Hello All,
As per request, a new whatsapp group has just been created for up-to-the-minute update . Kindly add me up on whatsapp and request to be added to the group. Don't post your phone numbers here please.

Lectures so far are still directed towards those that want to become FX traders, I will still update us on how to profit from the Forex market even if you are not a trader.

FOREX IS NOT GAME, FOREX IS FUTURE ! I have a dream that one day 70% of the population will be earning from FOREX and employers of labour will beg to get employees.

Thanks

What of those that are not on whatsapp

"It's no secret most retail forex traders lose money," says one top private fund manager in London.
"What is a secret is that the reason they are losing money is because they are told to look at the wrong charts;" he said.
"And because the basis of every decision they make as a trader is wrong, they find it almost impossible to win consistently."

How to Use Bollinger Bands

Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation. Just like in trading, some trading tools and indicators are best used in particular environments or situations. So, the more tools you have, the better you can adapt to the ever-changing market environment.

Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Band or Moving Average expert.

There are a million different ways to grab some pips! For this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours. You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and comfortable enough to master on its own. Now, enough about tools already!
Let’s get started!


Bollinger Bands
Bollinger Bands, a chart indicator developed by John Bollinger, are used to measure a market’s volatility.Basically, this little tool tells us whether the market is QUIET or whether the market is LOUD! When the market is QUIET, the bands contract and when the market is LOUD, the bands expand.Notice on the chart below that when price is quiet, the bands are close together. When price moves up, the bands spread apart.

That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Band, how it is calculated, the mathematical formulas behind it, and so on and so forth, but you really didn’t really need all that.

In all honesty, you don’t need to know any of that junk. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.
Note: If you really want to learn about the calculations of a Bollinger Band, then you can go to www.bollingerbands.com.

@OP ANY MORE UPDATE SIR

The Bollinger Bounce
One thing you should know about Bollinger Bands is that price tends to return to the middle of the bands. That is the whole idea behind the Bollinger bounce. By looking at the chart below, can you tell us where the price might go next?

If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands.

What you just saw was a classic Bollinger Bounce. The reason these bounces occur is because Bollinger bands act like dynamic support and resistance levels. The longer the time frame you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. Now let’s look at a way to use Bollinger Bands when the market does trend.

Bollinger Squeeze
The Bollinger Squeeze is pretty self-explanatory. When the bands squeeze together, it usually means that a breakout is getting ready to happen.If the candles start to break out above the top band, then the move will usually continue to go up. If the candles start to break out below the lower band, then price will usually continue to go down.

Looking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go?

If you said up, you are correct again! This is how a typical Bollinger Squeeze works. This strategy is designed for you to catch a move as early as possible. Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.

so. how can we make money without trading fx.

thanks for the update @abbeyfx

i cant wait to start fully

following you bumper to bumper

Good,i love swing trades i hope i can develop something out of this.

mohlanforex:
so. how can we make money without trading fx.

We will still get there.

How to Use the MACD Indicator

MACD is an acronym for Moving Average Convergence Divergence. This tool is used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, our top priority in trading is being able to find a trend, because that is where the most money is made.

With a MACD chart, you will usually see three numbers that are used for its settings.
 The first is the number of periods that is used to calculate the faster moving average.
 The second is the number of periods that is used in the slower moving average.
 And the third is the number of bars that is used to calculate the moving average of the difference between the faster and slower moving averages.

For example, if you were to see “12, 26, 9″ as the MACD parameters (which is usually the default setting for most charting packages), this is how you would interpret it:
 The 12 represents the previous 12 bars of the faster moving average.
 The 26 represents the previous 26 bars of the slower moving average.
 The 9 represents the previous 9 bars of the difference between the two moving averages. This is plotted by vertical lines called a histogram (the green lines in the chart above).

There is a common misconception when it comes to the lines of the MACD. The two lines that are drawn are NOT moving averages of the price. Instead, they are the moving averages of the DIFFERENCE between two moving averages.;/

In our example above, the faster moving average is the moving average of the difference between the 12 and 26-period moving averages. The slower moving average plots the average of the previous MACD line. Once again, from our example above, this would be a 9-period moving average.

This means that we are taking the average of the last 9 periods of the faster MACD line and plotting it as our slower moving average. This smoothens out the original line even more, which gives us a more accurate line. The histogram simply plots the difference between the fast and slow moving average. If you look at our original chart, you can see that, as the two moving averages separate, the histogram gets bigger.

This is called divergence because the faster moving average is “diverging” or moving away from the slower moving average. As the moving averages get closer to each other, the histogram gets smaller. This is called convergence because the faster moving average is “converging” or getting closer to the slower moving average.

And that is how you get the name, Moving Average Convergence Divergence! Ok, so now you know what MACD does. Now I’ll show you what MACD can do for YOU.

How to Trade Using MACD

Because there are two moving averages with different “speeds”, the faster one will obviously be quicker to react to price movement than the slower one.When a new trend occurs, the fast line will react first and eventually cross the slower line. When this “crossover” occurs, and the fast line starts to “diverge” or move away from the slower line, it often indicates that a new trend has formed.

From the chart above, you can see that the fast line crossed under the slow line and correctly identified a new downtrend. Notice that when the lines crossed, the histogram temporarily disappears. This is because the difference between the lines at the time of the cross is 0. As the downtrend begins and the fast line diverges away from the slow line, the histogram gets bigger, which is good indication of a strong trend.
Let’s take a look at an example.

In EUR/USD’s 1-hour chart above, the fast line crossed above the slow line while the histogram disappeared. This suggested that the brief downtrend would eventually reverse. From then, EUR/USD began shooting up as it started a new uptrend. Imagine if you went long after the crossover, you would’ve gained almost 200 pips!

