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Understanding forex trading signals 101

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Forex trading signals are basically indicators or signs thatspur traders to action. The goal of this article is to enumerate and discuss some of the more common Forex trading signals that Forex …

Forex trading signals are basically indicators or signs thatspur traders to action. The goal of this article is to enumerate and discuss some of the more common Forex trading signals that Forex traders use.
But first, let us discuss the importance of these signals. Basically trading signals are used to time entry points and/or exit points which can lead to the maximum amount of profit or the minimization of loss.

Published in: Economy & Finance, Business

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  • 1. Understanding Forex Trading Signals 101 By James Taylor http://www.FishingForexPips.comCopyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 2. Forex trading signals are basically indicators orsigns that spur traders to action. The goal ofthis article is to enumerate and discuss some ofthe more common Forex trading signals thatForex traders use. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 3. But first, let us discuss the importance of thesesignals. Basically trading signals are used totime entry points and/or exit points which canlead to the maximum amount of profit or theminimization of loss. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 4. 1) Forex trading software: This is a must have for aspiring traders, especially those consumer’s who do not have enough time to actually sort thru and analyze the huge amount of economic data being thrown into the market. A proper software will provide newbie traders with a general concept of Forex trading. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 5. However this software is only as good as theinformation inputted into it which means atrader must always know the basics offundamental and technical analysis. Think of aForex software as training wheels on a bike,which help you start but must be removed intime. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 6. 2) EMA crossover: Traders often chart EMA’sand look for crossovers of lines. Why? Becausethis can indicate a trend reversal, which whentimed properly can mean a skilled enoughtrader can ride the new trend by entering orexiting at the beginning to the end which canlast a week or a month at most. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 7. For example, if a trader is dealing in 5 EMAand 10 EMA when he or she notices acrossover of these lines he or she will viewthis as a signal for trend reversal and buy orsell.Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 8. 3) Parabolic SAR: This is a bit technical so beginners should either brace themselves or have their notes ready. Plot values in a selected time frame (0.2,0.2), ADX 50 (+DI, -DI lines) an expert can recommend entry when +DI line is on top of –DI and exit when –DI line is above +DI. Just be careful since a lot of times Parabolic SAR retraces. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 9. There are more Forex trading signals used bytraders to time their entry and exit however avery important tip to remember is that thesesignals are not absolute. In some cases theoccurrence of one signal maybe a coincidenceor what is called as a “false signal.” Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 10. In order to minimize jumping the gun and moving on a false signal a trader should always check a single divergence or variation with other signals. This is to increase the likelihood of profit and decrease the likelihood of incurring a loss. Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.
  • 11. FREE Forex Strategy To Make Hundreds Of Pips! Free Gift: Fishing Forex Pipss Indicator System [ Worth $197 ]http://www.FishingForexPips.com/Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.