Market Mind Games: Free Forex Robot

Market Mind Games: Free Forex Robot: "The Forex robot enclosed is free and everything you need to know about it is enclosed. After reading this article, you will know how it why..."

Free Forex Robot

The Forex robot enclosed is free and everything you need to know about it is enclosed. After reading this article, you will know how it why it works and how by applying it you can enjoy long term currency trading success... There is a huge industry in Forex robots and so called Expert Advisors to choose from which you can buy but is the one enclosed better - the answer is and its better for one simple reason - it makes money. 

The Robots you see heavily advertised are junk. They don't work, and simply rely on made up track records and clever advertising but none of them have made long term gains. Let's look at our free system and it's so simple, you don't even need a computer, it has just one rule and this is the rule: Buy a new 4 week high and hold the position until a new 4 week low is hit, then reverse your position to a short. Keep buying new 4 week highs and selling new 4 week lows and always keep a position in the market. You can't get a simpler system than this but it works and it's obvious why. It's a simple robust long term breakout system and it's a fact that all major moves start from breakouts. 

This system will get you in on all the big trends and get you will get a good chunk of them in terms of profits. This system is not new, it was devised by well known trader Richard Donchian in the late seventies and traders have been using it ever since. The system is simple to understand, very robust, it's based on breakout trading which will always work and its simplicity is the very key to it's success. Simple system always work best, as they have fewer elements to break than complicated ones. Most traders won't use this system though. 

They will think it's to simple to work (despite the fact that it does), it doesn't have any glossy packaging and it doesn't make unrealistic claims. Traders still believe the bought robots with there made up track records will beat it but they don't and never will. 

The system takes discipline to follow as its long term but on the plus side, you only need 30 minutes a day or less to operate it and it gives you an objective signal which you simply follow. Some of the great traders such as Richard Dennis, have been fans of the system so if you use it, your in very good company. 

The system is called the 4 Week Rule, it's been used for decades by savvy traders and has made countless millions in profits. Check out this free forex robot and you will be glad you did and remember - it costs nothing and is totally free.

Market Mind Games: Moving Average Crossovers

Market Mind Games: Moving Average Crossovers: "Many forex traders who have tried using moving average crossovers to time their entry into a trade have probably found them to have limit..."

Moving Average Crossovers

Many forex traders who have tried using moving average crossovers to time their entry into a trade have probably found them to have limited value as they have a tendency to signal an entry late in the move.  If you are buying late, you find that too often you buy near a short-term top or if you sell late, you find that too often you sell near a short-term bottom. 

This would not be so bad in a strong trending market, but the real damage is done in a directionless market where there are many crossovers with no follow-through which can mean losing trade after losing trade.  The key to use moving average crossovers is to first identify the trend of the market and then to only trade in that same direction.  If you find a strong uptrend, then using a moving average crossover as a buy signal has more value. 

If you find a strong downtrend, then using a moving average crossover as a sell signal also has more value.  Since moving averages can help identify the trend of the market, we can develop a simple trading approach using three different moving averages.  This is a daily chart of the EUR/USD with one year of activity.  The green line is a 200-day simple moving average.  When the market is above this moving average we can consider the trend as up and only take the buys. 

When the market is below this moving average, we can consider the trend as down and only take the sells.  We are also using a 10-day simple moving average which is the black line and a 25-day simple moving average which is the purple line.  When the fast moving average (the 10-day or black line) crosses from below to above the slow moving average (the 25-day or purple line), a buy signal is given. 

We can see that there were three crossovers on the chart below and that the market continued to move in the direction of the trend after the crossover.  The key here is to first identify the trend and to only trade the strong trends to increase your chance of success.

Market Mind Games: The Importance of Fibonacci levels in Trading

Market Mind Games: The Importance of Fibonacci levels in Trading: "If there is one thing in the whole technical analysis panoply of tools, we would choose the Fibonacci retracement percentages ladder. It..."

The Importance of Fibonacci levels in Trading

If there is one thing in the whole technical analysis panoply of tools, we would choose the Fibonacci retracement percentages ladder. It is not the place to enter into the theory behind these numbers but it is always amazing how well their use will help the trader-investor in his efforts to understand the markets gyrations. 

There are many applications in which we can apply one variant or another of the Fibonacci numbers and their relationships, but our preferred one is this power of theirs to predict levels of retracements in a corrective phase. 

In the classic technical analysis methodology, a correction should be between a third and two third of the previous move. Less than that, it would be viewed as a part of the trending move and not a correction. More than that would be considered a "deep correction" with a tendency to treat it as the first sign of weakness in the prevailing trend. The Fibonacci counterpart of one third is the 38.2% area and the one for two third is the 61.8% area.

Furthermore, the 50% retracement is considered the most common in the financial world of assets. Half is a nice point of reference and it seems at times that it is a prophecy that is fulfilling itself. So many traders look for this area for a re-action in the price, that many of them will come and buy or sell in this exact point. By doing so, they are creating the effect that they are waiting for.

Our visual aid is the weekly chart of the USDJPY with a daily chart insert. Look how many price moves have been retraced by EXACTLY 50% (back, blue, light green) and EXACTLY 61.8% (violet, orange). You can also find many more in the daily and intraday time frames.

How can we use this feature effectively? First, the trader should understand that the price and only the price is giving signals to go long or short. Any other indicator or tool is only helping. Some a bit more than others and we consider this one a great help. So, the thing to do is "to be ready" when the price arrives near the Fibonacci percentages.

If the correction suddenly stops and reverse, it is a good sign that the old trend is returning and to enter a position in its direction. Such a position should be protected by a very tight stop-loss over or under the Fibonacci level that was the limit of the reversal. For example: in the black correction (end of 2002) the trader would be prepared from 124-5. When the price did break the ascending channel, the trader should have taken a short with a SL at 125.75.

What about now?

The daily insert shows that the current correction up did not yet reach the 50% Fibonacci retracement. In view of the history in this pair, it is safe to say that there is a way to go to the upside for the USDJPY. We should be ready near 115-116 and then near 118 for the end of this move. If the JPY will go further, we should consider that a change in the main trend is in the cards.

Market Mind Games: Forex Stop Loss? I Don't Want To Use It

Market Mind Games: Forex Stop Loss? I Don't Want To Use It: "Last week I was reviewing a website which has a trading signal program for those investors who prefer to not being involved in confusing..."