Forex Plus

Bollinger Bands

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGUT9Y1O5G0jHB2QWrfA_IplB4BCWD_BXYqS1CvHaLIBnfEAMfItUUuN57Up2GKxc1WcIVfDCP_D0JWlggve-BTVdQdPlc3Lm-pZcTC3TDJKka6Qr5M-lgh6NAveUzi89VgcETzD1X55KD/s1600/BollingerBands1.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Bollinger Bands" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGUT9Y1O5G0jHB2QWrfA_IplB4BCWD_BXYqS1CvHaLIBnfEAMfItUUuN57Up2GKxc1WcIVfDCP_D0JWlggve-BTVdQdPlc3Lm-pZcTC3TDJKka6Qr5M-lgh6NAveUzi89VgcETzD1X55KD/s1600/BollingerBands1.jpg" title="Bollinger Bands" /></a>Bollinger bands, developed by John Bollinger, Bollinger Capital Management in the 1980s, based on the size of the recent price action volatility. Bollinger used two standard deviation closing price and plotted the values above and below a simple moving average. The default parameters for the use of a simple Bollinger bar-20 moving average, and trading a planned line 2 standard deviation above and below the moving average. Using Bollinger bands can be improved by simple changes in CQG, which will be explained following this overview of the classical approach. 
 
Trading bands tend to capture about 90% of the price data, less than about 95%, which will emerge if the market does not show a higher than normal level of variability in the average. 
Bollinger band aims to provide a relatively high definition and low. By definition, the high price of above and below the lowest band. This definition can help in a tight pattern recognition and is useful in comparing price action action indicators to arrive at systematic trading decisions. 
 
Bollinger band using a variety of traders. Some traders buy when price touches the lower Bollinger band and quit when the price reaches an average of moving the troops. Other traders buy when the price breaks above the upper Bollinger band or when the price falls below the lower Bollinger band. In addition, the use of Bollinger bands is not limited to forex traders; option implied volatility traders, especially traders often sell when Bollinger bands historically far or buy options when Bollinger bands historically close together, in either case, expect volatility to return to the average historical volatility to the market price. 
 
Traders will vary the length of the moving average and standard deviation, based on how often they want to trade signals. 
 
Technique 
The tendency to contract and expand is the main value of the Bollinger bands. Market trends tend to come from a period of low volatility, which appears as a sideways movement in the price chart. When the market moved in a narrow range, the Bollinger bands will contract as the closing price are grouped around the average price. 
 
Often, the market is marking time, waiting for some news that major economic statistics. When the news was announced, the market may move to a sustainable trend. The value of Bollinger bands is that you can identify the situation of low volatility, which can then be used as a condition in the Forex plus (for example, the difference between the upper and lower Bollinger band has fallen below a certain threshold), the conditions for marking graph or as a warning, a personalized learning components, or as a rule in systems for further analysis of marketing. 
 
On the other hand there is a tendency to memperllebar during Bollinger trend. In fact, the beginning of a trend that will lead to two Bollinger to move in the opposite direction. This expansion confirms this trend. As a market trend, no slow momentum will result in the Bollinger bands are likely to change the direction of the trend. This is the first sign of losing momentum, and a reason to get out or take profits. 
 
In addition, both the Bollinger bands will begin to contract, reminding yourself early trading range, and gives you a reason to get out of the whole trade. Both of these events can be the basis for the alert conditions or custom rules in trading systems. 
 
A challenge with Bollinger bands are going to have to wait for the bar to close before they can determine the value end of the Bollinger bands. In other words, the value of the Bollinger band fluctuates with a lively bar. 
 
If the market is surging upward, the Bollinger bands will increase and may be on the high bar at the moment. If the market turns around and closes the mid-range to high bar can now be tagging the top Bollinger band, but that is because in addition to under the sea creature. Labeling is not high on Bollinger when height actually happened. 
 
Look back at the top of the graph, you can see that there are clearly points where Bollinger breakout trend marked or tagged the band marked the end of the trend. But you won't know if this is the case, while the bar is lively as Bollinger bands move with prices. You do not have a fixed frame of reference. 
 
