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Dear Traders,

this is the third article my series Bollinger Band Strategy for Trending Markets. In the first article (December 2014) I described how you get in and out of the trade when we are in a trending market. In the second article (January 2015) it was all about managing stops and take profits.

In this one, it will be all about how to determine a sideways market. This is the time frame, when we don’t trade at all, since we have no underlying trend. Don’t underestimate this – staying aside and waiting for good opportunities is a big part in successful trading.

Te keep things simple and concentrate on the active trades I showed that you are in a trending market when the middle line of the Bollinger Bands is consistently rising or falling. When this middle line – which is just a moving average – is flat or directionless, we are in a sideways market.

This all is completely true, but we can do better: In standard Bollinger Band settings the middle line is a exponential moving average. The parameters don’t matter that much, the key is to keep them on a fixed level to get the feeling how they move.

Back to the middle line - there are numerous ways to alter that line. Jfore…
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1.0 Introduction

This article will help you become a better Forex trader in the year we have already stepped in. the new technologies and the new atmosphere is going to bring certain changes in every aspect of our life, so is going to happen with the forex.

People often get tired before reaching their goal in most of the things they do, and often it they are unaware how close they were. With traders, it is the same thing; many times you have been so close to getting a score, but maybe you missed something – even a minor step – simple that could lead you to a door of success. Knowing how to avoid such mistakes, well, not only small ones, but major ones too, are going to give you huge advantage towards your goal. And your goal is everybody’s – success. Learning is – some say – best from mistakes, preferably from other people’s mistakes, not your own. Some traders will dig and dig until they have something worthy, but some will give up after a series of unsuccessful attempts. The sad part is that you never know if you needed just another trade before turning your wheel of fortune towards your success. This article might help you overcome moments of impatience and help you recogn…
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Are they any good? Yes and no. It depends on your expectations (what you want to use them for) and/or the EA's level of profitability. Just as "apps" are ever evolving for phones, EA's are continuously evolving for trading. Programmers, working alongside traders, are creating more sophisticated EA's to replace the need for manual trading. EA's can be programmed to perform a simple task, complex algorithms, or anything in between. An EA can alert you to a potential trade setup, take over a multitude of routine aspects of your trading, or fully automate your trading from entry to exit.

I'll break it down to the pros and cons, provide a few examples of practical applications, outline some considerations, and then let you decide for yourself.

Advantages of EA's

  • Accuracy and speed of execution
  • Removes human emotion
  • Strategy back testing capabilities
  • Risk management
  • Amazing stamina

Disadvantages of EA's

  • When your computer system goes down, the EA stops working.
  • Creating customized EA's for complex trading strategies may be costly.
  • When platforms are upgraded, your EA may need upgrading too.
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Let’s begin with a quiz.
  • In the case of war or total economic collapse, which would be more valuable, oil or gold?
  • What is the average cost of producing an ounce of gold, a barrel of oil and printing a dollar?
  • Is gold a commodity, currency or Veblen good?
While days of the gold standard are behind us, gold still plays a role in day-to-day life, be it as a currency or commodity. According to World Gold Council, the Turks amassed over 3,500 tons of gold “under-the-pillow” by 2014 and Russia and China are stocking up. Is gold truly an investment or are people busy stacking “rocks” which could be another tulip mania?

Famous gold quote...

Gold Has Never Been Worth Zero

Gold investment advisers say when countries start stocking gold, it is not indicative of wealth but potential economic turmoil. They also say the accumulation of gold indicates what other nations and hedge funds think about the US dollar and the global economy. Others fall in the group of the British economist John Maynard Keynes and believe that “gold is a barbarous relic”.

The image below shows the rise of gold since 2001 and how gold reacts to economic events affecting the US dollar.

Many also claim that gold ha…
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When most people discover the forex market for the first time, one of the things that come with this discovery is the “magical” phenomenon called “Expert Advisors” or “Forex Robots”. In truth, there is nothing magical about expert advisors; they are simply computer programs that have the ability to execute trades without the need for human intervention.

For traders using a Meta-Trader platform, these programs are called expert advisors, while the more general name for them is forex robots. Although over time, most forex brokers have provided platform tools that can be used in the easy development of forex robots on their platforms.

An example of such is the Visual Jforex strategy builder used in the Dukascopy community.

Some people refer to this type of trading as Algorithmic Algo trading, mechanical trading or automated trading using forex robots. With this type of trading, a specific set of entry and exit trading rules are coded into computer software; and this allows the software or program to execute trades automatically via a computer.

There are four main reasons why most people would opt to use a forex robot, rather than employ a human trader.

The Absence of Emotion
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Currency markets have inherent levels on which selling or buying activity persists. Identifying such levels allows based on historic performance allows to sell or, respectively, buy from such specific levels. However, selling levels can be broken through once many attempts to test the level have been made and the amount of selling from the level decreases with time. Conversely, the same can apply to buying levels.

