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Bollinger Bands Interpretation

Bollinger Bands are a tool for graphics and technical analysis indicator created by John Bollinger in the early 1980s. They can be compared with price levels relative volatility during a given period. Bollinger Bands determine levels of resistance and support increased downside.

Bollinger Bands consist of a set of three curves on the price value. Mid-range is a measure of the medium-term trend, usually a simple moving average, which is the basis 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 used in the average.
The default settings are 20 periods and two standard deviations, but obviously adjustable according to need.

Bollinger Bands Interpretation

Formula:

TP = (High + Low + Close) / 3
Bandwidth = 2 * F * σ (TP)

Description: Bollinger Bands upper band (UB) and lower band (LB) is the default two standard deviations (STDEV) of the n latest price (Pn), above and below the Simple Moving Average (SMA) of the n latest price.

Calculation:
ADM = (P1 + P2 + P3 + P4 + ... + Pn) / n
SMA + UB = STDEV (P1 ... Pn)
LB = SMA - STDEV (P1 ... Pn)

Middle Bollinger Band = 20 period moving average
The upper Bollinger band = top + 2 * standard deviation of 20 periods
Lower Bollinger Band = - 2 * standard deviation of 20 periods

Bollinger Bands Interpretation
Two additional resources are derived from Bollinger Bands:
Bandwidth or bandwidth: measurement of the width of the bands. It is used to measure the overall configuration squeeze trade based on volatility.
Bandwidth = (upper Bollinger Band - lower Bollinger Band) / Band
Bollinger through

% B: distance from the position of the final price compared to bands. It is generally used to clarify the price trends and build a trading system parameter.
% B = (Current Price - Bollinger Band lower) / (upper Bollinger Band - lower Bollinger Band)


Bollinger Bands Interpretation for trading:

Bollinger bands are an indication of price volatility in recent years. If recent prices have a broader scope than the previous price, Bollinger bands develop. If final prices have smaller range than the previous price, Bollinger Bands contract.

Bollinger bands are used in different ways by different operators. Some traders make trades when price moves above or below the Bollinger bands (ie, when the price breaks out of the channel Bollinger Bands). Some traders make trades close to the moving average, and use Bollinger bands as targets. Bollinger bands are also used by traders who trade options using volatility since last change is part of the calculation of options premiums. "
Posted in  on 22:07 by herman |   Edit

CCI Divergence Indicator

Forex CCI Indicator is an indicator of the family of oscillators has been developed by Donald Lambert. In its origin, this indicator is designed to identify cyclical involvement products (raw materials). However, the use of ICT was extended to capital markets.

CCI Technical indicator measures the change in share price over average prices typical. This indicator assumes that assets are evolving cycle of ups and downs that occur at regular intervals. Lambert recommended to be used to calculate period CCI third full cycle. During the period of the ICC will be shorter, the indicator will be volatile.

CCI Indicator explained - Method of calculation

CCI principle calculation based on measuring the difference in price compared to the moving average.

On average up to x times the sum of the Most High, low and closing:
Average = Average (above + below + Closing Period MMA)

Calculating the sum of the deviations from the average over the period of calculation of the indicator.
* The sum of the differences = Sum of differences ValeurAbsolue + (high + low + close - Medium);
* Calculates repeat "Period-1" times.

The mean differences
Mean deviation = sum of deviations / Period

Calculate the value of the indicator:
CCI = (high + low + close-day average) / (0015 * Average deviations)

CCI Divergence Indicator
CCI Divergence Indicator Application for trading:

Commodity Channel Index can be used to identify levels of over-bought and over-selling. Beyond 100, the title is considered to be over-bought, pre -100 oversold. Level between -100 and 100 does not give a specific indication.

CCI Divergence Indicator can be used in several ways:

Transfer level (-100 or 100). When CCI is above the 100 level, the trend is strongly upwards. Conversely, when the CCI is below -100, the trend is strongly downward.

The buy signal is triggered when the left indicator of the level of sales. Position can be closed when the CCI reaches the area of ​​purchase (the trader can expect output to decline this area). Similarly, we can sell short when CCI level beyond purchase and redeem shares when the indicator reaches the level -100.

