BUY EURUSD NOW, 17TH MARCH 2009

EURUSD is to bought now after  breaking out from a consolidation channel. It's bullish.

Buy EURUSD @ 1.3000 and take profit at 1.3065, place stoploss @ -55 pips

HAPPY TRADING

 

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CLOSED GBPUSD

Our Open Position in GBPUSD has been closed.

REASON:  RSI in the 4hour chart and 1hour chart have moved to below 50 and to below a major support 80EMA on the 4hour chart. 

TIME TO BUY EURUSD, 17TH MARCH, 2009

GET READY TO BUY EURUSD AND CONTINUE BUYING GBPUSD

The EURUSD pair is currently trading inside a consolidated triangle pattern in the 1HOUR chart. Luckily for us, this type of triangle is an ascending one showing that the price of EURUSD is going to move up once prices broke outside the triangle upwards. As a matter of fact, we hope to be buying this pair once prices broke outside this triangle from above. But if prices broke downwards, the signal is no more effective and we will forget about trading for now. You can set a buy stop order to buy above the current price at 1.3050. Take profit at 1.3100

 

Summary:  Buy EURUSD and continue to buy GBPUSD

 

HAPPY TRADING

 

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FOREX SIGNAL FOR 17TH MARCH 2009, BUY STOP FOR GBPUSD

GET READY TO BUY GBPUSD

 

The GBPUSD pair is currently trading inside a consolidated triangle pattern in the 30 minutes chart. Luckily for us, this type of triangle is an ascending one showing that the price of GBPUSD is going to move up once prices broke outside the triangle upwards. As a matter of fact, we hope to be buying this pair once prices broke outside this triangle from above. But if prices broke downwards, the signal is no more effective and we will forget about trading for now. You can set a buy stop order to buy above the current price at 1.4100. Take profit at 1.4200

 

Summary:   place a buy stop order for GBPUSD at 1.4100 and set take profit at 1.4200. stoploss is -60 pips

 

HAPPY TRADING

 

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ORDER TYPES

ORDER TYPES

BASIC ORDER TYPES

There are some basic order types that all brokers provide and some others that sound weird. The basic ones are:

·                                 MARKET ORDER
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency.

 

·                                 LIMIT ORDER
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go short if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a sell market order), or you can set a sell limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price.  In limit order therefore, we have  LIMIT BUY where one sets his platform to buy below the current price. If you wish to sell above the current price, you will use LIMIT SELL. To by above the current price, use a STOP BUY order and if you wish to sell below the current price, use a STOP SELL order.

 

 

·                                 STOP-LOSS ORDER
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.

 

 

 

Weird Sounding Order Types

·                                 GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.

 

·                                 GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.

 

 ·                                 OCO (Order cancels other)

An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.

Always check with your broker for specific order information and to see if any rollover fees will be applied if a position is held longer than one day. Keeping your ordering rules simple is the best strategy.