SlideShare une entreprise Scribd logo
1  sur  41
Télécharger pour lire hors ligne
How to Create a
Trading Strategy ?
Be Discipline, Be Rich
Synopsis
Forex Fundamental Analysis
Forex Technical Analysis
Risk Management
Rules of Successful Forex Traders
Why do Traders Fail?
The Country's Economy
Unemployment Rate
Political Events
GDP
Interest Rate
Inflation
Consumer Price Index
Balance of Trade
Purchase Price Index
Natural Disasters
The Major Economic Indicators Include:
An Introduction to Fundamental Analysis
Fundamental Analysis refers to a method of analyzing the Forex Market based on the economic, social and political
factors. It mainly focuses on the overall state of the economy and includes other factors like the Interest Rate,
Employment, GDP, International Trade, etc and the impact it has on the value of a particular nation's currency. The key
aspect of Fundamental Analysis is to discover the real value of a currency and to compare it with the current price
and to discover a trading opportunity.
Economic Calendar
The economic calendar shows the upcoming events
across the world.
Provides useful information on upcoming macroeconomic
events by means of pre-scheduled news announcements and
government reports on economic indicators that influence the
financial markets.
It helps a trader find out which event could shift or shake the value
of a particular country's currency.
The events are ranked in order of importance in terms of low;medium
and high or in terms of bulls or colours.
By following indicators like GDP, Inflation and Employment Strength,
a trader can anticipate market volatility and gain potential trading
opportunities in good time.
investing.com
fxstreet.com
Interest Rates
The biggest factor that drives the foreign-exchange market
is the interest rate changes made by any of the global
central banks.
The changes are an indirect response to other economic
indicators and they possess the power to move the market
immediately and with full force.
As the interest rate changes often, it makes the biggest
impact on the market.
Inflation is one of the major aspect that influences the
Central Bank's interest rate decision.
Understanding how to predict and react to these volatile
moves can lead to quicker responses and higher profit
levels.
Higher interest rate increases the value of a country's currency
and attracts foreign investment, increasing the demand and
value of the home country's currency and in case of lower
interest rates it is vice versa.
INTEREST
RATES %
Monetary Policy
It refers to the macroeconomic policy laid down by the Central
Banks. It involves management of money supply and interest
rate and is used by the government of a country to achieve its
macroeconomic objectives like Inflation, Consumption, Growth
and Liquidity.
The goal of monetary policy is to stabilize GDP in order to
achieve and maintain low unemployment rate and maintain
predictable exchange rates with other currencies.
Central Banks use monetary policy to control:
- Inflation
- Money Supply
- Lending's to Commercial Banks
- Interest Rates
- The portion of Depositors Balance Commercial Banks
should have on hand as Cash.
Objectives
Price Stability
Economic Growth
Full Employment and Maximum Output
Exchange Stability
Interest Rates
Political Events
Political events affect the market more than the economic data.
When an investor puts his money in a stable country with a
strong economy and a stable political system. Any political
uncertainty might pull down the domestic currency. As a
result, the investor withdraws his assets and invests them in
stronger currencies. Hence, all these lead to the suffering of
the economy and a greater depreciation of the currency.
ELECTIONS
SOCIAL INSTABLITY
CROSS COUNTRY DISPUTES
INTERNATIONAL SUMMITS
AND MEETINGS
SPEECHES AND COMMENTS
OF POLITICAL OFFICIALS
The Value of
Currency
To Know More :
To know more on Forex News, Courses and Forum
Discussions visit:
Babypips.com
Investing.com
Fx Street
Fx Factory
Forex Technical Analysis
Synopsis:
An Introduction
Forex Charts
Technical Indicators
Technical Strategies
Technical Analysis
Predicting the Future Price action based on the Historical performance
Evaluating assets based on the Analysis and Statistics of Past Market
Action, such as past prices and past volume
Analyzing the market using Technical Charts, Indicators and Tools.
Forex Charts
Used by traders to Analyze the Movement of Currency Prices and determine the moment to Buy and Sell
Three primary chart types which include Line chart, Bar chart and Candlestick chart
Line Chart
Bar Chart
Draws a line from one Closing Price to the Next Closing
Price. When strung together with a line, we can see the
general price movement of a currency pair over a period of
time.
It shows the Opening and Closing prices, as well as the
Highs and Lows. The Bottom of the vertical bar indicates
the Lowest traded price for that time period, while the
Top of the bar indicates the Highest price paid.
Candlestick Chart
Candlestick charts show the same price information as a bar
chart, but in a Graphic Format. In candlestick charting, the larger
block (or body) in the middle indicates the range between the
opening and closing prices. If the block in the middle is filled or
colored in, then the currency pair closed lower than it opened.
Types of Candlesticks
A bullish candle is formed when there is a
significant increase in price with a longer body.
The body of the candle can stretch as much as
it can, which says that there is a growth in the
market.
A bullish candle means there is currently more
buying pressure in the market. As long as
buyers maintain enough buying pressure the
candles will be bullish. If buying pressure eases
and selling pressure increases bullish candles
will become smaller, representing decreased
bull strength.
Bullish Candle
Bearish Candle
A bearish candle is formed when there is a
decrease in the market. Longer the body the
more chances of a price decrease.
A Bearish Candle means there is currently
more selling pressure in the market. As long
as sellers maintain enough selling pressure
the candles will be bearish. If selling pressure
eases and buying pressure increases, bearish
candles will become smaller, representing
decreased bear strength.
Spinning Tops
It is a neutral pattern that occurs when the distance between the
high and low, and the distance between the open and close, are
relatively small.
Spinning tops are the patterns where small real bodies are
formed. These patterns have much longer shadows than the
bodies. It points both bullish and bearish trend.
Doji is a pattern, in which the market opens and closes at the same
time. There are different types of Doji patterns depending upon the
opening and closing of the market.
Long-Legged Doji: This long-legged Doji comprises of long upper
and long down shadow, and the price in the middle.
Dragonfly Doji: The dragonfly pattern signifies downtrend; it has
long lower shadow and has no upper shadow.
Gravestone Doji: The gravestone Doji signifies uptrend; it has long
upper shadow and have no down shadow.
Four Price Doji: This form of pattern indicates a very quiet market. It
shows just a line which indicates indecision. In this pattern, the open,
close, highs and the lows are all the same for the trader.
The Doji patterns include:
Doji - Trend Reversal Signal
Hammer & Hanging Man
Hammer, is a bullish signal. In this candle, the down shadow
must be twice the length of the real body. These hammers
have little shadow up or no shadow at all.
It appears after a significant downtrend. If the line occurs after a
significant uptrend, it is called a Hanging Man. A small body and a
long wick identify the Hammer. The body can be empty or filled in.
Inverted Hammer &
Shooting Star
An inverted hammer is a bullish reversal candlestick. A shooting
star is a bearish reversal candlestick. Both candlesticks have little
bodies (filled or hollow), long upper shadows, and small or absent
lower shadows.
The inverted hammer occurs when price has been falling
suggesting the possibility of a reversal. Its long upper shadow
shows that buyers tried to bid the price higher.
The shooting star occurs when price has been rising. Its shape
indicates that buyers attempted to push the price up, but sellers
came in and overpowered them.
Engulfing candlestick patterns takes two candlesticks to be identified:
Engulfing Candle
- Similarly a bearish engulfing pattern is characterized by a
bearish candle whose body engulfs the previous candle’s body.
- A bullish engulfing pattern is characterized by a bullish
candle whose body, the open and close engulfs the previous
candle’s body.
This candlestick patterns exhibits extreme market sentiment.
A bullish engulfing pattern tells us that the buyers have overcome
the sellers in the market, thus indicating an increase in the price
and vice versa.
Three White Soldiers
Uptrend Indicated
It is a Bullish candlestick pattern that is used to predict the
uptrend in a pricing chart.
It consists of three consecutive long-bodied candlesticks
that open within the previous candle's real body and a
close that exceeds the previous candle's high.
The size of the candles and the length of the shadow is
used to judge whether there is a risk of retracement.
It suggests a strong change in market sentiment. The
pattern is mostly preceded by other candlestick patterns
suggestive of a reversal, such as a Doji.
Three Black Crows
Downtrend Indicated
It is a bearish candlestick pattern that is used to predict
the reversal of the current uptrend.
