Detecting trend reversal on Forex - forex trading tax new zealand

Detecting trend reversal on Forex ~ forex trading tax new zealand

I know that: "How to detect trend reversal?" maybe a thought question with very complex answer but I will try to make my take on it, and keep it very simple and understandable.

So let’s get started, obviously when trying to detect trend reversal on Forex you have to use tools that were designed for it. You can’t predict it with MACD or RSI because they are trend following indicators. Indicators designed to predict trend reversal are … candles. Japanese always traded reversal strategies, European and US traders are almost always trend following traders.

If you don’t know how to interpret forex candles then do a search on web and find some info, reading correctly candles is easy and you have to know it. Although keep in mind I do not recommend using them on charts smaller then 4H.

Of course … relying only on Japanese techniques can be quiet deceptive so we need something more reliable, we need to have an angel. Trend reversal candles can happen anywhere on the chart, will they always mean end of the trend? … No, the really important candles are those which can be found near support and resistance levels. We want to know if this particular level will be broken or not.

Let’s pretend we have reverse candle near support, is it time to buy some lots? Again the answer is NO. Take your time, the next candle should be white which is confirmation that trend was reversed, there can also be consolidation period near resistance level, which is usually another sign that trend is reversing, in this case I would put long order at the resistance of consolidation block.

Where to put stop loss? I put it about 100 – 200 pips below my order depending on situation. I mean if important resistance or support line is broken and price move fast in opposite direction (eg. 100 pips) then there is really no point in holding this position any longer, trend wasn’t reversed.

Well, I hope this helps some of you, but if you are going to use this techniques then keep in mind they apply to longer timeframes! I use it with 1D charts, if you will use it with 15M chart you are going to blow yourself out.

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Watch out for EA scams!!! - forex trading tax rates

Watch out for EA scams!!! ~ forex trading tax rates

Recently i found forum post at ForexFactory, where author talked about some scammer selling MetaTrader expert advisor, unfortunetly i cant find this post now to give you permament link so i will just tell you what i know about the case.

First of all this "Expert Advisor" costs 25 000$ (a lot of cash) but from what i have heared it isnt worth even 25 cents. So if you recive such offer by spam or something it is best just to ignore it.

Ofcourse if you find offer interesting then you may want to buy it, in this case it is best to do your own due dilligence, search forums, ask questions etc. Do not buy just because advertisment looks good!

Well this is second forex bad news this week, so i guess coming days can be only better .
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Completely free 100 for Forex trading!!! - forex trading tax nz

Completely free 100 for Forex trading!!! ~ forex trading tax nz

This is something you do not want to miss, fxclub.com gives 100$ to everyone who opens live trading account with them. You thought 5$ from Marketiva was great? Then how you can call this? Awesome? Not exactly.

First of all, i took a look at them and here is what i found:
- Their charting sucks, you cant do intraday trading it is just impossible.
- Their support staff cant speak english fluently - not very professional as for real company.
- It looks like they like ... no they love the game of stop loss hunting - not good also.
- You cannot withdraw free cash, but you can withdraw money you earned, similar to marketiva system

My opinion Russian scams.

However if you are swing trading, and use other software for charting then fxclub.com software then you can try them out, they require only one document with a photo to open an account so it is pretty simple.

So if you would like to take advantage of this free 100$, which they will give, this was double checked by my friend who signed up for their real account here is what you need to do.
1. Go to http://www.fxclub.com/incentive/ and get a pin code.
2. Go to fxclub.com and signup for live account, remember to use your promo code which should be sent to your email address if you correctly completed point 1.
3. Start trading.

Enjoy.
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