Videos uploaded by user “Capex Forex Trading”
5.6 Trading Average True Range (ATR) instructions
http://www.capexforextrading.com/forex-technical-indicators The average true range is solely used to measure volatility. It is because of this that it can be used in two ways: 1. Low volatility measurements can be used to get into a new trend 2. We can use ATR to set a stop loss relative to the currency pair's specific volatility. When getting into a new trend the first factor we need to consider is low volatility which is shown by the Average true range. When trading the 1 hour time frame a good indication level from low volatility is the 0.0006 level. Once we have a reading of that level we have to use 2 simple moving averages for a further confirmation - they are 8 and 21 SMA. Now, we are looking for prices to be above the 8 SMA and we also need both averages to cross-over. Once this is complete, we have a good signal. For the final confirmation we reference the H4 time frame to see if prices are above 8 SMA and if they have both crossed over. If this is true, we have a confirmed signal for entry. When using the Average true range to set a stop loss we always set the stop loss 2 ATRs away from our entry price. So, if the ATR reading was 0.0014, we multiply it by 2 to get 0.0028. We then set the stop loss 28 pips away from our entry price. This is the best way to set a stop loss because it is relative to the currency pair's volatility. This also gives the prices enough room to move around and not stop out early or too late.
Views: 57150 Capex Forex Trading
6.1 Difference between ECN, market makers and STP brokers
Find the right Forex broker here - http://www.capexforextrading.com/forex-brokers Explore our Forex brokers video tutorials here - http://www.capexforextrading.com/forex-brokers-training In a perfect world the cost of buying and selling currencies would be the same, no matter which Forex broker you use. Unlike the stock market where we get heavy regulation and where stock prices are derived from a single exchange, prices vary from different Forex broker platforms. The reason why is because currency prices are derived from the Interbank market which is a conglomerate of banks and hedge funds that provide prices to various Forex brokers around the world. The better the relationship between the Interbank market participants and the broker means that the prices are cheaper. We expand on this in the video tutorial whilst also describing the main difference between ECN, market makers and STP Forex brokers. You may be surprised how some brokers take you for a ride and it is this lack of knowledge that they thrive on when trying to get you to sign-up as a customer.
Views: 36783 Capex Forex Trading
7.1 How to use and calculate risk/reward ratio for trading
http://www.capexforextrading.com/money-management There are many traders who generate more wins than losses but still find themselves in a losing position for the given time period. This is a classic example of money management gone wrong. In other words, they do not calculate and apply the correct risk/reward ratio to their trading strategies. In general terms, a 1:2 risk reward ratio should be used which simply means that your potential reward is two times bigger than your risk. This is the correct way to trade. Professional traders do recommend a 1:3 ratio for obvious reasons but it is up to you and your trading style which ratio you should use. In our video tutorial we describe and analyse an example of how risk/reward should be used but if you have any questions or comments do let us know.
Views: 34921 Capex Forex Trading
3.0 Uptrend and downtrend explained
http://www.capexforextrading.com/forex-market-trends-and-movement When the Forex market is trending, it present great opportunities for traders to benefit from the movement. The momentum gathered at the start of a new trend can carry a trade for minutes, hours and even days, depending on its strength. In this Forex training video we discuss up-trends and down-trends and explain how each trend is formed. Keep watching our playlists to learn about the Forex trading strategies that allow you to get into these types of trades.
Views: 22989 Capex Forex Trading
2.4 Market order, buy limit, sell limit, buy stop, sell stop, stop loss and profit targets
http://www.capexforextrading.com/forex-brokers-software Different types of trading scenarios require different types of orders. In this Forex training video we discuss the main order types that can be executed in a Forex chart. Other than the market order, all other order types are pending orders. This means that entry price levels are defined before the market reaches them. Once that price level is reached the orders are automatically executed.
Views: 70152 Capex Forex Trading
1.3 Technical and fundamental trading defined
http://www.capexforextrading.com/forex-trading-basics Most new traders struggle when deciding to become a technical trader or a fundamental trader. This is why in this Forex training video we have outlined and defined the main difference between both trading styles; with trading examples for each. If you still cannot decide between the two, then there is no harm in becoming both.
