When an unsettling news comes down the pike, traders tighten his mind, his soul and his entire being to make profits and take money out of the market. So, there is a theory pointing out that market prices reflect all available market information. It is called the efficient market theory. In the efficient market theory, [...]
Posts Tagged ‘Forex Trading System’
Market Theories
Posted by Taro on June 22nd, 2010
Posted in Trading System 
Tags: Forex Trading System, Futures Trading System, Trading System 
No Comments »Trend Relativity
Posted by Taro on June 22nd, 2010
Trends is valid only the time frame they occur. Chart patterns in time frames larger and smaller than the current trend are independent. This inter-relationship applies all the way from 1-minute through yearly chart analysis. That’s why traders must always operate within various time frames. The most profitable positions will align to support and resistance [...]
Posted in Trading System Tags: Forex Trading System, Futures Trading System, Trading System No Comments »The Matter of Time in Trading
Posted by Taro on June 22nd, 2010
Chart patterns that offer trading opportunities form equally through all time frames. The setups remain valid in chart of every time frame, whether they appear on 5-minute or monthly bars. Each time frame attracts a specialized group of traders that interacts with all other groups through the universal mechanics of greed and fear. This results [...]
Posted in Trading System Tags: Forex Trading System, Futures Trading System, Trading System No Comments »Swing Trading VS Momentum Trading
Posted by Taro on June 22nd, 2010
Generally, periods of trending market last a relatively short time in relation to longer sideways market. But rather than stand aside, many traders think they are seeing trends where the market are not trending. In trending market, fast-moving stock’s prices attract attention and awaken great excitement. Many novice traders fever with these hot plays. The [...]
Posted in Trading System Tags: Forex Trading System, Futures Trading System, Trading System 1 Comment »Trading with Channels
Posted by Taro on June 15th, 2010
Traders handle channels differently. Some traders bet on long shots, they tend to buy upside breakouts and sell short down-side breakouts. When they see a breakout from a channel, they hope that a major new trend is about to begin and make them rich quick. In the other hand, some traders trade against deviations and [...]
Channel Trading System
Posted by Taro on June 15th, 2010
Prices often move in channels, when prices rally, they often seem to stop at an invisible ceiling. Also, when they fall, they often seem to hit an invisible floor as well. Traders can use channels to identify buying and selling opportunities and avoid bad trades. Channels help traders because their boundaries show where to expect [...]
Trading Strategy Design – Testing & Trading the Strategy
Posted by Taro on June 9th, 2010
Once you have designed all of components the strategy, you may then want to test it. In order to test a strategy, you have to test each part by adding it to the strategy one at a time, to see if there is improvement and, if so, how much.
Trading Strategy Design – Using Stops
Posted by Taro on June 8th, 2010
The only purpose for using Stops is to protect your capital. They are used either to cut losses or to protect profits. Stops are usually based on some dollar figure rather than a market indicator or price pattern. A characteristic that stops share with exits is they force the strategy out of the market, which [...]
Trading Strategy Design – Using Exits
Posted by Taro on June 8th, 2010
Usually, most trading strategies start with defining a signal to take a position in the market. To design the signal we use set-up and entry which have been described in earlier articles. For the exits, in theory, we may use reversing of signal to define the exit. For example, if you use trend-following strategies and [...]
Trading Strategy Design: Indicators and Price Patterns
Posted by Taro on June 2nd, 2010
Getting to know indicators and price patterns is the next step in designing trading strategy after making decisions on type of market and time frame to trade.
