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Introduction Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator "doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price." As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first, and most important, signal that Lane identified. Lane also used this oscillator to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels. Calculation %K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100 %D = 3-day SMA of %K Lowest Low = lowest low for the look-back period Highest High = highest high for the look-back period %K is multiplied by 100 to move the decimal point two places Interpretation The Stochastic Oscillator measures the level of the close relative to the high-low range over a given period of time. Assume that the highest high equals 110, the lowest low equals 100 and the close equals 108. The high-low range is 10, which is the denominator in the %K formula. The close less the lowest low equals 8, which is the numerator. 8 divided by 10 equals .80 or 80%. Multiply this number by 100 to find %K %K would equal 30 if the close was at 103 (.30 x 100). The Stochastic Oscillator is above 50 when the close is in the upper half of the range and below 50 when the close is in the lower half. Low readings (below 20) indicate that price is near its low for the given time period. High readings (above 80) indicate that price is near its high for the given time period. The IBM example above shows three 14-day ranges (yellow areas) with the closing price at the end of the period (red dotted) line. The Stochastic Oscillator equals 91 when the close was at the top of the range. The Stochastic Oscillator equals 15 when the close was near the bottom of the range. The close equals 57 when the close was in the middle of the range. Fast, Slow or Full There are three versions of the Stochastic Oscillator available on SharpCharts. The Fast Stochastic Oscillator is based on George Lane's original formulas for %K and %D. %K in the fast version that appears rather choppy. %D is the 3-day SMA of %K. In fact, Lane used %D to generate buy or sell signals based on bullish and bearish divergences. Lane asserts that a %D divergence is the "only signal which will cause you to buy or sell". Because %D in the Fast Stochastic Oscillator is used for signals, the Slow Stochastic Oscillator was introduced to reflect this emphasis. The Slow Stochastic Oscillator smooths %K with a 3-day SMA, which is exactly what %D is in the Fast Stochastic Oscillator. Notice that %K in the Slow Stochastic Oscillator equals %D in the Fast Stochastic Fast Stochastic Oscillator: •Fast %K = %K basic calculation •Fast %D = 3-period SMA of Fast %K Slow Stochastic Oscillator: •Slow %K = Fast %K smoothed with 3-period SMA •Slow %D = 3-period SMA of Slow %K The Full Stochastic Oscillator is a fully customizable version of the Slow Stochastic Oscillator. Users can set the look-back period, the number of periods to slow %K and the number of periods for the %D moving average. The default parameters were used in these examples: Fast Stochastic Oscillator (14,3), Slow Stochastic Oscillator (14,3) and Full Stochastic Oscillator (14,3,3). Full Stochastic Oscillator: •Full %K = Fast %K smoothed with X-period SMA •Full %D = X-period SMA of Full %K

Moving Average Convergence-Divergence (MACD) Introduction Developed by Gerald Appel in the late seventies, Moving Average Convergence-Divergence (MACD) is one of the simplest and most effective momentum indicators available. MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, MACD offers the best of both worlds: trend following and momentum. MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels. Calculation MACD: (12-day EMA - 26-day EMA) Signal Line: 9-day EMA of MACD MACD Histogram: MACD - Signal Line Standard MACD is the 12-day Exponential Moving Average (EMA) less the 26-day EMA. Closing prices are used for these moving averages. A 9-day EMA of MACD is plotted along side to act as a signal line to identify turns in the indicator. The MACD-Histogram represents the difference between MACD and its 9-day EMA, the signal line. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA Interpretation As its name implies, MACD is all about the convergence and divergence of the two moving averages. Convergence occurs when the moving averages move towards each other. Divergence occurs when the moving averages move away from each other. The shorter moving average (12-day) is faster and responsible for most MACD movement. The longer moving average (26-day) is slower and less reactive to price changes in the underlying security. MACD oscillates above and below the zero line, which is also known as the centerline. These crossovers signal that the 12-day EMA has crossed the 26-day EMA. The direction, of course, depends on direction of the moving average cross. Positive MACD indicates that the 12-day EMA is above the 26-day EMA. Positive values increase as the shorter EMA diverges further from the longer EMA. This means upside momentum is increasing. Negative MACD indicates that the 12-day EMA is below the 26-day EMA. Negative values increase as the shorter EMA diverges further below the longer EMA. This means downside momentum is increasing. Signal Line Crossovers Signal line crossovers are the most common MACD signals. The signal line is a 9-day EMA of MACD. As a moving average of the indicator, it trails MACD and makes it easier to spot turns in MACD. A bullish crossover occurs when MACD turns up and crosses above the signal line. A bearish crossover occurs when MACD turns down and crosses below the signal line. Crossovers can last a few days or a few weeks, it all depends on the strength of the move. Signal crossovers are quite common. As such, due diligence is required before relying on these signals. Signal line crossovers at positive or negative extremes should be viewed with caution. Even though MACD is an unbounded oscillator, chartists can estimate historical extremes with a simple visual assessment of the indicator. It takes a strong move in the underlying security to push momentum to an extreme. Even though the move may continue, momentum is likely to slow and this will usually produce a signal line crossover at the extremities. Volatility in the underlying security can also increase the number of crossovers. Chart 2 shows IBM with its 12-day EMA (green), 26-day EMA (red) and MACD (12,26,9) in the indicator window. There were eight signal line crossovers in six months: four up and four down. There were some good signals and some bad signals. The yellow area highlights a period when MACD surged above 2 to reach a positive extreme. There were two bearish signal line crossovers in April and May, but IBM continued trending higher. Even though upward momentum slowed after the surge, upward momentum was still stronger than downside momentum in April and May. The third bearish signal line crossover in May resulted in a good signal.