It consists of three consecutive long-bodied candlesticks
that have opened within the real body of the previous
candle and closed lower than the previous candle.
The pattern occurs when bears overtake the bulls during
three consecutive trading sessions and shows up on the
pricing charts as three bearish long-bodied candlesticks
with short shadows.
Forex Trendline Analysis
Trend Pattern
Up Trend: The Buying strategy is preferable when the market goes Up
Down Trend: The Selling strategy would be right when the market goes Down
When the market moves Sideways the third option – to Stay Asidewill be the Wisest Decision
Forex Trend is the Direction in which the Market Moves. It is comprised of a series of Highs and Lows, and depending
on the movement of those peaks and troughs one can understand the trend in the market.
Support and Resistance Strategy
Support : A zone where the price that is declining is likely to stop and reverse.
Resistance: A zone where the price that is progressing will probably stop and reverse.
The Support and Resistance are the terms for Price Lows and Highs respectively
Support level indicates the area on the chart where the Buying Interest is significantly Strong and surpasses
the selling pressure
Resistance level represents an area on the chart where Selling Interest overcome buying pressure
When the Price Falls to the Support Level, Traders decide to Buy creating demand and driving the price up
When the Price Rises to a Resistance Level, Traders decide to Sell, creating a downward pressure and
driving the price down
The three easy indicators one has to be familiar with include:
Technical Indicators
Moving Average
MTF Analysis
Heat Map
Technical indicators help to interpret price data and generate buy
and sell signals.
They help in identifying the trending environment and find
high probability entry and exit points.
What is Moving Average?
Price can be set at open, close, high, or low.
Moving Average
“Simple Moving Average”, or “SMA”, indicator is one of the
oldest and most common indicators used.
It was designed to smooth out the effects of price volatility
and create a clearer picture of changing price trends.
It has two variables involved in its computation “period”
and “price”.
The period can be chosen, but values over “20” are normal-
ly better when dealing with longer trend lines.
There four basic MA types:
Moving Average (MA) is a trend indicator, which is essentially a curve calculated
based on the price changes. It assists traders by confirming the trend.
Simple MA– Its values are simple arithmetic means of the price changes.
Exponential MA– Here more weight is given to the latest data.The weight is
calculated in arithmetic series.
Linearly weighted MA-More weight is given to the latest data, however, the
weight is calculated exponentially.
Smoothed MA– More weight is given to the latest data, it takes into account the price
values beyond the time period (their influence is not significant).
How to add the Moving
Average Indicator?
Select “Indicators”–”Trend”–”Moving Average” in the “Insert” tab
of the upper menu or just by clicking on the relevant icon on the toolbar.
To set the indicator right click on the indicator and select MA(32)
properties. You will see a window, where you can set the
following parameters:
- Period
- Shift
- МА method ( МА type, like Simple, Smoothed, Exponential
and Linear Weighted)
- Apply to (calculate based on the opening/closing price, etc.)
- МА style (color, thickness)
You can also choose the timeframes from the visualization window.
It is the most basic trading approach as only one indicator is
needed for the analysis
Trading with the Moving
Average Indicator
Trading with One MA
Trading with Two MA
The chart has two Moving Averages with different parameters and
the signal is the intersection of two Moving Averages.
In this case if the fast Moving Average crosses the slow one
upwards, then a long position opens.
In this case the position should be open when the price crosses the
Moving Average. If the price crosses the Moving Average Upwards a
Long Position opens and vice versa.
MTF - Analysis Multiple Time Frame
It refers to monitoring the same currency pair across various frequencies.
Helps a trader zoom in to find out better entry and exit points.
Offers the opportunity for traders to understand the market structure in a much deeper and profound way
than any single time frame analysis
Multiple Time Frames
You can analyze 9 degrees of time frames in the MT4 Platform:
1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, 1 day, 1 week and 1 month
The Best Time Frame Combinations
Spotting Support & Resistance - Support & Resistance is key for the higher time frames. Reviewing
the weekly chart, for instance, is useful if you are a swing trader.
Identifying the trend and patterns - The middle time frames are the best for viewing trends, momentum, corrections,
and patterns in general. For swing traders this would be a daily chart, whereas for intra-day or intra-week traders,
1-hour or 4-hour chart would be appropriate.
Searching for entries - The lowest time frames are the best trigger chart, and are useful for trading
purposes. It is the best for finding the entry, and also for taking a trade setup.
There is nothing wrong with single time frame analysis, but traders can see clearer benefits performing multiple
time frame analysis, specifically when using three charts with three different roles.
Heat Map
It also identifies the risk of entry on each and every potential trade.
It is a real time visual map of the entire forex market for spotting
strength and weakness in individual currencies.
It also verifies and validates any trade entry. It monitors 28 currency
pairs in real time.
Heat Map tells when the market or individual currency groups have
mixed signals and tells when NOT to enter a trade.
Forex Strategy
1. Swing Trading
Swing Trading identifies swings within a medium
term trend and enters only when there is a high
probability of winning.
In swing trading trades last longer than one day
and hence larger stop losses are required to
stand the volatility.
In an Uptrend a trader will aim to Buy at Swing
Lows and in a Downtrend a trader will aim to
Sell at Swing Highs.
Traders can see trades go against them while holding their positions because of the fluctuations in the price during
shorter time frames. It is important to stay calm and trust the analysis.
Spreads do not have an impact on the overall profits and hence currency pairs with larger spreads and lower liquidity
are acceptable.
Are patient
can hold trades for several days
take up few trades with good trade setups
don’t mind having large stop losses
Suitable for those who:
The Best Time Frame is the 4 hour chart with the Time Period being 14
It is better to use indicators like the Simple Moving Average; Support and
Resistance & the Candle Stick Chart Pattern
It is better to maintain a minimum Risk-Reward Ratio between 1:2 to 1:5
Suggestions:
2. Day Trading
Day Trading refers to Opening and Closing the Trades on the Same Day and
requires traders to be active throughout the trading session.
It is a short term trading style and here a trader takes only one trade a day
and closes it when the day is over. Here the trades are not held overnight.
For a day trader it is important to keep an eye on the latest fundamental
events in order to make trading decisions at the start of the day.
Wish to begin and end a trade within a day.
have enough time to analyze, execute and monitor a trade throughout the
day.
think scalping is too fast and swing trading is a bit slow.
Suitable for those who:
The Best Time Frame is a 15 min chart
It is better to use the Parabolic SAR indicator
It is better to maintain a 1:1 to 1:2 Risk-Reward Ratio
Suggestions:
The key concepts to survive as a Forex Trader:
Risk Management-
Keeping Risk Under Control
Maintaining the Risk-Reward ratio
Using Stop Loss and Take Profit
Selecting the apt lot size
Controlling your Emotions (Greed; Fear and Over Trading)
Following the Trading Strategy
Risk
Management
Trading
Strategy
Risk-Reward
Ratio
Stop
Loss
andTakeProfit
Lot Size
Controlyour
Emotions
Golden Rules Successful
Traders Follow
They maintain the Basic Infrastructure i.e they keep the
computer in a good state with a proper and fast internet
connection.
They do not Gamble. They take Forex as a business and
consider it as pure trading.
They are 100% Disciplined.
They follow the Same Trading Strategy.
They follow all the Risk Management Rules.
Trade keeping their Emotions Aside.
They Maintain History for each and every Trade they place
and learn from their Mistakes.
They Keep Learning.
Maintain Basic Infrastructure
Do Not Gamble
100% Discipline
Follow Same Trading Strategy
Follow Risk Management Rules
Keep Emotions Aside
Maintain Trading History
Keep Learning
SUCCESS
Why do Traders Fail?
No proper trading plan or constant strategy to follow.
Expectations of high returns in short span of time.
No risk management i.e High Leverage or no proper use of Lot size,Stop Loss.
Do overtrading or averaging the loss trades repeatedly.
Being unaware of upcoming major news and data events.
Without proper learning and experience, quitting the market.
No Trading
Plan
Setting the
Wrong Goals
Undermining
Money
Management
Letting Losses
Compound
Unaware of the
News and
Data Events
Giveup and
Leave
the Market
The Key to Successful Trading!!
Happy Trading !!!
“Follow Trading Rules Keeping Emotions Apart”
“Trade with Discipline and the Market will Reward You”
Thank You

