Forex Stock Market

According to my quantitative test, MACD is a good indicator to trade EURJPY. Currently MACD has signal sell. So this is a possibility that EURJPY is likely to fall lower.
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Double top formed at 0.9465
Both MACD and Parabolic have signal SELL for EURGBP

Shorted EURGBP at 0.9407
Stop level at 0.9513
Target level at 0.9313

Trades are executed based on BL TS system. If you would like to know more about my system, send an email to me at metal.commodity@gmail.com. Read the rest of this entry »

Forex traders make decision using two kind of forex analysis: technical analysis and fundamental analysis. Technical analysis uses charts, trend lines, and some indicators like Moving Average, Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Band, Fibonacci, Pivot point, candlestick patterns and another mathematical analysis to learn market probability. While fundamental analysis is predicts forex price movement with translating some information about economic situation, including news’s, reports and policies which published by government. It contains also rumors.
Which is better?
Let’s return to the basics of forex trading. What causes the price movements?
The answer is: Expectations and speculation from the market! News is not the cause of price movements. On the other hand, the indicator / mathematical calculations also are not driving the price.

In the technical analysis, when trading based on a chart, as an example of the trend line and the MACD line has been indicated that the trend line broken and lines on the MACD has crossed over. And then when prices rise, this does not mean that the pattern of the indicators that lead to price movements. But it is because many traders based on these lines. At that time, they do the same (buy/ long) in theories of the indicators are concerned. This is a cause prices actually raise from the corresponding input indicators.
Essentially, the indicator is only as a follower and not as a cause of price movements.
On fundamental analysis, the drastic price movement occurs when there are events that are not presumed. Events such as these can increase or decrease in interest rates from the central bank, until the political or war. Examples are the 9/11. When the 9/11 happened, the rate of USD weakened because each person will estimate the effect of the U.S., so likely to weaken USD. This incident caused many market participants to sell USD. After that, USD rate is down dramatically.

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