The Big Ben strategy

Posted by Anie | 9:08 PM | 0 comments »

Big Ben is a currency-specific trading strategy designed to capture the first directional intraday move that often occurs within the first few hours after the Frankfurt/London market openings, which begin at approximately 1 a.m. ET. The strategy works best with the British pound/U.S. dollar (GBP/USD) rate all forex trading. Currency rates with more continuous, 24-hour trading will have less of a distinct open/close as they pass through the different money centers. For example, the dollar/yen rate (USD/JPY), which dominates forex activity during Asian trading hours (78 percent of volume), still accounts for 17 percent of trading during European hours. Before explaining the specific logic behind the methodology, let’s take a look at what needs to occur for a trade to set up.

The rules
The following rules are for short trades, but the strategy can be reversed to trade on the long side.

Setup :

  1. The pair makes a new range low at least 25 pips (a pip is the forex equivalent of a tick, or minimum price fluctuation) below the opening price after the early Frankfurt/London trading in the GBP/USD rate begins around 1 a.m. ET.
  2. The pair then reverses and trades 25 pips or more above the opening price.
  3. The pair then reverses once again to trade back below the intraday low established in step 1.
  4. Sell a breakout (at least seven pips) below the London low.
  5. Once filled, place an initial protective stop no more than 40 pips above the entry price.
  6. After the market moves lower by the distance between the entry price and the stop, cover half the position and trail a stop on the remainder.
These simple rules position you to profit from common behavior that can occur in the pounddollar when the London/European market opens.

The logic
As mentioned, the pound/dollar rate tends to have lower trading volume outside
European/London trading hours because the majority of GBP/USD spot deals are worked through U.K. and European dealers. This gives the European/British interbank community
tremendous insight into the currency pair’s actual supplydemand picture. The Big Ben trade sets up when interbank dealing desks use this intelligence to trigger stops on both sides of the market, resulting in new intraday highs and lows. Once these orders are cleared from the books, the market is primed for its first real directional move of the day, which is what the strategy is
designed to capture. The logic behind this trade should be familiar to S&Pfutures traders, as it is similar to many opening-range breakout strategies used to capitalize on the first real move of the day after the cash stock market opens in New York. Read More...

Among the many uses of Taylor's numbers is the creation of the buy and sell envelopes. These are the key support and resistance numbers that traders use for short-term buying and selling. They also serve another purpose: range prediction. The numbers can be averaged to determine what tomorrow's range should look rike. Once the market has opened and traded awhile, this range can be superimposed on the market to predict the day's high or low.

Questions

  1. What are the components of the buy envelope?
  2. What are the components of the sell envelope?

Answers
  1. The buy envelope consists of the following four numbers: the average of the last three decline numbers subtracted from thelast high; the average of the last three buying under numbers subtracted from the last low; the last low; and the Trend Reaction Buy Number (the LSS Pivotal Day Sell Number).
  2. The sell envelope consists of the following four numbers: the average of the last three rally numbers added to the last low; the average of the last three buying high numbers added to the last high; the last high; and the Trend Reaction Sell Number (the LSS Pivotal Day Buy Number).
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George Douglas Taylor's contribution to technical analysis cannot be underestimated. He believed in measuring both market rallies and declines, and then averaging the numbers to arrive at some approximation of what should occur on the next trading day. He called this the "Book Method." I later incorporated these numbers into my LSS 3-Day Cycle Method, adding an additional formula that I called the Trend Reaction Numbers. These same numbers were later called the LSS Pivot Buy and Sell Numbers. Leaving aside this additional formula, let's first look at Taylor's original four key numbers-the rally, the decline, the buying high, and the buying under.

Questions
1 What is the rally number and what does it measure?
2. What is the decline number and what does it measure?
3. What is the buying high number and what does it measure?
4. What is the buying under number and what does it measure?