Contenu connexe

Tendances

Simple scalping secret strategy
Simple scalping secret strategySimple scalping secret strategy
Simple scalping secret strategyHeri Valiant
 
Beginners Guide to Forex Trading
Beginners Guide to Forex TradingBeginners Guide to Forex Trading
Beginners Guide to Forex TradingFXConnection
 
High Probability Trading Setups
High Probability Trading SetupsHigh Probability Trading Setups
High Probability Trading Setupsbtrader
 
Cmt learning objective 1 c trends , trendlines & channels
Cmt learning objective  1 c   trends , trendlines & channelsCmt learning objective  1 c   trends , trendlines & channels
Cmt learning objective 1 c trends , trendlines & channelsProfessional Training Academy
 
Let's Get to Know Forex - An Introduction to Trading Currencies
Let's Get to Know Forex - An Introduction to Trading CurrenciesLet's Get to Know Forex - An Introduction to Trading Currencies
Let's Get to Know Forex - An Introduction to Trading CurrenciesLearn FX Trade
 
Forex Trading For Beginners
Forex Trading For BeginnersForex Trading For Beginners
Forex Trading For BeginnersSyrous Pejman
 
Price action trading1
Price action trading1Price action trading1
Price action trading1labyo
 
Secrets of Price Action Trading
Secrets of Price Action TradingSecrets of Price Action Trading
Secrets of Price Action TradingSyrous Pejman
 
Intraday trading formulae, Strategies and rules
Intraday trading formulae, Strategies and rulesIntraday trading formulae, Strategies and rules
Intraday trading formulae, Strategies and rulesBikramjit Singh
 
The power to predict basics and advanced forex analysis
The power to predict   basics and advanced forex analysisThe power to predict   basics and advanced forex analysis
The power to predict basics and advanced forex analysisPower Point
 
Bollinger Bands - Here is how to trade them
Bollinger Bands - Here is how to trade themBollinger Bands - Here is how to trade them
Bollinger Bands - Here is how to trade themNetpicksTrading
 
