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Professional Forex Trader





Welcome in the professional Forex trader section, having successfully completed the previous stage and opened a trading account, you can professionalize in assets and arts of strategies of experts in technical analysis, as you will learn in this professional section the use of the strategies and how to read them on the chart, and depending on them in your trading.



Strategy of the movement of foreign currencies and the triangular shapes:

Foreign exchange market operates 24 hours, 5 days a week and this allows the presence of many shapes in the chart more than any other market, and today we will talk about the most important of them.

Of course, the shapes are from the technical analysis of currencies and the movement of pairs, we will talk about the triangles and flag shape and the dishes shape, and also about tops and the bottoms and a lot of other shapes.



Triangles:



1) Right-angled triangle





It is one of the most frequent forms in technical analysis, and the goal of it is to predict a close event.

In this shape we see that the pair is going down, which forms a base and the price always break through this triangle in either the tendon or the 45" angle. And there are two shapes of the pair:



Bullish / bearish right-angled triangle



We see in the diagram above that price took low tops one after another and also formed a base, after the break though of the base or the tendon is our entry into deals ... (downward right-angled triangle).



Here, too, we also see break through of the triangle at the base, as it is going upward so it forms a base after another...



2) Oblique triangle:





This shape is also very common and there are a support line and a resistance line in it, and they meet at one point, the closer the price to the more the angle the more it is expected to break the resistance or support and then of course is the entry of transactions.



Flags and wedges:



This type of shapes is ​​formed in either upward or downward trends, and here too these shapes are formed from support and resistance lines and after forming them, the shape should indicate its name when it appears on the chart...



Wedges are also called the triangle flag, and we see from the above chart that they consist of the following shapes after a decline or a rise, also notice that there should always be support or resistance lines to complete these forms.



Shapes of tops and bottoms repetition:



1) Bottoms repetition:

This shape of course comes after or with the downward trend, and it comes to test the lower levels after an initial test, and here it is always preferable to buy.



In the image above notice the black boxes and see that there is a repetition of the same base at the same price, and after repeated twice it is very likely be repeated again (third time). Once again in this shape buying is after the form of two repeated bottoms.



2) Tops repetition:

This shape comes after upward trend and appears as the market tests the tops again, and this shape appears after the first top and another increase in price to the same top, to form a second top, that's where its name comes from.



* You must notice the repetition of the top or the bottom; also note the repetition of the previous trend.

* The two bottoms or tops can come in three tops or three bottoms.

* Repeated bottoms are buying and repeated tops are selling.

* It is not necessary for this shape to be identical to the image 100%, as it is subject to little difference in prices.



The round pan shape:



It is a collection of bottoms that are in a downward trend and immediately after them is an upward trend (rising bottoms) and it a reference to take buying decisions in the bottoms and the first goal is the handle.



The handle consists at the right side which forms the round pan shape



The head and shoulders shape:

This shape is one of the most frequent shapes in the market and it comes either in a natural state or on the same shape but upside down, these shapes are very reliable and is usually formed ​​at the end of an upward trend and turns it into a bearish or vice versa.



For these shapes to complete there must be the following components:

1) The head.

2) The right shoulder.

3) The left shoulder.

4) The bottom line.

In the diagram below we clearly see the shape and extent of its reliability.



After shoulder (1) and the head are formed, it is highly likely that at the second shoulder line or price is a sale and of course with the lower bottom.



* It is possible for this shape to appear in different ways, such as inverted or oblique, which means the base will be oblique, note that in this form trading is after shoulder (1) and the head.



Fibonacci here Strategy



Moving average strategy

The use of the moving index is considered as one of the most commonly used indexes in technical analysis. And there are a lot of books about it, in some books the section that explains how to use it is in more than two hundred pages. All books agree that it is not possible to rely on the moving only, as it gives many false signs, not to mention the fact that they say it is not good to if the market is stable and is used only during a trend. And even to predict a trend does not fit in it. The moving is not useful for the daily trader or even the weekly one, it is only able suitable for the long term trader.





