Therefore as a trader, you must be able to identify where the major supports and resistances are. With these level identified, you will then be able to know where to enter a trade, where to place your stop loss and where to place your target profit. In this section of the book, I will teach you a few ways to identify strong level of support and resistance.

Fibonacci Indicator The Fibonacci indicator is one that is commonly used by institutional traders and therefore the level of support and resistance created by this indicator is more significant. The Fibonacci indicator consists of retracement and extension. All you need to do is to drag the indicator from the top to the bottom of the wave and you will be able to select which retracement and extension level you want to show. From my trading experience, retracement level like the 0. As for the extension, it depends on the retracement.

If the price hits the 0. However if you are able to find level of multiple Fibonacci, that specific level will be where you are going to enter a trade. Pivot Points Besides the Fibonacci indicator, the Pivot point is another indicator that is used by institutional traders.

Similar to the Fibonacci indicator, the support and resistance level created by the Pivot points serve as a strong level of support and resistance. For the Pivot levels, you can plot the daily pivot, weekly pivot and monthly pivot on the same chart. Do note that the power of the monthly pivot is larger than the weekly pivot and the power of the weekly pivot is also larger than the daily pivot.

Swings Swings are V-shaped Swing Low and N-shaped Swing High patterns. When you see a swing high, the top level will then formed the resistance level. When you see a swing low, the bottom level will then formed the support level.

However not all swing highs and lows are of equal importance, those swings that have more depth are considered stronger level of support and resistance than those with lesser depth. Below are some pictures for your comparison. The above are 3 ways you can identify strong level of support and resistance. Therefore spend some time to practice them on your chart today to have a better understanding of their trading nature. Secret 2: Power of Indicators The next secret to successful trading lies in the indicators that you are using as well as how you use them.

Most traders do not know the nature of the indicators that they are using and therefore finds them useless to their trading. My suggestion to you is to learn the various ways to use an indicator as well as learning how to fine tune them to suits your trading plan. Below are some of my favourite indicators and the way you can use them in your trading.

So spend some time to go through them now. MACD Indicator Before I start to tell you the power of MACD, I must spend sometime to do a introduction on what is MACD and who invented it. MACD is a forex indicator that is developed by Gerald Appel who has written 12 books on investment strategies. MACD is in fact one of the simplest and reliable forex indicators I have used so far. As it is actually analyzing and displaying chart for past data, it is often know as a lagging indicator.

However there are times where you can use MACD as a leading indicator to help you predict the next movement of the price. What this means is 26 days and 12 days Exponential Moving Averages.

The 26 EMA is a slower setting for MACD which will produce a slower indicator that is less prone to whipsaws. As for the 12 EMA, it is usually a faster setting for MACD. In the MACD indicator, there will usually be a 9 days EMA that will represent the trigger line while the histogram represents the difference between MACD line and its trigger line. i Bullish Crossover: Bullish crossover usually indicates a upward movement in the market and the way you can identify a bullish crossover is through the two line in the indicator namely; MACD line and its trigger line.

Whenever MACD cut through its trigger line in the upward direction, it usually indicates an uptrend or an upward movement. ii Bearish Crossover: Bearish crossover usually indicates a downward movement of the price and the way you can identify a bearish crossover is when the MACD cut through its trigger line in the downward direction.

iii MACD Divergence: This is the best signal any trader can get from MACD: Divergence. First of all, let me explain to you what is MACD divergence all about. When we say that there is a divergence in MACD, we are referring to the scenario where MACD and the price are not in the same direction movement pattern. Example: When the highs of a currency pair is getting higher and higher, MACD highs are getting lower and lower.

From my experience, you will usually see a downside movement after a negative divergence is formed. When the lows of a currency pair is getting lower and lower, MACD lows are getting higher and higher. Whenever you see positive divergence, you will usually see a upside movement in price. You will have a more robust forex strategy if you are able to combine these two signals above to constitute your buy sell signals. MACD is a good indicator when it comes to buy sell signal as it always allow the trader to validate a trend line break or a breakout in price.

With this function, MACD can help the trader to identify fake outs in trading. ADX Indicator Riding the trend is one of the most profitable trading strategies you can have as it is a good way of producing high risk reward ratio trade and the best way to find out the status of the trend is to make use of the forex adx indicator. So Why ADX Indicator?

