Inside Trade | Basic Candlestick Patterns

The main concept of technical analysis is that the movement of the market repeats every now and then.

After being introduced to the types of charts, especially to the Japanese candlestick, a trader should already know that since the market repeat its movement, certain patterns may appear from time to time.

There are 12 major candlestick patterns: Doji, Gravestone and Dragonfly Doji,Long-legged Doji, Bullish Engulfing Pattern, Bearish Engulfing Pattern, Dark Cloud Cover, Piercing Pattern, Hammer and Hanging-man, Morning Star, and Evening Star.

Doji – displayed as a candle without a body, Doji denotes the indecisiveness of the investors. It means that it may mark an impending reversal if in case it appears on a long trend. Traders must preparer for a major trading decision.

Gravestone Doji and Dragonfly Doji – Both patterns are common before a trend reversal. The Dragonfly usually shows a “T” like candle who has a long lower shadow but has no body and upper shadow. Meanwhile, Gravestone is like an upside down “T” which looks like the reverse of the Dragonfly. It has no lower shadow and body but has a long upper shadow which made it look like an erected Japanese gravestone.

Long-legged Doji – this Doji may be compared to the common type but it only has a longer shadow. It indicates that even if the price movement shows a lot of trading activity, the next direction must still be confirmed.

Bullish Engulfing Pattern – this type of pattern is formed at the end of a bear trend. This chart pattern shows a small black candlestick followed by a large white candlestick, “engulfing” the smaller candle. This indicates that the bull had assumed control on the trend and overcoming the the selling pressure.

Bearish Engulfing Pattern – this is an opposite of the Bullish Engulfing Pattern and are formed at the end of a bull trend. It is displayed as a small white candlestick being overwhelmed by a large black candlestick and is showing that the bear had taken over.

Dark Cloud Cover – A pattern which involves a white candlestick being followed black candlestick. It may be a sign of a future bearish trend.

Piercing Pattern - it is a pattern which involves two candlesticks. The candlestick for the first day is black then followed by a white one on the next day. The opening of the white candlestick is way below the range of the candlestick for the previous day. It will then go up and will close above the half of the black candlestick. It signal the end of a small to moderate downtrend and also the time for traders to open a buy position or close their sell position.

Hammer and Hanging-man – the name of the candlestick depends on its color but has similar formation, a small body with a long lower shadow. A hanging man is a bearish candlestick formed at the end of a bull trend. Meanwhile, hammer is found at the end of a downtrend and indicates that although the bullish investors doesn't have the full control, the influence of the bull is getting stronger.

Morning Star – a bullish candlestick pattern consisting of three candle. The first candle is big black candle located on a downtrend. Meanwhile, next to it is a small white candlestick followed by another big white candle. This pattern denotes that the bearish trend will reverse.

Evening Star - the opposite of the Morning Star.

Venturing on InstaForex | Best Analyst Wins 45 Gran

The year long wait to announce this year's best analyst is finally over. Last November 30,2012, the Analyst of the Year award was concluded and three winners are proclaimed and awarded with the titles and prizes.

The one who claimed the first place this year is Yuriy Zaytsev from Russia. Meanwhile, Gerardo Narciso Palomino from Peru assumed the second place; and Stanislav Polyanskiy from Ukraine holds the third place. Each of them won a managed account worth $45,000.

Though the awarding is still new, it already garnered attention among Forex traders. Not only that, it also lifted the quality of analysis by allowing traders to compare the works of one another. The works which in time will forge the best. Like a tempered steel heated and beaten and hardened with cold water.

Inside Trade | Dissecting a Trader's mind – Dr. Alexander Elder

A great deal of different personalities are attracted in the world of finance. Some are really inclined from the very beginning, but there are those who are just sucked in but still manages to stand out despite unfamiliarity of the field.

Among those who stood tall was Dr. Alexander Elder. The famous financial figure was born in USSR but emigrated to the United States when he was still 23. He graduated from a medical school in his mother country but settled in the US to teach at Columbia University. At first glance, stock trading is really a far fetched career from medicine. Queer as some would say, and an extremely different path which seems to be outlandish when compared with one another. Despite the alienation from his original career path, it's hybrid composition bore to new heights. A combination which allowed him to penetrate the wits of his colleagues and use it to his advantage.

Dr. Elder, being a psychiatrist by profession, was bestowed with the ability to understand how the mind goes. He was immersed on the world of traders which gave him a first hand account and thus permitted him to really understand what's going on inside a trader's mind. His contribution to the industry was delivered through a distinction of traders according to their understanding of the behaviors on the market.

According to Dr. Elder, the three classification of traders are:

1. Traders who understands the concepts and details of Technical analysis but cannot decipher the traders' motives behind it.
   
   
2. Traders who realizes that the technical analysis will not suffice to ensure success.
   
   
3. Traders who understands that in order to be successful, control and money management are the key to victory rather than the statistics from the market.

Inside Trade | Trading on Christmas

As the birth of Christ is fast approaching and people are now too busy shopping for all the things that they needed in preparation for the much awaited event, Some questions might pop up to the fickle minds of newbie traders. If this will be your first Christmas as a trader, you may be wondering if the markets are open during this time of the year.

The answer is yes. But if in case you have plans to trade during the yuletide season, there are some point that you must take note of.

Brokers

Although most brokers allow trading during this time of the year, there may still be some who would stop its operation to enjoy and celebrate Christmas. No one can blame them since it's just normal for humans to stop working once in a while and enjoy life. Spending sometime with their children and relatives or escaping the cold breeze by taking a vacation in a warm island somewhere in the Asian region. If in case your broker's like that, maybe you should too. It won't hurt if you leave trading for a while and just come back tomorrow.

