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The perfect trading system

Quoting benedetta
I had recently started the forex trading and i know technically its too complex and there requires use of some high -tech softwares and applications for the trading,so please some one can list down the required applications and also where i will get such applications.
You only need a trading platform your brokerage offers. Best "software application" is between your ears.
Everything else is "fluff"

You can try many trading platforms for free using a free demo account with fake money. Demo trading is only usefull for learning the buttons and features of the software. Its not much usefull for real trading, it misses the psychology aspect of real trading(fake money).

Try Oanda and some MT4 brokers to see the most commonly used retail trading platforms.
[quote=johto;4114090]Best "software application" is between your ears.
Everything else is "fluff"

I like that. I just set up an on line account with Oanda. Great
recommendation. There are a lot of useful tools on the site. Thanks.
Quoting k.k
HI ARTICLATE, I hope every thing is O.K with you. No news recently.
Hope to hear from you soon.

Thanks for your concern. I am very Ok. I was out of town for a programme and did not have access to internet most of the time because of the demand of the programme. I am back in town now and will post my current views of most of the major pairs. I hope you are doing well with your trading.

Enjoy the rest of the day!
Quoting k.k
HI ARTICLATE, I hope every thing is O.K with you. No news recently.
Hope to hear from you soon.

Thanks for your concern. I am very Ok. I was out of town for a programme and did not have access to internet most of the time because of the demand of the programme. I am back in town now and will post my current views of most of the major pairs. I hope you are doing well with your trading.

Enjoy the rest of the day!
Quoting Articulate
Most of the majors are at cross road at the moment. In continuation of my desire to share my views here I present my views of some of the majors today.

GBPUSD

My current view on the GBPUSD is still valid until the daily candle closes outside the box. Once that happens, the next range is clearly indicated on the chart.

Daily candle did not close outside the 1.60000 and we have double tops on both weekly, daily and H4 and the price fell to around 1.56500 (about 350 pips)

USDJPY

For the USDJPY 82.00 is the crucial...
I will post the relevant charts in support of the above analysis and my current view on the majors later.

Have a great week and enjoy your trading.
Quoting benedetta
I had recently started the forex trading and i know technically its too complex and there requires use of some high -tech softwares and applications for the trading,so please some one can list down the required applications and also where i will get such applications.
it only requires mt4. download it from here:

http://www.fxopen.com/Download.aspx?name=fx4setup.exe
This is a verry good message for the new comers especially inticating that forex trading is verry high risk business!
Quoting Articulate
[font=Tahoma]FOREX TRADING 101

INTRODUCTION


[font=Tahoma][size=3]Trading internet foreign exchange (forex) is a very high risk business. It is important to have a sound Knowledge of the operation of the forex market and the risks involved to be successful. Forex market could be likened to a mighty ocean and retail traders are small fish swimming with sharks. It is very easy for such traders to be devoured within an instant resulting in financial...
Articulate you are amazing!!! thanks for the good tips.... I am new here... at first i was soooo overwhelmed with all those advices... !!!!! but your clear vision of the idea made me sure i can figure out how does it work too thanks
Okay, let's have fun...
Trading forex is all about knowledge and a deep understanding of the market. What I want to share today is an interesting development on EURUSD concerning the interplay between fundamental and technical analysis. The big players are getting set for a crucial decision on EURUSD just like in February 2010.

If you look at the weekly charts, you will observed that for three straight weeks price opened and closed almost at exact points, thus forming three stars. A star on the weekly chart is a sign of expectation, a tug of war between big players. Where you have three stars, is an indication that something very big is about to happen. What is about to happen? We may not know it, but a review of the past will give us an indication.

Now, let us look at the past. If you look carefully at the weekly chart, you will notice a similar three stars in February this year. That was the period when there was serious concern about the economy of EU countries. Specifically, the debt situation in Greece and other EU countries. At that period the technical analysis on the daily, weekly indicated that the price had reached the bottom and was ready for a reverse from around 1.35000 after falling a by over 1,000 pips from 1.510000. The To the surprise of most traders, the fear about the economic conditions of most European countries, represented by fundamental analyis carried the day. EURUSD fell to its lowest point at 1.18757 which was an additional 1545 thus making a total of about 3224 pips from its highest point in November 2009.

Now,to the present the weekly and daily clearly RIS indicate that EURUSD that around 1.40000 is the peak and that the pair is due for a reverse. However, there is fear about the state of the US economy, the apparent failure of the economic stimulus package, possible weakening of Democrats by the mid-term elections, the price of gold etc. These fears are indicated by the three weekly stars and the Euro appears a better alternative to the big players. In the light of this, the big players are most likely ready to push the pair up to 1.60000 or a trip back to 1.18757. The decision is theirs. The best option for a retail trader is to follow them. We are currently at a cross-road.

