Large Round Figures | ForexGen

Large Round Figures - Forex Trading, Currency Forecast

Many traders, from the individual speculator to the large fund will focus on the large round figures or round numbers when applying their analysis to the FX-market for a number of reasons. Option traders tend to select these price levels whether their exercising American, European, or Exotic options, as well as the placement of protective stop orders.
For that reason, the 'large round figure' such as 1.3100 or 1.3250 tends to carry a greater weight of importance. However this can be deceitful as the market often times will spill over to trade slightly above or below a price level of importance. For that reason we should naturally expect the ultimate highs and lows to rest at times slightly beyond these areas. For example, we can see the following (15-minute) chart, the EURUSD has recently found major turning points very close but not exactly on the 1.3100, 1.3200, and 1.3250 figures respectively. In fact notice, how each turning point was established within 15-pips of a figure. We should suspect the market as it approaches and fails to break beyond a large round figure, even if we cannot take the exact figure literally.

ForexGen | Candlestick Charts

Do Candlestick Charts Work on Forex Charts? - Forex Trading

The limitations of candlestick patterns in Forex
The quick answer is both "Yes" and "No".
Candlestick charting was first developed by Japanese rice traders and can be traced back several hundred years in the 18th century. According to Steve Nison, candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that is used today.
In general Candlestick charting developed in the futures and stock markets and thus many of the patterns or techniques are suited more to these markets. Many still claim that Candlestick charting can be applied to the Forex market but there are limitations when the technique is used in Forex charts.
Why is this case?
Well, the most obvious difference between futures and stock markets compared to the cash Forex market is the fact that the former two are session based and only trade for specific time periods during the day. The cash Forex market on the other hand is a 24 hour market and runs for just over 5 days beginning in New Zealand on Sunday evening and runs through to New York close on Friday.
The impact of this difference has a marked impact on the range of Candlestick patterns that can be applied to the Forex market. A large number of Candlestick patterns are based on the relationship of the prior bar's closing price and the new bar's opening price. In the futures and stock market these are frequently totally different as prices gap over a closing period in particular. It is even possible for these markets to see a day's range gap up higher on one day and then gap down lower the next to leave no overlap of the bars.
This just does not happen in the Forex market. The most that does occur is that Monday's open is different from Friday's close and can cause a gap. It doesn't occur that frequently though.
From that perspective it will mean that many Candlestick patterns just simply do not occur in Forex.
So what are the patterns that can be seen in Forex?
A simple response is "all those patterns that are not based on prices gapping."
Lists of these are:
Reversal Patterns:
Hammer & Hanging Man
Bullish & Bearish Engulfing
Bullish & Bearish Harami
Bullish & Bearish Harami Cross
Inverted Hammer & Shooting Star
Three White Soldiers & Three Black Crows
Advance Block
Three Inside Up and Three Inside Down
Three Stars in the South
Stick Sandwich
Continuation Patterns:
Rising Three Methods & Falling Three Methods
Bullish & Bearish Three Line Strike

ForexGen | FOREX Trading Software

If you wish to have success in FOREX trading, the most important thing knows when to get in and when to get out as it will make the difference between huge profits or heartbreaking losses. There are many services available providing signals, and for a modest monthly fee they'll send you real-time signals letting you know when to buy or sell a currency pair. There is also Forex trading software that can generate these signals for you.It is best if you'll be able to identify trends by yourself without having to rely on a signal provider, but this will take time to gain experience and to master the trade. In the meantime, you can make use of some personal FOREX trading software to aid you in your FOREX trades.As mentioned above, there are plenty of signal providers out there, but finding a reputable one can be a tricky task and can cost several hundred dollars per month. Fortunately there's an alternative FOREX trading software that you can download and run on your home computer and will cost much less.There are two pieces of Forex trading software out there right now that are quite popular and offer excellent FOREX signal notification, so no matter if you're a short term trader, swing trader, or long term trader one of these FOREX software programs should be part of your trading arsenal.FOREX Killer is a FOREX trading software program designed to run on Windows. FOREX Killer can take data from any FOREX broker that can export historical data in a .csv format. Once imported into the program, FOREX Killer allows the user to select a time frame and currency pair. Enter your desired stop loss and take-profit level and start the calculation. FOREX Killer generates two sets of signals, short term and long term, and lets you know whether you should buy or sell based on current market prices. This particular FOREX software program supports most of the common currency pairs, as well as gold, stocks, and futures.The next FOREX trading software program to consider is called Prophet1 Expert Advisor. This program bases its signals on two popular indicators, moving averages and MACDs. This allows the user to make use of this software for day trading purposes, but it's certainly not limited to that time frame. Based on back-testing this FOREX software program boasts an admirable 90% win rate, and this is using its default settings. As with FOREX Killer, alerts can be sent via email or to your cell phone.No matter what Forex trading software you end up using, don't rely on it solely to make you money. It can be a powerful tool to help you succeed in FOREX trading, but it's very important that you take the time to educate yourself on the inner workings of FOREX technical analysis. It can seem daunting at first, but once you understand how signals are generated you'll be in a much better position to adapt to the ever-changing world that is the FOREX marketplace.