How To Simple with Metatrader 4

Day Trading Tips - The Best Indicators For Day Trading by Markus Heitkoetter

In this video you will learn the "best" markets to trade, how I set up my charts, what indicators I use for day trading and the settings and how to easily identify the beginning and the end of a trend.

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The Complete Guide to Day Trading: A Practical Manual From a Professional Day Trading Coach
by Markus Heitkoetter

Head And Shoulders Chart Pattern

How to Day Trade Using Bollinger Bands

In this video we will show traders how to day trade using one of our favorite day trading tools, Bollinger Bands.

Created by John Bolliger in the 1980's, Bollinger Bands help traders recognize market volatility, and when used correctly, one of the few indicators that can be used to identify trending AND trend fading opportunities in the market.

The new version of the MetaTrader 4 terminal features the updated structure of user data storage. In earlier versions all programs, templates, profiles etc. were stored directly in terminal installation folder. Now all necessary data required for a particular user are stored in a separate directory called data folder. Read the article to find answers to frequently asked questions.

• Upgrade to New MetaTrader 4
• Data Copied During the Upgrade
• What Is the Data Folder
• What Is the Installation Folder
• General Mode of Terminal Start
• Portable Mode
• How to run old EX4

More...

How To Invest in Gold Coins

Investing in gold can be accomplished in 3 popular ways:

1) Buy physical gold coins or bullion.
2) Buy gold ETFs.
3) Buy gold futures.

All 3 methods are great ways to invest in gold, but physical gold in the form of coins or bullion is one of the best and most enjoyable ways to invest in gold for the long term.

One of the biggest benefits of physical gold is that you own the metal and don't need to worry about transaction costs associated with other types of gold investments.

Fibonacci... it's a technical tool that can make you rich

You may have heard about Fibonacci, the man who discovered a set of numbers who that have a major affect on the market. So who is this Fibonacci fellow, and why are his findings so important in the market place?

The mathematical findings by this thirteenth century Italian man has yielded a useful technical analysis tool which is used in technical analysis and by scientists in a large array of fields. Born Leonardo of Piza, he is better known in the trading community as Fibonacci. Fibonacci's best known work is Liber Abaci which is generally credited as having introduced the Arabic number system which we use today.

Fibonacci introduced a number sequence in Liber Abaci which is said to be a reflection of human nature. The series is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and on to infinity. The series is derived by adding each number to the previous. For example, 1+1=2 , 2+1=3, 3+2=5, 5+3=8, 8+5=13, and so on.

Fibonacci retracements show where support and resistance might come into the market. It is also useed to enter or add onto a position.

MetaTrader 4 iOS Features Analytical Tools!

Various lines, channels, Elliott Waves, Gann and Fibonacci tools, as well as geometric shapes are now available in MetaTrader 4 for iPad and iPhone. The impressive arsenal of 30 technical indicators has received 24 analytical tools greatly expanding trading opportunities.

The new iOS 7 inspired interface looks more lightweight. The usability of the updated MetaTrader 4 iOS has been improved as well, while it has become much easier to manage some functions. Also, new features for working with charts have been added and execution of trade operations has been accelerated.

Millions of traders have already chosen MetaTrader 4 iOS for their everyday trading activity in the Forex market. You are welcome to join them!

How To Use The RSI Indicator

Learn the basics of the Relative Strength Index in just about 6 minutes!

This RSI indicator is a widely-used momentum oscillator that measures the strength and speed of a market's price movement by comparing the current price of the security against its past performance. The RSI can be used to identify overbought and oversold areas, support and resistance levels, and potential entry and exit signals.

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RSI Indicator Forex Trading Strategy

Relative Strength Index or RSI is the most popular indicator used in Forex trading. It is an oscillator indicator which oscillates between 0 -100. The RSI is a trend following indicator. It indicates the strength of the trend, values above 50 indicate a bullish trend while values below 50 indicate bearish Forex trend.

