MACD Divergence

By Ahmad Hassam

Interpreting a MACD divergence can be very useful in your trading. What does a MACD Divergence means? Just that the current price trend is running out of steam. It may not happen right away. But a MACD Divergence is a powerful hint that the market is changing. Spotting a MACD divergence correctly will only come after practice. It is easy to spot MACD crossovers and dramatic rises but not so a MACD divergence.

Suppose the price is making a series of higher highs. MACD is making a series of lower lows. What you are looking for is when the price action and MACD do not agree. Something is wrong between the two.

Most probably the traders are getting nervous. They are slowly fading out of their trades. No one is trading against the trend and yet fewer and fewer traders are in the trend. MACD divergence is seen as a sign that fewer and fewer traders are in the trend.

The only traders in the trend are nervous and jittery. They want to exit. Most of them are likely to exit their trade at the first sign of trouble. As soon as the bears muster up enough guts to short. MACD is diverging from the bullish trend. The bulls will exit and the bears will take over.

There are two powerful keys in locating times when MACD divergence is likely to represent a reversal in price. This is exactly why MACD is so powerful. It takes time to setup but when it works, it often works well.

When the price is at the double tops or double bottoms, MACD divergence can be powerful. At this point you spot MACD divergence. You are making your trading plan based on the reversal or breakout of the support and resistance (S&R). This is known as Exhaustion Pullback.

This is a sign that the price action is running out of steam. This would indicate that there are not enough committed traders to break the support and resistance. You should trade now based on rejection reversal.

MACD is also used as an overbought/ oversold indicator. When you see that it has reached its overbought/ oversold range and the price action is turning normal, this is a signal that you should avoid trading at this time.

Dont get confused and think that the currency pair is overbought and everyone is buying. When the price action reaches its extreme, you will see price exhaust and the MACD line drop back into normal zone. Dont confuse the overbought/ oversold MACD zones as trade opportunities. Avoid trading at this time.

Divergence can not only be found on the MACD line and the signal line, it can also be found on the histogram. You should note this important point. The two situations described above along with your other technical indicators can provide excellent trading opportunities to you. Master MACD divergence! - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Online Forex Investment Tools

By Bart Icles

If you are already doing active Forex trading but haven't yet tried a free Forex Buy/Sell Indicator, then may you want to try this very useful tool to help you keep constant track of Forex price variations. This can you give vital information on currency trading as it happens, and will aid you in determining what course of actions to take on particular deals you are currently involved in, or for your future trading investments.

With a Forex Buy/Sell Indicator, you are ensured that you have all the facts at your disposal, and you don't have to rely on unreliable guesswork to influence your decision making processes; with this application, you are always assured that all your trading actions are based on solid, hard facts, backed by relevant, and historical data giving you utmost confidence and convenience in your trading business.

The Internet is teeming with many websites offering free Forex Buy/Sell Indicators for you to choose from. These sites provides the specific software to help you decide whether to buy, sell, or to stay on a particular pair you are presently trading in.With the variety of choices available, you can easily try them out, and find one which is best for you and your particular needs.

One of the more popular software for Forex Buy/Sell indication is the Doubling Stocks which, other than helping you in making trade decisions, it allows you complete personal control over the trade transactions involved. Since this is not one of those automatons, you will have the assurance that whatever decisions need to be done are done by yourself and no one else. This software comes with a free trial demo package, complete and detailed in every aspect fit for beginners and experienced traders alike.

Besides these free Forex indicators, you can also find more relevant sites which offers similar yet with better features software applications for a price. The software's that are being provided are much more superior and with more additional features not available in the free sites. One such popular application is the Forex Autopilot or FAPS, which is an automated trade application software that works in tandem with you. All that is required from you is to input the basic parameters in your chosen trade and the robot will take it from there.

Whatever you decide, it's always a wise move to try out all Forex Buy/Sell Indicators, free or for purchase, and Forex Robots before finally deciding what software to use in your actual trading. This way you can judge which one gives you the most accurate and correct data thereby giving you the freedom and confidence to trade profitably in the currency market. - 23196

About the Author:

Succeeding in the forex market takes a desire to learn and a drive to become a great trader. Furthermoreforex capital markets take dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

An Honest Forex Megadroid Review

By Joe Santanna

Theres a trading robot that gets released every month so if youre looking for one, you wouldnt have any problem finding one. But the catch is that these trading robots usually operate very similarly so if you are looking for one that is one of a kind, thats when youll encounter a problem. Of all the many trading robots released, Forex Megadroid is the newest of the batch having been released just last March 31, 2009.