Views: 29194 Capex Forex Trading
6.4 Difference between fixed spreads and variable spreads
Forex brokers list - http://www.capexforextrading.com/forex-brokers Browse our Forex brokers video tutorials - http://www.capexforextrading.com/forex-brokers-training Every time you trade you will see two prices – one is a ‘sell’ price and the other is a ‘buy’ price. In the norm they are called the ‘bid’ and the ‘ask’ price. The difference between the two prices is called the spread. If you are using a fixed spread Forex broker then the width of the spread will not change, no matter how volatile the market is. However, if you are using a variable spread Forex broker then the spread will widen out and shorten in depending on how volatile the market is. In periods of huge volatility (when major news or data releases come out) we tend to see spreads widen out. Most Forex brokers do this in order to decrease their risk. However, there are some Forex brokers that ‘do this’ on a much bigger scale in order to hunt your stop. At periods of high volatility they widen out their spreads so much that the end result is most likely to be a stop loss hit. In other words, they create unnecessary market spikes and drops that literally take traders out of the market. There are ways to ensure that your Forex broker is not trading against you in this manner so watch the full video to find out how.
Views: 7628 Capex Forex Trading
5.7 Momentum Indicator trading instructions
http://www.capexforextrading.com/forex-technical-indicators Momentum indicator is a 'must' for any trend trader. The reason why is because it measures strength and weakness of a trend. Therefore, it provides us with good signals for entering and exiting a trade. The momentum indicator is a 'leading' indicator which means that it works slightly ahead of prices. This means that it can be used to recognize trends before they actually form. 1. When the momentum indicator is above the centre line traders should look to get into a up-trend. When it is below the centre line, we should be getting into a down-trend. The only factors you must remember is not to trade in the opposite direction i.e. trading downwards when the momentum indicator is above the centre line and vice versa. 2. We can also use this indicator to trade divergence between itself and prices. So, when prices are making lower lows and the momentum indicator is making higher lows, we have divergence. It is here that we look to trade in the upward direction because the indicator has shown us signs of a weakening down-trend in the price chart. 3. The last way to use the momentum indicator is to wait for a breakout. After drawing a trend line in our price chart we would draw the same line in the indicator window. Once we have a breakout in both prices and the indicator, we can take a trade. Watch the full Forex training video to see how this powerful indicator can be used.
Views: 41799 Capex Forex Trading
5.9 Relative Vigor Index (RVI) trading instructions
http://www.capexforextrading.com/forex-technical-indicators Relative vigor index (RVI) period setting is usually 10 but if you are using other technical indicators along its side then ensure that all your indicators have the same period setting. If you are using RVI on its own then a period setting of 10 should suffice. Relative vigor index is made up of two lines and it is the cross-over and cross-under between those lines that we must take into consideration. In general terms, when the green line crosses under the red line; we usually have a down-trend. When the green line crosses over the red line; we usually have an up-trend. However, do not place a sell every time the green line crosses under the red line and certainly do not place a buy when the green line crosses over the red one. There is a lot more to consider. The relative vigor index can be combined with a 100 period exponential moving average to confirm trend direction. When prices are below the 100EMA we trade down and when prices are above the 100 EMA we trade up. We also need prices to show us lower highs in a down-trend and higher lows in an up-trend. Once the relative vigor index lines cross over or under each other, we have a good signal to take a trade. Watch the full Forex training video to see how we do this. We can also use the relative vigor index by referencing the '0' line; which is basically the half way point. All we need here is for the RVI to be on the same side of the '0' line as trend direction. So, when we are trading up, RVI needs to be above the '0' line and when we trade down, RVI lines need to be below the '0' line.
Views: 15510 Capex Forex Trading
4.2 Piercing pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Piercing pattern is also a reversal pattern. It appears at the bottom of a down-trend so its purpose is to turn the current down-trend into the upwards direction. It is a two-candle formation that comprises of a strong black candle, followed by a strong, white candle. The 2nd, white candle has to open at or below the black candle's close and close more than half way into the black candle's real body. If it closes below the middle point of the black candle's real body, this would not qualify as a piercing pattern.