Answers

  1. The rally number measures how far the market rallies from one day to another. It is the difference between today's high (the last completed day's high) and the previous day's low. Accordingly, if today's high is 1274.00 and the previous day's low is 1231.00, the difference of 43.00 points is the rally number. If one is trading U.S. Treasury bonds and today's high (after the close) is 105-18 and the prior day's low is 104-30, the rally would be the difference, or 2°h2T. his number tells us that on this particular two-day period, the market rallied 2°h2in price. We might use this information to determine how far above today's low price the bond market might rally tomorrow. Hence, assuming we are going to use the 2%2 number, with a low today of, let's say, 104-19, we can estimate a rally of approximately 2°h2o, r a high of 105-07 (10419/3+2 2°h2= 1057h2).
  2. The decline number measures how far on average the market tends to decline from a prior day's high to today's low. If yesterday's high was 1294.00 and today's low is 1286.00, the decline is 8.00 points. Let's say today's high is 1323.00. Given an 8.00-point average decline, what can we expect for tomorrow's low? The answer is 1315.00, or 8 points lower, based on just one day's reading. In an actual example, we would average several declines. Let's say you are trading bonds and you arrive at a decline of 1-17. You would then subtract this number from a previous day's high to arrive at a possible low or support on
    the following day. Let's assume the prior day's high was 10517h2. By subtracting the decline number, you would arrive at an answer of 104-00.
  3. The buying high number measures how far above the prior day's high the market traded today (the day just finished). In a rising market, you will have positive buying high numbers. In a declining market (with lower tops), you will have negative numbers. The formula for buying high is today's high minus yesterday's high. So if today's high is 1249.00 and yesterday's high was 1243.00, the difference is 6.00 points, the buying high number. If we want to assume the same buying high number will prevail tomorrow, we simply add on the buying high to today's high. This will give us a target of 1255.00 (1249.00 today's high + 6.00 buying high = 1255.00). Let's say you are trading the u.s. Treasury bonds. Today's high is 103-11 and yesterday's high was 102-17. Obviously, the market has been rising rapidly, as reflected in a buying high of 26h2I.f the market continues to rise at this rate tomorrow, the buying high would give us a target top of 104-05 (103-11 today's high +
    26h=2 104-05).
  4. The buying under number measures how far today's low traded under yesterday's low. Hence, for a positive number to occur in the buying under, you must have a lower low today, since the calculation is yesterday's low minus today's low. A rising market will give you a negative number for the buying under. Let's say yesterday's low was 1260.00 and today's low was 1267.00. The market has been rising. This will give you a negative number of -6.00 for the buying under. When you go to subtract this number from today's low of 1267.00, you will arrive at a higher number-namely 1274.00-since two negatives added together result in an addition. An easier example is when yesterday's low was, let's say, 1077.00, and today's low is 1075.00. The difference is 2.00 points. Using the buying under to generate a new low tomorrow will result in 1073.00 as the target low (1075.00 today's low -2.00 buying under = 1073.00).
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Forex is actually the foreign exchange and deals in the goods, services and currency trading. Forex trading has gained prominence with the passage of time and more and more people have started chasing the trend. This concept of forex is purely based upon investment whether they are small, or big one.

Forex is also considered the economic indicator of economy and help to ascertain the financial picture of the nation. Also, forex market is the biggest financial and economical market of the world. Its money capacity is considered even larger than the equity and treasury markets.

Currency trading is the chief work undertaken in this market and thus, great risk factors are involved with them. It is also said that it reflects the true financial and economic condition of the country in a defined way. Moreover, currency trading also highlights the factors connected with the assets that country store.

It is generally said that forex is a very volatile market and prices fluctuate very quickly in fraction of seconds. So, while trading meticulous concentration should be paid so that you do not miss out any prominent moment where price has gone steeply upwards. This is considered as the most important forex trading strategy which can bring you huge sums of profits.

As per the different forex trading signals, emphasis must be paid upon the mediums through which you can get instant information. Thus, internet and mobile phones can serve the purpose in the most appropriate way. These different forex trading signals can get you access to the forex alerts all 24/7. This makes them highly convenient and hassle free service mediums.