How to draw the moving or moving average:

1 - Simple moving average SMA

It is the average price (closing often) for a certain number of candles. And comes by using the following equation

SMA = SUM (prices) / n

Where n is the number of candles. And SUM is the total price (usually closing) for each candle

When increasing n, the average is suitable for the long-term operations, and signs can be extracted from it later, in addition to another defect which is that its influence by the current movement of the currency is very weak (This latter defect is avoided by EMA)



2 - Exponential moving average EMA

Here we avoid the current by taking its share as any other price, more space is also giving for the current price so the relationship of the index with the currency is closer and influenced by the currency faster. Not to mention the possibility of increasing the period used in the index without any problem of those mentioned in the simple moving average.

For example, when calculating the SMA for ten candles, the last share price (current) is 10% of the SMA, while in case of EMA, for a period of ten candles the current price share is 18.18% of EMA, as will become clear in the following equations.





So the EMA index is always closer to the currency from SMA. Due to the calculation of the value of the EMA, old prices still have an impact on its value, this effect is gets lower, but will not disappear. That is why EMA is better in the case of fast daily trading, and SMA is better in the case of the long-term trading. The moving index is often used in n period that is more than 20 and even up to 100. And as this index follows the trend, it isn't usable in cases of the rotational movement of the currency and the fixed price. And if used to determine resistance or support levels of a trend, it is possible to adjust the shift box in MetaTrader program to match the tops or bottoms of the trend.



3 - Smoothed Moving Average

This index is deduced from the following equations, it is the average of SMA so it has slower movement of SMA if the used duration is the same

The equation is SMMA = SUM SMA / N

Then:

SMMA = SMA (PREVIOUS) x (N-1) CLOSE / N

This means we took the average of SMA index so it is smoother. The advantages and disadvantages do not differ a lot from SMA, only that the number of signs derived from it is few and also fewer errors.



4 - Linear Weighted Moving Average

This average is different from the rest because it gives great value for the price that is resulted in a high volume of trading. So the price impact on WMA varies based on the volume

Equations:

MA = Sum (Price x Volume) / Sum Volume

Sum (price x Volume) is extracted from the price ×the trading size

Sum Volume is the total volume of trading in the relevant period

The advantage of this index is that it gives the value of the trading volume, so it hides weak trends which happen in simple trading periods. In the case of depending on trading volume, it is very important as I consider it an attractive index (the currency index is attracted to it), but I do not see any interest in the volume of trading here. This index will be explained with the indexes of trading volume.



The uses of moving average:

1 – Knowing the trend of the currency:

It is possible to know the trend of the currency by:

A - The abstract view the moving index.

B - If the moving lower than the currency index, the trend is upward, and if it's higher, the trend is downward.

C - If the lower moving is below the larger moving, the trend is upward, and if the moving with smaller n value is below the moving with bigger n value, the trend is downward. From this any analysts concluded the importance of using two moving indexes, and measure the difference between them to know the trend. As in the following graphs



2 - used as support and resistance:

As noted before, this index is used only in cases of trend. It gives good results for the support in the case of the rising trend and good results for the resistance in the case of the declining trend as seen in the attachments (the blue index SMA10 is resistance and support for the trend). It also has another use, which is to make sure the strong horizontal resistance line turns into a strong support horizontal and vice versa after the index breaks through this line.

In the end it is not recommended at all to use this index alone. The trader also has to balance between the advantages and disadvantages before using it. Professional trader changes n value depending on trading conditions and on the type of currency.





RSI – Index strategy:

RSI Index is a strong reliable index; it is characterized by the diversity of its usage methods, and the multiplicity of benefits from it.

It is a dash index that shows the market movement of buying and selling according to the value of the index from the halfway line, it is also a saturation index that shows the areas of buying and selling opportunities, and accurately explain the repercussions from these areas, it can also be used in the analysis of technical shapes such as triangles, head and shoulders, and shows support and resistance levels in a more clear way than that appears on the pricing chart, in addition to that it determines places of breaking through or what is known as Failure swings and that is when the value of the index exceed a top or a bottom, and finally it is utilized to determine the divergences places which characterized by a great force and means an impending reflection of the trend.

RSI have been proposed for the first time by Wilder in an article published in Commodities magazine in 1978, the index is still proving its effectiveness, and proving that it deserves its reputation and great popularity.





