Saturday, June 21, 2008

Why I Like forex pivot points

Forex Enterprise - A Full Review


A new marketing course to hit the internet by Nick Marks that advertises earnings of $1000 a day and $30,000 a month respectively. This turnkey system generating multiple streams of income is relatively new and so it is my pleasure to review it for you.

After purchasing you are given a login page where you are introduced to the system which is in website format. Everything is easy to access and well organized.

After Nick gives you a little pep talk about positive thinking and goal setting, you will be introduced to his first recommendation: join Coastal Vacations. While not a part of his main Forex system this is a recommendation I could've done without.

In the pay per click section you are given a large list of keywords that Nick found convert really well with his system. Some of the keywords in the list have bid prices already attached to them so you can get front page exposure.

The course also has $50 in free adwords credit that unfortunately only works with new accounts so I was out of luck. If you don't already have an account this is worth the price of the course alone.

The forex course shows you some inexpensive traffic methods and provides links to these sources. He also covers stuff like pop-over ads, e-mail lists and autoresponders. Not bad information by any means, and is an alternative to pay per click advertising if you have a smaller budget.

He has an ebook package that seemed like it was going to be really cool as there were dozens of bonus ebooks and software programs covering everything from creating ebooks and website templates, to getting top positions in the major search engines.

As I took a closer look at this package I realized there were some bargain bin informational products included. However, there were also alot of goodies in there as well that I found rather useful. You get so many ebooks and software in here that it really is worth far more than the price of the course.

There is a section on becoming an Ebay power seller in 90 days that goes into a fair amount of detail and wasn't bad. However, Ebay isn't something I have ever been particularly interested in doing. There is also a section on baccarat strategies that I had no interest in.

One of the last sections of his course introduces you to e-currency exchanging using the DXINONE system. It is a great way to acquaint yourself with this increasingly popular opportunity without having to buy standalone e-currency courses which can cost a couple hundred dollars.

The author has combined several effective ways to earn money online and rolled them all into one course. While I didn't jump up and down about all of his strategies, the free ebooks, software, and adwords credit make Forex Enterprise worth the money.




My forex trading Reviews

Day Trading Forex Market Behaviour


Technology advances like the internet have spawned a new craze, where anyone with a secure internet connection prepared to undertake a small amount of training can engage in trading foreign exchange on the forex market.



Just as a day trader will closely track stock price movements on the Dow Jones Industrial Average, all over the world forex traders monitor currency fluctuations in a similar fashion.



Forex traders have the aim of using the smallest amount of one currency, say the US dollar, to purchase another currency like the British Pound. If supply of the pound lessens in a busy market, it will cost more dollars to buy pounds, and the forex trader hopes to sell their pounds at a higher than their purchase price. In many respects, this type of trading behaviour is very similar to trading in stocks, where the aim of nearly all traders is to buy low and sell high.



The trading process works under a bid/ask system. In the above example, a forex trader might bid 10 dollars in return for 5.7 British pounds, and the seller of the pounds could be asking 11 dollars for the same amount of pounds. If the seller accepts the bid, the trader then hopes the pound continues to increase in price, so that when time comes to sell, they can get in excess of the 10 dollars initially paid.



As only registered traders have access to this auction process, most online speculators will trade through a bank or broking house. Such brokerages charge a commission for facilitating the trades, and forex traders should consider these transaction costs when calculating their selling offer when time comes to exit their position, as this will influence their profit margin.



The global foreign exchange market can trade in excess of a trillion dollars a day. Sheer market size means there is considerable money to be made, and lost, through miscalculation. It is neither a guaranteed, nor easy path to riches, so traders should be educated in how to play the market. Instructional packages are available, and should be carefully reviewed as they can easily range in quality and price.


About the Author: Jay Moncliff is the founder of http://www.forexadvise.info a website specialized on Forex, resources and articles. This site provides updated information on Forex. For more info on Forex visit: http://www.forexadvise.info



Pivot Points in Forex: Mapping your Time Frame



It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade.


Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action.


As a definition, a pivot point is a turning point or condition. The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from "bull" to "bear" or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can't break the pivot point, a possible bounce from it is plausible.


Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well.


Pivot Points


In a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa.

Why PP work?
They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.


Calculating pivot points
There are several ways to arrive to the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).


Pivot point (PP) = (High + Low + Close) / 3


Take for instance the following EUR/USD information from the previous session:


Open: 1.2386
High: 1.2474
Low: 1.2376
Close: 1.2458


The PP would be,
PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439


What does this number tell us?
It simply tells us that if the market is trading above 1.2439, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session.


Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the times that produce more accurate predictions is taking the open at 00:00 GMT and the close at 23:59 GMT.


Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference.


Support 1 (S1) = (PP * 2) - H
Resistance 1 (R1) = (PP * 2) - L
Support 2 (S2) = PP - (R1 - S1)
Resistance 2 (R2) = PP + (R1 - S1)


Where , H is the High of the previous period and L is the low of the previous period


Continuing with the example above, PP = 1.2439


S1 = (1.2439 * 2) - 1.2474 = 1.2404
R1 = (1.2439 * 2) - 1.2376 = 1.2502
R2 = 1.2439 + (1.2636 - 1.2537) = 1.2537
S2 = 1.2439 - (1.2636 - 1.2537) = 1.2537


These levels are supposed to mark support and resistance levels for the current session.


On the example above, the PP was calculated using information of the previous session (previous day.) This way we could see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point in a weekly or monthly basis is mostly used by long term traders, but it can also be used by short time traders, it gives us a good idea about the longer term trend.


S1, S2, R1 AND R2...? An Objective Alternative


As already stated, the pivot point zone is a well-known technique and it works simply because many traders and investors use and trust it. But what about the other support and resistance zones (S1, S2, R1 and R2,) to forecast a support or resistance level with some mathematical formula is somehow subjective. It is hard to rely on them blindly just because the formula popped out that level. For this reason, we have created an alternative way to map our time frame, simpler but more objective and effective.


We calculate the pivot point as showed before. But our support and resistance levels are drawn in a different way. We take the previous session high and low, and draw those levels on today's chart. The same is done with the session before the previous session. So, we will have our PP and four more important levels drawn in our chart.


LOPS1, low of the previous session.
HOPS1, high of the previous session.
LOPS2, low of the session before the previous session.
HOPS2, high of the session before the previous session.
PP, pivot point.


These levels will tell us the strength of the market at any given moment. If the market is trading above the PP, then the market is considered in a possible uptrend. If the market is trading above HOPS1 or HOPS2, then the market is in an uptrend, and we only take long positions. If the market is trading below the PP then the market is considered in a possible downtrend. If the market is trading below LOPS1 or LOPS2, then the market is in a downtrend, and we should only consider short trades.


The psychology behind this approach is simple. We know that for some reason the market stopped there from going higher/lower the previous session, or the session before that. We don't know the reason, and we don't need to know it. We only know the fact: the market reversed at that level. We also know that traders and investors have memories, they do remember that the price stopped there before, and the odds are that the market reverses from there again (maybe because the same reason, and maybe not) or at least find some support or resistance at these levels.


What is important about his approach is that support and resistance levels are measured objectively; they aren't just a level derived from a mathematical formula, the price reversed there before so these levels have a higher probability of being effective.


Our mapping method works on both market conditions, when trending and on sideways conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets it shows us possible reversal levels.


How we use our mapping method?
We at StraightForex (www.straightforex.com) use the mapping method in three different ways: as a trend identification (measure of the strength of the trend), a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio (RR) of any given trade based on where the is the market relative to the previous session.

About the Author


Raul Lopez is the founder of www.straightforex.com A site dedicated to provide high quality training for Forex traders.

Three Reasons Why Forex Trading Is Great.



As a Forex trader you will always be attempting to make more profits than losses from the fluctuations of exchange rates between currencies in the forex market; in short, this is what is called forex trading. The good news is that nobody is going to ask you for a diploma, or somehow verify the amount of hours you've spent studying the foreign exchange market (FOREX). All you need is the proper training and the tools that will help you become a profitable trader. But this is not the only advantage you get when trading forex, compared to other ways of investment and speculation as stocks. You have a other great advantages that will make you decide for forex and forget about stocks and commodities.

