Hey guys…this will be the last part on the forex trading tutorials on divergence trading. If you have missed the blog post since part 1, then you can start reading it HERE. After the examples on hidden and regular divergence, are you more familiar and comfortable with trading divergence now? Perhaps you can use it by combining with your forex trading system as well, and you will see how powerful the forex strategy is. So today I’m going to guide you on how to trade forex divergence the proper way and last but not least, the summary for this 4 part tutorials.

Divergence acts as a warning signal on whether the forex market could reverse or continue on the trend. You can say it’s something like price action because it is more leading than the forex indicators. Before the indicators can show you something, divergence can already give you a forex signal. However, please take note that divergence is used as a signal as an indicator, not a signal to enter a trade. It’s not a holy grail and you should combine it with a forex trading system to make trading a very low risk with high winning probablities. Using divergence with a longer timeframe like H4 or above will increase the probability of winning and reduce the risk. One more thing is that, if you solely trade based on divergence, chances are you wouldn’t spot it too often. But if you spot a good one (after practicing), they can fetch some nice profits.

Here’s the rules on how you trade divergence :

1. For divergence to occur, the price must have formed patterns like the 4 scenarios of the previous posts. Do not imagine one if the market is choppy and doesn’t fulfill higher highs, lower lows etc.

2. If you draw lines connecting two highs on the price, make sure the two highs are connecting on the indicator as well. Same for lows. In any case, they have to match.

3. The highs and lows that you identified on the price must lined up vertically with the forex indicators’ highs or lows.

4. Divergence occurs only when the slope connecting the price highs/lows are different from the slope connecting the indicators’ highs/lows.

5. If you spot divergence after some time the price has reversed, then that means you have missed the boat and should wait for another opportunity. You should not chased after it.

That’s all for this 4 part forex trading tutorials and I hope you have benefited from something here. Remember, practice makes perfect and one day you can be sure you will spot divergence easily.

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Hey guys, most people will trade forex using traditional forex trading systems and keep looking for one that is close to a holy grail. Are you doing the same too? I mean it’s alright to have your own trading system and it’s good that you follow the rules and stick to it. For my Pips Mover™ trading system, it’s also a mechanical system which can make real profits and many of my members who are using it are satisfied with the performance. But now I’m introducing you a method called divergence trading. For experienced traders, this method is definitely not a new stuff to them, but for new traders, you can learn how to trade forex with a wider perspective using divergence and below are the forex trading tutorials to it.

So what exactly is divergence in forex trading? It’s basically a price action measured in relationship to a forex indicator. I use MACD in my charts to detect divergence, but in fact there are no hard and fast rules to which indicators you are using. You can also use oscillators like Stochastic, RSI (Relative Strength Index), trend indicators like CCI (Commodity Channel Index) etc. We all know that forex indicators are always lagging but price is king because they are leading indicators. In divergence trading, it’s something like price action because you can use it as a leading indicator. You can master this forex strategy after some practicing as practice makes perfect.

When divergence is used properly in forex trading, you can profit from the method consistently too. It is a lower risk to sell near the top and near the bottom of a trend because the risks are relative smaller to the potential reward. So what’s your thinking when a currency pair is making higher highs and lower lows? It will mean the price can go even higher or lower right? So when the price is making higher highs and lower lows, we expect the indicators to follow suit. If they are NOT, then the price and the indicator, in this case the MACD, are diverging from each other and will mean that the forex market may reverse. Again, the method works better on higher timeframe like H4 or higher.

There are two types of divergence which are

1. Regular and
2. Hidden

We will stop here for this forex trading tutorial and for the next few blog posts, I will show you some examples of live forex trading charts which divergence can be used on. So visit my blog again for the next few days to learn forex using proper divergence trading. If you have not got my forex trading system, please download it at the top and you can get also access to my fr.ee weekly newsletter, forex trading tips and other resources.

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Hi guys, if you are not aware, there is a new ruling from The National Futures Association (NFA) which take effect on May 15, 2009. The ruling will address the practice of “hedging” in forex trading. Hedging is the action of holding both long and short positions at the same time for the same currency pair. Below is what the NFA has decided with the ruling.

[Offsetting Transactions

New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as "hedging." A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge.]
This is from the NFA notice on 13 April.

The above means that if you try to open long and short positions at the same time for the same currency pairs, those trades will become invalid because the forex brokers will offset those trades against each other, and therefore you are left with no trades open. Some of you might already known that some brokers like Oanda have always been practicing no ‘hedging’, so there is not much changes to those who are trading with them. But for those of you who have been using forex trading systems that needs hedging, then this might be a bad news because other brokers will follow suit of the ruling change.

