Best Forex Trading Info

Forex Trading Tips And Tutorial

Category: Best Forex Broker (page 1 of 2)

The Best BITCOIN Forex Broker To Trade

Invest in the future, trade Bitcoin with FBS – Fastest Growing Forex Broker Online.

Bitcoin is the digital currency of the future; its rate increases rapidly and influences the global economy investment climate. Start trading Bitcoin Instantly with FBS and build a profitable and lucrative future for yourself!

Continue reading

Etoro Captures World Finance Award For Most Innovative Trading Platform

Etoro Snags a World Finance Award for Most Innovative Trading Platform 2010 And Growing into 2017.

The eToro platform, already a trader favorite, has now received a nod of appreciation from the financial trading industry as a winner of one of World Finance’s prestigious annual awards.
Continue reading

10 INTERESTING FACTS ABOUT FOREX BROKERS

While everyone’s talking about the actual Forex trading, have you ever wondered about the Forex brokers themselves. They are a big part of the retail Forex market and they hardly get a mention. In that spirit, I thought I would mention a few words about them, here goes:
They don’t make as much as you think

You would imagine that if the traders make so much, then the brokers must make a lot, but no. As a picture, imagine the sales agent that markets million-dollar houses, do you think they make as much as the people buying the houses? That’s what the Forex broker does.
The devil is in the details

A broker will advertise their best features on the homepage, but the less attractive aspects will be hidden. To find these, you have to look deeper and not be fooled by the lucrative offers you first see.
Many of them are cheats

Finding the best broker is difficult among the many brokers in the sea that is the Forex market. Many of them will try to take your money, or deny your withdrawal request. In your search, you will need to look for more top rated forex brokers until you find the one who doesn’t have any dirty tricks. Use reliable websites about forex brokers and learn more about best companies to trade with on the Market.

They also make trades

A Forex brokerage works just like a bank whereby they use the customers’ deposits to make their own trades and investment.
Most of them are based in Europe

There are over a hundred Forex brokers in the world, but most of them are headquartered in Europe. Not only does the region accommodate the largest proportion of the Forex market, a report by the ECB shows it’s also the most active region, followed by Asia. The US market has a lot of restrictions, and the people are more used to the stock market.
A few brokers handle the most Forex transactions

The same report by the ECB also showed that just 10 brokers handle 85% of the daily Forex volume worldwide. The rest have to compete for clients, which is why they don’t make a lot, but the ones at the top have wonderful privileges.
Their operations vary

Forex brokers operate in 2 main ways, either by creating the market or transferring the trades to a liquidity provider. The former is risky because the broker is betting against their clients, creating a conflict of interest. As for the latter, the broker makes a profit either way, this way they have no interest in your earnings and can be unbiased.
Brokers pay taxes

With the exception of the US, retail traders aren’t taxed for their winnings, but the brokers are always taxed. Some countries have less restrictive laws, and these attract the largest number of Forex brokers. For example, Cyprus where corporate tax is 12.5% compared to, say, the UK where the tax is 20%.
They don’t own the trading software

The Forex trading platforms you download to your smartphone, tablet or computer is most likely just leased. There are companies that develop these software, and the Forex brokers only pay an annual fee for the license. Some brokers have their own proprietary software, though, but they often also offer the leased software too because they are more popular.
Most of the extra products offered are derived

The brokers will often tout about allowing traders to trade indices, stocks and commodities, but these are usually in the form of CFDs. You don’t actually own the stock or commodity, but rather only betting on their price movements.

By Martin Moni

A Comprehensive Forex Broker Register

A comprehensive forex broker list includes investment banks with dealing rooms, commercial banks with treasury operations, and online brokerages that serve a larger market. The investment banks with forex trading capabilities include Morgan Stanley, Merrill Lynch, Goldman Sachs, Salomon Smith Barney, Lehman Brothers, Credit Suisse First Boston, Deutsche Bank, JP Morgan, Prudential Securities and Bear Sterns.

Some of the brokerage services are not directly accessible for all customers. For example, inter-bank market dealers and treasury operations in commercial banks handle large customer orders themselves.

The top commercial banks in the Forex Broker List, having inter-bank and treasury operations, are JP Morgan Chase Bank, Bank of America, CitiBank, Wachovia Bank, Wells Fargo Bank, Fleet Bank, US Bank, HSBC Bank, Sun Trust Bank, Bank of New York, State Street, Chase Manhattan Bank, Key Bank, Branch Bank, PNC Bank, Lasalle Bank, South Trust Bank, MBNA America Bank, Fifth Third Bank.

The online forex broker list of smaller forex accounts sees new entrants almost on a daily basis.