How to Become a Professional Trader
How to Become a Professional TraderHow to Become a Professional Trader
How to Become a Professional Trader My Trading Skills
 
Trade like pro supply & demand
Trade like pro supply & demandTrade like pro supply & demand
Trade like pro supply & demandalkaserr
 
40 pip parabolic sar forex strategy (1)
40 pip parabolic sar forex strategy (1)40 pip parabolic sar forex strategy (1)
40 pip parabolic sar forex strategy (1)pipsumo traderfx
 
Simple trading strategy for beginners
Simple trading strategy for beginnersSimple trading strategy for beginners
Simple trading strategy for beginnerspipsumo traderfx
 
Top 8 Forex Trading Strategies
Top 8 Forex Trading StrategiesTop 8 Forex Trading Strategies
Top 8 Forex Trading StrategiesSyrous Pejman
 
PRICE ACTION-TRADING SECRET BY KHAN (1).pdf
PRICE ACTION-TRADING SECRET BY KHAN (1).pdfPRICE ACTION-TRADING SECRET BY KHAN (1).pdf
PRICE ACTION-TRADING SECRET BY KHAN (1).pdfShraddhaSahu49
 
Simple rules for trading #2
Simple rules for trading #2Simple rules for trading #2
Simple rules for trading #2eminiaddict
 
Support resistance trading strategies - a comparison
Support resistance trading strategies - a comparisonSupport resistance trading strategies - a comparison
Support resistance trading strategies - a comparisonHimanshu Patil
 

Tendances (20)

Simple scalping secret strategy
Simple scalping secret strategySimple scalping secret strategy
Simple scalping secret strategy
 
Forex trading strategies
Forex trading strategiesForex trading strategies
Forex trading strategies
 
Beginners Guide to Forex Trading
Beginners Guide to Forex TradingBeginners Guide to Forex Trading
Beginners Guide to Forex Trading
 
High Probability Trading Setups
High Probability Trading SetupsHigh Probability Trading Setups
High Probability Trading Setups
 
Cmt learning objective 1 c trends , trendlines & channels
Cmt learning objective  1 c   trends , trendlines & channelsCmt learning objective  1 c   trends , trendlines & channels
Cmt learning objective 1 c trends , trendlines & channels
 
Let's Get to Know Forex - An Introduction to Trading Currencies
Let's Get to Know Forex - An Introduction to Trading CurrenciesLet's Get to Know Forex - An Introduction to Trading Currencies
Let's Get to Know Forex - An Introduction to Trading Currencies
 
Forex Trading For Beginners
Forex Trading For BeginnersForex Trading For Beginners
Forex Trading For Beginners
 
Price action trading1
Price action trading1Price action trading1
Price action trading1
 
Secrets of Price Action Trading
Secrets of Price Action TradingSecrets of Price Action Trading
Secrets of Price Action Trading
 
Intraday trading formulae, Strategies and rules
Intraday trading formulae, Strategies and rulesIntraday trading formulae, Strategies and rules
Intraday trading formulae, Strategies and rules
 
The power to predict basics and advanced forex analysis
The power to predict   basics and advanced forex analysisThe power to predict   basics and advanced forex analysis
The power to predict basics and advanced forex analysis
 
Bollinger Bands - Here is how to trade them
Bollinger Bands - Here is how to trade themBollinger Bands - Here is how to trade them
Bollinger Bands - Here is how to trade them
 
How to Become a Professional Trader
How to Become a Professional TraderHow to Become a Professional Trader
How to Become a Professional Trader
 
Trade like pro supply & demand
Trade like pro supply & demandTrade like pro supply & demand
Trade like pro supply & demand
 
40 pip parabolic sar forex strategy (1)
40 pip parabolic sar forex strategy (1)40 pip parabolic sar forex strategy (1)
40 pip parabolic sar forex strategy (1)
 
Simple trading strategy for beginners
Simple trading strategy for beginnersSimple trading strategy for beginners
Simple trading strategy for beginners
 
Top 8 Forex Trading Strategies
Top 8 Forex Trading StrategiesTop 8 Forex Trading Strategies
Top 8 Forex Trading Strategies
 
PRICE ACTION-TRADING SECRET BY KHAN (1).pdf
PRICE ACTION-TRADING SECRET BY KHAN (1).pdfPRICE ACTION-TRADING SECRET BY KHAN (1).pdf
PRICE ACTION-TRADING SECRET BY KHAN (1).pdf
 
Simple rules for trading #2
Simple rules for trading #2Simple rules for trading #2
Simple rules for trading #2
 
Support resistance trading strategies - a comparison
Support resistance trading strategies - a comparisonSupport resistance trading strategies - a comparison
Support resistance trading strategies - a comparison
 

Similaire à Forex Trading - How to Create a Trading Strategy | Different Candle Stick Patterns

Techanical analysis (1)
Techanical analysis (1)Techanical analysis (1)
Techanical analysis (1)neelakshi81
 
Sensex and its working
Sensex and its workingSensex and its working
Sensex and its workingUjjainiPalit
 
Technical Analysis of the Stock market- Traders Mantra
Technical Analysis of the Stock market- Traders MantraTechnical Analysis of the Stock market- Traders Mantra
Technical Analysis of the Stock market- Traders MantraTraders Mantra
 
Technicalanalysisppt 120809084534-phpapp02
Technicalanalysisppt 120809084534-phpapp02Technicalanalysisppt 120809084534-phpapp02
Technicalanalysisppt 120809084534-phpapp02Deeksha Rathee
 
A fundamental study on Technical Analysis
A fundamental study on Technical AnalysisA fundamental study on Technical Analysis
A fundamental study on Technical AnalysisJay Sadhwani
 
Technical-Analysis.pdf
Technical-Analysis.pdfTechnical-Analysis.pdf
Technical-Analysis.pdfSutarAtharv
 
Technical analysis for begineers 101
Technical analysis for begineers 101Technical analysis for begineers 101
Technical analysis for begineers 101LimSzeYee
 
Price Action Trading Best 100% Successful Strategies used by Investors.pdf
Price Action Trading Best 100% Successful Strategies used by Investors.pdfPrice Action Trading Best 100% Successful Strategies used by Investors.pdf
Price Action Trading Best 100% Successful Strategies used by Investors.pdfNazim Khan
 
