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Which time frame is best for trading forex?

Which time frame is best for trading forex?

We know many time frames to trade forex.
From the monthly to the 1 minute.
Swing traders often trade a higher time frame and scalpers a lower time frame.
Yet it is very important to start from the higher time frames, even as a scalper.

The higher time frames show a much clearer direction and the support / resistance levels or the supply demand levels are much stronger.
I always draw first from the daily time frame, then the H4 and then the H1.
I often enter on the M30 time frame or the M15 time frame.

best time frame to trade Forex

best time frame to trade Forex

Levels lower than the 1 hourly time frame are tended to give false information.
Lots of waves are known as distractors or “noise”.
This could lead to confusion and bad decisions.

Look at the Support & Resistance like stairs. Moving up the stairs for the bulls and downstairs for the bears.
Market is in an upwards trend when bulls are peaking higher (higher highs) and have higher lows (when their lows are higher as normal).
While the bears make Lower lows and Lower highs.

When searching for extra levels or you can’t find any levels at all, you need to go back in time.
When your opinion of a certain pair is Bullish,
you’ll need to wait till the pair closes the last Resistance level.
You surely place your stop loss order just beneath the latest low or Support level.

When your judgement of the pair is Bearish, obviously you need to wait till the pair closes the latest Resistance level.
Place your stop loss order just above the latest high or just above the Resistance level.

 

Want to know more about trading in forex / trader mindset or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

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Forex trading fundamentals

Forex trading fundamentals

What are forex trading fundamentals ?

 

What exactly are forex trading fundamentals?

Important financial or economic news is thrown at us every day.
Fundamental announcements are a very important factor when trading at the Forex market.
Basically when trading at any market. Fundamentals could cause a movement in the market in a shorter timeframe. Take the Brexit for example.

We focus on the one economy versus the other economy.
For example Europe against USA or Great Britain Against Japan etc.

Let’s take a look at the most important indicators that will have a great impact on the market or certain pairs.
An increased interest rate of a certain country will result in a growth of value of the currency of that country since investments will rise due to a higher interest rate.

A lower interest rate will result in weaker currency since there will be less investments due to the lower rate of return.
This production data is a strong indicator for the industrialized countries.

It is Bullish if the numbers are higher than expected and Bearish if the numbers are lower than expected.

Employment data.

Higher employment numbers will be Bullish for a currency. And lower employment will naturally Bearish.
Higher inflation and higher consumer confidence is a positive economic signal and therefore has a Bullish impact on the currency.
And a weaker inflation and lower consumer confidence is a Bearish signal for a currency.

GDP (Gross domestic product) is more of a lagging indicator, but obviously a higher GDP encourages Bullish price. And the lower the GDP, the more Bearish.
This is also how a good Forex trader starts the day. First you look at the economic news and how it can have any effect on the pairs you want to trade.

 

forex trading fundamentals

forex trading fundamentals

Tips:

  • Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.
  • Be informed about the economic indicators that are capturing most of the market’s attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most-watched indicators.
  • Know the market expectations for the data, and then pay attention to whether the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results. If so, be aware of the possible justifications for this difference.
  • Don’t react too quickly to the news. Often numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.
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The Hanging Man Forex

The Hanging Man Forex

The Hanging Man Forex – The Forex Scalper:


The Hanging Man Forex is a Bearish candlestick pattern at the end of an uptrend.

Mostly appears whenever there is a significant sell-off close to the markets high. However, buyers are capable to lift the pairs price up again so it closes nearby the opening level. Mostly a sell-off as seen as loss of territory for the Bulls. It shows weakness.

The Hanging Man Forex


As I said before, the Hanging man Forex is Bearish when occurs after an important uptrend. I hear you thinking. This patterns can easily occur after a downtrend as well right? The anser is yes indeed. However, when that happens it’s called a Hammer. Recognized by small red bodies (small margin between open and close prices) and long lower shadows (the lowest is significantly lower as the open high and close).

The Hanging man has no or almost no upper shadow and a lower shadow at least twice as long as the body of the candle. The lower half of the candles shadow will give is the pressure of selling. A terrific Price Action trade setup is when the formation is set at a Resistance level.

Step 1 is marking the Hanging man candlestick formation with your rectangle tool. Be sure that you are at your highest level of accuracy here. Draw from the top shadow to the lower shadow and stretch the rectangle a little to the right (so you give the price a little space to play).