How to use this index:

As I mentioned, the Relative Strength Index RSI is the best among the indexes as it is based on comparison of periods of price change to the top with periods of change to the bottom, and it is used as an evidence that the price had reached the maximum range in the bullish or bearish trends, and therefore it gives the analyst a very strong opportunity to enter into market in those areas and get the highest amount of profit when entering at those levels. It also shows what the chart can not show in some cases of such as patterns or price designs. It and is divided into 100 points and the 30 and 70 lines are an evidence of the recovery of the trend when any of them is broken. Note that there are other area above the 70 line and where there are often more powerful increases than its predecessor and vice versa with the 30 region where under it there's more powerful declines than its predecessor. Add to that the issue of price easing where the price has achieved a new high, but on the RSI could not overcome the previous high; this means that the price reached the saturation stage of buying. And vice versa, as the price may deceive many traders when they see the price is heading for a new top that is higher than the previous one, but by using this index, they can be aware that the rise to the new high is only the beginning of the collapse of the price.



Bollinger Bands strategy:

It was developed by john Bollinger; it is an indispensable index as it allows the trader to compare the sharp and sudden changes and relative price levels over a period of time, measuring the amount of fluctuation in the stock price.

Simplified introduction:

This index was discovered and developed by John Bollinger. It is simply a 3 lines or bands surrounding the chart of the share.

1. In the middle there is the arithmetic average of the closing price or any other value specific with simple moving average SMA for a certain period.

2. The upper line or the upper band is the arithmetic average of the share price for a certain period (2 * a certain value) or (SMA 2 standard deviations).

3. The bottom line or the lower band is the arithmetic average of the share price for a certain period - (2 * a certain value, or (SMA - 2 standard deviations).

In general, this index is used to compare the change or fluctuation in the level of the share price in a certain period of time, as well as to isolate or determine the extent or limits of the fluctuation of the price for a particular stock based on the stock is usually bought and sold or traded in an expected or predictable price range on both sides of the simple moving average (SMA), that is an example of Bollinger Bands for Exxon share.

In this simplified example notice the use of arithmetic average of the exponent e to a period of 20 days and they are spaced two deviations apart.

Also notice from this simplified example that the band increased in the month of April when price fluctuation increased became narrower, and the band decreased when prices entered a steady and strengthening stage at the end of the year.

Generally the more the width of the band decreased, and the narrower it gets, it increases the chance of a sharp change in price or sharp breakout in prices. And the higher the price is in a narrow band region the more likelihood of a strong change in the price.

Note that: trial and error is one way to discover which length is suitable for the moving average, as if prices looked like breaking through the two external bands, it is likely to need a longer moving average, but if the prices rarely touch them, you probably need a shorter period of time.

But in general, Bollinger suggests that the duration of the average is 10 days for the short term and 20 day for the average term and 50 days for the long term.



Benefit from this index:



First case: the share moves up and down inside the Bollinger bands and usually the price lasts up to the targeted point thereby determining the buying and selling, when touching the lower Bollinger line and then reverse the direction and vice versa, when it comes into contact with the higher Bollinger line and breaks its direction while heading down, it is a sign for selling, to clarify this:



- Double bottoms: a buy sign, it is when the index breaks through on it's way down, or when it touches the lower band (closing above the band) and remains above the lower band after the formation of a row of bottoms, whether the next bottom is higher or lower than the others, the important thing is that the second drop is above the lower band so the prices are stable above average.



- Double tops: on the contrary, this is a sell sign, and it is when the first top touches or breaks through the upper band, while the next top fails in breaking through it, so it gets away from the upper band whether it was above or below the first top, so the prices drop below average.



Second case:

A sharp change in the share price usually after the Bollinger bands get narrower (less fluctuation) and in this case it is either down or up, and it is usually upward if the bands got narrower after a decline and this reflects a collection situation., and on the contrary, downward, if it happened after an increase and this reflects a discharge situation.

This is not a fixed rule and it is preferred to use other indexes to confirm it.



Third case:



Divergence in Bollinger bands, which means each band (the lower and the upper), takes a different direction than the other, but it should be noted that if the divergence period got too long, and the price is related to one of them, we should be careful because there's too much inflation.



