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Forex Fibonacci Indicator Tips

April 20, 2012 By Leave a Comment

In today post, I am going to introduce you to the forex fibonacci indicator as this is one indicator that I am always using in my trading.

In fact, this is an indicator that is commonly used by professional traders and therefore you will usually see the price respecting the Fibonacci level.

So What Can This Forex Fibonacci Indicator Do?

The fibonacci indicator is made up of retracement and extension. The retracement of this indicator serves as a level of strong support and resistance which can be used as an entry tool.

Personally I find the Fibonacci 0.382, 0.500 and 0.618 retracement level more responsive than the other 2 levels.

As for the extension, they provide good level for traders to exit their position.

When the price hits the 0.382 Fibonacci level, a good place to exit your position will be at 1.272 extension level.

When the price hits the 0.500 and 0.618 Fibonacci level, you can then used the 1.500 and 1.618 extension level to exit your position.

If you are able to find levels where they are overlapping Fibonacci retracement levels, you will be able to trade with higher winning probability as these levels are areas of very strong support or resistance. You will usually see the price being repelled by them.

If you are not good at using Fibonacci, you can take a look at the forex mastery course that I have created to help new traders make money from trading.

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Forex Stochastic Indicator Tips

November 3, 2011 By Leave a Comment

I hope that you find the section on forex indicators useful for you. In this post today, I am going to share with you another forex indicator that I like to use.

The forex stochastic indicator is one that I often add to my trading chart as it is able to help me identify several things that are happening in the market.

Most people thought that forex stochastic indicator is only about to tell you whether the market is oversold or overbought. In fact, there is more to this indicator than that and this is what I am going to share with you in this post today.

1) Divergence – Most of you are familiar with MACD divergence as it is something that is commonly mention in most courses or books. However you can also make use of divergence the same way you use it on MACD.

When you see the price making a higher high while the stochastic making lower high, you are seeing a negative divergence. This is a sign that the price is going to reverse down.

When you see the price creating lower low while the stochastic is making higher low, it is a positive divergence. This usually means that the price is going to move up.

2) Enter and Exit Strategy – Besides the divergence, I will usually use the forex stochastic indicator as a signal for entry or exit.

For example, if I am planning to enter a LONG trade, I will usually wait for the stochastic to show sign that the market is oversold.

Similarly when I am exiting my position, I will wait for the stochastic to go overbought.

I hope that you find these information useful for your trading and will consider adding stochastic into your trading strategy.

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Power of Forex 200 EMA Indicator

August 3, 2011 By Leave a Comment

If you are searching for a good forex indicator to use, the 200 EMA is one that you should always add into your trading plan. In fact, the 200 EMA was voted as one of the most reliable indicator by a forex magazine.

So What Is So Special About It?

You must be wondering what is so special about this indicator and this is exactly what I am going to share with you here in this post. These are ways that I personally use the forex 200 EMA for in my trading.

1) Tell The Trend – To use the 200 EMA as a trend indicator, you can read the gradient of this indicator. If the 200 EMA is sloping upward, you are in an uptrend and if it is sloping downward, you are in a downtrend.

2) Tell The Strength of the Trend – If you have been trading for sometime, you will understand the importance of the trend. If the market is in a strong uptrend, it will be wise for you to ride the momentum of the trend to profit.

Therefore if you are wondering how you can tell the trend of the market, the 200 EMA is one indicator that can do so. If it is sloping with a steep gradient in a particular direction, it is indicating to you that there is a strong trend in that direction. If the 200 EMA is flat or has small gradient, you are in a weak trending market.


3) Major Support and Resistance – If you plot a 200 EMA on your trading chart (It does not matter which time frame you are using), you can see that the price usually get repelled by this indicator. This will indicate to you how strong the 200 EMA is as a support or resistance.

4) Buy and Sell Signal – Due to the strong support and resistance that the 200 EMA is providing, it makes a good signal for buy or sell signal. When the price crosses above the 200 EMA, it is usually indicating a BUY trade but it does not mean that you should buy whenever the price breaks above the 200 EMA. What I am saying here is you should look for a BUY trade when the price breaks above the 200 EMA.

If the price breaks below the 200 EMA, you should start to look for a SELL trade and this is how you can make use of this indicator as a buy and sell signal.

From the above, I hope that you can see the power of the forex 200 EMA indicator and you can try to integrate it into your trading system to improve your accuracy.

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Forex MACD Indicator Tips

June 29, 2011 By Leave a Comment

The forex MACD indicator is one of my favourite indicator among all as it is an indicator that is very versatile and can be integrated into most trading strategy. Therefore in today post, I shall be sharing with you the various ways you can make use of this forex macd indicator in your trading.

Below are what you can do with MACD:

1) Tell The Forex Trend – To use this tool to tell the trend, you can make use of the zero line. When you plot the MACD indicator, you will see a horizontal line and that is known as the zero line.

When you see the MACD line above the zero line, you are usually in an uptrend and when you see the MACD line below the zero line, you are usually in a downtrend.

2) Predict Retracement - If you have been looking at your forex chart, you will find that the price is always moving in the form of waves. Therefore there are times where you will see the price retracing up in a downtrend.

So what you can do with your MACD indicator is to make use of its histogram. When you see the histogram flips up in a down trend, it is usually a sign of a retracement.

Similarly, when you see the histogram flipping down in an uptrend, you are actually seeing a retracement.

3) Predict Reversal – As for the reversal, you have to make use of another feature of this forex macd indicator which is the divergence. The macd divergence is one of the powerful patterns that you must take into consideration as it is usually very accurate.

When you see that the price is making higher high while the MACD is making lower high, you are seeing a MACD negative divergence. This is a sign that the price is going to change its movement from up to down.

When you see the price making lower low while the MACD making higher low, you are seeing the formation of a MACD positive divergence. This is a sign that the price is changing its movement from down to up.

These are 3 ways you can make use of the forex macd indicator in your trading and I hope that they are useful for your trading.

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