200 EMA Forex Strategy - Easy For Beginners

Are you a relatively new trader looking for a solid forex strategy?

A challenge facing many new traders when developing their forex strategy is the ability to identify the overall trend for intra-day trading.

The 200 EMA (Exponential Moving Average) can solve the problem.

The 200 EMA is one of the most popular indicators of all time with Forex traders the world over, and for that reason alone is worth noting due to the psychological effect on the market place price can have when hovering around the 200 EMA.

Using The 200EMA Strategy

To use this very powerful Forex strategy, create charts on 3 time frames:

• 4 hour
• 1 hour
• 15 minute

Now plot a 200 EMA indicator on each chart and, as a suggestion, color it red, for easy visual impact.

Preferably tile the 3 windows containing your 3 charts into a vertical fashion so you can see the 3 time frames next to each other. It will squeeze up the information on the charts somewhat but for the purpose of this strategy that doesn't matter.

Now scroll through the various currency pairs you like to trade.

If you prefer to trade only pairs with a smaller pip spread, they amount to about 9.

They are:

• EUR/USD
• GBP/USD
• USD/CHF
• USD/JPY
• EUR/JPY
• USD/CAD
• AUD/USD
• NZD/USD
• EUR/CHF

What you are looking for is any currency pair that bucks the 200 EMA on the 15 minute chart.

So for example, look at the EUR/USD pair and note the position of price relative to the 200 EMA on the 3 time frames.

If price is well above the 200 EMA on the 4 hour chart, well above the 200 EMA on the 1 hour chart, but BELOW the 200 EMA on the 15 minute chart, price is bucking the trend.

The overall trend is up, price has temporarily gone against the trend and is currently in a retracement.

Using the fundamental trading principle of "buy the dips in an uptrend", "sell the rallies in a downtrend", look for a suitable entry point.

In the example given above you would look for an opportunity to buy the EUR/USD, perhaps watching for a candle signal that price has exhausted it's downward momentum, bucking the 15 minute chart 200 EMA and will soon resume it's upward momentum.

This is an easy exercise and it can be done once or twice a day, taking just a few minutes.

Watch For Price Bucking The Trend

Once you see price bucking the 200 EMA on the 15 minute chart, whereas it is on the opposite side on the 4 hour and 1 hour charts, sit up and take note. Watch carefully and grab the opportunity to get in and make some pips.

After a little practice you will see how extremely powerful this simple Forex strategy is - certainly deserving a place in your trading tool kit.

Get a useful free tip on how to use the MACD indicator for safe trading here:

http://www.vitalstop.com/Forex/Advisor/forex-strategy-MACD-save-anxiety.htm

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http://www.vitalstop.com/Forex/Candle-Chart-Patterns

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Reuters - Samsung Electronics, the world's largest maker of memory chips, denied a report saying it may cut its 2009 investment in semiconductors by more than half from last year amid a lingering downturn.

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Learn Currency Exchange - 4 Tips for Trading Success

If you want to learn currency exchange then the 4 tips enclosed will help you achieve currency trading success. The tips are simple to learn easy to apply and will help you make great profits so lets look at them.

1. Success Comes From Within

This may seem obvious - but most traders fail to understand it and that's why there is such a huge market in people on the net telling you they can give you success all for a $100.00! Simply follow their automatic forex trading system and financial freedom can be yours. Of course, common sense tell you it's not true and its not. No one is going to give you money or success, you have to work for it and do your homework.

Forex trading relies on not just having a trading method but learning how to apply it with discipline. You will only ever be able to apply a method with discipline, if you have confidence in it and this means learning how and why it works and knowing why you will win with it.

If you don't have confidence when you hit some losses you won't be able to keep executing your system with discipline, so you have no system at all.

If you want to learn currency trading exchange correctly, then the first point to keep in mind is you're on your own and need to do your homework.

2. Keep It Simple

We live in a world where people admire complexity and cleverness - but it won't help you in forex trading and that actually is good news. The best currency trading systems are simple and you need to keep yours simple too.

Why?

The reason is - if you make a trading system to complicated, it has more elements to break and it will collapse in the brutal world of trading.

You can build a great forex trading strategy around: support and resistance, with a breakout methodology and a few confirming indicators and have a very robust method for success.

In forex trading your need a simple system that is robust and easy to understand, so you can have the confidence, to apply it with discipline, for forex trading success.

3. Do You Really Want to Make Money?

This may sound an odd question to ask but most people who set out to learn currency trading exchange don't appear to want to make money, they simply want the buzz of trading and act like gamblers.

How many novice traders for example try day trading as a methodology? Loads yet its guaranteed to lose money as the logic is flawed. Other traders trade news stories and chat in forums. These people don't have money making on their mind as their first consideration, its all about excitement and emotion and that's a sure fire way to lose.

If you want excitement then do something else, like go the casino - if you trade forex, you should trade to make money and that's it.

I know traders who trade less than ten times a year and yet compound 100 - 200 % or more per annum.

This is because trading frequently has nothing to do with how profitable you are. The high odds trades don't come around that often. To Enjoy forex trading success, you need to trade the high odds trades so be patient.

If you are patient and trade infrequently you will make far more money than the trader who trades all the time.

4. A Trading Edge

If you want to learn currency trading exchange the right way, you need to understand that you need a trading edge. A trading edge is something you have and will allow you to make FX profits, when 95% of traders lose.

You need to know, be able to define it, have confidence in it and be able to apply it with discipline.

If you don't know what your trading edge is, you simply don't have one and its back to learning currency exchange until you do.

Anyone can learn currency exchange the right way and if you do it correctly and you take all the above points into consideration when devising your forex trading strategy, you can enjoy long currency trading success.

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For free 2 x trading Pdf's with 90 of pages of essential info and more on Learning Currency Exchange visit our website at: http://www.learncurrencytradingonline.com

Reuters - U.S. consumers sought bargains on toys, clothes and electronics as holiday shopping kicked off this weekend, but an early rush to stores was slower this year and was not likely to change a weak outlook for the season, analysts said on Sunday.

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