AnalysisTechnical Analysis PPT @ MBABECDOMS
AnalysisTechnical Analysis PPT @ MBABECDOMSAnalysisTechnical Analysis PPT @ MBABECDOMS
AnalysisTechnical Analysis PPT @ MBABECDOMSBabasab Patil
 
Technical analysis doc
Technical analysis doc Technical analysis doc
Technical analysis doc Babasab Patil
 
Technical analysis
Technical analysisTechnical analysis
Technical analysismbawbut
 
Stock market
Stock marketStock market
Stock marketgupta24
 
Financial Markets & Trading - Introduction
Financial Markets & Trading - IntroductionFinancial Markets & Trading - Introduction
Financial Markets & Trading - IntroductionAditya Dasgupta
 

Similaire à Forex Trading - How to Create a Trading Strategy | Different Candle Stick Patterns (20)

Techanical analysis (1)
Techanical analysis (1)Techanical analysis (1)
Techanical analysis (1)
 
Sensex and its working
Sensex and its workingSensex and its working
Sensex and its working
 
Technical Analysis of the Stock market- Traders Mantra
Technical Analysis of the Stock market- Traders MantraTechnical Analysis of the Stock market- Traders Mantra
Technical Analysis of the Stock market- Traders Mantra
 
Technicalanalysisppt 120809084534-phpapp02
Technicalanalysisppt 120809084534-phpapp02Technicalanalysisppt 120809084534-phpapp02
Technicalanalysisppt 120809084534-phpapp02
 
A fundamental study on Technical Analysis
A fundamental study on Technical AnalysisA fundamental study on Technical Analysis
A fundamental study on Technical Analysis
 
6th chapter
6th chapter6th chapter
6th chapter
 
SAPM-33.pptx
SAPM-33.pptxSAPM-33.pptx
SAPM-33.pptx
 
Technical-Analysis.pdf
Technical-Analysis.pdfTechnical-Analysis.pdf
Technical-Analysis.pdf
 
Fm1 unit2 conti..
Fm1 unit2 conti..Fm1 unit2 conti..
Fm1 unit2 conti..
 
Investor Education
Investor EducationInvestor Education
Investor Education
 
Technical analysis for begineers 101
Technical analysis for begineers 101Technical analysis for begineers 101
Technical analysis for begineers 101
 
Price Action Trading Best 100% Successful Strategies used by Investors.pdf
Price Action Trading Best 100% Successful Strategies used by Investors.pdfPrice Action Trading Best 100% Successful Strategies used by Investors.pdf
Price Action Trading Best 100% Successful Strategies used by Investors.pdf
 
Technical analysis
Technical analysisTechnical analysis
Technical analysis
 
AnalysisTechnical Analysis PPT @ MBABECDOMS
AnalysisTechnical Analysis PPT @ MBABECDOMSAnalysisTechnical Analysis PPT @ MBABECDOMS
AnalysisTechnical Analysis PPT @ MBABECDOMS
 
Technical analysis doc
Technical analysis doc Technical analysis doc
Technical analysis doc
 
Instaforex brociur
Instaforex brociurInstaforex brociur
Instaforex brociur
 
Technical analysis
Technical analysisTechnical analysis
Technical analysis
 
Stock market
Stock marketStock market
Stock market
 
Starbucks Valuation
Starbucks ValuationStarbucks Valuation
Starbucks Valuation
 
Financial Markets & Trading - Introduction
Financial Markets & Trading - IntroductionFinancial Markets & Trading - Introduction
Financial Markets & Trading - Introduction
 

Plus de BlueMax Capital

BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...
BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...
BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...BlueMax Capital
 
Crypto Currency Trading - BlueMax Capital
Crypto Currency Trading - BlueMax CapitalCrypto Currency Trading - BlueMax Capital
Crypto Currency Trading - BlueMax CapitalBlueMax Capital
 
Forex Partnership Program - BlueMax Capital- Introducing Broker
Forex Partnership Program - BlueMax Capital- Introducing BrokerForex Partnership Program - BlueMax Capital- Introducing Broker
Forex Partnership Program - BlueMax Capital- Introducing BrokerBlueMax Capital
 
Opening a Forex Trading Account
Opening a Forex Trading AccountOpening a Forex Trading Account
Opening a Forex Trading AccountBlueMax Capital
 
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...BlueMax Capital
 
BlueMax Capital - Partnership Program- PAMM Promoter
BlueMax Capital - Partnership Program- PAMM PromoterBlueMax Capital - Partnership Program- PAMM Promoter
BlueMax Capital - Partnership Program- PAMM PromoterBlueMax Capital
 
All About Forex Trading - BlueMax Capital
All About Forex Trading - BlueMax CapitalAll About Forex Trading - BlueMax Capital
All About Forex Trading - BlueMax CapitalBlueMax Capital
 
Forex Partnership Program - BlueMax Capital
Forex Partnership Program - BlueMax CapitalForex Partnership Program - BlueMax Capital
Forex Partnership Program - BlueMax CapitalBlueMax Capital
 
PAMM - Forex Fund Management Solution. BlueMax Capital
PAMM - Forex Fund Management Solution. BlueMax CapitalPAMM - Forex Fund Management Solution. BlueMax Capital
PAMM - Forex Fund Management Solution. BlueMax CapitalBlueMax Capital
 

Plus de BlueMax Capital (9)

BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...
BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...
BlueMax Capital- The Most Reliable Forex Brokerage Firm | Forex - Foreign Exc...
 
Crypto Currency Trading - BlueMax Capital
Crypto Currency Trading - BlueMax CapitalCrypto Currency Trading - BlueMax Capital
Crypto Currency Trading - BlueMax Capital
 
Forex Partnership Program - BlueMax Capital- Introducing Broker
Forex Partnership Program - BlueMax Capital- Introducing BrokerForex Partnership Program - BlueMax Capital- Introducing Broker
Forex Partnership Program - BlueMax Capital- Introducing Broker
 
Opening a Forex Trading Account
Opening a Forex Trading AccountOpening a Forex Trading Account
Opening a Forex Trading Account
 
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...
PAMM - Forex Fund Management Solution. BlueMax Capital. An Easy Way to Earn a...
 