Views: 14406 Capex Forex Trading
7.0 How to use 2% trading rule in money management
http://www.capexforextrading.com/money-management Sometimes making profit in the Forex market is relied on more heavily by money management than by picking the currency pair to trade. This is backed-up and supported by the 2% rule which is used widely across the globe. Whilst it may sound small, the 2% rule is there to protect your investment and ensure you make the optimum profit. The rule applies to the risk part of your trade i.e. the stop loss distance you are using. In general terms, no matter how perfect the market scenario is you must never risk more than 2% of your total investment in a day or a trade. By setting this limit you do not leave yourself open to more losses during that day and simply wait for more opportunities tomorrow. If you succeed then your 2% becomes a bigger chunk of risk so this style of money management is always accumulative to your trading performance.
Views: 9521 Capex Forex Trading
6.2 Market maker brokers pretending to be ECN brokers
Forex brokers list - http://www.capexforextrading.com/forex-brokers Previous video – Difference between ECN, market makers and STP Forex brokers - http://www.capexforextrading.com/forex-brokers-training/difference-between-ecn-market-makers-and-stp-forex-brokers Explore our Forex brokers training video tutorials - http://www.capexforextrading.com/forex-brokers-training There are a few market maker brokers out there that you need to be careful of. The reason why is because they are literally pretending to be ECN Forex brokers and this is what entices people to sign-up for a live trading account. As all market making activity used to be processed through a dealing desk a lot of market makers have abolished it and now promote themselves as an ECN broker because they have no dealing desk. However, just because they have no dealing desk does not mean that they are a true ECN broker. Instead, all their market making abilities are passed on to their liquidity providers or other third party counter-trading banks and financial institutions., The reality is that the market making processes still exist within those brokers’ but they are processed somewhere else. This does not provide traders with real market conditions and in fact, they have ended up in exactly the same situation where they started. For a full explanation, watch our video tutorial.
Views: 14042 Capex Forex Trading
4.6 Doji candle explained
http://www.capexforextrading.com/candlestick-patterns-in-forex The doji candle is a significant candle when analysing trend reversals. A doji candle is not a reversal candle on its own but it does represent an equilibrium between buyers and sellers. This means that the open and the close are at similar levels and hence, the market does not know which way to go. To get an idea about the direction in which the market will be heading soon, we need to analyse the confirmation candles that appear after the doji. For example, a strong white candle that appears after a doji at the bottom of a down-trend could suggest that the trend is likely to reverse in the upward direction.
Views: 12486 Capex Forex Trading
2.2 Bid, ask and the spread in trading
http://www.capexforextrading.com/forex-brokers-software We discuss the difference between the bid and the ask and guide you through an example of spreads. Remember that no matter which direction you trade into, you will always start with a debt that is equal to the spread. So, if the spread is 2 pips, you will start with a debt of 2 pips and you will also have to accumulate 2 pips in order to break even. We also discuss the pricing structure for currency pairs and what the prices actually mean. The first currency listed is the base currency and the second is its counterpart. Watch the full video for a full explanation.
Views: 20585 Capex Forex Trading
4.4 Morning star pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Morning star pattern is a three candle formation that is comprised of a strong black candle, then a small spinning top who's colour does not matter and finally a strong white candle. The second candle (spinning top) has to open and close at or below the first, black candle's close. The third white candle then has to open at or above the 2nd candle's close and close more than half way into the first, black candle's real body. The morning star patterns always occurs at the bottom of a current down-trend so its purpose is to turn the current down-trend around into the upwards direction.
Views: 12433 Capex Forex Trading
5.2 Commodity Channel Index (CPI) trading instructions
http://www.capexforextrading.com/forex-technical-indicators Commodity price index allows to identify when prices are out of their 'normal' trading range. The way in which we do this is by waiting for a reading above 100 if we are trading up (buying), and a reading below 100 when we are trading down (selling). Howevber, before we use the Commodity Channel Index, we firstly must establish that a trend is already taking place. We do this by using additional indicators such as Moving averages and the Momentum indicator. Once we have a confirmation in both indicators that a trend is taking place, we use the CCI indicator to take the trade. Watch the full Forex training video to see how we use moving averages and the momentum indicator to establish a trend and the CCI indicator for our entry.
Views: 13263 Capex Forex Trading
3.1 Support and resistance lines explained
http://www.capexforextrading.com/forex-market-trends-and-movement Support and resistance are two of the most important trading areas in Forex. Whilst they can be traded as Forex trading strategies by themselves, in this video we discuss and explain what they mean and how they are identified in your charts. By definition, a support line is a horizontal line that reverses the current down-trend in an upward direction. The resistance line is the opposite -- it reverses the current up-trend into a downward direction. You also need to learn about the change of polarity rule so watch the full video for an in-depth explanation.
