Forex Trendline

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Trendline EA for Visual Chart Trading on Metatrader 4

One of a key element in forex trading is the visual chart and learning to identify trading chart patterns can help to make wise decisions in trading.  Technical chart patterns will also provide insights to future market movement of the currency prices, which is the foundation of technical analysis. 

Go to this trendline ea blog to read more on visual chart trading on metatrader 4...

http://forexgeometry.blogspot.sg 

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ForexGeometry Has Just Been Updated

Hi All, 

Due to recent Mt4 updates, there was an issue in the nameoftrade parameter which caused instability while using the expert advisor. As a result, there was a revision to ForexGeometryEA-v30-1.ex4 .

Head on to this trendline ea url for more information 

regards,

Warren Seah 

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Trendline EA Assists Trading Trendline Breakouts in Metatrader 4

Trendline EA Assists Trading Trendline Breakouts in Metatrader 4. Trendline EA assists Forex traders with a charting software that turns any trend line drawn on the trading chart into an active pending order. Forex traders who are looking to automate their strategy plan and leaving all the trade execution to a software will find this trend line ea a handy tool for them while trading with the Metatrader 4 platform. Trendline EA software is built by Flagforex brand and is made available on ForexGeometry.com. 

http://www.prweb.com/releases/2013/3/prweb10509051.htm 

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Forex Trendline Break EA For MT4

Forex breakout Strategy is an excellent and extremely popular way of spotting major market moves in their earliest moments. There are many different theories to trade Forex and one of the safest and most reliable methods is trading technical chart breakout patterns.

At some point a currency pair will slow down on its overall trend, this is known as consolidation of a price. This motion of consolidation when viewed in chart format can take the appearance of triangles, wedges, flags, pennants or rectangle channels being formed, it is the breakout strategy of these triangles that traders can look forward to trade breakouts.

Over the years, technology has advanced but sadly most Forex breakout strategies have not. Today, if you're still drawing support/resistance lines and simple trendlines to form wedges, triangles and the like to identify your breakout setups, then it's no wonder that your Forex breakout strategies are not working.

Simple lines are no longer sufficient to give you a big edge in breakout trading, especially in the ultra fast moving arena of Forex market. Breakout happened fast and furious. By drawing simple trendline  on the charts provides only a visual note to trader. However, it provides no value to overall trading performance because no trade entry or exit was made at the instance of trendline break.

True breakout takes awhile to happen and is hard to come by, so this genuine signal cannot be missed. It requires constant monitoring of market to ensure that this trade signal will result in a trade entered in the intended direction. In order to trade forex breakout strategy, breakout traders have started to make use of technology to automate part of the market monitoring work to software like trendline break EA commonly known in the MT4 community.

These smart tools can effectively recognize a breakout patterns first identified by the traders. Then, it is tasked to monitor the market on the trader’s behalf. Once breakout pattern is confirmed by way of trendline breaks, the EA will then execute trade entry and exit from the traders’ trading system.

The key to success with Forex breakout strategies is in recognizing that breakouts don't happen after every consolidation. There is only one reason why there are breakouts in Forex, and that's when trades are piling into the markets one after the other. This can be as a result of high impact news releases, such as the non farm payrolls or interest rate announcements, or in periods following market opens.

In order to filter off unwanted breakout patterns that make us lose money, we can introduce a few indicators into our breakout strategy so as to reduce the number of trades which result in false breakout. We only want the best breakout signals. Forex geometry system is a good trendline EA for trading breakouts in MT4 that allow traders to select any MT4 standard indicators to acts as a filter.

If we introduce ADX into our breakout strategy, my personal use on this indicator is to introduce an ADX rule that in order for breakout to be genuine, the ADX values must be below 15. ADX 15 tells us that market is in very tight range and consolidated for a while. Introducing this ADX will ensure that all trendline break signals which has a ADX value of 15 and above will be ignore by the EA. Only when the ADX rules applies together with trendline break will then result in a trade entry made by EA.

  Anyone who is new to trading forex and wants to get started with a time-tested and proven strategy. Next, he must learn to make use of trend line EA or similar software to ensure that he has the edge in executing trades that are of high quality and fast reaction entry upon genuine chart breakout patterns.

About the Author

Warren Seah is the author of the book titled ‘How to be a Currency Trader’ found on the Amazon Kindle Market. He has built a forex software brand called Flagforex which has over 400 satisfied customers. He personally has been developing forex software that serves to automate forex traders strategy plans thereby,  freeing up their time to monitor the market. For more information on working with trendline ea on MT4, head to this url now: http://www.ForexGeometry.com 

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Forex Trendline: A Great Trading Tool To Manage Trades

The forex world is dynamic and complex. Currency values are known to change within short periods of time and they do so significantly. This is often determined by a variety of factors such as the economic state of countries, geo political events, weather and any adjustments in the corporate world. Given the number of times that the forex world keeps changing, it is important to develop a good trading system for currency. When learning how to become a currency trader, these are some of the things that a person has to be aware of.