Bollinger bands advanced 
Instead of using Bollinger bands as a direct calculation of the current bar, set the Bollinger bands as a frame of reference fixed by creating a private study that use the Formula Editor. Create a custom study for Bollinger bands and studies to low using the lookback period Bollinger band of your choice, but click and select offset-1. Advanced custom studies, Bollinger band who planned the previous value of the current live band Bollinger's bar, providing you with a fixed frame of reference. 
 
Bollinger bands-advanced can be used as support and resistance levels. Bollinger bands are fixed price locks from the bar at the moment. Acne Bollinger bands indicate that continued market move past previous levels containing the price action. Breakout that reverses the resumed between Bollinger bands-advanced will signal a false breakout.

Bollinger Bands

Bollinger bands, developed by John Bollinger, Bollinger Capital Management in the 1980s, based on the size of the recent price action vola...

Richard J. Dennis "The Prince of the Pit"

Richard Dennis was born in Chicago, USA, in 1949. He was interested in trading in commodity markets since the age of teenagers because it happened to the Chicago Mercantile Exchange were near his residence. At the time I was in College majoring in philosophy at DePaul University Dennis had started trading with its own capital. Prior to campus, she always visited the Chicago Mercantile Exchange to do transactions on his personal accounts, and the next day he saw his trading account balance is always incremented aka profit. 
 
Richard j. Dennis was a fund manager, trader, author, and mentor (coach) trading. He was President of the Dennis Trading Group Inc. and vice-chairman of the C & D Commodities. In addition to writing an article on The NewYork Times, The Wall Street Journal, and the Chicago Tribune, he is also author of trading system course and a founder of turtle trading on-line Turtle Trader. 
 
Dennis started trading in the stock market and commodities to the capital alone since the age of 17 years with a pretty impressive performance, before suffering a huge loss and almost bankrupt at the time of the US stock market crash of 1987. After quite a long break, in 1994 he started trading again with a different strategy. The results a year later he won the advantage of 108% and 111% in 1996. 
 
Because a good trading performance, named Richard Dennis is best known to New Yorkers, the trading centre in the USA. Dennis started trading with the private property outside the capital after many people asked him to manage a number of funds. Because of the unique way his trading, he got the nickname ' <a href="http://forex-cricket.blogspot.com/2013/10/richard-j-dennis-prince-of-pit.html" target="_blank">The Prince of the Pit</a> ' by The New York Times. 
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According to testimony, he was a follower of traders known as the Richard Donchian, Mr. ' trend following '. While managing the accounts of his clients, he also entered in the stock market and futures, and because of the ambition to earn a profit in a short time, he also implemented the strategy of pyramiding. This strategy often run well. But then he also increasingly aggressive with its frequent use of instinct to predict the trend of price movement until nearly all of its managed accounts almost collapse at the time of the 1987 stock market crash, known as ' Black Monday '. Dennis himself losing millions of dollars plus a pile of debt that must be repaid. 
 
After a break of several years, he began to rise again in 1994. This time he is very careful and no longer use the instinct. He created his own trading system based on a prediction of the trend directions combined with risk management. "In the current market conditions, trading with a clear and purposeful systems is very important. It was the best trading way. "he said. Trading systems generate trading signals complete with recommendations for entry and exit. Supposedly many trading strategies adopted turtle trading system. 
 
"Now I am not just traders, but also researchers, and lecturers. Regularly I always fix the parameters in my trading system to be able to adapt to the changes that occur. You certainly know the market conditions so quickly change. "said Dennis who is also active in drug eradication and author of the book '' Toward a Moral Drug Policy '. 
 
As a mentor, what's his advice for the novice trader? "Whatever strategy you use, if you act right then it will surely go well. The key is discipline and consistent. " he said. 
 
<a href="http://forex-cricket.blogspot.com/search/label/Traders%20Story" target="_blank">Read another Trader's Story</a>

Richard J. Dennis "The Prince of the Pit"

Richard Dennis was born in Chicago, USA, in 1949. He was interested in trading in commodity markets since the age of teenagers because it ha...

The Top Ten most Influential News

In fundamental analysis schedule news is important to be aware of. Forex calendar that pops up every week you can see in the website or your...

