Forex Trading Software - Forex Trading System

Trading against the wave of price movement can be fraught with danger and very risky

. The reason being is you are going against the momentum, the trend, or the crowd. The thing with any move in any direction in the forex markets, or any market for that matter, is that eventually, it will come to an end. All price moves in the currency trading markets whether up or down eventually turn around, either for a brief move in the opposite direction to continue on its way in the same direction, completely reverse and go in the opposite direction or bounce around sideways.

Click to Get Best Forex Automatic Trading Robots There are many ways to identify whether a setup is ready for a counter trend method. One such way is to use indicators that show overbought or oversold conditions. Such Popular indicators are oscillators where price action is represented with lines that move from 0-100 depending on what price does. The closer the oscillator is to 0, the more prices represent an oversold condition and could be ready to reverse. Conversely, as the oscillator approaches 100, the greater the opportunity that price is in an overbought condition and maybe likely to stall or reverse. Some such indicators that express overbought or oversold conditions are the popular stochastic or the rsi or relative strength index indicators. Both indicators are represented by a line that fluctuates between levels that the user can place on their chart to determine where price is relative to past price history. The problem with these indicators, as with all indicators, is that even though it shows a possible or overbought signal, there is no guarantee price will reverse. Using them with in conjunction with another indicator can help in confirmation of a impending reverse. Another such popular indicator is Bollinger Bands. These bands show a series of lines or bands that indicate a price range based on previous price data. If price breaks through those bands, it could be an indication that price has moved away from its price ranges. Eventually, price will come back within those bands, but when is the secret. Another way of using these indicators is looking for a divergence. What that means is as price may be making new highs, the indicator is making lower highs. This divergence between price and the indicator is a great way to show an impending reverse in direction.

Click to Get Best Forex Automatic Trading Robots But, there is no substitute in using price action as your indicator in showing you what may happen. As price is making a new high, the following price bars making lows that go past previous bars highs as a fairly good indication that price is making a reverse in direction. But knowing how to identify this phenomenon is the trick isn't it. Once one can see this setup of price action, it is actually very simple to spot and profits can be made very quickly. One such method that identifies a reverse in price is the spring method in the forex course, Forex Time Machine. The Forex Time Machine by Bill Poulos is a 3 tiered trading program that has 3 separate systems that trades all stages of a forex market. It has a breakout method that captures breakout from price congestion, a trend following system that can enter into a trending market and a counter trend method or the spring method as previously mentioned here. The spring method is looking price to make a higher high or lower low. It then uses a moving average and another indicator called the adx for verification of a setup. If all of these settings are in harmony, there is a valid trade setup.

Click to Get Best Forex Automatic Trading Robots

Forex Trading Software - Forex Trading System

By: Viy Aita

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