Forex for Dummies 2

[Stormin_Norman]

I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).

Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go? In shares, I've got Volume and OBV to show me buying pressure or selling pressure. In FX there ain't any of this. I'm completely blind when trading FX. Please someone Heeelp!

have a look in the forex4dummies#1 thread. you might pick up some ideas from there.

 

[wayneL]

I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).

Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go? In shares, I've got Volume and OBV to show me buying pressure or selling pressure. In FX there ain't any of this. I'm completely blind when trading FX. Please someone Heeelp!

Trade currency futures man. Though there are factors affecting volume that you would have to be aware of, depending on your time frame (whether intraday, daily etc)

 

[It's Snake Pliskin]

One thing that has always put me off is the times when FX is traded.
IE when most are asleep me included.

So when do you guys trade FX?
Is it best to trade in particular sessions for particular contracts?

Tech/a,

The issue is liquidity and liquidity for the time you enter and exit trades. Some periods have little liquidity and others higher. Trading the Tokyo session is one of mine as is the London session. Also the pair you are trading is going to be different in different time zones.

You can trade the Tokyo session when trading the ASX and then you can avoid getting caught up in the nasty news events that come out of the US.

Cheers..

Discussion only. Do your own research.

 

[tayser]

That looks great thanks,

Best world time clock l've found to date if anyone hasn't already got it.

http://www.forexfactory.com/showthread.php?t=102905

Europe and London times are showing session starts at 5 and 6pm: Paris/Frankfurt = 6pm, London = 7pm.

All you need to know about opens is that it's 8am in the local timezone and most retail brokers will kick off Monday at New York 5pm Sunday (9am in Australia, 11am in New Zealand) and close 4-5pm New York Friday.

Get the Firefox "Foxclocks" add-on and just put: Auckland, Melbourne/Sydney, Tokyo, Hong Kong, Paris, London and New York in the display.

 

[lusk]

Europe and London times are showing session starts at 5 and 6pm: Paris/Frankfurt = 6pm, London = 7pm.

All you need to know about opens is that it's 8am in the local timezone and most retail brokers will kick off Monday at New York 5pm Sunday (9am in Australia, 11am in New Zealand) and close 4-5pm New York Friday.

Get the Firefox "Foxclocks" add-on and just put: Auckland, Melbourne/Sydney, Tokyo, Hong Kong, Paris, London and New York in the display.

Yeah l realised that when l first started using it but it seems its like that for a reason and does work quite well. The guy that wrote the program gave this reason for the offset.

"I know that technically that London should be 8am but Forex is always open right? The positions of the opens are more designed to reflect when the market starts to become more active. London institutional traders start to look at the market from 7am to see what Tokyo has been doing. Also things tend to wind down around 4pm in London."

 

[Page]

I always use the S/R to come out of execute my trades. Very few times, i have used the limit order. I always use the stop loss as well as the S/R to execute my trades.

 

[tech/a]

Thanks Snake.
Wayne--duly noted.

 

[dit1]

Can someone please tell me what time each market opens and closes in Adelaide time...I am just glad I'm posting in the dummy thread.
Also the market closing on Friday, what time here?

 

[MS+Tradesim]

Can someone please tell me what time each market opens and closes in Adelaide time...I am just glad I'm posting in the dummy thread.
Also the market closing on Friday, what time here?

http://www.forexmarkethours.com/
http://forex.timezoneconverter.com/index.cgi?timezone=Australia/Queensland&refresh=5

I like the first link as it gives a nice visual showing overlap of sessions.

 

[BentRod]

Tech.... If you are up at midnight(our time) watch the Euro or Cable on E-signal or a Metatrader demo so you can see what effect news has on the Currencies.

The first Friday of every month is when the Non Farm Payroll comes out.

Generally it is the biggest market mover, if it surprises tonight there will be some huge moves.

 

[dit1]

Thanks, yes I like the first link too.

 

[Stormin_Norman]

Tech.... If you are up at midnight(our time) watch the Euro or Cable on E-signal or a Metatrader demo so you can see what effect news has on the Currencies.

The first Friday of every month is when the Non Farm Payroll comes out.

Generally it is the biggest market mover, if it surprises tonight there will be some huge moves.

there's lots of news all over the shop tonight. ive had my afternoon nap and expect to be up all tonight.

 

[MRC & Co]

This doesn't exactly relate to the thread, well sort of does, but is more for you tech.

You have traded stocks for long enough, so there is nothing really to worry about on forex that may bite you unexpectedly. Just a different market to get used to, and get used to the leverage.

Forex trends well, and is supposedly the most 'technical' market out there, but the thing with it is, as far as I am aware of, there is no real true volume available, so you won't be able to apply your VSA (which would make a journey into FOREX worthless to you unless you change your style).

If your going to move to the futs, I think, with your background already in stocks, stock index futures are probably the best (though you have to work this out for yourself). Then comes the hard part, picking which index (or even multiple), you are going to trade.

Just a few things to think about.

Don't have my contract specs with me on FOREX, so can't answer the Qs originally posted in the other thread. A mate took them to borrow.

 

[white_goodman]

This doesn't exactly relate to the thread, well sort of does, but is more for you tech.

You have traded stocks for long enough, so there is nothing really to worry about on forex that may bite you unexpectedly. Just a different market to get used to, and get used to the leverage.

Forex trends well, and is supposedly the most 'technical' market out there, but the thing with it is, as far as I am aware of, there is no real true volume available, so you won't be able to apply your VSA (which would make a journey into FOREX worthless to you unless you change your style).

If your going to move to the futs, I think, with your background already in stocks, stock index futures are probably the best (though you have to work this out for yourself). Then comes the hard part, picking which index (or even multiple), you are going to trade.

Just a few things to think about.

Don't have my contract specs with me on FOREX, so can't answer the Qs originally posted in the other thread. A mate took them to borrow.

Tradeguider will have you believe you can use volume but its jsut tick volume... I have tradeguider but dont use it at all in my forex systems, plenty of indicators and strategies out there that you dont have to rely on volume in forex i believe

 

[Stormin_Norman]

what can volume tell you in forex that price movement wont?

 

[MRC & Co]

what can volume tell you in forex that price movement wont?

That is the problem, you can't attain volume.

But for many instruments, volume can help, plenty of work done around here by tech on VSA.

As for you tech, I can't really help, but to say, I've tried trading (along with both US and Australian equities and ETFs), indices including Singapore, HHI, HSI, Taiwan, SPI, Nikkei, NASDAQ, S&P, DOW, commodities including both gold and oil, and currencies including Euro, AUD and Yen. Didn't like the currencies at all (though did ok on both the Euro and Yen), despite many steering me towards them. That is my perspective, at the very least.

 

[lusk]

Tradeguider will have you believe you can use volume but its jsut tick volume... I have tradeguider but dont use it at all in my forex systems, plenty of indicators and strategies out there that you dont have to rely on volume in forex i believe

what can volume tell you in forex that price movement wont?

It uses tick volume but it does not matter, it is comparative so it still works. Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.

Plenty of indicators and strategies that are easier to use than learning to read volume like most do.

 

[Cartman]

Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.

understand what u r saying Lusk --- but let me post a chart ---- no volume but very tradeable

ps i use volume too ---- but its not as important as momentum is on FX --- only my opinion though

 

[MRC & Co]

It uses tick volume but it does not matter, it is comparative so it still works. Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.

Tick volume? As in everytime the bid or offer is hit (regardless of size), it's added as 1 on the volume?

If so, not the same. Not even close.

 

[tayser]

Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.

Not in the FX world.