The monthly RSI points to the possibility as it indicates that the price is the middle of the monthly RSI, just like it showed in February 2010. A break out of the blue box will show us the decisions of the big boys. As usual a weekly candle below or above is a signal. This is the big picture. Relevant charts are attached.

For daily players, the blue box (1.37000 - 1.41000) is your playground for now, follow the daily candle for direction, H4 for trade signals and M15 for entries.
Attached Images (click to enlarge)
Click to Enlarge Name: 555 - eurusd weekly - c3.gif Size: 18 KB Click to Enlarge Name: 555 - eurusd weekly - c2.gif Size: 19 KB Click to Enlarge Name: 555 - eurusd daily - c4.gif Size: 18 KB Click to Enlarge Name: 555 - eurusd h4 - c4.gif Size: 18 KB
Click to Enlarge Name: 555 - eurusd m15 - c4.gif Size: 21 KB
i have not been ble to post for sometimes now because of my other commitments. But if you read my previous postings carefully you must have observed that most of my longterm views are usually valid for some few months.
GBPUSD
For GBPUSD I identified double tops around 1.60000 on three time frames and the price fell by about 350 pips. I also mentioned that if the daily closed above 1.60000 the next range is between 1.60000 and 1.64000
GBPUSD has since then established a 300-pips concrete area between 1.60000 and 1.63000. That is the range for now. 1.63000 is the gateway to the north i.e. 1.70000 area. It is very strong psychological area for both north and southward movements. This is an area to watch. If price successful break it then 1.63000 – 1.70000 is the next target. However, if price fails to break the barrier, then we are going back to 1.60000 Remember 1.63000 is the gateway to the north and 1.60000 is the gateway back to the south. Price is currently in the middle of this channel.
For short term trades, we are in the middle of a channel. If you miss the trade when the price fell to around 1.59600, the best option is to wait for another signal on H4. A daily open or close above the current range (1.60000 – 1.63000) will signify the next direction.
For long term trades, 1.63000 and 1.60000 are the areas to watch out for to either go long or short.
Attached Images (click to enlarge)
Click to Enlarge Name: 7 - gbpusd currend daily.gif Size: 17 KB Click to Enlarge Name: 7 - gbpusd currend h4.gif Size: 16 KB Click to Enlarge Name: 7 - gbpusd currend m15.gif Size: 20 KB
AUDUSD
I mentioned in my previous postings that parity 1.00000 area was a good place to start shorting AUDUSD. When the price got to to that impotant psychological level, it acted as a resistance and price fell by about 350 pips to 0.9650 area before continuing its upward movement helped by the price of gold and relative weakness of the dollar.
AUDUSD is currently trading within about 200 pips range with the support slightly above 1.0000 area and the resistance around 1.02000. The daily is at the borderline now as it is threatening to go back to 1.00000 – 1.95000 area.
For short term trades, the signals are not clear now, as we need to break out of 1.00240 and 1.00750 range to establish a clear direction. As usual our guide is the daily, we need the daily candle to open and close outside or within any of the above range to signal the direction. Once the direction is established, H4 will provide the signal and M15 for entry as usual.
For long term trades, the trend is still up, but weekly and daily RSI are clearly indicating that we are at the very top. My advise for both longterm and shortterm traders is to short new highs on H4 chart.
The best option for a wise trade is to wait for clear signal.
Attached Images (click to enlarge)
Click to Enlarge Name: 7 - aud currend monthly.gif Size: 11 KB Click to Enlarge Name: 7 - aud currend weekly.gif Size: 12 KB
USDJPY

I mentioned in my last posting that 82.00 is the crucial point at the moment. The support failed and the price fell to 80.00. 80.00 zone appears to be the bottom now. The currency is making a steady climb to the top and oscillating between 80.00 and 82.78.
For short term trades our concrete zone for now is 80.00 – 83.00 price level, a daily open and close outside this box is an indication that the zone is no longer valid. The current sentiment is that USDJPY is closer to the bottom. Therefore the less risky trade is to look for opportunity to go long whenever H4 gives the signal using M15 for entry.
For long term trades, the most profitable trade is to go long at points closer to the bottom 80.00. A daily and weekly close above 83.00 signifies continuation of the bullish run with 86.00 area being the next major resistance area.
Attached Images (click to enlarge)
Click to Enlarge Name: 7 - usdjpy monthly.gif Size: 16 KB Click to Enlarge Name: 7 - usdjpy weekly.gif Size: 15 KB Click to Enlarge Name: 7 - usdjpy day.gif Size: 16 KB Click to Enlarge Name: 7 - usdjpy h4.gif Size: 19 KB
USDCAD

