Channels | ForexGen Tips

There are 2 types of channels in the forex market :1-If you want to create a down channel, it may also be called a descending channel, you can simply draw a line at the same angle as the downtrend and after that move the line to a new place where it can reach the most recent both valley.
For the both channels ,it should be done at the same time to you to create the trend line.It may be a sell signal when the prices hit the up trend line and it can be a buy signal when the prices hits the down trend line

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The Million Dollar Question

How do you figure out whether to freakin’ use oscillators, or trend following indicators, or both? After all, we know they don’t always work in tandem.For now, just know that once you’re able to identify the type of market you are trading in, you will then know which indicators will give accurate signals, and which ones are worthless at that time.
Summary There are two types of indicators: leading and lagging.A leading indicator gives a buy signal before the new trend or reversal occurs.A lagging indicator gives a signal after the trend has started .Technical indicators into one of two categories: Oscillators and trend following or momentum indicators.

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How Does The Carry Trade Work For Forex | ForexGen Tips

As a forex trader you know that forex trade in pairs, for example you trade USD/JPY that mean’s buying a US dollar and sell JP Yen. So you pay for JPY and collect the USD.Technically, all positions are closed at the end of the day in the spot forex market. Brokers close and reopen your position, and then they debit/credit you the overnight interest rate difference between the two currencies.The amount of leverage available from forex brokers has made the carry trade very popular in the spot forex market. Forex trading is completely margin based, meaning you only have to put up a small amount of the position and you broker will put up the rest.

Commetment Of Traders Report

The Commitments of Traders (COT) reports can be a very powerful trading tool to help anticipate market direction as it provides a breakdown of each Tuesday’s open interest for market reports in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC., and it measures the net long and short positions taken by traders in the futures market. Of course, it is very important to know that For reportable positions, additional data is provided for commercial and non-commercial holdings, spreading, changes from the previous report, percents of open interest by category, and numbers of traders
The report is pretty straight forward, but here’s a quick run down of what each category is.• Non-Commercial – Traders such as individual traders, hedge funds, and financial institutions. who are looking to trade for speculative gains.• Commercial - These are the big businesses that describes an entity involved in the production, processing, or merchandising of a commodity that uses currency futures to hedge.

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