If you have been reading my blog, you will know that I have written an article to help you identify the trend of the market using various forex trend indicators like the moving averages. The moving averages are still a good way to tell the trend but they are unable to give you a value for the trend and this is where the ADX indicator comes into play.

What Is ADX Indicator? It is an indicator that is made up of a single line with value ranging from 0 to You may think that it looks like an oscillator but it is uni-directional.

If you take a close look at the picture below, you will find that the adx will point up when you are in a good uptrend as well as a downtrend.

How to Use the ADX Indicator? I personally use it to tell whether the market is trending or ranging. As stated in the earlier part of this post, the ADX has a range value from 0 to When it is moving below the 25 level, it is telling you that the strength of the market is very weak.

What usually happens at this time is that the market is in consolidation and will most probably be moving in a range. When the indicator moves above the 25 level, it is telling you that the trend is strengthening and the larger the value, the stronger will be the trend. However to have a better understanding of the trend you are in, you need to combine the direction of the indicator together with its value. Sign of a Strong Trend: You are in a strong uptrend or downtrend when the ADX indicator is pointing up and moving above the 25 level.

Sign of a Weak Trend: You are not in a strong trend when the indicator is pointing down and moving below the 25 level. Other Uses of ADX Indicator 1 Divergence: Besides using the ADX indicator for telling the strength of the trend, you can also use the divergence of this indicator to warn you of possible retracement or reversal.

If you have entered a LONG trade and you see the ADX making lower highs while the price make higher highs, this is a good time to exit your trade as a retracement or a reversal is going to occur.

The problem with most breakout traders is fake out which is the false movement of the market leading most inexperienced traders to enter a trade and then stopped them out by reversing the movement. With the ADX indicator, you will now be able to check if a breakout is valid or not.

When you see the price breaking out of a pattern or trend line, you can immediately check your indicator to see if it is pointing up and moving above the 25 level. A valid breakout will be formed when the ADX indicator is pointing up and moving above the 25 level and an invalid breakout will be the opposite.

I hope that you find this indicator useful for your trade and eventually integrate it into your trading plan. If you have other uses for the ADX, do share with us by commenting below. I hope that this blog will eventually become the place where traders share their knowledge and everyone can learn from one another. CCI Indicator The CCI indicator is known as the Commodity Channel Index and this is an indicator that is developed by Donald Lambert.

I will not bother you with the calculation of this indicator because your trading platform can automatically help you to calculate and plot out the indicator. What I am going to share with you today is what exactly this indicator can do for you and how you can integrate it to your trading plan. However when you see the CCI moving below the level, you are in a strong downtrend period and you can enter a SHORT trade.

Similar to the above LONG trade, you should exit your trade once the CCI move up to the - level. a Trend Line Break: You can make use of the CCI to draw trend line and once you see the trend line being breached, you are going to see the market moving in the direction of the breakout. b CCI Divergence: Similar to MACD divergence, the CCI also produces positive and negative divergences.

This is usually a signal that the market is going to move down but the time it takes for the down move may vary and you should not assume that it is coming in the next few candles. Similarly, you should not assume that it is going to happen very soon. When you see the indicator moving below the level, you are in an oversold zone and you can then place a LONG trade once you see the indicator moving above the level.

You can try this indicator out in your trading chart and see how it performs for you. If you have been in the Forex world for sometime and have a habit of downloading Forex PDF eBooks, then you will likely have download this Forex eBook before in the past, The 10 Keys to Successful Forex Trading PDF. The biggest problem for us these days is really not the limited access to information but instead we are in the information overload era.

We have too much information but not enough time to read all information we have gathered… resulting in most things becoming digital dust — chucked somewhere at the far end if our endless GB of hard disk space. Download this 10 Keys to Successful Forex Trading PDF and immediately read it.

You want to be a successful traders… learn and mimic their traits. We got this from 10 Keys to Successful Forex Trading. We love it some much and thought of sharing it here with you. Wherever you are now in your Financial Journey… as long as you remain determined and focus, everything and anything is possible. Believe it! The Habit Poem I am your constant companion. I am your greatest helper or heaviest burden. I will push you onward or drag you down to failure.

