•  
  • New York 14:09
  • London 19:09
  • Barcelona 20:09
  • Tokyo 03:09
  • Sydney 04:09

The Trend Trader for Forex

Fri, Mar 12 2010, 01:30 GMT
by Bob Hunt

Pattern Trapper  |  View company's profile

Vote:

0

0


The Trend Trader Reports

Available FREE for Futures, Forex, Stocks, & ETFs. Learn the math & how to use them. They're even offered as RSS feeds!

Chart

The Trend Trader helps to identify the current trend status of your favorite ETF markets. It not only helps us to stay on the right side of market direction, but also helps us avoid those without a trend. You can even use the grid as a spread matrix too - buying strength and selling weakness.

Pivot Point analysis is merely a tool and should be used with other technical indicators. It can be used to enter a trade, or exit a trade and when combined with average true range is a powerful money management tool. Once you enter a trade, you are no longer a trader, you are a risk manager and should monitor your trades on a weekly or daily basis depending on volatility. When you enter a trade assume you are wrong and let the market prove you are right. This will diminish the hubris and arrogance that is common to many traders. Please use these Pivot Points as a guide to better trading.

As you examine the work sheet, please note where there are two arrows confirming a trend. Be it long or short, a close must occur above or below two trend arrows to confirm a strong trend.

The short term trend is a three day moving average of the Daily Pivot. The long term trend is the Weekly Pivot. So we are comparing a short term moving average with a long term simple weekly average.

Remember, the 3x1 is a moving average of the Daily Pivot. If you are daytrading and the price of your commodity or financial instrument trades through the 3x1, you may want to stop and reverse.

Rules:

Price > than 3x1 and 7x5...Buy

Price < than 3x1and 7x5... Sell

Price > above 3x1 but < 7x5...minor buy

Price < below 3x1 but > 7x5...minor sell.

If you choose to ignore these guidelines, you will be a counter trend trader. There is usually more risk associated with trading against the trend.

You can use the grid as a spread matrix too - buying strength and selling weakness.

Published on  Fri, Mar 12 2010, 01:32 GMT


Pattern Trapper | Lakeville, MN, USA
http://www.PatternTrapper.com | RHunt@PatternTrapper.com

Archive


Legal disclaimer and risk disclosure

Pattern Trapper reports are compiled from sources believed to be reliable, but their accuracy cannot be guaranteed. There is substantial risk of loss in futures trading. There is no warranty, express or implied, in regards to the fitness of this information for any particular purpose. Past performance is not a guarantee of future results. All materials are copyright © 2009 by Bob Hunt. No part of these resources may be reproduced, stored or transmitted without the prior written permission of the copyright holder.
Vote:

0

0


Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account		Forex Club Financial Company
Contact the broker/FDM
Open a demo account		Capital Market Services
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

* GFT is a sponsor of FXstreet.com for advertisement purposes only. GFT does not endorse any other products, services, or companies represented on FXstreet.com. The views of FXstreet.com and all other parties contained therein are not necessarily those of GFT, and GFT makes no warranty as to the accuracy of information provided.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.