How A Good Forex Signal Provider Can Save Your Account

Over the past few years, more and more traders have opted to use forex signal providers to assist their trading endeavours. The greatest decision is how to know which forex signal provider can offer you the best chance at success, and even more importantly, it is vital to avoid the scams. This piece will look into how a forex signal provider can take your dealing to the next level, while staying away from the fraudsters who prey on innocent traders.

Foreign currency trading has become immensely popular in recent times. Most currency traders are not profitable on their own,, and this has created many opportunities for forex signal providers. Recently, many providers have set up signal offerings. The difficulty today is to find an honest, and profitable forex signal provider.

So let’s look at some details. How do forex signal providers operate, and can they really help forex traders? Well, firstly, and perhaps most obviously, if you are a novice forex trader, you can become a profitable foreign exchange trader without having a lot of experience of foreign currency trading. It can take years of learning and practice to be a specialist currency exchange trader, and if you can skip a few steps along the way, then this is a huge asset.

Furthermore, forex signals make it possible for all levels of currency trader to participate in the complex world of foreign exchange. The forex signal provider send out the signals throughout the day, and the trader justs inputs them to his trading platform. Nearly all forex signal providers will advise the subscriber precisely the entry and exit points of the trade This the person merely has to input these trade data to his account, and wait for the profits. What a perfect solution for the busy forex trader

Foreign currency traders are able to look at the different forex signal providers by reference to various criteria, such as reputation of the provider, and performance. The accounts of the investors who have signed up to the provider are then automatically traded through the secure Zulutrade system. There is no limit to the number of forex signal providers that can be selected.

As a final point, forex signal providers can send out their signals in through various methods, and send their signals in a variety of ways. Some forex signals just tell you when to take a trade, whilst others, such as automated software programs, will connect to your trading account, and without human intervention take trades on your account on your behalf. Today, with so many people having mobile devices, the currency signals can be emailed almost immediately, and traders need not miss a profitable forex trading opportunity. Thus it can be seen that there are numerous opportunities for using forex signal providers to profit from the currency market. However, it is imperative that the trader does his research beforehand, and selects a reputable forex signal provider, and does not get scammed out of his hard earned money.

Andy Curtis is a specialist fx trader and mentor. You can get more details about a array of leading free forex signals and reviews of individual forex signal providers at his website specially designed for currency traders, 12y.net.

Using Forex Signals To Profit From The Forex Market

For a novice forex trader, using a forex signal provider can be a great way to be introduced to the difficult but exciting world of forex trading. For a beginner trader, he or she often needs a helping hand in order to succeed, and forex signals can be a good way to achieve this. This piece looks at the reasons why forex signals can be of assistance to a fx trader become profitable.

There are literally dozens of forex signal providers in the market today. The job of the forex investor is to do their due diligence on the various providers, and to determine which provider is best for their needs.

There are a number of steps which forex traders can take to ensure that they do not get scammed by a forex signal provider. Firstly, they should demand that the signal provider offers proof of their claims of profits. A forex signal business wil often promise big returns of 10%, 20% a month, but in reality, these figure are made up, just to lure in investors. Demand to see account proof – if they suddenly go silent, then you know that they don’t have this proof, and can then be ignored.

Secondly, you should ask for a free trial of the forex signals. Many companies offer a free subscription period. This means that a subscriber can test the signals first, ona demo account, before going live, and risking real money. This is an important step to take, as if the provider is genuine, then he will not have a problem to give a sample of his signals. This is a helpful step, as it makes it possible for the trader to evaluate the quality and reliability of the signals before paying money. Secondly, of course, it gives you the chance to trade the signals on a demo account before using them on a live account – we talk more about that later on in the article

The third step, and perhaps an odd one to some people, is to check what level of support the forex signal company is going to provide. Various vendors offer assistance, assistance and even mentoring to their clients This is a great benefit to have, and will help a trader develop at a much quicker pace. Many of the established companies providing signals are managed by top currency pro’s who can help and assist novice traders, and exposure to this experience is a huge advantage from a trader’s perspective.

Finally, it is crucial to test out the forex signals on a demo account before going live. This gives the subscriber the ability to verify how good the signals are in a pratice situation. Eliminating every risk is vital to succeed at trading. Therefore, when you are using a provider for the first time, it is essential to make sure that the signals work, and are profitable, on a long term, consistent basis Only when you are satisfied that the product is a good one, can you open a live account, with real money, and use those signals to increase your profits.

