Train crash in Buenos Aires leaves 49 dead, hundreds injured
Train crash in Buenos Aires leaves 49 dead, hundreds injured
MarketWatch.com – MarketWatch Breaking News Bulletins
Forex: GBP/JPY finds support at 125.60 – Forexrazor
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Forex: GBP/JPY finds support at 125.60
Forexrazor High-Risk Warning Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, … |
USD Index To Resume Upward Trend, Japanese Yen Weakness To Accelerate
USD Index To Resume Upward Trend, Japanese Yen Weakness To Accelerate
Currencies News and Information on Yahoo! Finance
AUDUSD narrow range has sellers looking for momentum
The AUDUSD has been in a narrow trading range for the month February. The 279 pips is the narrowest since 257 pips in Feb 2011 and 254 is April 2010. Today, the price fell to new month lows and that low was extended in NY, after a rally into the London session. When the new low could not sustain, the choppy session continued for the pair.
Looking at the shorter term 5 minute chart below, the last move higher tested and held the 50% of the days range and the 200 bar MA. Staying below is good for the bears but trade activity seems to be balanced. So I would expect profit taking buyers near the lows at the 1.0603-09 levels with stops below.
Forex News and Commentary by FXDD » Forex Trading
3 Mistakes to Avoid when Plotting Fibonacci Tools on Forex Charts
Successful Forex trading using technical analysis hinges a lot on correct application of technical indicators, and the Fibonacci tools are not an exception. It is pretty easy to apply a tool like the Fibonacci tool retrospectively when the price action is all done and nicely fits, but the real challenge is how to apply the Fibonacci tools when trying to determine where a retracement action is going to end for a renewed trend move to resume. In this piece, we will try to identify common mistakes that traders make when using the Fibonacci tools and how to avoid them.
1. Plotting Fibonacci retracements on a short time frame.
This is perhaps the greatest mistake made by traders when using Fibonacci tools such as the Fibo retracement tool. Why is this so? In Forex, the market activity in a short time frame such as the 15- minutes or 1-hour time frame is too short to effectively determine the trend of a currency. What the trader may see as a strong downtrend on a 1-hour chart or a 4-hour chart may actually be a retracement on a daily chart. Trying to plot a Fibonacci retracement tool on the shorter time frame will only end in disaster. The trend pattern of currencies on a longer time frame such as the daily chart is usually a better determinant of the trend. The best thing to do here is to use the longer time frame to determine the trend, apply the tool and then switch to the shorter time frame to make your entry determination.
2.Over-reliance on the Fibonacci tools
In Forex, it is a bad practice to use only one indicator to carry out your technical analysis. Confirmation of the entry is best done using two or three indicators that supplement each other, and the Fibonacci tools are not an exception.
To give an example, let us assume a currency pair is undergoing a downward retracement following a particularly strong uptrend. Where do you possibly think the retracement will halt, especially given the fact that there are five possible retracement levels (23.8%, 38.2%, 50%, 61.8%, 100%)? This is where you have to turn to other indicators such as the Stochastics, MACD or RSI for help. For example, if I get a Stochastics cross at an oversold level (i.e. Stochs crossing upwards at
Always confirm entries with more than one indicator.
3. Misapplication of the Fibonacci Tool
Many times, traders simply misapply it. What does misapplication mean? Fibo tools are best plotted from the swing high to the swing low. If the trader does not use the highest or lowest points on the chart for tracing the tool, an inaccuracy has set in and this is a clear example of misapplication. Another example is tracing the tool from a candle shadow to a candle body or vice versa. A trader must be consistent. For the best results, always trace from the tip of the upper shadow (the wick) of the candle making the high, to the tip of the lower shadow of the candle making the swing low.
These are the common mistakes made by traders when using the Fibonacci tools. Avoid these mistakes to get the best results possible from your Fibonacci tools.
