What is a Bearish Rectangle

Just like a wedge, a rectangle is a forex chart pattern indicating a pause in the current trend. However, what differs is that rectangles signal continuation while wedges can lead to either continuation or reversal.

A rectangle is a pattern formed when the price is bounded by parallel support and resistance lines. Yeah, the two boundary lines must be parallel ones. Let us look at the chart below, the two yellow parallel lines and the price moving between them is what forex traders refer to as a rectangle pattern. The pattern in the chart is classified as a bearish rectangle on which I am going to focus.

To confirm a bearish rectangle, there are three basic points that we need to bear in mind. First, a bearish rectangle occurs following a downtrend. Second, there must be at least four pivot points-two on the support line and two on the resistance line. Third, after the rectangle pattern occurs, the price is going to breakout the support line and keeps moving downwards. That is to say: the downtrend resumes.

Here is one tip: if you are wondering when to enter the forex market, do not take any action until the support line is broken out by a strong candle. A strong candle means that the candle has a relative long body and has no or small shadows. Meantime, only when the line is broken by the body may you make a go, otherwise please stay patient.

It seems that a rectangle is much like a flag, right? Yeah, it may be. But there is one difference is that only when the pattern is less than three weeks can it be considered as a flag; ideally, a rectangle will develop a 3-month period.

Got it? I really hope that my analysis is going to help you make a better entry in your forex trading!

Analysis and Suggestions of EUR/USD on 14th Feb. 2012

Yesterday on the daily Forex chart, we can see that the Euro ended with a black candle with a long tail on its upside. The Euro opens in a price and then rise all the way up in a fast speed. It reached the point as high as 1.3282 and then retraced back. It reached the highest point to 1.3259 and then turned back to 1.3206, providing profits about 40 pips. Then, as regularly, where on earth the euro is going today?

Technical Forex Analysis

On the 4-hour Forex daily chart, the Euro did nothing but just opened at a high price and then moved up high in a fast speed. Finally it met strong resistance at 1.3282 and then changed its direction all the way down to 1.3200. To be honest with, there are still hope left that the Euro is going to move up; however, if only it breaks out this line today, it means that it is not that bullish. The only reason why it could reach a so high point is that it is just an accident. The key support line for today: 1.3162; the key resistance line: 1.3220.

Fundamental Forex Analysis

Forex traders should pay attention to EMU data, which ZEW survey revealed better figures than expected, turning almost positive. In Germany, the economic sentiment did turn to positive, -15.0 to 5.4. However, Industrial Production (YoY9 in the EMU has seen a decrease to -2.0% in December, from 0.1% in November, and an expected decline by -1.0%.

Trading Suggestion

I suggest that Forex traders should observe the 30-minute Forex chart for every tiny movement.
Suggestion 1: if the euro reaches as high as 1.3220, Forex traders should consider going long.
Suggestion 2: if the euro drops as low as 1.3143, then Forex traders had better consider going short.

Top 5 Forex Trading Platforms

Choosing a best Forex trading platform is seemingly essential for Forex traders if they want to take every single opportunity to make profits. However, it is obvious that there are so many Forex trading platforms provided by variety of Forex companies and almost each of them has its own features. To be strict with, there are no two Forex traders trade alike, so they have to take their pick based on their own preference. It would be fine if you could figure out your first choice after referring to the next top 10 Forex trading platforms.

After much time and research I am proud to be able to bring you extensive reviews on each one of Forex trading platforms that are available. These reviews covered the basics of each platform and many of the more in-depth reasons of why these are the best out there. Finding the best Forex trading platform often times depends specifically on trader’s own desires.

Forex Trading Platform No.1: IKON Prodigy

Prodigy is IKON’s in house developed state of the art institutional platform equipped with a full range of products, tools and functions. It represents the next generation and cutting-edge technology in advanced trading. It is my top recommended Forex trading platform! Developers of IKON Prodigy learn from the pros of other excellent trading platforms.

1. Easy-to-use Quick Order
2. De-attach Screen Feature
3. Placing Orders in the Market Depth
4. Margin Netting
5. Stay Hedged
6. Select the Base Currency You Like
7. Customized and rapid Chart Intervals
8. Numerous currency pairs with various execution types involving a completely automated dealing desk

Rating: ★★★★★

Forex Trading Platform No.2: Easy Forex

Easy-Forex has been in the retail Forex business longer than most and they understand that individual traders have different needs and wants. That’s why they continue to evolve to ensure you can trade in a safe, informed and supported environment.

1. Easy to start.
2. Free practice account.
3. Personal Service.
4. Easy choice for every trader.
5. Security of funds.
6. 10% Bonus on your first deposit. *new*

Rating: ★★★★☆

Forex Trading Platform No.3: Etoro

EToro is the world’s largest investment network. As the leader in social trading, eToro provides a simple and enjoyable way to invest and trade in currencies, commodities and indices online. See who is trading what in real-time, follow the best performing traders and automatically copy what the best traders do. It’s the smarter way to trade. Perfect for both new and advance traders.