A currency trading system defines exactly how, when and why a trader will enter the currency trading market. Along with an entry strategy, a currency trading system also needs to have a risk management strategy and a trade management strategy too which is easily can be done through a simple tool like forex trendline. No currency trading system is foolproof and every currency trading system has a few flaws. Nonetheless, steps can be taken to improve a currency trading system and its performance.

1. Identifying conditions for wins and losses

In order to improve a currency trading system, conditions that favor more wins must be identified and added to the system. First of all, the currency trader has to determine what makes their system strong and also what are the weakest points of the system. Since this is not something that can be done overnight, the currency trader should take some time to observe the patterns that develop over a period of time.

This is the only way the system will improve and the percentage of losses will be reduced. Similarly, conditions leading to losses should also be identified and cut out of the currency trading system. Traders should keep a good trading journal, which will help them with record keeping so that they can learnt from their past trading mistakes and improve on current trading. Notes should be recorded on why trades were won or lost. This is how the conditions for wins and losses will be identified, which can then be added or remove from the currency trading system.

2. Managing trade exits

Traders who manage how they exit their trades will not only improve their currency trading system, but will also increase the size of their wins and reduce the size of their losses. One step that traders can take to manage how they exit trades is to use trailing stop as a part of their currency trading system. They will be able to set up these trailing stop losses to move up automatically when a trade goes into positive territory. When profits are maximized this way with minimal risk, the system will be improved with the size of losses reduced, and lastly; the win ratio will increase.

Sometimes a great tool such as forex trendline can be used to mark out various exit points or identify support and resistance levels that are potential exit levels which traders can take advantage of. This tool can be programmed with the right logic to carry out orders in managing the exits of the existing trade. Thus a more efficient and effective trade management system will assist the trader to scale better profits upon trade exit.

3. Being patient

Once the first two steps to improve the performance of a currency trading system have been taken, traders might feel tempted to act upon their 'improved' system. However, their system is not yet completely improved, so they should be patient. Even though changes have been made to the currency trading system, understanding that sufficient time is required for those new changes to take effect. Once traders have gathered the information related to the above two steps, they should spend time to evaluate that information to ensure the changes made to their trading system will be effective. A good time to observe for the new effect is about 1- 3 months or at least 200 executed trades. Thereafter, evaluation can be carried out to see the effectiveness of the new implementation.

4. Running proper tests

The main purpose of improving a currency trading system is to identify the circumstances that are causes more losses to occur and less wins to take place. Once those conditions have been identified and have been respectively added or cut out of the system, traders must put their improved currency trading system to the test on demo accounts before they begin using it to trade with real money. If their currency trading system actually proves to be fruitful, then it will lead them toward huge success, if not, then further amendments might have to be made to further improve the system.

In addition, a trading tool to assist traders in testing out new ideas which is forex trendline is a simple choice as many significant price levels and patterns can be marked out easily with it.

A currency trader shouldn’t change their strategies everyday as this will do them no good. In fact, it is just counter-productive. They should avoid random actions which is something that is common among currency traders. It is better to wait out and develop sensible strategy.  Nonetheless, these four simple steps will help currency traders figure out what was previously wrong with their system and what they need to add to improve it and increase their wins.

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Forex Trendline Tool And Knowledge To Improve Your Trading System

No matter if you are a new or seasoned currency trader, there is always scope to improve your trading skills. So if you need help at improving your currency trading system, here are a few steps worth knowing.

Test strategy across all currency pairs

The first thing to do is to plan a sound strategy, and stick to it while trading. This is why the adage ‘if you fail to plan, you plan to fail’ is so common, and especially important in currency trading. So it is important that traders first understand the traits and characteristics of each of the currency pairs.

This is because some of the currency pairs are rather volatile and tend to fluctuate every day. There are also some currency pairs that are rather steady, and move slowly over long time periods. The next step is for the trader to determine which currency pair is best suited to trade with based on their risk parameters and trading strategy. And the only way to perform a test is to do a test run on various currency pairs and select the currency pair that yields the best result with your strategy.

Trade Duration

To improve in currency trading, traders have to decide how long they decide to stay in a particular position. This should be decided based on the chosen currency pair and if the position should be held for minutes, hours or a few days. The trade duration may affect the overall profitability due to rollover charges that eat into profits and other characteristics.

Trader needs to understand and strike a balance between overall profit and trade duration. Have they observed any relationship between trade duration and profitability? Is there a trend where the longer a trade duration, the greater the overall trading profits? Is there any obvious and clear relationship between these two components? You get the idea; so a trader needs to find the optimal trading duration to achieve best overall profits.

  Exit strategy

Not only do traders have to decide how long they should stay at a particular position but also their exit strategy. This means they have to decide the rate of crashing out of the trade when they are in the winning position and the rate to cut losses if in a losing position. Accordingly, traders should decide on their stops and limits with the help of forex trendline trading tool found in the MT4 platform.

There are far too many exit strategies to choose from. The best exit strategy is one that will increase your overall profits with lower risks. How can this be achieved? Consistent rigorous testing needs to be done on your trading strategy with the various exit strategies. How I wish I could provide you with the best exit strategy, however the best strategy does not exist. Therefore, you’ll have to perform your due diligence to test it out to know the answers.

