Using Fibonacci Levels is the cornerstone of many successful forex traders’ systems and it is based on centuries old mathematical techniques that can be applied to almost everything in nature. The numerous Forex trading systems based on this “Fibonacci numbers sequence” result in billions of dollars in profit annually by traders worldwide, and indeed, after trading Forex for a few years, I have come to use them myself every chance I get.

I’ve learned that the ratio between numbers in the Fibonacci sequence that is significant, rather than the actual numbers in the sequence.

The definition of this Fibonacci sequence is basically formed by a series of numbers where each number is the sum of the two preceding numbers; for example: 1, 1, 2, 3, 5, 8, 13.

Quite simply, the a pair will move up, stop at a point, move back down to another point, “pivot” off of that price and the process continues forever. These “oscillations” in the price of currency pairs are clear indicators of support and resistance. Support occurs when a pair begins to be bought after a move down, and resistance occurs when a pair begins to be sold after a move up. Now, admittedly, these moves occur many times per second, but we should be concerned with support and resistance on longer time frames. Fibonacci levels, when drawn correctly, can be excellent indicators (on almost any time frame) of where a price might go next, (more…)

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Unfortunately I did not take not of the exact Forex Killer levels, but I do know they both indicated to SELL for 15, 60, 240 minute time frames and I entered just before it took another step down 20 pips, and down another 20 to where I would have put profit target level anyway because the DiNapoli target was in this area.

I could have rode this one out a little long, it just seemed like it lost steam and might push back up a little more, so I decided to lock in my profits and go. And it appears even two hours after I exited the trade, the price is has broken resistance and on the way back up. So the exit wasn’t premature, for once :D. I believe this trade proves you need to know alot more about Forex than just how to get levels and signals from Forex Killer, simply because, I read the signal correctly, it gave me a profit, but Forex Killer doesn’t tell you when or where to exit, you need to do your own technical analysis. In this trade, I felt it was time to exit simply because the Fib target and Dinapoli Targets had been reached and found support. Why stay in this trade even longer without knowing where it might go, and after volume has dropped off? No reason really, so I got out, and not a moment too soon, if you look at the charts now, we see I would have given back at least 20 pips profit. So what I learned again is that Forex Killer helps find the trend, find which way the market is likely to go, but used by own indicators to determine if Forex Killer should be followed and where to set my exit point. Personally I am happy with this trade because while people go to harpoon that big whale (100+ pips per trade), I like to find 3 or 4 25-50 pip trades, not exactly scalps and not exactly interday trading. If I can use Forex Killer to find more trades like this, $1000 per day profit is all but certain, even with losses.

The review of this signal service is brought to you after the trade is completed as to not give away any trade secrets. If you want to try out Forex Killer you can download here, or if you don’t want to give me credit download here, but don’t you believe in Karma?

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Published at (www.mo4forex.com) My notes on the significance of DiNapoli levels in Forex trading. I recently came across a site made for and/or by Joe DiNapoli, a name I’ve heard thrown around and a name an indicator in MetaTrader4 fhat I have seen and tried out a few times in the past never really knowing what it did or the signficance it had on Forex Trading. This post is a brief outline of the things I’ve learned about trading DiNapoli levels and why they are indeed a great indicator of where price movment might reach. (more…)

Got this advice elsewhere, please someone verify if this helps in Forex, I can see it does but have little indication why these settings are the best.

By using an RSI on the 1 minute chart set at a period of 18 and overlaid on the bottom of your charts tend to give the best entry signals. This can also be applied to the 5-minute chart as well. The two significant entry numbers are 25 and 75.

RSI does not (and I believe CAN not) be an accurate way to find the top and bottom of a move in Forex. Sometimes an overbought market in Forex (after a move upward) will be followed by retracement (or a correction downward) in order to gather momentum so it will continue its trend upward. Conveersely, an oversold market in Forex will be followed up by a retracement upward and gains momentum and goes down further, continuing the downtrend.

Drawing Fibonacci levels will help the most at this stage to determine possible retracement levels. In the example above, I’ve used the trend lind approach to find entries and exits in addition to reading the RSI indicator.

I remember Stochastics from when I dabbled in trading stocks a few years back. I didn’t quite grasp the importance of Stochastics back then but I now realize they are one of the most helpful technical indicators in finding which direction the Forex market will go. I do believe I used them incorrectly when I first started out trading back then, but this time I was determined to use Stochastics to my advantage, so I sought out in depth explanations and modifications to this indicator. The stochastic indicator is a momentum oscillator, which can often indicate a pair’s upcoming strength or weakness in advance of a reversal.

What Stochastics does is calculate the current close price relative to the high/low range over a period of time that you can set and displays this result in the form of 2 lines. The %K line Is the main line and is usually displayed as a solid line. The %D line is a moving average of the %K and is displayed as a dotted line here.  In the example to the right it’s in the bottom window, it’s the real wavy looking lines in red and blue.  If we compare price movements with stochastics, there’s always movements up and down, but its those big moves we want to try and catch, which is why I’ll explain below, I’ve learned you can’t just trade using this one indicator if you want better odds.

· %K line is more sensitive than %D
· %D line is a moving average of %K
· %D line gives the trading signals

The three types of stochastics are Full stochastics fast stochastics and slow stochastics.
Slow stochastics is a smoother version of fast stochastics.
Full stochastics are even a smother version of slow stochastics.

