One minute and five-minute chart

Many traders use to work in the market of one-and five-minute charts, as they provide many short-term trading signals.Therefore, these charts are ideal for scalping online forex trading currency market. But if they bring benefits? Hardly.

The main problem is that most of the data in these graphs - it is random deal, and you get false signals, making it very difficult process of obtaining permanent income. Even the best technical indicators often do not have any meaning, if we interpret them within the narrow time frame, and if they are true, then the deal may bring a maximum of 5.10 points profit.

Plus you have to fight the spread, so you'll have 3.4 points to reach break-even along with many Forex brokers. Moreover, if you hold fast and close positions, your broker will soon see through you, as most brokers oppose the initiative to conduct short-term customer trades.

Day trading. When should stay out of the market?

Many online Forex traders prefer to conduct trades in short time frames such as 1 and 5 minute charts, but you will be hard to achieve ongoing revenue in this way. Because you have to engage in combat with all the confusion that occurs at these charts, when it seems that the price moves without any purpose at random.

Therefore, you must follow one rule, while driving in a short time trades under: never join the bidding, if the average directional movement index is below 20. This indicator shows the appearance of a trend, and if it is below 20, it means that the trend has not yet appeared in the online forex trading currency market.

Thus, you can immediately decide to start bidding or not. Of course, if the average directional movement index below 20, still stands watch over a given currency pair, as well as its rise above 20 may signal the start of a new trend, especially if the directional movement indicators intersect at the same time.

Index average directional movement - this is a very useful indicator. It not only signals the absence of trends in the market, but also helps to find the optimum point for closing the position. In this case, you need to close the position if the index is the average directional movement begins to move down, especially if prior to that he was at 40 or 50.

Forums Forex: «pros and cons»

If you're trading on the online Forex trading currency on a regular basis, then you probably spend a lot of time at different Forex forums. And this is understandable, because the trader - quite a lonely profession, but forums could bring as much benefit and harm.
Let's start by discussing the advantages of Forex forums.

First, if you are an inexperienced trader, you can learn many new things on Forex forums. You can find out the views of experienced traders, as well as information on the indicators they use.
With the help of Forex forums, you can also to some extent alleviate the loneliness due to the fact that you are working at home. Lack of social interaction - one of the shortcomings of our profession.

Disadvantages of Forex forums may not seem obvious at the beginning of your career, but once you become a frequent visitor to these forums, you will realize that they can have a negative impact on your success. Some traders are willing to make public their positions in an attempt to attract the attention of others. This is a sign of selfishness. However, other traders are beginning to copy their positions. Do not run into that trap.

No successful trader does not make state, copying other people's positions. Adopt the idea of successful traders, but in any case, do not copy someone else position. And then, do you really believe that these professionals spend their precious time on forums?

Why limit order and stop order so important?

Avoid buying currency at a price higher or lower than the one that you expect, you should set a limit order. Limit order - an order to buy or sell a currency at a specified price. Limited purchase order can be executed at the limit price or a price below the limit price.Limited sell order is executed if the price level corresponds to the limit or above it.

If you have firmly decided to become a Forex trader on an ongoing basis, then you need to know everything about how to successfully install a stop order and limit order.

You'll be surprised when you find out how often are driven by your planned amount of profit and shall come into force of Stop when you're not on the computer, especially during night sessions. If you do not install these types of orders, it would mean that your theoretical planned amount of profit will be achieved, and prices begin to move in the opposite direction. But if you will not have a computer, you can not close the position at the time and lose profits.

Therefore, you should thoroughly understand your chosen online forex trading currency platform and learn how to display limit orders and stop orders. Just imagine: you get up from bed in the morning and see that the night was introduced operate your limit order, and you made a profit of 100-150 min, while asleep.

How to identify trends?

With the introduction of trading in the online Forex currency market your main goal should be to enter the position at the beginning of a trend and leave it after its completion. Of course, only some traders achieve this goal, and you do not necessarily strive for the ideal. Suffice it to guess the middle of the trend.

The most common way to identify new trends - the use of crossovers. These are the most well-known technical indicators, such as convergence / divergence of the moving average and moving average.

Eg., Convergence / divergence of the moving average often signals the beginning of a new trend, as the emergence of short-term moving average, as the intersection of the exponential moving average (5) and the exponential moving average (20).

You can also use indicator supertrend and the average directional movement index. Supertrend was specifically designed to signal the beginning of a trend. Index average directional movement - is a powerful indicator, because whenever he crossed the 17 and 23 level, this means that the trend towards.

All of these indicators can bring you profit, especially when considered in combination. More hours a frame you use, the better indicators.