Movement

After successfully entering the market, your instincts may tell you that something isn't right. Something's unusual about the market. Guess what? You're right! During this season wherein most are not working, the economic activity slows down. If there isn't much economic activity, expect that the market movement would be limited.

Spread

Since the movement are limited and only a few are trading, you may get the idea that spread will increase. Why will it increase and how much? Due to the limited number of traders who are working, only a few may agree upon the value that they want to sell or buy the currency of the other party. Often because of this, the spread size becomes triple than the normal, making it really difficult for traders to catch a profit which is aside from the limited market movement.

So in the end, I am advising you to just spend your time with your love ones because even though you have the money that the world can offer, it cannot buy the time you traded with currency trading. Merry Xmas!

Inside Trade | I got 'ya partner! - Choosing the Right Broker

Nowadays, it's really hard to know who are trustworthy and who are not. Most especially that many are now living in a virtual world wherein you could become whoever you want to be. Claim to be a rich man even though your poor or pretend to be normal joe even if you're a millionaire in real life. My point is, it is quite hard to figure out which is which. What more if there are money at stake?

But that doesn't mean that you cannot hand out a little trust. You could still entrust your money to someone but just be sure that you're in good hands. Dishonest brokers are abundant in the net, wolves among sheep as they say. I cannot deny the existence of those ill intended brokers that are just pretending to be catering wonderful service but in reality only intends to steal your money. Good thing that there are some indications which gives a clue to separate the good ones from the rotten ones. Here are some of those clues to help you.

Communication

Honest brokers are always open for communication. They make themselves visible and reachable either on their support service or through their online and offline representatives. Forums usually have a section for traders to talk with the representative whenever they encounter a problem or have some complains regarding the services of that particular broker. If in case you can't see signs of their representatives, then better think twice before opening an account with them.

Representative Offices

Representative offices gives assurance to investors that this broker will most likely not run away with their money. It is also a sign of boldness from the broker that it is not afraid to show itself to the public. Aside from that, it also mean that their clients may at anytime go to their office and complain face to face.

Transparency

If you've got nothing to hide, why be afraid to show to your client what they needed to see. If a broker discloses a suspicious information then it may be a signal that something's not going right.

Right credentials

Credentials aren't only used as an ornament. It also gives security that other people recognizes the capability of the broker. If there is someone who could vouch for them, then it is a good sign that their are words are not weigh with air. like they, "words are still words until it is proven."

Venturing on InstaForex | Another Lotus

Last May, the Lotus Evora was bestowed to the winner of the Fast Ride from the Best Broker campaign. Traders were awed as the sports car was handed down to its new Malaysian owner. I bet some were dismayed and some are still hopeful for the sports car. Worry no more because if you missed the chance to grab one of those mouthwatering give away sports car then just try again your luck this year's Sports Lotus Is Your Trade Bonus campaign.

The campaign which raffles the elite sports cars from the British car producer – Lotus, and is now open to traders who has a live account with InstaForex. Traders must only deposit an amount of not less than $1000 to his/her account and register for the campaign. Meanwhile, InstaForex Club member is only required $500 deposit. The duration will be from June 25, 2012 up to June 25, 2014. So there's still plenty of time to join and participate in this wonderful campaign.

The winner of the campaign will be drawn using the same procedure used in the previous campaign. For the benefit of those who are still new to the campaign, a number is given to every participant of the campaign. The number is called Lotus Number which serves as their raffle ID. At the end of the campaign, a random number will be generated and will declare the winner of the brand new sports car.  

Inside Trade | Economic Calendar

Ever heard of the term “economic calendar”? If in case you haven't, allow me to inflict the idea. Economic calendar refers to a list of scheduled economic events and the time which it is expected to happen. It is a calendar of various economic activities which specifies the nature of the event and it's scheduled release or commencement.

For the benefit of everyone, most macroeconomic indicators has it's own release schedule which allow traders to predict it's effect on the market. The GDP, CPI, PPI, Inflation rate, etc. are just some of the macroeconomic factors that are released on a regular basis.

However, it's not only the economic indicator that you may include in your calendar. Huge issues, like Fiscal cliff or Euro crisis events, may also be included on your calendar. Though theses events may not be expected at the start of the year, some of it still have a definite schedule and may play a significant role to your analysis. Poll results which has a scheduled released may also be mentioned in here.

Venturing on Forex | InstaForex Great Race 2013

Start your engines because the race is about to begin! InstaForex company is glad to welcome you in the opening of another high speed trading season of the InstaForex Great Race 2013. Another thrilling season of fastest trader is already at hand and all are summoned to participate in this famous chase.

The thrilling race has already been made as a tradition as years are being added to the string. Attracting thousand of traders every year to compete and show what they're really made of and if they have what it takes to be the fastest among the rest.

The contest is open to any client of InstaForex who has a demo account regardless of their trading experience. Each has it's own equal to scramble against the odds and claim a piece of the $55,000 dollar prize pool. The first leg has already begun last December 10 2012 and will last until February 1,2013.  

Inside Trade | It's Time! - Entering the market

Recently, I managed to succeed in catching a few profitable trades which somehow boosted my ego. Highly acclaiming myself for such small victories, I recklessly opened trades thinking that I would be able to wield the market at my whim. I was wrong.

My haughtiness tolled me losses more than those of my little achievement, up to the point wherein my capital was threatened. It's a wake up call, a slap back to reality in which reminded me that almost everything must be accounted for, including the right moment.

Yes, almost every second is an opportunity waiting to be converted to profit. But there are moments that are far more profitable and far less dangerous than others.

Against the many

If you're familiar with the concept of demand and supply, you may observe that it is also applicable in Forex. The supply and demand affects the price in a way that it may denote if there is an impending reversal lurking around the corner.

