Point & Figure Trading (Part I)

By Ahmad Hassam

Point and figure trading in many ways is similar to the support and resistance breakout trading on bar or candlestick charts. The main difference is the look and functionality of the price charts themselves!

Bar charts and candlestick charts show the high low open and close price for a given period. Point and figure charts represent price in a radically different manner from the more familiar bar and candlestick charts. Many forex charting platforms provide the option of point and figure charts.

Point and figure charts do not show any timeframe. This may confuse you in the beginning. Point and figure charts are a pure price action play because these charts generally exclude all other elements like time, volume and open/close other than price. Point and figure trading is based exclusively on price action.

Point and figure charts represent clear evidence of such important technical characteristics like trend, support/resistance and breakouts. Thus a point and figure chart focuses on the behavior of price action which is the most important factor from the technical analysis point of view.

A point and figure chart has got Xs and Os. A point and figure chart is constructed with a column of boxes alternately labeled with Xs and Os. An X column means that the price has risen in that column. Conversely, an O column means that the price has declined in that column.

So there is no concept of time in a point and figure chart. Only when price moves a significant amount regardless of time will an existing column grow or a new column is created. A new column is created going in the opposite direction when a reversal occurs on any column. So there is no time, volume, opens and close on point and figure charts.

Two variables can alter the way the point and figure charts look and act. The first variable is the box size. This is the minimum amount that the price is supposed to move before a new box in the existing column is created.

Each X is equal to fixed price increase. Xs denote a rising trend. For example, if a column of Xs has 10 boxes, price would need to move an additional amount equal to the preset box size before another X would be added to the top of the column.

Suppose, you are using the point and figure chart. You set the box size on the point and figure chart to be equal to 10 pips on the point and figure charting software.

X column and O column. In an X column, the price would have to move another 10 pips above each X box before another X could be added on top of that X. On the other hand, in an O column, price would have to move 10 pips lower than the each box in O column to add another O box on the bottom of the column.

The second important variable is the reversal amount. This is the amount of pips the price needs to reverse before a new column is created. Read the second part of this article to know more about Point and Figure Trading. - 23208

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account!

How to Make a Profit on the Forex Market - 5 guidelines

By Brad Morgan

In the same way that there are rules and instructions for forex trading strategies when you are understanding about forex, there are also tricks for dealing with personal factors and actions that dissipate our success. Here are five important rules for managing yourself so that you can move effortlessly from hesitant beginner to extraordinary forex trader.

1. Maintaining your Cool

Success in the marketplace depends totally on your capacity to divide your trading from your emotions. Those who make money in this business leave lady luck for the card tables and respond to the logical trading signals without considering their emotions. They definitely won't enjoy when making a profit nor would they lament when the bottom falls out.

2. Ruminate For Yourself

People are diverse and so are agents. So plans from one will not necessarily aid the other. analyzing further, other people's advice has no worth unless you know for a fact that they follow your strategies and personal trading system.

resist being a copycat when finding someone creating a profit. Test and check everything yourself. And even though you have verified everything, do not be in a hurry to discard a system you have taken in the dust.

3. Record your transactions.

Ideally you should store in a spreadsheet all the facts pertaining to your exchanges to enable you to identify any strategy from the historical data. Alternatively, it can help not as a tool but as a clue about the many simple factors that decisively determine the accomplishment of a trade.

What to record on the register? The two currencies being exchanged, your standing on the trade and the open and close are the barest minimum.

4. When in Distrust, Hold Your Ground

Do not launch a trade if you are afraid or unsure about it, provided of course that you have a rationale other than distress for your hesitation. A trade can only go one way or the other, so if it is not completely correct, it is wrong. Wait. There will be many superior opportunities.

5. Restrain Your Trades

Not every deal has to be chosen. And not every currency should be dealt or every market seen. Just enrich your plans and await your chance. - 23208

About the Author:

forex training | forex megadroid

Brief Glance At The Currency Markets

By Rueben Gomez

Forex trading implies the act of buying and selling currencies from a variety of countries. Forex trading does seem pretty difficult at first glance. Luckily, forex trading is a uncomplicated procedure with mechanics that are effortlessly understood.

The foreign exchange market is the worlds biggest trading market. Everyday, 2 trillion dollars in trades are made in this market.

The forex market has no central market to call home as it is made up of a variety of international networks. It is built to deal with all currencies globally. Some common trading platforms include metatrader 4 as well as a range of java based trading platforms.

The currency market works around the clock. It closes only during the weekend and no trading is permissible during those two days.

The price of any one currency depends exclusively on the stability, political and economic cues of that country. Major world currencies such as the British pound, the Euro and the Australian and New Zealand dollar all take pleasure in high trade amount due to the relative stability of the respective countries.

