morgan2p:
my oga out of all the Forex Market Analysis which do you advise a newbies to use

All ! I said all because there is synergistic advantage in using all.

Lets take the Fundamental analysis one after the other.

Types of Forex Charts and How to Read Them
Let’s take a look at the three most popular types of forex charts:
1. Line chart
2. Bar chart
3. Candlestick chart

Line Charts
A simple line chart draws a line from one closing price to the next closing price. When strung together with a line, we can see the general price movement of a currency pair over a period of time.

Bar Charts

A bar chart is a little more complex. It shows the opening and closing prices, as well as the highs and lows. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid.The vertical bar itself indicates the currency pair’s trading range as a whole.

The horizontal hash on the left side of the bar is the opening price, and the right-side horizontal hash is the closing price.
Bar charts are also called “OHLC” charts, because they indicate the Open, the High, the Low, and the Close for that particular currency. Here’s an example of a price bar:

Candlesticks Charts

Candlestick charts show the same price information as a bar chart, but in a prettier, graphic format. Candlestick bars still indicate the high-to-low range with a vertical line. However, in candlestick charting, the larger block (or body) in the middle indicates the range between the opening and closing prices. Traditionally, if the block in the middle is filled or colored in, then the currency pair closed lower than it opened. In the following example, the ‘filled color’ is black. For our ‘filled’ blocks, the top of the block is the opening price, and the bottom of the block is the closing price. If the closing price is higher than the opening price, then the block in the middle will be “white” or hollow or unfilled.

The purpose of candlestick charting is strictly to serve as a visual aid, since the exact same information appears on an OHLC bar chart. The advantages of candlestick charting are:
 Candlesticks are easy to interpret, and are a good place for beginners to start figuring out forex chart analysis.
 Candlesticks are easy to use! Your eyes adapt almost immediately to the information in the bar notation. Plus, research shows that visuals help with studying, so it might help with trading as well!
 Candlesticks are good at identifying market turning points – reversals from an uptrend to a downtrend or a downtrend to an uptrend.


Before I call it off for today,I will want you to open a Forex Demo account because we are about entering into the practical section. i will create a platform where we can be doing up to the minute update and practical information that may require posting links and you know we can do that here. I will want suggestion if it should be whatsapp group or Skype. We need this so as to be able to view files and links.

Any question ?

whatssapp group ohh

Thanks so much for this great lessons. My suggestion is that whatsapp group is better but I don't want to drop my # here.

I vote for whatsapp group.

Please no one should drop his/her phone number on the thread again. Go to my signature and add me up on whatsapp.

Is it possible to trade with a tablet pc or an android phone

abbeyforex:
Please no one should drop his/her phone number on the thread again. Go to my signature and add me up on whatsapp.

. OK. Sir

Following. Those people shouting whatsapp group just want to kill this thread! Op please remain focused.

hello, can i use investing.com technical summary to trade forex

folaschool:
hello, can i use investing.com technical summary to trade forex

Yes ! Based on if you know the interpretation and application

I have open a forex demo account. We are waiting for the next update sir

First of all,I want apologize for being off this thread,it was due to loads of work on hand .

Forex Support and Resistance
Support and resistance is one of the most widely used concepts in forex trading. Strangely enough, everyone seems to have their own idea on how you should measure forex support and resistance.Let’s take a look at the basics first.

L[b]ook at the diagram below[/b]. As you can see, this zigzag pattern is making its way up (bull market). When the forex market moves up and then pulls back, the highest point reached before it pulled back is now resistance.As the market continues up again, the lowest point reached before it started back is now support. In this way, resistance and support are continually formed as the forex market oscillates over time. The reverse is true for the downtrend.

Plotting Forex Support and Resistance
One thing to remember is that support and resistance levels are not exact numbers.Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick charts, these “tests” of support and resistance are usually represented by the candlestick shadows.


Notice how the shadows of the candles tested the 1.4700 support level. At those times it seemed like the market was “breaking” support. In hindsight we can see that the market was merely testing that level.

I have been following boss, carry on...

Other interesting tidbits about forex support and resistance:
 When the price passes through resistance, that resistance could potentially become support.
 The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
 When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding.

With a little practice, you’ll be able to spot potential forex support and resistance areas easily. In the next lesson, we’ll teach you how to trade diagonal support and resistance lines, otherwise known as forex trend lines.

Weldone sir

Before I call it off for today,I will want you to open a Forex Demo account because we are about entering into the practical section. i will create a platform where we can be doing up to the minute update and practical information that may require posting links and you know we can do that here. I will want suggestion if it should be whatsapp group or Skype. We need this so as to be able to view files and links.
Any question ?
[/quote]

Good evening, Pls how did the wassap group go? As I'm yet to open my own demo account.
How do I open a demo account and has the group been created yet?