Andy Curtis is a specialized fx trader. You can get further information about how to receive completely free forex signals and surveys of individual forex signals at his web site specially designed for foreign currency traders, Forex Village.

Moving Average Crossover Secrets That You Need To Know

One of the most simplest, highly popular and the most widely used technical indicators after the trendlines is the moving averages. These averages are calculated by adding the prices over a period of time by the time periods. This way,a smoother and a neater curve is obtained. The most important thing while calculating these averages is the time period. The shorter the time period used, the more fluctuations there will be in the curve and more trading signals will be generated. The problem is that most of the time this curve will whipsaw giving losses.

There are three types of moving averages. Simple averages are calculated by dividing all the prices with the number of time periods used to calculate the average. In case of weighted and exponential moving averages, more weight is given to the recent prices as compared to the old ones making them more responsive to recent price action as compared to the simple moving averages.

On the other hand, longer time period averages move slowly with a smoother curve that can be slow in giving trading signals for entering into a long or short position. Now many traders use a combination of slow and fast moving averages in generating trading signals.

Most traders use the combination of three averages. When the short period average crosses the medium one, this gives a trading signal but this need to be confirmed. Confirmation is obtained when the short and the medium move above the longer period average. Futures traders use the combination like 4,9 and 18 period averages. Stock traders use longer periods like the 40 day, 100 day and 200 day to generate trading signals.

When using moving average crossovers as a technical indicator, you should be long when the short average is above the longer period average. And when it is below, you should be short.

The crossovers of these short and longer averages provide the trading signal to act as they indicate that the momentum is shifting from one direction to another. Moving average crossovers are an important tool in the arsenal of any trader. Moving Average Convergence Divergence (MACD) one of the most popular indicator depends on them.

One important caveat about these averages that you need to always keep in mind is that moving averages are lagging indicators and do not work well in choppy or non trending markets. However, in trend markets, they work very well. You need to master them if you want a winning edge in trading!

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5 Pro Trading Tips That You Need To Master

The importance of technical analysis in trading cannot be denied. Technical analysis depends on the price action in the market. Price action is purely driven by the mass psychology. But depending too much on technical analysis without going into the fundamentals that are driving the price action in the market can be short sighted. Good traders always understand the importance of fundamental analysis and how it drives the long term trends in the market. You need to combine technical analysis with fundamental analysis!

If you are trading heating oil or for that matter agricultural commodities than you might know that heating oil demand climbs in the fall and the winter. This is obvious. People use more heating oil in the winter. In the same way, agricultural commodities have seasonality in them that you need to know as a trader. Now, if you think that going long on the December Heating Oil Futures Contract is a good think to do than you must be quite naive. Professional traders and investors are already aware of the seasonality in the heating oil or for that matter the contract that they trade. So they have already catered the price of this seasonality in their contracts.

Another thing that you need to always keep in mind is the date and time of release of Economic Reports. So, if you are trading on Friday, you need tos top trading before 8:30 AM EST as the market usually gets too volatile around this time. There are traders who specialize in trading the NFP Report. But if you are not specifically trading NFP Report, you need to stay away from the market around this time. You can’t do anything about the breaking news. It is always a surprise. But as far as the Economic Reports are concerned, they have a fixed schedule. These reports are released at a fixed time and date of the week or the month. NFP is report is always released on Friday at 8:30 AM EST.

Always try to follow the media. Read the Wall Street Journal, Financial Times or the Bloomberg website regularly. This will give you a good idea of the fundamentals that are moving different markets. In case, you are trading agricultural commodities like coffee, cocoa, soybean etc., it may be difficult to find information on these websites. In such a case subscribe to a specialized newsletter that can keep you abreast of the changing fundamentals in these markets.

Now, no market functions in isolation. All market in the present time have become highly interconnected and interlinked. You need to understand the interrelationship between the futures markets and the stock market. What are the double and triple witching dates and how they might affect your trading or for that matter your investments. What starts in one market may soon spread to the other markets. The stock market crash of 1987 had started in the futures market. Similarly the recent stock market crash has its origins in the subprime mortgage market.

So never think in terms of only one market. Always think in terms of multiple markets. Crudeoil, US Dollar and gold can significantly impact other markets. Rising crude oil prices can increase inflation in the economy forcing the central banks to raise interest rates. Similarly, strong US Dollar can mean cheap foreign goods.