One thing that most people are not aware of is that now CFTC has been given regulatory authority over forex trading and NFA is the industry organisation that the forex brokers in the U.S. belong to. This means that CFTC and NFA forex brokers are no longer unregulated in the U.S.

Last time I have always been curious and bias about how hedging works in the forex market and I never give forex trading tips related to hedging at all. So now this rule came alive, it does not affect me at all because I never use forex trading strategies that uses hedging. And I never believe in that because it’s complicated to me. My forex trading system is simple, easy to use and profitable. You only have to learn the rules, practice it and make it work in the real trading world. So what about you? Are you using hedging strategies all this while? If you are, then the ruling will really affect you and it’s time that you look for some other strategies to trade the forex. Let me know by inserting your comments at the end of this post on your views for hedging.

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Hi guys, that day we have discussed 2 of the factors that can affect your forex business success. If you have missed that you can refer to that post over HERE. Today we’ll look at the remaining 2 factors of how a forex trading system can bring success to you and how it should be done.

3. Network With Forex Traders - Although trading may seems like a one man show, but in truth, you may need some reliable forex friends or partners to talk about the market conditions. It will be good that if you and your partners share the same forex trading system and talk about the same forex strategy. This means that everyone is using the same system and can remind each other of their trades. Imagine if you are trading using the system yourself and no one is using it. You met with difficulties, unable to understand why does it happen this way, losses pile up and then eventually you give up on yourself. But if you have partners who can trade together using same set of forex trading strategies, then you can encourage each other in times of difficulty and help each other out. Therefore, it will be good that among all of you who are using the same forex trading system, one or 2 of you are really good in it and when some weak or inexperienced traders encounter problems, you can solve it easily.

4. Creating Your Own Forex Trading System - For newbies in forex trading, it’s understandable and acceptable that most of them are always looking around for forex trading tips, new methods, new trading systems or strategies to help them to profit in the forex market. We do not try to penalize them because they are new and do not really know how the market actually works. That is why I come in, setting up this blog, giving people the right education so that they can trade correctly and profitably If you have been trader for months or years, but still cannot make a consistent income from the market, you really have to reevaluate on your actions. Is it you are trading the wrong way, too impatient or what? What I suggest to many traders is that once you can profit using the forex trading system that you got it from somewhere, but still not really that comfortable with the trading timeframe or style, then it’s time you consider creating your own system by modifying others’ systems. This is integrating your knowledge with the current resources to make the system suit your lifestyle. This is important because the trading system follows you the rest of your trading career and you want it to be at your finger tips.

It may seem like it’s a mountain to climb when you just started trading, but when confidence starts kicking in, patience and emotions starts to be in control and some experience has built in you, then you may be soon over the steep learning curve and begin a new life of trading.

For those people who has not tried out my forex trading system, you can get my f.ree forex ebook with tips that tell you how to look for accurate forex trading signals, strategies and many more. So get your copy today. If you’re new here and like what you read, please subscribe to my blog feed or sign up for free email updates .

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We are back to look at how you can get some good forex trading advice on the internet without having to spend tons of money for it. If you have missed the first part of this forex trading guide, you can refer to it by clicking HERE. I hope you have already digested what was in the first part of the post because we are going to continue to look at the 2nd part below.

Like I have said earlier, while you can find some free forex education online, you will have to make sure that it is the right and useful education for you and not just junk. There is one piece of forex trading advice that I want to give you and you must make sure that you bear in mind ok? Now this is simple if you hear me saying this. Majority of traders failed is because they lack of trading discipline. How do you train up to have discipline? I know it takes time to build confidence in your forex trading system, but you really need to follow it as that will train you to have more discipline.

So when it comes to forex trading advice, there may have some websites like mine, but you may not find their support as good as mine I’m not trying to promote myself or something, but if you have read those testimonials that my members have sent to me, you will realise that I’m really serious to help those traders who are not so successful in trading yet. By communicating through emails, I can point out their mistakes and give them advice on how they can improve their trading skills, this is something precious that you will not want to miss right…and somemore you do not have to pay anything for my advices This trading blog is for everyone, so you can feel free to read my blog as often as I’ll be posting technical analysis and some good forex trading tips that you will find it useful.

Are You Happy And Satisfied With My Support So Far?