The online forex broker list includes Forex Capital Markets, MG Financial Group, CMS Forex, Global Forex Trading, GCI Forex Direct, Forex.com, GAIN Capital, Real time Forex SA (Geneva), Global Forex, Commerce Bank and Trust, FX Solutions, Forex MHV, swissDirekt (Swiss), Goetz Financial Forex, NY Broker Borsentermin AG, Act Forex, Online Trader, Shield FX Online Currency Trading, Forex Trade Signals, CMC Group PLC, Foreign Currency Direct Limited (UK), FX Advantage, FXCM, Forex Millenium, ACM REFCO, REFCO Spot, Easy Forex, Online Forex Trading Inc., Lincoln Corporation, Global Trade Waves, Ltd., and CIBC FX Web Dealing.

The Basics Of Forex Broker Selection

Before engaging in Forex trading, you should carefully examine the environment. The risks and money can be very high and therefore should not be neglected. Not all investments are profitable; similarly, not all investors are suited to the Forex market. If you are uncertain, you can ask for the advice or help of a Forex broker.

Numerous Forex brokers are available in the market and a careful selection must be made. Intensive research should be done to have knowledge of the reputation and experience of the broker. These two factors are great points to get a good Forex broker. Here are some of the other things that should be looked upon when selecting a broker:

Most Forex brokers are connected to large lending or bank institutions. Look for the quality of the institution a broker is tied to. The quality of the institution can represent the credibility of the brokers.

Brokers should be registered under FCM or Future Commission Merchant which is involved in the acceptance or solicitation of orders and future delivery through contract markets.

Spread is the difference between the selling price and buying price of a currency. Spreads are calculated in pips. Brokers make money through spreads so in simple terms, the greater the spread, the greater the spread a broker can gain. When all else is equal go for the broker who has low spreads.

Leverage is the sum of money a broker is willing to lend you for trading. It is expressed as ratio between your actual capital and the sum of capital available. For example, the ratio 200:2 means that a broker will lend you $200 for every $2 actual capital. Leverage is important in Forex trading and in any trading.

Forex brokers offer various trading packages or as often called in the trading market, trading platforms. Trading platforms can be composed of technical analysis, real time news, technical charts, economic calendars and data for trading systems. Request a free trial of these platforms to have a better grasp of their trading processes.

The types of accounts each broker carry are also important factors in choosing a reliable Forex broker. They can have mini, standard or premium accounts that require different amount of capital.

Also dont be overly concerned with leverage because it can be a double-edge sword. Remember to asks lots of questions and compare the answers with other brokers you are checking out. Take your time in choosing a Forex broker that you feel comfortable with and it will pay off for you in the long run.

Forex Brokers: What You Get For Your Money

The majority of the Forex brokers do not charge commissions. They are remunerated by revenues from their activities as currency dealers, including earnings from buying, selling, interest on deposited funds, converting and holding currencies, and rollover fees.

If you think that, because Forex brokers do not charge commissions, they are working for free, you need to go back to Forex school. Forex brokers make their money from you, by selling you currency at one price and buying it back from you at a lower one. The difference in the prices is known as the spread and it can mount in a hurry. How can you determine a spread?

Understanding The Spread

You may have thought a pip meant is a fruit seed, and you would have been right. But in the 21st century, the pip is far more widely known as the smallest monetary increment, usually one one-hundredth of a percent. On the Forex market, currencies are priced to the fourth decimal place, and that fourth decimal pace is thepip. Its also known as a basis point.

Forex brokers make their livings in pips. The number of pips they charge per trade is known as their spread. Some Forex brokers charge the same spread no matter what the trade, and other Forex brokers charge a variable spread. While a variable spread can look enticingly small in a slow market, it will not be available when the Forex trading begins to fluctuate, because the Forex broker will raise his spread.

You can hook up with Forex brokers through major banks or investment firms. They are regulated by the Commodity Futures Trading Commission and they are registered with the Futures Commission Merchant. But the Internet has caused a proliferation on online Forex brokers, who will provide traders the technology necessary to trade. They have opened the Forex market to million of small investors who may lack the capital and understanding to have any chance of succeeding.

What To Expect From Your Forex Brokers

If youre working with Forex brokers, and you should be, your have the right to expect their offices to be available around the clock. The Forex market never sleeps, and even if you are placing a trade in the middle of the day, it might be the middle of the in the hemisphere where your Forex brokers office is located.

If you need to get out of your trade in a hurry, you should be able to depend on someone being at the other end of the phone. And by the way, always make certain with your Forex brokers that you can close a position over the phone. If not, a power outage hitting your PC, or a failed Internet connection can spell disaster.

Before you sign on with any firm of Forex brokers, take the time to do some background checking. Not all Forex brokers have the financial underpinnings to hold money in reserve if their trades go wrong and their customers want to cleanout their trading accounts. Your Forex broker should be open about his companys financial condition and history, and be able to provide documentation of his claims. If he cant or wont, take your business elsewhere.