You should make a checklist to help you execute a trade. A trend may appear different on different timeframes. Always check that your daily charts are in agreement with the long term trends. Use multiple timeframes to figure out the primary trend in the market.

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Candlestick Trend Confirming Patterns-Separating Lines And Bullish Thrusting Lines

You are trading stocks. You have bought low when the uptrend started. You won’t to get out now before the trend reversal happens. But you are not sure. You don’t won’t to leave profits on the table by getting out early. So how to know that the trend is still in place and you can continue riding the trend for more profit. Candlestick charting and candlestick patterns can help you know whether the trend is about to continue to reverse itself. There are a number of trend confirmation patterns that you can use. Thrusting Lines Candlestick Pattern is on such pattern.

Just like anyother candlestick pattern, a Thrusting Lines Candlestick Pattern can be bullish as well as bearish. In case of a Bullish Thrusting Lines, the first day or what you call the signal day, there is a long bullish candle. On the signal day, it is a bearish candle with a gap opening price that is higher than the first day or what you call the setup day. In case of a true Bullish Thrusting Lines, the close of the second day or what you call the signal day is always above the midpoint of the first day or the setup day.

On the signal day, the bulls push the price to a gap opening. When this happens, the bears try to comeback with the sellers trying to do the selling but are unable to push the price down below the middle of the first day. When a bullish long candle is formed, it means that the bulls have been in control of the market. So bulls are still in control and are again ready to take control of the market.

When a Thrusting Line Candlestick Pattern is formed, it means that the trend is going to continue in the future. You can safely keep on riding the trend when you find this pattern.

Now, Bullish Separating Lines is another important trend confirmation candlestick pattern that you should master. You will find a long bearish candle on the first day or what you call the setup day or what you call the first day. This long bearish candle means that the bears have been in total control of the market for the day.

This is the feature that is used to identify the Separating Lines Pattern. On the signal day or the second day, you will find a bullish candle. This bullish candle has got an open that is equal to almost equal to the open of the first day or the setup day.

However, on the signal day, the bulls come into play and start buying. There is so much bullishness in the market that the opening price of the signal day is equal to the opening price of the set up day. From that point on the bulls dominate the market and the uptrend continues.

When these candlestick patterns appear on the chart, it means that the trend is going to continue. However, these patterns do not appear frequently and are somewhat rare. But whenever, they do make an appearance, they can be highly profitable if spotted correctly.

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Futures Trading & Major Futures Trading Exchanges

Trading futures contracts on crude oil, wheat, corn, coffee, soybeans, pork bellies, cattle, interest rates, currencies, gold, ethanol, heating, gasoline, silver, copper and others can be highly lucrative. Remember the summer of 2008 when crude oil prices jumped from around $60 to around $150 per barrel in a matter of two to three months. Those who had been trading crude oil futures made a lot of money during those few months. Similarly, gold market is in an unprecedented boom for the last many years. However, many people are just afraid of trading futures. Most invest in stocks thinking that futures trading is risky. Statistically speaking futures trading is no more riskier than stock trading. However, the returns in trading commodity futures can be much higher than those in stocks.

If you want to profit from commodities than futures trading is the best and direct method of getting access to the commodity market. There are several active futures trading exchanges in the US. Three of the world’s largest futures exchanges are located in Chicago.

The number one is the CME ( Chicago Mercantile Exchange). The futures contracts that get traded on CME include among others stock index futures, foreign currencies, interest rates, commodities, environmental futures and others. Futures trading is no doubt risky but if you learn it, it can be highly profitable. As said before, Ricard Dennis and his turtles used to trade the most liquid contracts in the market.

The commodities futures that get traded on CME include live cattle, milk, lean hogs, feeder cattle, butter, limber, pork bellies, Goldman Sachs Commodities Index and fertilizer.

CME provides you with the opportunity to trade futures contracts on these stock indexes as well as their mini versions the E-Minis. Now, one of the ways to trade stock market is to trade stock indexes like the various S&P 500 like the S&P 500 Midcap, Small Cap as well as the Russell 2000 and the NASDAQ 100.

Other important futures contracts that get traded on CME include single stock futures, futures on ETFs and futures on Japanese Nikkei 225 Index. CME group also has the GLOBEX Electronic Trading Platform that allows electronic trading of futures contract almost around the clock.