The RSI measures momentum of a currency.

The centerline for the RSI is 50,crossover of the centerline indicate shifts from bullish to bearish and vice versa.
Above 50, the buyers have greater momentum than the sellers and price of a currency will keep going up as long as RSI stays above 50.

Below 50, the sellers have greater momentum than the buyers and price of a currency will keep going downwards as long as RSI stays below 50.



In the example above, when the RSI is below 50, the price kept moving in a downward trend. The price continues to move down as long as RSI was below 50. When the RSI moved above 50 it showed that the momentum had changed from sell to buy and that the downtrend had ended.

When the RSI moved to above 50 the price started to move upwards and the trend changed from bearish to bullish. The price continued to move upwards and the RSI remained above 50 afterwards.

From the example above, when the trend was bullish sometimes the RSI would turn downwards but it would not go below 50, this shows that these temporary moves are just retracements because during all these time the price trend was generally upwards. As long as RSI does not move to below 50 the trend remains intact. This is the reason the 50 mark is used to demarcate the signal between bullish and bearish.

The RSI uses 14 day period as the default RSI period, this is the period recommended by J Welles Wilders when he introduced the RSI. Other common periods used by forex trader is the 9 and 25 day moving average.

The RSI period used depends on the time frame you are using, if you are using day time frame the RSI 14 will represent 14 days, while if you use 1 hour the RSI 14 will represent 14 hours. For our example we shall use 14 day moving average, but for your trading you can substitute the day period with the time frame you are trading.

To Calculate RSI:

• The number of days that a currency is up is compared to the number of days that the currency is down in a given time period.
• The numerator in the basic formula is an average of all the sessions that finished with an upward price change.
• The denominator is an average of all the down closes for that period.
• The average for the down days are calculated as absolute numbers.
• The Initial RS is then turned into an oscillator.

Sometimes very large up or down movement in price in a single price period may skew the calculation of the average and produce a false signal in the form of a spike.

Center-line: The center-line for RSI is 50. A value above 50 implies that a currency is in a bullish phase as average gains are greater than average losses. Values below 50 indicate a bearish phase.

Overbought and Oversold Levels:

Wilder set the levels at which currencies are overextended at 70 and 30

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RSI Indicator Overbought and Oversold Levels

RSI values of above 70 are considered to be overbought; traders consider points above the 70 level as market tops and good points for taking profits.

RSI values of below 30 are considered to be oversold; traders consider points below the 30 level as market bottoms and good points for taking profits.

These levels should be confirmed by center line crossovers. If these regions give a market top or bottom, this signal should be confirmed with a center line crossover. This is because these levels are prone to giving whipsaws in the market.

In the example below, when the RSI hit 70, it showed that the currency was overbought, and this could be considered a signal that the currency could reverse.

The currency then reversed after a short while and started to move downwards, until it got to the oversold levels. This was considered a market bottom after which the currency started to move upwards again.



Over extended RSI overbought and oversold

When the market is trending strongly upwards or downwards the RSI will stay at these levels for a long time. When this happens these regions cannot be used market tops and bottoms because the RSI will stay at these levels for an extended period of time. This is the reason why we say that RSI overbought and oversold regions are prone to whipsaws and it is best to confirm the signals using center-line crossovers.

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RSI Swing Failure Forex Trading Setup

RSI swing failure can be a very accurate method for trading short term currency moves. It can also be used for trading long term trends but it is best suited for short term trading especially for those traders that trade reversals.

The RSI failure swing is a confirmation of a pending market reversal. This setups a leading breakout signal, it warn that a support or resistance level in the market is going to be penetrated. This setup should occur at values above 70 for an upward trend and values below 30 in a downward trend.

RSI Failure Swing in an upward trend

If the RSI hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing. Since the 72 level is an RSI support level and it has been penetrated it means that price will and follow and it will penetrate its support level.