bollingerbands Bollinger Bands Introduction: Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s. They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time. The purpose of Bollinger Bands is to provide a relative definition of high and low. By definition prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper band and lower band. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. The default parameters, 20 periods and two standard deviations, may be adjusted to suit your purposes.

this must help you Appreciation is when a currency’s value grows stronger. Ask Rate is the rate at which a trader can buy a currency that is for sale. Base Currency is the currency in which other currencies are quoted in a pair. Usually the U.S. dollar is considered the ‘Base Currency’. Bear Market is a market in which prices are declining. Bid/Ask Spread is the difference between the bid and offer price. Big Figure is a term used by dealer and/or brokers. It refers to the first few digits of an exchange rate. Broker is an individual/firm that bring buyers and sellers together for a fee/commission. Bull Market is a market in which prices are rising. Clearing is a term used to refer to a process of settling a trade. Commission is the fee that is charged by a broker/dealer. Confirmation is a document that states the terms of a transaction. Contract is the standard unit of trading. Cross Rate is the exchange rate between any two currencies that are not of the country in which the currency pair is quoted. For example, in the U.S., a GBP/JPY quote would be considered a Cross Rate. The same quote would not be a Cross Rate in either the U.K. or Japan. Currency is a unit of exchange. Any form of money that has been issued by a government/central bank is a currency. Currencies are used as a medium of exchange, i.e. they are used as a basis for trades. Day Trading are trades in which positions are opened and closed on the same day. Dealer is an individual/firm that take one side of a position hoping to make a profit by closing out the position in a following trade with a different trader. Depreciation is a fall in the value of a currency. Foreign Exchange, Forex, FX is the simultaneous purchase or sale of one currency against the purchase or sale of another. Forward is the predetermined and agreed upon exchange rate for the settling of a transaction at some agreed future date. Fundamental Analysis is the analysis of economic and political information as it aims to determine future market movements. Inflation is an economic condition in which the prices of goods rise, hence decreasing the purchasing power of consumers. Initial Margin is the deposit given to a broker/dealer; it is the collateral required to enter into a position as a guarantee on future performance. Limit Order is an order that sets restrictions on the amount of profit and loss it can make. Liquidity is the ability of a market to accept large transaction without it impacting the stability of its prices. Long Position is a position that increases in value in value if market prices increase. Margin Call is when the broker/dealer request additional collateral to guarantee performance on a position that has moved against the investor. Market Maker is a dealer who quotes both bid and ask prices, hence makes a two-sided market for any financial instrument. Maturity is the date in which a financial instrument is expired or a transaction is settled. Offer is the rate at which a dealer is willing to sell. Open position is a deal that has not yet been settled with a physical payment. Overnight Trading are trades in which positions remain open until the next day. Pips/Points is one unit of price change in the bid/ask price of a currency. It is the last digit in a rate; the fourth decimal place in an exchange rate. Position is the netted total holdings of a given currency. Quote is an indicative market price, normally used for information purposes only and not for deals. Rate is the price of one currency in terms of another. Risk is an exposure to the chance of loss. Roll-Over is a process in which the settlement of a transaction is pushed forward to another date. Short Position is a position that increases in value if the market prices decrease. Spread refers to the difference between the bid and offer prices for a currency pair. Stop Loss Order is an order in which an open position is automatically liquidated at a specific price. Stop Loss Order minimized potential losses if the market moves in the opposite direction of the investor’s position. Swap is the sale and purchase of a certain amount of a certain currency at a forward exchange rate. Technical Analysis is an analysis of historical market trends in an effort to forecast future market movements. Transaction Cost is the cost of making a financial transaction whether it is buying or selling.

In the market and forex there is no last strategy because the market change his face and moved every 6month so we have to make new strategy by our skills and experience and this is by time that we trade in the charts... so you can make your strategy every time you want and this is will be the last strategy .....good luck

Forex newbies must follow the news and trading in accordance with the various news releases that can be considered related to the currencies and the Forex market that way they can know what they have to know

Leverage is what we Brits call gearing. Think of it like the gears on a bicycle. With a high gear you pedal slowly and the bike goes fast. If you come to a hill you go to low gear, pedal fast and the bike goes slow. In stock world there are various forms of gearing.I will come to the one I think you are referring last. You have financial gearing (leverage) which is the ratio between money the co. borrows (loans) and the money from shareholders (equity).Also operational gearing, which I think is the ratio of workers to output.i.e. the difference between a work intensive industry and not intensive.

