EUR/USD Goes Up on Sing of Slower US Economic Growth

 

EUR/USD was trading sideways today after declining somewhat, but recently jumped as economic reports from the US was rather bad. Reports indicated that US economy is still growing, but pace of growth is constantly slowing. EUR/USD trades now at about 1.3017.
NY Empire State manufacturing index slipped to 4.1 in September from the previous value of 7.1, instead of rising to 8.7 as was predicted by analysts.
A report on export and import prices was released today, showing that import prices increased 0.6% in August, after rising 0.1% the previous month. Export prices rose 0.8% in August after declining 0.2% in July.
Industrial production expanded 0.2% in August, less than in July (0.6% revised downwardly from 1.0%) and below a predicted value of 0.3%. Capacity utilization rate also was below forecasts — 74.7% compared to promised 75.1%. In July it was 74.6%.
US crude oil inventories decreased by 2.5 million barrels from the previous week. Total motor gasoline inventories decreased by 0.7 million barrels last week.

Good US Reports Boost Risk Appetite, Pushing EUR/USD Higher

The euro extended its rally against the dollar today as good reports from the US, including report on Producer Price Index and unemployment claims, increased investors’ risk appetite. Philadelphia Fed Business Outlook Survey said that “regional manufacturing activity was nearly flat in September”. EUR/USD trades now near 1.3096 after rising to intraday high of 1.3108, the highest level since August 11.
Producer Price Index (PPI) increased 0.4% in August, following a 0.2% advance in July. The forecast growth was 0.3%.
Initial jobless claims decreased from 453k to 450k last week. Forecasts clearly were wrong, expecting an increase to 463k.
US current account balance deficit increased to $123.3 billion (preliminary) in the second quarter of 2010, from $109.2 billion (revised) in the first quarter of 2010. Experts almost guessed the actual figure, promising an increase to $124 billion.
Net long-term purchases of the U.S. securities by the foreign investors were at $61.2 billion in July, compared to a previous reading of $44.4 billion and an expected decline of $37.9 billion.
Philadelphia Fed index advanced from -7.7 in August to -0.7 in September. Although the index rose, it was below a forecast value of 0.9.

EUR/USD Fluctuates on Mixed Economic Reports from US

EUR/USD currency pair moves up and down today as economic data from the US was mixed. Consumer price index grew more than predicted but preliminary report about the Reuters/University of Michigan Consumer Sentiment posted an unexpected decline. EUR/USD trades currently near 1.3060.
CPI indicator increased 0.3% in August on a seasonally adjusted basis. The growth was the same as in July, while somewhat smaller increased was predicted — 0.2%.
University of Michigan consumer sentiment index decreased from 68.9 to 66.6 in September according to the preliminary report released today. It was unpleasant surprise to Forex traders, who expected an increase to 70.2.

InstaForex — First Broker to Offer Real MetaTrader 5 Accounts

Breaking news! InstaForex announced today that it became the first Forex broker to offer real accounts with MetaTrader 5 as the trading platform. Although it’s a great news for all traders (that are trading or have ever considered trading with InstaForex), as the MT5 platform has many advantages (like more timeframes and improved strategy tester), the current version of the platform and the MQL Editor/language is quite far from being perfect and bug-free. I believe it will take several months more for MetaQuotes to complete the development of MT5.
Anyway, having MetaTrader 5 for real accounts is a nice thing and I’m sure many traders will start testing their MT5 expert advisors there soon.

EUR/USD Rises After Decline on Sentiment

The euro slid versus the dollar earlier as the confidence in Europe’s economy worsened but now returned to its opening level and continues to rise. There is not much data from the US today. Retail sales rose as was expected and business inventories unexpectedly surged. EUR/USD trades currently near 1.2897 after it slumped to 1.2829.
Retail sales rose 0.4% in August, just as forecasts promised. July growth was revised from 0.4% to 0.3%.
Business inventories were up 1.0% in July from June. Analysts expected advance of 0.5%, the same as in June (revised from 0.3%).

Treasury Budget Deficit Shrinks, EUR/USD Rises

 

The euro jumped against the dollar today with improving outlook for global recovery. Today we had only one report: about treasury budget. It showed that budget deficit significantly shrank in August. EUR/USD trades now at 1.2871.
US treasury budget posted a deficit of $90.5 billion in August, compared with the previous reading of $165 billion. The forecast deficit was $102.5 billion.
On Friday a report on wholesale inventories was released, which showed a growth by in 1.3% in July, following 0.4% advance in the month before.