There is one drawback to MACD. Naturally, moving averages tend to lag behind price. After all, it’s just an average of historical prices. Since the MACD represents moving averages of other moving averages and is smoothed out by another moving average, you can imagine that there is quite a bit of lag. However, MACD is still one of the most favored tools by many traders.

abbeyforex:
In EUR/USD’s 1-hour chart above, the fast line crossed above the slow line while the histogram disappeared. This suggested that the brief downtrend would eventually reverse. From then, EUR/USD began shooting up as it started a new uptrend. Imagine if you went long after the crossover, you would’ve gained almost 200 pips!

There is one drawback to MACD. Naturally, moving averages tend to lag behind price. After all, it’s just an average of historical prices. Since the MACD represents moving averages of other moving averages and is smoothed out by another moving average, you can imagine that there is quite a bit of lag. However, MACD is still one of the most favored tools by many traders.

tHANKS FOR THE UPDATE SIR

How to Use Parabolic SAR

Up until now, we’ve looked at indicators that mainly focus on catching the beginning of new trends. Although it is important to be able to identify new trends, it is equally important to be able to identify where a trend ends. After all, what good is a well-timed entry without a well-timed exit?

One indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And Reversal). A Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement.
From the image above, you can see that the dots shift from being below the candles during the uptrend to above the candles when the trend reverses into a downtrend.

How to Trade Using Parabolic SAR

The nice thing about the Parabolic SAR is that it is really simple to use. We mean REALLY simple.
Basically, when the dots are below the candles, it is a buy signal.
When the dots are above the candles, it is a sell signal.

This is probably the easiest indicator to interpret because it assumes that the price is either going up or down. With that said, this tool is best used in markets that are trending, and that have long rallies and downturns.

You DON’T want to use this tool in a choppy market where the price movement is sideways.

Using Parabolic SAR to exit trades

You can also use Parabolic SAR to help you determine whether you should close your trade or not.
Check out how the Parabolic SAR worked as an exit signal in EUR/USD’s daily chart above.

When EUR/USD started sliding down in late April, it seemed like it would just keep dropping like it’s hot. A trader who was able to short this pair has probably wondered how low it can go. In early June, three dots formed at the bottom of the price, suggesting that the downtrend was over and that it was time to exit those shorts.

If you stubbornly decided to hold on to that trade thinking that EUR/USD would resume its drop, you would’ve probably erased all those winnings since the pair eventually climbed back near 1.3500.

How to Use RSI (Relative Strength Index)

Relative Strength Index, or RSI, is similar to the stochastic in that it identifies overbought and oversold conditions in the market. It is also scaled from 0 to 100. Typically, readings below 30 indicate oversold, while readings over 70 indicate overbought.


ANY QUESTION ?

To those that have been asking me privately when account will be opened for them so that they can start practising what they have learnt, Let me make it clear that in Forex STEADY DOES IT.

Account will still be opened,it is then I will introduce us to how to benefit from the Forex Market without trading. Let us finish the theoretical aspect first,all the theory will still be inculcated into the practical MONEY MAKING

FOREX (The Ultimate Money Making Machine).

abbeyforex:
To those that have been asking me privately when account will be opened for them so that they can start practising what they have learnt, Let me make it clear that in Forex STEADY DOES IT.

Account will still be opened,it is then I will introduce us to how to benefit from the Forex Market without trading. Let us finish the theoretical aspect first,all the theory will still be inculcated into the practical MONEY MAKING

FOREX (The Ultimate Money Making Machine).

THANK YOU SIR FOR TAKING YOUR TIME TO EXPLAIN FOREX.

I REALLY APPRECIATE YOUR EFFORT

Following oh

How to Use RSI (Relative Strength Index)

Relative Strength Index, or RSI, is similar to the stochastic in that it identifies overbought and oversold conditions in the market. It is also scaled from 0 to 100. Typically, readings below 30 indicate oversold, while readings over 70 indicate overbought.

How to Trade Using RSI

RSI can be used just like the stochastic. We can use it to pick potential tops and bottoms depending on whether the market is overbought or oversold.
Below is a 4-hour chart of EUR/USD.

EUR/USD had been dropping the week, falling about 400 pips over the course of two weeks. On June 7, it was already trading below the 1.2000 handle. However, RSI dropped below 30, signaling that there might be no more sellers left in the market and that the move could be over. Price then reversed and headed back up over the next couple of weeks.

Determining the Trend using RSI

RSI is a very popular tool because it can also be used to confirm trend formations. If you think a trend is forming, take a quick look at the RSI and look at whether it is above or below 50.If you are looking at a possible uptrend, then make sure the RSI is above 50. If you are looking at a possible downtrend, then make sure the RSI is below 50.

In the beginning of the chart below, we can see that a possible downtrend was forming. To avoid fake outs, we can wait for RSI to cross below 50 to confirm our trend. Sure enough, as RSI passes below 50, it is a good confirmation that a downtrend has actually formed.

Following...very captivating

Trading with Multiple Chart Indicators

Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples. Better yet, let’s combine some of these indicators and see how their trade signals pan out. In a perfect world, we could take just one of these indicators and trade strictly by what that indicator told us.

The problem is that we DON’T live in a perfect world, and each of these indicators has imperfections.

That is why many traders combine different indicators together so that they can “screen” each other. They might have 3 different indicators and they won’t trade unless all 3 indicators give them the same signal.

In this first example, we’ve got the Bollinger bands and the Stochastic on EUR/USD’s 4-hour chart. Since the market seems to be ranging or moving sideways, we’d better watch out for the Bollinger bounce.