  Observing key support and resistance levels

Traders should also incorporate currency news to monitor market information and technical support and resistance levels that affect their positions as this helps improve their trading returns. Normally traders will employ forex trendline as a useful tool to help identify key support resistance levels as well as provide a visual overview of the market condition. Together with forex trendline tool and the right analysis of the price charts, traders can easily implement their trade entries or exits in any trade. Alternatively, one can simply lower a substantial amount of risk by using scaling in trade entries, scaling out trade exits or shifting stop loss to breakeven points as soon as these key levels are reached by the market price.

Maintain a trading journal

Many traders tend to fail at currency trading because they keep on making the same mistakes. To learn how to be a currency trader who make lesser mistakes, traders have to maintain a trading journal or also called trading diary to keep track of the strategies that work for them and those which don’t work for them.

The journal should contain important information of their trading performance. These include the date and time of taking a trade position, the rate paid for taking the trade position, the reason for the trade position, the strategy for the trade position and the date and time of exit of the trade position.

Addition information that proves useful and should be included in the diary is the rate and reason for exiting the trade position, if the trader had followed their planned strategy and the profit or loss incurred in the transaction. Based on this compiled information the trader can recognize successful trading patterns and spot them the next time they trade. This journal will also keep a history of the mistakes they made and should be a reminder to them not to commit those mistakes again.

With the help of these tips, it is possible to improve any trader’s currency trading system for the better. I am sure you get the idea. Many ideas presented here require the currency trader’s due diligence to test their strategy, bring some small little changes so that their system can be optimized to bring in greater overall profits. Also by using appropriate trading tools such as forex trendline tool, traders can fully optimized the effectiveness and efficiency of their trading process.

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Forex Trendline Tool To Help In Trading Technical Chart Patterns

In currency trading, the movement of currency prices creates distinctive formations that are known as chart patterns. Common points or lines are connected over a period of time in order to define a technical chart pattern. Closing prices, highs, lows, etc. are connected by these lines of points or what we commonly use know as a Forex trendline tool available in Metatrader 4 platform.

In order to predict an underlying currency pair's future price movements, these chart patterns are used in technical analysis in conjunction with the forex trendline tool. The tool available is a useful feature that assist trader in identification of key price levels and also to mark out elusive chart patterns that traders may often miss out on.

Identifying these chart patterns on the currency chart for a new starting trader will take some time. It is definitely going to take time and experience to understand market movement and pattern formation.

While starting traders may often identified the patterns too early in their formations, due to their excitement may as a result place trade entries too early based on the lack of pattern confirmation which may leads to false trading signals. Therefore it is great if there is a customized forex trendline trading tool that can help in the execution of trade entries based on proper trading signals and the monitoring of the trade process all on automation.

Going back to the five most important trading technical chart patterns in currency trading that all traders should be familiar with:

- The Wedge

- Head and Shoulders

- Channels

- Descending Triangle

- Double top

The Wedge

The wedge pattern has two variations. The wedge pattern actually is a reversal pattern, which indicates the occurrence of a reversal of the pattern within the wedge's boundaries. Thus, the bullish reversal pattern is the falling wedge and the bearish reversal pattern is the rising wedge. The lows and highs of the candlesticks are connected to form the wedge, as a result of which a pattern is produced. In the wedge chart pattern, the slope formed by the upper trend line is sharper than the falling wedge and the slope formed by the lower trend is sharper than the rising wedge.

Head and Shoulders

As the name suggests, this trading technical chart pattern resembles a head flanked by shoulders on both sides. When the highs of the candlesticks are connected by a trend line forming tow troughs and three peaks, then the head and shoulders chart pattern is formed. The head refers to the larger price peak and the shoulders refer to the smaller price peaks. The head and shoulders chart pattern is a bearish pattern. For sellers, a favorable break in occurs when a small descending triangle starts appearing.

Descending Triangle

The descending triangle is a bearish pattern is formed when lower highs form an upper trend and the lows form a lower horizontal trend line, both of which converge with each other. Eventually, a bearish breakout occurs at the lower horizontal forex trendline.

Channels

Ascending channels, descending channels and horizontal channels are some of the variations of channels. Channels are defined in the same way regardless of which variation is seen on the chart. Channels are defined as technical ranges with prices that have traded in for the time being. When the price range trends upwards ascending channels occurs, when the range trends downwards descending channels occurs and when the range consolidates sideways a horizontal channel occurs.

  Double Tops

Double tops, is a bearish reversal trading technical chart pattern by one trough in between two successive peaks. The level of the peaks is almost the same. The trough acts as a temporary support and the neckline is formed by a horizontal line that is drawn at this point.

Out of all these chart patterns the head and shoulders and the double tops patterns also have reverse patterns known as the Reverse Head and Shoulders, and the Double Bottom patterns. As mentioned, traders get a signal from these trading technical chart patterns that it is profitable for them to buy or sell certain currency pair. Thus, these were five of the most important currency trading chart patterns every trader should be aware of.

In addition, all traders should have a look at a simple method at www.forexgeometry.com to trade these technical chart patterns on full automation based on the traders’ personalized trading plan efficiently and effectively.