The divergences are two types:



1 - A positive divergences:

When the two bands diverge and the price is following the upper band

2 - A negative divergences:

When the two bands diverge and the price is following the lower band

Note:

The index does not give any accurate buy or sell signs and does not set absolute goals, but it says if the price is relatively cheap or not and determines the potential fluctuation for shares between the upper and lower bands passing through the average



MACD Strategy analysis:

It is a development of Moving, from the family of momentum indexes.

The MACD is simply, convergence and divergence between the 2 of the moving, Moving Average Convergence Divergence

It is used to predict the direction and whether the expectation is an increase or a decline.

The time frames used in MACD are: 12,26,9.

And these numbers translate as follows:

12 represent the 12 bars prior to the fast moving

26 represent the 26 bars prior to the slow moving, the 12 and 26 form MACD lines 12 and 26.

9 represent the 9 previous bars and explain the difference between the 2 moving components of the MACD, which is shown in the vertical lines called histogram as shown in red and green lines



• MACD lines consist of:

The MACD line (of 12 and 26 days) is red (the color depends on the program of your chart).

The 12 is moving for the short term, and the 26 is moving for the long-term, merging them together makes the MACD line 12 and 26, a line of slow movement.

The moving line 9 days has a color blue (the color depends on the program of your chart), and it is a fast-moving line.

• There is a dotted horizontal line when the MACD and the moving are in one level.

• The zero line tells us whether we are trading above the trend or below it, and represents the zero line.

• MACD cases in the market.

If MACD 12 and 26 (colored red) breaks through the moving 9 (blue) a balance occurs.

If the fast blue line breaks through the slow red line from the top to the bottom, it is a selling sign.

If the fast blue line breaks through the slow red line from the bottom to the top, it is a buying sign.

• MACD bars (histogram bars)

The bars establish the link between the MACD slow line (12 and 26) and the moving fast line 9.

If the slow MACD moving and the fast moving are separated (Divergence), the MACD bars will grow.

If the slow MACD moving and the fast moving are close (Convergence), the MACD bars will get smaller.

If the MACD bars are above the budget line, it means that the MACD 12 and 26 is trading above the moving 9

If the MACD bars are below the budget line, it means that the MACD 12 and 26 is trading below the moving 9

• MACD transmission:

Since there are two types of the moving in the (speed), it is natural that the fast moving will give information about the price movement faster than the other.

If a new direction happens here, the fast line will shout at us with its hands and says: hey I'm here; I'll break through the slow line now.

This case we call it (transition) and the fast line will begin going away from the slow line, indicating a new direction



There are 3 main methods to trade using the MACD index

1 - Trading in the method of the emergence of the first bar of the MACD above or below the zero line.

2 - Trading in the method of the convergence and divergence.

3 - Trading in a method of the breaking of the MACD through the zero line.





(1) The emergence of the first MACD bar

Buying sign:

If the first bar (green) appeared above the zero line, it is the beginning of a buying sign.

Selling ​​sign:

If the first bar (red) appeared below the zero line, it is the beginning of a selling sign.



(2) Method of convergence and divergence

The second method of trading is the method of convergence and divergence.

Convergence: means that two separated objects are heading towards a convergence point.

Divergence: means that two separated objects are moving away from the convergence point.



Buying sign:

We look for a decline in price levels on the price chart and the rise of the MACD bars to the top which is below the zero line, this is a sign for the (buying) decisions or at least a warning to the trader of the possibility of a reversal.

Using this method is a good tool to see the trend while it is slowly depleted its energy.



Sell ​​sign:

That same applies when we look for selling signs, but we rather not look for the convergence of the lines, but for the divergence from the price chart of the MACD.

We will look for a price on the chart which makes higher and higher levels, but the chart MACD bars above the zero line will begin to decline and make lower bars.



These signs are only a part of the equation when looking for buying or selling.

If the trader is looking to use only one index, he will become restricted out for a considerable time, but on the other hand I think that the use of many of the indexes is a fatal error, as using a single index.

It is better to balance between indexes that seem most comfortable for you to use.



 (3) The MACD breakthrough zero line

Buying sign:

The moving 9 breakthrough MACD line 12 and 26 to the top

Then the MACD breakthrough the zero line upward.

Selling ​​sign:

MACD line will make a clear break through the MACD bars above the zero line as a (selling) sign

This method finds the lowest amount of buying and selling signs, but also reduces the problem of falling into wrong signs. This is the slowest way to find a sign, but it is good for the long term trader.

