Just to inspire you
Friday 30 December 2016
Thursday 29 December 2016
Indicator just give you indication
When i was in high school, i have been traveling to Bali from my home town in Mataram. Mataram is a city in Lombok Island. Lombok Island is famous because of The Senggigi Beach and The Gili Trawangan Island. I traveling to Bali using my Old Dad motorcycle. It still has fuel indicator, but i cant use it anymore. So to check the fuel I need to open the seat. Friend of mine, using a brand new motorcycle from Honda, it was called Honda Karisma (in Indonesia). He tell me that his motorcycle was full with fuel by pointing to the fuel indicator.
That how was fuel indicator work. It's tell us that we still have enough fuel if the indicator pointing to the letter F (full).
In forex trading, indicator help us to get better feeling about what happen in the market. Is the market rising up, go down or move side away. There is a lot of forex indicator available in the internet, books or other source like Moving Average, MACD (Moving Average Convergence Divergence), Stochastic and other indicators.
Like the other newbie, who learn how to trade forex, they will search a lot of indicator, try it, then fail. Try to find another one, try it, then fail. Find another one, try it, fail again. They combine it, try it, but still fail. This is my experience and may you face it to.
Then i realize, INDICATOR JUST INDICATOR, it give you INDICATION no more than that. You don't have to find a perfect indicator, a world class indicator. What you have to do is to chose an indicator that best suited with you. I recomend you to use maximal 2 indicators. One indicator in the main chart, for this moving average is my favourite. The second one outside the chart, i love MACD, it simple and easy to use.
Having and indicator in your chart, doesn't guarantee your success in forex trading. Once again, indicator just give you indication. When trader buy and sell the currency, the PRICE ACTION CAN TELL YOU. If you can master how to combine indicator and price action to take action into a trade, you will know when other trader (specially big trader or big boss) enter the market.
Enjoy your trade!!
In forex trading, indicator help us to get better feeling about what happen in the market. Is the market rising up, go down or move side away. There is a lot of forex indicator available in the internet, books or other source like Moving Average, MACD (Moving Average Convergence Divergence), Stochastic and other indicators.
Like the other newbie, who learn how to trade forex, they will search a lot of indicator, try it, then fail. Try to find another one, try it, then fail. Find another one, try it, fail again. They combine it, try it, but still fail. This is my experience and may you face it to.
Then i realize, INDICATOR JUST INDICATOR, it give you INDICATION no more than that. You don't have to find a perfect indicator, a world class indicator. What you have to do is to chose an indicator that best suited with you. I recomend you to use maximal 2 indicators. One indicator in the main chart, for this moving average is my favourite. The second one outside the chart, i love MACD, it simple and easy to use.
Having and indicator in your chart, doesn't guarantee your success in forex trading. Once again, indicator just give you indication. When trader buy and sell the currency, the PRICE ACTION CAN TELL YOU. If you can master how to combine indicator and price action to take action into a trade, you will know when other trader (specially big trader or big boss) enter the market.
Enjoy your trade!!
Wednesday 13 April 2016
Forex Trading SetUp; Doji-Let the market decided
Today we will discuss about DOJI. Below you can see EURUSD weekly price movement. The second candle from right is DOJI, which surrounded by light blue box.
Bingo. The DOJI appears exactly at the resistance level. Will it break the resistance or pull back. This what I mean by undecided.
DOJI, do you know about it?
DOJI is undecided price action.
The trader don't have a clear picture where the pair will go. It's not because the bullish and the bearish have the same strength. The fact is trader wait for a confirmation.
Because DOJI is undecided price action, where should the DOJI appear?
It's like you don't now which road to pick, it's most like choose one from two choices.
It's like choose BUY or SELL. So where's the best place to choose open BUY or open SELL?
My answer is at the price level. At the support or resistance. Ok let's take a look EURUSD chart again. This time I will minimize it.
To trade DOJI, we should wait until the price break and close below the lowest price of the DOJI candle stick or break and close above the highest price of the DOJI candle stick.
Today, April 13 2016 EURUSD break the the lowest. We can't trade it now. We should wait till the week finished. If the price close below the lowest DOJI candle it will trigger our sell signal.