BlueMax Capital - Partnership Program- PAMM Promoter
BlueMax Capital - Partnership Program- PAMM PromoterBlueMax Capital - Partnership Program- PAMM Promoter
BlueMax Capital - Partnership Program- PAMM Promoter
 
All About Forex Trading - BlueMax Capital
All About Forex Trading - BlueMax CapitalAll About Forex Trading - BlueMax Capital
All About Forex Trading - BlueMax Capital
 
Forex Partnership Program - BlueMax Capital
Forex Partnership Program - BlueMax CapitalForex Partnership Program - BlueMax Capital
Forex Partnership Program - BlueMax Capital
 
PAMM - Forex Fund Management Solution. BlueMax Capital
PAMM - Forex Fund Management Solution. BlueMax CapitalPAMM - Forex Fund Management Solution. BlueMax Capital
PAMM - Forex Fund Management Solution. BlueMax Capital
 

Dernier

INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxaymenkhalfallah23
 
Unit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfUnit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfSatyamSinghParihar2
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptPriyankaSharma89719
 
The AES Investment Code - the go-to counsel for the most well-informed, wise...
The AES Investment Code -  the go-to counsel for the most well-informed, wise...The AES Investment Code -  the go-to counsel for the most well-informed, wise...
The AES Investment Code - the go-to counsel for the most well-informed, wise...AES International
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Commonwealth
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptxHenry Tapper
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...Amil baba
 
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...amilabibi1
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...Amil baba
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdfglobusfinanza
 
Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Precize Formely Leadoff
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxDrRkurinjiMalarkurin
 
Guard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfGuard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfJasper Colin
 
Gender and caste discrimination in india
Gender and caste discrimination in indiaGender and caste discrimination in india
Gender and caste discrimination in indiavandanasingh01072003
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial managementshrutisingh143670
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书rnrncn29
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxsimon978302
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfMichael Silva
 

Dernier (20)

INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
 
Unit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfUnit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdf
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth AdvisorsQ1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
 
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.pptAnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
AnyConv.com__FSS Advance Retail & Distribution - 15.06.17.ppt
 
The AES Investment Code - the go-to counsel for the most well-informed, wise...
The AES Investment Code -  the go-to counsel for the most well-informed, wise...The AES Investment Code -  the go-to counsel for the most well-informed, wise...
The AES Investment Code - the go-to counsel for the most well-informed, wise...
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
 
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
Amil Baba In Pakistan amil baba in Lahore amil baba in Islamabad amil baba in...
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf
 
Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
 
Guard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdfGuard Your Investments- Corporate Defaults Alarm.pdf
Guard Your Investments- Corporate Defaults Alarm.pdf
 
Gender and caste discrimination in india
Gender and caste discrimination in indiaGender and caste discrimination in india
Gender and caste discrimination in india
 
Liquidity Decisions in Financial management
Liquidity Decisions in Financial managementLiquidity Decisions in Financial management
Liquidity Decisions in Financial management
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptx
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdf
 

Forex Trading - How to Create a Trading Strategy | Different Candle Stick Patterns