How to successfully ride it?

Simple, go against what most are doing but do it in the right moment. In traders term, wait for a reversal or retracement before opening a trade. That way, you could earn more without worrying that the trend might change soon. Just imagine you're on a hill with a bike. You won't have to worry about your speed if you're on top, right? You could smoothly go down if everything is set and ready. Just braced yourself from the impact and be sure that you won't fall on a cliff.

How would you know that it's time?

There are tons of indicators out there, but I would recommend oscillators to do the job. If the indicator is already near the safe line, 70 and 30 value for RSI, then ready yourself up because it's almost time. Once you're in, set a TP and SL on a balance so that you could ride it smoothly and safely.

Inside Trade | Time Management

“Time is gold.” We've heard it most probably a gazillion times already, but then again it teaches us to cherish one of the most important things in life. Time.

Time is really important. It's something that we can't bought even if we have all of the money in the world. It's something that if wasted, it cannot be returned to us no matter what. It's not something that we could save for later because it would continuously push through regardless of anything that might happen. But you know what? It's what we do with the time that makes it very important.

Since time is a very valuable asset and wasting it would most probably the last thing that we wanna do. Not to mention that it may also be the one of the most unreasonable crime for ourselves. Better allocate it in the things that we deem important. Use it wisely every moment, like it was the last penny in our possession. Here are some tips that may help us effectively manage this valuable resource.

Make a schedule and stick with it

Although being spontaneous makes our lives a bit exciting, it wouldn't hurt if an activity schedule is already laid for the day. Some of our colleagues, most especially those with short and super short positions, tend to spend the whole day trying to earn from every pip. Occupied from dawn till dusk or dusk till dawn. They seldom take a break to inhale a deep breath of fresh air or stroll around the corner to appreciate your surroundings.

But in case your gonna devise your schedule, just be sure that your schedule has a little room for unexpected commotions. Make it not too tight but not too loose.

Know what's important

Traders sometimes forget that there are far better things in life than earning profit in the market. I'm not saying that we refrain from trading, I'm only pointing out that we should plan everything out so that we won't be glued in front of our computer the whole day, watching the market instead of watching our kids grow. Time is really flying very fast and one day that you may be surprised that you had spent almost all of your life monitoring the changes in the market rather than the changes of people around you.

Inside Trade | Scalping

The very first strategy that most traders will most probably learn is to ride a very short momentum. It means that they would close the deal once a profit shows itself. Since they are still testing the waters, cautious ones would immediately closed their deals. Greedy ones would most probably see their trades through until it reaches a loss, hoping up to the last minute that their luck would suddenly turn the situation around.

From the above mentioned concept, scalping was formed. Scalping or sometimes pipsing is a strategy meant to open very short deals intended to catch only small profit from fluctuations. It is expected to only last a couple of minutes and though the profit might be insignificantly small at first glance, it will be compensated by the number of deals. The profit is accounted at the end of the day, balancing the number of deals which resulted as a loss over those that gained profit.

The Pros and Cons

Scalping is a strategy that even those who had just started trading can employ. It won't need any deep understanding of forex, thought it would be of great help, in order to carry things out. It also won't need any indicator to aid you if whether it's time to open trades or that a reversal will soon take place. A simple yet dangerous strategy.

Seldom brokers allow this strategy and traders caught engaging on this activity usually suffer losses due to a sudden termination of deals. Not only that it was reprimanded, the risk is also high because of the number of trades which usually accumulates to hundreds per day. The emotional factors also comes in because often traders only trade with their instincts which may make them prone to close their deals to soon.

Venturing on Forex | Intraday Options

Options by definition is a type of arbitrage transaction which has specific terms and conditions that a trader may fulfill in order to gain profit. It's like making an agreement with a person and if in case you managed to honor what you had agreed upon, you would be given a reward.

InstaForex offers this kind of transaction in a more comfortable and easier way. It is called Binary Intraday Options service.

Binary Intraday Options service is an option service which is only offered by InstaForex. Intraday offers short and long positions on 11 instruments with a minimum option value of 1 USD and a maximum value of 1000 USD. If in case the trader fulfills terms and conditions of the contract, the opening price is lower or higher than the closing price, he/she will gain profit.

Intraday Option to Increase

This kind of option is conducted by predicting that an increase will happen on the currency rate between two time periods within a day. For example, you predicted that an increases will take place between 1200 and 1700 and you waged for a 100 bucks. If the closing rate is higher than the opening rate, value increases, then you will gain a profit

Intraday Option to Decrease

This kind of option is conducted by predicting that a decrease will occur on the currency rate between two time periods within a day. For example, you predicted that there will be a decrease between 1400 and 1600 and you waged for a 500 bucks. If the closing rate is lower than the opening rate, value decreases, then you will gain a profit

Profit

How to calculate profit? Simple. Just multiply the amount that you waged in to the price-to-earnings ratio, which is 1.8, then subtract it to you wager.

Profit = Amount * 1.8

Profit = 100 USD * 1.8 – 100

Profit = 180 – 100

Net profit = 80 USD

Forexpress | The One Million Mark

“InstaForex Company is happy to announce that the number of company's clients reached a landmark figure! Now more than 1,000,000 clients prefer InstaForex to other companies!”

The continuously growing InstaForex community has now reached a new height, imprinting their place on history, and soaring to a new level. As of today, InstaForex has now an outstanding one million customers who putted their trust on to the hands of the best broker in Asia.

As relayed by the company, this new mileage of success wouldn't be achieved without the participation of its dear partners and the trust given by its dedicated clients. In the same statement, they wanted to extend and express their gratitude by continuing its effort to hone the comfortable and fruitful client-company relationship. “We do everything to make your cooperation with InstaForex comfortable and fruitful.”