And before you commit any money to any Forex brokers, use their online sample trading features to decide which programs are best suited to your trading style. It costs nothing, and will give you confidence that in the fast moving world of Forex trading youll be able to keep up.

A Forex Broker Is Your Best Friend

If you traded in the Forex market before or if youre still trading now, you may have heard the term Forex broker a lot of times. However, as an individual trader, you may want to know what is a Forex broker and what they do.

Forex brokers are individuals or companies that assist individual traders and companies when they are trading in the Forex market. These individuals can really give you that extra edge you need in order to be successful in the Forex market. Although they will be trading your funded account, all the decisions are still yours to make if you want to.

Forex brokers are there to assist you with your trading needs in exchange for a small commission from what you earn. Here are some of the services that a Forex broker can give you:

A Forex broker can give you advice regarding on real time quotes.
A Forex broker can also give you advice on what to buy or sell by basing it on news feeds.
A Forex broker can trade your funded account basing solely on his or her decision if you want them to.
A Forex broker can also provide you with software data to help you with your trading decisions.

Searching for a good Forex broker can prove to be a very tedious task. Since there are a lot of advertising in the internet about Forex brokers, Forex traders get confused on which Forex broker they should hire. With all the Forex brokers out there that offers great Forex trading income and quotations, you will find it hard to choose a good and reputable Forex broker.

With a little research, you can find the right Forex broker who can be trusted. If you lack referrals for Forex brokers, you can try and do a little research of your own. The first thing you need to find out about a particular Forex broker with the amount of clients they serve. The more clients they serve the more chances that these brokers are trusted. You should also know the amount of trades these brokers are conducting.

Knowing the brokers experience in the Forex market is also a great way to determine if he or she is the right broker to hire. Experienced Forex brokers will increase your chances of earning money from the Forex market.

If you have questions or complaints, you should call or email the company and ask questions regarding their trading system. You should never be uncomfortable doing this. Besides, they will be the one who will manage your money. And, it is your right to know about what they are doing with your money.

When choosing a Forex broker, you should also consider their trading options. You should also know that Forex brokers are different from what they can offer you. They differ in platforms, spreads, or leverage. You have to know which of the trading options is very important to you in order to be comfortable when you trade in the Forex market.

Most online Forex brokers offer potential clients with a demo account. This will allow you to try out their trading platform without actually risking money. You should look for a demo platform that works just like the real thing and you should also determine if you are comfortable with the trading platform.

Look for the features you want in a trading platform in order for you to know what to expect if you trade with them. If you are comfortable with a trading platform, you should consider trading with them, and if you are not, scratch them off your list. This is a great way to test their trading platform and not risk your money.

If a Forex broker is not willing to share financial information about their company, you shouldnt trade with them because they are reluctant to share company information. They should answer your questions regarding on how they manage their clients money and how they trade that money.

Always remember that if you see an offer thats too good to be true by Forex traders, it probably is too good to be true. The Forex market is a very risky place to trade and Forex brokers must tell you that there are certain risks involved when trading in the Forex market. Avoid hiring a Forex broker who says that trading in Forex is easy and a very good money making market with very low risks.

These are the things you should consider when you look for a Forex broker. If you find that right broker, you can be sure that you can really earn money.

Easy Forex Registration For All Types Of Accounts

Easily Register Your Forex Account With The Best Forex Broker In The World And Start A Profitable Forex Trading Investment.

Registration Account FAQ:

HOW DOES DEMO ACCOUNT DIFFER FROM A REAL TRADING ACCOUNT?

With Demo-account, you can learn Forex market trading, master and test your own trading strategies and expert advisors online absolutely free of charge. Trade under real trading conditions on virtual funds.

HOW CAN I OPEN AN ACCOUNT?

1. Click the link “Open Live account”.

2. Enter the data required for account registration. 3. Click the button “Open an account”. 4. Enter the single-mission password sent to your via e-mail and click the button “Open an account” again. Please, enter correct data, exactly matching your official documents.

HOW CAN I VERIFY MY ACCOUNT?

Verification is necessary for work safety, prevention of unauthorized access to personal data and funds stored on your FBS account, smooth withdrawal, and for getting 123$ no deposit bonus.

1. Choose Verification section in your Profile settings (green button near your name in the upper left-hand part of the screen) or follow this link.

2. Fill in the necessary fields. Please, enter correct data, exactly matching your official documents.

3. Upload color copies of your passport or government issued ID with your photo and address proof in ‘jpg’, ‘jpeg’, ‘png’, ‘gif’ or ‘pdf’ format of a total size not exceeding 5 Mb.

4. Click the button “Send request”. It will be considered shortly after, the maximum time of consideration being 24 hours. In case your request is declined, you will receive a notification to your e-mail address; the reason of decline will be stated in your Personal area.

WHO CAN BECOME A FBS CLIENT?

Citizens of all countries, except the USA, who are at least 18 years old can become FBS clients.

