Moving Average Cross Trading Strategy

Moving Average Cross Forex trading strategy — is a simple system that is based on the cross of the two standard indicators — the fast EMA (exponential moving average) and the slow EMA. You can also use our free Adjustable Moving Average Cross expert advisor to trade this strategy automatically in MetaTrader platform. Feature

s Very easy strategy to follow. Simple indicators used. It's easy to set stop-loss. Moving averages are laggy — can lag up to 10 bars. Ineffective during the flat markets. Strategy Set-Up Any currency pair and timeframe should work. Add an exponential moving average to the chart, set its period to 9, apply to Close, set color to red (optional) — this is your fast moving average (FMA). Add another exponential moving average to the chart, set its period to 14, apply to Close, set color to blue (optional) — this is your slow moving average (SMA). Entry Conditions Enter Long position when FMA crosses SMA from below. Enter Short position when FMA crosses SMA from above. Exit Conditions Stop-loss for Long positions should be set to the Low of the last candle before the cross occurred. For Short positions — to the High of the last candle before the cross. Take-profit should depend on the stop-loss and should be not less that stop-loss. I recommend setting TP to 1.5 * SL or 2 * SL. If another cross appears before the stop-loss or take-profit are triggered close the position. Example As seen on the example chart, entry conditions are quite clear and with the proper TP/SL ratio, this strategy can be quite profitable. Warning! Use this strategy at your own risk. EarnForex.com can't be responsible for any losses associated with using any strategy presented on the site. It's not recommended to use this strategy on the real account without testing it on demo first. Discussion: Do you have any suggestions or questions regarding this strategy? You can always discuss Moving Average Cross Strategy with the fellow Forex traders on the Trading Systems and Strategies forum. 

\Shorting AUD/USD at the Top of the Channel - Locked in Some Profits! Posted 08:57 08 December 2011 | 14 Trade Update: 2011-12-08 8:56

Time to lock in some pips! Looks like it's going to take more than a couple of disappointing economic reports from Australia to rain on the Aussie bulls' parade! A few hours ago we saw AUD/USD plunge below 1.0250 when Australia released its employment reports. Not only did the country's unemployment rate rise to rise to 5.3%, the number of employed actually decreased by 6,300 in November! Unfortunately for my trade, the bearish report wasn't enough to firmly place AUD/USD below the 1.0250 mid-range support. The pair bounced off the minor psychological handle, and even went back to near my original entry area a few times! Since 1.0250 was holding like a boss, I decided to tweak my trade plan. I closed my first position at the 1.0250 support when it w

as retested a couple of heartbeats ago, and then I moved the stop of my second position to break even. What do you think of my new plan? Should I have closed my second position early, or should I wait for the pair to break 1.0250? As always, your thoughts are much appreciated! @Happy_pip Twitter Playing with Comdolls Facebook page Happy Pip Comdoll Corners MeetPips.com Just keep pippin'! Just keep pippin'! Trade Idea: 2011-12-07 00:57 Ho hum, it looks like most pairs are consolidating lately and I just can't resist this opportunity to play the AUD/USD range. As Big Pippin pointed out in today's chart art, the pair has been stuck between support at 1.0150 and resistance at 1.0300. Stochastic is already lingering at the overbought zone, suggesting that Aussie bears are ready to pounce. But, until the oscillator crosses downwards, the bulls could still take the pair up to the top of its current range. You might be wondering why I have a bearish bias on the Aussie. Well, wonder no more! You see, the RBA just cut rates by 0.25% this week, bringing their benchmark rate from 4.50% to 4.25%. If you've been keeping track of the RBA rate decisions, you'd know that this was their second rate cut this year, as the central bank continued to worry about persistent global economic threats. Besides, there's still a lot of uncertainty in the markets as traders await the outcome of the EU Summit on Thursday. With that, the markets would probably be in for a lot of sideways movement until then unless we see any huge shifts in market sentiment. Here's my trade idea: Short AUD/USD at 1.0300 SL at 1.0340, PT1 at 1.0200, PT2 to be determined I'll be risking 0.75% of my account on this trade and I'll be moving my stop on the rest of my position to breakeven once my first target gets hit. I'll keep the remaining half open and cross my fingers that this pair goes all the way down to parity or lower. Hey, those gaps still need to get filled! What do you think of my trade idea? Will I catch another win with AUD/USD? I'd love to hear your thoughts so send 'em through any of these accounts: @Happy_pip Twitter Playing with Comdolls Facebook page Happy Pip Comdoll Corners MeetPips.com Chips, dips, and give Happy Pip those pips! Currently 4.5/512345 Rating: 4.5/5 (11 votes cast) Related Posts: Shorting USD/CAD at the Top of the Channel - Avoided a heartbreak! 03:08 22 November 2011 USD/CAD: Trading the Intraweek Range - Trade Update 06:12 25 October 2011 Time to Short the Kiwi Again? - Closed All Orders 06:29 06 December 2011 USD/CAD: Will Parity Hold Again? - Trade Update 08:54 28 September 2011 Comdoll Weekly Replay (October 3-7, 2011): 710-pip AUD/USD Setup! 07:09 10 October 2011 Read more: http://www.babypips.com/blogs/playing-with-comdolls/shorting-audusd-at-the-top-of-the-channel.html#ixzz1fxWVImzU