1. Beginner Friendly
2. CopyTrader application
3. Bonus Up to $10,000
4. USA Traders Accepted
5. Personal Trading Coaches
6. Allow Forex, CFDs, Indices & Commodity Trading
7. Web based & Downloadable Platform

Rating: ★★★★

Forex Trading Platform No.4: Plus 500

Most Forex traders would be impressed by Plus500, they give them the feeling they really want their business, especially with the bonuses they offer. All its pros are able to promise Forex traders quite enough security and hope of winning.

1. No commissions! – fixed spreads
2. Free time-unlimited demo trading platform
3. Leverage – up to 1:50
4. Advanced Technical Analysis Tools
5. Start funding your account with as little as $10, €10
6. Fund your account by credit card or wire transfer

Rating: ★★★☆

Forex Trading Platform No.5: Forex Yard

Forex Yard Forex trading platform allows people to get set up trading with an account as low as $100. What is more, it allows traders to begin quicker than with most Forex platforms.

1. EU Regulated broker
2. Bonus Up to $1000
3. Min. Deposit $100
4. Allow number of ways for AUTOMATE Trading
5. Various Type of Accounts To Choose From
6. Trading Allowed For Gold, Silver, Crude Oil, Platinum, Stock Indices & CFD
7. Free Currency Analysis & Personal Assistant

Rating: ★★★

Euro continues its sideways trend

Euro continues its sideways trend

EUR/USD: The euro is currently sitting 1.3173 on the .382 Fibo. Looking to continue down to the S4 and bounce on the trend wall back to the top. The short-term outlook is sideways. The medium-term outlook is slightly bullish. Long position can be continued with stop loss at 1.3095.

It is likely to find resistance at 1.3320 and support at 1.3095.

How Does It Work In Your Forex Trading

What is technical Forex analysis? To make it simple, it is what traders refer to as analyzing where the market is going next by checking past market data. Most traders use technical analysis to get a “big picture” on an investment’s price history. No Forex traders are able to just trade fundamentally.

Actually most technical analysts make a few key assumptions:

No.1: All Forex market fundamentals are reflected in price data. Moods, differing opinions, and other market fundamentals need not be studied.
History can repeat itself, often in regular, fairly predictable patterns. These patterns, generated by price movements, are called signals. A technical analyst’s goal is to uncover a current market’s signals by examining past market signals. Definitely that price fluctuations are not random and unpredictable. Once an up, down or sideways trend has been established, it usually will continue for a period.

No.2: Get in and get out – at the right time

Technical Forex analysis can add discipline and will not let his emotion have bad influence on his trading. It can be hard to screen out fundamental impressions and stick with your entry and exit points as planned. While no system is perfect, technical analysis helps you see your trading plan more objectively.

The above two are just the two key assumptions that most technical Forex traders often make in their trading. It is definitely true that technical Forex analysis is so important that it can never ignored by anybody in any situation. In other words, if you are a Forex beginner, it will always do you good if you understand technical Forex analysis well!

Forex Analysis GbpUsd

Pounds of short-term adjustment

                                                                      

GBP/USD: The pound reversed from a near three-month high and closed down on Wednesday, forming a bearish reversal in the process. The short-term outlook is sideways to slightly bearish. The medium-term outlook is sideways. We will keep watching the market. It is likely to find resistance at 1.5850 and support at 1.5720.

How to Practice Technical Analysis with a Forex Demo Account?

It is a great way to open a Forex demo account to practice technical analysis in the Forex market. A Forex demo account is extremely useful for practicing technical analysis. When you check out forex charts and recognize trends, the process is exactly the same as doing it with a Forex live account. However, there is a small psychological effect when you have a real live account, which is considered the fear that you might be missing out on a lucrative deal. This doesn’t exist when you practice on a Forex demo account.

The psychological impact is much stronger when you have a real account with an open position. Therefore, having a Forex demo account is an excellent simulation in the Technical Analysis stage. In addition, it is important that your broker supplies the exact same tools for trading with a demo account and a real live account. This refers to the trading tools, the charts, and whatever you think is necessary.

It is excellent to use your Forex demo account for technical analysis. Forex demo accounts can help traders learn how to make a successful analysis. For getting the best out of it, it’s important to write down your analysis, document it and save a record of it.

Euro continues its strong sideways trend

Hello followers!!

Today I am going to post an Analysis. Eur/Usd. I hope it help you to trade!!