Trading for a Living, Dr. Alexander Elder

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhw3UEZiGna2ItHHEIRU6mrMlmkUz5OVeA9eOxwKjnk1z84Y6Lt3zWOogdlDU7WGEB8zEpzZDY7HvLMRvwjgEY-aHq9Ew3nEHcEoI22OxZwiYxSxWDQ9OdnuA-nkH-g1M9Rr9TsC6VPNvd_/s1600/Dr.+Alexander+Elder.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Trading for a Living, Dr. Alexander Elder " border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhw3UEZiGna2ItHHEIRU6mrMlmkUz5OVeA9eOxwKjnk1z84Y6Lt3zWOogdlDU7WGEB8zEpzZDY7HvLMRvwjgEY-aHq9Ew3nEHcEoI22OxZwiYxSxWDQ9OdnuA-nkH-g1M9Rr9TsC6VPNvd_/s200/Dr.+Alexander+Elder.jpg" title="Trading for a Living, Dr. Alexander Elder " width="150" /></a>Dr. Alexander Elder is a professional trader (born 1951 in Leningrad,Soviet Union), author of books on trading and investments, trainer, consultant and motivational speaker leading trading. Among the dozens of his book famous ' Trading for a Living ' (international best seller, 1993), ' Come into My Trading Room ' (Barron's 2002 Book of the Year) and ' Entries & Exits '. Living in New York City and in various types of market trading, Elder pioneered a special school to traders called ' Traders ' Camp ' and ' Spike ' Group. He is very reliable in teaching and speaking at various seminars. Ideas and how to transfer knowledge in trading many acclaimed and much imitated. In addition to trading for himself and his client, Dr. Elder is committed in helping traders to be qualified and confident in my trading, as the motto on the website perusahaannnya elder.com: Intelligent Education for Traders. Alexander Elder's background is a medical doctor and psychiatrist. Born in Leningrad, Russia, where he studied medicine. At the age of 23, he received political asylum from the United States Government and works in New York City as a psychiatrist as well as teaching at Columbia University. This Elder became interested in trading in the stock market. The first shares bought are KinderCare. After learning to know the ins and outs of trading in the stock market, he also began to focus on the market option. According to Dr. Elder who also created the method of ' Triple Screen Trading System ', the most important in trading is Psychology (perhaps because of his background as a psychiatrist), then the use of a combination of technical analysis and proper money management. As it is written in his book ' Trading for a Living ', Dr Elder said "in the beginning I am trading with slow and did not develop until I realized that the key to success in trading there in my head, not in the computer. Some say that trading was easy-easy is difficult, it is not true. To succeed in the knowledge required in the trading and high discipline. The myth that great loss because I do not know the secrets of the trade, it is absolutely incorrect. Secrets in trading that's just fantasy. If anything, there are only 3 Secrets: psychology, market analysis and trading systems and money management. Everything must be done with great discipline. " In addition to the stock and option markets, Dr. Elder is also trading in the futures market that he thought most advantageous. In addition to continued to write books, he also practices as a psychiatrist in part-time after hours trading. Dr. Elder to understand in detail what the underlying transaction in the trading flow, how should the way of thinking before you start the transaction, when it had a trading position and after closing a transaction. According to him, there are three levels in trading: 
<ol>
<li>Traders who are adept in technical analysis but doesn't understand the psychology of trading which is a major component in determining the way of thinking and control your emotions.</li>
<li>The Trader realized that although he is proficient in technical analysis but it does not guarantee success in trading. At this level of traders will be looking for and trying new ways and avoid the old ways that have failed. Dr. Elder refers to this as an awakening understanding of the psychology of trading.</li>
<li>Traders who have understood that to be successful in trading correct emotional control is required and a disciplined money management strategies. Without controlling the trader emotions can be hard to anticipate price movements next, and without a disciplined money management trader will use his emotions to ' impose ' advantage, a very natural thing.</li>
</ol>
 source: www.elder.com

Trading for a Living, Dr. Alexander Elder

Dr. Alexander Elder is a professional trader (born 1951 in Leningrad,Soviet Union), author of books on trading and investments, trainer, c...

The Teory of DOW

Most of what we know about technical analysis was born from the ideas of Charles Dow, Edward Jones and his partner, who works in the company Dow Jones & Company since 1882. These ideas were published in the Wall Street Journal and on currently accepted by most adherents of technical analysis, although most did not know the source. Dow theory is still dominate even though it has a lot of technical analysis is more complicated and high-tech. 
 
