Forex Trading Education

Automated Forex Trading System

nospam@example.com (Ryan Lee) — Tue, 03 Feb 2009 08:57:32 -0600

What is an Automated Forex System?

An automated forex system - Expert Advisor (EA) is a mechanical trading system designed to automate forex trading.

Metatrader 4 platform "Expert Advisor" can trade your account automatically, i.e. sending "buy" and "sell" orders directly to your broker’s server, while automatically adjusting stop loss, trailing stops and take profit levels.

Continue reading "Automated Forex Trading System"

Projection Oscillator - Technical Indicator

nospam@example.com (Matteo Bruno) — Sun, 19 Oct 2008 05:15:28 -0500

What Does It Mean?

Derived from Projection Bands, the Projection Oscillator (developed by M. Widner) measures the distance of the closing value within the current Projection Bands.

When the close is near or approaching 0, that translates to a close which is near the lower projection band. A value near or approaching 100 indicates the close is approaching the upper projection band.

Projection Oscillator Combined with Bar Chart

Continue reading "Projection Oscillator - Technical Indicator"

Understanding Japanese Candlestick Charts

nospam@example.com (Matteo Bruno) — Tue, 23 Sep 2008 03:57:22 -0500

Although the fact that the same data is being used when charting candlestick charts and bar charts, japanese candlestick charting dramatically increases the visual analysis abilities.

Candlestick patterns allow the technical trader to gather trend and human behavior information more easily then with bar charts. Once you have become familiar with candlestick charts, the visual aspects of these charts will make all other charting techniques seem insignificant.

Bar Chart

Today, the default option in charting software is to view the forex, stock or futures price movement through bar charts.

Each bar displays the open, close, high and low as price change, regardless of the time period you use, i.e. 5 min, 1 hour, daily, weekly, etc.

Bar Price Movement Formation

Forming the Bar

One bar, a vertical line, represents the specify periodicity price movement. The top of the line is the high of the trading range and the bottom is the low.

A bulge to the left side of the line represents the opening price while a bulge to the right side represents the closing price.

Continue reading "Understanding Japanese Candlestick Charts"