The trust and confidence of clients, caressed throughout the years, are regarded by the company with great importance. It was and always will be a treasure of the company which it will carry as it travels to a much greater height in the future.

Inside Trade | Back to Basics – Demand and Supply

The extensive involvement of economics in the Fundamental analysis makes it a very essential topic for one's understanding of Forex. Moreover, its concepts are exemplary vital for forecasting the price of a currency. But before jumping in to the macroeconomic indicators of Fundamental analysis like GDP and inflation rate, better embrace the more basic concepts first – Supply and Demand.

Supply and Demand are basic concepts of microeconomics taught in college. But what we were taking for granted back then, especially if you're not business major, may very well be needed if you want to engage into trading.

Supply

Is a measurement of the quantity of a particular item available on the market within a particular time. It mainly depicts the availability of a good in a market. The larger the supply of a particular good is, the lower its demand thus lowering its value. Meanwhile, the lower the supply of a particular good is, the higher will its demand be thus increasing its value.

Demand

It is a measurement of how much quantity of a particular item that people are willing and able to buy. The scarcity of a particular item leads to an increase of value mainly because many are willing to buy but only few are available. On the other hand, the fewer the people willing to buy that particular good the higher will be the supply available on the market which would lead to a decline in its value.

Let us make an example. Imagine we are on a wet market and you want to cook a special dish for your love ones and its main ingredient would be prawns. Due to a storm, the supply of prawns are quite limited. Since the supply is limited and not everyone can buy it, some would be willing to buy it in a higher price than the usual just to acquire it. It will then make a chain reaction which will lift its standard price. Meanwhile, due to a high demand of prawns the fishermen were encouraged to look for prawns to gain a huge profit. But since most fishermen has the same idea, the supply of prawns continuously increased and resulted to a surplus. It then resulted to the decline of the price.

How will we relate this concept to Forex trading?

Let us substitute the prawns, given in the previous example, with a currency. Imagine you are an investor and you're planning to establish a business on a very promising country. Since there are many investors who have plans similar to yours, the demand for that currency increases leading to a limitation in its supply. As previously stated, the preconceived effect will be an increase in the currency's value, thus providing a significant pull in the price's tug-of-war.

Since this scenario, though essential to traders, is quite difficult to know. Certain signals and tools have been derived to assist traders in determining this factors. The support levels determines the demand of a particular currency while the resistance levels denotes the availability of supply. Furthermore, Oscillators signals if the pair is already overbought or oversold which means that there is either a scarcity or surplus of supply.

Inside Trade | The Cons of News Trading

Almost every beginner trader regards the news, especially those big ones, to be a great opportunity to profit. Yes, we cannot deny the sudden movement of a currency whenever a big news has been released. But have you ever considered its effect in case it didn't turn out the way you wanted it to?

Let's give a comparison. For example, you're strolling around under the scorching sun and enjoying the scenery of beach. While you were walking, you had observed that there were some individuals who are still learning how to surf and had just dipped in to test the waters. What would happen if those novice surfers encountered a really huge wave? The main tendency for those surfers to ride the huge wave successfully would be very slim, right?

It's almost the same with the novice traders. The news is like the huge wave. It's a great opportunity to surf but inexperienced surfers, who still doesn't have the capacity to handle the huge wave, might be tolled dearly. Big news requires a deal of knowledge in economics and latest in order to be ridden successfully.

The interpretation of its effect on the value of a currency may differ depending on the knowledge and experience of the trader. Often, newbies only look to its immediate effect and only focuses on a particular currency. They usually fail to perceive its chain reaction and ended up in a jumble.

What advice should I give to the newbies? Be the observer first. It wouldn't hurt if you'll read and observe first. Learn how things would go and never jump in without the necessary knowledge.

Don't risk losing your capital even though you may be sure the effect of an incoming news. Try to forecast its effect but restrain yourself from trading. Observe if it would turn out the way that you had foreseen it and do this procedures a couple or more of times to prove that it wasn't just sheer luck. In case your predictions were correct, you may now proceed to devising your game plan and hope for the best. Good luck.

Inside Trade | Fibo Exapansion

After discussing how Fibonacci retracements helps in determining the support and resistance level, we will now tackle our ideal level wherein we could at last hoard our much awaited profit.

Fibonacci expansion's main job is to specify up to what value would the movement would last. How do we do it? It's actually simple but you must first know the concept of Fibonacci retracement. If you could remember, the main concept of fibonacci retracement is that before a trend move in its main direction, retracements could be formed in between. In simpler terms, support and resistance are always present in trends.

Fibonacci expansion may also be used to predict areas of support and resistance. But it goes beyond the 100% that Fibonacci retracement offers. It is an extension of the retracement which may give the trader an idea on where would it be best to take your profit.

How to apply it?

First and foremost, analyze the latest movement of the market and seek for signs of retracements. If in case the current movement doesn't display a retracement or it is still not yet complete, wait first for a complete retracement to materialize. After that, you can now apply the expansion by mimicking the recently completed retracement.

The FE levels 61.8, 100.00 , and 161.8 will then appear and will serves as your guide for your TPs.

Inside Trade - Skewered For Good

Andrews Median Lines or more popularly known as Andrew's Pitchfork, is a technical indicator which aims to determine the possible support and resistance levels.

The indicator is named that way because a pitchfork like figure will be displayed after it is applied in the platform properly and successfully, skewering the chart with three parallel lines. The three parallel lines which made up this pitchfork are the median, resistance, and support lines.

It is plotted by placing the points on the three most recent peaks or troughs. The first point will extend as the median line while the other two points will interchangeably the support and resistance line depending on the market movement.