Forex Account Choosing the right forex account to conduct your foreign currency exchange trading activities seems relatively easy on the surface. Unfortunately, when you look a little deeper, you’ll soon find that it’s important to choose the right account to suit you, or you could face problems later.

You’ll need a forex trading account if you intend to generate profits from trading foreign currencies, and an online forex account can give you a significant amount of freedom. When you trade online, you have the ability to place trades at any time of the day or night from anywhere in the world with an internet connection. Here are some other considerations to think about before signing up for your forex account. Trading Costs Most forex brokers don’t charge any trading fees or commissions. Instead, they charge a ‘spread’. This is the difference between the bid and ask price. They add the spread onto the price of the trade and keep this as their fee for your trade. Spreads can vary greatly between brokers. It’s important to understand how these things are calculated, as you may find that the bid/ask price represents a spread that is higher than other brokers may charge and could impact your profitability. You could also find that the type of forex trading account or online forex account you choose can impact the trading costs associated with trading. This means some brokers will charge a much lower spread for high-volume traders and charge a higher spread for those traders who place trades less frequently. Spreads

 

                 

Even though you might think one single pip (or point of currency value) might not look like much, consider trading on a 5 pip spread instead of a 4 pip spread. One tiny pip worth of currency value looks so incredibly small. Yet it still could represent a 25% on your overall trading costs. When you multiply this amount by the amount of high leverage available through most forex trading accounts, those tiny pips suddenly multiply into vast amounts of money. This is especially true with leverage available of ratios up to 200:1. Demo Account Before signing up for a forex trading account, be sure you have access to a demo version. This can allow you to see how the spreads are calculated, how the platform works and what kind of analytical information is available on your online forex account. You also have the opportunity to place trades within your demo account that can show you how quickly each trade is facilitated and executed. You’ll be more aware if that particular forex account is the right one for you before you commit any of your own money into the deals. Trade Sizes There are plenty of forex accounts that accept standard sized trades, but if you’re a little more cautious about how much of your own money you want to spend, you might consider opting for a micro trading account or even a mini trading account. These can allow you to place trades for significantly smaller amounts, which can limit the amount of capital you expose during each trade. You will also find that the amount of deposit needed to begin trading is also substantially lower, ranging from just $25 to get started up to around $200. These types of online forex accounts can be an excellent way to get a feel for forex trading, Be the first to comment - What do you think? Posted by admin - September 27, 2011 at 10:50 pm Categories: Forex Trading Account Tags: Can Forex Forums Help When people are just starting out in forex trading, they are often looking for hints and tips from other forex traders. Forums can be a great place to go to get some interesting information and advice from others who are investing and working in the forex currency market. Forums are also a good place to get a review of the latest software program or book that is available on the market. It can be very helpful to hear other people’s experiences with these products so that you can make a good decision on whether they should be used in your own trading. It is also a good way to avoid the mistakes that others have made when forex trading. With the current rate of ninety five percent of forex traders failing, you will need all the help that you can get. There is nothing wrong with taking the advice of others, but you should use your own common sense as well. Forums are not necessarily filled with successful traders and the advice that they are giving might not be appropriate for your situation. Take the advice with a grain of salt and include your own research and education with it to make the best decisions about your trading business. You can also pose your own questions to the forum to get a diverse group of answers and a healthy debate which will ultimately give you the information that you are looking for. Whenever you are taking advice from these forums it is always a good idea to take a balance of opinions to make the best choices for your own business. There is a danger of getting too involved in the forex forums, however. Your time is a valuable commodity in your business. If you spend too much time participating in discussions or debates, you are not spending enough time researching your own trades and information. Spend more time with your simulated forex account than you do in the forums listening to others discuss forex trading. You will gain more knowledge from your own experience than you would by hanging out in a discussion forum. Remember that you really don’t know the people on the forum. You may have seen their answers frequently on the forum and they have developed a reputation for giving good advice on forex trading, but in reality, they have nothing to lose by giving advice. Keep this in mind when you are learning from the discussion forums. The key to success in forex trading is education and experience. There is a role to play for the discussion forums where others who are doing the same thing as you to get together and discuss the problems and successes that they have had. You can also pose a few questions if you are having difficulty understanding your own forex trading. Most people are happy to help and the forums are mostly a friendly place to connect with others who are going through the same thing as you