HOW MANY ACCOUNTS CAN I OPEN?

You can open one account of each type: • Cent, • Micro, • Standard, • Zero Spread, • Unlimited. In order to be able to open up to 10 accounts of any type, you need to fulfil the following conditions: • verify your Personal area, • change confirmation method from e-mail to sms, • make sure that the total deposit to all accounts in your Personal area is 100$ or more.

HOW CAN I CHANGE MY NAME GIVEN AT REGISTRATION?

In case your account is not verified and has not been deposited yet, you can change your name yourself in your Personal area on the Profile settings page. To do it, please, click on the button “Change” near the name, enter the correct data according to your passport / ID card, and click on “Save”. FBS company strongly recommends you to give only veritable data at registration. If the option of name change is not available in your Personal area, please, contact FBS Support Team.

Bollinger Bands Indicator Tutorial

BOLLINGER BANDS INTRODUCTION,TUTORIAL AND GUIDE:

Bollinger Bands are applied directly to price charts, providing a gauge for how strong a trend is, and spotting potential bottoms and tops in stocks prices. Band width fluctuates based on volatility; the ability for Bands to adapt to changing market conditions makes it a popular indicator amongst traders. To use Bollinger Bands effectively, we must understand how they work, their trading applications, and pitfalls.

WHAT ARE THE BOLLINGER BANDS?

Bollinger Bands® are a volatility based indicator, developed by John Bollinger, which have a number of trading applications.

There are three lines that compose Bollinger Bands: A simple moving average (middle band) and an upper and lower band. These bands move with the price, widening or narrowing as volatility increases or decreases, respectively. The position of the bands and how the price acts in relation to the bands provides information about how strong the trend is and potential bottom or topping signals.

Bollinger Bands are used on all timeframes, such as daily, hourly or five-minute charts. Bollinger Bands have two adjustable settings: the Period and the Standard Deviation. The Period is how many price bars are included in the Bollinger Band calculation. The number of periods used is often 20, but is adjusted to suit various trading styles.

The Standard Deviation is typically set at 2.0, and determines the widths of the Bands. The higher the Standard Deviation, the harder it will be for the price to reach the upper or lower band. The lower the Standard Deviation the easier it is for price to “breakout” of the Bands.

Bollinger Bands denoted (20,2) means the Period and Standard Deviation are set to 20 and 2, respectively.

The indicator is calculated using the following formula. First calculate the Middle Band, then calculate the Upper and Lower Bands.

Middle Band = 20-day simple moving average (SMA).
Upper Band = 20-day SMA + (20-day standard deviation of price x 2).
Lower Band = 20-day SMA – (20-day standard deviation of price x 2).
Where SMA = the sum of closing prices over n periods / by n.

Figure 1 shows how Bollinger Bands looks on a chart as they move and adapt with price.

22 Bollinger Band Rules

Bollinger Bands provide a relative definition of high and low. By definition price is high at the upper band and low at the lower band.

That relative definition can be used to compare price action and indicator action to arrive at rigorous buy and sell decisions.
Appropriate indicators can be derived from momentum, volume, sentiment, open interest, inter-market data, etc.
If more than one indicator is used the indicators should not be directly related to one another. For example, a momentum indicator might complement a volume indicator successfully, but two momentum indicators aren’t better than one.
Bollinger Bands can be used in pattern recognition to define/clarify pure price patterns such as “M” tops and “W” bottoms, momentum shifts, etc.
Tags of the bands are just that, tags not signals. A tag of the upper Bollinger Band is NOT in-and-of-itself a sell signal. A tag of the lower Bollinger Band is NOT in-and-of-itself a buy signal.
In trending markets price can, and does, walk up the upper Bollinger Band and down the lower Bollinger Band.
Closes outside the Bollinger Bands are initially continuation signals, not reversal signals. (This has been the basis for many succeuful volatility
breakout systems.)