Do You Use Any On-Line Forex Tools?

Various websites provide a great selection of free and paid Forex tools that can be used by the currency traders for the purpose of increasing their profitability. For example, I often use a position size calculator and watch Forex videos on-line, which helps me to get the latest analysis and news. Economic calendar is probably the most popular on-line tool among all traders (except maybe those that own a Bloomberg terminal or something like that), as it’s the best way to keep yourself informed about the latest financial and currency-related news. And what on-line tools do you prefer to use (you can select multiple answers in this poll)?

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Another BASIC SYSTEM

I posted a basic system before with a chart of GbpUsd. Now I am going to use the same system and post the same pairs again.

Now GbpUsd has cross above LWMA55 and Macd has cross also. This is a new signal. So from now on only consider long position on GbpUsd. Btw anyone notice the price on this chart with the one i posted earlier?

Someone posted trade details. It seems the way I am trading will make me go bankrupt. All I can say is you dont have the idea what Forex is. Maybe I may not know how to handle the current market but my demo account has no drawdown. Maybe its coz im lucky. I just dont know.

I have stop trading the demo on marketiva. For $30 for the monthly winner. It is just a waste of time (Now I am going to reverse trade it). Instead I go for Instaforex forex sniper. Prize money is $1500 for weekly winner. Check out the banner on top.

FOREX 4TH ANNIVERSARY

Today marks the end of 4th year I am in Forex and I am still here. Most of the friends that I know trade has already stop. It must mean something to stay here for so long when most people quit. Its either I am really stubborn or I am not losing money. Which one you think?

After 3 days of demo trading I got over 25k of profit from 10k max lot trading. Its over 250pip net profit. Not bad for a part time trader and a 7th place so far. I dont think I can be number 1 coz of limited time I trade. Its a good progress, it shows where I am after 4 years. How about you?

Source for this Article www.Forex-King.blogspot.com

A Basic System

Any system need to have a very good basic to stand on. Once the basic is sort out, then all the accessories can be add on. Just remember not to add too much to it. Today I am going to give a basic system. It consist of only 2 indicators. Being simple, it is able to generate good signal. Just remember to put SL properly.


Indicators:
1. LWMA 55
2. MACD standard setting

Time frame: 30m

Stop Loss : 35 pips

Take Profit : 35 pips or more.

Currencies : EurUsd, GbpUsd, EurJpy, GbpJpy

Trading System:
LWMA act as a thin trend line. If the price is above it, its uptrend. If the price is below it, its downtrend. So you buy or sell according to trend. Never reverse trade. MACD also shows the trend. If MACD is above 0, its uptrend and the other way around.

I have put 3 vertical lines in the chart where MACD cross 0. Once MACD cross 0, you should only trade according to trend. You entry should be on the LWMA 55 or close. At the moment MACD has cross 0 and is heading down. From now on only consider short position. Try to enter as close as possible to LWMA 55.

Caution has to be taken, even though MACD has cross the trend is not yet full down actually. There is another indicator that I use to show trend and its not full down yet. Unfortunately that indicator is no where in the chart because it is not on GbpUsd chart. It is somewhere else.

Now you wonder why its not there. The truth is most people fail because what they are looking for is not there. That is what I meant with looking at the wrong direction. The trend indicator for GbpUsd is not on GbpUsd chart. Weird isnt it?

You can take this basic system and try to add on what ever system you have. Hopefully it is useful. Good Luck


Source for this Article www.Forex-King.blogspot.com

THE ENDING IS NEAR

1,447 days ago I started to step in the world of Forex. 6th May 2006 is the day I registered my 1st demo account and its a Saturday. Through out my journey in Forex, there are no actual manual, text or books that I can really refer to. Its like an unexplored land with no maps what so ever. There are only guides available online with no one giving specific answer.

Though hard it may be I started to develop my own system and continue to improve on that system. No matter how I try to improve it, there is still something missing. After a long and hard work I finally got the answer. It is an answer that I wasn't willing to accept. So I disappeared for almost 1 year though my part of moving places only took 1 month to settle.