Article was written by Alexander Collins who started his own Forex blog recently. Need Fibonacci, Camarilla, Pivot point calculators? Download all these Forex trading tools at PipBurner.
3 Mistakes to Avoid when Plotting Fibonacci Tools on Forex Charts
Successful Forex trading using technical analysis hinges a lot on correct application of technical indicators, and the Fibonacci tools are not an exception. It is pretty easy to apply a tool like the Fibonacci tool retrospectively when the price action is all done and nicely fits, but the real challenge is how to apply the Fibonacci tools when trying to determine where a retracement action is going to end for a renewed trend move to resume. In this piece, we will try to identify common mistakes that traders make when using the Fibonacci tools and how to avoid them.
1. Plotting Fibonacci retracements on a short time frame.
This is perhaps the greatest mistake made by traders when using Fibonacci tools such as the Fibo retracement tool. Why is this so? In Forex, the market activity in a short time frame such as the 15- minutes or 1-hour time frame is too short to effectively determine the trend of a currency. What the trader may see as a strong downtrend on a 1-hour chart or a 4-hour chart may actually be a retracement on a daily chart. Trying to plot a Fibonacci retracement tool on the shorter time frame will only end in disaster. The trend pattern of currencies on a longer time frame such as the daily chart is usually a better determinant of the trend. The best thing to do here is to use the longer time frame to determine the trend, apply the tool and then switch to the shorter time frame to make your entry determination.
2.Over-reliance on the Fibonacci tools
In Forex, it is a bad practice to use only one indicator to carry out your technical analysis. Confirmation of the entry is best done using two or three indicators that supplement each other, and the Fibonacci tools are not an exception.
To give an example, let us assume a currency pair is undergoing a downward retracement following a particularly strong uptrend. Where do you possibly think the retracement will halt, especially given the fact that there are five possible retracement levels (23.8%, 38.2%, 50%, 61.8%, 100%)? This is where you have to turn to other indicators such as the Stochastics, MACD or RSI for help. For example, if I get a Stochastics cross at an oversold level (i.e. Stochs crossing upwards at
Always confirm entries with more than one indicator.
3. Misapplication of the Fibonacci Tool
Many times, traders simply misapply it. What does misapplication mean? Fibo tools are best plotted from the swing high to the swing low. If the trader does not use the highest or lowest points on the chart for tracing the tool, an inaccuracy has set in and this is a clear example of misapplication. Another example is tracing the tool from a candle shadow to a candle body or vice versa. A trader must be consistent. For the best results, always trace from the tip of the upper shadow (the wick) of the candle making the high, to the tip of the lower shadow of the candle making the swing low.
These are the common mistakes made by traders when using the Fibonacci tools. Avoid these mistakes to get the best results possible from your Fibonacci tools.
Article was written by Alexander Collins who started his own Forex blog recently. Need Fibonacci, Camarilla, Pivot point calculators? Download all these Forex trading tools at PipBurner.
Can it be? Commodity Dollars and JPY Weak on the Same Day?
Today we have the odd spectacle of the weak commodity currencies and a weak Japanese yen a spectacle that is unlikely to continue in the near term. Which currencies to win the race to the bottom?
The market’s satisfaction with the Greek bailout deal remained in evidence as the Euro’s
Upgrades & Downgrades: YHOO, BMRN, HGSI, DNDN, and TSLA
Analysts are weighing in today on Internet portal Yahoo Inc. (YHOO – 14.48), biotech stocks BioMarin Pharmaceutical Inc…(Read More)
SchaeffersResearch.com Trading Floor Blog
Courchevel 1850 thrives in a bling bubble: Catching up with the 1% at 1,850-ish meters
Courchevel 1850 thrives in a bling bubble: Catching up with the 1% at 1,850-ish meters
MarketWatch.com – MarketWatch Breaking News Bulletins
Why Facebook Must Stay Quiet
Like other companies that file to sell publicly listed stock, Facebook must limit its statements to comply with federal rules