Of course, it will create wrong signs, as indexes do, so I mentioned an advice before, which is to have a group of indexes that confirms when to enter and exit the market.

Time frame: Select the time frame that suits you best and try the index and learn on your own. These are some of the most important time frames

12, 26, 9

8, 17, 9

12, 25, 9



Stochastic Oscillator analysis strategy

I will explain to you Stochastic Oscillator Index, it is a moving index that is placed to measure saturation situation in selling or buying.

Note Stochastic Oscillator Index in the following image:



The point key in the lesson is the entry and exit sign in the stock, the sign is truer if the red line cut black line upward, and when it's at the twenty region it is recommended to daily monitor the index because it may reverse at any moment and these are examples in charts.



Commodity Channel Index CCI strategy

It is one of the oscillating indexes, it also distinguishes between overbuying and overselling situations in the market, it is measured by a digital scale that starts from-100 to 100 or from -200 to 200 in some charts programs.



It is designed to determine the beginning and the end of the commodities in the market through a cycle where the current price is compared to prices 20 days before



Method 1 for trading by using CCI

Selling ​​sign:

If the CCI line broke the 100 level upward (we got to the stage of buying), there is (potential selling sign) when the CCI at or above the level of 100

Buying sign:

If the CCI line broke the 100 level downward (reached an overselling case), there is (potential buying sign) when the CCI at or below the level of -100



Method 2 of Trading by using CCI

The 100 and -100 lines are considered as resistance or support according to the trend, and any breaking through is either a selling or buying sign, this is the best method to trade by using CCI because it's very easy.





Dear trader now you have finished the education section, and we covered everything that is related to technical trading, here are the ten commandments of trading, I advice you to read carefully, as they will prevent you from making mistakes, which some traders fall into:

The ten commandments of trading

1 - Read the long periods

Long periods starting from the weekly and monthly charts and can go as long as several years, the analysis of longer periods in the charts provide the reader a better and deeper look at the market, when a trend starts to appear in the long periods charts (weekly / monthly / several years) look in the shorter charts (daily / intraday) to determine the entry points, the analysis of the short periods (daily chart or smaller) deceive the reader in many cases



2 - Know the trend, and then follow it

Choose who you are (long-term investor or daily trader) and then select the chart that is right for you, if you're an average trader use daily and weekly charts, if you're short-term trader use the daily and intraday charts, but in all cases do not go against the long-term trend, locate the long term trend in the weekly and monthly charts and then select the timing of entry in the chart that's right for you (daily or intraday depending on how you like to trade)



3 – Locate points of support and resistance

Support and resistance points are the points that the price reverses at them, the best time to buy is close to the support and the best time to sell is close to the resistance, after breaking through support or resistance the line shifts to the contrary



4 - Determine the extent of the rebound

By using Fibonacci fluctuations or locating the previous upward wave, the rebound is always half of the previous wave, at maximum two thirds of the wave and at minimum one third of the previous wave.



5 - Draw the trend lines

Trend lines are the line where the price falls back when reaching it to complete the trend

In the bullish trend draw at the lowest two bottoms from the trend and vice versa, in the downward trend draw a straight line from the highest two tops in the trend, the right lines are always where the rebound happens at least three times and the more it happens the more the line is important (when breaking through the line it gives a sign that the trend changed)



6 - Averages

Make sure that the trend has changed or continuing in the most commonly used lines which are 9 with 4 or 9 with 18 or 5 with 20 or when the price cuts across the 40, averages don't give you signs in advance, they always give you the signs late

7 - Learn about reflections

By oscillators as when averages give you confirmation that the trend changed, oscillating indexes give you the periods of saturated buying and selling near the reflection

The most common indexes are RSI and Stochastic indexes, using them is better in fluctuated market conditions or the range markets, and the weekly signs are a filter for the daily signs, and the daily signs are a filter for the intraday signs.



8 - Learn the warning signs

MACD is a moving average divergent convergent index, it is developed by Gerald Appel, and it combines the averages and its junctions with oscillators, and selling signs appear when the fast line cuts across the slow line, and all the lines are below zero, while buying signs appear when the fast line cuts across the slow line, and all the lines are above zero, and the weekly signs comes before daily signs.