Reaction patterns on such levels reflect the amount of “firepower” on such levels. As the “firepower” dwindles, so will the possibility of recurrent selling/buying from such levels.

Selling/buying levels are not pip-precise. On the contrary, they have a certain leeway of 10-20 pip depending on the currency and only in very unique cases are actually pip-precise. Movement beyond the buying/selling level and return back are sometimes called “false breakouts”.

The key to understanding the movements towards the key buying/selling levels is the trading volume which leads towards the “significance levels”. If the volume leading towards the significance level is increasing and is significant, then there is a higher chance that the level will be broken, even if not immedi…
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In this article I will be explaining about one of the popular candlestick pin bar strategy that has been used by thousands of traders over many decades. Sometimes perfect setup of this this strategy fails and make you lose the trade, but like every other trading strategy this pin bar strategy is not a holy grail of forex trading. With proper money management and discipline eventually all traders can become profitable.

What is a Pin Bar?

A pin bar is a candlestick pattern that has a long wick and small body. There are two types of pin bars: bullish and bearish pin bar. Pin bars are formed when prices are tested at the given price and then rejected from that price.
The picture below shows what bullish and bearish pin bars look like.

Pin Bar strategy: Buy/Sell, Stop loss/ Take Profit

Buy or Sell:

This strategy is very simple.sell at the downtrend and buy at the uptrend. In the ranging market buy at the support and sell at the resistance

The picture above shows the formation of pin bars in the trending market and when to buy or sell. Pin Bars often formed at the end of a trend or at the end of a pull backs.


The picture above shows the formation of pin bars in the ranging mark…
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INTRODUCTION


Despite being technical analysis indicators, the powerful Fibonacci tools are widely used even by fundamental analysis traders. Unlike the common lagging indicators, they can predict future price levels . I leave the debate of whether this is a self-fulfilling prophecy or a bias toward a law in nature to others. Those tools will be explained in this article one by one.

FIBONACCI & THE FIBONACCI NUMBER SEQUENCE

Fibonacci was a thirteenth-century talented mathematician who described the numerical series now named after him. In the Fibonacci sequence of numbers, after 0 and 1, each number is the sum of the two prior numbers. Hence, the sequence is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610 and so on extending to infinity. Each number is approximately 1.618 times greater than the preceding number.

THE GOLDEN RATIO

This figure 1.618 is called Phi or the Golden Ratio. The inverse of 1.618 is 0.618. The golden ratio appears everywhere in Nature from the micro scale to the macro scale. Things that are based on this divine proportion are beautiful and shapely and things that do not contain it look ugly and seem suspicious and unnatural.

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Fibonacci Levels
Ranking 20/48
FIBONACCI LEVELS

HISTORY
Fibonacci (Fibonacci) Italian mathematician, 1202 in Pisa has published the work "Liber Abaci". This work has changed Europe - he Europeans began to use Arabic instead of Roman. This mathematician known for the fact that developed a sequence of numbers, which later became known as the Fibonacci sequence or the Fibonacci numbers.

NUMBERS
The first number in a sequence of 0 and 1. The second sequence is developing in a way that the resulting number of the next added to the preceding one of the figure:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181 and so on.
Eg .: 0 + 1 = 1; 1 + 1 = 2; 2 + 1 = 3; 2 + 3 = 5; 3 + 5 = 8; 5 + 8 = 13, etc.
Leonardo Fibonacci discovered that the Fibonacci sequence and its ratio can be found everywhere, even in the natural world. This sequence applies to almost as a universal rule.
This sequence has a number of interesting features:
Any number ratio of the number which is the nearest number in the sequence after the first four numbers are close to 0,618 or 61.8% (the golden section ratio). For example: 34/55 = 0.618
Any number ratio of the number which is two places below, closer to 0,382 or 38.…
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I wrote this article as a reaction to discussion below the community support blog with topic Prize fund increase and turnover changes for 2015“.

I would like to share my personal view of social trading business model with all advantages and disadvantages. I will try to explain what problems we have to face it and I will offer a solution. As traders who are involved in this type of business we should have right outlook what is all about and what necessary components of social trading environment are. Key idea is very simple. Social trading is an exchange. The exchange where talented traders can bring their skills and sell them same way as a public company brings ideas for investors. Social trading provider creates environment as an exchange. He deserves revenue in the form of commission for offering this service.

The question is, why is this idea is so unique? Answer is efficiency. Costs you have to pay as an investor for over-performing assets are extremely low. If you compare social trading platform with similar investments as Pamm schemes or hedgefunds, then you can see huge difference. Investors receive 100% of performance with no high required investment. For traders is thi…
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Hi all traders. If you click to Dukascopy community and "Forex article contest" you can see picture of William Shakespeare. He wrote many works and in one of them famous sentense: "To be, or not to be..." It is the opening phrase of a dialog in the "Nunnery Scene" of William Shakespeare's play Hamlet. This question is very analogous to traders every day question: "buy or sell"?