1): There will Never be a Bear Market in FOREX.


You can have access to a mutually-inclusive (two-way) exchange of world currencies. In other words; currencies trade in "pairs"(for example, US dollar vs. yen or US dollar vs. Euro), one side of every currency pair is constantly moving (up or down) in relation to the other one. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value while the other will decrease proportionally. It is up to you to choose the correct currency to be long or short. Since currency trading always involves buying one currency and selling another, it all means that you have equal potential for profits in both a rising or falling market.



2): Trade with High Leverage - up to 200:1 Leverage.


Every trader participating in the forex market is allowed to trade foreign currencies on a high leverage basis - up to 200 times your investment with some brokers. This is primarily attributed to the higher levels of liquidity within the currency markets. Standard 100,000-unit currency lots can be traded with as little as 1% margin, or $1,000, which is a pretty nice feature of forex. Mini Forex accounts are permitted to trade with just 0.5% margin -- in other words, just $50 allows you to control a 10,000-unit currency position. Futures traders, who are asked for margin requirements generally equal to 5%-8% of the total contract value, will immediately appreciate that the FOREX market provides much greater leverage; and stock traders, who must post at least 50% margin, may think they are dreaming.


3): Most Price Movements Are Highly Predictable.


Many times currency prices in the forex market may be volatile, but they have the great advantage that generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the "technical" methods and strategies.


Unlike stocks that sometimes seem to simple lay down in narrow price alleys, currencies rarely spend much time in tight trading ranges and have the tendency to develop strong trends. It is known that over 80% of the trading volume in forex is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, which provide for multiple opportunities to enter and exit trading positions.

About the Author


Adrian Pablo is a freelance writer with articles published in a number of places. Get a free report onFibonacci Tradingand learn more about the world of trading , visit the website:
http://www.1-forex.com

Forex Trading: Margin Usage and Introduction to Hedging



A good rule of thumb for either a mini-account or standard forex account, is to limit your margin usage for each trade to 5% - 10% of your usable margin.


As an example, if your usable margin is $5000, to trade safely, limit your margin usage for each trade to a maximum of $250. This means trading only 1 full lot for each trade. This is assuming that you are trading in a CMS Universal account with 400:1 margin. Your use of margin is increased with a smaller ratio, as most other brokerages only offer a smaller ratio, normally 200:1 or even 100:1.


As your account grows and your usable margin grows, you can increase your margin usage and trade bigger mini or full lot sizes. If you lose money and your account shrinks, drop your margin usage back down to smaller sizes. You need to learn to keep your eye on your usable margin, especially if you've suffered some losses.


Protect your usable Margin by not having more than 2 open hedged or unhedged position at any one time. Your usable margin & equity will get eaten up by un-hedged open positions that go bad in the wrong direction...this is a really good reason why you want to use stops, and if
you hedge, hedge tightly.


IMPORTANT: Don't just keep putting on positions because you think it's a good opportunity. First sell a position and book some usable margin before you put on another position.


NOTE: Hedging does not use up more margin! Use it to protect your equity & usable margin, esp. in an emergency situation!


If you break the hedging rules, and your positions go against you and you aren't properly hedged with stop losses, you'll quickly see your usable margin degrade.
If it degrades enough so that your usable margin goes into the negative, you'll get a margin call. This means that the operators will automatically start selling some of your lots in your oldest losing positions in order to beef up your usable margin. This makes your unrealized loss become a realized loss...and the money is gone from your account.


If you lose too much useable margin, they won't even let you trade in your account, the message they'll give you when you try to put on a new trade is, 'Account in Untradeable Condition'.


If this happens, you might have an open position that needs to be hedged immediately or you might need to sell an old position. Or you might need to deposit more money into your account. Then you can start trading smaller lots to win back some usable margin.


You can lose your entire account balance if you're not careful. One other good thing about forex trading is that you will never lose more money than is in your account, you won't have to sell your house if you get a margin call! Stick to the rules above and this won't happen to you. You'll make more money than you thought possible and without the stress of loss.

