Forex Stock Market » Graphs

Correlation in Forex Graphs

admin — Tue, 04 May 2010 12:03:54 +0000

Looking on the internet at comments about forex trading, one wonders how people expect to make money without having a basic grasp of the principles involved in trading. People tend to rush in, with promises of easy money, but they then discover that it is a lot harder than it looks. This article seeks to identify a fundamental principle that leads to creating a successful trading model, it is founded on the idea of correlation.

Correlation exists where there is a mutual relationship of interdependence between two entities. Why is it that people feel so sure that they can earn money in forex? Surely the reason is that they immediately see that there are patterns, that is, correlation in the graph that can be exploited to make money. For example, consider AUDUSD (15 mins, 19th March) in the graph below:

(To view the image visit this URL)

http://forexprofitingtips.net/wp-content/uploads/2008/04/forex_charts.png

We can see that there is correlation between the graph and the yellow line and is is tempting to think that, as a consequence this can be easily traded. The problem is that there are too many unknowns. How could anyone foresee that the price would bounce off of this line? How can we know how high the price will bounce off the line? How can we tell when the price will stop bouncing?

I would suggest that the reason that the majority lose money in currency trading is that although there is correlation in the graphs, yet people fail to realize that the nature of the correlation is very complicated. There is not only a relationship of interdependence between the price and the line on the graph above. Below is the graph with the inclusion of the stochastic (5, 3, 3) oscillator:

(To view the image visit this URL)

http://forexprofitingtips.net/wp-content/uploads/2008/04/forex_charts_trading.png

We can see that there is correlation between these two graphs. Although the price doesn’t move directly proportional to the stochastic graph, yet the former generally turns at similar times to the latter. The result is that we have another tool to contribute to our understanding of how the price moves.

I would suggest that this is the nature of currency trading; it involves the accumulation of indicators that correlate with the price and as a consequence contribute to creating a successful trading method.

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My experience with Forex Apocalypse Expert Advisor

admin — Thu, 18 Mar 2010 04:32:06 +0000

By Kathy Alonso

The sales page sounds too good to be true. Having no Forex Trading experience Forex Trading it piqued my interest and after finding no negative reviews anywhere I decided to try this Forex EA. The idea that it was a plug and play EA which could be set up and left to do what it does without being tweaked was very appealing to me. Reviews said that it made few transactions but was very reliable. It was said to avoid risky short term moves and go for more long term earnings. After I purchased the software I was taken to metatrader.com which as stated on the page was recommended for use with this EA. The sign up process was lengthy and included giving my bank information. The software was only available for windows and so I had to install it on a friend’s computer. I funded my account through Paypal and installed the Apocalypse EA. I had trouble getting the EA to start working and contacted MetaTrader support about the issue. Affter telling me to reinstall their software they said that they could not help me because they do not provide technical support for EA’s. They suggested I contact the Forex Apocalypse EA support.

After scouring the website for a support link, phone number, or email I decided to simply respond to the email that i had been sent when i first purchased Forex Apocalypse. I sent my question about setting up the EA through this email. They responded within 24 hours, which was very impressive but by then I had figured out what the problem was. The EA did not have permission to do live trading. I changed the settings and was ready to go.

I left it on the default settings which were the following: magic number : 20202111 eachtickmode : true Lots: .5 stop loss: 250 takeprofit: 500 trailing stop;: 65 slippage: 3

I had it working on 30 minute graphs and all major currencies. It took a few days to make the first purchase and that same day I lost over $250. I was concerned that it may not have been running 24/7 so I subscribed to ForexHoster, which allowed the EA to be running 24/7 without any disruptions or delays. This costs about $60 a month. I also read through the Forex Apocalypse manual again and found that it said that the graphs should be set at 4 hours and 1 hour for best accuracy. I made these changes and left the EA running again. I was hopeful when a few days later the EA made another purchase and it looked like this one would make a profit. Unfortunately within a few hours I ended up losing another (over)$250. Very much dismayed, I wrote to the Forex Apocalypse support, telling them of my problems and asking for any help or suggestions. Once again I received a timely response. They suggested that I use shorter time frames and that “EUR/USD is the recommended currency pair as it produces the most stable signals”. Once again the changes were made according to the recommendations given. Unfortunately the continuous losses continued and three weeks from when i first purchased Forex Apocalypse, I had lost over 800 dollars. Needless to say this was a hard learned lesson. I will be attempting to get a refund and I’ll also be canceling my ForexHoster account.