The default parameters of 20 periods for the moving average and standard deviation calculations, and two standard deviations for the width of the bands are just that, defaults. The actual parameters needed for any given market/task may be different.
The average deployed as the middle Bollinger Band should not be the best one for crossovers. Rather, it should be descriptive of the intermediate-term trend.
For consistent price containment: If the average is lengthened the number of standard deviations needs. to be increased; from 2 at 20 periods, to 2.1 at 50 periods. Likewise, if the average is shortened number of standard deviations should be reduced; from 2 at 20 periods, to 1.9 at 10 periods.
Traditional Bollinger Bands are based upon a simple moving average. This is because a simple average is used in the standard deviation calculation and we wish to be logically consistent.
Exponential Bollinger Bands eliminate sudden changes in the width of the bands caused by large price changes exiting the back of the calculation window. Exponential averages must be used for BOTH the middle band and in the calculation of standard deviation.
Make no statistical assumptions based on the use of the standard deviation calculatio in the construction of the bands. The distribution of security prices is non-normal and the typical sample size is most deplyments of Bollinger Bands is too small for statistical significance. (In practice we typically find 90%, not 95%, of the data inside Bollinger Bands with the default parameters)
%b tells us where we are in relation to the Bollinger Bands. The position within the bands is calculated using an adaptation of the formula for Stochastics .
%b has many uses; among the more important are identification of divergences, pattern recognition and the coding of trading systems using Bollinger Bands.
Indicators can be normalized with %b, eliminating fixed thresholds in the process. To do this plot 50- period or longer Bollinger Bands on an indicator and then calculate %b of the indicator.
BandWidth tells us how wide the Bollinger Bands are. The raw width is normalized using the middle band. Using the default parameters BandWidth is four times the coefficient of variation.
BandWidth has many uses. Its most popular use is to indentify ‘The Squeeze., but is also useful in identifying trend changes…
Bollinger Bands can be used on most financial time series, including equities, indices, foreign exchange, commodities, futures, options and bonds.
Bollinger Bands can be used on bars of any length, 5 minutes, one hour, daily, weekly, etc. The key is that the bars must contain enough activity to give a robust picture of the price-formation mechanism at work.
Bollinger Bands do not provide continuous advice; rather they help indentify setups where the odds may be in your favor.

A note from John Bollinger:

One of the great joys of having invented an analytical technique such as Bollinger Bands is seeing what other people do with it. These rules covering

the use of Bollinger Bands were assembled in response to questions often asked by users and our experience over 25 years of using the bands. While there

are many ways to use Bollinger Bands, these rules should serve as a good beginning point.

FINDING TOPS AND BOTTOMS WITH BOLLINGER BANDS

After setting your Bollinger Bands to 2.5 standard deviations, you will see that price reaches the outer bands less often. At the same time, the meaning of such signals becomes much more important because it shows significant price extremes.

We highly recommend combining the Bollinger Bands with the RSI indicator – it’s the perfect match. There are two types of tops that you need to know about:

1) Price spikes into the outer Bollinger Bands which get rejected immediately >> Reversal signal.

2) After a trend move, price fails to reach the outer Band as the trend becomes weaker. This signal is usually accompanied by an RSI divergence >> Continuation signal.

The screenshot below shows both scenarios: the first is the market top after a divergence – see how the trend became weaker and lost momentum and then eventually failed to reach the outer Band before reversing. I marked the second spike with an arrow – this was a trend continuation signal as price failed to break higher during the downtrend. The strong spike that was followed by a fast rejection showed that bulls lacked power.

A note from John Bollinger:

One of the great joys of having invented an analytical technique such as Bollinger Bands is seeing what other people do with it. These rules covering

the use of Bollinger Bands were assembled in response to questions often asked by users and our experience over 25 years of using the bands. While there

are many ways to use Bollinger Bands, these rules should serve as a good beginning point.

FINDING TOPS AND BOTTOMS WITH BOLLINGER BANDS

After setting your Bollinger Bands to 2.5 standard deviations, you will see that price reaches the outer bands less often. At the same time, the meaning of such signals becomes much more important because it shows significant price extremes.

We highly recommend combining the Bollinger Bands with the RSI indicator – it’s the perfect match. There are two types of tops that you need to know about:

1) Price spikes into the outer Bollinger Bands which get rejected immediately >> Reversal signal.

2) After a trend move, price fails to reach the outer Band as the trend becomes weaker. This signal is usually accompanied by an RSI divergence >> Continuation signal.

The screenshot below shows both scenarios: the first is the market top after a divergence – see how the trend became weaker and lost momentum and then eventually failed to reach the outer Band before reversing. I marked the second spike with an arrow – this was a trend continuation signal as price failed to break higher during the downtrend. The strong spike that was followed by a fast rejection showed that bulls lacked power.

TREND-TRADING WITH THE BOLLINGER BANDS

In contrast to most other indicators, the Bollinger Bands are non-static indicators and they change their shape based on recent price action and accurately measure momentum and volatility. Thus, we can use the Bollinger Bands to analyze the strength of trends and get a lot of important information this way. There are just a few things you need to pay attention to when it comes to using Bollinger Bands to analyze trend strength:

During strong trends, price stays close to the outer band.
If price pulls away from the outer band as the trend continues, it shows fading momentum.
Repeated pushes into the outer bands that don’t actually reach the band show a lack of power.
A break of the moving average is often the signal that a trend is ending.
The screenshot below shows how much information a trader can pull from using Bollinger Bands alone. Let me walk you through the points 1 to 5:

1) Price is in a strong downtrend and price stays close to the outer bands all the time – very bearish signal.

2) Price fails to reach the outer band and then shots up very strongly, even showing an engulfing pattern. This is a classic reversal pattern where the bearish trend strength faded.

