Today's Forex Prediction - August 11, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3173	1.3066
USD/JPY	87.66	86.02

See : How To Applying My Prediction

Yesterday Prediction Rate :
USD/JPY - ACCURATE (Average Error<50pips)
EUR/USD - FAILED (Average Error>50pips)

Today's Forex Prediction - August 10, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3362	1.3179
USD/JPY	86.29	85.08

See : How To Applying My Prediction

Yesterday Prediction Rate :
EUR/USD - ACCURATE (Average Error<50pips)
USD/JPY - FAILED (Average Error>50pips)

Today's Forex Prediction - August 09, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3345	1.3205
USD/JPY	85.50	84.40

See : How To Applying My Prediction

Yesterday Prediction Rate : NA

Today's Forex Prediction - Sorry, I'am on Vacation

I'm sorry if in this week I can't publish my prediction cause I'm on vacation with my family. Feel free to get my prediction next week. Succes with your trade :-)

Today's Forex Prediction - August 02, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3081	1.2974
USD/JPY	87.69	86.34

See : How To Applying My Prediction

Yesterday Prediction Rate : ACCURATE (Average Error < 50pips)

The 25 Point Discipline For Day Trader - #17 And #18

I continue my post about The 25 Point Discipline For Day Trader. And below is the 17th and 18th point.
 
#17 NEVER TAKE A BIG LOSS.ONLY A BIG LOSS CAN HURT YOU.
Please review rules #5, #8, #10, #11 and #15. If you follow any one of these rules you will never violate rule #17.
Big losses prevent you from having a winning day. They wipe out too many small winners that you have worked so hard to achieve. Big losses also "kill you" from a psychological and emotional standpoint. It takes a long time to get your confidence back after taking a big loss on a trade.

Technical Indicators - Momentum

The Momentum indicator compares where the current price is in relation to where the price was in the past. How far in the past the comparison is made is up to the technical analysis trader. The calculation of Momentum is quite simple (n is the number of periods the technical trader selects):

• The current price minus the price n-periods ago

Hence, if the current price is higher than the price in the past, then the Momentum indicator is positive. In contrast, when the current price is lower than the price in the past, then the Momentum indicator is negative.

1. Momentum Buy and Sell Signals
2. Momentum Divergences

Technical Indicators - Momentum Divergences

Identifying divergences between price and technical indicators is important aspect of technical analysis trading. Bullish divergences can signal a trader to exit their short position; similarly, bearish divergences warn that prices could correct and it is advisable to exit any longs.
In the chart below of the S&P 500 exchange traded fund (SPY), Momentum divergences can be seen:

Technical Indicators - Momentum, Buy and Sell Signals

An example of the Momentum indicator is shown below in the chart of the E-mini Nasdaq 100 Future:

Potential buy or shortsell entries are shown above in the chart.

The 25 Point Discipline For Day Trader - #15 And #16

I continue my post about The 25 Point Discipline For Day Trader. And below is the 15th and 16th point.
 
#15 LOVE TO LOSE MONEY.
This rule is the one that I get the most questions and feedback on by traders from all over the world. Traders ask, "What do you mean, love to lose money. Are you crazy?"
No, I'm not crazy. What I mean is to accept the fact that you are going to have losing trades throughout the trading session. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader.

Today's Forex Prediction - July 30, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3120	1.2992

See : How To Applying My Prediction

Yesterday Prediction Rate : ACCURATE (Average Error < 50pips)

Technical Indicators - Relative Strength Index (RSI)

One of the most popular technical analysis indicators, the Relative Strength Index (RSI) is an oscillator that measures current price strength in relation to previous prices. The RSI is a versatile tool, it can be used to:

• Generate buy and sell signals
• Show overbought and oversold conditions
• Confirm price movement
• Warn of potential price reversals through divergences

1. RSI Buy ad Sell Signals
2. RSI Alternative Buy and Sell Signals and Divergences

Technical Indicators - RSI Alternative Buy and Sell Signals and Divergences

An alternative way that the Relative Strength Index (RSI) gives buy and sell signals is given below:

• Buy when price and the Relative Strength Index are both rising and the RSI crosses above the 50 Line.
• Sell when the price and the RSI are both falling and the RSI crosses below the 50 Line.

An example of this methodology for buying and selling based on 50 Line crosses is given below in the chart of Wal-Mart (WMT):

Technical Indicators - RSI Buy and Sell Signals

The chart below of eBay (EBAY) shows how the RSI can generate easy to follow buy and sell signals:

Today's Forex Prediction - July 29, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3090	1.2946

See : How To Applying My Prediction

Yesterday Prediction Rate : ACCURATE (Average Error < 50pips)

The 25 Point Discipline For Day Trader - #12, #13 And #14

I continue my post about The 25 Point Discipline For Day Trader. And below is the 12nd, 13th and 14th point
 
#12 DON’T HOPE AND PRAY. IF YOU DO, YOU WILL LOSE.
When I was a new and undisciplined trader, I can't tell you how many times that I prayed to the "Bond god". My prayers were a plea to help me out of a less-than-pleasant trade position. I would pray for some sort of divine intervention that, by the way, never materialized. I soon realized that praying to the "Bond god" or any other "futures god" was a wasted exercise. Just get out!

Technical Indicators - Pivot Points

Pivot Points are used to project potential support and resistance levels. The main time periods used are daily, weekly, and monthly pivots. The formula for the daily pivot point, support, and resistance is shown below:

• Pivot Point = [Yesterday's High + Yesterday's Low + Yesterday's Close] / 3 

A 15-minute chart of the mini-Dow futures contract and the corresponding floor trader pivots are shown below:

1. Pivot Points, Support, & Resistance
2. Pivot Point Trade Examples

Technical Indicators - Pivot Point Trade Examples

In addition to giving buy and sell signals, pivot points give traders a good time to get out of their trade. To illustrate, during a rally some traders will set their sell orders right below the next resistance line. Thus, pivot point resistance and support lines can generate ready made profit targets.
A 5-minute chart of the Nasdaq 100 ETF (QQQQ) is shown next:

Technical Indicators - Pivot Points, Support, and Resistance

Pivot Point = [Yesterday's High + Yesterday's Low + Yesterday's Close] / 3 A 15-minute chart of the mini-Dow futures contract and the corresponding floor trader pivots are shown below:

Today's Forex Prediction - July 28, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3096	1.2949

See : How To Applying My Prediction

Yesterday Prediction Rate : ACCURATE (Average Error < 50pips)