Caroline Carlin's Blog – November 2010 Archive (15)

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In the world of Forex investments, there is a lot of ways to start operations in a real account. For example, you can trade yourself your own capital, you can hire special services that offer to send trading alerts or signals, and trade those on your account or you can even pay a professional to handle your account so you do not need to have any direct… Continue

Due to the actual volatile nature of the Forex market, some investors are in a cautious position and evaluate the possibility of withdrawing all their investments, hoping to enter again when the market would improve. In this context, diversification becomes paramount since it allows to realize small investments, although with a short term target and with little profitability. Nevertheless, in times of instability, this turns out to be favorable anyhow, since a secure investment… Continue

If you are thinking about entering the Forex market, you should be conscious that this requires a fair amount of time investment and is a thorough process. As in many professional careers, the beginner trader has to go through a process of preparation and practice in order to succeed and Forex is not the exception. In this article we will examine Backtesting, which is an important part of the processes that all traders should realize.



Forex… Continue

You have certainly heard that the Forex offers the possibility of generating a steady and fruitful income and this is the reason why this market has been getting at its peak in the last years. Many operators have realized through time that it is indeed possible to generate income trading the Forex and every day more software, hardware and strategies are created to facilitate the realization of successful transactions.



Many traders, either… Continue

The following previsions for 5 majors (EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD) and Gold, are based on Daily charts.

EURUSD = BEARISH (R:R = 1:3)

RES2 = 1.4283

RES1 = 1.3919

SUP1 =… Continue

The Carry Trade technique is one of the best known and employed in the financial world. Most institutions and management businesses implement it, and it is a simple way to earn money. This strategy works as follows: You borrow from a low interest rate currency and buy a currency with a higher interest rate. The goal is to make profits from the spread or difference between both interest rates.…

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What can be said about forecasts? Use actual and future market trends with available data and facts to forecast. Analysts trust technical and fundamental statistics to predict the direction of the economy, the stock market and individual stocks.

Why should you worry about oil prices if you are not buying or selling oil? If you trade currencies, there is a good reason to take this price into account. The…

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Gold Trading has its origins in the past, when this metal was a symbol of wealth and social status, as it was primarily used as a reference to establish the currency exchange rates. “Gold pattern” is a monetary system where the value of the currency is defined by a specific weight in gold. Under this standard paper money is guaranteed up to that amount of gold by those who print the currencies. It was used in the past to trade commodities and exchange with other currencies. Those… Continue

Economic cycles are successive periods during which the economic activity is more or less good. The evolution of economic activity is called economic situation. The growth of the economy is not continuous. There are 4 phases in an economic cycle:

- Rally : It is a reversal point between recession and growth phases.…

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Successful trading depends, in my opinion, 80% on psychology and 20% on methodology. This is why self-knowledge and studying one’s own behavioral patterns represent the key to success.We all well know that the Forex market is highly volatile and that generally decisions have to be made in very short spans of time. Uncertainty dwells above all things, and though nowadays we can count on many tools and techniques, nobody knows for sure what will happen to the market prices. In… Continue

Divergences occur when the price of a currency pair and an oscillator-type indicator move in opposing directions. In technical analysis, you can make decisions by identifying situations where the divergence (for example the price of a currency pair moves in a contrarian direction from another indicator as for example the Moving Average Convergence/Divergence – MACD).

There will be a divergence… Continue

It seems almost unbelievable, but sometimes the simpler things can be the harder to accept and understand for some people. When one keeps on advancing in this exciting world of trading one encounters a lot of people that do not have a clue about how to manage an account, be it a demo or much worse, a real trading account. I hope this article helps them to grasp a few essential points and keep them present in mind at any time.…



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This week’s candle for the Euro-Yen has pierced the steeper down-trend line and is trading above the 25% retracement where it encounters a strong resistance area which had been repeatedly holding as support from October 2008 to February 2009, finally pierced in last May and subsequently broken to the downside.

According to the Trendline Staircase Strategy, we could expect the currency pair to push forward…

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The following comments were made by real traders, some professional and other well advanced in their learning curve, who at some point have shared with me their own experiences. Can you recognize yourself in any of the statements below?

Trader A: “I have been trading for the last two years and started with demo accounts, things were going quite well and then I opened my real account. At the beginning…

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The Trendline Staircase Strategy is a very simple system based on diagonal supports or resistances, and a sequential series of previous trend lines. It can be employed whenever there has been at least one steep deviation from the average angle of the main trend causing the formation of a new trendline.



On the example shown with the GBPJPY Daily chart below, we can appreciate a sequence of three successively steeper trend… Continue