Views: 20103 Capex Forex Trading
4.8 Evening doji star pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Evening doji star pattern is a three candle formation that comprises of: 1. White candle 2. Doji candle that opens and closes at or above the first, white candle's close 3. Black candle that closes below the first, white candle's close. The lower it closes into the white candle's body, the stronger the evening doji star pattern is. In this Forex training video, we also provide a real chart example of the evening doji star pattern, so that you can see the effect that it can have on the market.
Views: 9898 Capex Forex Trading
1.2 3 rules of trading the markets
http://www.capexforextrading.com/forex-trading-basics Trading is not something that anyone can do without following a set of rules. Therefore, the following three rules should always be followed: 1 - Discipline - this is the most important characteristic for any trader 2 - Understanding of the success rate 3 - Emotional control Watch the full Forex training video to discover how these rules are meant to be followed.
Views: 36001 Capex Forex Trading
5.1 Bollinger Bands trading instructions
http://www.capexforextrading.com/forex-technical-indicators Bollinger band indicator measure volatility. It is this measurement that enables us to get into a trend. The higher the volatility the more players there are in the market. The lower the volatility the less players there are in the market. With this in mind, low volatility represents a potential end of the current trend. Once this occurs and a new trend starts, we are able to get into that trend by waiting for the bounce of the simple moving average (middle line). Our target is simply the previous low. Bollinger bands can also be used to trade reversals but they cannot be used on their own. We have to use another indicator along its side such as the Relative Strength Index (RSI). Once we see clear diversion between the price levels that are touching the outside Bollinger bands and the RSI indicator, a new trend is likely to begin moving in the opposite direction.
Views: 13950 Capex Forex Trading
4.3 Dark cloud cover pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Dark cloud cover pattern is reversal pattern that is the opposite of the piercing pattern. it also comprises of two candles; the first is a strong white candle and the second is a strong black candle. The dark cloud cover pattern always appears at the top of an up-trend so, its purpose is to turn the current down-trend around into the the downwards direction. The with this reversal pattern is that the second, black candle has to open at or below the white candle's close and close more than half way into the white candle's real body.
Views: 13141 Capex Forex Trading
4.0 Bullish engulfing pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex The bullish engulfing pattern is reversal patterns that appears at the bottom of a down-trend and comprises of two candles - the first, prior black candle and the second, larger white candle. In order for this two-candle formation to qualify as a Bullish engulfing pattern, the second white candle has to engulf the body of the first, prior black candle. The black candle can be in any format, as long as it is engulfed by the white candle. It does not matter if the white candle does not engulf the shadows/wicks of the black candle. It is only the body that has to be engulfed.
Views: 16029 Capex Forex Trading
5.3 Trading Moving averages instructions
http://www.capexforextrading.com/forex-technical-indicators Moving averages indicators are used to identify a trend whilst also providing clear support/resistance areas for traders when prices are trending. Essentially, we use moving averages to get into trends and not to trade reversals. To calculate the moving average, the system will add the closing prices of x number of trading sessions to calculate a total and then divide that total by the number of trading sessions. So, for the 20 period MA the system will add up the closing prices of the last 20 sessions and divide that total by 20 to get the MA reading. In this Forex training video we also explain the difference between the simple and exponential moving average whilst also providing examples of how MA's are used in trading.
Views: 10097 Capex Forex Trading
5.0 ADX indicator trading instructions
http://www.capexforextrading.com/forex-technical-indicators The ADX indicator (Average Directional Index) is amongst the most widely used indicators in Forex trading. The reason for its use is because it provides us with 2 factors: 1. It tells us if the market is trending 2. It shows us how strong that trend is It's purpose is to allow us to get into trends just after they are formed and get out before the market reverses back. The period setting for the ADX indicator is 14 (this is a default setting) and you should be using this setting if you are trading any time frame at or above H1. If you are trading time frames that are lower than H1, then you should use a period setting such as 10. We are looking for 2 factors when trading the ADX indicator: 1. A cross over the 25 line to indicate a trend is likely to happen 2. ADX indicator needs to rise to show us that trend strength is increasing. It is only at this point that we should take the trade. One thing to bear in mind is that the ADX indicator is a lagging indicator so it can take time to adjust to prices. This is why you may find that a few trades are misses.
