. Scalping or swing trading - which one pays more. Thanks i hope you want to help people especial the new coming like me. I learn many thing from you. and am still want to learn more. You are a great mentor Justine. God Bless you and more power. Knowledge is power. Thus, please continue sharing your knowledge to those interested in learning forex trading. A million thanks. what a great piece of advice — pick one or two signals————.GREAT. Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.

Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to BuySell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Copyright 2018 by Daily Price Action, LLC. Please log in again. The login page will open in a new window. After logging in you can close it and return to this page. Buy the Higher Low and Sell the Lower High.

by Tyler Yell, CMT , Forex Trading Instructor. Position Trading based on technical set ups, Risk Management & Trader Psychology. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly. You are subscribed to Tyler Yell. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. Article Summary: Trading in the direction of the trend and buying low while selling high are mutually exclusive.

Because we recommend you locate the direction of the trend and find a good entry, DailyFX has a new concept for you to consider. Buy the higher low and sell the lower high. This article will provide you with methods to do just that to prevent you from catching a falling knife. If you’ve ever heard a trader say that price can’t possibly go any lower, chances are they haven’t been trading for long. That’s not meant to be harsh but simply to say, no trader knows the future . What traders can do is recognize that patterns tend to play out and repeat over and over again which can lead to higher probability entries. Learn Forex: Buy Low & Sell High Is Cute But Ineffective. Chart Created by Tyler Yell, CMT. One of the principles of every trader who enters an order, whether long or short is that they believe they’ve entered at a good price in relation to where they expect the market to go. One trader will be right and the other will be wrong if they entered at the same price with similar stops and limits. While there is no guarantee which trader will be profitable and which won’t, there are some things we can do to put the odds in our favor. Learn Forex: Buy the Higher Low with Bullish Trend Lines or Rising Channels.

Chart Created by Tyler Yell, CMT. Learn Forex: Sell the Lower High with Bearish Trend Lines or Falling Channels. Chart Created by Tyler Yell, CMT. Methods to Help Prevent Buying a Low Before It Goes Lower. As stated at the beginning of the article, there is no crystal ball or Holy Grail. However, there are methods that you can use to stay on the likely right side of the big moves . The three methods we’re going to look at are pivot lines to identify support and resistance , RSI to understand directional strength, and trendlines or directional channels. The purpose of these three methods is to help you avoid buying something that’s falling. On the other hand, selling something just because it’s rising can become a fool’s game as well. That’s why studying price action can give a big leg over investors or traders who feel pr ice “can’t go any lower”, which has been the rallying cry of many losing trades. Pivot Lines for Support & Resistance. Pivot Lines are a leading indicator of sort. In short, Pivot Lines are a famous indicator to help you forecast likely future points of resistance and support to limit risk and find profit targets. Rising Pivot levels overtime can help you find a significant higher low to enter a buy trade or lower high to enter a sell trade on. Learn Forex: Pivots Clearly Paint Dynamic Levels of Rising Support for Entries Zones. Chart Created by Tyler Yell, CMT. Knowing that the Holy Grail doesn’t exist, Pivots are a helpful way to get a feel for the directional bias. Combining pivots lines with candlestick analysis is a preferred method of many traders to find strong entries with the trend. A short cut for new traders looking at price action is to fade long wicks (highlighted above) against the trend as they likely are a rejection of a price test and often end up carrying back price in the direction of the trend.

Relative Strength Index (RSI) for Directional Strength. The Relative Strength Index is the utility knife of many traders. When the RSI crosses an extreme level and is making directional moves higher or lower, traders can look for strong entries that favor the RSI bias. One simple way to find a directional bias on RSI is to add a moving average or trendline to the RSI and find bounces off support or breakouts of the RSI for a high probability entry. Learn Forex: RSI with Moving Average Added For Directional Bias. Chart Created by Trading Central. Rising or Falling Trendlines or Channels. Trendlines and channels are nice and simple. The value of a trendline or channel is increased every time it is tested. When markets are moving higher a trendline is a form of support that can be used to identify buying opportunities.