In the example below, the RSI hits 73 then pulls back to 56, this is a support level. The RSI then rises to 68 and then drops to below 56, thus breaking the support level. The price then follows afterwards breaking it support level. The RSI swing failure is a leading signal and it is confirmed when price also breaks it support level. Some forex traders open trades once the swing failure is complete while others wait for price confirmation, either way it is for a trader to decide what work best for them.



RSI Failure Swing in a downward trend

If the RSI hits 20 then pulls back to 28, then falls to 24 and finally penetrates above 28, this is considered a failure swing. Since the 28 level is an RSI resistance level and it has been penetrated it means that price will and follow and it will penetrate its resistance level.

How To Use Fibonacci Retracements

Fibonacci Retracements can help traders find significant price points and predict levels of support and resistance. It is based on the Fibonacci sequence of numbers, identified by Leonardo Fibonacci in the thirteenth century. The relationships between those numbers are shown as ratios, and those ratios are used to identify possible reversal levels.

Find out more about the Fibonacci Sequence and the "Golden Ratio" and how you can apply them to your trading.

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Fibonacci Retracements (based on stockcharts article)

Introduction

Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci Retracements can also be applied after a decline to forecast the length of a counter trend bounce. These retracements can be combined with other indicators and price patterns to create an overall strategy.

The Sequence and Ratios

This article is not designed to delve too deep into the mathematical properties behind the Fibonacci sequence and Golden Ratio. There are plenty of other sources for this detail. A few basics, however, will provide the necessary background for the most popular numbers. Leonardo Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, is credited with introducing the Fibonacci sequence to the West. It is as follows:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610……
The sequence extends to infinity and contains many unique mathematical properties.

• After 0 and 1, each number is the sum of the two prior numbers (1+2=3, 2+3=5, 5+8=13 8+13=21 etc…).
• A number divided by the previous number approximates 1.618 (21/13=1.6153, 34/21=1.6190, 55/34=1.6176, 89/55=1.6181). The approximation nears 1.6180 as the numbers increase.
• A number divided by the next highest number approximates .6180 (13/21=.6190, 21/34=.6176, 34/55=.6181, 55/89=.6179 etc….). The approximation nears .6180 as the numbers increase. This is the basis for the 61.8% retracement.
• A number divided by another two places higher approximates .3820 (13/34=.382, 21/55=.3818, 34/89=.3820, 55/=144=3819 etc….). The approximation nears .3820 as the numbers increase. This is the basis for the 38.2% retracement. Also, note that 1 - .618 = .382
• A number divided by another three places higher approximates .2360 (13/55=.2363, 21/89=.2359, 34/144=.2361, 55/233=.2361 etc….). The approximation nears .2360 as the numbers increase. This is the basis for the 23.6% retracement.

1.618 refers to the Golden Ratio or Golden Mean, also called Phi. The inverse of 1.618 is .618. These ratios can be found throughout nature, architecture, art and biology. In his book, Elliott Wave Principle, Robert Prechter quotes William Hoffer from the December 1975 issue of Smithsonian Magazine:
….the proportion of .618034 to 1 is the mathematical basis for the shape of playing cards and the Parthenon, sunflowers and snail shells, Greek vases and the spiral galaxies of outer space. The Greeks based much of their art and architecture upon this proportion. They called it the golden mean.

Alert Zones

Retracement levels alert traders or investors of a potential trend reversal, resistance area or support area. Retracements are based on the prior move. A bounce is expected to retrace a portion of the prior decline, while a correction is expected to retrace a portion of the prior advance. Once a pullback starts, chartists can identify specific Fibonacci retracement levels for monitoring. As the correction approaches these retracements, chartists should become more alert for a potential bullish reversal. Chart 1 shows Home Depot retracing around 50% of its prior advance.