Traders continuously look for ideal price points to sell or buy currency pairs. Trading is personality based, as all traders have distinct levels of risk aversion and skill sets. Some prefer long term trades while others enjoy the risks and excitement of scalping.

There is a lot of money to made in the forex market. Leverages of up to 250:1 are enjoyed through their forex brokers. Which mostly equates to more borrowing power for a trade.

The currency market is known for its high unpredictability. Big profits are doable with small amounts of investment. Traders pay what is well-known as the spread each time they open a long or short trade. The spread is based on the currency pair being traded. Highly unpredictable currencies usually have higher spreads and vice versa.

The main drawback to forex trading is of course the risk involved. Traders often utilize money management strategies to lower these risks. To fully comprehend the personality of the currency market, extensive trading on free demo accounts are needed. - 23208

About the Author:

Click Here and Click Here for information on Global Forex Trading and Investments. These make up two of the principal areas that the writer is focused in. Rueben Gomez is a Stock and Currency Trader with years of practice in this fields. When he is not trading, he operates an online forex portal.

How To Find The Best Managed Forex Accounts

By John Eather

The investment industry is perhaps still shocked by the extent of the fallout of the international recession. It caused what many described as a stock market meltdown and many investors were completely wiped out. Now they want to ensure that this does not happen to them again and they have looked to managed forex accounts as an alternative.

You will find access to this service chiefly through the internet and it is something that a lot of investors are using as a tool to diversify their investment portfolio. It is part of the first lesion that one should learn if they are interested in pursuing an investment strategy. You have to make sure that you do not focus your investment too much in one area because if something were to go wrong then you would lose everything.

So an investor should ensure that they are perhaps invested in a number of different vertical sectors if they decide to invest in the stock market. But in fact their diversification should go even further than this. They should only put a portion of their investment into the stock market because no matter which vertical you are in a stock market trend tends to usually impact all industry types listed on it.

You could also decide to put some of your investment into property. This could take the form of either buying an asset yourself or investing in a property management company. Then there are also bonds and endowments and other instruments of investment.

You will find that there is another investment alternative for you to think about and that is managed forex accounts. This is an area in which true investment portfolio diversification is achieved.

You can rest assured knowing that there is a professional keeping a close eye on your account. The ability to check up on it online should also give comfort.

You too can benefit from the advantages of managed forex accounts. - 23208

About the Author:

Learn more about forex managed accounts. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you.

FX Trading - Ought To You Invest?

By Carl Keller

Forex trading is all concerning putting your money into other currencies, thus you'll be able to gain the interest for the night, for time amount or the distinction in trading money all around. Forex trading will involve other assets along with money, but as a result of you are investing in other countries and in other businesses that are dealing in other currencies the premise for the money you create or lose will be based mostly on the trading of money.

Constant trading is done in the forex markets as time zones can vary and the markets will open in one country while another is close to closing. What happens in one market can make a splash on the other countries forex markets, but it's not continuously dangerous or smart, typically the margins of trading are near every other.

A forex market can be gift when 2 countries are concerned in trading, and when money is traded for goods, services or a mix of those things. Currency is the money that trades hands, from one to another. Typically times, a bank goes to be the supply of forex trading, as uncountable dollars are traded daily. There is nearly 2 trillion bucks traded daily on the forex market. Should you get concerned in forex trading? If you are already concerned in the stock market, you've got some plan of what forex trading extremely is all about.

The stock market involves buying shares of a corporation, and you watch how that company does, watching for a bigger return. In the forex markets, you are getting things or products, or goods, and you're paying money for them. As you are doing this, you are gaining or losing because the currency exchange differs daily from country to country. To better prepare you for the forex markets you'll be able to find out about trading and getting online using free 'game' like software.

You may go online and produce an account. Getting into data regarding what you're fascinated by and what you wish to do. The 'game' will permit you to form purchases and trades, involving totally different currencies, therefore you'll be able to then see 1st hand what a gain or loss can be like. As you continue on with this faux account you'll see 1st hand how to create selections based on what you recognize, which means you may have to read concerning the market changes or you will have to require a brokers info at value and play from there.

If you, as an individual wish to be concerned in forex trading, you want to get involved through broker, or a financial institution. Individuals are called spectators, whether or not you're investing money as a result of the amount of cash you're investing is minimal compared to the legion dollars that are invested by governments and by banks at any given time. This does not mean you cannot get involved. Your broker or investment advisor can be in a position to tell you a lot of concerning how you'll be able to be concerned in forex trading. Within the US, there are a number of laws and laws in regards to who will handle forex trading for US voters thus if you're searching the net for a broker, be sure you read the print, and the information about where the company is found and if it is legal for you to try and do business with that company. - 23208

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