Inside Trade | Holidays

According to Fundamentalist, world occurrences dictate the values of currencies. Entangled and struggling between the optimistic and pessimistic forthcoming while dictating its imminent effect, as so they say. Absurd maybe, but occurrences is not only limited to the scheduled and unscheduled political and economical activities. It also includes the usual activities like holidays.

How does it affect Forex?

Tackling its significance in the market gives a better understanding on the market behavior. Basically, holidays will cause a slowdown in the economy because almost everyone is not working. Even most traders would most probably want to spend their time and hard earned money with their family. As a result, it decreases the trading activity in the market thus limiting the market volatility in the process.

But there are still those who are willing to work despite the free day. Some traders still engage in trading in this times but it's dangerous and often end up on the losing side. Almost all trades are only carried out using the majors and using exotic ones could be suicidal especially if the weekend is already at hand. Also, most trades are conducted in really high volumes because the movement is limited.   

Forexcast | EURUSD November 28,2012

The positive news from both currencies wrestled its value. The finalization of the deal to save Greece from its looming debt has created optimism for euro investors. Meanwhile, the same effect was also achieved after the U.S. elections was favored by most Americans a few weeks ago. Today, a correction started at around 1.2970 which paved to the formation of a head and should. Traders should expect the correction to last until 1.2900 value but will soon rise to continue its upward way. 

Take note of the Support level  23.6 which is slight above the 1.2895. Traders can ride this short plunge for today but don't put your TP far below 1.2895 value because most probably it won't be hit. The pair is still not been overbought thus the trend reversal is still nowhere in sight.  

Venturing on Forex | ForexCopy Follower

There are numerous reasons why investors uses the Forex copy system. But the bottom line is that it is comfortable, instant, and most importantly secure way to put your money into work. Any person with the guts and wits to invest in Forex doesn't have to go through the rigorous learning phase anymore. With the help of the system, you can skip all of that without risking your capital. All you have to do is follow the simple steps to enroll in the ForexCopy system as a Follower then viola! It's good to go.

Steps for ForexCopy Follower:

1. register a live account
2. register in the ForexCopy system as a Follower.
3. Choose from the monitoring list and read the copying terms of the trader.
4. Follow the trades

ForexCopy Follower is the one who is copying the successful trades of a ForexCopy Trader. They can legally copy the trades of other persons and at the same time choose which trades to copy. It diversifies the risk because you can choose to copy from different traders depending on your own preference. They can also closely monitor their investments and select which mode of payment they want, either per day or per commission.

Forexcast | EURUSD November 26,2012

Williams' alligator is hunting good this week and no signs of corrective waves is at sight. As expected from our previous forecast last November 24, the market will still be trekking the bullish trend giving a definite signal for buy orders.

I recommend traders to first go short on buy orders for a good 30-50 pips because even though it's definitely a bullish trend, an inverted head and shoulders may be formed in the near time and fluctuations that comes along with it. Better let you're positions breath by providing the TP and SL not to close but at the same time not to far from the current value.

For long positions, better ride the bull trend for quite some time but watch out for the end of second wave which will most likely stop on or before the 1.3160 mark.

Forexcast | EURUSD November 24,2012

The EURUSD pair penetrated its line of resistance for this week and will most likely pursue its current trend. The last influence of the bearish trend was shrugged off last November 13 and any doubt for the reversal has been cleared.

Furthermore, the bullish trend for the second wave is still strong and may continue for quite a while as indicated in the RSI below. I advised the traders to go on buy this week but be wary and closely manage the TP and SL orders because it may not push through the next resistance level marked above the 1.3155 value.

Inside Trade | Will Yuan take over the Greenback?

As the Chinese stunted growth was recently resumed, rumors about China overcoming the United States in the near future had been recently spreading. Indications are everywhere, especially after its recent aggressive movement in their territorial dispute. Its unyielding claim against five neighboring countries displays its capacity to overpower the other claimant despite its advantage in number.

The continuous population increase is one of the major driving force for its economic growth. At present, they are now ranked as the second largest economy next to the United States. They are widely popular due to their cheap labor force which is very attractive to investors. But there are things they have to reform if they want to take the pace into the next level. Corruption is widespread, greatly damaging its citizens and industries. The lack of a unified voice may also be added to their things-to-do list as well.

In my opinion, if however the predictions were true. It wouldn't happen in a few decades and maybe even more in a couple years. It will take its time and so must us. I think it is still too early to sell all our dollars and start investing in yuan. Its better if we lay back ourselves for the meantime and watch as history unfolds itself.  

Forexpress | Positive Outlook for the US Economy

After President Barack Obama's reelection 2 weeks ago, most Americans is now sharing the optimistic view to the United States economy in the near future. Signs of a rising economy is already stepping in one-by-one as the leading economic indicators are rising. The jobless claims and gasoline prices was also reduced last week while others such as home values and job growth is starting to propel upward.

“ The outlook is better than it has been over the last three or four years – that's what Bernanke told us yesterday,” according to Harm Bandholz, the chief U.S. economist at the UniCredit Group in New York.

The S&P 500 Index also ameliorated from what it has been four days ago with a 0.2 advance. The gasoline which is a very important commodity dropped its price per gallon at $3.41.

Forexcast | EURUSD 11.21.2012

After the hanged man showed itself yesterday, the confirmation for a reversal has been fortified. The trend which is now on the bearish move will most probably break the first layer of support. Traders may ride the down surge for a while until before the 1.2640 mark which may be the testing ground. According to my wave interpretation, the second wave is just forming and may break the 1.2910 value before it is done.

R1: 1.2910
R2: 1.3175

S1: 1.2750
21: 1.2640

Inside Trade | Unsung Side of Short Term Trading

Many traders nowadays are involved in short term trading. The technological advancement permits us to do such and even birthed to a new genre this past years. But many may not notice one thing obvious about this type of trading. The lesser the time, the lesser the profit.

