How to Use Leading and Lagging Indicators to Drive Your Profits

Forex trading signals use raw market to identify where the entry and exit points of a trade are located. These signals are used in both, fundamental and technical analysis.

Fundamental analysis economic news that have a direct impact on the exchange rate for a specific currency. The news for fundamental analysis can be obtained by various government reports or by using a Forex economic news feed that keeps up with the economic news worldwide.

Technical analysis, however, uses current and historical data to forecast predictable trends to assist a Forex trader on whether to enter a trade or not. Traders us different types of charts such as line charts, bar charts and candlesticks charts to determine whether to enter a trade. The signals generated by these charts can be summarized in two categories: leading indicator or lagging indicators.

Leading indicators are the most common signals used by Forex traders. In essence, a leading indicator tries to predict trend changes before these changes actually occur. By having an indicator that forecasts market movement, in an uptrend forecast, a trader can enter a trade by getting a currency at the low point the signal indicates and sell at the high point when the indicator indicates a reversal of trend. Conversely, the same is true when the indicator shows the start of a downtrend, the trader sells high in hope that the price will drop allowing him to buy at a lower price. Some of the most common leading indicators used today are oscillators like the Parabolic SAR which helps identify whether a trend is bullish or bearish. Other indicators like RSI and Stochastics are used by traders to determine whether a currency is oversold or overbought. When one of these indicator show that a currency is overbought, you should be selling. The opposite is true if the indicators show that a currency is oversold, the logical conclusion is that the price of the currency is about to reverse itself and you should be buying.

Lagging indicators are the total opposite of leading indicators. Lagging indicators produce signals to indicate a change in a trend after the change occurred. Why use a lagging indicator if you already missed the trade? The lagging indicator should work as wake up call that the trend changed and to be alert for a reversal. This is specially useful when you are starting to trade because lagging indicators never give out wrong signals. They only show signals after the change of trend occurred and it can help you tune your skills by helping you determine where you missed the leading indicator signal which would have happened prior to the lagging indicator. An example of lagging indicators are momentum indicators.

Leading and lagging indicators provide signals to assist a trader on whether to enter or exit a trade, however, these two indicator types may provide conflicting signals at times. By using several indicators you increase your probability of succeeding in a trade. However, if you don’t feel comfortable reading charts, there are many products in the market today that provide signals that have been tested and proven to be successful and you should consider getting one of these products as you fine tune your chart skills.

How to Convert Bitcoins to Dollars

Exchanging bitcoins to an useful currency.

Bitcoins seem to have been heralded by most as the currency of tomorrow, but there are only a handful of sites that agree to accept them. Luckily for us, transforming bitcoins to a workable currency like dollars is simple and plain. If you desire to be aware of just how much bitcoin is worth, run a simple net search. If you want to essentially convert bitcoin to dollars, transfer them in an internet market and sell them to an interested consumer. The online marketplace might promptly and easily convert your bitcoins to dollars and transmit them to a debit card, bank account, or digital wallet of your determination.

Selecting a Conversion Service.

1) Compare the rates made available by diverse conversion services and determine the top one.

Equally when the general bitcoin conversion rate improves, several conversion services provide you with diverse conversion rates. For example, think one service gives to convert your bitcoins at a rate of 1 to $5000 USD and one other offers to turn 1 bitcoin in to $5250 USD. All additional things getting equivalent, you should go along with the second service to acquire the most of your bitcoins.

2) Convert your bitcoin adding a service with low fees.

Conversion services often ask for a fee. Usually there is a flat fee if how highly you exchange, and often the conversion service charges a segment of the sum you exchange. Evaluate the costs associated with the numerous conversion services and choice one that offers you the ideal deal. Service fees modify over time, so make sure to verify the services terms and fee routinely.

3) Confirm that the service you’re utilizing is safe.

Generally there are a handful of ways to authenticate that a bitcoin conversion web page is harmless. One is to check review sites for testimonials. One other method is to ensure the website uses https (as opposed to the less comfy http) in their URL. At last, implement a conversion service that permits two-factor identification, making certain that simply you will likely be able to confirm bitcoin conversions.

4) Choose a service that has low transfer time period.

A bit of web sites transfer bitcoins to your account just after 2 days, but quicker services may convert your bitcoins to dollars in 2 hours or even less.

Enrolling and Uploading Your Bitcoin.

1) Register for an account.

Enrolling for an account comes to providing your name, date of birth, address, email address, telephone number, and other personal data. You’ll also need to provide bank account information, an online payment service like PayPal, or similarly (depending on in what way you want to convert and transfer your bitcoins).

2) Decide on the most effective security options every time you sign up.

Each time you obtain an account on a bitcoin marketplace, you’ll have the probability to let two-factor authentication, which will results in you would enter a password and a randomly built code sent to your cellphone. You may also wish to let a multi-signature option, which in turn requires innumerable independent approvals in advance of producing a bitcoin conversion or withdrawal. Both of these kinds of security settings can safeguard you from theft and hackers.

3) Deposit your bitcoins in the markets.