So guys, if you find my tips and advice helpful to you so far, please post some comments below this blog with something like ‘Yes, I found it useful to me and it earned me __ pips so far’, and also tell me what I can do to improve my service ok? Thanks friends

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Hey guys, I hope you have profited from this EUR/JPY trade yesterday too. If you didn’t read my post on my forex trade which I have done yesterday, then you can refer to it HERE . It was quite an easy trade as this pair was very trendy the whole day due to the positive reactions of the stimulus plan. The global stock market was very bullish yesterday and therefore the Yen pairs like EUR/JPY, USD/JPY etc are on a rise. Above is the forex chart on which I have closed my trade.

I did not trade too many lots for this forex trading pair and did not close it at different times because I was caught up with other stuffs to deal with yesterday, or else will have made bigger profits. Anyway, I’m always satisfied with the profits that I have made with my forex trading system , regardless of how much the profits are..and you should be satisfied with whatever profits you made too! Since the pair was smoothly along with the direction of my trade, it hardly came close to my stop loss of 30 pips and continue to rise from my entry price at 131.74. My profit target just below the R2 level at 132.44 was hit in a short period of time and I have made 70 pips !

If you remembered what I mentioned yesterday, I said that even if EUR/JPY hit my target profit at R2 of the daily pivot, it will still have the momentum to rise even further. True enough, the pair even broke the R3 level which means that it was on a real bullish run. From my technical analysis point of view, EUR/JPY still have the strong momentum to rise on the upside. From the Fibonacci drawn from 169.95 (23 July ) high to 112.06 (21 Jan) low, this pair have reached 38.2% and may approached the next resistance of 50.0% (141.01). On the downside, break of 125.72 may suggest that the pair has resumed the major down trend.

If you have not got this forex trading system from my f.ree forex ebook, please download it and see if it is suitable for your trading. Besides that, there are many other forex trading tips, forex trading strategies that are beneficial adding to your forex education. If you’re new here and like what you read, please subscribe to my blog feed or sign up for f.ree email updates .

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(Click On The Image To Enlarge)

Hi guys, this trade is my first forex trade of the month and it made a great start! For the past one week, the forex market has been consolidating for EUR/USD, and that’s why I turned to EUR/JPY instead. At the same time, today the global stock markets have been on the upside due to the meeting of Group of 20 leaders to discuss the stimulus plans. In the Asian trading sessions, the stocks have been already rising at a fast rate. When the European session started, the global stocks kept rising and in turn pulled up the Yen pairs like EUR/JPY, USD/JPY etc.

From the forex trading chart above, we can see that EUR/JPY is trendy on the upside with the black EMA crossed up the blue EMA, the price is also above the golden colour EMA too. I bought this pair at 131.74, already this pair is above the R1 of the daily pivot and have a good chance of reaching R2. So I have set my stop loss to 30 pips and profit target at just below the R2 level of 132.44.

From what I see, there may be a strong momentum for EUR/JPY to rise even further after it reaches the R2 level. This is supported by the fibonacci levels of 61.8% at 131.41 (when I draw from 24 March high to 30 March low). This was not shown in the forex chart above but you can draw it on your charts to verify. There was a convergence of the 61.8% and R1 of the daily pivot, therefore it suggests that this pair may be resuming it’s uptrend. Let’s see what is the result for my trade later. If you have not got my forex trading system, and my f.ree ebook with plenty of forex trading tips, forex strategy etc, please download a copy HERE .

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(Click On The Image To Enlarge)

Hi guys, have you been doing well in your forex trading this week? If not, please leave a comment at the end of this post on what problems you are facing, or you can email me too. We will look at the forex market conditions for EUR/USD today and below are my analysis for the pair with the forex charts above.

There was a new low in place at 1.3112 on the 30th March. From the forex charts above, we can see that the price was also supported by the golden colour 200 EMA. Although the pair broke through the channel between 1.3730 and 1.3418, the market conditions remains neutral in EUR/USD and seems like there are more consolidation to be seen. However, the intraday bias remains on the downside as there is a minor resistance of 1.3417. There seems to be a triangle (brown colour) and the price is waiting for a break out. If the pair falls below 1.3112, it will suggest that the fall from the high of 1.3737 has resumed. Break of 1.2990 will confirm that rise from the low of 1.2456 has completed and may retest the support. On the upside, break of 1.3418 may indicate that rise from 1.2456 is heading back into the consolidation channel and may reach the higher target of 1.3855 (61.8% fibonacci).

In the bigger picture of forex trading, recent development suggests that EUR/USD may still be bounded by sideway consolidation and at this moment, we can’t confirm that the rise from 1.2456 has completed. EUR/USD may still extend it’s rise to 1.3855 and above. However, upside should be limited by the high of 1.4719 resistance and then down trend may resume from there. On the downside, if the pair goes below 1.2990 support, it will confirm that rise from 1.2456 has completed.

