what would you like to see in a forex blog?
Thursday, November 7, 2013
, Posted by Ryanita at 5:00 PM
hunterz
Hi everyone,
I was thinking of creating a blog for forex. But i do not know what to add into it, except for some daily rss feeds from websites and my own trading ideas. Maybe a bit of free ebooks to share. What else do you think i should add into my blog? Thanks.
Answer
I think it really depends on your aim for having this blog...
Some traders keep a blog to remind themselves of the reasons why they enter into trades... they would then obviously keep a journal of their trade entry criteria, and the resultant win or loss.
Others keep a blog to post up useful articles on Forex trading, and earn money from advertisements that are placed on the blog.
In deciding the content you want to add to your blog, think about who your target readers are, and the rest should come naturally:
Are you targetting new traders? Or existing traders?
Or are you targetting readers who are interested in money-making as a whole?
These questions are just some of the many you may like to ask yourself. :)
I think it really depends on your aim for having this blog...
Some traders keep a blog to remind themselves of the reasons why they enter into trades... they would then obviously keep a journal of their trade entry criteria, and the resultant win or loss.
Others keep a blog to post up useful articles on Forex trading, and earn money from advertisements that are placed on the blog.
In deciding the content you want to add to your blog, think about who your target readers are, and the rest should come naturally:
Are you targetting new traders? Or existing traders?
Or are you targetting readers who are interested in money-making as a whole?
These questions are just some of the many you may like to ask yourself. :)
How best to use MACD for technical analysis?
Tetsushi U
I have been using moving average convergence/divergence and moving average crossovers as trading signals for forex trading but the success rate has been quite low. Most of the times the trades end up meeting the stop-loss. Could someone please let me know the reasons and suggest some better strategies?
Answer
I will try to be short in my answer:
1) MACD or moving averages crossover gives you a buy signal and you buy but the trend in that time frame (will elaborate later) was either downtrend or sideways movement. What are the chances of the buy signal to be true? I would say very less if the take profit target is too ambitious or too far. Action required: Check the status of the trend. You can use indicators like ADX (Average Directional Index) for the same.
2) Trend was in your favor i.e. an uptrend (but not a very strong uptrend) when you placed a long trade based on the crossover signal but what was the volatility of the price movement? In any trend the price retraces back. let's say you are trading on an hourly chart but the average volatility per hour is 50 pips and you placed your stop-loss at 20 pips. The uptrend is no very strong and price retraces back 25 pips before moving upwards again and your position meets the stop-loss. Well, this example needs more elaboration but the summary is that our stop-losses need to have a relationship with the volatility of the movement. If volatility is high then a stop-loss at a narrow gap make make your trade go into losses.
3) You are trading on short-term time frame chart based on the trend of longer time frame chart. The trend situation and the validity of the signals differ from one time frame to another time frame. A daily chart may be showing an uptrend but there may be a downtrend on a 30 minutes' chart. You should consult longer term charts to know the general trend but if you are using shorter time frame charts for your trades then your entry, exit, stop-losses and take profit targets need to be based on that shorter time frame chart.
Summary: You need to be sure about the trend, volatility of the price movement and be very careful of the time frame of the charts you are trading with. Always keep an eye on the larger picture for general trend and the short-term picture for the actual trades 9for short-term trades).
You may find some good information including some of the trading strategies about MACD at http://www.forexabode.com/technical-analysis/macd
Let me quickly touch upon Moving averages also. Apart from all the points above, you need to work with the time frames of moving averages for better crossover signals. I would suggest you to try 2 combinations.
1) 5-period and 22-period moving average crossovers.
2) 10 period and 22-period moving average crossovers
The above two are for double crossovers but if you wish to further cut down the false signals then you may wish to try triple crossovers e.g. 5, 22 and 55 period. But be very careful with the triple crossover as the trend needs to be really very strong with triple crossover signals otherwise by the time the triple crossover takes place, the trend may be reversing the direction and your signal may end up proving false.
You may find some good info about moving averages at http://www.forexabode.com/technical-analysis/moving-averages.
I will try to be short in my answer:
1) MACD or moving averages crossover gives you a buy signal and you buy but the trend in that time frame (will elaborate later) was either downtrend or sideways movement. What are the chances of the buy signal to be true? I would say very less if the take profit target is too ambitious or too far. Action required: Check the status of the trend. You can use indicators like ADX (Average Directional Index) for the same.
2) Trend was in your favor i.e. an uptrend (but not a very strong uptrend) when you placed a long trade based on the crossover signal but what was the volatility of the price movement? In any trend the price retraces back. let's say you are trading on an hourly chart but the average volatility per hour is 50 pips and you placed your stop-loss at 20 pips. The uptrend is no very strong and price retraces back 25 pips before moving upwards again and your position meets the stop-loss. Well, this example needs more elaboration but the summary is that our stop-losses need to have a relationship with the volatility of the movement. If volatility is high then a stop-loss at a narrow gap make make your trade go into losses.
3) You are trading on short-term time frame chart based on the trend of longer time frame chart. The trend situation and the validity of the signals differ from one time frame to another time frame. A daily chart may be showing an uptrend but there may be a downtrend on a 30 minutes' chart. You should consult longer term charts to know the general trend but if you are using shorter time frame charts for your trades then your entry, exit, stop-losses and take profit targets need to be based on that shorter time frame chart.
Summary: You need to be sure about the trend, volatility of the price movement and be very careful of the time frame of the charts you are trading with. Always keep an eye on the larger picture for general trend and the short-term picture for the actual trades 9for short-term trades).
You may find some good information including some of the trading strategies about MACD at http://www.forexabode.com/technical-analysis/macd
Let me quickly touch upon Moving averages also. Apart from all the points above, you need to work with the time frames of moving averages for better crossover signals. I would suggest you to try 2 combinations.
1) 5-period and 22-period moving average crossovers.
2) 10 period and 22-period moving average crossovers
The above two are for double crossovers but if you wish to further cut down the false signals then you may wish to try triple crossovers e.g. 5, 22 and 55 period. But be very careful with the triple crossover as the trend needs to be really very strong with triple crossover signals otherwise by the time the triple crossover takes place, the trend may be reversing the direction and your signal may end up proving false.
You may find some good info about moving averages at http://www.forexabode.com/technical-analysis/moving-averages.
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