The histogram defines the differences between fast and slow lines



9 - Trend or no trend

The ADX index is an index of the trend measure, whether the market is in trend condition or fluctuation condition.

The rise of the ADX line means that the market is in clear trend and it is preferably to use averages, while when the ADX line is heading downward, the market is in fluctuations, and it is preferably to use oscillators.



10 - Learn the confirmation signs

Valium and Open Interest are two necessary indexes to determine the confirmation of the above in the future of the market, as when they rise up, the indexes are confirmed and the continuation of the trend is also confirmed, but if they're declining, this means the trend is almost at its end and will soon turn.

The trend should be confirmed by trading volume and an increasing and high Open Interest.



11 - Technical analysis is a skill that is developed by learning, studying and practicing, always stay as a student for technical analysis and learn more and more



Forex Trading

Please send to info@TejaraForex.com to inquire and comment.

-alic�!et�  n:ltr;unicode-bidi:embed'>It means the percentage of the amount of the volume of purchase or sale which is used in any transaction to deposit the required security margin.


For example, the brokerage company will help you buy a currency pair with Lot size of 10000$ and ask you to deposit 100$ only as margin security on the deal in good faith without damage to the brokerage company as it is holds the deposit to the end of the deal, but does not necessarily keep it.

If leverage in this example is 1:100

Before we continue we should remind you of some of the principles on the margin...

Margin definition

You may see more than one word for the margin so we should introduce you to its definitions.

First: Margin Account

It is the total amount of money in your trading account.

Second: margin required

It is the amount of money required to be deposited with the brokerage company to open a trading deal and margin, it is a main demand to keep your deals opened, the broker mainly takes the deposit margin and contributeit with the deposit of other people who deposits as margins, and this is used as a large excellent margin deposit to be able to put your transactions with Antrpeix.

It appears as a percentage of the full amount of the deal, for example, most brokerage companies require margin of 0.25% or 0.50% or 1% or 2% as a margin, and based on the margin required by the broker you can calculate the maximum leverage, which you can use in your trading account.



Second: Used margin

It is "part of the amount of capital" which the brokerage company closes out for a period to keep your current deals opened with the knowledge that this money is still your money but you can not touch it unless the company returned them to you in case of you made profit and shut down your business with profit, but if you close your business at a loss, the brokerage company takes part of this margin or all of it because you borrowed money to enter trading, but lost your deals according to your estimates of the market, how can the company ensure that you repay these funds, which you borrowed through it from the bank? .. Used Margin here play its role.



But if you do not close your own business and your loss has reached to the margin point, you will receive a margin call for the liquidation of all or some of your deals.





Third: Usable margin

It is the amount of money in your account that is available and allows you to open new deals.



A calculation to illustrate the leverage and margin

Example of the required margin and leverage

To open a deal in a standard K100 account of 100,000$ you may be required margin by 1% or 1000$ to open one lot

So the leverage in Forex trading made you trade 100,000$ with only 1% required margin

Then the leverage ratio is 1:100, which means the deposit of 1000$ × 100 = 100.000 investor's capital.



To open a deal in a mini account K10 of $ 10,000 you may be required margin by 0.50% or $ 50 for opening one lot

So the leverage in Forex trading made you $ 10,000 with only 0.50% required margin

Then the leverage ratio is 1:200, which means the deposit of 50 $ × 200 = 10.000 investor's capital.



To calculate quantities of the number of transactions you're allowed to make compared to the amount of your balance with your broker

The rule is: the total of your account with your broker ÷ Margin = the number of transactions allowed



For example, if your balance with the brokerage company $ 1,000 in a mini account

And you were asked a margin of 0.50%, $ 50 per deal to purchase Lot for $ 10,000

Then you have a chance to make 20 deals, $ 50 as margin per transaction.

$ 1000 account balance ÷ 50 $ margin = 20 deal allowed



In order to consolidate the idea of how the Forex market work in detail, here's the following example:

Fadi is a new trader in foreign currency market tells about the first day he began his business in this market:

After searching for a brokerage company and signing agreements with it to open my standard account, I deposited $ 10,000 and the next day, my first day of trading in the Forex began, I briefed on the news market and identified the most important economic reports that may affect the currency pair EUR / USD, which I intended to trade in.