I. the market takes into account everything. 
All the things that can affect the supply and demand market reflected in market prices. 
 
II. three types of trends (Trends). 
According to Dow, trending up (uptrend) is a continuous rise to the top and down, while trending down (downtrend) is constantly up to the lowest point. Dow argued that the law of action and reaction that applies to the market is the same as for other physical objects, and this means that any significant changes is always followed by concrete returns. 
 
Dow divides trends into 3 parts: 
 
1. Primer (comparable with the tide, the continuous rise of the surface). 
2. Secondary (proportional to the wave and represents correction feedback) from the first trend, usually up to 1/3, 2/3 or typically half that of previous trends change.) 
3. Minor (ripple)-fluctuations in a secondary trend. 
 
III. the primary Trend consists of three phases. 
The Dow is concerned the primary trend, which is divided into three phases: 
 
The phase Accumulated the most astute investors begin selling or buying the latest changes feel from the direction of the market. 
-Participation phase by using technical analysis, most of the traders into the market following a price change that fast. 
The phases of implementation of the new directions that are recognized and widely accepted and supported by economic news that generate speculative volume growth and all participants in the trend. 
 
IV. Exchange Indices must be mutually confirm. 
Dow stated that up to the curve of the Industrial index and the Standard &amp; poor-(discourse on the Dow-Jones index) does not surpass the previous peak then there is no confirmation of the beginning and the continuation of the movement "bull" (ascending) on the market. Signals do not have to log on simultaneously but the more clearly a signal is considered to be increasingly little time underway among the signals they will be. 
 
V. Trends reinforced by trading volume. 
Trading Volume was enlarged or shrunk depending on the price trend towards the back or vice versa. Dow found this as volume indicators second stage. Signal-signal to sell or buy based on the closing price. 
 
VI. Trends must be assessed continued until the emergence of signs of the opposite direction. 
All the technical approach to analyze the market based on a simple idea, that trend will continue until the advent of the outside force that compels him to turn – just as in terms of physical objects bendak. Thus there are signals in the reverse direction to look for.

The Teory of DOW

Most of what we know about technical analysis was born from the ideas of Charles Dow, Edward Jones and his partner, who works in the company...

Manage Your Trading Psychology

Every human being is born with different characters and complex nature. Feeling greedy, covetous, doubt, fear, hurt, wanted revenge etc is the main enemy to be conquered by a trader. Forex trading is a business activity that involves humans, of course following all sorts of nature or character. And because that's the psychology of management is indispensable here. 
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Management Trading psychology, should know and understand? Literally, the psychology of mental changes identical to someone. And mental readiness in trading, a trader in the face all situations is indeed indispensable. 
 
Not a few traders who end up bankrupt just because its less ready to affect their mental trading pattern is actually good. On live trading psychology changes, experienced a trader is certainly very different is different when using demo account, this is because in the live trading is no longer using virtual money, but the real money. Managing the psychology of management (psychology) trading is not an easy job, but indeed this is one of the important things that need to be understood and carried out by a trader. 
 
Some of the trader characters must be to managed are: 
 
Greedy 
This is the most basic human nature it is difficult to be removed. One purpose of the trader when to enter the market and conduct transactions is gaining profit. And the tendency of traders to profit was bigger than what he obtained already at that time. 
 
Revenge on the market 
This very common condition experienced by beginners like me when it suffered a loss. As I demonstrated above, revenge will only make the trader cannot think clearly and focus on trading patterns. Of course this being a big plagues if it continues 
 
Fear and doubtOther psychological problems is fear or hesitation. The result of the psychological problems is usually late to enter the market or even result in the loss of the opportunity to profit. 
 
Over Confident 
Over confident or overly confident. Often occurs when several times in a row get the profit, even with no loss at all. Confident it is necessary, but overconfidence can also provide effects that are not well in trading. 
 
Source: ide-fx.blogspot.com

Manage Your Trading Psychology

Every human being is born with different characters and complex nature. Feeling greedy, covetous, doubt, fear, hurt, wanted revenge etc is t...