  • 1. How to Create a Trading Strategy ? Be Discipline, Be Rich
  • 2. Synopsis Forex Fundamental Analysis Forex Technical Analysis Risk Management Rules of Successful Forex Traders Why do Traders Fail?
  • 3. The Country's Economy Unemployment Rate Political Events GDP Interest Rate Inflation Consumer Price Index Balance of Trade Purchase Price Index Natural Disasters The Major Economic Indicators Include: An Introduction to Fundamental Analysis Fundamental Analysis refers to a method of analyzing the Forex Market based on the economic, social and political factors. It mainly focuses on the overall state of the economy and includes other factors like the Interest Rate, Employment, GDP, International Trade, etc and the impact it has on the value of a particular nation's currency. The key aspect of Fundamental Analysis is to discover the real value of a currency and to compare it with the current price and to discover a trading opportunity.
  • 4. Economic Calendar The economic calendar shows the upcoming events across the world. Provides useful information on upcoming macroeconomic events by means of pre-scheduled news announcements and government reports on economic indicators that influence the financial markets. It helps a trader find out which event could shift or shake the value of a particular country's currency. The events are ranked in order of importance in terms of low;medium and high or in terms of bulls or colours. By following indicators like GDP, Inflation and Employment Strength, a trader can anticipate market volatility and gain potential trading opportunities in good time. investing.com fxstreet.com
  • 5. Interest Rates The biggest factor that drives the foreign-exchange market is the interest rate changes made by any of the global central banks. The changes are an indirect response to other economic indicators and they possess the power to move the market immediately and with full force. As the interest rate changes often, it makes the biggest impact on the market. Inflation is one of the major aspect that influences the Central Bank's interest rate decision. Understanding how to predict and react to these volatile moves can lead to quicker responses and higher profit levels. Higher interest rate increases the value of a country's currency and attracts foreign investment, increasing the demand and value of the home country's currency and in case of lower interest rates it is vice versa. INTEREST RATES %
  • 6. Monetary Policy It refers to the macroeconomic policy laid down by the Central Banks. It involves management of money supply and interest rate and is used by the government of a country to achieve its macroeconomic objectives like Inflation, Consumption, Growth and Liquidity. The goal of monetary policy is to stabilize GDP in order to achieve and maintain low unemployment rate and maintain predictable exchange rates with other currencies. Central Banks use monetary policy to control: - Inflation - Money Supply - Lending's to Commercial Banks - Interest Rates - The portion of Depositors Balance Commercial Banks should have on hand as Cash. Objectives Price Stability Economic Growth Full Employment and Maximum Output Exchange Stability Interest Rates
  • 7. Political Events Political events affect the market more than the economic data. When an investor puts his money in a stable country with a strong economy and a stable political system. Any political uncertainty might pull down the domestic currency. As a result, the investor withdraws his assets and invests them in stronger currencies. Hence, all these lead to the suffering of the economy and a greater depreciation of the currency. ELECTIONS SOCIAL INSTABLITY CROSS COUNTRY DISPUTES INTERNATIONAL SUMMITS AND MEETINGS SPEECHES AND COMMENTS OF POLITICAL OFFICIALS The Value of Currency
  • 8. To Know More : To know more on Forex News, Courses and Forum Discussions visit: Babypips.com Investing.com Fx Street Fx Factory
  • 9. Forex Technical Analysis Synopsis: An Introduction Forex Charts Technical Indicators Technical Strategies
  • 10. Technical Analysis Predicting the Future Price action based on the Historical performance Evaluating assets based on the Analysis and Statistics of Past Market Action, such as past prices and past volume Analyzing the market using Technical Charts, Indicators and Tools.
  • 11. Forex Charts Used by traders to Analyze the Movement of Currency Prices and determine the moment to Buy and Sell Three primary chart types which include Line chart, Bar chart and Candlestick chart
  • 12. Line Chart Bar Chart Draws a line from one Closing Price to the Next Closing Price. When strung together with a line, we can see the general price movement of a currency pair over a period of time. It shows the Opening and Closing prices, as well as the Highs and Lows. The Bottom of the vertical bar indicates the Lowest traded price for that time period, while the Top of the bar indicates the Highest price paid.
  • 13. Candlestick Chart Candlestick charts show the same price information as a bar chart, but in a Graphic Format. In candlestick charting, the larger block (or body) in the middle indicates the range between the opening and closing prices. If the block in the middle is filled or colored in, then the currency pair closed lower than it opened.
  • 14. Types of Candlesticks A bullish candle is formed when there is a significant increase in price with a longer body. The body of the candle can stretch as much as it can, which says that there is a growth in the market. A bullish candle means there is currently more buying pressure in the market. As long as buyers maintain enough buying pressure the candles will be bullish. If buying pressure eases and selling pressure increases bullish candles will become smaller, representing decreased bull strength. Bullish Candle
  • 15. Bearish Candle A bearish candle is formed when there is a decrease in the market. Longer the body the more chances of a price decrease. A Bearish Candle means there is currently more selling pressure in the market. As long as sellers maintain enough selling pressure the candles will be bearish. If selling pressure eases and buying pressure increases, bearish candles will become smaller, representing decreased bear strength.
  • 16. Spinning Tops It is a neutral pattern that occurs when the distance between the high and low, and the distance between the open and close, are relatively small. Spinning tops are the patterns where small real bodies are formed. These patterns have much longer shadows than the bodies. It points both bullish and bearish trend.
  • 17. Doji is a pattern, in which the market opens and closes at the same time. There are different types of Doji patterns depending upon the opening and closing of the market. Long-Legged Doji: This long-legged Doji comprises of long upper and long down shadow, and the price in the middle. Dragonfly Doji: The dragonfly pattern signifies downtrend; it has long lower shadow and has no upper shadow. Gravestone Doji: The gravestone Doji signifies uptrend; it has long upper shadow and have no down shadow. Four Price Doji: This form of pattern indicates a very quiet market. It shows just a line which indicates indecision. In this pattern, the open, close, highs and the lows are all the same for the trader. The Doji patterns include: Doji - Trend Reversal Signal
  • 18. Hammer & Hanging Man Hammer, is a bullish signal. In this candle, the down shadow must be twice the length of the real body. These hammers have little shadow up or no shadow at all. It appears after a significant downtrend. If the line occurs after a significant uptrend, it is called a Hanging Man. A small body and a long wick identify the Hammer. The body can be empty or filled in.
  • 19. Inverted Hammer & Shooting Star An inverted hammer is a bullish reversal candlestick. A shooting star is a bearish reversal candlestick. Both candlesticks have little bodies (filled or hollow), long upper shadows, and small or absent lower shadows. The inverted hammer occurs when price has been falling suggesting the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. The shooting star occurs when price has been rising. Its shape indicates that buyers attempted to push the price up, but sellers came in and overpowered them.
  • 20. Engulfing candlestick patterns takes two candlesticks to be identified: Engulfing Candle - Similarly a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body. - A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. This candlestick patterns exhibits extreme market sentiment. A bullish engulfing pattern tells us that the buyers have overcome the sellers in the market, thus indicating an increase in the price and vice versa.
  • 21. Three White Soldiers Uptrend Indicated It is a Bullish candlestick pattern that is used to predict the uptrend in a pricing chart. It consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. The size of the candles and the length of the shadow is used to judge whether there is a risk of retracement. It suggests a strong change in market sentiment. The pattern is mostly preceded by other candlestick patterns suggestive of a reversal, such as a Doji.
  • 22. Three Black Crows Downtrend Indicated It is a bearish candlestick pattern that is used to predict the reversal of the current uptrend. It consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed lower than the previous candle. The pattern occurs when bears overtake the bulls during three consecutive trading sessions and shows up on the pricing charts as three bearish long-bodied candlesticks with short shadows.
