Free Forex Signal 8/12/2006

Friday, December 8, 2006

Its been a while since I posted signal. Anyway here it is. Hope its good.

1. Short Aud/Usd @ 0.7905 or better. Target 0.7850, 0.7780.

2. Long Usd/Jpy @ 114.80 or better. Target 115.60, 116.70.

Happy Trading. Btw I cannot be held responsible for any loss from the signal above.

In The Land Of Forex

Friday, November 10, 2006

In The Land Of Forex, Trend Is King

Those are the words i hold on to in forex. No matter what happen in technical or fundamental study. Always follow the trend. Trend is king. Follow the king and you will be rewarded handsomely.

Free Forex Signal 10/11/2006

Eur/Usd is currently at 1.2862. From my calculation Eur/Usd has an upper range of 1.2880 - 1.2950. Possible trade is short Eur/Usd @ 1.2880 or better.

Gbp/Usd is currently at 1.9102. As stated in my other blog, possible trade is short Gbp/Usd @ 1.9100 or better wih upper range of 1.9100 -1.9150

Possible trade short Aud/Usd @ 0.7710 or better. Already gone down now. Btw i shorted from 0.7751. Its a good trade so far.

Forex Trade Review

Wednesday, October 11, 2006

Last Friday, Non-Farm Payrolls is out. This is like fuel for Usd and it effect all pair especially eur/usd and gbp/usd. Last friday the report came out a mixed bag. People are confused and the price swing up and down. I was on the losing side of the trade but because of the swing at certain point I was 30 pips up but because Marketiva usually lock out during news hour, I finally end up at a lost. Well its forex anyway. If you dont lose in forex you dont feel the thrill.

Anyway Im going to review few pairs. Maybe some of you can find a trade from my review. As for me I am currently out of the market waiting for it to come to sense. Currently all pairs are at extreme oversold or overbought.

Currently at 1.2532 after a drop of almost 200 pips. Currently its on a thin downtrend with a possible target of 1.2450. For those of you who are already on a short position, you may hold the position with trailing stop loss of your choice. For me I will only consider an entry at 1.2450, that will depend on the strength of the momentum.

Currently at 1.8540 and just like eur/usd it drop like a rock during NFP report out. Possible target is 1.8200. Looks like a retrace coming soon. Just watch the trend and momentum for possible entry. I will be looking at this one.

Currently at 1.1330. My last signal manage to get me 30 pips. Too small for the effort. Currently going up with possible target of 1.1450. Overshot all indicators. Possible retrace at 1.1360. I will be watching this one.

This is my review. Its not a trade recommendation. Be very carefull on your trade coz forex is a risky market. If you are not sure better stay out until the market make some sense. Happy trading.

Forex Signal

Friday, October 6, 2006

usd/cad is currently at 1.1270 with a high of 1.1305. Looking at the chart, it has lost its momentum eventhough the uptrend is still intact. It may hover around 1.1240 - 1.1310 for a while.
Possible Trade:
Short usd/cad @ 1.1300 or better.
Target: 1.1180, 1.11201, 1.1080.
If usd/cad overshoot 1.1315, then its possible that it will go long. This is because usd/cad is currently going uptrend. It will be constantly making new high.

555 Forex Trading System

Tuesday, October 3, 2006

This forex trading system is part of my full forex trading system. I post it just to help out new traders to develop their own trading system. This forex system can be use on all pairs. It is far from perfect but can give you an idea how to trade and develop your own forex trading system. Maybe in the future if you manage to improve this system you may want to share with me. Anyway here it goes.

Time Frame : 4 hours
MA's : SMA5 or SMA8 which ever suits you better, SMA55
TSF : Period=55
Bollinger Band : MA=simple, Period=55, Multiple=2.0
Stochastic Slow : Period = 10,3,3, simple, simple
Stochastic Fast : Period = 13,3 Exponential


For the 1st chart I use usd/jpy pair for 4 hour timeframe. Remember this forex system is designed for 4 hour time frame but can be use on all pairs. In this forex system, MA8 (Red) and TSF55 (Blue) is the indicator for long or short trade. When the red is above blue = long and vice versa. BB55 and SMA55 is the target. Both the stochastic is for confirmation on trade position.

When price is at BB55 either at the top or bottom and both stochastic is showing extreme value, it may signal a reversal. A confirm reversal is when price broke the red and blue line. The price itself is the ultimate indicator. Once the price broke the 2 lines, find the best possible entry. Normally the best entry is when the price is at the blue line. If after you enter the trade, and the price gain momentum in your favour just let it run and ride it till its finish.