If you have not got my forex trading system that is provide in my f.ree ebook, please get it now as there will be tons of forex training, education and forex trading tips that you can pick up.

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Hi guys, I know everyone who wants to succeed in forex trading thinks that they will only be successful if they have something special, which many people will call it the ‘holy grail’. Well, I hate to repeat this for so many times when people asked whether I have a forex trading guide that can win 100% of the time. My answer here again will be no, I do not have it and I do not think anyone has it. If you want to be a successful trader, you don’t really have to go until such extends to search for the strategy or system. All you need is a mentor or coach who can give you free forex trading advice. On the internet, you can find plenty of them and of course this blog here is one of them

A common mistake made by many beginners is that they think they can buy success in forex trading by buying a trading system or strategy for $67, $97, $147 etc. Even if there is some forex trading advice sold on the internet, you have to judge whether it’s really worth the money and not some marketing gimmicks.  If at any time you will need to pay for those forex trading advice, how do you decide if it’s good? Some forex tips here..  Look for a real time track record and a money back guarantee. If you don’t get both, then don’t buy. This involves your hard earned cash, so you should do some research on the products that you are interested in.

You can find plenty of stuffs and education related to forex trading on the internet and they are free. Here are some of the topics that you may want to look up and study more on them.

1. Technical Analysis - You can find information on chart formations, candlesticks patterns, fibonacci numbers, support and resistance and many more that are used in many forex trading strategies. These mentioned technical stuffs are very important if you are a chartist or technical trader, and can be combined to become a powerful forex trading system.

2. Technical Forex Indicators - Most of the traders will trade using their favourite technical indicators and you should too have some in your trading system. However, do not flood your charts with lots of indicators because large quantity of them will only give you more restrictions to your trading. When you draw your charts with trendlines, chart formations etc, you will also need some timing indicators which include Stochastic, RSI, MAs, MACD etc. There are many more besides those that I mentioned, but in general, they are good enough for entering the forex market.

That’s all for today and we’ll look at how you can get some good forex trading advice on the second part of this post tomorrow. If you have not have not got my ebook with tons of forex training, forex education and a profitable forex strategy, get it now for fr.ee that is originally worth $67! Have a nice day!

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This is the second part of the post where I suggest some forex tips on searching for good forex trading systems. If you have missed the first part of the post, you can refer and read it by clicking HERE. So today I will continue to give you the remaining golden tips that are needed in the search for good trading systems. Below are another 3 tips that may be useful to you.

#4. Look Out For Logic Of The Forex Trading System. There will always be a description of what the trading system will be like, how does it trade and the functions of it. I know this may need some experience before you can even comment on the logic that the trading system has. But let me give you an example, if the vendor claimed that the forex strategy can make you 300% ROI within one month, then you really have to verify whether the trading system uses a scalping strategy, swing method or what. And if the trading system is based on a set of forex indicators, at least know what kind of indicators are they using. I said all those above is because you will need confidence to follow a system with discipline, and if you can’t, you have no system at all.

#5. Search For Forex Reviews. Before you decide to purchase any forex trading system, you MUST look for reviews in either forex forums, blogs or other websites that allow people to comment on the products that they bought. This is important because you will want to know how other people feel about the trading system and whether is it working or just another scam. Besides that, if you can’t find the answers that you are looking for, you can post comments or questions on those sites to clarify your doubts on the trading system that you are interested in. You should be in total understanding of the product and have confidence in it before you actually put it in your shopping cart.

#6. Know The Vendors Well. Be more enthusiastic and find out more about the vendor. Find out who has developed that forex trading system and his track record. If he has not made any real money from the system that he created, then why should you trust him and risk your money? This is the time to ask them more questions which you still have it in mind. You should see how keen and responsive are they to your questions and what kind of support do they provide. If you ask some questions that normal vendors will answer, but they don’t, then something must be hiding from them. Last but not the least,  you must make sure that the forex trading system that you are buying should include a money back guarantee. Most of the products out there in the forex market have a 56 days guarantee, this is to protect you so that if you are not satisfied with the product, you can get all your money back minus the exchange rate.

So the point of the forex training that I have given to you is to help you choose the best and the most comfortable trading system for yourself. Once you have chosen it and if it is a good system, you should stick with it in times of bad periods because no system is holy grail and it’s the long term results that count. Good luck and find a trading system that suits you well. If you came across one, you can let me know and I’ll see if I can give you some feedbacks on it.

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