ENJOY YOUR TRADE
Saturday 9 April 2016
Forex trading tips: How to choose which pair to trade, the YEN example
April 4 to 8 2016 the JPY is strong again EUR, GBP and USD.
1. EUYJPY
2. GBPJPY
3. USDJPY
If you have to choose, which pair will you trade?
Here is my step:
1. Get to know what the market fell about the pair
2. Is there any violation at the price level (support or resistance)
3. The biggest pay check
1. EUYJPY
2. GBPJPY
3. USDJPY
If you have to choose, which pair will you trade?
Here is my step:
1. Get to know what the market fell about the pair
To do this I use three different moving average, 200 MA, 50 MA and 20 MA. Bullish if the price is above all the three MA. Bearish if the price is below all the three MA. Try look at the three pairs. Do you know which pair to trade? Yup you should trade EURJPY or GBPJPY.
2. Is there any violation at the price level (support or resistance)
This is my strategy, I called it MARS. It based on a breakout or a violation at the price level. Because we fell bearish, we looking for sell opportunity then we must find breakout at the support level. Can you see which pair is breaking out it support? GBPJPY!
3. The biggest pay check
Because we have the pair, I wil discus this topic next time.
I have open sell position this morning. My target is the next support around 148.00
ENJOY YOUR YRADE.
Forex Trading Tips: Understanding Market Psychology
Psychology is my favorite books topic.
I read so many psychology books, for what, to get to know my self and to understand others.
The point is, psychology will help you to understand what other people do and why they do that.
In forex trading (stocks or option), because we are a single player, with a small amount of money we can't move the market. What we can do is to be a follower, follower of the big players.
To follow them, we need to know what they think and what they fell about the market.
To do that, the idea is using three different moving average. 200 moving average (long term), 50 moving average (medium term) and 20 moving average (short term).
Before we continue, do you know how to use a single moving average?
If you use a single moving average to trade, the buy signal appears when the price cross from below the line to above the line.
Easy and very simple strategy.
When using a single line, the market psychology turn form negative to positive by crossing the line. In the picture above I using 20 MA as an example. Now the short term trader has a negative feeling about the pair, they predict and push the pair lower.
What if other trader using a different Moving Average, their psychology will be different. Take a look at the picture below:
Let see what other group though about the pair.
The medium term trader, who used 50 Moving Average has the same perception about the pair. They now think that the pair will go down further.
But wait, the long term trader has a different perception. This group think that the pair was corrected and soon will be rise up again.
The scenario will be like this:
1. the price is above all the three moving averages
This mean that most of the trader believe the pair is moving up ward. They think BUY
2. the price is below all the three moving averages
This mean that most of the trader believe the pair is moving down ward. They think SELL
3. the price is below two of the three moving averages
4. the price is above two of the three moving average
This technique help you understand what other traders think about the market (pair).
Remember, this method just to know what other fell.
BUY and SELL is up to you. It's depend on your strategy.
ENJOY your trade.
I read so many psychology books, for what, to get to know my self and to understand others.
The point is, psychology will help you to understand what other people do and why they do that.
In forex trading (stocks or option), because we are a single player, with a small amount of money we can't move the market. What we can do is to be a follower, follower of the big players.
To follow them, we need to know what they think and what they fell about the market.
To do that, the idea is using three different moving average. 200 moving average (long term), 50 moving average (medium term) and 20 moving average (short term).
Before we continue, do you know how to use a single moving average?
If you use a single moving average to trade, the buy signal appears when the price cross from below the line to above the line.
When using a single line, the market psychology turn form negative to positive by crossing the line. In the picture above I using 20 MA as an example. Now the short term trader has a negative feeling about the pair, they predict and push the pair lower.
What if other trader using a different Moving Average, their psychology will be different. Take a look at the picture below:
Let see what other group though about the pair.
The medium term trader, who used 50 Moving Average has the same perception about the pair. They now think that the pair will go down further.
But wait, the long term trader has a different perception. This group think that the pair was corrected and soon will be rise up again.
The scenario will be like this:
1. the price is above all the three moving averages
This mean that most of the trader believe the pair is moving up ward. They think BUY
2. the price is below all the three moving averages
This mean that most of the trader believe the pair is moving down ward. They think SELL
3. the price is below two of the three moving averages
4. the price is above two of the three moving average
This technique help you understand what other traders think about the market (pair).