My experience in the Forex is for one year ... when I started reading and learning from various books and websites as well as some friends who work in banks ... Has advised me to learn, read and focus on only one pair like the euro dollar ..... and I think I need some time to acquire various skills as well as administration, capital and risk allocation

Most traders will believe that if someone has a long time trading in forex market, and he must be a good or expert trader, to be frank, some traders spent a long time trading in forex, but they still can't comprehensively understand what is forex, and they also don't do well in forex.

I think it is possible for you to earn $1000 daily, but you have to meet following requirement,Firstly, You should have a large sum of capital, Secondly, You must good command of forex knowledge.

Demo account is only good for practice. The real thrill is when you started to trade using real account. Mixed emotions will be experienced when using real account too, feel happy if you win and sad or anger if you lose. in demo account, you feel nothing since if ever you lose the trade, you lose nothing actually.

it is good that they encourage scalping. i think that scalping is a very good option. i will would like to join this one and try it out and compare it with other forex broker. and i wanna find out who are the good fx broker and who are the best among them.

There are a lot of sites out there where you can view the latest market traders in Europe and USA. Even here in forum sites, others also know the current trends with those 2 countries. There are also monitoring sites all over the internet and hundreds of forex sites available online. Just try to browse on google/yahoo.

I haven't tried using a bot yet in any thing that I do here in the internet. I don't know why, but I've read several blogs that encourage internet users to just use bot for more convenience. I know the fact that robots cannot do ALL things that a human can do. And this is my reason why I'm not fond of using a bot. I trust myself and I want to try yearning for something wherein I'm the one who controlled and managed it. Taking for instance in forex, others are using bot for them to be easier, but still I disagree with the use of bots. Remember, not all the things that a human ca do can be done by a bot.

I am basically a technical trader but trading news would be a very good and rapid trading style to get fast profits or even losses.Technical trading involves following of a trend and sticking to some rules of a strategy etc.but while trading news it all depends on how the news comes out.But fundamental trading doesnt need much time involvment and is a fastest way of trading

This is good information. Every trader needs to learn patience and wait for the correct time to enter the market. Timing is everything in Forex. Getting into the market at exactly the right time will give you profits. Learning some technical analysis helps in deciding what the right time is.

Hi sir 5000$ is not big realy for trader but man can trade by him self with out any company trade for him if risk or no risk .... but thanks for share this with us good luck

In my opinion you have complicated your strategy. What is the necessity to look at 22 currency pair when you are not going to trade in all of them. My strategy is simple. Analyze the one I am trading. look at the weekly chart, daily chart and the short term intraday charts of any duration. main trend is determined by weekly charts, then rest is used to play both the sides of the intermediate trends that happens during the day. shortest preferred duration is 1Min, 5 min and 15 Min charts. If one does not like this, they can have their own choice as they work well if one uses it regularly. I trade only one pair most of the time. I give little time on Fundamental, but that is a few minutes a day. Analysts, I avoid them like plague, although I listen to the nonsense they dish out.

In trading, backup plans do not get you profits. all that one needs is a plan that is very simple to understand, simple to implement. there is no necessity for a second one if the first plan fails. if your first plan fails, there is no guarantee that the back up plan, the second will definitely succeed. The best plan is always the one which is very flexible, understandable, executable. for that the person (trader) Act, cut loss where it needs to be. Stay out if the markets are volatile. Learn to cultivate certain habits in trading that are beneficial.Other aspects which a trader should do is to Save as he earns. He should put away some money as savings/investments which grow at a moderate rate over a longer period. Irrespective of what he earns, he must always make sure to save/invest for himself first. the rest of the needs come later.

This is a good FOREX platen, I am already a member of this site but I have already lost $30 with 7 days, I am a new here, I decide to spent some time to study FOREX, I think this is a good way to earn money though we lost something.

If the current foreign exchange platform havn't any advantages,it is very difficult draw ones eyes.Such as payment of this site, only the way of Bank wire, and worse in pip ,there is no advantage to attract our, I think people who play this site will be less!

This si first time i see this company ....and it is good they use mt4 but they dont have electronic bank likke alertpay and other .... if any one here know another informaion of this broker it will be nice

where is the other information about it? you didnot put any thing includes the money that should be paid for it? good topic but please post more details.

I guess they are not accept AP or LR, e-currency processor for payment and withdraw is only moneybookers. the good thing from this broker is support in 3 different language and offer low spread.

HotForex appeals to me like an interesting forex broker, though I can not conclude now until I try them out. Nevertheless, I like their low spreads, 20% bonus on all deposits and Alertpay as one of its funding options. I will most likely try them out more especially as it operates with MT4 platform too!