USDCAD is current creating a round bottom 0.99730. A touch of 0.99600 is possible to create a double bottom on the daily chart. Once the bottom is fully established 1.03240 is the first resistance on the way to 1.06000 area and above. If the bottom fails, then a fall to 0.93000 is possible to form double bottom on the weekly chart.
The current concrete zones for now is 0.99700 – 1.03240 with a minor resistance at 1.01440. These are the areas to watch out for.
For short term trades H4 is still valid for signal and M15 for entry. Currently, the signal for long was given around 0.99700 area and short most likely between 0.01440 – 0.02000 areas.
Attached Images (click to enlarge)
Click to Enlarge Name: 7 - usdcad currend monthly.gif Size: 15 KB Click to Enlarge Name: 7 - usdcad currend weekly.gif Size: 17 KB Click to Enlarge Name: 7 - usdcad currend daily.gif Size: 21 KB Click to Enlarge Name: 7 - usdcad - h4.gif Size: 19 KB
GBPJPY

I mentioned earlier that GBPJPY was threatening 127.00 area. Price actually touched 126.00 for 900 pips fall from the highest level of 135.00 when BOJ intervened. At 126.00 price complete the 2nd leg of the earlier fall from 145.00
GBPJPY has now moved by 600 pips from 126.00 to 133.00. The current trend is up and dragon is known for between 900-1000 pips movement and in order to complete its current move price might reach 136-136 area in the first leg and up to 145 to create a double top at 145. It is usually difficult to establish concrete zone for the dragon because of its unusual movement but the critical support and resistance area for the pair are as follows:

117 is where the fall the second leg of the fall from 250 is expected to form.
123 is the next floor being anticipated
126 is the floor for now
130 is the first major resistance
135 -136 is the next major resistance
139-140 is an historical concrete area on the way up and down
145 is a next major resistance
149 -150 is the next major resistance

If you are trading GBPJPY you should expect every major move to be around 1000 pips broken into about 500 pips each. The areas highlighted above are where to look out for. Trading dragon is very risky and you need to be aware of this fact to be successful. Carefully study the major areas of resistance and support.
For short term trades H4 is still valid for signal and M15 for entry. Currently, the signal for long was given around 130 area and short around 133.00 area.
Attached Images (click to enlarge)
Click to Enlarge Name: 7 - gbpjpy currend monthly.gif Size: 14 KB Click to Enlarge Name: 7 - gbpjpy currend weekly.gif Size: 18 KB Click to Enlarge Name: 7 - gbpjpy- current daily candle.gif Size: 15 KB Click to Enlarge Name: 7 - gbpjpy currend h4.gif Size: 20 KB
Quoting Articulate
Look at the attached chart, the points marked in alphabets on RSI are the 1st class trade areas, because the signals to sell are given around 70 area and signals to buy around 30 level area.

Secondly you will observe that when H4 gives signals to sell around 70 level area there are usually about 4-5 or more bullish candles followed by a bearish (reversal) candle. For signal to buy 4-5 or more bearish candles followd by a bearish (reversal) candle.

Thirdly, the points marked in numbers 1-5 are second class signals and meant for experience traders....
Hi Articulate. From the chart, I still don't see quite clearly the signal yet. By the time you see the reversal candle on H4, the wave has already ended. For example, at point B the red candle following the blue candle is the reversal candle? Or at point D, the blue candle following the red candle is the reversal candle? Do you usually get in action on the reversal candle or the following candles?

BTW, can you elaborate your entry point on M15?
whats the point of or positng in this thread....... If your are that smart at trading; make a lot of money and get rich and go buy an island or something. Just cant figure out the lectoring
Quoting Articulate
You are free to share your ideas here, but I have strong doubt on the feasibility of turning $1,000 to $10,000 in a year. Its up to you to erase this doubt.

For extra safety I suggest starting with 1500 although it would be possible with 1000 as well, just a shade more risky at times.

Starting out first month trading micro lots. 10 cent a pip.

1500 + 300 = 1800
1800 + 300 = 2100
2100 + 300 = 2400
2400 + 300 = 2700

Trade 2 micro 20 cent a pip

2700 + 600 = 3300
3300 + 600 = 3900
3900 + 600 = 4500

Trade 3 micro 30 cent a pip

4500 + 900 = 5400
5400 + 900 = 6300

Trade 4 micro 40 cent a pip

6300 + 1200 = 7500

Trade 5 micro 50 cent a pip

7500 + 1500 = 9000

Trade 6 micro 60 cent a pip

9000 + 1800 = 10800


1500 to 10,800 in one year. All you need is consistancy.
  • Post #178
  • Quote
  • Edited at 11:42am Nov 24, 2010 11:18am | Edited at 11:42am
Quoting Qfx
Hi Articulate. From the chart, I still don't see quite clearly the signal yet. By the time you see the reversal candle on H4, the wave has already ended. For example, at point B the red candle following the blue candle is the reversal candle? Or at point D, the blue candle following the red candle is the reversal candle? Do you usually get in action on the reversal candle or the following candles?