Remember, this method just to know what other fell.
BUY and SELL is up to you. It's depend on your strategy.
ENJOY your trade.
Saturday 2 April 2016
Best Time to Trade Forex : The End of The Week
Many trader try to find when is the best time to trade.
Do you have one?
In the first hour of the market open?
Which market?
Japan, wall street?
Many trader believe that the overlapping between European market and US market is a good time to trade every pairs. Why because there is a lot of trader around the world who joining the market. Lot of traders mean lot of money.
For me, who do not know what happen to whole market, it very difficult to trade around that time. As we know forex market is very volatile market.
To avoid this very volatile market, some traders came up with a solution. They said " The best time to trade is at The End of The Day".
i'll give you an example why these two approach is difficult to applied. I'll use Euro to explain it.
First, 4 hour time frame at EURUSD
The red box is EURUSD 4 hour price movement at April 1 2016. At the European open, the pair is rising up. When the US open the pair continue to climb, but it fail to maintain the price. Around this overlapping market, the pair is going down but at the end it rising again. I can't handle a such market like this. Perhaps some traders can.
Second, EURJPY daily price movement
Trade at the end of day? March 31 2016 the pair break the resistance, but the day after, April 1 2016 the bar engulf the previous bar. Volatile market.
To avoid getting eat by the market volatile, i suggest you to trade weekly time frame.
I'll use EURGBP as example
Do you have one?
In the first hour of the market open?
Which market?
Japan, wall street?
Many trader believe that the overlapping between European market and US market is a good time to trade every pairs. Why because there is a lot of trader around the world who joining the market. Lot of traders mean lot of money.
For me, who do not know what happen to whole market, it very difficult to trade around that time. As we know forex market is very volatile market.
To avoid this very volatile market, some traders came up with a solution. They said " The best time to trade is at The End of The Day".
i'll give you an example why these two approach is difficult to applied. I'll use Euro to explain it.
First, 4 hour time frame at EURUSD
Second, EURJPY daily price movement
To avoid getting eat by the market volatile, i suggest you to trade weekly time frame.
I'll use EURGBP as example
Inside the red box, is the EURGBP price movement start form March 28 to April 1 2016. The first day of the week the pair going down, but the last three bar give you a very different picture.
Below is weekly EURGBP chart. The last bar break the 200 MA (red dotted line). It trigger the buy signal
Then why weekly time frame is better than others time frame. WEEKLY TIME FRAME SUMMARIZE WHAT HAPPEN IN THE WHOLE WEEK. There is a lot event, you can't analyze such a lot of news, information. The weekly time frame do it for you, just by a SINGLE bar, you will get conclusion how the market response to that news and information.
Enjoy your trade.
Sunday 13 March 2016
Forex Trading Tips: MARS trading plan
Let us start with EURGBP daily chart
If you only can trade this pair what is your plan? Are you done?
Okay, here's mine:
I trade forex with my own strategy, I named it MARS (Moving Average Resistance Support). The MARS rely on weekly time frame. The MARS needs two ingredients, first Moving Average, second price level. Below you can see EURGBP weekly chart with three moving average.
The red MA represent 200 Moving Average. The blue is 50MA and the yellow is 20MA.
Look at the last candle. It stop below the 200MA.
Now, I need to find support or resistance to setup my trade. To do this I'll use http://marstrading.blogspot.ae/2015/08/3-rule-to-draw-perfect-support-and.html?m=0
In the weekly chart I can't fine a good price level. So I switch it into monthly time frame.
Binggo.
In the monthly chart I found three spots I can use it to draw my price level and because it's above the price, we called it resistance level.
My resistance level is the white line.
Now, my chart was completed.
Because I use weekly time frame to trade. Let go back to weekly EURGBP price movement.
Wow. Binggo.
The price touched the resistance line and go down. It's common behavior.
My plan is simple:
I'll wait till the pair show me one of these two things:
1. Rejected the line
If the pair respected the level I'll open sell
2. Break the line
If the pair denied the line I'll open buy
Buy and sell is based on price action. You can wait till big bull candle or engulfing or big belt candle appear.