In our orientation, we may have been told that short term trading involves a lot of trading opportunities because every pip can be a profit waiting to be caught. Like fishing, wherein you may dip your bait in the water every now and then catch some small fry because a lot are passing by. Yes, I think it is true but have ever considered the volume of the catch at the end of the day. Of course you may profit on most trades, but have you put into the equation the unprofitable ones?

In reality, a big catch may take a while before it may be caught. It needs time and skills to earn huge. There's no shortcut to success. Even if you really did great on a day, how about on the morrow? Can you still repeat it? What I'm pointing out is that the shorter your time frame is, the more limited you're from profit. Most successful and seasoned traders knows that the market may only move significantly small for few minutes but as time goes by, its movement also widens. A larger movement also means a larger profit. So before trading short, think again.

Venturing on Forex | InstaForex Catalog

Most traders and analysts needs a collection of knowledge to refer whenever a question pops out of their mind. Though there's a blur distinction of truth in the internet, some websites provides a clue or a hint of which is reliable and which is not. The trick to solve it is quite obvious and may be found on academic researches; abundance of sources.

Comparing one source to another, the truth to the topic may be filtered out like gold nuggets in a handful of river stones. But a wide stream of resources and diligence is utterly needed to carry out such procedure.

To alleviate such conquest for truth, InstaForex decided to make a collection of resources in which traders can refer regularly. Forex Catalogue provides a list of reliable websites contributed by both the company and some concerned traders. Each website is carefully and scrupulously inspected by the specialist of the company before it is included in the list. Even though the company cannot fully vouch for the reliability of its contents, shifting from one source to another may narrow down the list.

Inside Trade | Chart Patterns: Head and Shoulders

After discussing about patterns in my previous post, I deemed to go a bit further down the topic by discussing one of the most famous and widely popular pattern – Head and Shoulders.

Head and Shoulders according to my research is one of the most famous reversal pattern. Reversal means that there is a change in the direction of the trend. It is meant to go to the opposite direction of the trend. Head and Shoulders is found on both the bullish and bearish trend but is named differently depending on the current pattern. If in case the trend is bullish, it is called Head and Shoulders Top. On the other hand, if it is in the bearish trend, it is called Head and Shoulders Bottom.

The pattern is composed of three parts: left shoulder, head, right shoulder. A horizontal line is drawn to serve as the neckline for the pattern which makes it similar to a head and shoulders of an alligator.

How it is formed?

The left shoulder is normally formed after a long movement in the market. After its formation, price usually goes to the opposite side until it reaches a value which will reverse it. At this point, the head will be formed as the price rises until it reaches a peak higher than the value of the left shoulder. It will again start to descend until its reversal which will draw the right shoulder. The highest value of the two shoulders are usually the same or almost the same. The neckline will be drawn by putting a horizontal line between the beginning and ending price of the head.

Inside Trade | Introduction to Chart patterns

Charts maps out the past movements of the market. It's like a history book, only it gives a history of prices. As the most famous history phrase goes “history repeats itself,” often true and gives us the vantage of learning from past mistakes without actually experiencing it. The same goes for Forex.

After spending sometime analyzing and monitoring charts, you will most probably observed that some formations found in the chart are often repeating. Patterns as they were called. The patterns may vary depending on the chart that you're using. Candlestick charts have different patterns than those of the bar chart. Through the course of time, numerous patterns have already emerged but those classical ones are the famous among them.

Classical Patterns:

• Head and Shoulders
• Trend lines
• Triangles
• Wedge
• Flag and pennant
• Price
• Broadening top
• Triple top and bottom
• Double top and bottom
• Cup and handle

Some are claiming that they can predict future price movements through these patterns. But the pessimistic ones are rebuking the claim and telling that those patterns are just mere economic illusions. Honestly, I'm really not a hundred percent sure on which is which but I think it's now up to the trader to decide.  

Venturing on Forex | Analyst of the Year

Forex nowadays is gaining its popularity throughout the world. Most educated individuals understand its basic concept but unfortunately, it is not an investment that anyone can enter. There are some who dared to test the waters and failed. Without skills and knowledge of the trade, the chance of surviving is almost to none. But there are those who are employed by InstaForex to aid the less knowledgeable traders in their day to day trading. Individuals who have sufficient knowledge in trading to serve as a guide the clients in their trading decisions - Analyst.

The analysis may vary from person to person, depending on the strategy that they are using. Fractals, Wave, Fundamental and Technical analysis are some of the most common type. But how does a trader discern the best analysis if they are profitable?

InstaForex launched its “Analyst if the Year” award to crown the most able and popular analyst among traders. It is a contest open to all but the participants are mostly professional analyst. It is categorized into three according to years of experience. Premier League, League One, League Two.

Premier League is the category for the analyst whose experience has surpassed more than three years of work in the foreign exchange market. Meanwhile, League One is composed of analyst whose experience is in between from 1 to 3 years. Furthermore, the League Two is made up of young analyst who has less than a year's worth of experience.

The winner of the award will be determined by the number of votes and the category will not matter in judging. So I advise aspiring or professional analyst out there to join and participate in this event because it will not only boost your career, it also have a hefty sum along with it.

Venturing on Forex | InstaForex map

Nowadays,the existence of ill-fated brokers cannot be denied, most especially in the virtual realm. A realm wherein every company may be the master of its own, being able to impose their will to their customers, even with an integrity weighing equal to a feather.