3) 3 swing highs with lower highs. The first swing high reached the outer band whereas the following two failed – fading strength.

4) A strong downtrend where price stayed close to the outer band. It tried to pull away, but bears were always in control.

5) Price consolidates sideways, not reaching the outer band anymore and the rejection-pinbar ended the downtrend.

As you can see, the Bollinger Bands alone can provide a lot of information about trend strength and the balance between bulls and bears.

THE ROLE OF THE MOVING AVERAGE

During trends, the moving average holds very accurately and a break of that moving average is usually a meaningful signal that the sentiment has shifted. The screenshot below shows nicely how price trended between the outer bands and the moving average both on the way up and down. During the trend, the moving average could have been used as a re-entry signal to add to existing positions during pullbacks.

Furthermore, the moving average can be used as a trade exit signal where a trader does not close his existing positions unless price has broken the moving average. By combining the Bollinger Bands with the moving average, a trader can already create a robust trading method.

You can see, the Bollinger Bands are a multi-faceted trading indicator that can provide you with lots information about trend, buy/seller balances and about potential trend shifts. Together with the moving average and the RSI, Bollinger Bands make for a great foundation for a trading strategy.

BOLLINGER BANDS STRATEGIES

DOUBLE TOP FORMATION:

The M pattern is commonly known as the double top, using a Bollinger band strategy can add more meaning to this term in practice.

When prices are repelled by the top band twice it can mean that the market has run out of steam and a race to the bottom band could occur, these instances are a feature of volatility within the market.

In the above chart, prices were repelled twice, and then pushed down to the bottom band.

This double top also marked the beginning of a downtrend.

In this Bollinger bands strategy, you should look for three things to happen to pick out a double top formation and confirm the pattern.

Firstly the price puts in a reaction high to the upper band.
Next a pullback to the simple moving average.
Then price moves back to the first high but will fail at or below the upper band.
The waning momentum causes the failure of the second high, we can then look for confirmation of the top with a break of support and I like to see two candles close whose real bodies are below the MA line.

Double bottom formation:

The opposite will also occur regularly at significant lows.

Where prices drop to the bottom band twice in short order and then are repelled upwards, beginning an uptrend in the market.

In the chart above two W patterns formed in the uptrend, adding weight to the trend and signifying that a trader should stick with the trend.

There is a four step process in this Bollinger bands strategy to confirm a W bottom is in place.

Firstly a low forms, usually below the lower band.
next a retracement to the middle band.
then a new low forms but will hold on or above the lower band showing a slowing of downside momentum.
And lastly, the pattern is confirmed when the price rallies to the upper band and completes two candles whose real bodies are above the middle band.
A trader should always wait until all of the four steps are complete before trading the move. this will reduce false signals and spare your capital in the long run.

I will commonly use a stop loss order to trade this setup, using the higher ‘price low’ of the formation as the stop loss position.

Bollinger band squeeze:

The Bollinger band squeeze happens when price movements contract to a narrow range.

This causes the Bollinger bands to move inwards towards each other.

It is almost like a pressure is building within the market and it will lead to a sharp movement in prices sooner rather than later.

In the example above, a squeeze always occurred before any significant move in prices.

It is a valuable indication of the possibility of volatility ahead.

So a trader will always be aware of the position and trend in the Bollinger bands. And if you notice the Bollinger bands ‘squeeze’ together, you can start to position yourself because a significant price movement is straight ahead.

How does it work?

When trading using this Bollinger bands strategy, we are looking for contraction in the bands. Above is the EURCHF 60 minute chart lets see what sort of signals are generated from it.

The chart above shows 20 point increments in EUR/CHF, every time the Bollinger band width is approaching 0.0010 or about 10 points, we get an average move away from the moving average of about 40 points sometimes more.

In the above case, a trader could use the squeeze as a signal generator, a signal is generated when:

the bands squeeze to within about 10 points
and a full candle completes above or below the moving average line.
depending on which side the candle completes that is the side you trade.

So, if a candle completes above the MA, then you go long, and if a candle completes below you go short. your stops should be placed at the opposite extreme of the candle.

BOLLINGER BANDS AS SUPPORT AND RESISTANCE:

Along with giving the trader an indication of future volatility ahead, this Bollinger bands strategy will show support and resistance in a trending market, often repelling prices back into the trend once more.

In both the downward trend and the upward trend i the chart above, the bands acted as consolidation points.

The fact that prices were repelled by the bands showed the trader that they could stick with the trend.

RIDING THE BANDS:

Another Bollinger bands strategy is riding the bands, this is when we use the bands as a trend recognition tool.

During strong trend moves, the candles tend to almost stick to the upper or lower band.

This occurrence shows the trader that the trend is likely to continue and has power behind it.

John Bollinger, the bands creator, calls a move that touch the bands a ‘tag’ of the band. this is not exactly a signal but it does denote a strengthening or weakening market.

