Forex Trading Systems – The Top 5 Reasons to Invest in One

The increase in popularity of Forex trading systems has been nothing but extra. Every private investor that has been in the markets for even a short period utilizes at least one type of currency software trading system. In fact, research has shown us the number two reason people who enter into the forex markets do not become profitable either they do not have a high quality Forex trading system or they failed to take time to learn how to use it properly and test their understanding of the software using a free demo account provided by a Forex brokerage firm. The number one reason failed at making money in the currency markets is rather obvious; they had no idea what they were doing because they never took the time to learn Forex trading.

YOUR BRAIN IS NOT A COMPUTER:

The amount of data generated by the currency markets daily is staggering. Those statistics need to be captured, processed and distinguished into categories of what is relevant and what is of no use. It is not possible for a human to do this as efficiently as a computer.

ABILITY TO PROGRAM SPECIFIC CHARATERISTICS:

Most Forex trading systems have preprogrammed algorithms based on there initial design. The vast majority of the systems fall into one of three categories; a trend based system, a signal based system or a formula based system. The purchaser has the option of selecting or combining the techniques that they find important and inputting there own options that customize there approach towards the information they consider vital to the decision making process.

COST OF A FOREX TRADING SYSTEM:

Do to there mass appeal and the fact they are sold worldwide in vast quantities the cost of these products has dropped in recent years as the quality has improved drastically. Most of the products sell in the $ 100 to $ 200 range for a piece of software which millions were spent on the development.

UPDATING AND UPGRADES:

Most of the systems are updated and upgrade a few times a year and there is usually no cost to the purchasers. The developers of these products realize there number one selling mechanism is word of mouth advertising from happy clients and by provide the latest developments in the markets free of charge they are going to get more sales to new customers out of it.

YOUR ABILITY TO MAKE MONEY:

To put it quite simply if you do not have one you are going to find it very difficult making money in the markets. After all, everyone you are going to be competitive against is using at least one to help with the decision making process. How can you possibly process all the information as efficiently as they can if you do not have one? The answer is you can not.

As long as you purchase a top rated Forex trading system that has been on the market for a while you can be sure you will be getting a good product and value for your investment. Do not forget to take time to learn how to use the software and to learn currency trading before trading with real money and you should do fine.



Source by William R. Alheim, Jr.

Forex For Beginners – Continuation Candlestick Patterns – Will the Market Keep Trending?

Trade the trend. You must trade the trend to make money. So goes the popular saying in the forex. While you can make money trading against the trend or trading with no trend at all, the foreign exchange moves in a single direction more often than any other market in the world. So why not take advantage of it? But how do you know if a trend will continue or if it is completely done?

Candlestick continuity patterns can tell you this. Let's look at my favorite ones:

1. Symmetrical triangles

Symmetrical triangles are formed when the price is squeezing together like an accordion. Higher lows and lower highs are putting pressure on the market causing the price to almost stall. Symmetrical triangles indicate that the price will eventually break in the direction of the trend.

Now symmetrical triangles can be bearish or bullish – just depends on which way the market is moving. Wait for the market to break out of this pattern, and then enter your trade.

2. Ascending triangles

Ascending triangles are a bullish continuation pattern. They are formed when the market is making higher lows but is forming a resistance line above. Again this indicates market pressure, and generally price will break that resistance and move upward.

3. Descending triangles

Descending triangles are a bearish continuation pattern. They are the reverse of ascending formulas and indicate that the market will fall. Wait for the market to break its support and then go short.

4. Rectangles

Candlestick rectangle patterns are created when the market has begun changing – it can not break through resistance or support, so it just builds between them. When the market ranges after a strong trend, usually the price continues in the direction of the trend.

If the price were to reverse (ie the trend end), you would see a strong reaction forcing the price the other way. When you see the market changing instead, this means that buyers and sellers are comfortable with the current price, and they are just waiting for the right time to continue the trend.



Source by Christopher M. Hall