When markets are moving lower, a trendline is a form of resistance that can be used to identify selling opportunities. The purpose of this article is to help you understand that buying low and selling high is not a given trading system. You may be buying something that’s about to go a lot lower or selling something before it skyrockets. Because price is the ultimate indicator, trendlines or channels can help you pinpoint a higher probability entry as opposed to a cheap entry which could end up costing you a lot if it continues to move against you. Learn Forex: There Is No Guarantee you’ll get the Lower High You Want. Chart Created by Tyler Yell, CMT. Finding a directional bias through the methods above can help you pinpoint entries . There is nothing wrong with buying a low or selling a high as long as it’s in the direction of the prevailing trend. Trading against the prevailing trend is often more trouble than it’s worth so we recommend identifying the trend and then entering on opportunities with the trend. ---Written by Tyler Yell, CMT. Trading Instructor Currency Analyst. Market highs and lows can be difficult to navigate and require a plan such as the one described in the article. To understand what makes traders succeed with their strategies, check out the Top Trading Lessons guide that puts together some of the key lessons our analysts have learned over the years in the markets. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. SELECT PRODUCT & Currency. Select the delivery city, currency type and amount. Enter traveller details and complete your order. MAKE PARTIAL OR FULL PAYMENT.

Select payment mode and make payment. Track your order from the time it is placed till doorstep delivery branch pickup. Whether you are planning a trip or just returned from one, we’re here to handle your currency woes. Get access to the best rates for buying and selling foreign currency, both in form of notes & forex card. Now international remittances are easier than ever. Send money to your loved ones abroad with the click of a button. A perfect solution for all your forex needs. Travel carefree without worrying about running out of cash! Inside BestPriceForex. Fast Nationwide Forex Delivery. Best Forex Rates in Ahmedabad | Best Forex Rates in Ambala | Best Forex Rates in Amritsar | Best Forex Rates in Bangalore | Best Forex Rates in Chandigarh | Best Forex Rates in Chennai | Best Forex Rates in Delhi | Best Forex Rates in Gorakhpur | Best Forex Rates in Gurdaspur | Best Forex Rates in Gurugram | Best Forex Rates in Hoshiarpur | Best Forex Rates in Hyderabad | Best Forex Rates in Jaipur | Best Forex Rates in Jalandhar | Best Forex Rates in Kanpur | Best Forex Rates in Karnal | Best Forex Rates in Kolkata | Best Forex Rates in Lucknow | Best Forex Rates in Ludhiana | Best Forex Rates in Moga | Best Forex Rates in Mumbai | Best Forex Rates in Nawanshahar | Best Forex Rates in New Delhi | Best Forex Rates in Noida | Best Forex Rates in Panipat | Best Forex Rates in Pathankot | Best Forex Rates in Patiala | Best Forex Rates in Phagwara | Best Forex Rates in Siwan | Best Forex Rates in Tanda. Best Currency Exchange Rates. AED Exchange Rate | AUD Exchange Rate | CAD Exchange Rate | CHF Exchange Rate | CNY Exchange Rate | DKK Exchange Rate | EUR Exchange Rate | GBP Exchange Rate | HKD Exchange Rate | JPY Exchange Rate | MYR Exchange Rate | NOK Exchange Rate | NZD Exchange Rate | SAR Exchange Rate | SEK Exchange Rate | SGD Exchange Rate | THB Exchange Rate | USD Exchange Rate | ZAR Exchange Rate. Understanding Lot Sizes & Margin Requirements when Trading Forex.

Historically, currencies were traded in specific amounts called lots. The standard size for a lot is 100,000 units. There are also mini-lots of 10,000 and micro-lots of 1,000. To take advantage of relatively small moves in the exchange rates of currency, we need to trade large amounts in order to see any significant profit (or loss). As we have already discussed in our previous article, currency movements are measured in pips and depending on our lot size a pip movement will have a different monetary value. So looking at an order window below we see that we have chosen to BUY a mini-lot of 10,000 units of the EURUSD. So what we are effectively doing is buying €10,000 worth of US Dollars at the exchange rate 1.35917. We are looking for the exchange rate to rise (i. e. the Euro to strengthen against the US Dollar) so we can close out our position for a profit. So let’s say the exchange rate moves from 1.35917 to 1.36917 – the exchange rate rose by 1c ($). This is the equivalent of 100 pips . So with a lot size 10,000, each pip movement is $1.00 profit or loss to us (10,000* 0.0001 = $1.00). As it moved upwards by 100 pips we made a profit of $100. For example’s sake, if we opened a lot size for 100,000 units we would have made a profit of $1,000. Therefore lot sizes are crucial in determining how much of a profit (or loss) we make on the exchange rate movements of currency pairs. We do not have to restrict ourselves to the historical specific amounts of standard, mini and micro. We can enter any amount we wish greater than 1,000 units. 1,000 units is the minimum position size we can open.

