Thursday, May 30, 2013

What is a trend-following market condition?

In approximately 30 percent of the trading time is the market trend-following; a trend-following market is a market where there is a trend in the price pattern; an example is the pattern in the image

Market condition and indicators
As a service the online trading platforms (an example of a trading platform is Plus500 ) offer indicators to predict the market pattern; some indicators are more useful in a trend-following market and others are more useful in a trend-fading market (link); which indicators fit the two market conditions are in the article “Trade Forex with Indicators” more intensity described.

Plus500 and the 25 Euro bonus
In the posts is the trading Platform Plus500 mentioned as an example of an online trading platform; just for signing up at the platform is a 25 Euro bonus; on the platform are a lot of indicators on hand at the f(X) button above the currency pair graph.

Video in English
More information about Plus500 is on this link to plus500. Please notice that your capital may be at risk trading CFD.


What is a trend-fading market condition?

The Forex market is the most of the time in a fading-market condition; in fact is the market in a fading condition approximately 70 percent of the trading time; a fading market is when the price pattern rise to an extreme high level or reverse to an extremely low and then return to a realistic level 

The image is an illustration of a fading-market condition where the price move to an extreme high and return to a realistic level and then moves to an extreme low and return to a realistic level.
Market condition and indicator
Some of the indicators the trading platforms (an example of a trading platform is Plus500) offer is better indicators in a trend-fading market than in a trend-following market and vice versa. In the article “Trade Forex with Indicators” is more written about which indicators and which markets condition they fit best in.

Plus500 and the 25 Euro bonus
Plus500 is a simple and user-friendly trading platform; download the platform and receive a 25 Euro bonus; no deposit is required to get the 25 Euro bonus.

Information about the trading platform is available in different languages; it only takes a few minutes to download; the indicators are at the f (x) button above the currency pair graph on the trading platform.

Video in English  
More information about Plus500  is on this link to plus500. Please notice that your capital may be at risk trading CFD.


Thursday, May 23, 2013

Trading the Crown or trading head and shoulders

Trading the Crown or trading head and shoulder is useful when the pattern is formed as two shoulders and a head as the image illustrates
In the videos I found on YouTube is the head and shoulder pattern explained by a fellow; in the first video is the pattern explained and in the second video is the use of the head and shoulder pattern explained.






More information
More information about the head and shoulder pattern is on this link; on the link is also information about the neckline.

Wednesday, May 15, 2013

Trailing stop: What is a Trailing Stop?


A trailing stop is a stop loss set in a trade to prevent a loss in a trade; in my post “How easy it is to trade - Step by step - And how to minimize risk in a trade” is the figure explained; the post is divided into steps and the trailing stop is explained in step 4.