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5 Dynamic Ways to Trade Forex
Kathy Lienwww.bkforexadvisors.com
*Past performance is not indicative of future results.Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Kathy Lien and Boris Schlossberg are employed as Director of Currency Research for Global Forex Trading, a division of Global Futures & Forex, Ltd. (GFT). However, BKForex Advisor, which is a company owned and operated by Kathy and Boris separately and independently from their employment with GFT. GFT does not control the content of the BKTraderFX.com web site, and opinions expressed by Boris and Kathy on the BKTraderFX.com web site are not necessarily the opinions of GFT. FX 360® is either a registered trademark or a trademark of Global Futures & Forex, Ltd., in the United States and/or other countries.
This information should not be relied on as a substitute for extensive independent research before making your investment decisions. BKForexAdvisor is merely providing this for your general information. The views of this author are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. In addition, any projections or views of the market provided may not prove to be accurate. Global Forex Trading will not be responsible for any losses incurred on investments made as a result of any information contained in this presentation. Global Forex Trading and BKForexAdvisor do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.
B
Source: captaincurrency.blogspot.com
Do you ever feel like this?
Technical Analysis
Only Two Types of Markets
Source: DealBook® 360
Why do some people like to trade trend and others like to trade range?
What do you like?
Which is better?
K
Source: DealBook® 360
What is it ‐ trend or range?
How do you define it?
20 SMA
ADX
B
Technical Analysis
Source: DealBook® 360
Source: DealBook® 360
Which currency pairs have the widest daily trading
ranges?
Source: DealBook® 360
Source: DealBook® 360
Volatility Trends – EUR/USD
Source: FX360.com
Volatility Trends – GBP/USD
Source: FX360.com
Volatility Trends – USD/JPY
Source: FX360.com
Using double Bollinger Bands to trade trend and range
What is the standard way to trade Bollinger Bands?
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
What are double Bollinger Bands?
20 Period, 2 Standard Deviation20 Period, 1 Standard Deviation
2 BB = Outer Lines1 BB = Inner Lines
1. Using BB to determine trend or range
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
2. Using BB to pick tops and bottoms
Source: DealBook® 360
Source: DealBook® 360
3. Using BB to buy at value
Source: DealBook® 360
Source: DealBook® 360
4. Using BB to enter new trend
Source: DealBook® 360
Source: DealBook® 360
Increase your chance of success by keeping an eye on data.
Increase your chance of success by using the T1‐T2 Method
Trading two lots allows you to let profits run.
Strategies
X-Treme Fade
X-Treme FadeIndicators1. Bollinger Bands
20, period, 3 standard deviation20 period, 2 standard deviation
2. ADX < 25
3. 15 Minute charts
X-Treme FadeStep # 1
Watch the currency pair
Close at or above the 3 SD BB
X-Treme Fade
Source: DealBook® 360
X-Treme FadeStep # 2
Wait for the pair to move from
3SD to the 2SD – look for a close*
*Below for 2 SD Long
*Above for 2 SD Short
X-Treme Fade
Source: DealBook® 360
X-Treme FadeStep # 3
Check to see if
ADX is less than 25
X-Treme Fade
Source: DealBook® 360
X-Treme FadeStep # 4
Long trade: Buy at open of next candle
Short trade: Sell at open of next candle
Source: DealBook® 360
X-Treme Fade
X-Treme FadeStep # 5
Stop – Swing high or low
Approx 15‐20 pips
X-Treme Fade
Source: DealBook® 360
X-Treme FadeStep # 6Target
1x Risk and trail
OR
2x Risk
X-Treme Fade
Source: DealBook® 360
X-Treme Fade
Source: DealBook® 360
Let’s Get Down To Business
Trading Plan = Business Plan
If you don’t write it, you won’t do it.
1. How will you trade?
2. What will you trade?
3. What risk control will you use?
4. How often will you review your results?
What is the perfect order?
Up Trend
10 SMA
20 SMA
50 SMA
100 SMA
200 SMA
Down Trend
200 SMA
100 SMA
50 SMA
20 SMA
10 SMA
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
Source: DealBook® 360
Forex Trading involves high risks, with the potential for substantial losses and is not suitable for all persons. Past performance is not necessarily indicative of future results.
Questions
*Past performance is not indicative of future results.Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Kathy Lien and Boris Schlossberg are employed as Director of Currency Research for Global Forex Trading, a division of Global Futures & Forex, Ltd. (GFT). However, BKForex Advisor, which is a company owned and operated by Kathy and Boris separately and independently from their employment with GFT. GFT does not control the content of the BKTraderFX.com web site, and opinions expressed by Boris and Kathy on the BKTraderFX.com web site are not necessarily the opinions of GFT. FX 360® is either a registered trademark or a trademark of Global Futures & Forex, Ltd., in the United States and/or other countries.
This information should not be relied on as a substitute for extensive independent research before making your investment decisions. BKForexAdvisor is merely providing this for your general information. The views of this author are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. In addition, any projections or views of the market provided may not prove to be accurate. Global Forex Trading will not be responsible for any losses incurred on investments made as a result of any information contained in this presentation. Global Forex Trading and BKForexAdvisor do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.