It made every seasoned traders wary and the beginners like sitting ducks waiting to be plucked and shot. Of course there are certain forums or sites that caters to the unheeded complains of the customers, but after visiting some of those self styled website, the rants turns into cliché whose worth is not more than a penny. I guess it cannot be helped if pessimistic investors cannot even deem to entrust their money to a broker whose name have been slightly blemished. But how do we discern the good ones from the rotten ones?

One of the qualities that may separate the true from the false is their visibility. Visibility reinforces a broker's integrity. Doubts are easily erased if someone could continuously answer every question catapulted by its customers. Moreover, if the visibility materializes outside the virtual world. A customer's fears may be put at eased once they have a representative willing to answer their every query face to face.

InstaForex gives this matter an utmost consideration. Its willingness to provide services founded between trust from the company and its customers gave birth to more than 220 representative offices in 31 countries worldwide with its headquarters situated in Kalinigrad, Russia. It is a relief for the customers of the company and serves a sigil for prospective clients. A symbol that this company means serious business and means to forge a long time mutually beneficial relationship with its clients. So if you're a trader who is thinking where you're gonna invest your money, try to research and seek for their real intention first. It might take some time but it will most probably save you from those rotten ones.

Inside Trade | Not your 007 - Bonds

Instrument given by an issuer to the holder; it is a proof that the issuers owes the holder a debt. It obliges the issuer to pay an interest from the debt and the owed principal in the future. The interest is usually paid on a regular schedule and the bond may be sold after the maturity.

When a governments, municipality, or company needs additional money, they will issue a bond. But unlike stocks wherein you're a part of the company, whether it goes up or down, bonds' price are not subject to change. It is like lending your neighbor an amount and he/she agrees to pay the amount in the future together with an interest. The interest which is regularly paid are called Coupons.

There are several types of bonds namely: Government, Municipal, Corporate, and Zero-Coupon Bonds.

Government

Obviously, this are bonds issued by the government itself. They are fixed and usually has the lowest risk among its species because governments are seldom go to bankruptcy.

Municipal

Also called as “Munis,” Municipal bonds are bonds given by the municipality, usually on a resident of the said municipality. What makes this bonds attractive, taking into account that it has a higher risk compared to government bonds, is that sometimes the return from those bonds are free of tax in case the holder is a resident. But please take note that the yields may be lower than those taxable ones.

Corporate

The riskiest among them, Corporate bonds are bonds issued usually by big corporations. It has the most risk because it has a higher chance of a default. If in case the corporation who issued the bond became bankrupt, the amount owed cannot be repaid. But these type of bond usually has the highest yield compared to the former two.

Zero-Coupon

This type of bond is a bit different. Compared to the previous types, this bond does not give a coupon but in return gives a discount on the bond. For example, a $500 bond with a maturity of 5 years is being traded. After it reaches its maturity after 5 years, it may be worth $1000.

Forexpress | Four Years More – Obama

After a close fight with the former Massachusetts Governor, Barack Obama regained his position as the president of the United States. Yesterday afternoon, Mitt Romney gave up on his claim to the presidency in a concessionary speech which congratulated the president and called for the American citizens to unite and help one another.

“The nation as you know is at a critical point. At a time like this, we can't risk partisan bikering and political postering. Our leaders have to reach across the aisle to do the people's work and citizens also have to ride through the occasion.” Romney said.

The fights was outstandingly expensive which involves only a handful of swing states wherein the efforts are poured in. The president managed to win the majority of them such as New Hampshire, Michigan, New Mexico, Iowa, Virginia, Wisconsin, Colorado, Nevada, Pennsylvania, Minnesota and Ohio. Meanwhile Romney only North Carolina and Florida but the later is almost hanging by a cliff.

After Romney's speech and Obama was declared to have his second term, congratulatory statements from world leaders poured in. Many coming from fellow UN security councils and allies.

“I will continue to work with President Obama to ensure the vital security interest of Israel and United States,” said by Israeli Prime Minister Benjamin Netanhayu.

“ (As) a treaty ally and strategic partner of America, the Philippines looks forward to deepening the cooperation between the Philippines and the United States in Mr. Obama's second term,” as relayed on a statement coming from the Philippine president.

Obama will now face issues like whether the Bush tax cuts should expire and many other pressing concerns like tax hikes.

Inside Trade | Simple Moving Average

In one of the previous articles, I had mentioned about Moving average and its kind in general. Now in this article, we will go further down a bit by discussing the easiest form of them all, Simple moving average (SMA).

SMA shows the main movement of the price. The movement are plotted by subtracting the closing price of the current time-frame from the closing price of the previous time-frames which shows the average in a form of a curve line. It's main task is to even the price change, depicting a simpler view on the direction which it is currently tracking on a certain period of time.

Calculation

The calculation of SMA is done by summing up the closing prices of the instrument over a certain number of single periods then divided by the number of such periods.

SMA = SUM(CLOSE, N)/ N

N= is number periods.

Forexpress | Last Call to Victory – U.S. Presidential Election

After Sandy almost lay waste to U.S. northeast, its now time for the two presidentiables to deliver their final blow for the U.S. presidential campaign. As the polls are indicating, the battle between the two is a close one. An almost deadlock, Obama having a slight advantage, hoped to be resolved in the last days of the campaign by both parties. According to reports, even if the voters are not as enthusiastic to Obama compared to the election way back in 2008, he still has a slight leverage to win an another term.

But Romney isn't showing any signs of backing down even a little. Both sides are already quickening their pace to sway all remaining independent voters as they sweep to the remaining key states before handing the final verdict to its citizens. Polls had it that Obama lead 4 percent in Ohio which is one of the key to victory. He also took Virginia and Colorado in small leads but Romney owned Florida by 1 percent.

The outcome of the election, due on Tuesday, will determine America's next move in critical issues such as Iran's nuclear materials and its recovering economy.