The world premier futures exchange is the Chicago Board of Trade (CBOT). The futures contracts that are available on CBOT include agricultural futures like the corn, wheat, soybeans, ethanol, rice and mini contracts on corn, soybeans and wheat.

A mini version of Dow Futures called the E-Mini Dow is also available. You can also trade mini versions of gold and silver futures contract on CBOT. CBOT gives you the opportunity to trade one of the most popular stock indexex the DJIA Dow Jones Industrial Average) in the form of Dow Futures.

The next major futures trading exchange is the New York Mercantile Exchange (NYMEX). This is infact the global hub for energy trading and offers futures contracts on light sweet crude, natural gas, unleaded gasoline, heating oil, electricity, propane and coal.

Futures contract on precious metals like gold, silver, platinum and palladium also get traded on NYMEX. Futures contracts on metals like copper and aluminum also are available on NYMEX.

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Short Interest Ratios And Short Selling Secret

Everyone wants to ride the rising tide in the stock market by buying stocks and later on selling them at a higher price to make a capital gain. However, can you make money when the tide in the stock market is going down? Yes, you can with short selling. In short selling, yo borrow a stock from your broker and sell it. Later on you buy it back at a much lower price and return it your broker making a good capital gain.

Now for short selling to work, the stock price should go down otherwize, you will make a hefty loss in case the stock price starts to go up. Since, you are trading with a borrowed stock, you have to return that stock to your broker. In case the stock price goes up, you will have to buy it back at a much higher price with a loss. Now, when you go short and the market suddenly turns against you in the sense that it goes in the wrong direction, you are in trouble. You want to buy back the stock but the price is continously going up. The harder it becomes to buy back the required number of shares, the more desperate you will become and the higher the prices can go before you are able to buy back the required number of shares and return them to your broker. So in a way, short selling is tricky and must only be practiced by the experienced traders.

Short selling in stocks is done by investors with the expectation of a making a capital gain when they expect that stock price to go down in the near future. Short selling is also done by the fund managers to hedge their stock portfolios. Now, in other markets like the currencies, futures or the options market, you don’t have to borrow the security in order to go short. You can straight away go short by selling that security or currency in the market.

There is something very important that you need to keep an eye on when you go short selling. It is known as Short Interest Ratios. This will help you monitor the rate of short selling in the market. If the rate is too high, it means that too many investors are taking short positions and you need to avoid it. New York Stock Exchange (NYSE) and NASDAQ, both report the short interest in stocks listed on them,however, this is done on a monthly basis as brokers need sometime to collect the data of shares that they have lended to their clients for shorting.

Too much short selling can only drive the stock price down. Short Interest Ratio is very important for short sellers. Short Interest Ratio can give you important clues about other short sellers in the market.

So what is the Short Interest Ratio? Short Interest Ratio is the number of shares of a particular stock that has been shorted in the market. It also reports the percentage change in the short positions from the previous month. Plus the average daily volume for that stock in the same month and also the number of days of trading at the average volume that it would require the market to cover the short positions in that stock.

An increase in the short interest ratio means that the investors are becoming nervous about the stock. Now, this number is not calculated frequently. What this means is that the trader cannot get a lot of information out of it. But still a high short interest ratio means that the stock prices will go high soon as the investors with short positions become desperate to buy it back. High Short Interest Ratios along with bullish indicators is an indication that prices are going to go up soon rather than down.

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Why Trading Volume And Open Interest Are Important?

As a trader, you should know the trading volume. Trading volume of a security tells you how heavily that security is being traded. A high trading volume is an indication that there are many buyers and sellers of that security and the current trend will continue. However, you have to combine volume analysis with technical indicators to figure out the meaning of the price action.

Now, volume figures are not available to currency traders in view of the over the counter unregulated nature of the currency market. However, volume figures are available to stocks and futures traders. The release of the volume figure in the futures market is delayed by one trading day.

Increase in trading volume is good for traders and hedgers as it means better price discovery.As the futures contracts near the delivery month, volume increases.

A Limit Up Day is a sign of strength however, a limit down day is usually followed by trading collars. You should know the Limit Days in futures market. Limit days are those days when a futures contract makes a big move in a very short period of time with heavy volume.

Volume data alone can be confusing. So as a trader, you need to use volume data in conjunction with technical indicators. This way, you can understand the signficance of trading volume change and the trend change. You should also understand how volume data is reported in the stock and the futures market. Open interest is the number of open contracts of a security in the market during a given trading period. Open interest is particularly an important tool for futures traders.

