Forex Tips Determine A Peak Trend After Breakout Bands

After Bollinger suffered a breakout, of course the price will move very fast and strong. This is a very important moment for the elections caused profit. But the problem is to where the movement is going to stop and reverse direction? So that we can maintain our profit?

With this technique we can determine when the Price will reverse direction, so that the Profit that we have get the stay signed in to the account and not lost.

 

 

Here's how:

– When bollinger break up, the band's increasingly high rise low band getting down. If the low band is higher than the band's previous low, mean and High price has been overbought before we think of as its peak. Further prices will fall for the correction.

– Similarly, When bollinger bands break down, the band's increasingly high rise low band getting down. If the high band is lower than the band's previous high, meaning prices have been oversold and Low 01 we think of as the next Valley. the price will go up for a correction.

But if it turns out that the price was able to penetrate the top, we think has happened break advanced and price will continue creeping up because his energies so powerful.

With this forex tips we can predict to which the tip of the trends, so when bollingerband already showed the tip of a trend, there are 3 steps that we can take are:

1. closing an open position at the end of the trend.

2. Open a new position at the end of the trend in a direction contrary to the prediction of the trend.

3. Wait for confirmation if the trend continues, if it continues then the mambuka position in line with the trend.

FOREX TRADING SYSTEM

THE PURPOSE OF FOREX TRADING

The purpose of the investor in the Forex trading is to profit from the movement of foreign currencies. Forex trading or currency trading is always done in currency pairs. For example, today, the exchange rate of EUR/USD is 1,0857. This number is also referred to as the Forex rate or just "rate" in short. If the investor had bought 1,000 euros at this time, it will pay 1,081 .70 us dollars. One year later, the Forex rate is 1,2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased with respect to the u.s. dollar. Investors are now able to sell 1,000 € to receive 1.208 .30 dollars.

 

 

In trade we can gain/profit of whether the market rises or falls. His way is to analyze currency pairs which would go up or down, and take the difference in profits.

If you believe the currency will strengthen (up) immediately do a buy, then wait for the price to rise, do closed (sell) when these currencies exceed Your purchase price.

If you believe the currency will weaken (down) do the sell position, wait for the price to drop, do closed (buy) when the currency is under Your selling price.

For more details see the illustration below:

1. David Albrecht entered at position BUY EUR/USD at 1.3000, after a certain time

Handoko SELL (CLOSE) 1.3064 then Handoko benefit 64 pips/point (smallest unit in forex)

If the SELL Handoko (CLOSE) of 1.250 then Handoko losses 50 pips

2. Erik entry at position SELL GBP/USD at 1,500, after a certain time

Erik BUY (CLOSE) at 1,400 then Erik 100 pip profit/point (smallest unit in forex)

If Erik BUY (CLOSE) at 1,650 then Erik losses 150 pips

From the example above looks that you can profit in two ways. Live how the placement of your initial position.

Note, if you look at metatrader application (application of forex) then:

* The prices used during OPEN BUY/LONG is the purchase price (ASK) and the prices used when you close/liquid is the selling price (BID).

* The price is used when OPEN SELL/SHORT is the selling price (BID) and the prices used when you close/liquid is the purchase price (ASK).

HOW DO TRADING?

Forex trading is usually done through brokers or market makers. As a forex trader you can choose the currency pair that You want to buy/sell or trade.

With the development of internet technology, reservations and requests the transaction can be done with just a few clicks from your computer, and brokers to become your business partner. When you close a trade, brokers close a position in the interbank market and credit your account with a loss or a profit. All of this can happen within seconds.

TRADING RISK

Is it true that forex is it scary? Trading in this market is very risky and should not be attempted by novices without the assistance of an experienced trader. If you plan to enter the forex market, it is recommended that you should first learn about the forex market and how it works. In the forex market, you can easily gain an advantage and you can easily lose money anyway

Get To Know Closer Forex

Forex trading is the trading of currencies of different countries with each other. Forex is an abbreviation of Foreign Exchange. For example, the currency circulating in Europe called Euro (EUR) and in the United States, currency in circulation is called the U.s. dollar (USD). An example of forex trading is to buy Euros, while simultaneously selling US dollars. This is called will be abbreviated as EUR/USD.

Meanwhile, the name of the Forex market is a nonstop cash market where currencies of Nations are traded, typically via brokers it. Foreign currencies are constantly and simultaneously bought and sold in local and global markets and then increase or decrease in experiencing ' value based on currency movements. Foreign exchange market conditions can change at any time in response to real-time events.

The Forex market is often also called the foreign exchange market, it is a huge market with a growing financial and liquid (deposit and can be cashed at any time) that operates 24 hours a day. This is not a market in the traditional sense since there is no trade center location. Most of the trading is done through through a network of electronic trading. The foreign exchange market allows companies, banks and other financial institutions to buy and sell foreign currency, in large numbers.

The main market for the currency market is the "interbank" where banks, large companies and large financial institutions manage the risks associated with fluctuations in currency exchange rates.

MAJOR CURRENCIES

The following are the major currencies traded in the market:

Us Dollar (USD)

Japan Yen (JPY)

Euro (EUR)

Canadian Dollar (CAD)

Australia Dollar (AUD)

Switzerland Francs (CHF)

British Pound (GBP)

MARKET PARTICIPANTS

Generally, the perpetrator of the forex Market are derived from a variety of classes including:

Customers

Banks and financial institutions

Broker

The Government of the

Business Person

Speculators

Customers, such as multinational corporations, participate in the forex market because they need foreign currencies for their trade in other countries. Like for example, a particular company based in the United Kingdom will need to use the Forex market to buy the currency they need to pay their partner companies in other countries that sell heavy equipment.

Banks and financial institutions, are the most active participants in the forex market. They deal with other financial institutions to ask their foreign exchange rate and they can buy the currency they need in the forex market. In addition to the central bank and the Government, one of the biggest offender in forex transactions are bank. Interbank market is a market where big bank 2 transaction between them and determine the price of the currency be like yg is seen by individual traders like us on a computer screen.

Banks, in General, act as dealers buy/sell currency at a price bid/ask him. One of the ways the banks got the money is to sell a currency with a higher price than he bought to the customers. Because the forex market is not centralized decentralized alias, then reasonable case see bank one with the other banks had a bit of a difference in the value of the exchange rate

A broker is a company with a software links computer or phone lines to banks around the world. This is the job of a broker to find out what banks have the highest level to buy currencies and banks that have the lowest level to sell the currency.

By using a broker makes it possible for banks to find the best deal available in the world. Forex brokerage firms, but this did not correlate with their own money but only charge a Commission for their services.

Government, is the most influential doer forex, along with the central bank. In many countries, the central bank is the length of the hand of the Government and its policies are run in tandem with the Government. However, some Governments find it increasingly independent. A central bank more effective in carrying out its work to improve the economy. Regardless of how indipendennya a representative of the central bank, the Government usually regularly consult representatives of the central banks to discuss monetary policy. So, the Government and the central bank are usually already one package in terms of monetary policy. The Central Bank often intervenes market certain economic objectives for the sake of his country.

Business person, is one of the biggest clients of these banks, those involved in international transactions. Good business is selling goods to the international clients or buying goods from suppliers internationally, they had to deal with the volatility of the currency fluctuation. The uncertainty is yg hated by management as well as business owners. Faced with the risk of foreign exchange is a major issue for multinational companies. Seba