July 10 2009 - Forex Report and Special Moving Average Training
Written July 10, 2009 at 12:25 PM EST by Shawn Powell
At the request of our customers we decided to do a special training on how to read and understand moving averages. We look specifically at the 5 minute timeframe and clearly outline how to follow an MA. Please be sure to watch this video if you are new to trading. If you find it helpful, please add it to your twitter, facebook or other social media site. We have a number of helpful videos in the training section. Thanks again to all of our customers. Have a great weekend, you’ve earned it.
Greg and Shawn
FXDD Trading Team
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How can I get the moving averages that you show on your charts onto my charts?
I have one moving average and I’m not sure what time fram it is using.
This is the second time I have asked this question.
Frank C. Motter
Frank,
To access a video on how to set the moving averages go to http://forex.fxdd.com/training-videos and watch the How to add a Moving Average video.
Greg can you provide information on how to read candlesticks, thanks
Hi George,
Here is a quick explaination of how to read candles http://www.fxdd.com/en/learning-center/forex-trading-tutorials/chart-types.html Hope this helps to get you started.
Shawn
I trade the GBP/JPY exclusively, could u pls giv breakdown as u did in chart of 7/7/09.? I can’t tell you how you have helped me trade and gain knowledge. thank you Greg and Shawn.
Hi J,
We will be sure to give the GBP/JPY a look today on one of the next shows. Thank you for taking the time to post a comment and for your compliment.
Shawn
Great stuff.
Many thanks .
Thanks for the good work, i want to ask, this strategy as explain with 5min chart, could it be applied same manner on higher timeframes?
Yes. It is advised to look for clues in all time periods. If the 200 day MA on the USDJPY is being broken like what happened today, it can have an effect on the shorter term chart and visa versa. When looking at the hourly chart, the market may be bearish but due for a correction. Looking at the 5 mnute chart may give clues for corrections to the upside.
I prefer to not look at one of the periods in a vacuum but to have an idea where the market stands in all of them - especially in this market where the market is up one day and down the next. Or putting it another way, the dollar is bid one day and offered the next.
Take a look at some charts and look for clues from 5 mn, 1 hour and daily. The goal is to find levels to buy or sell that keep risk to the minimum and provide the potenial for a trend like move. .
I hope this was of some help
Greg
“Take a look at some charts and look for clues from 5 mn, 1 hour and daily. The goal is to find levels to buy or sell that keep risk to the minimum and provide the potenial for a trend like move. .” is a vital point, may be i should consider trades on 5min that is in line with 1hr only, i use RSI seen on my website (www.bondfx.biz) your emas are added clues. Thanks for that.
My Last Question: At the break of 100ema with good test of te 100ma, must i ensure a break of the 200ma before i pull trigger?
James
Well first I look at the Simple Moving Average not the EMA. I think that it works best and prevents too fast position trades - especially in the 5 minute charts. It gives me confidence.
I choose not to use things like RSI because an RSI can be overbought/oversold for an extended time period and as a result, it brings an element of doubt or fear in my trading. So although I think they are a tool that can determine overbought/oversold conditions, I like to go from an hourly chart entry, to a 5 mnute chart exit and use the 100 bar MA as my “black and white” decision trigger (at least for a little bit). So the evolution of a trade may originate from a 5 mnute move above the 100 bar MA. Then it confirms by going above the 100 hour MA. Then it continues higher and is exited on the 5 minute move back to the downside (after a sufficient time and price move). I will have a feel that the market is overbought by the distance between the 100 hr moving average and the price, but won’t exit until the price goes below the 100 bar MA on the 5 minute chart…. Understand.
Regarding the 200 MA, I will use the MA as confirmation of a move or sometimes, the market corrects through the 100 hour MA but will stop at the 200 hour MA. It is less important than the 100 in my eyes, but can be used to give extra confidence and can be helpful in defining correction targets as well.
I hope that helps you even more…..
Greg
Thank you Greg. I want to tell you i filled a Money Manager Form to trade my clients money with FXDD and i was not contacted since then. Please help contact the right department to listen to my case.
I love your use of MAs in 1hr and 5min.
My RSI is not used for overB and overS, I use trendlines on them that gives me confidence than the 70 and 30 levels. Like you said,looking at those levels will create fears and so on, so all i do is trendline to market support and resistance. Funny enough the S/R that i get corresponds with your MA, that makes further confirmation for me.
Thank you for this video, you can see i watch it always and i recommend to all my students. Like you said not many people know that you can actually spot overB and OverS with moving average but your explaination did and its neater that way. THis particular video will make impact i tell you.
James
Thanks.. for the kind words. There are many ways to skin a cat. It seems you have found a way that you are comfortable with and that is most important.
Regarding the Money Manager inquiry, the area asked you call and speak with them directly. They need some information from you directily in order to find your request. They can be reached at 212-791-3933 or 866-367-3933.
Greg
Thanks Greg, I learnt alot from this lecture. am going to try it out right away. I’m grateful. Thanks alot. Good work, Good work.