About the Author


Cynthia Macy is co-author of 'The Day Trade Forex System: The Ultimate Step-By-Step Guide To Online Currency Trading'.
http://www.daytrade-forex.com
http://www.successtrading2000.com http://www.professionalforextradingonline.info
http://www.shorterminvestingsite.com

forex enterprise Information

Best Forex Trading Education


A qualified day trader will concentrate on the trade entry points as well as on the trade exit points. Market professionals have the same opinion that instability is unquestionably a plus for the day-trader. As the prices go up and down, the Forex day trader should be watchful as to when to sell his cash, stocks and currency or wait for the moment to hold on it.

Do not trust advertising claims that promise fast and guaranteed profits from day trading. As a trader you will most likely fall into two most important categories - traders who like to trade the breakout and traders who like to enter the trend once established. Not all stocks are appropriate for Forex day trading.

A beginner day trader should typically have day trading capital of at least $20,000 to begin, so this is not a business to embark on lightly. People who carry out day trading typically stay glued in front of their computer and watching which stocks have a quick turnover. If you are afraid that you will lose money, then maybe Forex day trading is not for you.

Expert day traders recognize that lots of their trades will fail to meet the initial goal. People who try to day trade without knowledge of market basics frequently end up losing money.

Can Forex day trading be learned? Day trading is equal to gambling and a number of brokerage houses have been responsible for exaggerating that day trading is safe and risk-free.

There are two keys to constantly profitable day trading: one is having lots of various trades available. You should put into practice your day trading using a simulated trading system before using real money.

The second key is that you need education in Forex trading. You must first learn how to trade Forex.

If you are interested in joining the millions who are making money in the Forex markets, you should read more about the best Forex trading education. You will discover the secrets of the big dogs. Learn Forex currency trading online.



How To Get A PR8 Forex Back Link











 

How To Get A PR8 Forex Back Link

Submitted By: Paul Elms
 
 















Are you desperate to get traffic to your site and start pushing your business forward? Then you're not the only one. Most webmasters want traffic, and they want it fast. One way of doing this is to get high PR sites to link to you. Run a Forex site? Then you should aim for a PR8 Forex site to link to you. Run a wedding site. Then a link from a PR8 wedding site will do wonders for your ranking. But how and why does this need for links come about? And more importantly how can you do it.


Google has long been known for serving up good quality results to their search engine users. You type in 'buses' and you expect to see a lots of websites returned that contain information about buses. Now one of the criteria Google (and other search engines) use to do this is the 'on-page' criterion. They look at the actually content on the page to see what it is about. But say there is over a million pages about buses - which result will Google put on top? A second factor is now becoming more important. This is the importance of off-page criteria.


The most important off-page criterion is the number and quality of links pointing to your site. In short, if there are a lot of good quality websites with links to your site then Google will assume you have a good quality site. If the word 'buses' is in the anchor text of the link then Google will assume your site is about that subject.


But just because you have thousands of links, you won't necessarily get to the top of Google. This is because quality counts. One common way of assessing quality is by using Goggle's page rank. This is figure from 1 to 10 with the highest being the best quality site. A site with a PR7 is assumed to be better quality than a site with a PR2.


The best type of links to get are termed one-way links. This is exactly as it sounds; a site links to yours but crucially there is not a link back to them. A few years ago reciprocal linking was very popular and it went along the lines of "I'll link to you, if you link to me". Google has since downgraded the importance of these links, and the aim now is to just get a one-way link.


Knowing this, your task is simple. If you own a Forex site then get a PR8 Forex site to link to you. You can do this by writing the best quality content that you can and then contacting the owners of the target sites to link to you. An alternative and some would say underground method, is to buy a link from a PR8 Forex site. There are a number of text link brokers out there who will happily sell you a link. You could quickly see your search engine placements rocket. But be warned. Google is trying to clamp down on sites that are buying text links, so that the search engine results are not skewed.











About the Author:

A good trading system can make the difference between being a winner and being roadkill. The Forex Edge is a well known system that will increase your trading profits. For more tips on successful trading and how you can predict the Forex, visit http://www.forex-trading-advice.com




Article Tags: link, links, site








iSnare Articles Trademark Balls