BTW, can you elaborate your entry point on M15?

You need to read carefully my previous postings for proper understanding of my trading technique. The postings are related. I will simplify the explanation by enumerating the steps here.

1. If the price is falling on H4 chart, wait until the price touch RSI 30 area for reversal signal.

2. If the RSI touch 30 level and H4 candle is still bearish, the signal to buy has not been given.

3. When the H4 candle changed to bullish around 30 point level, that is the first signal of a change in direction.

4. Go to your M15 chart to see if there is a reversal candle around 30 point level for entry. If there is a reversal candle n or below 30 point level, that is a valid signal for entry.

5. A more cautious approach is to wait for the the second bullish H4 candle and M15 RSI on or below 30 point level.

6. You can take or lock your profit when M15 reaches 70 point level, or when H4 reaches 50 point level or at any level you are comfortable with.

7. The price can oscillate around your entry level, do not panic and close your trade. You should be ready to allow the trade to mature. On a good day, you can meet your target with 4 hours. However, on a slow day, you might need between 4-8 H4 candles to reach you target.

8. The 50 point level on M15 will give you early signal whenever a move is getting weak. Once you see M15 candles crawling along that level, take whatever profit you have, lock your profit by shifting your stop loss to that area.

9. You need to use this strategy in conjuction with the money managemeent recommended e.g. 0.01 to 0.10 lot size for $1000 account; 0.10 to 1.00 lot size for $10,000 account, etc.

10. If you are new start from the minimum or something close to the minimum recommended lot size. You can use the maximum or even more as you improving in your trades

11. Using the strategy in conjunction with concrete zone will guarantee more success.

I attach relevant current charts to clearly illustrate the issues raised above.

Have a great day!
Attached Images (click to enlarge)
Click to Enlarge Name: 1a - gbp daily.gif Size: 18 KB Click to Enlarge Name: 1a - gbp h4.gif Size: 17 KB Click to Enlarge Name: 1a - gbp m15.gif Size: 16 KB
Quoting 4XWeezal
whats the point of or positng in this thread....... If your are that smart at trading; make a lot of money and get rich and go buy an island or something. Just cant figure out the lectoring
Posting is just a way of nurturing and developing my ideas, exposing them for the benefits and scrutiny by others, improving them and keeping them for futrue references. Naturally, I love sharing my ideas with others, that way I can ensue constant improvement. Forex is only one aspect of my investment porfolio and do other things. One of the purpose of this thread is to also have reference materials for the benefits of those working with me and the people I am mentoring. Afterall, what is the benefit of life if you cannot have positive impact on others.

I hope you can now understand my motive better.
Quoting pip_seeker
For extra safety I suggest starting with 1500 although it would be possible with 1000 as well, just a shade more risky at times.

Starting out first month trading micro lots. 10 cent a pip.

1500 + 300 = 1800
1800 + 300 = 2100
2100 + 300 = 2400
2400 + 300 = 2700

Trade 2 micro 20 cent a pip

2700 + 600 = 3300
3300 + 600 = 3900
3900 + 600 = 4500

Trade 3 micro 30 cent a pip

4500 + 900 = 5400
5400 + 900 = 6300

Trade 4 micro 40 cent a pip

6300 + 1200 = 7500

Trade 5 micro 50 cent a pip

7500 + 1500 = 9000

Trade 6 micro 60 cent a pip...
You posting made everything appear so easy. If you actually trade forex, you will know that price movement is not that straightforward. There are times when you have to wait for three days to get 100 pips. Fox example GBPUSD has been moving between 1.57820 and 1.57320 (50 pips) for the past 14 H4 candles (14 x 4 = 56 hours). I am still of the view that $1500 to $10800 is a little over ambitious. I agree it is possible to make 100% return a month, but the big question is "Is such return sustainable?" My posting is not to condemn your strategy, because the best strategy in forex is the one you developed on your own. Don't rely on others because you will bear the brunt/gains of your actions. Having said this, if this strategy work for you, I wish you all the best.

Let me re-emphasise that the purpose of this threat is to give readers sustainable, realistic and enduring ideas. Furthermore, this thread is not for those who are looking for get-rich-quick systems. What I normally advocate is a return of between 5-10% per month for beginners and increasing their rate of return over time. Improvement over a period of time is what I consider sustainable.

The above notwithstanding, you are free to share your ideas here!
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