The merchant can also find the differences between the current and the CCI Divergence Indicator. A divergence occurs when the indicator courses and do not move in the same direction. A connector is dedicated to the differences, you can find it by clicking here.

Trends can be observed in the CCI. Breaking movement indicator provides information usable.
Posted in  on 21:56 by herman |   Edit

EURUSD Technical Analysis 30 Sept

TBAs are now available exclusively to premium from 09:00 with a summary of the performance of our trading post which, we recall, are good for 24 hours. TA will be released in the middle of the day PFX.

Spain says it will meet its fiscal deficit target with income higher than expected this year. The market was greatly reassured by this announcement more than twice in the report of the press conference was made traders nervous. We anticipate continuing growth in the last line of sight above (1.2975) even if the ads in Spain should be verified at the end of the year. Monitoring will have some statistics today as CPI indexes, Michigan sentiment and personalities associated with the consumption in the United States.

Posted in  on 21:19 by herman |   Edit

Envelope Indicator Trading system

Pair
- GBPUSD
- EURUSD

Indicator
- 30 Simple Moving Average SMA Indicator
- Envelope indicator 30, 0.1%
- Envelope indicator 30, 0.2%
- 60 Simple Moving Average SMA Indicator
- 120 Simple Moving Average SMA Indicator
Envelope Indicator Trading system
Posted in  on 12:35 by herman |   Edit

What is Speculative Sentiment Index SSI

Usually Forex indicators are based on past prices ( lagging indicator ) , and these indicator will always lagging the Foreign exchange market. And as we know is that past data are not perfectly predictive the next price actions. But the Speculative Sentiment index is different with other Forex trading indicator, SSI Speculative Sentiment Index is considered one of the many leading Forex indicators in the Forex trading market. What is SSI Speculative Sentiment Index ? SSI or Speculative sentiment Index is data information derived from live Forex traders with actual positions on trading platforms. The trading statement, which is the most favorite instrument of SSI Speculative Sentiment index , is a calculate of the number of Forex traders on trading platforms holding buy position in a Foreign exchange pair to the number of Forex traders holding sell positions in the same currency pair.
What is Speculative Sentiment Index SSI
The trading statement of the SSI is one of the most favorite zones of the data and this is where Forex traders can analyze the value number of Forex traders buy in currency pair against the number of forex traders sell in a currency pair.

The bar chart will show the SSI number , as we can see the Euro is showing a current reading of -1.91. It means that every one Forex trader keeping a buy position in the currency pair , there are 1.91 Forex traders that are keeping sell positions.

Readings that are above the zero represent a number buy position in the currency pair, and readings under the zero represent a number sell position in the currency pair.

Speculative sentiment index can be helpful indicator. but, how to use SSI Speculative sentiment index ? For Forex traders that want to use SSI indicator in their trading system , it may be advisable to first identify strong market trend , and then to confirm with Speculative Sentiment Index Indicator. For example , in the USDCAD chart , Speculative Sentiment Index SSI indicator was at 4.4 - which would be downtrend considering that more selling pressure may be in the future of USDCAD than buying pressure, this can be taken as an chance to open sell position. Forex trader can find to open the sell position in a variety strategy. Some Forex traders may prefer to wait for market price to trade up to an intraday resistance levels , while other traders prefer to wait for an RSI Relative Strength Index signal on a shorter time frame chart.
Posted in  on 10:22 by herman |   Edit

Mt4 Tick Volume

Mt4 Tick Volume
Mt4 Tick Volume is a technical volume indicator. Mt4 Tick Volume trading is the technical trading system of assessing the strength of a market trend based on volume fluctuation. You can download Mt4 Tick Volume in this following link.

Download Mt4 Tick Volume
Posted in  on 21:04 by herman |   Edit

Entry Trading in an Existing Trend

Trading with the trend can be helpful for Forex traders with longer time period. But, when we are looking at a market trend it can be difficult to determine where to open position into the Forex market. Let's take a look in the chart below, we can see the pair has been trending bearish , finding to short into existing bearish trend, could be benefit as the EURUSD moved down. So how can we determine a sell price in an existing market trend? in this post we will learn on opening position the trend using a retracement.