Forex strategy system works on the economic driving force of demand and supply concept. Once the demand f any product increases steeply, it directly influences the supply side. On the overall picture of the forex trading system, it highlights the profitability of the forex market.

Forex alerts are also needed for the awareness about the changes that take place in the financial market of forex forex signals so that economic feasibility of that country can be determined accordingly. This in turn helps the economists for analyzing the different trends that influence the market. They after bring the new theories of economics that can help in understanding the forex strategy system in a better way.

Currency trading also help in exchanging the most used currency in which most of the trades of the country can be undertaken. In case, company wants to trade with any other country, at that time it requires its currency so that it can further undertake the business. Also, currency trading forms a vital part of investment that can help to earn profits.

Forex signals, forex strategy system, forex trading signal, forex alerts, forex signal and current trading are all important components often market of forex and influence the financial position of a country in a big way. So, Forex signals, forex strategy system, forex trading signal, forex alerts, forex signal and current trading should be studied in details so that you can trade in the financial markets in the most appropriate way.
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Forex Profit Hunter Review

Posted by Anie | 7:14 AM | 1 comments »

The Forex Profit hunter is a widely used automated forex trading system. It has been used by many successful forex trader on the market today. And it has been created by a veteran forex trader who uses his own manual to compile and produce a system that can not be compared to other because of it's extreme profits that has been proven to produced. Many people are attracted to place their hard earned money to forex market because, no doubt, forex trading is the easiest way to make money online. Many people believed that they can easily create their own wealth from forex trading. Yes, there is a huge possibility to make money from forex specially if you used an automated forex trading system like Forex Profit Hunter. Now, I know you are a little bit skeptical about it, that is why I'm giving you now the complete Forex Profit Hunter review.

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Forex Profit Hunter worked for many people and I'm sure that this will also be beneficial to your trading success. The system is so easy to understand, execute and used. This system already eliminates human error so you don't have to do a thing other than setting and installing it. You don't need to involved yourself, but of course you have to monitor it for at least 5 minutes a day to see your profit. I know, if you familiarize yourself to the system, you will be surprise about how easy it is to make money from forex completely on autopilot.

Anyway, the Forex Profit Hunter is highly recommended. It will surely help you make substantial income even when you are asleep. Yes, this is possible, you can make thousand of income even when you are not facing your computer, that is what Forex Profit Hunter actually does. I wish you the best of luck with it. If you still want to know more about Forex Profit Hunter then visit it's official site now!

Mandy is your friend online. Discover more about Forex Profit Hunter at my complete Forex Profit Hunter Review.

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Forex currency trading is now one of the hottest trading markets in the world today. So by learning about Forex currency trading online you could not only open the door to some incredible investment opportunities, but you may also be able to build a much more diversified investment portfolio for yourself. So how you learn forex currency trading online? Well in this article I will attempt to provide you with some information that will answer this question.

Recently, many people have become interested in forex currency trading online possibly because they heard of the large amounts of money that can be made. As a result, many big companies have now set up online currency trading operations. These websites are certainly of great help to anyone who is actually interested in learning about online Forex currency trading for themselves.

These forex currency trading websites provide you with training methods where you can learn about the subject of online Forex currency trading very easily. They will provide you with details on what are the securest and safest places for you to conduct your online trading and also how to use the various online tools and resources.

There is one particular site where you can learn about Forex currency trading online. It is the "Forex Online Trading Program" which as been created by the National Futures Association (NFA) at www.nfa.futures.gov. It starts by teaching you the basics of forex currency trading and as you progress through each step, it will provide you with the answers to any questions you may have about forex currency trading.

It is important when you are looking for a site that provides online Forex training to choose one where you will be comfortable and will be able to easily follow the information that are provided to you. Forex forums are an good source of information and you can get answers to questions you have from more experienced forex traders.

By remembering the above points, you should be able to find a good forex currency trading website that will help you find some incredible investment opportunities in the future.

Ricky Lim runs a learn forex trading online site for beginners at http://www.learn-forextrading.net. Visit his site today for more forex tutorials and articles.

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