And I decided to buy the euro (selling the dollar in exchange with the purchase of euro) at about ten in the morning - Saudi Arabia - in case employment report is issued showing much better results than its predecessor in the last month for the euro currency, as market analysts expected, but if the report is bad for the euro I'll sell (buying dollar in exchange with the sale of the euro).

It was around 9 o'clock so I did my technical analysis for the currency pair and saw that the direction of the euro is likely the best and that the euro is stronger for the day

At 10 a.m. the report was issued more than excellent for the euro, yes, my mental condition is now more comfortable, so I became more confident in my technical analysis, and began to enter a purchase order for the euro against the dollar and set the size of the deal to $ 100,000 funding on the margin provided by my brokerage company from the bank, and my balance there was a security margin on the deal of $ 1000 until the end of the transaction, after that the value of the security margin is given back to me, and the company gets the value of the facilities to return it to the bank without interest.

The spread in points between the purchase price and selling was 3 points and I entered a purchase order at a price of 1.3430 and set goals of profit until 1.3450. Fortunately the pair move more than 25 points in minutes, and then stopped and began to drop a little bit with 10 points and I could open new deal, but this time to sell the euro and earn these 10 points for me but I preferred to continue the upward trend, not to stand against it ..

Important news suddenly got published which were not in favor of the dollar, pushing the euro higher, so I raised my ​​profit goals at 1.3560 instead of 1.3470.

Collection of profit:

13,470 -13,430 = 40 points (no points difference)

40 points × the size of the deal $ 100.00 = 400 net dollars, as every point of leverage at the size of the Lot is 10 $ × 40 = 400 $



Here are the usual titles of the currencies in Forex:

US Dollar USD = Buck

Euro EUR = Fiber

British Pound GBP = Cable

Canadian Dollar CAD = Loonie

Swiss Franc CHF = Swissy

Japanese Yen JPY = Yen

Australian Dollar AUD = Aussie

New ZealandDollar NZD = Kiwi





What are the influences that drive the financial market?

Some of the most important influences:

1 - The issuance of economic news or what is known as economic indicators.

2 - News about changes that occur in interest rates of the currencies.

3 - Changes in the global markets and stock markets, gold, silver and oil prices, etc...

4 - The decisions of central banks on the currency.

5 - Cases of inflation and the strength or weakness of country's economy.

5 - Important political news.

How to take advantage of market effects that were mentioned previously?

Through announcements and market movements, we can monitor and study the market trend and we can build purchases and sales deals after the study of the economic situation, currency trading idea is to replace a strong currency that I bought compared to the weak currency that I sold.

In short:

We buy the currency which its country's​​ economy is better and its policy is stable, and sell the currency which its country's economy is weak and the political situation is bad



What is the best time for trading (ideally?)

Very high percentage of traders in the foreign exchange market is losing and there are several reasons, one important part is the time frame...



Time is very influential and very important factor and therefore preferred to work on big frames, the time factor with the type of pair and also with the idea of traders to take profits quickly is so wrong, so we see traders working on frames of 1 minute, 5 minutes and 15 minutes, all of this constitutes a serious risk and it is known that the pairs move nervously and incorrectly in short periods.

Your choice of the time frame is related to the following matters:

- Character as a trader

- The nature of your business

- The Pair

- The goals of the trade (long/short)

- Your ability to control the market



Yes, all these factors affect your business and there are other secondary factors, personally I would prefer trading for 4 hours or daily or weekly, and it's always better to focus on the weekly and then the daily and then taking the deals on 4 hours, but this is just what I think, everyone is entitled to trade in the time frame that is appropriate for him.



Trading by time:



(1) Long-term



This type of traders, which most of their deals have long-term goals and depend on weekly or daily or monthly time frames as these frames give them a look at the long-term and the trade usually lasts for a few weeks or several months or even years.

This type of trade is not necessarily monitored daily, it has fewer transactions and more profits, and you need a large amount of money in the trader account.









(2) Short-term swing



This type of traders does short-term deals that last either for a few days or even a week, and they use the four hours scheme or the daily one.

This type has more trade opportunities and the percentage of loss is lower, and it is possible to rely on more than one deal daily.