Is it easy answer? Of course not because trading is hard business. What can help? There is indicator Average true range in shortly ATR. What is ATR? ATR is a technical analysis volatility indicator originally developed by Welles Wilder. The indicator does not provide an indication of price trend, simply the degree of price volatility. The average true range is an N-day moving average of the true range values.

How can we use it for trading? Do not forget the main question for intraday trader is "buy or sell?" in actual day. Setup chart will not by daily time frame but lower time frame for example one hour. But intraday trader need daily time frame for answer his question. Why? Because daily time frame is setup chart for ATR indicator. This is very important information for intraday trader. Please look …
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Currency Health Check
Ranking 4/48

Currency traders are divided into two groups by their method of analysis; there are technical traders and fundamental traders. There is a lot of debate about which approach is better; and even though both sides have merits, the need to understand the fundamentals behind a currency cannot be over-emphasized.

Fundamental traders have an edge over technical traders; this is because they understand how economic policies affect economies. The performance of an economy in turn affects its currency. What the fundamental traders do not know however, is when the effect of the policies will take place. This is where Technical traders have the advantage; they are pure skeptics and trade only what they see. A technical trader will not take a short position on the EURUSD because the European Central Bank is planning a massive Quantitative Easing (QE) program; rather the trader waits till the move is confirmed or until a major support is broken.

Having a Fundamental Bias

It is necessary to have a trading bias before beginning any trading activity, and this bias should be based on strong fundamental information. Currencies fluctuate, but their fluctuations are anything but random. Their flu…
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We all know how difficult it is to earn money in Forex market and make a living out of it. More than 90 percent people lose money in Forex market due to various reasons. If you have been trading for long you must have realized by now how good you're at trading?

Let's face the fact and realize that if we are losing money then we don't fall in the category of GOOD TRADERS. Today, I would talk about few signs that would help you know your trading style.

.
10 INDICATIONS OF A BAD TRADER : -

1. Trading blindly without a plan

This is a crime in Forex market and it would eventually blow up your account no matter how good you're at initial stages. Trading is just like a business so invest enough time in setting up a plan.

2. Absence of money management rule

Usually, it's best to start your trading career with 1% rule and increase it gradually. Evaluate your risk potential and keep it under 1% of your trading capital.

3. Emotions play in your trade

Yes, it's exciting to win trades, but if you get too excited then there is something not right. Trading should be dealt as a business process where emotions have no place.

4. You predict instead of react

There is a story behind eve…
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My Secrets to Reveal
Ranking 23/48
this is the first secret

today I'm showing you one of my secrets and at the end of my article there a surprise for you guys

my way to support and resistance

we can't deny the importance of support and resistance in our trading life
and here in this article I'm showing you a very critical zones and simply it will help you so much
with your trading technique.
simply i'll show you how to predict the next support and resistance zones that the price will make a step on it.

i use a few equations to perform on the last candle ( week candle - month candle )
and it gives me the next ( week - month ) levels .

illustration

1 - pick any candle from the chart (week - month).
2- get the ( high - low - close ) values then put these values in the next equations.
3 - draw the lines in the chart by the given values from equations .
4 - see what happens in the (week - month ) after the candle you picked.

Equations

sell zone
Sell Zone1 = 1.1 * (high - low) / 4.0 + close =
Sell Zone2 = 1.1 * (high - low) / 6.0 + close =

buy zone
BuyZone1 = close - 1.1 * (high - low) / 6.0 =
BuyZone2 = close - 1.1 * (high - low) / 4.0 =

constant value
constantBZ = BuyZone2 - BuyZone1 =
ConstantSZ
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Most traders shy away from Andrews' Pitchfork, maybe because it looks intimidating, kind of like Ichimoku Kinko Hyo or Gann Fan. The pitchfork can be an accurate tool and even more powerful when customized and combined with a few indicators.

A Brief History of Andrews' Pitchfork

Andrews' Pitchfork is based on Newton’s third law of motion. “For every action, there is an equal and opposite reaction”, some also extend this to, “For every positive action there’s a negative reaction.” So, when the market goes up, it must come down.

Roger Babson of Babson's Statistical Organization and Babson College (Massachusetts) used Newton’s third law to accurately forecast the market crash of 1929. Alan Hall Andrews was a student of Roger Babson and later a teacher of “Andrews Action Reaction”. He came up with Andrews' Pitchfork as part of his course. It’s important to note that, Roger Babson made a $50 million fortune using the third law of motion in the late 1920’s. Since then, the pitchfork has undergone many modifications such as Standard-Schiff Pitchfork and Modified-Schiff Pitchfork.

What guarantees you more wins than losses when using Andrews' pitchfork is that, price is pr…
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