Inside Trade | Major Species of Indicators

Technical Indicators are graphic representations that assists traders in predicting future price levels for trading decisions. It is the primary tool in technical analysis whose main objective is to provide information about the current trends, price movements, and even significant price levels like support and resistance.

Often, there are already indicators available in the trading platform that the brokers provide. But there are still immeasurable variety available in world wide web which you can download and instal in your trading platform. Any number of Indicators may be incorporated on chart or opened in a separate window depending on the type.

Trend Indicators – these indicators are mainly dedicated for the prediction of the current price trend and its behavior in the future.

Oscillators – these type of indicators are used to observe if the trend will change or will it still continue its current path. It is composed of two extreme values that defines if the currency is overbought or oversold.

Psychological indicators – these indicators specifies the sentiment of the market participants and their next probable move.

Inside Trade | What's Your Style?

As I read the book entitled “The Game,” a thought tickled my mind. Although the book relays a story which follows the two protagonist, Mystery and Style, in their journey of becoming the greatest pick up artists. It somehow left a question lingering within my fickle mind. What's your style?

It is a question which fits the phrase “easier said than done.” Some of must may instantaneously answer this but it might take a while for others. But as we go along our voyage at the sea of knowledge, we might be able to answer this question with the help of some key factors like financial capabilities, knowledge, and even our very own personality.

My researched lead me to different styles with distinct preferences. But the category seems to be mainly divided into three main groups: short, medium, and long term. Each preferred through the longevity of the positions. It also came into my attention that it sometimes gives birth to sub categories. For example, those traders who holds their position from a matter of minutes to a few days are regarded as short term traders. Further classification of it are scalpers, day traders, etc.

No matter what style you're in, as long as you profit, just continue trading and be yourself. Our constantly changing society births different styles every now and then, and I won't be surprised if ever you found yourself inventing one.

Venturing on Forex | Is a million dollar worth transaction possible?

“We have never seen such trading before and will hardly see soon.” - Aleksey Badjanov, Dealing Department representative.

Most of us would fancy how we would spend a million dollar if we ever got hold of such amount. I cannot deny that it is such a hefty sum and it could sustain every luxury that I have dreamed of. A sports car, a vacation house in a far flung island in a secluded Asian region, a trip around the world, all the beers that I could drink, a non-stop party on my mansion, and even a wine and dine with the rich and famous. All of these and more can be attained with a million dollar, if only I had that sum. Those thoughts linger on my mind as I read a trader's ordeal – Mr. Akhmad Arief.

The initial deposit of Akhamad Arief's account was only one gran. According to the interview, he has been trading for 5 years already and just opened a high risk account with InstaForex last July. His tactics were a sort of one time big time positions, wherein he would choose a high leverage and bet all of his capital with the use of a win-win and risk strategy. The first month of July was in his favor, his account ballooned until it reach the million dollar point. But due to the unpredictable nature of Forex, it popped the balloon into nothing. The second half of July was fatal to his account and wasn't able to save any amount because he was out of the house when the tide turns unfavorable.

It was really disappointing occurrence but our champion is yet to yield. He said that he will try again his luck. Also in the said interview with InstaForex, he gave an advice to beginner traders to learn the basics and don't stop learning new things about trading. Stir your curiosity and always diligently seek for answers in whatever question that may come up.

Inside Trade | Trading with Gold

"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium." -Murray N. Rothbard

Known for its softness and malleability, Gold had been a symbol of wealth, prestige, and power throughout history. A valuable metal which brings fortune to whoever manage to struck a nugget.

In the past, it defines how much a currency may be valued. But nowadays, the game is changing and gold has been forged into new form to adapt the modern times. Though its still holds its former power, it evolved into new heights and became a part of Forex trading.

A safe haven on times of great adversity due to its stability and effectiveness in saving, gold also proves to be a good source of bread and butter for some traders in Forex. It all started after the right of individuals to posses and acquire gold had expanded. After which, it revolutionized gold's role to suit the modern times. It's former function was to serve as a means of payment for goods and services but was molded as a traded commodity whose market is far from the influential grasps of governments.

Gold markets are classified into three types: international, domestic, and black. The prominent international gold market are located in Zurich, Hong-Kong, London, New York and Dubai. This type of gold market usually involve big time banks and companies who specialized in gold trading. Domestic gold markets mainly focus on local investors may be further categorized as open and regulated. Furthermore, black gold markets cater to illegal transactions.

A gold market usually consists of participants such as gold miners, the industry, exchange, investors banking sector, intermediaries and dealers, and bullion market.

Venturing On InstaForex | Forex Forums

“Discussion is an exchange of knowledge; argument an exchange of ignorance.” ~Robert Quillen

One of the basic human function is the ability to communicate. As humans, speaking is a part of our day-to-day activities. Although the urgency to speak may vary in different degrees, it is still something that cannot be done within a day. Moreover, the urgency may be further stirred if the one that we are speaking with, shares the same interest as ours.

In the advent of technological advances, various speaking venues emerged to fill up the call to communicate online. Forums, blogs, and chat rooms took the role to gratify the basic need.

As for traders, they also need an avenue in which they can speak out their minds and receive feedback from others. A forum in which a collection of different individuals are bounded by a single cause, discussing topics about trading.

At present, there are two forums that are recommended by InstaForex: forum.instaforex.com and forum.mt5.com.

Forum.InstaForex.com – a place wherein potential clients of instaforex may visit to get a hold off reliable information about the company. It will also serve as the meeting place for the current clients of InstaForex.

Forum.mt5.com – a forum wherein clients from different brokers meet up and discuss recent news, forecast of possible movements, or simply a place wherein their ideas and queries may materialize for others to hear and speak of.