How To Read Stochastics:

Buy when %K falls below the oversold level (below 20) and rises back above the same level.

Sell when %K rises above de overbought level (above 80) and falls back below the same level.

Many experts will say reading stochastics and applying them to Forex trading, only works when the market is flat or ranging. Understandibly, in a strong uptrend or downtrend, a reading on Stochastics might not always result in tren reversals, simply because a strong uptrend will always have retracements at some point, and reading Stochastics literally on each wave up or below the overbought/oversold levels can only be indicitave of a temporary movement. It’s important to note when the market is an uptrend then Buy Signals will always have greater probability for wins. The opposite is true in a downward trending market, we’ll want to find opportunities to sell instead of buy. ALthough counter trend trading on a longer time frame is profitable for many people.

The chart below is an example of what I’ve been taught to look out for, multiple indicators of a possible reversal in trend. Here I could have tried a coulpe of things, but keeping to the Stochastics aspect, we see that the %K line flip and rise above the 80 level (#1 Indicator), simultaneously we see the top of the trend channel be tested (#2 Indicator). Now, if I just jumped right into a counter trend trade, I’d experience a few pips in drawdown AND possibly get scared out of the trade when that retracement that breaks the channel line. RSI also indicates the pair is overbought (#3 Indicator) and if I had drawn a tren line in this move up, it wouldn’t have been broken until that second little move up is over, indicating a safer place to enter (#4 Indicator). So with all of these indications the price might reverse, I still did not enter this trade, to my own detriment, simply because I am scared out of counter trend trading by alot of people who have failed miserably at it. Including myself. But when I (you) take the time to sit down and analyze the charts for multiple indicators, we can ultimately become better traders on our own terms.

On the other hand, we could always trade with the trend, in which case we’d look for places this pair is oversold, this is when the stochastics fall below the oversold level [the red line in the chart above] and returns near to the same level.

When the market is trending down we will only look for overbought conditions (when the stochastics rise above de overbought level [above 80] and falls back below the same level. This isn’t rocket science once you see it take place a few thousand times

There are two examples here how I lost money with Forex Killer’s signals, while they look like stupid entries on a 1 hour, they seem more logical on smaller time frames. In fact, Forex Killer’s signals weren’t off in these instances, as they resulted in positive pips at one point, but I set my take profit a tad too high and my stops very low. No trailing stop. So they resulted in a loss. Trade #2 was a disaster from the get go, I followed a sell signal on 15min and 60min and the market went against me after only a few pip gain, it actually spiked up just enough to hit my stop before retracing a little bit that would have let me break even.

This is why I don’t think trading Forex Killer signals without any other indicators is wise.  

This next trade I wanted to document in this post was USD/JPY again at 8PM February 3rd (Super Bowl Sunday — Go Giants), risking 1.1 standard lots, risking 51 pips and trying to gain at least 30. I set my Take Profit below the first Dinapoli level, these usually are great indicators of where price reaches and reverses on trends. In the time it took to write this intro, the price has gone almost 15 pips up, so it looks to be profitable if the trend continues as predicted by Forex Killer.

USD/JPY

15 Min — BUY – Up 75 Down 25
60 Min — BUY – Up 75 Down 25
240 Min — BUY – Up 80 Down 20
Daily — No Trade — Up 52 Down 48

—- Trade Conclusion 8:00 AM February 4th

It appears that the prediction I made about USD/JPY with help from Forex Killer and Dinapoli Level Indicator was a failiure by exactly 1 pip! The price actually touched my profit target then immediately retraced back down to 106.81. A few hours later it flirted with 107.00 but couldn’t break it. I did however did not lose money on this trade, and made a profit, although my target wasn’t reached. You can see by this example that the entry was made above at 106.78, minus 4 pip spread, would have made exactly 30 pips, but missed it by one pip as you can see in example two here. So trades like this don’t turn me off to using Forex Killer to enter trades, but it does force me to reexamine when I enter trades, how much I trust Forex Killer at what times, and to come up with better exit strategies.

Let me know if you have any comments or suggestions about my trade here. Anyone else using Forex Killer to trade this week? Comment in and we can make more pips together!

Of course holidays and weekends do not factor into these time listings here and they are subject to change, please comment me back if you know of any errors I make, as I thought this is the most up to date info available.

When looking at a map of the world and going East to West, the first major market with a great impact on Forex prices to open is Tokyo, Japan, at 7:00 pm EST.

The Singapore and Hong Kong markets both open at 9:00 pm (EST).

The German market in Frankfurt opens at 2:00 am (EST).

The London Market Opens At 3:00 am (EST). Officially marks start of European Open and it’s busiest time while one hour later at 4:00 am EST, all Asian markets have closed.

The United States starts in New York at 8:00 am (EST). By this time, the European market is coming to a close.

The New Zealand market opens at 4:00PM (EST) AND can have an impact on your trading if you trade NZD pairs, which probably have a huge margin attached to them.

The Australian market opens approximately 5:00 pm EST, slightly after the New Zealand markets, the AUD/NZD pair is usually a nice mover around this time, but again, the spread might be too much.

7:00 pm, the Tokyo market is ready to open once more, which is the end or beginning of the trading cycle.

Not knowing when markets open and close even if they aren’t currency markets can have an adverse effect on your Forex trading. In fact, you might be a Forex loser if you repeatedly miss opportunities or have the markets go against you because you were not away of Forex market hours.