ENJOY YOUR TRADED
Friday 4 March 2016
Forex Trading Secret: The power of HIGHER TIME FRAME
I found a very good example to explain this.
I'll use GBPUSD, let get start with GBPUSD daily time frame
what is in your mind when you saw this?
most of you may said the pair has a down trend.
yes you were right. After that you will set up your trading and find sell signal
next, let see GBPUSD price movement at weekly time frame
wow, it give you the same conclusion, but wait a second.
let see monthly time frame
can you see something?
i'll make it more clearly with this chart
is that clear?
no?
i'm talking about price level in a higher time frame. It's all about support and resistance.
here we go:
when you evaluate currency, the first thing you need in your chart isn't the indicator's. You should mapping the currency by adding one or more price level, it can be support or resistance (3 rule to draw support and resistance level).
This level become your potential entry spot. With this level you can make your own trading plan.
So what happen to the GBPUSD:
THE PAIR now around the support level. Look at the chart below
The pair test the support level in 2001, 2009 (you can move your chart to the left to see it) and now in 2016 the pairs retest it once more.
I believe that GBPUSD will rejected to break this support. So after touching it, GBPUSD will rice again like what happen in 2001 and 2009. But we should wait for a confirmation that the market respect this level.
Friday, 4 Marc 2016, again , GBPUSD denied to go down further. The result is buy signal for GBPUSD
it doesn't mean that my analysis was 100 percent right. We buy now, but if the pair break the support, i will open sell. Only a very bad news will make it happen.
I use MARS trading strategy.
MARS use weekly time frame to analyze and entry the trade
enjoy your trade!
I'll use GBPUSD, let get start with GBPUSD daily time frame
what is in your mind when you saw this?
most of you may said the pair has a down trend.
yes you were right. After that you will set up your trading and find sell signal
next, let see GBPUSD price movement at weekly time frame
wow, it give you the same conclusion, but wait a second.
let see monthly time frame
can you see something?
i'll make it more clearly with this chart
no?
i'm talking about price level in a higher time frame. It's all about support and resistance.
here we go:
when you evaluate currency, the first thing you need in your chart isn't the indicator's. You should mapping the currency by adding one or more price level, it can be support or resistance (3 rule to draw support and resistance level).
This level become your potential entry spot. With this level you can make your own trading plan.
So what happen to the GBPUSD:
THE PAIR now around the support level. Look at the chart below
The pair test the support level in 2001, 2009 (you can move your chart to the left to see it) and now in 2016 the pairs retest it once more.
I believe that GBPUSD will rejected to break this support. So after touching it, GBPUSD will rice again like what happen in 2001 and 2009. But we should wait for a confirmation that the market respect this level.
Friday, 4 Marc 2016, again , GBPUSD denied to go down further. The result is buy signal for GBPUSD
it doesn't mean that my analysis was 100 percent right. We buy now, but if the pair break the support, i will open sell. Only a very bad news will make it happen.
I use MARS trading strategy.
MARS use weekly time frame to analyze and entry the trade
enjoy your trade!
Sunday 7 February 2016
Pair to watch February 2016 : EURJPY breakout will come soon?
i'am interested to write this currency because it show me a great opportunity trading setup.
Before we continue, i want to remind you that, i used MARS strategy.
MARS trading strategy is using weekly time frame, it's only use moving average as a filter, and the trade is trigger by breakout at the price level (it can be support or resistance).
Let's go back to see how is EURJPY price movement:
On Weekly time frame, the price is above the 200MA.
My MARS rules say that buy if the price is above the 200 Moving Average.
So our trading should be buy order, remember BUY order.
When to buy?
We must wait for breakout.
Okay, now i will remove all the moving average, and draw a price level on the chart.
I place 2 yellow doted line, horizontal line (support level) and trend line.
We will wait until the price break one of these line.
Let combine the first chart and the second one, i will show you something
After i combine it, it's look more clearly now, that it has a strong support level at the horizontal line, because the price is supported to by the 200 moving average.
My prediction is EURJPY will breakout through the trend line.
Enjoy your trade!
Before we continue, i want to remind you that, i used MARS strategy.
MARS trading strategy is using weekly time frame, it's only use moving average as a filter, and the trade is trigger by breakout at the price level (it can be support or resistance).