(3) Intraday



This type of trading uses 15 minutes or 30 minutes scheme or even hours and comes out at the end of the day.

This type of trade provides a lot of opportunities, less monthly loss, but it is more difficult because the reluctance of traders and the market's daily movement.



Choosing a time frame on the MetaTrader:






As we see in the picture above, you can choose from 1 minute up to 1 month. This means if we choose 30 minutes, each candle is limited to 30 minutes; the candle opens and closes after 30 minutes.



Now I will tell you the secret of frames is, the bigger the time frames the more you can determine the levels of support and resistance, as these frames enables you to have more extensive view of the market.



** Once again we remind you that the best frame is the four hours and the daily **





Trading strategies



And now that we learned about the time frames we will start building the most appropriate trading strategies for us...

After you choose the time frame you have as a beginning trader to choose a pair to trade on and then you should be strictly strategic and put weekly or monthly goals in the strategy, for example, 150 points every week, as you have to be firm in your decisions and when to take the profit and when to stop the loss, because if you are successful in the goals you'll be successful in Forex.



How to start building in the Strategic:



Determining the time frame

The first thing and most important thing is to know if you are a trader of short-term or long or very long terms, as I mentioned earlier, all this will help you determine the time frame that is right for you, but do not forget to use a time frame smaller based on your main frame as this helps to better identify points of entry and exit.



Selecting the technical indicators

There a lot of indicators that help in technical analysis and knowing the market trend, to add an indicator you, of course, must know it 100% and on any time frame and on any pair it works.



Determining the degree of risk

Please focus!! The risk factor and determining it is very, very important, a lot of people say that the Forex is not profitable but this is not true, the truth is that traders do not know each risk in the deal...

Forex market gives you is very high leverage and this thing has its advantages and disadvantages, but the disadvantages are more as I think, each trader should not use leverage of more than 10:1, and less is even better, so if the market rebounded 200 points you can always get out of the deal with lowest loss.





Identify points of entry and exit

After identifying the risk and the time frame and the indicator, you only have to know or determine when to enter and when to get out, these points stems from the identified type of the index or the time frame you're following which gives you the support and resistance.



And always remember!! Follow your strategic strictly...



Learn how to manage your finances safely:

Trading must be follow the rules of money management, as if there is no such thing, it would become a "gambling"

The rules of money management are very important as they first protect us as much as possible from the loss, and from them we learn how to control losses and make us increase our profitability in the long run.



Sound money management rules:



Do not enter the market with more than 10% of your capital and work to stop the loss at 60-75 points.



Select a percentage of the losses
Put stopping losses orders


Do not try to enter the market with more than 10% of your capital because the high-risk, as the market could go contrary to your expectations and the loss starts in the deal.



Why do traders lose???

Professional traders in this market work on wallets of $ 50,000 or $ 5,000 mini-accounts ... and trade 1 lot size contracts, so why the beginner traders start deals with 1 lot deals while their balance is $ 3,000? The answer is the lack of knowledge of the market and the lack of knowledge of trading conditions, so most of the traders who have failed in the Forex did not have the slightest knowledge about the sizes of funding and did not know about the financial leverage.



Leverage

It is the power that enables you to control a large amount of money, which means trading at a fraction of your capital and the rest is to help you to trade, do not ignore the importance of the leverage.



Margin account

It is the total amount of money you have.



Used margin

It is part of the amount of capital that is deposited at the brokerage company and the company closes it to keep your deals opened.



The greater the leverage, the greater the risk:

For example, say you bought a Dollar/Yin and the price rose by 1% from 120.00 to 121.00 and you trade in 100k account, check the profits based on leverage:

Successful traders are those who use lower leverage, such as 1:3, 1:5, up to 1:10 maximum.



Trading plan in the currency market:

In order to be successful in this market, you must follow a plan of which you snapped your deals, what are the components of the plan that you must be own?

Identifying your system and style for your trading.
Your thinking and your emotions.
Identifying your weaknesses and your strengths.
Identifying your goals.
In short:

You should read your trading plan daily and be strict with it, and in order to be successful have a plan, please.

Now dear trader after you became sure of how the market of currency trading work, you can progress to the next step, being a novice trader, in which you will learn how to apply the trading on a real trading account.



Forex Trading

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