Below is the explaination for the above chart

  1. Price spike out of BB55. As mentioned before, BB55 acts as targets. In this case usd/jpy already reach its target based on this system but the momentum is still strong based on distance of Red and Blue line.
  2. Price spike out of BB55 again but this time the price close below the Red line. This indicates the momentum is dead and a reversal coming soon.
  3. Ideal entry. Red below Blue line indicates a short position. Price is at the Blue line. Short now and let it run until it meet BB55 at the bottom
  4. Price went through BB55 and then goes flat at this point. It is making its way back into BB55 and a flat Red line indicating the momentum is dead and a reversal is coming soon. At this point the entry for long position is the lowest price inside BB55.
  5. Price spike out of BB55 but cannot make new high. This is where I exit and enter a new short position. Let it run until the momentum is dead.

If you look at point 1,2,3 and 5. All are high point and all of them is higher than the previous high. This is and indication that usd/jpy is actually going up but as forex moves in waves we sometimes get lost and fail to see the big picture. In this case what ever you do, follow the trend and always remember that the big picture is usd/jpy is going uptrend. Be prepare if the market suddenly shoot up. Remember always use stop loss properly. Forex is a risky market, do manage your risk properly.

Free Forex Signal

Saturday, September 23, 2006

Everybody likes free things. So do I but I like to give free things as well. In the future I will post Free Forex Signal in this blog. Before anyone trade on those free forex signal, I would like to warn you that I will not take responsibility on any profit or lost by using my free forex signal.

If anyone here like to see what kind of signal I give here is one example . Btw in that signal gbp/usd gave me over 300 pips. Happy trading.

Marketiva Scam????

Sunday, September 17, 2006

Read some very interesting review on marketiva. It seems that some people classified Marketiva as scam. I dont mind since im still using their $5. To me marketiva is a learning platform. Btw one review for you to read:

"I would not trust any company with no background info. I had asked to see who or what is behind the company before depositing funds. No response. I believe there is some type of long term scam here. Something is not right compared to other brokers. Also it is a bit strange that you can open an acct. with no I.D. Last but not least, beware the glowing reviews of Marketiva spread out on forums. Most if not all of these posts are made by actual Marketiva admins posing fraudulently as investors. You can easily pick them out. They are the ones using obvious marketing slogans and pushing the free $5 for joining. The $5 is just a ploy to sucker in the new trader.The rest of the posts are from those promoting their referral links.I'm of the opinion that Marketiva is a total bucket shop. Like a ponzi, the money from losers lines the pockets of Marketiva and helps pay the few that make a profit. I seriously doubt any investor's money actually makes it onto the market. 95% of traders lose on average. This makes for a profitable business model especially when the investor is essentially trading on a demo account with real money. They know you are very likely to lose, so your money goes into the bucket and you are left blaming a bad market when you lose when in fact, your money never even made it there.Ok, thats enough ranting. Beware Marketiva and do your own research and due diligence checks on any broker you wish to join.Best of luck out there!"

Trend, Momentum and Timing

Saturday, September 9, 2006

When doing technical analysis on forex. There are 3 factors that need to be properly recognise and use. They are trend, momentum and timing.

Trend is the tendency of movement to a particular direction. When it is uptrend, the price will move up and vice versa.

Momentum is the strength of movement. The stronger the momentum the stronger the move. When the momentum is finished, it will reverse.

Timing is when u enter the market. Enter only when the profit to risk ratio is good. Other than that better stay out.

What is a Pip?

Sunday, August 27, 2006

The most common increment of currencies is the Pip. If the EUR/USD moves from 1.2250 to 1.2251, that is ONE PIP. A pip is the last decimal place of a quotation. The Pip is how you measure your profit or loss.

As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency. In currencies where the US Dollar is quoted first, the calculation would be as follows.

Let’s take USD/JPY rate at 119.80 (notice this currency pair only goes to two decimal places, most of the other currencies have four decimal places)

In the case of USD/JPY, 1 pip would be .01



.01 divided by exchange rate = pip value
.01 / 119.80 = 0.0000834

This looks like a very long number but later we will discuss lot size.


.0001 divided by exchange rate = pip value
.0001 / 1.5250 = 0.0000655


.0001 divided by exchange rate = pip value
.0001 / 1.4890 = 0.00006715

In the case where the US Dollar is not quoted first and we want to get the US Dollar value, we have to add one more step.



.0001 divided by exchange rate = pip value
.0001 / 1.2200 = EUR 0.0008196

but we need to get back to US dollars so we add another calculation which is

EUR x Exchange rate
0.0008196 x 1.2200 = 0.00009999

When rounded up it would be 0.0001



.0001 divided by exchange rate = pip value

.0001 / 1.7975 = GBP 0.0000556

But we need to get back to US dollars so we add another calculation which is

GBP x Exchange rate

0.0000556 x 1.7975 = 0.0000998

When rounded up it would be 0.0001

You’re probably rolling your eyes back and thinking do I really need to work all this out and the answer is no. Nearly all forex brokers will work all this out for you automatically. It’s always good for you to know how they work it out.