In the example below we see a weekly Hanging man.

the Hanging man candlestick

Once emphasized the Hanging man candlestick you move on to the daily time frame. In this example the Hanging man was spotted at the weekly chart. As shown below at the daily chart, we have zoomed in to have a better view at the price action.

trading in forex

We’ve just waited for the momentum to change, the Resistance stood ground and the trend has reversed.

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.

https://theforexscalpers.com/2017/11/27/trader-mindset-theforexscalpers-com/
 
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Best Supply and Demand Forex Trading Platform

Best Supply and Demand Forex Trading Platform

What is Supply and Demand Forex ?

What exactly is supply and demand Forex? Supply is actually the amount that is available and demand is the amount that is requested. If you think about Supply and Demand, it is actually very simple.

Just imagine that you sell bananas from your own farm on a local market. And you do not necessarily have to sell all your bananas.
Because you can eat them just as easily as anyone who buys them from you.

Supply and Demand Forex

If bananas reach only 1 dollar per bag, you may be willing to sell 4 or 5 bags. But if the price rises, you decide to make more available. Up to 10 dollars per bag. At that moment you are more than willing to sell every last banana you have. Just because you can easily take all the money you have made and buy something else to eat.

How do you draw Supply and Demand Forex ?

Supply and Demand Trading describes 2
types of zone entry’s that are ‘Sell at Supply Zones’ and ‘Buy at Demand Zones’.
There are 3 rules in trading Supply and Demand forex.

  1. Always look to the left.
  2. Sell at Supply Zone.
  3. Buy at Demand Zone.

Below is an example of Drop Base Drop. Drop Base Drop is a type of supply
zone for a setup for a sell.
The bullish Candle (BASE) that tries to withstand prices on
the base produces good buying and selling areas here.
So price will return at the spot and continue with the DROP price direction.

Forex Trading Platform

I often draw my supply and demand zones on an undecided candle. Often this works well for me and my supply and demand forex zones are fairly accurate.

best Forex Trading Platform for beginners

Above is an example of Rally Base Rally.
Rally Base Rally is a type of demand
zone for a buy setup.
The bearish Candle (The Base) that tries to withstand prices on
the base produces good buying and selling areas here.
So when price return at the base the price is in balance and continue with the RALLY price direction.

Supply and Demand Forex Trade

Of course there are many more ways to trade with supply and demand. Everything about this in my book.
And maybe I’ll write another blog here another time.
It is too much explanation to give in 1 blog.
Below are a few important points that should not be forgotten:

Important that you must know to trade Supply And Demand
Rally= Buyer exceed Seller
Drop= Seller exceed Buyer
Base= Seller and buyer are equal to each other.

Supply and Demand Forex Online

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.


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Fake Out Forex – How To Learn To Trade The Forex Markets

Fake Out Forex – How To Learn To Trade The Forex Markets

How to spot Fake outs Forex

A Fakeout (Fake Breakout) is a form of manipulation to trap breakout traders.
If a breakout trader sees that there is a big breakout which breaks through a strong resistance or support, he thinks it will continue to break into the end of the world.
However, the price makes the reverse and then it comes back to the stop loss of the breakout trader.

Fake Out Forex

Fake Out Forex

Back in the days when I just started trading, I always reacted immediately to a breakout.
Then I lost continuously because the breakout turned out to be a fake out. But how do you react to a breakout? The key is to have patience and to wait for the signals. Often there will be a retest before a real break takes place. Do you already see that the price reacts to the Supply or Demand bias as the example below you can almost be sure that it is a fake out.

Forex Trading

How do you recognize Fake Out Forex

The Fake out must have some resistance / support wicks.
It will always FakeOut to the base supply and demand above the resistance wicks or under the support wicks.

forex trading training

Wait for the Signals to recognize a possible Fake Out

There are many more signals to which you can recognize a possible fake out. I can not go into this blog too deeply in this subject, but it is important that you learn to read the market.
You have to be able to feel the market and recognize changes in behavior, for example.
That is why it is always smart to start with 2 or 3 pairs that you can optimally analyze.
Get to know the pair and get to know their movements.

Fake Out Forex

Even I stupidly enough step into a fake out still sometimes .. But do you know why? Patience!!!!! trading requires a lot of patience.
Only then can you get the most mistakes out of your trading style and you will get more take profits than stop-losses!

Well come on and start learning to read the market just like a very good book.
Get to now it inside and out.

the forex scalper

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
 IC MARKETS.

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