Views: 23815 Capex Forex Trading
6.0 Factors to consider when choosing brokers
For a list of Forex brokers click here - http://www.capexforextrading.com/forex-brokers To view other Forex broker videos on our website click here - http://www.capexforextrading.com/forex-brokers-training With so many Forex brokers around these days, it can be quite difficult to find the right one for you; especially if you are a new trader. The most popular decision is to choose a Forex broker that is based within your country but sometimes that does not mean that you get the best deal. However, if you do find a Forex broker who is based in a country in which regulation is unknown, then you should find out who the regulator is and if the broker has the required licences. All Forex brokers should allow you to enter the market with no delays at the price they are quoting. Sometimes, this is not the case. There are a number of Forex brokers who wait a few seconds to find the best possible price and only then they allow access to the market. If you are trading low time-frames, this could eat into your profit. You should not have to wait to enter the market just because the broker is quoting a price that they cannot deliver. Watch the full Forex broker video tutorial to learn more and find out which other truly important factors need to be considered.
Views: 6571 Capex Forex Trading
1.4 News/data releases for traders
http://www.capexforextrading.com/forex-trading-basics Link for the economic calendar - http://www.capexforextrading.com/forex-economic-calendar News and data releases are considered to be leading indicators for various economies. The reason why is because they provide us with information on economy strength. It is because of this that they have the power to turn the market around at any point in the day. Major news releases you should consider are released by the ECB, MPC, BoE and FOMC. You should take note of who their leading individuals are and find out when their speeches and data releases are due for release.
Views: 26110 Capex Forex Trading
5.5 Trading MACD indicator instructions
http://www.capexforextrading.com/forex-technical-indicators MACD is short for 'Moving Average Convergence Divergence'. Convergence is relative to trend trading and divergence is relative to trading reversals. Convergence When we use MACD to trade convergence we are looking for an identical relationship between the indicator and prices. So, when MACD is rising we need to see that prices are also rising. When prices are falling we need to see the MACD indicator falling too. In simple terms, when the MACD indicator is above the 0 line and the histogram bars are rising an up-trend is taking place. When it is below 0 and the bars are falling we have a down-trend. Divergence This is when we are looking for an opposite relationship between MACD and prices. So, when we have higher highs in the price chart, MACD has to show lower highs and vice versa. This indicates that the trend is weakening and hence we trade in reverse. We also show you how to trade the cross-over so make sure you watch the full video for a complete explanation.
Views: 9009 Capex Forex Trading
5.8 Relative Strength Index (RSI) trading instructions
http://www.capexforextrading.com/forex-technical-indicators Relative strength index or RSI is a great technical indicator to use for getting into trends and exit at the right time out of trends being traded. The reason why is because the RSI tells us if a trend is overbought or oversold. It does this by displaying a reading in a line format that ranges from 0 to 100. Once the reading is over 70 we say that the up-trend is overbought and when it is under 30, we say that the down-trend is oversold. It is these readings that allow us to spot trend weakness and creation of new trends. When trading overbought and oversold readings of the relative strength index, traders need to remember to wait for the line to cross back over the 70 or 30 line. The reason why is because it is only at this point the prices may drop. We can also use RSI to recognize diversion; which is when prices and the indicator are trading into different directions. In the video you will see that prices are making new higher highs but the RSI is making lower highs. This means that the up-trend is weakening so this is where we take our up-trend profits or begin to look for a selling position. The last way in which can trade the RSI is by plotting a 50% line in the indicator window. When the reading is above 50% we should look to get into a buying position and when the reading is below 50%, we should look for a selling position.
Views: 7786 Capex Forex Trading
5.4 Trading Parabolic SAR instructions
http://www.capexforextrading.com/forex-technical-indicators Parabolic SAR is a technical indicator that allows us to get into trends. The indicator provides us with dots above and below candlesticks or price levels. In general terms, when the dots are above the candlesticks we should be selling and when they are below the candlesticks we should be buying. However, we cannot use the Parabolic SAR on its own. We have to use it with another indicator. The reason why is that the Parabolic SAR only provides us with an indication to buy or sell - it does not tell us if a trend is forming. For that we need the momentum indicator or Average Directional Index (ADX). Once we see a positive reading in the Momentum indicator that a trend is taking place and the dots in the Parabolic SAR are on the right side of the candlestick, we are ready to place an order. Please be aware that the Parabolic SAR indicator only works in a trending market. So, if the market is range-bound i.e. there is no trend; do not use this indicator. The dots will still appear on each side of the candlesticks but you should not take a trade here.
