Forex Indicators

Whether you are an experienced Forex trader or just starting out with your first account, you will agree that knowing what prices will be tomorrow, next week or next year can make investment much easier. Such tools as Forex indicators and Forex signals are dedicated to help you achieve the maximum results in Forex trading allowing you to profit from the market trends. However, you should never forget that Forex trading is associated with significant risks, especially in case of highly leverage transactions. If market moves against you could lose your entire deposit.

Forex currency trading is the fascinating way to earn money online, but if you are serious about entering this lucrative market, you should consider the learning and understanding of the number of Forex trading indicators and Forex trading signals that will give you an invaluable help on predicting with the high probability the direction of foreign currency rates fluctuations. Sigma Forex is proud to offer you Forex indicators and Forex signals that have proved to be valuable tools for beginners and expert traders.

Using reliable Forex trading indicators and Forex trading signals will help to read the market movements and raise a profit margin. The first step to profit from both short and long-term trends in to understand what affects the particular trend and know how to identify these factors. The next step is the employing a worked out trading strategy that is specific for particular trend. A combination of real time market news, Forex indicators, Forex signals, forecasts, reviews and daily market comments will help traders to make more deliberate decisions.

If you are interested in benefits from the superior profit potential of the Global foreign exchange market and going to achieve stable trading profits for years, Sigma Forex makes it possible for the individual traders and small business investors to make consistent trading profits by using our powerful platform with Forex trading indicators, Forex trading signals, forecasts, tutorials, real-time breaking world news and reliable comments. However, since Forex trading is inherently risky, Sigma Forex does not recommend using a leverage highter than 20:1. Please sepdn some time reading about Risks involved in Forex trading in our Risks section.

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The Meaning of FOREX Price Charts and How to Use Them

There is one very important factor that you should consider with great care if you are willing to become a successful, profitable Forex trader. This ever important factor that must be always present in the trader’s portfolio, is the ability to read the charts.

The beauty of FOREX charts, as opposed to charts used for, say, day trading stocks, is that they are pretty easy to interpret and use. They’re a reflection of a slower-moving, stable economy (the one of a country) compared to the future and daily drama of company reports, Wall street analysts and shareholder demands.

And, unlike stocks, currency charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends (even though the FX market may be volatile, it’s more predictable). And, rather than tens of thousands of stocks to analyze, you only have a few major currencies to trade.

The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:

Bars Charts - Price bars are a linear representation (a line)of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time intervals depending on the system you are using. Each bar has similar characteristics and tells the viewer several important pieces of information. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period.

Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open. If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail. Many interpretations can be made from these “candlesticks” and many books have been written on the art of interpreting these bars

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More importantly, trade pairs that have a direct negative or positive correlation. There are only a few pairs that have this relationship; however, it drastically reduces your risks.

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Why day trade once you get a good seat and the market is going your way. It is always more profitable to ride even the short wave for 2-10 days by adding up. In general, you must day trade only when you are losing. To find a buy entry seat for short-term trades, you can study the "accumulation and distribution patterns and 20 MA" in 8, 4 hourlies or 30 min "Line Charts" (or Candle Charts), together with MACD "overbought and oversold indicators" with its Patterns. If you study them for awhile you will understand when it the best entry point. The remainder is for money management and discipline and of course, experience. Good trades

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Please always give stop order per your risk profile when you open any new position. Medium-term reversals can be confirmed only in monthly, weekly and daily charts. Chart reading is not to predict the tops or bottoms of any move, but to confirm the change of trend as soon as they are made and adopt right strategies in that new trend. Good trades.

For position traders, the basic bias of the market in his trading time frame, the liquidity situation of the market in that time frame, and the size of trading positions must be all taken into account when exercising stops, be it based on tech levels or a certain sum of money or a percentage of a total equity. It is a must but also it is form of art like trading itself. And every trader must develop his own unique style of using stops. But unfortunately, all this can be learned only by paying a certain amount of tuition fee to the market.

Yes, but as a position trader I never use tight stops. Same goes for trailing stops. All very far away from the market not to be taken out by meaningless market noises. Initial stop is always 1% of my total equity, and never commit the whole position at a go but always scale in and scale out.

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