Advanced Forex Techniquet

We would like to introduce some but yet powerful forex trading techniques. It was freely available as a manual trading technique that could deliver a great deal of profit. But yet. You should use them at your own risk and use them wisely by your own due diligence, there are no trade without RISK. Limit your risks by using “stop loss” and a smart money management, never try to go against the major trend. We will try to cover from how should we determine the current market trend? is is rangging? is it trending? The most simple was to detect if the current market was trending or ranging was by using the Economic Indicator, we could read about the current economic conditions by reading the news, wether through news.google.com or through public forums such as forexfactory.com. Identify the major trend by looking at the hourly chart. Check for the health of one pair by judging their economic release. If a pair was going somewhere (wether bear or a bull) then confirm these trends by looking at their economic news releases and forecast for the current day. Should it continue to trend? or should it met it’s boundaries. Now this is the chalange to determine if one economic events should trigger any movement.

Forexfactory.com made a super excelent resource about these economic release at their economic calendar release, they will mark at their freely available forex calendar, should the news release was a bad news? or a good news by coloring the numbers. You should pay a close attention to the revisions too. If the revision was better than the previous release, then it should denotes health to the current currency affected.

Now, let us look into some of the famous techniques :

1. Pyramidzing
The technique was based on the pyramid, the longger the trade, the bigger the lot size of the trade.
Example :
After reading through some news and analyzing it that the market for EURUSD was on a bullish ride, applying the pyramidzing technique. We open a BUY 1 Lot order at 1.4200; but not as we though that we should be in profit right away, the price was moved to 1.4150, at the current price we open a BUY 2 Lot at 1.4150; but then again the price was moving to 1.4100, we open a BUY 3 Lot order at 1.4100, and when the price touched 1.4150 we close all order with a net profit of $1,000.00 Ok, how should we calculate the profit?

• From the first trade you BUY 1 Lot at 1.4200 and close at 1.4150, giving you -50 Pips, thus -$500.00
• From the second trade you BUY 2 Lot at 1.4150 and close at 1.4150, giving you 0 Pips, thus $0.00
• From the third trade you BUY 3 Lot at 1.4100 and close at 1.4150, giving you +50 Pips, thus +1,500.00
• Sum from the three trades giving you a net $1,000.00 profit

2. Locking
This technique was based on loking your profit or your loss by hedging your trades.
Example :
You open a SELL 1 Lot of EURUSD at 1.4100 but unfortunately the price went against your favour, it was going to 1.4150, this made you sustain a -50 Pips loss, before it goes any furthur, you lock the trade by hedging EURUSD, i.e open a BUY 1 Lot of EURUSD at 1.4150 from now on, no matter where the price should go, you will only sustain -50 Pips loss. You try to gain more than +50 Pips by opening and closing another possition before you release the lock (liquidating both position from trade #1 and #2). Scalpers could use this technique to maximize their profit also. They lock their insurance (trades with more than +120 pips profit) and scalp the market (taking 1 to 3 pips of profit), as long as their profit was covered by the insurance lock, they tend to scalp the market more frequent.

Those are know techniques to trade the forex market, but you should use them wisely. Never trade if you are not comfortable with the current market situation. The forex market is allways there 24/5, it doesn’t matter where and when you should trade. Not taking a positions was a position too. We will discuss more advanced techniques better than presented now in the nearest future, subscribe to the feed to ensure that you’ll be the first to know when we post some more advanced forex trading techniques.

Have a great trading all.