I am completely at your command. Half of the things you do you might as well turn over to me and I will do them — quickly and correctly. I am easily managed — you must be firm with me. Show me exactly how you want something done and after a few lessons, I will do it automatically. I am the servant of great people, and alas, of all failures as well.

Those who are great, I have made great. Those who are failures, I have made failures. I am not a machine though I work with the precision of a machine plus the intelligence of a person.

edu no longer supports Internet Explorer. To browse Academia. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Secrets to Successful Trading fxindicator. Dev Anand. Continue Reading Download Free PDF. How I Trade Profitably Every Single Month without Fail First of all, let me take some time to introduce myself to you.

I am Kelvin and I am a full time currency trader. I have a passion for trading and this drives me to create a forex blog that gathers a community of traders together. Due to constant request from my blog readers asking me to share my trading strategies with them, I took a total of 13 months to create a course that teaches you all the strategies that I have been using all these years without reserve.

Now that you have subscribed to my newsletter, you will be receiving forex tutorials from me every month as well as trading videos that I have specially created to help you in your trading. In this book, you will be taught the 3 secrets to successful trading. Do note that these 3 secrets are all based on my own experience and therefore will be useful for you in your trading. This is a reward for those of you who really took action as it shows your determination in learning this skill.

Most new traders tend to ignore the importance of support and resistance because they do not know that the wave like movement of the market is actually the creation of support and resistance.

When the price hits a major resistance for the first time, it will most probably moves down first due to the repulsion of that level. It will then attempt to break this resistance level again and once it manages to break through it, the old resistance level will now turns into a new support level. You will find that the price will always comes back to test that new support level before it moves further up.

Such action contributes to the formation of waves in your trading chart. Therefore as a trader, you must be able to identify where the major supports and resistances are. With these level identified, you will then be able to know where to enter a trade, where to place your stop loss and where to place your target profit.

In this section of the book, I will teach you a few ways to identify strong level of support and resistance. Fibonacci Indicator The Fibonacci indicator is one that is commonly used by institutional traders and therefore the level of support and resistance created by this indicator is more significant. The Fibonacci indicator consists of retracement and extension.

All you need to do is to drag the indicator from the top to the bottom of the wave and you will be able to select which retracement and extension level you want to show. From my trading experience, retracement level like the 0.

As for the extension, it depends on the retracement. If the price hits the 0. However if you are able to find level of multiple Fibonacci, that specific level will be where you are going to enter a trade. Pivot Points Besides the Fibonacci indicator, the Pivot point is another indicator that is used by institutional traders. Similar to the Fibonacci indicator, the support and resistance level created by the Pivot points serve as a strong level of support and resistance.

For the Pivot levels, you can plot the daily pivot, weekly pivot and monthly pivot on the same chart. Do note that the power of the monthly pivot is larger than the weekly pivot and the power of the weekly pivot is also larger than the daily pivot.

Swings Swings are V-shaped Swing Low and N-shaped Swing High patterns. When you see a swing high, the top level will then formed the resistance level. When you see a swing low, the bottom level will then formed the support level.

However not all swing highs and lows are of equal importance, those swings that have more depth are considered stronger level of support and resistance than those with lesser depth. Below are some pictures for your comparison. The above are 3 ways you can identify strong level of support and resistance. Therefore spend some time to practice them on your chart today to have a better understanding of their trading nature. Secret 2: Power of Indicators The next secret to successful trading lies in the indicators that you are using as well as how you use them.

Most traders do not know the nature of the indicators that they are using and therefore finds them useless to their trading.

My suggestion to you is to learn the various ways to use an indicator as well as learning how to fine tune them to suits your trading plan. Below are some of my favourite indicators and the way you can use them in your trading. So spend some time to go through them now. MACD Indicator Before I start to tell you the power of MACD, I must spend sometime to do a introduction on what is MACD and who invented it. MACD is a forex indicator that is developed by Gerald Appel who has written 12 books on investment strategies.

MACD is in fact one of the simplest and reliable forex indicators I have used so far. As it is actually analyzing and displaying chart for past data, it is often know as a lagging indicator. However there are times where you can use MACD as a leading indicator to help you predict the next movement of the price. What this means is 26 days and 12 days Exponential Moving Averages. The 26 EMA is a slower setting for MACD which will produce a slower indicator that is less prone to whipsaws.

