Forex market is an ever exciting and dynamic trading environment. Currencies are traded 24 hours a day, from Sunday afternoon EST* (Eastern Standard Time) to Friday afternoon EST. Traders new to the world of foreign exchange tend to think that since the market is open 24 hours a day, they may trade whenever they choose during the day. Although this preconceived idea is actually true, however some hours present better opportunities than others. By better opportunities, we mean of course potentially greater profit.

So what are the most suitable forex trading hours and why?

Usually, the best time to enter forex markets is when large volumes of currencies are traded. At those hours, traders can take full advantage of forex benefits. Those hours are usually the time when the forex market is the most active and has thus the largest volume of trades and the biggest pip movements. It is when currencies are the most active that traders have a better chance of making some profit. Slow markets offer little chances of profit and therefore, forex traders usually stay out of them. Find out how you will never miss out on another profitable trading opportunity again…

When do forex trading times overlap?

From the above table, we can see that New York and London overlap from 8 am to 12 am (EST), Sydney and Tokyo overlap from 7 pm to 2 am, London and Tokyo markets overlap one hour, from 3 am to 4 am.

What does this mean?

Trading EUR/USD, GBP/USD, or USD/CHF between 8 am and 12 am (EST) can lead to good results since Europe and America are both active at the same time. Another good time to trade is from 1 am to 3 am EST. As you can see in the table above, at that time, European markets are waking up while Asian markets are closing, offering good trade opportunities. The same goes for the 7 pm to 10 pm EST time period, when the Asian and Australian markets overlap. Also, you have probably noticed that from 4 pm to 6 pm EST, there is no interesting overlap. That’s when the US markets close without overlapping any other large market. At those hours, the volume of trades is much lower, offering less great trade opportunities.

While some hours of the day are busier than others, price fluctuation varies from day to day. As a general rule, some days of the week are busier than others. Generally speaking, it is during Tuesday and Wednesday Forex Trading Sessions that we see the widest pip variation for all majors. Find out how to take your forex trading to the next level and make money while you sleep…

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Bollinger Bands consist of:

• A middle band being an X-period Moving Average
• An upper band of N times the X-period Standard Deviation (SD) above the middle band
• A lower band at N times the X-period SD below the middle band

Typically we plot the Bollinger Bands on a 20-day period (X = 20) and width of 2 SDs (N = 2). As a default choice, the middle band is a Simple Moving Average (SMA) but sometimes an Exponential Moving Average (EMA) is used too.

What does it tell you?

Bollinger Band is an indicator of Volatility for the underlying currency pair. Statistically speaking, a 20-day period 1 SD Bollinger Band (also referred to as Bollinger Band (20,1) ) tell us there is a 68.27% chance that the price will stay within the upper and lower band in the next 20 days. Similarly, a 20-day period 2 SD Bollinger Band (or Bollinger Band (20,1) ) implies a 95.45% chance that the price will trade between the upper and lower bands in the next 20 days.

Narrow bands indicate low volatility, suggesting there will soon be a large price breakout or movements in the next 20-day period. Conversely, wide band indicate high volatility, suggesting that the chance of a large price movements is unlikely in the near term. (See chart below) In addition, the upper and lower bands also act as a strong area of resistance and support.

How to profit from it

Most traders buy when price touches the lower Bollinger Band, which implies it is oversold, and sell when price touches the moving average or the middle band. And short sells when price touches the high band (implies overbought) and buy it back when it touches the middle band. (See chart below) However, it is suggested that to use Bollinger Bands together with other technical indictors such as the Relative Strength Index (RSI) to determine the price trend before placing a trade.

I hope this post helps with your online forex trading. Stay tune, as we will cover more advanced trading techniques using Bollinger Bands.  If you want to trade like Forex Pro, then you must check out Forex Avenger - It’s by far the Best Forex Trading Course Online!