Take note for a second;

the bands are placed 2 standard deviations away from the 20 period simple moving average on both sides. So the bands contain 95.6% of all the price moves in the last 20 periods.

If the price tags the upper or lower band, it shows us that there is significance in that move. Because it is more powerful than 95.6% of all the moves in the last 20 periods.

IF a powerful move occurs, it can be common for the simple moving average to act as support for the price. The price will usually stay above or below the SMA in a trend move. This knowledge can be used in managing your position when you are trend trading.

THINGS TO TAKE AWAY:

When used alone the bands offer little in the way of timing or trade entry indicators.

But,

The Bollinger bands do give the trader a useful benchmark to judge how the price action is likely to act given certain action.
They can be a great tool to measure volatility, or lack thereof, in the market.
And they can show you where likely support and resistance might occur within a trend.
Bollinger band strategy uses these phenomena to trade trend moves within a market
These points alone are evidence enough that we all should take heed of the bands!

Forex and Some Important Facts about Bollinger Bands.

Forex trading is nowadays one of the most looked after occupation for many persons of all ages around the world. This is due to its great advantages over other capital markets and its high profitability potential; among these advantages you will find that is extremely easy to access a trading platform from the best forex broker firms thanks to the internet; and also you will notice that Forex has a high liquidity along with a high leverage.

But having a good broker firm and great trading platform is only one part of what you need in order to make your forex trading career a winning and profitable one. You need to have the right knowledge and techniques in order to forecast with the best accuracy what the market will do next. One of the techniques used to predict the Forex market behavior is that based on Bollinger Bands.

These Bollinger Bands are what is called a technical trading tool and they are widely used in the capital markets (including Forex) and were created by John Bollinger in the early 1980s. These bands technique was formulated based on the need for adaptive trading bands and the discovery that the volatility of the markets was a dynamic phenomena, not a static one as was widely believed at the time.

Bollinger Bands consist of a chart of three curves drawn in relation to currency pairs prices. The band situated in the middle is a measure of the intermediate-term trend and is usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper, lower and the middle bands is determined by the volatility of the market, typically the standard deviation of the same data that were used for the moving average. The default parameter is 20 periods and two standard deviations above and below the middle band; of course this may be adjusted to suit your needs.

In short, the purpose of Bollinger Bands is to provide a relative definition of high and low price. By definition prices are considered high when touching the upper band and low when they touch the lower band. This relative definition can be used by the Forex trader to compare price actions and as a very useful indicator when the purpose of the trader is to arrive at rigorous buy and sell decisions.

Sources https://en.wikipedia.org/
https://vladimirribakov.com/

Best Forex Broker In Thailand

Best Forex Broker In Thailand With Low Spreads Forex Trading.

FBS is an international broker with more than 120 countries of presence. 3 000 000 traders and 130 000 partners have already chosen FBS as their preferred Forex company.

To provide the best customer experience FBS organizes seminars and special events, providing its clients with training materials, cutting-edge trading technologies and latest strategies on the Forex market. Both newbie and professional traders will find these sessions useful. Every event is thoroughly planned and prepared in advance to make sure everything goes perfect. During the break guests are offered delicious food and coffee. All meetings take place in a family-like atmosphere, where everyone is welcome and can enjoy the company of the best FBS traders and partners. And most importantly, participation in all our events is absolutely free.

We value diversity of our clients and understand that different categories of customers have different demands. Specially for Muslim traders we provide swap-free accounts (also known as Islamic accounts), that do not contradict with the teachings of Islam.

If you are looking for a reliable and honest broker, consider opening an account at FBS. You will be surprised how easy and comfortable trading on Forex can become when there is a professional company standing behind you.

OUR ACHIEVEMENTS
Founded in 2009, FBS has received numerous international awards, proving its worth to the customers. The company received the titles of the Best Customer Service Broker Asia 2016, Top IB Program 2016, Highly Recommended Broker Insurance Company in Indonesia of the year, Best Forex Brand, Asia 2015, Best Safety of Client Funds Asia 2015, Best broker in Asia-Pacific region 2015, Best broker in the Middle East and many others.

FBS BY THE NUMBERS
Everyday 7000 traders’ and partners’ accounts are opened Half of our clients multiply their initial deposit by 8-10 times 48% of our clients consider their profits from FBS their main source of income
Every 20 seconds clients make a request to withdraw profits 80% of our clients stay with us forever

2009
Ready, steady, GO!

2009 marks the entrance of FBS into the international market. Satisfaction with our service and excellent client reviews helped us quickly earn the trust and favor of traders all over the world.

Excellent quality of our work led to rapid growth of the company’s popularity – by the end of its first year of operation FBS was already providing its services to more than 50 000 clients. The same year we started building a network of our loyal partners from many countries and created an international customer support service.

prize
2010
Beginner’s luck

FBS receives its first prestigious award – “Best mini Forex-broker”. Experts’ confidence served the best proof that the company was on the right track.