  • 24. Trend Pattern Up Trend: The Buying strategy is preferable when the market goes Up Down Trend: The Selling strategy would be right when the market goes Down When the market moves Sideways the third option – to Stay Asidewill be the Wisest Decision Forex Trend is the Direction in which the Market Moves. It is comprised of a series of Highs and Lows, and depending on the movement of those peaks and troughs one can understand the trend in the market.
  • 25. Support and Resistance Strategy Support : A zone where the price that is declining is likely to stop and reverse. Resistance: A zone where the price that is progressing will probably stop and reverse.
  • 26. The Support and Resistance are the terms for Price Lows and Highs respectively Support level indicates the area on the chart where the Buying Interest is significantly Strong and surpasses the selling pressure Resistance level represents an area on the chart where Selling Interest overcome buying pressure When the Price Falls to the Support Level, Traders decide to Buy creating demand and driving the price up When the Price Rises to a Resistance Level, Traders decide to Sell, creating a downward pressure and driving the price down
  • 27. The three easy indicators one has to be familiar with include: Technical Indicators Moving Average MTF Analysis Heat Map Technical indicators help to interpret price data and generate buy and sell signals. They help in identifying the trending environment and find high probability entry and exit points.
  • 28. What is Moving Average? Price can be set at open, close, high, or low. Moving Average “Simple Moving Average”, or “SMA”, indicator is one of the oldest and most common indicators used. It was designed to smooth out the effects of price volatility and create a clearer picture of changing price trends. It has two variables involved in its computation “period” and “price”. The period can be chosen, but values over “20” are normal- ly better when dealing with longer trend lines.
  • 29. There four basic MA types: Moving Average (MA) is a trend indicator, which is essentially a curve calculated based on the price changes. It assists traders by confirming the trend. Simple MA– Its values are simple arithmetic means of the price changes. Exponential MA– Here more weight is given to the latest data.The weight is calculated in arithmetic series. Linearly weighted MA-More weight is given to the latest data, however, the weight is calculated exponentially. Smoothed MA– More weight is given to the latest data, it takes into account the price values beyond the time period (their influence is not significant).
  • 30. How to add the Moving Average Indicator? Select “Indicators”–”Trend”–”Moving Average” in the “Insert” tab of the upper menu or just by clicking on the relevant icon on the toolbar. To set the indicator right click on the indicator and select MA(32) properties. You will see a window, where you can set the following parameters: - Period - Shift - МА method ( МА type, like Simple, Smoothed, Exponential and Linear Weighted) - Apply to (calculate based on the opening/closing price, etc.) - МА style (color, thickness) You can also choose the timeframes from the visualization window.
  • 31. It is the most basic trading approach as only one indicator is needed for the analysis Trading with the Moving Average Indicator Trading with One MA Trading with Two MA The chart has two Moving Averages with different parameters and the signal is the intersection of two Moving Averages. In this case if the fast Moving Average crosses the slow one upwards, then a long position opens. In this case the position should be open when the price crosses the Moving Average. If the price crosses the Moving Average Upwards a Long Position opens and vice versa.
  • 32. MTF - Analysis Multiple Time Frame It refers to monitoring the same currency pair across various frequencies. Helps a trader zoom in to find out better entry and exit points. Offers the opportunity for traders to understand the market structure in a much deeper and profound way than any single time frame analysis
  • 33. Multiple Time Frames You can analyze 9 degrees of time frames in the MT4 Platform: 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, 1 day, 1 week and 1 month
  • 34. The Best Time Frame Combinations Spotting Support & Resistance - Support & Resistance is key for the higher time frames. Reviewing the weekly chart, for instance, is useful if you are a swing trader. Identifying the trend and patterns - The middle time frames are the best for viewing trends, momentum, corrections, and patterns in general. For swing traders this would be a daily chart, whereas for intra-day or intra-week traders, 1-hour or 4-hour chart would be appropriate. Searching for entries - The lowest time frames are the best trigger chart, and are useful for trading purposes. It is the best for finding the entry, and also for taking a trade setup. There is nothing wrong with single time frame analysis, but traders can see clearer benefits performing multiple time frame analysis, specifically when using three charts with three different roles.
  • 35. Heat Map It also identifies the risk of entry on each and every potential trade. It is a real time visual map of the entire forex market for spotting strength and weakness in individual currencies. It also verifies and validates any trade entry. It monitors 28 currency pairs in real time. Heat Map tells when the market or individual currency groups have mixed signals and tells when NOT to enter a trade.
  • 36. Forex Strategy 1. Swing Trading Swing Trading identifies swings within a medium term trend and enters only when there is a high probability of winning. In swing trading trades last longer than one day and hence larger stop losses are required to stand the volatility. In an Uptrend a trader will aim to Buy at Swing Lows and in a Downtrend a trader will aim to Sell at Swing Highs. Traders can see trades go against them while holding their positions because of the fluctuations in the price during shorter time frames. It is important to stay calm and trust the analysis. Spreads do not have an impact on the overall profits and hence currency pairs with larger spreads and lower liquidity are acceptable. Are patient can hold trades for several days take up few trades with good trade setups don’t mind having large stop losses Suitable for those who: The Best Time Frame is the 4 hour chart with the Time Period being 14 It is better to use indicators like the Simple Moving Average; Support and Resistance & the Candle Stick Chart Pattern It is better to maintain a minimum Risk-Reward Ratio between 1:2 to 1:5 Suggestions:
  • 37. 2. Day Trading Day Trading refers to Opening and Closing the Trades on the Same Day and requires traders to be active throughout the trading session. It is a short term trading style and here a trader takes only one trade a day and closes it when the day is over. Here the trades are not held overnight. For a day trader it is important to keep an eye on the latest fundamental events in order to make trading decisions at the start of the day. Wish to begin and end a trade within a day. have enough time to analyze, execute and monitor a trade throughout the day. think scalping is too fast and swing trading is a bit slow. Suitable for those who: The Best Time Frame is a 15 min chart It is better to use the Parabolic SAR indicator It is better to maintain a 1:1 to 1:2 Risk-Reward Ratio Suggestions:
  • 38. The key concepts to survive as a Forex Trader: Risk Management- Keeping Risk Under Control Maintaining the Risk-Reward ratio Using Stop Loss and Take Profit Selecting the apt lot size Controlling your Emotions (Greed; Fear and Over Trading) Following the Trading Strategy Risk Management Trading Strategy Risk-Reward Ratio Stop Loss andTakeProfit Lot Size Controlyour Emotions
  • 39. Golden Rules Successful Traders Follow They maintain the Basic Infrastructure i.e they keep the computer in a good state with a proper and fast internet connection. They do not Gamble. They take Forex as a business and consider it as pure trading. They are 100% Disciplined. They follow the Same Trading Strategy. They follow all the Risk Management Rules. Trade keeping their Emotions Aside. They Maintain History for each and every Trade they place and learn from their Mistakes. They Keep Learning. Maintain Basic Infrastructure Do Not Gamble 100% Discipline Follow Same Trading Strategy Follow Risk Management Rules Keep Emotions Aside Maintain Trading History Keep Learning SUCCESS
  • 40. Why do Traders Fail? No proper trading plan or constant strategy to follow. Expectations of high returns in short span of time. No risk management i.e High Leverage or no proper use of Lot size,Stop Loss. Do overtrading or averaging the loss trades repeatedly. Being unaware of upcoming major news and data events. Without proper learning and experience, quitting the market. No Trading Plan Setting the Wrong Goals Undermining Money Management Letting Losses Compound Unaware of the News and Data Events Giveup and Leave the Market
  • 41. The Key to Successful Trading!! Happy Trading !!! “Follow Trading Rules Keeping Emotions Apart” “Trade with Discipline and the Market will Reward You” Thank You