Understanding trends in Forex trading

The 5EMAS Forex System depends on understanding trends.
There are two types of market: trending and trend-less.

Trending - Steady elongated price movements with less than a 45-degree angle with occasional pauses, profit taking, or resting periods.

In a Trending market, you have:-
Uptrends - A pattern of higher highs and higher lows.-

Downtrends - A pattern of lower lows and lower highs.

Trend-less - Erratic price movements which are often steep (greater than 45-degree angle) and cannot be sustained, so must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.

In a Trend-less market, you have:-
Choppy - An erratic pattern of higher highs and lower lows.-
Sideways - A narrow pattern of lower highs and higher lows.

While up-trend and down-trend days can offer excellent trading results, choppy markets often create stop-outs, while sideways markets produce little in either direction. Your trading objective is to get into a trending market and ride until you make your target objective.

If all this sounds a bit mysterious, you will find it's all explained in the 5EMAS Forex system book. It will teach you not only how to identify trends, but when it's appropriate to trade AGAINST trends - which is so much more profitable as long as you know what you're doing! NO OTHER SYSTEM teaches you this as far as I know (let me know if I'm wrong!) If I'm right, you can do better with the 5EMAS Forex system than with any other Forex trading system or any other Forex training package. Give it a try as you can't lose with their cast-iron guarantee.

And learn more about Forex at http://www.bizwrite.co.uk/Forex/forexindex.html

Where are you going in 2008?

Hallo - I do hope you had a great Christmas - or an enjoyable time of holiday and relaxation if you don't celebrate Christmas!

Now that it's over, we can all start to think about what we achieved in 2007 and where we're going in the next 12 months. For myself, I can honestly say that the best thing I did in 2007 was get involved in Forex trading. And this is in spite of the fact that for a long time I was sure it wasn't for me. I hesitated for ages because I was nervous about taking the plunge. And to be honest, my first trades weren't all that successful! This was largely because I am a hesitant person, and time and time again I failed to take the trade when the signals were right. But I have improved and have ended the year in profit!

If you are like me and nervous about taking risks, don't assume that Forex trading isn't for you. It just means you need to find the right Forex trading system. That's why I really recommend the 5EMAS Forex system - because it's ideal for beginners AND it provides excellent Forex trading training.

If you have any questions please don't hesitate to get in touch, I will do my best to answer if I can! Also you can learn more about Forex in general at

http://www.bizwrite.co.uk/Forex/forexindex.html

How do I recognize a trend in Forex trading?

Yesterday we explained how to trade with pullbacks in market trends. Today we are going to explain more about how to recognize and predict market trends. These are some of the techniques:
Moving averages Moving averages are used to emphasize the direction of a trend. A moving average indicates the average price at two given points in time, over a defined period of time intervals. So when the price falls below its moving average, it’s a signal to sell, and when it rises above its moving average, it’s a signal to buy. There are several kinds of moving average, including simple, weighted and exponential. The exponential moving average is the most often chosen as it takes into account both the most recent data, and the entire time period, and it is the one specifically used in the 5EMAS Forex System.

Moving average convergence/divergence (MACD) - a more detailed way of using exponential moving averages to detect price swings. This technique plots the difference between a 26-day and a 12-day exponential moving average. It takes a 9-day moving average as a trigger line, so that below this would be a “sell” signal and above this would be a “buy” signal. The MACD is often used in conjunction with other indicators such as the RSI.

Relative Strength Index (RSI) This compares recent gains with recent losses to detect whether the market is overbought or oversold. The higher the number – i.e. 70 or more on a scale of 1-100 – the more overbought the market is, and the lower the number – 30 or less on a scale of 1-100 – the more oversold it is. The RSI is what is called a “leading” indicator – that is, it enables you to see what the market is about to do, and act accordingly.

Bollinger Bands These are plots on a graph, plotted two standard deviations above and below a simple moving average. The principle is that the spacing between them varies according to the volatility of the market. So when the markets become more volatile, the distance between the bands widens, and when they become less volatile, the spacing narrows. The closer prices move to the upper band, the more overbought the market is – indicating “sell” – and the closer they move to the lower band, the more oversold the market is, indicating a “buy” signal.