Open interest also applies to the options contracts. Open interest is the number of contracts that are opened in a given period of time but are not settled or liquidated during that time.

Open interest gives you information about the total number of short and long contracts. Open interest varies with the number of traders entering and leaving the market. It rises by one when a new buyer and a new seller enter the market. Similarly falls by one when a buyer and a seller leave the market. Charting open interest on a daily basis in conjunction with the price charts helps you keep track of the trend in the futures market and can be a very useful tool.

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Profitable Candlestick Patterns-The Bullish White Marubozu

Candlestick Charting is the best tool in the trading arsenal of an experienced trader. There are two type of candlestick patterns-Bullish or Bearish. The most bullish of the candlestick patterns is the long white candle. When this candlestick pattern is formed, it means that the bulls have been in total control of the market throughout the trading day.

As prices rise through the day, sellers do come in but not enough to stop the prices from continuing to rise. When sellers do show up during the trading day, buyers buy from them and the prices move higher.

With the long white candle closing near the high of the day, this is an indication that the bulls aren’t done with their buying and will be back for more on the following day. What this means is that there wasn’t enough of the securities in the market to keep the buyers from pushing the prices higher.

A White Marubozu may not be formed quite frequently on the chart. Most of the time, you are going to find the white long candle with a wick on either side of the candle body. These wicks will be small offcourse. What this indicates is that the closing price was close to the high of the day but not equal to it. In the same way, the opening price was close or near to the low of the day but not equal to it!Now, a true White Marubozu is a special variation of the long white candle with the closing price equal to the high of the day and the opening price equal to the low of the day.

How do you know that this is indeed the white long candle? You wil find many bullish white candles on the chart. Off course, everyone will not be the white long candle. When you find that 90% of the area between the low and high of the day is covered by the candle body, you know that this is indeed a long white candle.

On a long white candle day, a lot of price action is covered by a very short amount of time. Price action doesn’t move in one direction for that matter without retracing some part of it. This normal retracing of the price action gives you a chance to act on the signal provided by the bullish long white candle.

With long white candlesticks, the low price on the candlestick is a good support level. Support is the level where the buyers are expected to support the price of the stock or for that matter the security.

Now there are three variations to the long white candle. The long white Marubozu without any wick, this is the most bullish. The other is the closing white Marubozu. In this case, the close is equal to the high meaning there is no wick on the top. The other is the opening white Marubozu. In this case, the opening price is equal to the low meaning that there is no wick on the bottom.

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A Shockingly Simple Stocks Momentum Indicator

Trend trading is the one of the best and most profitable trading strategy used by many traders. Infact, spotting a trend at the right time and riding it till the end can make you rich. When you are trading a trend, you are intereste din knowing how fast the trend is changing or what you may call moving whether it is moving up or down. When the rate of change of a trend goes up, it means that the price action is soon going to follow suit and rise as well!

What we have been talking about is Momentum! Just like high school physics, momentum is the rate of change and is calculated by dividing the closing price today by the closing price ten days back and multiplying it by hundred.

This gives you the momentum indicator. If the prices didn’t go anywhere momentum indicator will be 100. If the prices went up, the momentum indicator will be greater than 100 and the prices went down, the momentum indicator will be less than 100. Now, a trend is expected to continue if the momentum indicator is greater than 100.

Momentum is a leading indicator. It tells you what is likely to happen in the future not what happened in the past. Momentum trading is done with some attention to the fundamentals. When key business fundamentals like the sales or profits are accelerating at the same time the security price is going up, momentum is likely to continue.

Now, investors can also use momentum in their investing decisions. Momentum investors are looking for securities that are rising in prices especially if accompanies by acceleration in the underlying growth. The knock on momentum investing is that instead of buying low and selling high, your goal is to buy high and sell even higher.

What a momentum investor is looking for is a security that is going to move big. But this move big is going to happen on a long term horizon instead of a few days. The expectation is to make money on the longer term. The thought is that if the security is starting to go up in price, it will keep going up in prices unless something dramatic happens to change. In the meantime, you can make a lot of money.

There are many way to do momentum investing. One is the price momentum that we have talked above. The other can be Earning Momentum. If you are a long haul investor who keeps an eye on the financial statements of different companies and you find that the quaterly earnings are going up steadily from one quater to another. What this means is that the stock price will also accelerate and follow suit.

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