Now I am back trading with the answer in my head thus a new direction in my sight. Turns out it is really easy once you have the right answer. You know the question as well as I do. "WHAT IS FOREX".

I believe my learning period in Forex is almost over. I can now see direction clearly. I know which pair to trade with the highest probability of profit. I know when to exit and I know when to turn off the computer while still holding positions. I have mastered the basic of Forex. The only thing now is discipline and Money Management.

What I am not willing to do is to write in this blog about trading ideas. I may blow out the answer. After almost 4 years, its not something I am willing to give easily. There are no notes, no records, nothing written anywhere on my trading ideas. Its all in my head. My system now is so simple, it consist of only 2 main indicators which I can trade without. Find the answer and its all smooth sailing from there. I just wish I have found it earlier.

For those of you who show interest in my new trading system, thank you for the attention. I have stopped giving out my system due to limited time I have to teach. I dont teach, I dont sell my system, I dont ask for your money and I dont give signals.

You can come and visit this blog. I will give chart analysis from time to time. Dont expect too much coz there is not much in Forex anyway.

Good luck to all of you. Thank you for visiting my blog. For today, do sell GJ coz its going down. You just need to figure out where to enter. Its not an easy task, I know coz Ive been there.

Source for this Article www.Forex-King.blogspot.com

A Trader's Tools

A mechanic has many tools. Each tools with its own usage and purpose. It is only down to intelligence and creativity that separates a good mechanic and a bad one.

Like a mechanic, a trader has many tools as well. Each indicator is a tool for the trader and a combination set of tools with rules is a trading system. A good trader has not 1 but many system. Each system has different purpose. It is down to knowledge and creativity that separates a good trader and a bad one apart from portfolio.

The best time frame to trade is the lower time frame but due to noise and spikes it is difficult to trade using lower timeframe. It is the reason why most trades fail in short time frame.

EurUsd has been ranging for the past few days and due to it, has hit my stop loss twice. Being a trend trader myself, I just cannot trade during these ranging period. So I stopped trading and try to make a new trading system using lower time frame to catch these ranging market.

It seems with a new set of tools (not new actually, had not used them for a while), I have manage to create an almost perfect trading system for all time frame but with the target of 15m chart. The only thing that this new system doesnt show is when not to trade which i made up with a new set of rules.

If any of you would like to try the new trading system please leave your email. I will try to get back to you ASAP.

Source for this Article www.Forex-King.blogspot.com

OVERCOMPLICATED TRADING

Human tends to over-complicate things. It is in our nature to try and improve what we have but most of the time we overcomplicated things and forget about the simple solution.

In my previous post, I posted a chart of a basic system. It consist of candle stick chart, moving average and macd. Only 3 indicators and it is a very simple system rite?

The answer is, it is not so simple actually. Candle stick alone tell you 4 things that is, open, close, high and low price. MA tells you direction of trend, entry point, start and end of trend. Macd tell you trend, entry point, reversal point.

From only 3 indicators there are actually 11 information cramp into that small chart. Too much info and decision making is a hard job. Though i filter comments, no one has actually ask about the amount of information on chart. It seems people can accept 11 information at once. Can you manage 11 input at once and make a decision out of it??

Source for this Article www.Forex-King.blogspot.com

Forex is an Art

When you say trading, people will say trading is an art. Look at all the books that has been published on the subject. They will say the art of trading forex.

In that sense, we must take forex as an art and not a science. I know, some people may not agree with me and all the post that is in this blog. I don't blame them coz I was actually in the same place as they were when I started trading. Trying to find the answer to forex using every logical explanation.

This is the answer that you have been looking for. I am going to give it to you straight away. Let see if your mind can accept it.

Forex is not a science. There is not a single mathematical equation that can explain it. Do not forecast, do not predict, do not anticipate. All you need to do to make profit is to follow the market. If the price is going up, you buy. If the price is going down, u sell. You may not win all the time but if you follow the market, in the end you will be in profit. Make profit and build up your capital up to a point where a few winning trades per month will bring huge profit.

Can you accept it? Can you mind admit it? Is your logical mind challenged? Do you feel helpless? Welcome to the real world :)
 Source of this Article www.Forex-blogs.blogspot.com