How To Make Money Trading Forex

Saturday, August 26, 2006

In the foreign exchange market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.

The object of forex trading is to exchange one currency for another in the expectation that the price will change so that the currency you bought will increase in value compared to the one you sold.

How to Read Forex Quote

Currencies are always quoted in pairs, such as EUR/USD or USD/CHF. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultanesouly buying one currency and selling another. Here is an example of a foreign exchange rate of the British pound versus the U.S. dollar:

GBP/USD = 1.7500

The currency to the left of the slash ("/") is called the base currency (in this example, the British pound) and the one on the right is called the quote currency or counter currency (in this example, the U.S. dollar).

When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.

When selling, the exchange rate tells you how many units of the quote currency you get for selling one of the basis currency. In the example above, you will receive 1.7500 U.S. dollar when you sell 1 British pound.

The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency.

You would buy the pair if you belive the base currency will appreciate relative to the quote currency. You would sell the pair if you think the base currency will depreciate relative to the count currency.


First, you should determine whether you want to buy or sell.

If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.

If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell.

Bid/Ask Spread

All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price.

The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price in which you the trader will sell.

The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price in which you the trader will buy.

The difference between the bid and the ask price is popularly know as the spread.

Let's take a look at an example taken from a trading software:

On this EUR/USD quote, the bid price is 1.2293 and the ask price is 1.2296. Look at how this broker makes it so easy for you to trade away your money. If you want to sell EUR, you click "Sell" and you will sell Euros at 1.2293. If you want to buy EUR, you click "Buy" and you will buy Euros at 1.2296.

In the following examples, I am going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry, we will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on.

In this example euro is the base currency and thus the “basis” for the buy/sell.

If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold euros in the expectation that they will fall versus the US dollar.

In this example the US dollar is the base currency and thus the “basis” for the buy/sell.

If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and coverting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

In this example the GBP is the base currency and thus the “basis” for the buy/sell.

If you think the British economy will continue to do better than the United States in terms of growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar. If you believe the British's economy is slowing while the United State's economy remains vibrant, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

In this example the USD is the base currency and thus the “basis” for the buy/sell.

If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in Iraq and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.

I don't have enough money to buy $10,000 EUR. Can I still trade?

You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital.

Margin trading in the foreign exchange market is quantified in lots. We will be discussing "lots' more in-depth on our next lesson. For now, just think of the term "lot" as the minimun amount of currencies you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg, they come in dozens or "lots" of 12. In Forex, it'd be foolish to buy or sell $1 EUR, they usually come in "lots" of $10,000 or $100,000 depending on the type of account you have.

For Example:
You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of 1.5000 and wait for the exchange rate to climb. This means you now control $100,000 worth of British Pound with $1,000. Your predictions come true and you decide to sell. You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the smallest price movement available in a currency). So for an initial capital investment of $1,000, you have made 50% return. Return equals your $500 profit divided by your $1,000 you risked to trade.

Your Actions GBP USD Your Money
You buy 100,000 pounds at the GBP/USD exchange rate of 1.5000 +100,000 -150,000 $1,000
You blink for two seconds and the GBP/USD exchange rate rises to 1.5050 and you sell. -100,000 +150,500** $1,500
You have earned a profit of $500. 0 +500

When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

We will also be discussing margin more in-depth in the next lesson, but hopefully you're able to get a basic idea of how margin works.


No, this is not the same as rollover minutes from your cell phone carrier. For positions open at 5pm EST, there is a daily rollover interest rate that a trader either pays or earns, depending on your established margin and position in the market. If you do not want to earn or pay interest on your positions, simply make sure it is closed at 5pm EST, the established end of the market day.

Since every currency trade involves borrowing one currency to buy another, interest rollover charges are an inherent part of FX trading. Interest is paid on the currency that is borrowed, and earned on the one that is purchased. If a client is buying a currency with a higher interest rate than the one he/she is borrowing, the net differential will be positive (i.e. USD/JPY) – and the client will earn funds as a result. Ask your broker about specific details regarding rollover.

Welcome To The World Of Forex

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Forex is becoming more and more popular due to its availability over the internet and current high speed internet. Some people have made a living out of forex trading. Its not easy but we all have to start somewhere. Here there will be infomation on forex trading, forex brokers, forex signal, forex chart, technical study and fundamental study of forex and lots more.

There will be other posters, other forex traders that will contribute article here. Come and learn to trade forex. See how easy it is actually to make money and to lose money as well.

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