So for example, we can sell 28,000 units of the GBPJPY currency pair at the rate of 156.016. Each pip movement is ? 280 (28,000 * 0.01). We then take our ? 280 per pip and change it to the base currency of our account which of course our broker does automatically. So with a Euro denominated account a fall of 50 pips to 155.516 would mean a profit of 106.00 (50* 2.12). What is Leverage & Margin? Trading with leverage allows traders to enter markets that would be otherwise restricted based on their account size. Leverage allows traders to open positions for more lots, more contracts, more shares etc. than they would otherwise be able to afford. Let’s consider our broker a bank that will front us $100,000 to buy or sell a currency pair. To gain access to these funds they ask us to put down a good faith deposit of say $500 which they will hold but not necessarily keep. This is what we call our margin. For each position and instrument we open our broker will specify a required margin indicated as a percentage. Margin can therefore be considered a form of collateral for the short-term loan we take from our broker along with the actual instrument itself. For example, when trading FX pairs the margin may be 0.5% of the position size traded or 200:1 leverage. Other platforms and brokers may only require 0.25% margin or 400:1 leverage.

The margin requirement is always measured in the base currency i. e. the currency on the left of the FX pair. Let’s look at an example. Say we are using a dollar platform and we wanted to buy a micro lot (1,000 units) of the EURGBP pair and our broker was offering us 200:1 leverage or 0.5% required margin. Our broker will therefore take just €5 as margin and we were able to buy 1,000 units of the EURGBP pair. If we were using a US Dollar platform that €5 is automatically converted to dollars by our broker at the current exchange rate for the EURUSD. Another example: Say we wanted to sell 50,000 units of the USD JPY and we are using a Euro platform and our broker was offering us 400:1 leverage or 0.25% required margin. Our broker will therefore take $125 from our balance as our margin requirement and we are able to sell 50,000 units of the USDJPY. This time we are using a Euro platform so that $125 is converted to euro at the current EURUSD exchange rate. Overnight PremiumsSwaps.

When an FX position (or a CFD position) is held overnight (or ‘rolled over’) there is a charge known as a ‘swap’ or ‘overnight premium’. We call it a charge; however it is possible to earn a positive sum each night too. When trading FX, it is based on the interest rates of the currencies we are buying and selling. So for example, if we were buying the AUDCHF we would earn a positive overnight sum as we would earn interest on the Australian Dollars we bought as the Australian interest rate is higher than the Swiss interest rate (in fact the Swiss interest rate is zero). So often buying currencies against the Swiss Franc will result in a positive swap. For the most part however an overnight premium will be a charge on our account and again this relates to the size of our position. The actual percentage is very small each night as it is the annual interest rate divided by 360 (days in year). Our broker automatically calculates overnight premiums and they usually take effect after 10pm GMT. Under the trading conditions most brokers will stipulate the swap rates for a buy or sell position on each pair. We multiply this rate by our trade size and divide by 360 like the formula above to know what premium we are charged or we earn. How to buysell in Forex?

How to buysell in Forex? How to set stop loss and set take profit when buying selling in Forex? From the technical point of view, it depends on the trading platform you use. Every Forex broker will gladly give you the Forex trading Platform manual or will be able to guide you through the steps of setting buysell orders, profit targets and exits per you request. As an example, let's review the basic order setting steps at the one the most popular trading platforms - METATRADER4. On the price chart - mouse Right Click. Go to 'Trading', 'New order'. You will have a new window with order specifications. Symbol - the currency you'll be trading Volume - how many lots you'll be buying Stop loss - you need to put the price you want to be stopped at in case a trade goes against you. Take profit - your profit goal. Comment - leave it blank. Type - leave it as Instant execution. Then you have two buttons: Buy and Sell. Press one of them. Ok. You have a new trade open.