Fibonacci retracements are the right method to measure how long foreign exchange pair may reversal against the market trend. These Fibonacci levels are measured in percentage term by calculating the difference between the last high and low in a bearish trend. In the chart below we can see the reversal levels for the pair by calculating the distance between high and low. Usually Forex trader will wait for market price trader to a 38.2%, 61.8% or 78.6% price reversal before opening position.
Entry Trading in an Existing Trend
The 78.6% percent reversal level is usually to as the “Fibonacci level of last resort”. When market price breaks through this level of resistance, Forex traders may assume market price will keep to test the previous high. For this case forex traders will watch to see if today's daily candle closes below the 78.6% Fibonacci retracement level. If market price hold , short positions may be considered with a stop loss order above today's high.

My suggestion is to open short position the pair close our 78.6% Fibonacci retracement level upon the daily candlestick close. And stop loss orders can be plot above resistance level plot by the current daily high. And profit target should set for at least 1:2 Risk/Reward ratio.

And here are Fibonacci custom indicator you can use in your trading reversal
- Fibonacci support resistance mq4
- Fibonacci pivotmq4
- Auto day Fibonacci mq4
- sell zone fibonacci mq4
- Fibo Retracement mq4

Posted in  on 20:37 by herman |   Edit

Three Major Forex Trading Sessions

The three major Forex trading sessions are New York Trading session , The London Trading session and the Tokyo Trading session. Usually , the Foreign exchange market is more active when periods overlap in Europe with Asia Session between 2 AM - 5 am New York Time and Europe with US trading session between 8 am - 12 pm New York Time

New York Trading Session: 8:00 am - 5:00 pm (New York Time)

New York Trading session is the 2nd biggest Forex trading market , New York trades around 16% of the world's Forex tradings. The majority of the tradings in New York occurs during the US with EURO overlap , with tradings slowing as liquidity dries up and European traders exit the Forex market.

London Trading Session: 3:00 AM - 12:00 PM (New York Time)

London trading session is the biggest and the most significant Forex trading center in the world , with around 34% daily Forex trading volume. Most of the biggest banks keep their trading desks in London because of that market share. The big number of participants in the London Forex trading session and the big number of the tradings makes the London trading session more volatile than the other two sessions.

Tokyo Trading Session: 7:00 PM - 4:00 AM (New York Time)

Tokyo trading session is the first market to open and many traders use the Tokyo trading session to apply their trading system. Around 6% of the world's Forex transactions are traded in the Tokyo trading session.
Here is Forex custom indicator that can help you in identifying the Major Forex trading Sessions. Just download it here i-Sessions mq4
Posted in  on 10:59 by herman |   Edit

How to Identify Strong Trend

A Forex trader have to be able to determine the market trend direction. By trading in only trend direction , a Forex trader will be improving a successful transaction since traders are trading with the the trend of the market behind their trend.

I suggest to use a daily chart time frame for the market trend. In this following example chart , you see an great example of currency pair that is in a strong bullish trend.

We can find that market price is trading bullish at roughly a 45 degree from the beginning , this is your first clue. In other technical analysis , the currency pair is moving above the 200 Simple Moving Average indicator, and price has been trading higher highs and higher lows. With these information , forex trade now know that we only want to find for chance to open long position.
How Identify Market Strong Trend

Now let's take a look for another example
How Identify Market Strong Trend
What we can see in this chart above is market price is trading bearish at roughly a 45 degree angle from the beginning. And we also can see that the currency pait is moving under the 200 Simple Moving Average Indicator , market price has been trading lower highs and lower lows. With these information , as Forex traders we now know that we only take for chances to open short position.

Posted in  on 09:13 by herman |   Edit

Trading Supply Demand using Support Resistance

Support and resistance is assisting Forex traders determine levels in which the demand or supply in a given Forex pair may change once that level is crossed.