Views: 11844 Capex Forex Trading
4.7 Morning doji star pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Morning doji star pattern is a reversal pattern that appears at the bottom of a down-trend. As a result, its purpose is to turn the current down-trend around into the upwards direction. The first candle in the morning doji star pattern has to be a black candle. The second is a doji candle that opens and closes at or below the first, black candle's close. This is not required, it is simply preferred. The last candle has to be a white candle that closes above the close of the first, black candle. The higher the close of the white candle, the stronger the pattern is.
Views: 11131 Capex Forex Trading
4.5 Evening star pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Evening star pattern is the opposite of the morning star pattern. It comprises of three candles. The first is a white candle, the second is a small spinning top that opens and closes at or above the first, white candle's close, and the third is strong black candle that opens below the second candle's close and closes more than half way into the first, white candle's real body. The evening star pattern appears at the top of an up-trend so its purpose is to turn the market around into the downwards direction
Views: 11467 Capex Forex Trading
1.1 What is Forex?
http://www.capexforextrading.com/forex-trading-basics Watch this short presentation that explains the basics of the Forex market. Forex is the biggest trading environment in the world with over $5.3 trillion traded per day. This is mainly due to huge participants such as international banks, hedge funds and central banks. Traders like you and I are very small participants and we are unable to move the market. Watch the full video to see which currency pairs you should bear in mind when you trade.
Views: 64989 Capex Forex Trading
6.5 Why you need a broker demo account and where to find one
Open a broker demo account - http://www.capexforextrading.com/forex-brokers Browse out broker training video tutorials - http://www.capexforextrading.com/forex-brokers-training Demo accounts are an absolute must for all traders - whether you are a beginner or a professional. The main purpose of having a demo trading account with a broker is to practice everything you are going to do in live markets, in a safe and risk free environment. This includes trading strategies, money management, appetite to risk and many other important factors. The point here is to use the demo account to become a master of all aspects of your trading first, and then take that into live markets with full confidence. For example, you may have learnt about one of our strategies that we teach. Even if you followed all the rules step by step, it is not safe to trade it in live markets straight away. Instead, you need to practice all the aspects concerned with the strategy in your DEMO account first. From here, you will mould and re-design the strategy to suit your trading personality and take it into live markets only after a long period of successful trades. In our video tutorial we explain in detail all the major aspects that you need to know about when it comes to demo accounts. Please ensure you watch this video before you sign-up to a live account because many traders tend to bypass this and get burnt in the live markets in no time at all. We also provide instructions on where to find brokers that provide demo accounts for free.
Views: 5067 Capex Forex Trading
6.3 Broker delays and re-quotes explained
Find the right Forex broker - http://www.capexforextrading.com/forex-brokers Browse our Forex brokers video tutorials - http://www.capexforextrading.com/forex-brokers-training In this Forex training video we discuss the issue of Forex broker delays and how re-quotes are directly linked to these events. In simple terms delays occur when you are unable to place a trade, despite the Forex broker offering a price for that trade. If you are using a true ECN broker or one that does not manipulate prices/market conditions then this will not happen. However, it will happen if you are using a ‘money grabbing’ market maker broker. You may find that your orders are not executed straight away from the point of clicking your ‘buy’ or ‘sell’ button. They may even be not executed at all but you will most certainly have to wait a few seconds so that your order goes through the system. This usually happens at periods of high volatility and the reason is because the broker wants to make more money from you. By offering you the next best price which usually means that spreads are much wider, they are able to generate more profit from you if you chose to take that price. Sometimes, you may not even have a choice as the order automatically goes through a few seconds later anyway. The problem is that if you are trading lower time-frames where instant entry is crucial, your profits will suffer. The reason why is because you will enter the order when it is too late and if you are lucky, you could break-even once you reach your profit target. If you are wrong then your loss would far exceed the loss you would have had if you entered at the original price.