You will be able to see it on your chart and also you can check menu 'Trade', located below your chart. If you now try to Right click on this trade, you will have an option to 'Modify or Delete order', where you'll be able to change your trading preferences. 1. WHAT IF A TRADER STARTS TRADING BY BUYING AT THE LOWEST, LETS SAY, EXCHANGE RATE AND STOPS WITH THIS POSITION AT THE END OF THE DAY? IS HE CONSIDERED TO BE SUCCESSFUL OR NOT AT THE END OF THE DAY? WHAT I MEAN IS, HAS THIS POSITION TO BE FOLLOWEDCLOSED BY ANOTHER ONE IN ORDER TO REALISE A PROFIT (I. E. TO SELL AT A HIGHER LEVER RATE) OR IS THIS A "COMPLETE" ACTION BY ITS OWN? WHAT IF HE MAKES ANOTHER POSITION ANOTHER DAY (SAY, NEXT DAY)SO AS TO "COMPLETE" HIS PREVIOUS DAY'S POSITION BY SELLING AT A HIGHER EXCHANGE RATE? THANX IN ADVANCE (SORRY IF MY QUESTION IS STUPID, I HAVE NOT YET STARTED PLAYING) The best thing, of course, to get a Forex demo account and see how orders work. But, since you ave a question, let's answer it. When you buy at some price, you put so called "Buy order". This means that you now hold a currency that you bought, for example EURO. During the day the value of the currency will rise or fall. In order to realise the profits you've earned, you'd need to Close your "Buy order". On the trading platform it will simply be shown as "Close an order" or "Close a trade" etc. What actually happens, you sell a currency you bought earlier, capitalising on the changes it produced while you were holding it. It can be a day, a few hours, a few minutes, a week, a month and so on. I have asked this question before but i believe the construction of the question made me not to be understood. Please once again i want to know how i can set: stop loss, Take profit, Type(buy limit or buy stop), and At price. All these are what to fill in for a pending order to trade fundamental analysis. Please help me resolve this proplem of gap in knowledge. Just yesterday i placed a trade where i got up to 80 pips but because of difficulties of no being able to exit the trade, i lost the pips and even took some losses.

Trading without TP and SL is like a car without break. Please help. Lionel D. L (Nigeria) The exact steps of setting a stop loss, take profit etc will depend on the trading platform you use. Typically you have an option to set stop loss and take profit orders during the moment when you request to open a trade, either a market order or a limit order. In the new order window you should be able to see fields for stops and profit inputs. If you opt not to set stops and profit targets during the time when you were placing a new order, you always have an option to edit your existing order. Usually by doing Right mouse click on an existing trade line on your account you can see a menu option inviting to edit the order. Finally, you always have the third option to close the trade here and now any time. This is also done by either clicking on the open trade on the chart(if platform supports trading form the charts) or in your trade displayaccount window. Note: in most cases you won't be able to close your trades using market order (e. g. manually here and now) if you come to do it on the weekend, to be precise: from 5 pm Friday to 5 pm Sunday. 4-th option in to call you broker by phone and ask to close a trade. Also your Forex broker can always give you step-by-step explanation of how to use their trading platform and set upclose orders. i dont know when is right to place a buy or a sell pls help.

Currency trading is a speculative market. You want to buy when the currency is cheap and then sell it when it becomes more expensive. For example, buying EURUSD pair (when you buy EUR for US dollars), traders expect EUR to rise in value, because if it does, they can sell it back and receive more US dollars in return. Regarding the topic of where to find good buying and Selling opportunities, first open any free live charts of any currency pair. Take a simple look and try to anticipate the next possible move. If this makes you exited and you want to learn what evaluation methods stand behind market forecasts, you've got an exiting world of Forex which is all about how and when to buy and sell. Read just about everything you can find. Start from: forex-charts-book. com What are the best indicators one can use. Is it go to us more dan two indicators in a trade. kumba nigeria. It is impossible to name best indicators, every trader has different view of how the chart analysis should be done. The best indicator is the price itself with Support and Resistance levels. So, if you want to take a serious step towards success in trading, learn about the role of support and resistance in technical analysis. Another tool to get a good grip on is a trend line.