And needless to say I won’t be dabbling in Forex Trading again or falling for sales pages that seem too good to be true.

But remember, not everything on the internet is a scam and it is possible to make a living from home. I’ve had great success with certain programs. To find out more visit www.ProsperLane.com.

About the Author:

For more information on how to make money online visit ProsperLane.com and sign up for a free associate membership and watch live daily webcasts on all their products and services.

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Learn Forex: Breakthrough Discovery In Forex Trading

admin — Sat, 27 Feb 2010 14:44:08 +0000

If you have been trading long enough, I believe you will be very familiar with the technical indicators, ie Bollingerband, MACD, Williams, Commodity Channel, Relative Strength Index, Parabolic etc.

But have you been making money using those indicators? Sometimes I guess. Have you wondered why sometimes it works and why sometimes it does not work?

I had heard of extreme comments from other traders, ie “indicators do not work”, “don’t waste your time using indicators”, etc. Possibly those traders have been losing a lot of money using indicators in their trading and possibly they have learned to trade forex the wrong way.

In the past 1-2 years I have heard of trading courses started to teach trading without using any indicators. So this means even the trading educators who have been trading for years do not believe in indicators.

Since indicators have been an important tool in trading, in Tactical Trading Academy, we have done extensive research into this area. Our conclusion is that different products (currency pairs) have different behaviours. So you must use specific indicators for specific products. From this research we have discovered BL TS System. All of our student learn to trade forex using BL TS System.

In our website under “Our Trading Secret“, we mentioned that we have evidences to show that using fixed indicator will not be profitable strategy in the medium term. You have to choose the correct indicator for the correct currency pair.

Let us use USDJPY as an example. The graph below will show you what is your equity value if you have been using those indicators to trade USDJPY for the past 6 months.

The graphs show that if you have been using MACD and Parabolic to trade, you will do well. We perform our quantitative test and send out the results to our subscribers on a weekly basis. So our subscribers will know specifically which indicators to use for which currency pairs.

We believe this research discovery is a breakthrough in the trading industry and few traders are aware of this.

If you are interested to Learn Forex from us, send an email to us at metal.commodity@tradingeducationprogram.org.

Upon subscription, you will receive the followings:
1. Weekly updates on the proven indicators
2. One-to-one coaching on trading
3. Live emails reminders when trading opportunities occur
4. Ebook on our trading strategy

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Breakthrough Discovery In Forex Trading

admin — Wed, 20 Jan 2010 14:28:03 +0000

If you have been trading long enough, I believe you will be very familiar with the technical indicators, ie Bollingerband, MACD, Williams, Commodity Channel, Relative Strength Index, Parabolic etc.

But have you been making money using those indicators? Sometimes I guess. Have you wondered why sometimes it works and why sometimes it does not work?

Let us use AUDUSD as an example. The graph below will show you what is your equity value if you have been using those indicators to trade AUDUSD for the past 6 months.

The graphs show that if you have been using MACD and Bollingerband to trade, you will do well. We perform our quantitative test and send out the results to our subscribers on a weekly basis. So our subscribers will know specifically which indicators to use for which currency pairs.

As a matter of fact, MACD and Bollingerband had signal buy on Friday, we had entered a buy trade on AUDUSD at 0.9294, see here. Currently this trade is sitting on 40 pips profit.

We believe this research discovery is a breakthrough in the trading industry and few traders are aware of this.

If you are interested to Learn Forex from us, send an email to us at metal.commodity@tradingeducationprogram.org.

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trading equities using Macd (1)