However, it actually isn’t that hard to figure things out and get going. Here’s a short introduction that will give you the basics on forex charts online and the signals for when you ought to enter or exit the market. Let’s make forex easy. 

For starters, you should understand what a chart tells you. Forex is based on trading currency pairs—the value between two currencies. Of course you can choose from almost any currency combination, but every pair will look something like this: 

EUR/USD 1.3473 

You simply read this as the number of dollars that are required by buy a euro. Were it switched (USD/EUR) you would read it as the number of euros to buy a dollar (.7421). 

Forex charts represent this as it changes over time—just like you might have seen with the value of stocks. Where this gets interesting is the choice you have on time frame. Some traders stay on the level of 5 minutes and trade the minor variations on a currency. Others focus on the wide range of several days, hoping for a gradual rise or fall in value. Most focus on a range somewhere in between. 

Of course, there is a whole array of other charts representing various statistical values. Some of the most useful are charts that give you a moving average. In other words, you can see what a currency pair has been worth as an average over the last few hours, days, months, or more. Some of the other charts are worth learning as you progress, such as ADX (average directional index) or TRIX (a momentum indicator). 

That moves us to signals. The simplest way to make money in forex is by finding and profiting from trends—directions that the market takes and follows for a given period of time. You want to predict when a trend is coming and buy in; you hold on and sell right at the end of the trend for maximum profit. The great thing about forex is that this could be an upward or downward trend and you will still make money if you buy the right thing at the right time. 

So let’s say that I have a hunch that EUR/USD is headed up (the euro is getting stronger). I’ll buy euros just before the trend and sell them at the top. If it heads back down, I’ll buy dollars at the top and sell at the bottom. I can literally make money going both directions. 

The purpose of signals is to make this objective. Hunches are okay, but I might mislead myself. Enter and exit signals give me something specific to look for and tell me what to do. 

The simplest way to find signals is with the cross over method. Here’s where things can get a little more involved. Use a longer term moving average chart (perhaps 1 week) and a short term average chart (perhaps 2 hours). If the short term average is below the longer term, you know that prices are temporarily down. But if the short term crosses over the other chart from below, it is generally the beginning of an upward trend. The same can work in reverse—a short term average might cross over the longer average from above, signaling that a downward trend is in the works. 

To take this to the next level, there are statistical ways of deciding how seriously to regard what you think you see. For instance, ADX and MACD tell you how forceful a new trend is and whether you should expect it to continue. Look for these numbers to be somewhere around 30-40. 

Another excellent tool that is much simpler to find is volume. This is not concerned with price, but the amount of money that is changing hands at a given time. If a trend is really significant, look for a big change in volume—particularly conspicuous increases in volume at the beginning of an upward trend. 

Finally, there advanced tools for buy or sell signals, such as Fibonacci Retracement and price candles. If you have mastered the other methods listed here, look for a guide to these analytical tools. 

There is no reason to be intimidated by forex charts and signals. Try to learn step by step and add a new tool to your box every few weeks. With a little work, you’ll start seeing significant results in your profits.

A:  I think I’m understanding you correctly that you are short, right? You did this essentially at the lows today, correct?
RSI and MACD are both showing positive divergence, and had already begun to turn up before that steep decline.
You are reacting, not anticipating. For example, the .618 Fib level is the place to go short, not reference three days later after a 150 pip decline.
A 200 MA is a refernce point, not a support or resistance level.
MACD and RSI are both Momentum indicators. They cannot be used to confirm each other. Pick one, but do not call this two reasons. They both show the same thing in different ways.
You will learn also to never, ever trade on a hard drop like that. I had to develop my own rule, that I’ve never seen anywhere else “Never trade on long bars.” These are exhaustion bars, or at the very least, places the market will pause. Wait until the market resumes after one of these shakeouts. Trade the retracement in the direction of the trend, and you lower your risk considerably.
In this case, if you would have entered short off of the first bounce, with a stop outside the top of this small rally (stop above your second yellow horizontal line — .50 Fib?), you would have taken a very small hit, probably one-third of what you are now looking at losing. But instead, when you trade a long bar, where do you put your stop, except a mile away. Huge risk! Why accept that kind of risk. Look for low risk trades, not huge risk.
Out of all of the signals you’ve given, you don’t seem to recognize that these are the points at which the trade is intiated. If you’re going to use a 200MA as a trading signal, then trade there, not 60 pips later. Or trade it the second time it bounced off of it and failed there.
If you are going to draw a Fib line, and it bounces off, then trade! That IS the trade. Or trade the next retracement and breakdown of support. Where does it say to wait several hours?
The other problem is that you picked the strongest pair of the bunch to go short.
It’s like trading with the trend. You’re only short in Downtrends. But what is the trend here? Depends on the timeframe, doesn’t it?
Same thing when picking the pair to trade. Short the weak ones, not the strong ones.
Yet another problem is that you traded a news event, without recognizing that each cause or effect produces different results. Britain came out with some disappointing news last night, causing a 100 pip decline by morning. If you’re going to trade the news, in the direction of the news, then you should trade at the “time” of the news, not several hours later after a 100 pip decline.
If you look back at all of the news releases, whether currencies or stock market, 90% of them are a simple blip on the screen, affecting nothing except in the very short term, incredibly insignificant, then the market resumes whatever it was doing. If you’re going to jump into the middle of a situation, you better know the rules of the situation, what the signs of the situation being over are, and what the severity of the cause of the situation was.
The little squiggly lines only help us evaluate and interpret all of this, and do not stand alone in a void. You seem to have little understanding of what is behind those squiggly lines, and the stark horizontal ones, or what to do when.