Demand is the number that is needed at a certain price , while supply is the number available at a particular price. As market price increase, seller's willingness to get rid of their instrument will also increase. And the other hand, buyers will demand more at lower prices,

In this following example chart, we can see m we have not seen price below 1.530 since July of 2010. There have been many instances in which market price has approached this support level - but this line has not been broken.

Support is the level at which demand starts to outstrip supply , sending market price higher.

Trading Supply Demand using Support Resistance

Trading the Range


When trading a range , Forex trader are anticipating the market price to stay the same , with resistance or support standing its ground allowing for Forex traders to sell high and buy low.
Trading Supply Demand using Support Resistance

Trading the Breakout

Another strategy is the Forex trader that is expecting the market price to change, with breaks of resistance or support to make new lows or make new high. With this strategy , the Forex trader's system changes from the range trading . The purpose is now to buy high or to sell low.
Trading Supply Demand using Support Resistance

Posted in  on 05:18 by herman |   Edit

How to Trade The Inside Bar Pattern

The inside bar is one of the most popular candlestick pattern. The inside bar formed when the market trend is at a quite neither building new lows nor new highs with today's market price action. The inside bar pattern can be useful to assist Forex traders trade for breakout.
How to Trade The Inside Bar Pattern
In this following Forex chart, you can see the movement of an inside bar pattern on the GBPUSD trading chart. In this case , Forex traders can trade entry orders to trade a breakout of either the previous low or high. Forex traders can pick a trend bias for their position with the market trend or use an OCO order to open position buy or sell entry.
Posted in  on 19:29 by herman |   Edit

Bulls Indicator Mt4

Bulls Indicator Mt4

Bulls indicator mt4 is technical Forex indicator that is made to indicate the strength of the market trend. On the following market chart below we can see I plotted Bulls indicator mt4 in trading chart. To apply Bulls indicator mt4 you just add bulls indicator or drag it into your chart. You may arrange the fix minimum and fix maximum in the indicator mt4 settings window. Bulls indicator mt4 is very simple mt4 indicator to read. I think Bulls indicator suits the discretionary Forex trader more than technical trader and gives room for interpretation market trend. You can combine bulls indicator mt4 with other technical indicator such bollinger bands, moving average or bears indicator mt4.

Download Bulls Indicator Mt4
Posted in  on 20:44 by herman |   Edit

Awesome Oscillator Strategy

Awesome Oscillator strategy is the favorite technical indicator traded by traders, the Awesome oscillator strategy is simple to understand and can be traded in many strategies. The Awesome indicator consists with histogram. Forex technical analysts use trend and oscillator indicators to change market price into simple signals on Forex charts. The Forex trend indicator reads market prices which are trending in a certain direction. An Forex oscillator indicator reads market price which are overbought or oversold within a specific range. download Awesome Oscillator Strategy

Posted in  on 20:39 by herman |   Edit

Hull Moving Average System

Hull Moving Average System
Hull Moving Average system is a generally applied Foreign exchange market indicator in the markets. Most trading system would employ the use of Hull Moving Average system. Identifying the market trend direction is the main purpose of Hull moving average indicator . Hull Moving Average indicator takes market price fluctuation as well as smooths the whole thing out. Hull Moving average system indicator can also be used to determine zones of support and resistance. There are two famous custom moving average types that Forex traders commonly trade os . These moving average are Hull Moving Average Indicator and Adaptive Moving Average indicator.

Adaptive Moving Average Indicator is formed by adding up a value of time period with averaging them. Adaptive Moving Average indicator was made to eliminate flaws in the market price. The Hull and Adaptive moving Average indicator will always effect sooner to current fluctuation or market trend reversal in the currency market.

Usually Hull Moving Average system is used to identify short term market trend reversal. Finally Hull Moving Average system and Adaptive Moving Average indicator are what as known as Forex lagging indicators. Forex technical lagging indicators always trade badly in Forex markets that are sideways trend.