Let's go back to see how is EURJPY price movement:
My MARS rules say that buy if the price is above the 200 Moving Average.
So our trading should be buy order, remember BUY order.
When to buy?
We must wait for breakout.
Okay, now i will remove all the moving average, and draw a price level on the chart.
We will wait until the price break one of these line.
Let combine the first chart and the second one, i will show you something
My prediction is EURJPY will breakout through the trend line.
Enjoy your trade!
Friday 5 February 2016
Forex Trading Strategies: MARS Trading Part 2. 200 Moving Average
When we speak about moving average (20MA, 50MA, 200MA) we talk about LINE.
What will happen if you draw a line?
You will have 2 side, it can right the line and left the line or you can get above the line and below the line.
The idea behind using moving average is to divide the price into above the line or below the line. Then we will used it for analyzing market sentiment.
Let see some example:
Remember i used weekly chart, This is GBPUSD price movement
Red doted line is my 200 Moving Average. Where is the price?
it's located below the line.
Let's come to the conclusion;
1. Only place buy order if the price is above the 200 Moving Average
2. Only place sell order if the price is below the 200 Moving Average
This rule is very simple, but when you managed to master it you will discover the secret forex trading.
Enjoy your trade
What will happen if you draw a line?
You will have 2 side, it can right the line and left the line or you can get above the line and below the line.
The idea behind using moving average is to divide the price into above the line or below the line. Then we will used it for analyzing market sentiment.
Let see some example:
Remember i used weekly chart, This is GBPUSD price movement
Red doted line is my 200 Moving Average. Where is the price?
it's located below the line.
Let's come to the conclusion;
1. Only place buy order if the price is above the 200 Moving Average
2. Only place sell order if the price is below the 200 Moving Average
This rule is very simple, but when you managed to master it you will discover the secret forex trading.
Enjoy your trade
Wednesday 20 January 2016
Forex Signal Januari 2016: AUDUSD break 2015 lowest price, SELL AUDUSD
Last week (11 to 15 January 2016) AUDUSD break it 2015 lowest price to triger SELL signal
Let see it:
An interesting movement was happen last two days, after break the support level, the pair try back into above support level, but it fail. This movement give MARS trader opportunity to place the second order.
To make it clear, let see daily chart
Enjoy your trade!
Let see it:
An interesting movement was happen last two days, after break the support level, the pair try back into above support level, but it fail. This movement give MARS trader opportunity to place the second order.
To make it clear, let see daily chart
Enjoy your trade!
Friday 15 January 2016
Forex Setup Januari 2016: Will AUDUSD continue to WEAKEN??
During 2015, AUDUSD is weakning, recorded lowest price around 0,69.
And now, the pairs retest the support level (lowest price). The question is will it continue lower?
i always use my MARS technique to determine price direction.
First and the most important is 200SMA.
Where is the 200SMA? i will zoom out the chart
200SMA is above the current price, based on my MARS method we only consider sell signal. If you see the other two doted line (blue line is 50SMA, yellow line is 20SMA), it is clear that the pairs has strong down trend.
Second, find the closest price level to the current price
Now i switch it to monthly chart
There is no clear price level, let's go back to weekly chart
The closest price level is 2015 lowest price.I will wait until the price break the support level (2015 lowest price) to initiate open sell.
conclusion: wait for AUDUSD break support level at 0,69 to initiate open sell order
Enjoy your trade!
And now, the pairs retest the support level (lowest price). The question is will it continue lower?
i always use my MARS technique to determine price direction.
First and the most important is 200SMA.
Where is the 200SMA? i will zoom out the chart
Second, find the closest price level to the current price
Now i switch it to monthly chart
There is no clear price level, let's go back to weekly chart
The closest price level is 2015 lowest price.I will wait until the price break the support level (2015 lowest price) to initiate open sell.
conclusion: wait for AUDUSD break support level at 0,69 to initiate open sell order
Enjoy your trade!
Sunday 10 January 2016
Forex Signal 11-15 January 2016: Resistance BreakOut, BUY EURGBP
2015 EURGBP move in a range between 0.69 (support level) and 0.74 (resistance level).
In the beginning of 2016, EURGBP break the resistance level, and trigger buy order for MARS trader.