There are many more techniques but these are some of the most important ones. Successful Forex traders use three or four - if they all point in the same direction, it's a clear signal to trade. The 5EMAS Forex system uses very specific techniques to recognize trends and pullbacks, and you will be shown exactly step by step how to do it for maximum profit. Also you can learn more about Forex trading generally at http://www.bizwrite.co.uk/Forex/forexindex.html

More about trading pullbacks with 5EMAS Forex

As we pointed out yesterday, the unique feature of the 5EMAS Forex System - which is a different type of Forex trading system - is around trading pullbacks, and we defined what a "pullback" actually means.

Today we go into more detail about what trading pullbacks actually involves. Basically there are five stages:

1. Identifying or recognizing the general trend. For the purpose of this type of currency trading, you are looking for an up-trend.


2. Identifying the beginning of a falling back or "pullback" from the general trend.


3. Wait for the end of the pullback.


4. Use an indicator - e.g. moving averages convergence/divergence - to confirm that the pullback is really at an end.


5. Open a trade, making sure you use stop-loss and take-profit orders.

I must emphasize that to understand EXACTLY how to do this type of trading to make sure you end up in profit, you have to use the 5EMAS Forex system itself. So do take a look at it. The 5EMAS Forex system is a Forex trading system that is different from the others on the market and is specially designed to help you get into currency trading.

But in the next few posts, I will go into more detail about how to recognize a trend in currency trading, how to use an indicator, what stop-loss and take-profit orders are, etc. I know these things sound very mysterious if you haven't yet got into the (incredibly exciting!) world of Forex trading. To find out more about it go to http://www.bizwrite.co.uk/Forex/forexindex.html

Trading against pullbacks with 5EMAS

You have probably realized by now that the 5EMAS Forex system provides a unique approach to Forex trading - this approach involves trading against pullbacks.

So what is a pullback?

A pullback is a falling back of a price from its peak. This is sometimes a temporary reversal of a general upward trend. But it could be a sign of a trend reversal. So it is necessary to analyze it closely.

Tomorrow I will explain more about what "trading against pullbacks" actually involves. But just remember meanwhile that the 5EMAS Forex System is the only system that I know of that provides this approach and so using this gives you a massive competitive advantage. So do have a look at 5EMAS, and find out more about Forex in general from http://www.bizwrite.co.uk/Forex/forexindex.html

Other benefits of the 5EMAS System

Along with the basic package (which provides you with both initial training, and the actual trading system), the 5EMAS Forex System gives you:

• The 5EMAS Alert Expert Adviser. You set this up on your computer to alert you to a potential trade. This is great because it allows you to get on with other things while it is running on your computer. It will signal when there is a trade opportunity. You have to check it out yourself and decide whether or not to make the trade, so nothing happens without your decision. This REALLY DOES WORK and many people think this is one of the best features of the 5EMAS Forex System.
• Scalping system. When you are in a trade, you can supplement your profits by scalping for additional pips along the way. The manual shows exactly how to do this.

Remember these are just what you get with the basic package. You can move on to the Advanced 5EMAS Forex Trading System and the TraderBO Divergence Course at a later date and hugely increase your profits.

You can only get the full picture of what the 5EMAS Forex system has to offer you by looking at it for yourself! Give it a try - you have nothing to lose as you are protected by a full guarantee.

And find out more about Forex at http://www.bizwrite.co.uk/Forex/forexindex.html

Who is the 5EMAS Forex System intended for?

The 5EMAS Forex system is presented in three separate trading systems:

• The Standard 5EMAS Forex Trading System
• The Advanced 5EMAS Forex Trading System
• The TraderBO Divergent Course

This means the 5EMAS system as a whole is suitable for both the beginner AND the more experienced trader. If you are more experienced you are still advised to start with the Standard package and just skip the basics in the introduction. The reason why you should start with this one is that the 5EMAS is a unique system that you won't actually have come across anywhere else.

The Standard system can actually stand alone as it provides you with a semi-mechanical system to learn how to day-trade. It gives you not only an excellent Forex training, it shows you how to use basic technical indicators (see tomorrow's post for more about these) and puts these together with an entry system that is unique to the 5EMAS. Taken together these give you the highest profit probability of any Forex trading system, in most people's view. Check out the 5EMAS Forex Trading System for yourself and see if you agree.

And learn more about Forex trading generally at http://www.bizwrite.co.uk/Forex/forexindex.html