fibo777
Member

Day trading is a good way to trade financial markets for those who have limited amount of money. You can trade using leverage and increase your chances of making monthly and annual income with a few thousand bucks as initial capital. However, one has to have reliable day trading strategies, an edge and proper money management system. You need to have an edge to be able to make profit, a strategy to be able to apply your insights into some practical steps and a plan how you are going to limit risks. Today I want to talk more on the aspect of trading strategy and how you can use support and resistance levels to do that.

Firstly, I do believe you should always be trading seeing the big picture. You should know what is the main direction

Read More

Euro has been rising for months against British pound. It was an expansion in the form of waves. Every bullish wave was followed by a bearish wave. However, we always saw higher highs and higher lows, which was a clear indication of an uptrend. However, the last wave up was very strong with minimum sideways action and very miserable retracements (counter trend moves). It was also fast. Just look at your daily chart to see this. The move is overextended and there has to be a correction.

In my opinion tomorrow’s data (BOE minutes) can influence the collapse in eur/gbp and form another bearish wave. I do not rule the possibility that this bearish move can also end the uptrend in the pair. I also believe it can be very sharp. The

Read More

Today I was looking at eur/jpy and gbp/jpy pairs and saw some bullishness continuation signs. It is rather difficult for most traders to stay bullish on pairs that have been running so strong for so long. Both pairs have soared from the middle of November. Bank of Japan bearish comments and upcoming elections cause Yen to collapse. Fundamental picture might not be as gloomy as most paint, but as we do not see any signs of reversal yet we should be trading Yen from short side.

If you look at 1 and 4 hour charts of both pairs you will see bullish triangles. Furthermore, both pairs are above their 200 simple moving averages. eur/jpy is also above its’ 50 simple moving average. Of course, technical indicators might not be that

Read More

Today I want to share with you eur/aud support and resistance levels. The pair is in a clear range and a few days ago after failing to break the top of the range it is now headed to the bottom of it. It is important to trade in the direction of a trend or swing, so one should be looking how to short Euro against Australian dollar. Wait for rallies before you start shorting.

Let us define resistance levels:

They are: 1.2810, 1.2670, 1.2586, 1.2536

Let us look at support levels now:

They are: 1.2440, 1.2385, 1.2280, 1.2150.

As always even numbers often serve as exit areas for big boys. Have this in mind too.

For more: eur/aud

Trading news in forex market is one of my favorite trading systems that I have been using for about eight years. Most traders do not recommend trading news due to extreme volatility around fundamental news releases, but if you know how to limit your losses and increase profits by news trading, it can add consistent profits to your forex trading account on a monthly basis. Below are some of the actions that I take before trading news.
Before trading news or chart patterns or just support and resistance, I do some analysis, ask myself some questions and then trade accordingly.
Let's say we have some news from USA after 4 hours and 20 minutes. I start screening all pairs looking for the best technical setups and do analysis of

Read More