Let's see what happen.
This is EURGBP weekly chart:
How to read the chart:
1. Red doted line is 200 SMA
2. Blue doted line is 50 SMA
3. Yellow doted line is 20 SMA
4. White horizontal line is support and resistance line.
This is one of my favorite setup, a signal appear right at the resistane level. Do i violate the MARS rule number one (sell if the price below the 200 SMA)? Yup, this is MARS advance mode (aggressive mode).
EURGPB test the resistance at 0.74 twice but fail. Than last week, the price break it and headed to 0.78 (about 400 pips above the resistance)
Enjoy your trade!
In the beginning of 2016, EURGBP break the resistance level, and trigger buy order for MARS trader.
Let's see what happen.
This is EURGBP weekly chart:
How to read the chart:
1. Red doted line is 200 SMA
2. Blue doted line is 50 SMA
3. Yellow doted line is 20 SMA
4. White horizontal line is support and resistance line.
This is one of my favorite setup, a signal appear right at the resistane level. Do i violate the MARS rule number one (sell if the price below the 200 SMA)? Yup, this is MARS advance mode (aggressive mode).
EURGPB test the resistance at 0.74 twice but fail. Than last week, the price break it and headed to 0.78 (about 400 pips above the resistance)
Enjoy your trade!
Saturday 9 January 2016
Forex Trading Strategies: MARS Trading Part 1. The Power of Weekly Chart
The first requirement in applying MARS trading is using the weekly chart.
Why the weekly chart:
1. Easy to follow
The weekly chart shows a candle to reflect one week. One candle one week means we need only look at price charts ONCE a week. Thus you will be easy to follow price movement.
2. Summarizes the price movement for one week
If you are trading using a 4 hours time frame early, then there will be 30 candlestick every week. If you use a daily time frame, then there will be 5 candlestick. And if you use the weekly time frame, there will be only one candle stick for each week. For example, I use the price movement of ERUJPY 4-8 January 2016.
a. EURJPY weekly chart
b. EURJPY daily chart
c. EURJPY 4 hour chart
3. Avoid traders from temporary movement caused by economic sentiment.
Each week there is a lot of economic releases from different countries. I will use FXstreet economic calendar to show you. Next week:
a. Kamis 14 Januari 2015
b. Jumat 15 Januari 2015
On the day of Thursday, January 14, 2016 there are two countries with important economic indicator release, Australia and the United Kingdom (which has dark red exclamation mark). The next day, Friday, January 15, 2016 the turn of the United States. So if you can not read the economic indicators correctly (I also can not) -because the limitations of information and knowledge- example, based on indicators of the Australian release you sell the AUDUSD but the next day at the time of release of the Americans instead we have to buy the AUDUSD.
This is where the importance of the weekly chart, the weekly chart erase the temporary movement from your screen, helps your summarize what happened during the week and most importantly gives you an idea what is thought by the big players.
have a nice trade!
Why the weekly chart:
1. Easy to follow
The weekly chart shows a candle to reflect one week. One candle one week means we need only look at price charts ONCE a week. Thus you will be easy to follow price movement.
2. Summarizes the price movement for one week
If you are trading using a 4 hours time frame early, then there will be 30 candlestick every week. If you use a daily time frame, then there will be 5 candlestick. And if you use the weekly time frame, there will be only one candle stick for each week. For example, I use the price movement of ERUJPY 4-8 January 2016.
a. EURJPY weekly chart
b. EURJPY daily chart
c. EURJPY 4 hour chart
3. Avoid traders from temporary movement caused by economic sentiment.
Each week there is a lot of economic releases from different countries. I will use FXstreet economic calendar to show you. Next week:
a. Kamis 14 Januari 2015
b. Jumat 15 Januari 2015
On the day of Thursday, January 14, 2016 there are two countries with important economic indicator release, Australia and the United Kingdom (which has dark red exclamation mark). The next day, Friday, January 15, 2016 the turn of the United States. So if you can not read the economic indicators correctly (I also can not) -because the limitations of information and knowledge- example, based on indicators of the Australian release you sell the AUDUSD but the next day at the time of release of the Americans instead we have to buy the AUDUSD.
have a nice trade!
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