Hope you managed to grab a good scoop of pips this week – some nice moves on the GBPUSD. Will be posting some tutorials on my channel soon and working on Forex Training with new clients.

Talk soon – good trading

Annabel

We have seen a fair amount of divergence recently on the charts but does it making the right Forex trading decision easier? Well it gives you forwarning that the current trend is about to end and potentially reverse. You can then add your standard entry criteria to maximise your Forex trade.

Take a look at the Forex chart below:

Divergence on the Forex chart of GBP/USD. In the above example both RSI and Stochastics indicate the upward trend is about to come to an end with an imminent price reversal. Price continued to rise with higher highs but RSI and Stochastics indicated lower highs.

With this in mind, when trading the Forex market we can look for an entry point in anticipation of a trend reversal and a good move in the opposite direction.

If you want to find out the exact details about trading the types of set ups then you can easily grab your copy of some great trading tips, books and courses here - www.tradeforexfromhome.com

Good trading and best wishes

Annabel

This might be useful to know. Have you ever looked at the EUR/USD with the chart for USD/CHF underneath?

Have you noticed that sometimes when the EUR is strenghtening against the USD then the USD is weakening against the CHF? Sometimes it’s uncanny how these two currency pairs move in the opposite direction, naturally when the USD gains or losses against the Euro zone.

Did you know that there is a website which can give you the exact correlation between these pairs and other commonly traded currencies?

It’s called Mataf.net – here’s the link to the page you need: www.mataf.net/en/tools/correlation

If the currency pair correlates to anyother pair the reading will be 80% or greater. So you need to look for a reading of more than 80% and as close to 100% as you can get. If you enter a position on a currency pair, then you could wait for a similar setup on its correlating pair to trade in the same direction.

If the reading is -80% then the currency pair will be trading in the opposite direction to your compared currency.

Hope that helps. Let me know how you get on!

To Your Success!

Annabel

Here are 5 reasons to read around the subject of Forex trading and general economic factors.

1. Firstly factors like Retail Sales figures and GDP will move the market. If your Forex trading strategy includes trading these events and it’s a fully back-tested plan then great. If not then I would advise to close your positions before the news comes out.

2. Secondly you can gain some advantage over other traders by being informed and anticipating how the market might react to certain events. Countries like Australia and Canada are major producers of commodities. If  Australia has had good crop gorwing seasons then this might strengthen the Australian Dollar – which you could anticipate as part of your Forex trading strategy.

3. Exports. Canada exports a large proportion of the goods they produce to the US. If your research shows an increase in goods produced, then you would look to possibly buy Canadian Dollars.

4. The price of oil will have a major effect on currency prices for both oil producing countries in addition to those major consumers of oil – especially for industry purposes. Keep an eye on the price of oil as this will move the currency markets.

5. The general economic stability of countries will also move the market. As we saw last week, the European Summit was successful in coming up with a strategy to deal with the debt problems of Greece which strengthened the Euro – especially in the US session!!

Those are just a few of the factors you can look out for. Having a little more background understanding and taking a look at the bigger picture will make sure you are well informed. This way you can take advantage of potential strengths or weaknesses in the currency pairs you trade – being one step ahead of others.

There are many more tips and strategies over at www.tradeforexfromhome.com Act now and click on the link for much more!

Do you have your own top 5 watch lists for good Fundamental analysis to add to your Forex trading strategy? Add your comments below – would be interested to hear from you.

To Your Success

Best wishes

Annabel

Do you need to know much before starting your trading for the day? Can you just trade the price action without knowing whats happening ‘out there’? Well I would recommend doing the 5 things below before you start.

1. Check all economic data. You don’t want to be caught out in an open trade if a major news event is scheduled which you don’t know about. Take a look at www.fxstreet.com as the data is updated almost immediately and will send you an alert as the results come in.

2. Check to see which currency pairs correlate with each other. This means you can watch certain pairs as they move – either in the same direction or in opposite directions. If you are short on one pair you may be able to trade a long position on its opposite pair. Check out www.tradeforexfromhome.com for a great correlation chart.

3. Decide in which direction the trend is moving. Pull out to the larger time frames to understand the general direction. This is because if the direction is generally South, then a move North might just be a short-term correction before the price continues down. If you are looking for a good move, then perhaps a move North will only be short-lived.

4. Make sure you have Pivot Points, Spuurt, Resistance levels added to your charts. To a certain extent you can add a setting to MetaTrader but if not then I would recommend www.actionforex.com This means you can anticipate potential stalling points as the market moves. Fibonacci, Elliott Wave etc are all good ways of anticipating market moves, pullbacks and reversals.

5. Read reports of general market sentiment so you can better understand market moves. Sign up to a few newsletters and read them before you start trading. Don’t take them literally but it will give you a good sense of potential areas of support/resistance which may help you make better trading decisions.

I guess the above is there so you can arm yourself with a general over view of the market without getting yourself involved with too much information. If you find out that general opinion is that the EURUSD has strong support at 1.3550 then if the price stalls around this area, you will know why!

For more of the same tips, advice, strategies etc head over to www.tradeforexfromhome.com

To Your Success!

Best wishes

Annabel

Having lost over 20% of its value since 2007 a welcome resurge has recently been seen in the Forex trading market. But how will the currency fair moving further into the year?

Alot depends on the strength of the economic recovery and ofcourse the looming general election in which we may see a change of government.

So how does that effect your Forex trading?

At the end of the day if the UK once more becomes a favourable place to invest, then it all looks good for the GBP to continue strengthening against the majors.

Take a look at the report below which has been written by the staff at www.actionforex.com

www.moneyshow.com

Enjoy the read.

To Your Success!

Best wishes

Annabel

This article isn’t a rock solid Forex trading forecast – no one can 100% predict market movement! But you may find these currency pairs are something you want to add to your ‘watch list’.

Most Forex trading strategies originate from historical levels.

Some analyists have been looking and reading charts for many years and it here we can gain from other’s knowledge and greater years in the industry.

As we know Forex trading isn’t an exact science so learning some tips from others can be invaluable. But be careful of too much ‘noise’ to take you away from your own Forex trading strategy. Take a look at the article link below and see if you want to add the currency pairs to your trading list.

Click on this link – www.moneyshow.com

Good luck and let me know how you get on!

To Your Success!

Annabel

Have just found this post regarding Forex trading strategies. It discusses the importance of identifying trends on your charts and using them to make your trading decisions.

This makes perfect sense and will avoid stumbling around other trades which won’t provide maximum returns for your broker account.

The best form of trading is to pick out good quality, high probability trades which stack the odds of a successful outcome in your favour.

Ofcourse, Forex trading is no exact science and you will have losing trades. Its just that if you trade good quality trades, then your confidence will grow and you will continue to make the right decisions keeping to your trading plan.

Hope that helps – oh here is the link to the article:

http://www.learntotradethemarket.com/forex-trading-strategies/forex-trading-strategies-2/

Happy trading – To Your Success.

Best wishes

Annabel