Learning how and when to place a trade is very essential in FX trading. However, ther are various indicators. Candlesticks, Parabolic SAR, Moving Average and RSI. Please how is it possible that the Parabolic SAR will be saying BUY while the Candlesticks are saying SELL. WHich one is more reliable. I am some how confuse about the issue of buying and selling, when you want to buy say US dollars as against Euro-EURUSD, do you click on buy or sell? Thanks. Ayegba, Nigeria. exlent! from anand India. Why do market go agaist me each time i place trade? Is it that i got it wrong or the platform owner uses some kind of soft ware agaist me? Ahmed. what is the meaning of buysell in currency pair GBPUSD can we sell currency before we buy it. by gulabsingh INDIA. How do i determine the amount of pips to allocate to my stoploss and the trailing stop control inorder to lock in profits? Paul Adenowo, Lagos Nigeria.

most of the forex indicators are just deceiving, the best thing is for you to develope your own trading strategy. Adepoju Sunday Nigeria. I honestly don't understand why people would take a loss when they can wait for the currency to rise again. Believe it or not, I had bought EURSEK and lost 167 pips. The very next day, I gained back and even made a profit of 30 pips! How do you calculate for stop loss and take profit. Yomi, Nigeria. when should we buy. i virtualy dont know anything but i wish to learn about forex trading. hassan from lagos. Hello, I am new to Forex market so naturaly I have a mass of questions but ofcourse I will set only a few :). 1. Should I always use stop and limit ? Is it more safe that way ? 2. How long should I wait to close the position ?

3. If I start with a 100EUR deposit how big my margin should be ? 4. Is it ok to close the postion if it's +4.01 to take the pf ? 5. If my trade goes against me when is the best time to stop it ? Should I give it a chance to get back on its feet and start to rise again ? Is that so huge risk ? 6. What is PIPS ? 7. Candlesticks, should I study them very well ? 8. Are there any profitable strategies or is it based only acording our own anticipation and spectulative capabilities ? Thank You very much in advance . Ivan. ive just lost 20 dollars in forex. but i will be back for revenge. hmmmm.

My brother, the good news is that i have become an authority in forex trading over the years after loosing three thousand five hundred dollars. To answer the smallest question first. If you are buying the dollar and the currency pair is eurusd, you will sell this pair. If the currency pair arrangement is usdcad and you want to buy the dollar, them you will buy the pair. It all depends on which currency comes first in the arrangement. On when to buy or sell, i must tell you that all the indicators are meant to deceive you. No broker wants you to ever make a penny in forex no matter your losses. Even the trading systems you buy is only a deal to put money in the pocket of the seller. No one will ever tell you how to trade and make a profit, except me. No one ever told me. My paid trainers never did. So i learnt through the hard way and of course, God's guidance. The only system that tells you when to buy or sell is YOU. Now dont be disappointed with my answer as i will tell you what to do. The right decision is the simplest. Now look at the chart. Is it trending upward or downward? If upward, buy ; and vice versa. Then check whether the trend started recently or will soon get to resistance level. This will guide you in taking your decision. Also check whether the chart is not trending; that is, a ranging market.

Now buy and sell between the resistance levels. Always confirm the change of direction before you do. This is the best guide you can get and it is for free. God bless us. Tolu Bamisile. 08185585307. Nigeria. I am using MT4 platform but it seems it is programmed to give me an automatic stop loss of around 100 pips. The modifydelete button never lights up if I try to type in my own stop loss figures. Sometimes the same is true of take profit. MT4 tends to force me to take its own figures. What is the explanation. I am on a demo account. Peter - Uganda. How long does a market trade last? Say I sell EuroUSD today at , how long will that order stand; days, weeks, forever?

Currently I'm trading on CNBC demo account and periodically my positions disappear, as if expiring, yet I cannot find out what the term is? Also, if I sold EuroUSD and it expires in some way, is this effectively a close that realizes my gainloss? How do I calculate stop loss and take profit when trading currencies? You assistance will be highly appreciated. How to buy and sell of the forex trades in nigeria. how do we determine profitable news? and when do we place buy and sell? do news have anything to do with current exchange rate? pls help me out. Hello I need clarity on the issue of Value of a Position. My position was opened with 25USD and at 00:01 when the position was rolled over the email said the "value of my position was 6,364USD". Does this mean if I closed my position then I would have received that amountvalue into my account? My pips were around 10USD during the rolling over. Hello I need clarity on the issue of Value of a Position.

My position was opened with 25USD and at 00:01 when the position was rolled over the email said the "value of my position was 6,364USD". Does this mean if I closed my position then I would have received that amountvalue into my account? My pips were around 10USD during the rolling over.


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