Fibonacci Extension | ForexGen Tips

what is fibonacci and how to use it in the world of FX?
Leonardo Fibonacci was a 13th century mathematician who noted that there are certain ratios that tend to occur repeatdly in nature . The common ones that he identified were 38.2%, 50%, and 61.8%.For example, the distance from your fingertips to your wrist is 38.2% of the distance from your fingertips to your elbow. There is overwhelming evidence of Fibonacci ratios operating throughout nature.These are not always perfect, but surprisengly they work more than just often!! Many people have argued about why these work, but my opinion is that all the large institutions use them, so you might as well buy or sell at the same levels that they do and if these levels don’t hold you can get out with a small loss.

Find Out More

Exponential Moving Average EMA | ForexGen Tips

In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages). exponential moving average reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average. The shorter the exponential moving average’s period, the more weight that will be applied to the most recent price.
For example: a 10-period exponential moving average weighs the most recent price 18.18% while a 20-period EMA weighs the most recent price 9.52%. As we will see, the calculating and exponential moving average is much harder than calculating an simple moving average. The important thing to remember is that the exponential moving average puts more weight on recent prices.exponential Moving Average Calculation Exponential Moving Averages can be specified in two ways - as a percent-based exponential.

Find Out More

Simple Moving Average (SMA)

the simple moving average is formed by calculating the average price of a security over a particular number of periods. While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.
For example: a 4-day simple moving average is calculated by adding the closing prices for the last 4 days and dividing the total by 4.11+ 12 + 13 + 14 = 50(50 / 4) = 12.5The calculation is repeated for each price bar on the chart. The averages are then joined to form a smooth curving line - the moving average line. Continuing our example, if the next closing price in the average is 15, then this new period would be added and the oldest day.

Find Out More

Moving Averages Summary | ForexGen Tips

Moving averages are one of the most famous tools and also the easisest tool used by many traders.We can find many types of moving averages .the 2 most popular types are: Simple Moving Average and Exponential Moving Average.• The simple form of moving average (SMA) will be the simple moving average, is formed by computing the average = price of a security over a number of periods• Exponential moving averages: EMA’s reduce the lag by applying more weight to recent prices relative to older prices.• The best way to use moving averages is to plot different types on a chart so that you can see both long term movement and short term movement.

Whats the trading system | ForexGen Tips

It seems that everywhere you look, you see advertisements for software promising accurate buyand sell signals and profits with every trade. Just have a look at some captions of the adverts Ihave seen!“I’ve Finally Cracked the Forex Code”“ Make thousand pips every month”“ Trade Forex with a secret formula that only a handful of Traders use”The list is endless.. These so-called killer systems don’t come cheap, costing you thousands tobuy. However with just a little bit of effort, you too can “crack this secret code” yourself.Once again let me assure you, from my experience and knowledge of being a trader for the past20 years, that there is “NO Secret Code”, “NO Killer Systems”, “NO Holy Grail”, and “No UniqueDiscoveries”.In my opinion most of these adverts are no more than scams. It may not make YOU rich, but itwill certainly make the Vendor’s millionaires. Most of these secrets and codes or discoveries arereadily available to you. The only secret is that YOU don’t know how to use these simplestrategies! Or nobody has shown you how to use them correctly.This is precisely what I am going to do in my book – “ The way to Trade Forex”, I hope to holdyour hand and show you step by step how to create a killer trading system of your own. However,the fact is that many traders are simply lazy and cannot make time to plan or create a system.YOU have a choice, either become a winning trader or continue to lose money!What Is a Trading System?A trading system is simply a group of specific rules, or parameters, that determine entry and exitpoints for your trade. These points, known as signals, are often marked on a chart in real timeand will prompt you to pull the trigger.Here are some of the most common tools used to construct a trading system-1. Chart Patterns1. Moving Averages1. Stochastics1. Oscillators1. Relative Strength1. Bollinger Bands10

Find Out More

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

Find Out More

Support And Resistance | ForexGen Tips

The concepts of support and resistance are undoubtedly two of the most important and highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade.
Most experienced traders will be able to tell many stories about how certain price levels tend to prevent traders from pushing the price of an underlying asset in a certain direction.Most technical traders incorporate the power of various technical indicators such as moving averages, to aid in predicting future short-term momentum, but these traders never fully realize the ability these tools have for identifying levels of support and resistance

Find Out More