FBS keeps improving its services, and by the end of the year total amount of the company’s clients increased by half! Simultaneously we started holding many contests and developing our own analytical resources.

prize
2011
International recognition

FBS is repeatedly awarded the “Best mini Forex broker” prize, but this time on a global scale. The company takes an active part in exhibitions, holds seminars and receives universal recognition.

That was the year of expanding our geography. Total number of clients goes beyond the figure of 100 000! FBS constantly receives warm feedback and acquires loyal partners.

prize
2012
Deserved trust

The list of FBS authoritative awards gets replenished with 3 awards in a row – “Fastest growing broker Asia”, “Best Forex broker Asia”, “Best platform MetaTrader 4”. FBS achieves huge success and trust! We keep encouraging our clients – prize fund of our contests is multiplied by several times, we introduce a unique possibility to insure funds. More and more partners open FBS branches in their countries.

prize
2013
Great turnaround

FBS gets ready to reach the next level – we start implementing cutting-edge technologies and services. We develop our interaction with clients and take part in major events of the Forex world. This year we received as many as 4 awards in nominations “Best broker in Asia”, “Best Broker in South-East Asia”, “Best Partnership program”, “Best trading platform”. Total amount of our traders approaches 400 000.

prize
2014
5 years of solid growth

FBS celebrates its five-year anniversary. In honor of the celebration we held a grand raffle and rewarded our customers. FBS gets a lot of greetings and declarations of love! The company becomes the fourth consecutive year “Best Broker in Asia.” We already have more than half a million customers. This year we also launched a new FBS Personal account and the company’s website.

prize
2015
Updating our records

FBS outdoes itself and gets 11 international awards. New regions are conquered, with representative offices opened there. Growth is gaining speed, the number of clients and partners exceeds 1 million! The company’s turnover increases more than twice. The company runs a massive charity campaign, providing help for over $400 000.

Working with FBS is both easy and profitable. We’ve spent years creating ideal trading conditions and developing very special promotions that will not only make our clients happy, but also maximize their Forex efficiency. If you were looking for a reliable and honest broker, we’ve got good news for you — you’ve finally found one.

80% of FBS clients stay with us forever, and that’s for a reason.

WHY CHOOSE FBS?
Trustworthy, continuously developing broker
The most beneficial offers on Forex
Thousands profitable orders executed daily
Team of highly-qualified professionals
Millions of thankful customers
WHAT DOES IT MEAN FOR YOU?

100% deposit bonus for trading

Free deposit insurance

Convenient trading tools

Regular contests and advantageous promotions

The most transparent affiliate commission: up to $80 per lot

Deposits and withdrawals via any system in any currency

Customer support in your native language 24/7

FBS PROVIDES THE BEST TRADING CONDITIONS
Minimum deposit $1 Spreads from 0 pip Minimum order volume 0.01
Leverage up to 1:3000 Split-second execution No requotes
REGULATIONS
All FBS activities are regulated by IFSC (International Financial Services Commission). The Commission monitors the operation of investment firms to comply with those directives of the legislative and regulatory framework in the world. This public authority holds control over the activities and operations on the stock exchange.

That means that working with us is safe and reliable. You will be protected under international financial laws and never face any legal hurdles. FBS values the rule of law and is eager to settle down all issues in a due-to procedure.

Contact For FBS Local offices in Thailand

THAILAND

Bangkok

FBS Ladprao

E-mail: support@fbs.com
Tel.: 081-429-5264
FBS office Bangna

E-mail: bangna@fbs.com
Tel.: 084-7978145
FBS Ramkhamhaeng

E-mail: support@fbs.com
Tel.: 0959656155
Ratchada district, Phuket

E-mail: support@fbs.com​
Tel.: 076608932
Facebook: FBS Phuket​​
Chiangmai

E-mail: support@fbs.com
Tel.: 088-4004404
Chonburi

Working hours 10.00-22.00

E-mail: support@fbs.com
Tel.: 086-6785965

Other Trusted Forex Brokers In Thailand:pepperstone,xm,etoro and exness.

Practice_Account-TH

Pepperstone.com

Trade Forex with Australia’s Fastest Growing Forex Broker, Pepperstone. Trade with metatrader 4, fast trade matching, raw ECN spreads, and high leverage and liquidity.

Exness.com

Exness Group was founded in 2008. Having a deep understanding of traders’ needs, we strive to provide the best trading conditions on the forex market, so our clients from around the world can fully realize their professional potential and achieve success.

Xm.com

Forex, cfd trading on stocks, stock indices, oil and gold on MT4 and MT5. Trade forex online with XM™, a licensed forex broker.

 

 

BX.in.th Bitcoin Exchange Thailand

Older posts