Trend Lines

Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well.If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way around.

In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas (valleys). In a downtrend, the trend line is drawn along the top of easily identifiable resistance areas (peaks).To draw forex trend lines properly, all you have to do is locate two major tops or bottoms and connect them.

Here are trend lines in action! Look at those waves below!

Types of Trends[

There are three types of trends:
1. Uptrend (higher lows)
2. Downtrend (lower highs)
3. Sideways trends (ranging)

Here are some important things to remember using trend lines in forex trading:

 It takes at least two tops or bottoms to draw a valid trend line but it takes THREE to confirm a trend line.
 The STEEPER the trend line you draw, the less reliable it is going to be and the more likely it will break.
 Like horizontal support and resistance levels, trend lines become stronger the more times they are tested.
 And most importantly, DO NOT EVER draw trend lines by forcing them to fit the market. If they do not fit right, then that trend line isn’t a valid one!
How to Trade Support and Resistance
Now that you know the basics, it’s time to apply these basic but extremely useful technical tools in your trading. Because we want to make things easy to understand, we have divided how to trade support and resistance levels into two simple ideas: the Bounce and the Break.

The Bounce
As the name suggests, one method of trading support and resistance levels is right after the bounce.Many retail forex traders make the error of setting their orders directly on support and resistance levels and then just waiting to for their trade to materialize. Sure, this may work at times but this kind of trading method assumes that a support or resistance level will hold without price actually getting there yet.

You might be thinking, “Why don’t I just set an entry order right on the line? That way, I am assured the best possible price.”When playing the bounce, we want to tilt the odds in our favor and find some sort of confirmation that the support or resistance will hold.

Instead of simply buying or selling right off the bat, wait for it to bounce first before entering. By doing this, you avoid those moments where price moves fast and break through support and resistance levels. From experience, catching a falling knife when trading forex can get really bloody…

The Break
In a perfect world, support and resistance levels would hold forever. In a perfect forex trading world, we could just jump in and out whenever price hits those major support and resistance levels and earn loads of money. The fact of the matter is that these levels break often.
So, it’s not enough to just play bounces. You should also know what to do whenever support and resistance levels give way!There are two ways to play breaks in forex trading: the aggressive way or the conservative way.

The Aggressive Way
The simplest way to play breakouts is to buy or sell whenever price passes convincingly through a support or resistance zone. The key word here is convincingly because we only want to enter when price passes through a significant support or resistance level with ease.

The Conservative Way
Imagine this hypothetical situation: you decided to go long EUR/USD hoping it would rise after bouncing from a support level. Soon after, support breaks and you are now holding on to a losing position, with your account balance slowly falling.

Do you…

A. Accept defeat, get the heck out, and liquidate your position? Or
B. Hold on to your trade and hope price rises up again?
If your choice is the second one, then you will easily understand this type of forex trading method. Remember, whenever you close out a position, you take the opposite side of the trade. Closing your EUR/USD long trade at or near breakeven means you will have to short the EUR/USD by the same amount.

Now, if enough selling and liquidation of losing positions happens at the broken support level, price will reverse and start falling again. This phenomenon is the main reason why broken support levels become resistance whenever they break.As you would’ve guessed, taking advantage of this phenomenon is all about being patient. Instead of entering right on the break, you wait for price to make a “pullback” to the broken support or resistance level and enter after the price bounces.


A few words of caution… IN FOREX, THIS DOES NOT HAPPEN ALL THE TIME. “RETESTS” OF BROKEN SUPPORT AND RESISTANCE LEVELS DO NOT HAPPEN ALL THE TIME. THERE WILL BE TIMES THAT PRICE WILL JUST MOVE IN ONE DIRECTION AND LEAVE YOU BEHIND. BECAUSE OF THIS, ALWAYS USE STOP LOSS ORDERS AND NEVER EVER HOLD ON TO A TRADE JUST BECAUSE OF HOPE.

Nice quote

Fibonacci Trading

We will be using Fibonacci ratios a lot in our trading. Fibonacci is a huge subject and there are many different Fibonacci studies with weird-sounding names but we’re going to stick to two: retracement and extension.

Leonardo Fibonacci was a famous Italian mathematician. He had a moment when he discovered a simple series of numbers that created ratios describing the natural proportions of things in the universe. The ratios arise from the following number series: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…

This series of numbers is derived by starting with 0 followed by 1 and then adding 0 + 1 to get 1, the third number. Then, adding the second and third number (1 + 1) to get 2, the fourth number, and so on. After the first few numbers in the sequence, if you measure the ratio of any number to the succeeding higher number, you get .618. For example, 34 divided by 55 equals .618.If you measure the ratio between alternate numbers you get .382. For example, 34 divided by 89 = 0.382 and that’s as far as into the explanation as we’ll go. These ratios are called the “golden mean”.

