best forex trading robots reviews

To learn Forex trading, you need to know the best technical indicators to incorporate in your Forex trading strategy.

Here we outline a toolbox of essential indicators – and give some tips on how to use them for big forex profits. Anyone serious about making profits should include them in their forex trading strategy, so here they are.

If you want to learn Forex trading, you need to spot trends and you need to confirm entry with price momentum in your favor.

1. Trend Confirmation

Trend lines are your first clue to important support and resistance, which is the basis of all good forex trading systems.

You need to know where important support or resistance is – and you can easily spot this by drawing trend lines.

Moving averages are another great indicator to identify trends, so moving averages combined with trend lines are all that you need.

Many traders simply like to buy into support – or sell into resistance and “hope” the trade is going to go their way, if you rely on “hope” you will lose you need confirmation.

2. Indicators for Entry and Exit

When you take a currency-trading signal, you should have short-term price momentum in your favour.

If short-term price momentum is not in your favour the odds of winning are dramatically reduced.

Two great indicators are RSI and Stochastic.

Both give an excellent visual picture of the strength of price.

You can learn how to visually spot price momentum changes easily and you don’t need to understand the equation behind them – just look at the visual set ups.

Many Forex traders use Bollinger bands and MACD for timing trade signals – this is wrong – they gauge volatility – so only use them for that purpose not executing trading signals.

3. Contrary Trading Tools

Do you want to get advance warning of every major trend change?

Of course you do! Then take a look at these indicators.

1. % Bullish

2. Net Traders Position Report

These two indicators are not commonly used by Forex traders – yet they give you advance warning of all the big trends and of course the big profits.

You need to gauge when to enter (use momentum indicators) – but the %

Bullish, and Net Traders Position Report will tell you when a big move is shaping up.

Consider this fact:

Currency markets have huge trend changes when the fundamental consensus is extremely bullish or bearish – and the % Bullish measures peoples view of the market.

In simple terms when the consensus is over 80%, then price is too bullish, on the other hand, when the consensus is under 20% then price is too bearish, a trend change is therefore on the cards.

After looking at the above tool you can confirm a trend change is due further by looking at Net Traders Positions, published bi weekly by the CFTC.

It relates to the futures markets, but movements in currencies tend to mirror the set ups.

You can track hedgers – these are the real pro traders.

These traders know the fair value of a currency – it’s their living. You then compare the hedger’s positions with the speculators – who always get the major turning points wrong and trade on the emotions of greed and fear.

If you’re trading online currencies and you see hedgers going the opposite way to speculators – and this is backed up by the % bullish being over bought or oversold – then a major trend change is on the way.

It’s then time to look at your charts – in order to time an entry opposite to the majority.

In Forex markets contrary trades offer you the biggest reward for the lowest risk – and the % Bullish and Net Traders Position Report will help act on these high profit opportunities.

So now you know the best tools, which when combined with your Forex education, could really make a big difference to your bottom line up Forex trading and their all easy to understand and use, so try them and see them help your currency trading success.

One thing is for certain, most successful forex traders have forex software that they use to make them so successful in making money online. This is something that they are not even shy about talking about either, just ask them and they smile and say that it is all in the system that they are using.

Now while they all have a forex system, that search was not an easy one for any of them. Whether they designed it themselves or are using one that was already in existence, it probably burned through a lot of demo cash before finally settling on one. To make your search a little easier, here are a few forex tips to guide you along the way.

Pick the right software – one of the most important factors in choosing your forex trading software is making sure that it fits you. You need to be able to understand it and operate it if you are going to be successful with it. You may get a recommendation from and ace trader, but if you can’t operate the software, you are pretty much guaranteed to lose money.

Make sure the software has a good security program – while it is listed second here, you may want to make sure this is your first consideration. You may find a great program, but if hackers can get into your programming, it is just as bad as making bad trades. You are going to have quite a bit of information in your machine with this software that could ruin you if it were exposed, obviously not a good feature.

Great customer support – this could almost be combined with the first feature. When you have problems with the software, you must be able to get a hold of someone to fix the problem immediately. Not only should you have customer supports, but it should also be 24/7 coverage with a live operator to walk you through any difficulties that you are having.

In all honesty, the importance of all of these is pretty interchangeable, but you will probably be able to eliminate a lot of programs because of the security features so you may want to start there. You may find more that one program that you like and that is fine. That is where your demo forex account comes in and you give it a test drive. You will more than likely find that one or two or possibly all of the ones you selected do not work when you go live with them. You just have to keep searching until you find the perfect fit.

Many traders believe the market can be predicted and charts move to some higher force – their wrong. Another group believe the fundamentals drive prices and their wrong to – if you want to win with your forex trading strategy you need to understand the key factor which is…

Market sentiment

Market sentiment is the views of all the traders added up and it equals price and many people totally misunderstand its importance.

We all have the same facts to look at – but we all draw our own conclusions about what they mean and this is the price. So the fundamentals are NOT important, it’s what traders think of them en-masse which is and this is why you can’t trade breaking news.

Charts reflect the bullish or bearish sentiment to a degree – they show you the reality of what traders think – but they don’t give you clues to the future of what humans may do next – that’s why all the clever, mathematical, predictive theories DON’T work.

So how do you judge and trade sentiment?

Well there is a great tool you can use and it’s free and it’s called The Net Traders Report from the CFTC. It gives you an idea of what traders are doing in currency futures but is also applicable to cash.