The question now is this: is Forex Megadroid different from the trading robots out there or is it just a mere replica?

For one, what sets Forex Megadroid apart from the countless automated stock picking robots out there in the market is that it uses present trading information to base its trading patterns to and then tweak it appropriately after its assessments. This is all so that it can come up with results that are more accurate and allow you to earn much more.

This is different from the old trading robots because they came up with their picks by collecting past trading information and making their picks based on what they gathered. Because it isnt at all up to date it can result in a lot of mistakes in the part of the trading robot.

Foreign exchange experts John Grace and Albert Pierre lent their 30 years of experience in trading to the creation of Forex Megadroid.

Forex Megadroid is the only trading robot that uses RCTPA (Reverse Correlated Time and Price Analysis) technology. Because of this, it is noted to be more accurate than the other trading robots in the market and boasts of 95% accuracy.

But just because it boasts of the newest technology available to trading robots, it doesnt mean that it is only for those with advanced computer skills. In fact, Forex Megadroid is one of the few trading robots that have a user friendly interface. You only need to follow the simple instructions to start running the program.

To top it all up, Forex Megadroid offers a virtual money account for all of its users who wish to test the program but not want to risk losing money. The virtual cash amounts up to $100 so that users can really see if the software does live up to its promises.

Because of this feature as well as the others, Forex Megadroid is perfect for beginners and experts alike. And for $97 with a 60 day refund, it is a bargain. - 23196

About the Author:

Stop. Before you buy forex megadroid Look at my honest forex megadroid review this minute!

Forex Trading Courses: Which Do I Choose?

By Michael Pepper

When you have finally decided to take the plunge and start enjoying some of the benefits that a lot of traders who are trading the forex market, then I strongly suggest to you that enroll in a great forex trading course.

You want to make sure you pick a forex course that can really help you get started on the right foot. Your top priority should be understanding the basics of trading, not just how to make money. Remember, youve got to walk first before you can run.

I know that there are a ton of forex courses to choose from, but my top recommendations dont involve educating you on a general idea. What they do is instead teach you on a specific method which you can specialize in.

The teacher of the course is regarded by most people as one of the experts in the particular field. It should be real obvious to you that the instructor has really taken the time to make his course accessible and understandable to you.

So, its your time to get your feet wet and learn about the best way to trade the forex market so you have the best chance for long-term success.

This is the kind of method that the vast majority of full time forex traders use to make their living with. They know all the ins and outs of the forex market and they understand what has to be done to make a profit. Believe it or not, its not as hard as you may think it is. You just have to get started.

The real key to having success in the forex market (or any market) is your risk to reward rate. If you can get more reward than risk from every trade that you get, there is a very good chance that you can become a pro.

The best recommendation that I can possibly give you when it comes to forex courses, is learn more about price action. This is exactly what the full time traders rely on. This is their bread and butter. It goes to show you that it doesnt really matter the kind of charting platform that you are using. The important thing is that you have a strong grasp of price movement. - 23196

About the Author:

If you want to learn more about a forex trading course, then you should definitely check out day trading strategies.

How To Chose Best Online Forex Broker?

By Lukas Veselinov

Have you been searching for a broker in forex trading? It is difficult to trying to find one but it is not impossible.But before you start, you should know what trading broker is. So, what is a trading broker?Trading broker could be a company or an individual, who will be the custodian of your money while acting on your behalf.You can expect a forex trading broker to use your money in trades based on your decisions.

It is important that you do your research to find a good forex trading broker. Here are 3 tips that will help you when you research and help you decide on the forex broker you are going to use.

First : You need to know if the forex trading broker is regulated. What that means? If the trading broker you are using is based in the United States, then they need to be registered as a futures commission merchant for the commodity futures frading commission; plus, the need to be a member of NFA (National Futures Association).

Two: Do they have a good, reliable, 24/7 help desk for customer support?

Third : Make sure you know what services they will offer to you. It is important that they offer the currencies that are the most popular, (EUR, GBP, JPY USD,AUD, CAD, CHF and USD).

Using these three tips you will be able to find a good forex trading platform with little difficulty. The important thing is to research each different forex broker that you find, then decide which one to use.

Also, considering they all offer free practice accounts, the best thing to do is: Simply join them all! By doing that you will be able to get an "inside look" for free and than compare them for real.

You got nothing to lose except little time to find the broker and trading platform You like best. And then simply start trading with your favorite broker. - 23196

About the Author:

You want to read more about rating of platforms and trading brokers? Check Smart-Product-Reviews and compare different top rated products and chose the best one .To Your success.Lukas Veselinov - Smart Product Reviews Team.