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This post is about the forex trading strategy of the Australian Dollar against the US Dollar. Forex market anticipated RBA’s ’surprise’ rate cut which triggered a huge rally in AUD/USD. Here I discuss two forex trading strategies to capitalize on this opportunity for those who wish to achieve financial freedom by trading forex online.

RBA’s Decision
On the day of Melbourne Cup (An Australian tradition for those unaware), Governor of the Reserve Bank of Australia (RBA) - Glenn Stevens gave the forex market another surprise by cutting interest rate 25 basis point more than expected. The decision was heavily influenced by the turbulence experienced last month in the world financial markets as we witnessed Australian dollar swinged between 0.8000 and 0.6000. Despite, inflation for the month peaked at 5% (2% above RBA’s target range); RBA believes that the disinflationary force will soon kick in and hence will place more focus on easing the domestic borrowing market. (See RBA’s statement)

Market Reaction

Surprised by forex market’s reaction, AUD doubled tested the support level at 0.6590 and soon began a massive rally which was trading above the 0.6855 resistance level. Some analysts see this rally of AUD as a reward for RBA’s proactive steps to prepare the nation for the economic slowdown. Overnight in US, stock trading gained 3.3% on Election Day as Oil and Gold also gained significant level and hence pushed AUD trading even higher, attempting to break two week high of 0.7000.

Forex Trading Strategy

Short term forex trading strategy for AUD is purely based on technical analysis. I would watch for whether forex trades above the 0.7050 level, this potentially will began another uptrend heading the 0.7239 level. On the downside, if AUD breaks the recent backed support level of 0.6855, then we could be soon seeing it trading at 0.6500 again.

Medium term forex trading strategy, SELL AUD/USD. More aggressive rate cuts are very possible by the RBA in the future. As the forex market view the Australian economy as a Commodity nation which dependent on China’s resource demand is bound to suffer further. Second, as more bad economic news yet to come globally, we will soon see volatility back in the forex market which will lead to unwinds of carry trades by the hedge funds and bid up the safe low-yield currencies like the US dollar and the Japanese Yen.

If you want to learn how to take your forex trading to the next level, then click here to find out how.

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Some traders asked me for how long one should backtest a trading system. There’s no easy answer, and there are a few factors that you need to consider when determining the period for backtesting your trading system. It’s not important how long you backtest a trading system, it’s important that you receive enough trades to make statistically valid data. If your trading system generates 2 trades per day, or 300 trades per year, then a year of testing gives you enough data to make reliab…   Read more…

offshorestocktrades - offshorestocktrades.com

I am not the admin of the program. Quote: Our program is intended for people willing to achieve their financial freedom but unable to do so because they’re not financial experts. OffshoreStockTrades is a long term high yield private loan program, backed up by Forex market trading and investing in various funds and activities. Profits from these investments are used to enhance our program and increase its stability for the long term. Plans: 35% daily for 3 days Plan Spent Amou   Read more…

World Financial Group Events

Daily Market Commentary for August 21, 2008 from Millennium-Traders.Com Events going on around the world create an adverse reaction in the markets whether it be Stocks, Futures or Forex. Uncertainty in these ongoing world events, tend to move the markets in one direction or another and, those movements may consist of a general, flat lined direction. (read more) At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the se   Read more…

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Technicalities

Now I’m not a very ‘techi’ kind of a guy so if this thing was going to be too complicated to use then let’s just say I would have wasted all of my money. Strangely enough on the contrary it was reasonably easy to use. It took a while to figure out a couple of things but I think that’s only because I’m one of those people that never reads the user manual and instead I always jump right into the deep end.

I’d say it took me a day to sit down and figure out how to get it working the way I wanted but after that it was smooth sailing

Platforms?

Ok so thankfully Forex Killer works for every platform so there weren’t any major errors there. Of course I don’t have the time to go through and test it out on other platforms but I can’t see why it wouldn’t work on most.