Fibonacci Retracement Levels
0.236, 0.382, 0.500, 0.618, 0.764

Fibonacci Extension Levels
0, 0.382, 0.618, 1.000, 1.382, 1.618

You won’t really need to know how to calculate all of this. Your charting software will do all the work for you.However, it’s always good to be familiar with the basic theory behind the indicator so you’ll have the knowledge.

Traders use the Fibonacci retracement levels as potential support and resistance areas. Since so many traders watch these same levels and place buy and sell orders on them to enter trades or place stops, the support and resistance levels tend to become a self-fulfilling prophecy.

Traders use the Fibonacci extension levels as profit taking levels. Again, since so many traders are watching these levels to place buy and sell orders to take profits, this tool tends to work more often than not due to self-fulfilling expectations.

Finding Fibonacci Retracement Levels
In order to find these Fibonacci retracement levels, you have to find the recent significant Swing Highs and Swings Lows. Then, for downtrends, click on the Swing High and drag the cursor to the most recent Swing Low.For uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High.

Now, let’s take a look at some examples on how to apply Fibonacci retracements levels to the currency markets.

Uptrend

Here we plotted the Fibonacci retracement levels by clicking on the Swing Low at .6955 on April 20 and dragging the cursor to the Swing High at .8264 on June 3. The software magically shows you the retracement levels.As you can see from the chart, the Fibonacci retracement levels were .7955 (23.6%), .7764 (38.2%), .7609 (50.0%), .7454 (61.8%), and .7263 (76.4%).
This is a daily chart of AUD/USD.

Now, the expectation is that if AUD/USD retraces from the recent high, it will find support at one of those Fibonacci retracement levels because traders will be placing buy orders at these levels as price pulls back. Now, let’s look at what happened after the Swing High occurred.

Price pulled back right through the 23.6% level and continued to shoot down over the next couple of weeks. It even tested the 38.2% level but was unable to close below it.
Later on, around July 14, the market resumed its upward move and eventually broke through the swing high. Clearly, buying at the 38.2% Fibonacci level would have been a profitable long term trade!

Downtrend
Now, let’s see how we would use the Fibonacci retracement tool during a downtrend. Below is a 4-hour chart of EUR/USD.

As you can see, we found our Swing High at 1.4195 on January 25 and our Swing Low at 1.3854 a few days later on February 1. The retracement levels are 1.3933 (23.6%), 1.3983 (38.2%), 1.4023 (50.0%), 1.4064 (61.8%) and 1.4114 (76.4%).
The expectation for a downtrend is that if price retraces from this low, it could possibly encounter resistance at one of the Fibonacci levels because traders who want to play the downtrend at better prices may be ready with sell orders there.

Let’s take a look at what happened next.

The market did try to rally, stalled below the 38.2% level for a bit before testing the 50.0% level. If you had some orders either at the 38.2% or 50.0% levels, you would’ve made some mad pips on that trade.

In these two examples, we see that price found some temporary forex support or resistance at Fibonacci retracement levels. Because of all the people who use the Fibonacci tool, those levels become self-fulfilling support and resistance levels.

One thing you should take note of is that price won’t always bounce from these levels. They should be looked at as areas of interest.

For now, there’s something you should always remember about using the Fibonacci tool and it’s that they are not always simple to use! If they were that simple, traders would always place their orders at Fibonacci retracement levels and the markets would trend forever.


Any Question(s)?

Fibonacci Retracement is NOT Foolproof

Earlier in our study, we said that support and resistance levels eventually break. Well, seeing as how Fibonacci levels are used to find support and resistance levels, this also applies to Fibonacci! Fibonacci retracements do NOT always work! They are not foolproof. Let’s go through an example when the Fibonacci retracement tool fails.

Below is a 4-hour chart of GBP/USD. Here, you see that the pair has been in downtrend, so you decided to take out your Fibonacci retracement tool to help you spot a good entry point. You use the Swing High at 1.5383, with a swing low at 1.4799.
You see that the pair has been stalling at the 50.0% level for the past couple of candles. You short at market and start day dreaming.

Now, if you really did put an order at that level, not only would your dreams go up in smoke, but your account would take a serious hit if you didn’t manage your risk properly!
Take a look at what happened.

It turns out that that Swing Low was the bottom of the downtrend and market began to rally above the Swing High point.