The inverse applies to a bounce or corrective advance after a decline. Once a bounce begins, chartists can identify specific Fibonacci retracement levels for monitoring. As the correction approaches these retracements, chartists should become more alert for a potential bearish reversal. Chart 2 shows 3M (MMM) retracing around 50% of its prior decline.



Keep in mind that these retracement levels are not hard reversal points. Instead, they serve as alert zones for a potential reversal. It is at this point that traders should employ other aspects of technical analysis to identify or confirm a reversal. These may include candlesticks, price patterns, momentum oscillators or moving averages.

Common Retracements

The Fibonacci Retracements Tool at StockCharts shows four common retracements: 23.6%, 38.2%, 50% and 61.8%. From the Fibonacci section above, it is clear that 23.6%, 38.2% and 61.8% stem from ratios found within the Fibonacci sequence. The 50% retracement is not based on a Fibonacci number. Instead, this number stems from Dow Theory's assertion that the Averages often retrace half their prior move.

Based on depth, we can consider a 23.6% retracement to be relatively shallow. Such retracements would be appropriate for flags or short pullbacks. Retracements in the 38.2%-50% range would be considered moderate. Even though deeper, the 61.8% retracement can be referred to as the golden retracement. It is, after all, based on the Golden Ratio.

Shallow retracements occur, but catching these requires a closer watch and quicker trigger finger. The examples below use daily charts covering 3-9 months. Focus will be on moderate retracements (38.2-50%) and golden retracements (61.8%). In addition, these examples will show how to combine retracements with other indicators to confirm a reversal.

Moderate Retracements

Chart 3 shows Target (TGT) with a correction that retraced 38% of the prior advance. This decline also formed a falling wedge, which is typical for corrective moves. The combination raised the reversal alert. Chaikin Money Flow turned positive as the stock surged in late June, but this first reversal attempt failed. Yes, there will be failures. The second reversal in mid July was successful. Notice that TGT gapped up, broke the wedge trend line and Chaikin Money Flow turned positive (green line).



Chart 4 shows Petsmart (PETM) with a moderate 38% retracement and other signals coming together. After declining in September-October, the stock bounced back to around 28 in November. In addition to the 38% retracement, notice that broken support turned into resistance in this area. The combination served as an alert for a potential reversal. William %R was trading above -20% and overbought as well. Subsequent signals affirmed the reversal. First, Williams %R moved back below -20%. Second, PETM formed a rising flag and broke flag support with a sharp decline the second week of December.



Golden Retracements

Chart 4 shows Pfizer (PFE) bottoming near the 62% retracement level. Prior to this successful bounce, there was a failed bounce near the 50% retracement. The successful reversal occurred with a hammer on high volume and follow through with a breakout a few days later.



Chart 5 shows JP Morgan (JPM) topping near the 62% retracement level. The surge to the 62% retracement was quite strong, but resistance suddenly appeared with a reversal confirmation coming from MACD (5,35,5). The red candlestick and gap down affirmed resistance near the 62% retracement. There was a two day bounce back above 44.5, but this bounce quickly failed as MACD moved below its signal line (red dotted line).



Conclusions

Fibonacci retracements are often used to identify the end of a correction or a counter-trend bounce. Corrections and counter-trend bounces often retrace a portion of the prior move. While short 23.6% retracements do occur, the 38.2-61.8% covers the more possibilities (with 50% in the middle). This zone may seem big, but it is just a reversal alert zone. Other technical signals are needed to confirm a reversal. Reversals can be confirmed with candlesticks, momentum indicators, volume or chart patterns. In fact, the more confirming factors the more robust the signal.

Forex Technical Analysis for Beginners - Simple Forex Chart Techniques that Work

This video tutorial is a guide to Forex technical analysis for beginners and covers how to use trend lines and how to use a variety of technical indicators to help build a simple trading strategy which works. The Forex trading techniques are all simple to learn but if you do learn them and apply them, you will generate high odds trading signals which can lead you to long term success. If you want to learn Forex charts this video is a good introduction for beginners.