Views: 4823 Capex Forex Trading
2.3 Japanese trading candlesticks explained
http://www.capexforextrading.com/forex-brokers-software Traditionally traders used to trade using bar charts. This proved to be quite a difficult way of analysing charts so the Japanese method using candlesticks was adopted in the western world. Using candlesticks made it a lot easier and quicker to understand market conditions, mainly due to the candlestick colour scheme.
Views: 17649 Capex Forex Trading
5.10 Stochastics indicator trading instructions
http://www.capexforextrading.com/forex-technical-indicators The stochastics indicator is a great tool to use to identify overbought and oversold areas of a trend. It is made of up two lines: 1. %K line 2. %D line What these lines are, how they are calculated and what they mean is not relevant. However, you do need to know that the standard setting for the indicator is 14,3,3. 14 relates to the number of last trading sessions and the 'two threes' relate to the %K and %D lines. In the stochastics indicator window we have two major levels that are emphasized - 20 and 80. In simple terms, when stochastics are over 80 the market is overbought and when it is below 20, the market is oversold. To make the stochastics indicator a bit more reliable we have to combine it with a 200 period exponential moving average. Doing this will confirm trend direction. So, when prices are below the 200EMA we focus on down-trends and when they are above it, we focus on up-trends. To trade stochastics, we need to look for pull-backs in the trend. For example, when analysing an up-trend we wait for a pull-back to be in an oversold stochastics position. If the low of the pull-back is higher than the previous low that was in an oversold stochastics position, we take the trade. However, make sure you wait for stochastics to cross back over the 20 level line first. In the video we also show you how to use stochastics with diversion and trend line breaks so ensure you watch the full video and leave any comments below.
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6.7 How to sign up to a broker trading account
Choose a broker here - http://www.capexforextrading.com/forex-brokers In this video we have included instructions on how to find, chose and sign up to a broker of your choice.
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1.5 Requirements for trading the markets
http://www.capexforextrading.com/forex-trading-basics There are 3 items that you need before you start Forex trading. They are: 1. Laptop/computer 2. Investment 3. Online Forex broker It is quite common that new traders think large investment is required when in fact, a live trading account can be open with as little as $100. At the same time, multiple screens are not required unless you are analysing more than 8 charts at one time.
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4.1 Bearish engulfing pattern explained
http://www.capexforextrading.com/candlestick-patterns-in-forex Bearish engulfing pattern is the opposite of the bullish engulfing pattern. it is also a two candle formation but it appears at the top of an up-trend. The rule is that the second, black candle has to completely engulf the body of the prior, white candle. It does not have to engulf the wicks of the prior, white candle. The bearish engulfing pattern is only valid once the second candle has closed. Traders who make the mistake of predicting the close of the second candle usually find that the pattern does not complete and they are in a losing trade.
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6.6 Instructions for your first live broker trading account
Open a LIVE or DEMO trading account - http://www.capexforextrading.com/forex-brokers Browse our Forex broker training videos - http://www.capexforextrading.com/forex-brokers-training There is an element of eagerness created when traders sign up to a live trading account with their broker. They are very keen to get started and sometimes miss the factors that they should focus on before trading. Funding their account with everything they have is one of the most common mistakes that traders make. When you begin to trade in a live market environment you almost have to adopt a 'testing' frame of mind to ensure that your personality will not be different to the one you had in a DEMO environment. Now that real money is exchanged the siltation becomes real and your ability to react to problematic situation should be under a watchful eye. You should also reference your profit and loss sheet at the end of every trading day. This will enable you to find all orders and realise where you went right or wrong, depending on your success rate. There are plenty more factors to understand before you trade in live markets so ensure you watch the full video.
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2.1 Setting up your broker trading software Part 2
http://www.capexforextrading.com/forex-brokers-software Whilst you will have to play around with your Forex charts yourself, in this video we guide you through processes such as buying and selling, drawing trend lines, channels, inserting indicators and changing time frames. Please remember that our guide is relative to all Forex trading platforms even if they look different.
Views: 21106 Capex Forex Trading
2.0 Setting up your broker trading software Part 1
http://www.capexforextrading.com/forex-brokers-software Finding the right broker is not enough. Once you have downloaded the Forex trading software, there are many setting up features that need to be enabled to make your trading seamless. In this video we show you how to arrange your charts accordingly, set the correct colour scheme and check other features have installed properly.
Views: 24216 Capex Forex Trading