As for the 12 EMA, it is usually a faster setting for MACD. In the MACD indicator, there will usually be a 9 days EMA that will represent the trigger line while the histogram represents the difference between MACD line and its trigger line. i Bullish Crossover: Bullish crossover usually indicates a upward movement in the market and the way you can identify a bullish crossover is through the two line in the indicator namely; MACD line and its trigger line.

Whenever MACD cut through its trigger line in the upward direction, it usually indicates an uptrend or an upward movement. ii Bearish Crossover: Bearish crossover usually indicates a downward movement of the price and the way you can identify a bearish crossover is when the MACD cut through its trigger line in the downward direction. iii MACD Divergence: This is the best signal any trader can get from MACD: Divergence.

First of all, let me explain to you what is MACD divergence all about. When we say that there is a divergence in MACD, we are referring to the scenario where MACD and the price are not in the same direction movement pattern. Example: When the highs of a currency pair is getting higher and higher, MACD highs are getting lower and lower.

From my experience, you will usually see a downside movement after a negative divergence is formed. When the lows of a currency pair is getting lower and lower, MACD lows are getting higher and higher. Whenever you see positive divergence, you will usually see a upside movement in price. You will have a more robust forex strategy if you are able to combine these two signals above to constitute your buy sell signals.

MACD is a good indicator when it comes to buy sell signal as it always allow the trader to validate a trend line break or a breakout in price. With this function, MACD can help the trader to identify fake outs in trading. ADX Indicator Riding the trend is one of the most profitable trading strategies you can have as it is a good way of producing high risk reward ratio trade and the best way to find out the status of the trend is to make use of the forex adx indicator.

So Why ADX Indicator? If you have been reading my blog, you will know that I have written an article to help you identify the trend of the market using various forex trend indicators like the moving averages.

The moving averages are still a good way to tell the trend but they are unable to give you a value for the trend and this is where the ADX indicator comes into play. What Is ADX Indicator? It is an indicator that is made up of a single line with value ranging from 0 to You may think that it looks like an oscillator but it is uni-directional. If you take a close look at the picture below, you will find that the adx will point up when you are in a good uptrend as well as a downtrend.

How to Use the ADX Indicator? I personally use it to tell whether the market is trending or ranging. As stated in the earlier part of this post, the ADX has a range value from 0 to When it is moving below the 25 level, it is telling you that the strength of the market is very weak. What usually happens at this time is that the market is in consolidation and will most probably be moving in a range. When the indicator moves above the 25 level, it is telling you that the trend is strengthening and the larger the value, the stronger will be the trend.

However to have a better understanding of the trend you are in, you need to combine the direction of the indicator together with its value.

Sign of a Strong Trend: You are in a strong uptrend or downtrend when the ADX indicator is pointing up and moving above the 25 level. Sign of a Weak Trend: You are not in a strong trend when the indicator is pointing down and moving below the 25 level. Other Uses of ADX Indicator 1 Divergence: Besides using the ADX indicator for telling the strength of the trend, you can also use the divergence of this indicator to warn you of possible retracement or reversal.

If you have entered a LONG trade and you see the ADX making lower highs while the price make higher highs, this is a good time to exit your trade as a retracement or a reversal is going to occur. The problem with most breakout traders is fake out which is the false movement of the market leading most inexperienced traders to enter a trade and then stopped them out by reversing the movement.

With the ADX indicator, you will now be able to check if a breakout is valid or not. When you see the price breaking out of a pattern or trend line, you can immediately check your indicator to see if it is pointing up and moving above the 25 level. A valid breakout will be formed when the ADX indicator is pointing up and moving above the 25 level and an invalid breakout will be the opposite. I hope that you find this indicator useful for your trade and eventually integrate it into your trading plan.

If you have other uses for the ADX, do share with us by commenting below. I hope that this blog will eventually become the place where traders share their knowledge and everyone can learn from one another.

Easy rules Unlike the stock market with tens of thousands of different shares, Forex works with 8 basic currencies, which are the center of most trades. That is to say, irrespective of which way the markets move, you will remain at the break-even point less some trading commissions. margin is the actual amount that you are Use Stop Loss orders! How do you make money in forex? Hopefully, making a profit and learning more along the way. Unfortunately, banks do the same thing, so an average forex broker could be better, but only marginally.

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