A:  Hi,don’t despair. You are not alone. But please dont do anything in haste cause they will just come back to bite you. Compose yourself. Dont let the “enemy” hurry you. You want to ambush them instead. Sorry for speaking in “parables” but i hope you get the point.
2 things :
1. Psychology of trading by Dr Alexander Elder is an excellent book. Equivalent of Sun TzU Art of “Forex Trading”. Like GOlf its a mental game. This book will equip you for that.
2. Try Forex Signals. – (Free Sofware download. )DashBoard FX?is an institutional-quality Forex Trade Signaling & Market Analysis software package

A:  I actually think I was one of their first subscribers. They are a great company and I would be lost without them. Mike has been very helpful and always answered my emails instantly. I missed probably the first three weeks of this year but since the pips are reported exactly. I have not used the live trade room yet, so can’t testify to it. I think they are hands down the best forex or forex signal service out since the old news trading days. I don’t have a lot of time to trade and the Quant Signals allow me to still be very profitable.

This is one of my forex trading signals videos where I share my forex trading system by forecasting which forex news events are coming up next and how to trade them. … forex trading system signal education free video Felix diamonds bastards. ]]> http://www.made-easy-forex.com/forex-video/forex-trading-system-signal-education-free-video.html/feed 1 http://www.made-easy-forex.com/forex-answers/any-good-entrance-exit-signal-sites.html http://www.made-easy-forex.com/forex-answers/any-good-entrance-exit-signal-sites.html#comments Thu, 24 Sep 2009 03:45:28 +0000 admin http://www.made-easy-forex.com/forex-answers/what-is-a-good-website-to-use-for-forex-daytraders.html I need sites specifically for daytraders! I’m currently using a Mini account, but I’m struggling seeing that I don’t have the 200:1 leverage nor the $5000 for a standard account. Is there any good sites for mini account daytraders? Any tools? Any good entrance/exit signal sites? Good forecast sites?

A:  The Federal government warns there are a lot of Forex frauds out there, and these Forex robots such as Forex Automoney appear to be one of these scams. If these robots really worked, there would be scads of articles about them in the Wall Street Journal and other financial publications talking about them. When I do a web search, I can not find a single reputable news article encouraging the use of Forex robots. The link below is a Federal website warning you about Forex fraud.
There are a lot of people on the Internet claiming they have done very well using Forex robots. These appear to be of two types. One is the outright liars. You might meet a person called “Zboy227″ who says “I made a lot of money using ScamRobot2000, go to their website at ScamRobot .com/Zboy227.” The “/Zboy227″ tells the website that Zboy227 has referred you. If you buy the product, Zboy227 gets a commission. He is only lying to you to get a commission.
There is a lot of luck in Forex. Sometimes you will run into people on the web who have tried a robot for a few days and have had some beginner’s luck with it. They start bragging about how well they have done. Later, they start to lose money, but they rarely get back on the web and talk about how much money they lost. People like to brag about their successes, but rarely talk about their losses. The result is that much of the feedback about these Forex robots is positive.
I may point out that websites that sell Forex robots admit there are a lot of scams out there. Of course they claim the other guy’s robot is a scam, but their robot works. If you do a web search on the words “forex robot” and “scam” you will find a lot of sites saying their competitors are scams.
I will admit I have not personally tested every robot out there, and I can not prove they are all scams. But I would be very hesitant to spend a lot of money on a robot without clear proof it really works.