Signals

Forex Killer is of course a trading signal generator, so it’s purpose is to determine signals for you and allow you to make up your mind on whether or not the trade is going to be a successful one. When I first used it I noticed it found a bunch of signals that already stood out to me before hand but after getting to understand how it was supposed to work I started to notice it picking up on signals which I
wasn’t able to foresee.

My Experience

Probably the biggest change I’ve noticed after my experience with using Forex Killer is the fact the amount of time I would normally spend looking for a good trade has been reduced ten-fold. Now I wouldn’t call myself a pessimist, but more of a realist. I see right through scams and that was my original opinion of this software.

A good friend of mine put me onto Forex Killer and I know that a lot of people are using it, in fact I believe it’s one of the biggest selling Forex Trading tools on the market today. I was really looking forward to writing something bad in this review but so far my experience has been really good. I’ll keep you posted on any new things related to the software in the future.

I guess you can now, that my mind has been changed and I’m starting to foresee a major growth in my monthly income now that I have Forex Killer in my arsenal. I’ll have to give it a 9/10.

If you want to read some more about what’s involved in Forex Killer, then click here to go to the official website.

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The majority of these platforms work in the exact same manner. They basically allow you to make your trades online, plus give you the option of analyzing the market to help determine how it will act in the future.

When you first start using a forex trading platform, you’ll most likely find it incredibly confronting and difficult to understand, but the more you use it, the more you will start to become familiar with the functions available.

Mobile Devices

Most up to date forex trading platforms now come with the ability to work on your mobile phone. This is great for those traders on the move who find it difficult to get to a computer. Again most platforms cator for this option, but just incase, double check to see it’s mobile capabilities before you buy it or open an account with a broker.

Inbuilt Strategies

Again most forex trading platforms also come with an inbuilt strategical analysis tool which will allow you to follow a certain trading method on basically autopilot. You can also create your own strategies for your platform to run off, pretty important tool.

OK so when it comes to choosing the right forex trading platform, the fact of the matter is, they are all different, but they all do the same thing. Just make sure you keep using the first one you start with.

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Forex Trading Education

Like with everything educating yourself is by far the most important first step you can take. When trading in the forex market, educating yourself is even more important as there is ofcourse so much to learn before you can start building systems to make money.

Jumping straight into the deep end can potentially be distratrous with a venture such as this. It’s the same with all types of trading, you don’t want to make a poor decision and invest your money into a trade that could lose you more money than you can afford.

There is a lot of free information out there, but if you are really serious about online forex trading then you have to take you time and spend a bit of money educating yourself from some people who have taken the time to explain how they went about making money on the Forex market.

By all means do some simple research firstly if you know nothing about how the Forex market works. Hopefully you don’t need me to tell you that trading on the forex market means you will be trading between different currencies from around the world!

I’ll go into deeper details in my later posts, as well as give you some great tips on developing systems you can use implement time and time again to produce real results, but before I do so I just want to give you a bit of a lowdown on the process you need to go through when going about your online forex trading venture.

Forex Trading Broker

Eventually when you are at a level of knowledge where you think you know enough to give it a real shot, you’ll need to sign up at an online broker. You’ll use this broker to make your trades. When you sign up to a broker you will be provided with an online forex trading software which allows you to make calculations to help determine if a trade if worth making between two particular currencies.

I will go into more detail in my later posts about this and other things you can do to help improve the chances of making a successful trade, but for now I’ll just keep going on with the process you will need to follow.

Taking it to the Next Level

Once you have made your first successful trade and you’ve also lost bit of money, ie. had some experience in online forex trading, you’ll then need to find yourself a system or process that works and stick to it.

Too many traders are all over the place. They try this and if it doesn’t work they move onto something else. My advice to you is to use someone else’s system that has been proven to work and use that for yourself. You’ll thank yourself in the end!

OK hope to see you here often, I’ll keep the tips coming.

Happy Trading!

If you want to learn how to take your trading to the next level, then click here to find out how.

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