The specific mechanism by which usually you deposit your bitcoins should differ subject to how your bitcoins are really today stored. Primarily, depositing your bitcoins is as easy as clicking deposit bitcoins, on the top of the marketplace’s web site. No matter your bitcoin encryption key factor is printed out, you’ll be advised to enter into it. Regardless whether your bitcoins are in a wallet (an encrypted file or code), you could be asked to upload the file. Don’t be afraid to contact customer support in the event you’re having problem depositing your bitcoins.

Exchange Rates.

Convert your bitcoins in the event that the exchange rate is very good. Across time frame, exchange rates climb and fall down. As a representation, one day the exchange rate may well allow you to trade 1 bitcoin for $4900. A week later, the exchange rate may perhaps provide $5150 meant for 1 bitcoin. Hold out to exchange your bitcoins right up until the according dollar worth increases. Presently there is no fixed segment or worth that specifies a helpful exchange rate. Some people may possibly experience that if the worth of a bitcoin springs up by $100, it is an OK instance to convert their currency. Some people may delay until the value they’d get springs up by 5 percent. Confirm the exchange rate constantly online or sign up intended for a service that updates you on the bitcoin-to-dollar exchange rate so you can understand when it improves.

Sell off your bitcoins in the market place.

Offer your bitcoins in the current market. Several marketplaces permit you to sell your bitcoins to another person. Individuals enable you to sell them instantly to the market place, which usually will after that resell them to interested buyers later on. In either case, the certain manner you implement to sell off your bitcoins will differ slightly according to the market place you make use of. Most of the times, you can merely click on Sell your bitcoins or some equivalent choice to get the process initiated. The bitcoins will the be turned to dollars and moved to the bank account you offered.

Save your bitcoins on a debit card.

Place your bitcoins on a debit card. A handful of marketplaces let you to load your bitcoins on to a debit card that conveniently converts them to dollars. You may be able to acquire an online digital debit card, which usually only supplies you with a string of figures you can adopt for online purchases that need to have dollars, or you can generate a basic debit card in the mail. Similarly these kind of debit cards cost money, but they present an added benefit, exclusively if you pretty much never make use of cash.

Transfer your bitcoins to another digital wallet.

Switch your bitcoins to one different online wallet. Several bitcoin conversion services make it easy for you to convert your bitcoins to dollars by switching them to PayPal, Apple Pay, or similar services. If this is the approach you want to convert your bitcoins to dollars, put your payout method to the online digital wallet you want to use. Then simply, basically sell off or transfer your bitcoins to the service of your determination by using the marketplace menus. Transforming bitcoins to dollars by transferring them to an online wallet sometimes has bigger fees and reduce limits than transferring them to your bank account. This alternative may perhaps, nonetheless, be much better intended for users who do online acquisitions repeatedly and don’t wish the inconvenience of relocating their money from a bank to an online wallet.

The Richard Donchian Rule Will Make You a Better Trader

The Richard Donchian 4-week theory is a time tested strategy that most professional traders use. Although I prefer to use automatic software to do my trading, the 4-week theory is one of those non-automated strategies that I use to make consistent profits.

After 30 years still going strong

The Donchian 4-week theory is a proven strategy that has been around for over 30 years. Due to its simplicity, many traders disregard it because they don’t believe it can be profitable. The reality of it, however, is that the 4-week rule has been making money since it was first introduced in the commodity market more than 30 years ago and it still makes tremendous profits today. This theory works well in any type of market whether is Forex, stocks, or commodities.

How does it work?

The Donchian theory goes against what most traders believe to be main rule of trading “buy low and sell high”. Although it is true that, if you can identify the highest point to sell and the lowest point to buy you will profit, the reality is that those points can escape even the most seasoned of traders. The Donchian theory uses a 4-week rule to determine when to enter a trade. By simply going long when the price of a trending currency pair goes higher than all the highs of the past 4 weeks and, conversely, by going short when the currency pair goes lower than all the lows of the past 4 weeks. If you learn how to apply this theory, you will NEVER miss any of the big trends which last for weeks or months again.

Why does it work?

The Donchian 4-week rule is a simple price action strategy that is based on breakout methodology. When you look at currency pair charts, you will see that long trends can last weeks, months, or even a year or longer. A closer look will clearly reveal how these trends start and continue by continually breaking to new highs if the market is bullish or by breaking to new lows if the market is bearish.

The methodology is really solid. Since it is only interested in 4 week highs and lows, the system will catch and hold long term trends. In terms of making money, long term trends are the ones that consistently make the big profits. The Forex market is not exception when applying the 4 week rule and is very profitable over the long term.

One disadvantage to the Donchian theory is that it doesn’t work on markets that are sideways or consolidating. As a matter of fact, on sideways markets the 4-week rule will lose money. A way to prevent these loses is to trade uncorrelated markets when using this rule.

Conclusion

The 4-week rule generates trades when the majority expect the opposite to occur. Although this may seem like a bad thing, it really isn’t. Keep in mind that 95% of Forex traders lose money so being in disagreement with the majority is probably a good indication that the trade taken is good. To date, I haven’t seen a single automated system that is based on the Richard Donchian theory and, since it is beautiful in its simplicity and proven to make profits consistently, you should include it in your trading toolbox.