Euro continues its strong sideways trend

EUR/USD: Near-term price action shows the pair under pressure, after several unsuccessful attempts at 1.32 barriers. Negative news from Greece, put additional pressure on Euro. Upside barriers at 1.3160, 20 day EMA / bear-trend line, are expected to cap for now. Waiting can be continued. It is likely to find resistance at 1.3237 and support at 1.3020.

Thanks and Good Luck!!

Fixed Forex Spread Can Help Secure Profitability of Your Forex Trading

As what I have mentioned in my previous article: Forex Pip and Spread-Synonym of Forex Broker’s Commissions, all brokers are able to benefit from spread. As they can affect the return of your Forex trading in a big way, Forex traders really need to fix a watchful eye on them. Spreads can vary based on the currencies you’re trading and what type of account you open. Most brokers will be offering different spreads for different currencies. The spreads will vary depending on the types of accounts. A mini account may have higher spreads than a full contract account.

It is important to realize that as the spread is the difference between bid prices and ask prices as determined by the free market they are not always guaranteed. So with a fluctuating market when the spreads widen, you will be charged with that wider spread. Spreads are tighter when there is good market liquidity but it will widen as liquidity dries up.

Forex spreads are only meaningful when they are supported with good execution. For example, when you find a tight spread, but your trade is filled a few pips in the wrong direction, or your transaction is rejected, you are in trouble.

It means that your broker is showing tight spreads but in effect delivering wider spreads. Be aware of such rejected trades, and delayed execution, which are strategies to deceive the traders.

In other words, the lower the spread your Forex broker provides the more opportunities you would have to benefit from your trading. Moreover, fix Forex spread can secure profitability to a large extent.

How Can Forex Traders Get a Good Forex Trading System?

It’s very important for Forex traders to find a great Forex trading system if they are exploring Forex trading or already trading. One aspect of the Forex trading system is considered the actual setup rules that often contain entry and exit techniques. However, Forex traders spend a lot of time developing these setup rules but neglecting other aspects, such as relative size of their profits compared to losses. Therefore, it’s important for traders to find a great Forex trading system.

How can Forex traders find a good Forex trading system? Many times, the original trading system should be expanded, which can include things that were neglected or forgotten. Traders who search for the best system may choose to modify existing Forex trading systems. There are some places where traders can find the whole package without any need for modification. In addition, there are many free systems that can be found in books or other websites.

Forex traders can try to create original systems themselves. There may be some other trading systems that are similar to it as it’s a culmination of years of exposure to other trading systems. As we mentioned earlier, it is a good way to modify someone else’s trading system and then make it their own.

How Can Traders Make Money When Trading Forex?

Forex beginners often have the wrong ideas about making money in the Forex market when they first start Forex trading. Many Forex beginners think that they can quickly start making money after opening up their Forex live accounts. Other traders think that they can just purchase the best Forex trading robot or Forex trading system to get rich quickly. However, the reality is a bit different.

There are some points you need to know about making money in the Forex market. First of all, you should focus on making consistent money, rather than obtaining huge gains followed by huge losses. If you realize that your equity curves look like a piece of abstract art, this means that you simply don’t manage your risk effectively. Also, you probably don’t understand risk reward and over-trade in the Forex market.

This can bring about periods of large winnings followed by periods of even larger losses. This might typically happen until you tend to blow out your trading account. Many Forex traders may wonder how could this happen in the Forex market? The basic reason is that most traders are trading Forex emotionally. Forex Traders who trade Forex emotionally are unable to make consistent money since their emotions are not consistent. If you want to make money in the Forex market, you must constantly be aware of your emotions and make sure your trading routine is consistent, which can reflect your consistent mindset.

What is Forex and How to Make Money with It?

It is definite that all Forex traders want to make their trades successful, but how can they figure out where the Forex market is going next? Surly it is a must for traders to have a rather deep understanding about Forex technical analysis. However, traders may find that although they fully apply every single principle of Forex technical analysis, they sometimes go wrong. Why does this happen?

The reason is that they forgot to take the fast changing circumstances of the Forex market into consideration. Yeah, the market is always influenced badly by Forex news like economic reports, central bank chairman’s speech and so on; ignoring those will surly lead to false decisions and may bring disaster to Forex traders. Therefore, paying close attention to the latest Forex news is essential for traders if they are eager to achieve success. Then where can they go for it?

Herein I am going to list 5 top resources of the latest Forex news that are undated often that Forex traders need to be aware of.
Resource Review Rating
Reuters It is by far the most reliable Forex news resource across the global.
Bloomberg It is another reliable Forex news provider; its categorization in regions helps in finding important international news.
Forbes.com Breaking News It provides free news from paid sources.
CNBC It provides high quality articles especially for Forex traders.
Business Week It provides very professional analysis, but a little old-fashioned.
In the end, I need to mention that all Forex traders need to note the timeline of the Forex news you read. Keep a clear mind that whether it has occurred and whether it is a rumor, and then adjust trading strategy.