Download Hull Trend.mq4
Posted in  on 20:55 by herman |   Edit

Trading RSI Divergence

Forex traders using RSI Relative Strength Index to determining Oversold and overbought. Even though oversold and overbought can help Forex trader , they often look for divergence pattern. Divergence is a powerful pattern between chart and indicator that can identify price reversals. In the following chart I have an example chart EURUSD reversing after trading bearish on EURUSD daily chart.
Trading RSI Divergence
Usually RSI technical indicator will follow market price as the EUR price moving down so will RSI indicator too. Divergence pattern shows when indicator splits from the price and they start trading in 2 different trend directions.
Trading RSI Divergence
To start analysis we have to compare the lows on the market chart. In a bearish trend prices should be trading lower lows and that is what the EUR trades. In the following chart , RSI technical indicator trading a series of higher low. This is the divergence pattern ! With this divergence pattern Forex traders can then plot the trading system while searching for market price to swing against the last trend and breakout to higher.
Posted in  on 18:49 by herman |   Edit

Super ADX Mt4 Indicator

Super ADX Mt4 Indicator
The Super ADX Average Directional Movement Index Indicator is an trend indicator used by many Foreign exchange trader to identify Forex market entry. The Super ADX Indicator is used to trade Foreign Exchange and other markets. Generally Super ADX MT4 Indicator can be traded in many conditions, including trends, ranged and breakout trading.
Download Super ADX Mt4 Indicator
Posted in  on 04:35 by herman |   Edit

Buy Sell Indicator mq4

Buy Sell Indicator mq4
In this post , I will talk about Buy Sell Indicator mq4 that has been developed and made to help Foreign Exchange trader become profitable in Forex trading market. Buy sell indicator mq4 is a Forex custom indicator design to help FX trader in analyzing and determining buy sell levels.
Download Buy Sell Indicator mq4
Posted in  on 21:49 by herman |   Edit

Risk Management with ATR Indicator

Setting the right place to plot out stop loss could be a complicated. If we plot the stop loss too much , we run the risk of using a much bigger loss , but if we make our stop loss too small , we run the risk of being touched of the trade before market price trades in the way we wanted it to trade. This problem brings many Forex traders to indecision , even in some cases some forex traders do not placing stop loss on their trades. This mistake can be a dangerous trading, and could bring traders fall. This is where Average True Range or ATR can help Forex traders in these problems.

ATR indicator is made to help Forex traders in watching volatility. As the value of Average True Range decrease or increases , so will the value of average true range.
Risk Management with ATR Indicator
In the trading example above , the green zone marked on the market price as well as the bottom portion of the Forex market chart.

As market price traded making movements in the green area, the forex technical indicator below the market price chart properly showed this volatility. Average True Range traded smaller to show the lessened volatility in market price. Also notice the reading for Average True Range indicator in the upper, left corner of the Forex indicator.

The reading on Average True Range ATR indicator is at 0.00285 . This is in pips showed in the same price format as the foreign exchange pair. So, for AUDUSD , in which price is ar 1.0435 and ATR indicator reading of 0.00285 is 28.5 pips.

If ATR were at .00418, that would be 41.8 pips. And if ATR is at .01295, that would be 129.5 pips. ATR Average True Range indicator will always be expressed in the format of price.

Setting Stops with ATR Average True Range Indicator
After a Forex trader understands how to use Average True Range ATR indicator, much of the legwork in trading the indicator is already done. If we look in the 4H forex chart above , Average True Range ATR indicator AUDUSD was trading 28.5 pips.
In this case , Forex traders can find to plot the stop loss level ar 28.5 pips - the value of Average True Range ATR technical indicator at the time of the trade.
Risk Management with ATR Indicator
A forex trader could plot their risk level to 2 times the ATR indicator reading. Forex trader can finding at opening an AUDUSD position from the example above would be looking at stop of 57 pips. Or , if Forex trader want to be more aggressive can find to plot ATR indicator at half of ATR indicator value. In the AUDUSD chart above, that would be a stop of 14 pips. If this stop loss level too close to current price , Forex trader can find to customize their stop in being more aggressive conservative , setting the stop loss at multiples of the ATR indicator reading.
Posted in  on 07:54 by herman |   Edit