Follow the Smart Money

Its real advantage is it gives you free access to what the smart money is doing and this is a huge advantage in making your forex trading strategy work.

The report shows you what 3 main groups are doing.

The commercials

These traders are the ones who do it as hedging and their not motivated by greed and fear and know fair value

Large Speculators

These are funds and big individual traders

Small Speculators

These are all the rest of the traders

The way to use the report is to watch for the commercials to sell or buy heavily, when they are opposed by both speculator groups. The commercials move slowly as their hedging and only will do so when prices have shifted to far from fair value.

The commercials have a history of being long at important market bottoms and short at market tops.

When you see big extremes you know a break is coming.

The way to use the report is to spit your set up and then move to your charts for confirmation. The Net Traders Report gives you the set up which indicates when prices have moved to far from fair value. You then wait for the indication of a turn on your forex charts – then hit it.

Normally, once the market eases the speculators will get shaken out quickly, as they scramble to get out governed by their emotions, triggering a counter trend.

The commercials are the smart money and if you want to win, you need to look at their actions – they will tell you when a market has moved to far from fair value and when greed and fear are creating a sentiment extreme.

You can then hit the big contrary trades for big profits.

It’s a simple, free tool that gives you an insight into sentiment and its an extremely powerful addition to your forex trading strategy.

There are many forex trading tools available for the modern forex traders that can really improve their profitability and make their life easier as they can analyze the forex market in a more professional way and gain more confidence in their trading.

In order to make successful trades, Forex traders need lots of information, for example the current exchange rates, which are the most evident information you can find but which is just the tip of the iceberg. A professional forex trader needs historical data as well as fresh information about political and economic conditions that could affect the behavior of currency pairs he may be trading at the moment.

Successful Forex trading is all about being able to make a good decision about whether a currency will fall or rise against another currency allowing the Forex trader to profit from those currency movements.

Most Forex trading can be characterized as speculative, this means the trader makes buying decisions based on analysis and predictions on how the market will respond to current political or economic events, and in order to be profitable with speculation the trader requires up-to-the-minute information and an analysis of current and historical conditions.

A number of forex trading tools are available to help you as a Forex trader, so you can minimize your risk and maximize your profits. For example:

Pivot Points, can be used to predict the up or down movements of currency prices. They are calculated as an average of the currencies high, low and closing prices. Pivot Points can tell you whether prices are inside the normal trading range or in the extreme trading ranges.

Risk Probability Calculator (RPC) can be used to identify trades that have more potential gain than potential loss. The RPC can also help you target exit points to end the trade.

Pip value calculators can tell you the actual profit or loss that will result from movements in the Forex markets.

Provided you have downloaded your broker’s trading station software, and once you have decided which currency pair to trade, you can log in to the trading station and then enter the desired currency pair as the current exchange rate appears on the screen. The amount of the trade is entered , this means, how much currency you are willing to buy. Some brokers may even give you the option of specifying the amount you wish to risk, automatically setting a ’stop loss rate’ into your order.

After the details of the trade are entered, you will be taken to a confirmation screen where you can accept the current price on screen. You may be given the option of ‘freezing’ the quoted price, meaning the price of your transaction is exactly what you see on screen without any slippage. Accept the rate and you have placed your trade.

With the use of software tools you can enter a ’stop loss rate’ to automatically sell the currency if it falls below a certain rate, avoiding possible losses and giving you peace of mind. But this is not all the automation you can get, you can also enter a ‘take profit rate’ to automatically sell the currency when it reaches a certain level. This way you won’t need to monitor your account all day in order to take profits once an acceptable number of pips have been earned.

Forex signal trading gives the traders one more analytical tool.

Forex signal trading has emerged as an important support service for forex traders. This service is run either by forex brokers or by independent analysts who monitor and analyze the forex market. These analysts identify forex trends using several indicators. Based on this analysis, they suggest profitable entry and exit points to forex traders for a fee.

Most analysts offer signals for only the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF. However, there are some specialty services also that offer signals for the lesser-traded pairs.

The charges for these services vary from analyst to analyst, and depend upon the range of services bought by the trader. For instance, a basic subscription service offers email alerts of entry/exit opportunities to traders while a more comprehensive service provides this information through SMS, cell phone or pager alerts also.

Some signal trading services also provide live charts for the traders to make their judgment. Irrespective of the level of service, a trader should be prepared to pay a minimum subscription fee of $100 a month.

However, the success of a forex signal service should not be measured in isolation or over a relatively short period of time. The traders should use these signal services only as an extra indicator, as one more tool in their trading toolbox. A good way to judge the analytical skills of signal trading service is to ask for historical data. This can expose the claims of trading signal service.

The biggest benefit of signal trading services is that they save the traders the bother of analyzing or crunching data. However, this does not mean that the traders should depend upon them exclusively to maximize their profits or minimize their losses. This should happen only when the traders develop sufficient trust in certain signal trading services. Otherwise, the traders should use their own judgment and market grapevine to decide the trades.

While Forex signal trading gives the trader’s one more analytical tool, each trader must use his or her best judgment before making the trade. Forex signal trading software is a great tool, but should never be used solely to base the trade decision upon. You would be better off relying on your past experience and gut instinct when analyzing signal trading data. You will also want to rely on your basic fundamental analysis. Forex traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.