trading

Trade From Wikipedia, the free encyclopedia This article is about the economic mechanism. For other uses, see Trade (disambiguation). "Purchase" redirects here. For other uses, see Purchase (disambiguation). Trader in Germany, 16th century San Juan de Dios Market in Guadalajara, Jalisco Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Trade exists for man due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations. Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Wholesale trade is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.[2] Trading can also refer to the action performed by traders and other market agents in the financial markets. Contents [hide] 1 History of trade 1.1 Prehistory 1.2 Ancient History 1.3 Middle Ages 1.4 Age of Discovery 1.5 Age of Reason 1.6 20th Century 1.7 Free Trade 1.8 Protectionism 1.9 Religion 1.10 Development of money 2 Current trends 2.1 Doha rounds 2.2 China 3 International trade 3.1 Trade sanctions 3.2 Trade barriers 3.3 Fair trade 4 Notes 5 Bibliography [edit]History of trade The neutrality of this article is questioned because of its systemic bias. In particular, there may be a strong bias in favor of European history. Please see the discussion on the talk page. Please do not remove this message until the issue is resolved. (August 2010) Part of a series on Trade routes Amber Road · Hærvejen . Incense Route Kamboja-Dvaravati Route . King's Highway . Northern Arc Roman-India routes . Royal Road Silk Road · Spice Route . Tea route Varangians to the Greeks · Via Maris Triangular trade .Volga trade route Trans-Saharan trade . Salt Route Hanseatic League . Grand Trunk Road [edit]Prehistory Trade originated with the start of communication in prehistoric times. Trading was the main facility of prehistoric people, who bartered goods and services from each other before the innovation of the modern day currency. Peter Watson dates the history of long-distance commerce from circa 150,000 years ago.[3] [edit]Ancient History A silver statuette of Mercury the Roman god of trade. Part of the Berthouville Treasures Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age. Materials used for creating jewelry were traded with Egypt since 3000 BC. Long-range trade routes first appeared in the 3rd millennium BC, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze. For this purpose they established trade colonies the Greeks called emporia. From the beginning of Greek civilization until the fall of the Roman empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including India and China. Roman commerce allowed its empire to flourish and endure. The Roman empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy. The fall of the Roman empire, and the succeeding Dark Ages brought instability to Western Europe and a near collapse of the trade network in the western world. Trade however continued to flourish among the kingdoms of Africa, Middle East, India, China and Southeast Asia. Some trade did occur in the west. For instance, Radhanites were a medieval guild or group (the precise meaning of the word is lost to history) of Jewish merchants who traded between the Christians in Europe and the Muslims of the Near East. [edit]Middle Ages During the Middle Ages, Central Asia was the economic center of the world.[4] The Sogdians dominated the East-West trade route known as the Silk Road after the 4th century AD up to the 8th century AD, with Suyab and Talas ranking among their main centers in the north. They were the main caravan merchants of Central Asia. From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Russia. The Hanseatic League was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic, between the 13th and 17th centuries. [edit]Age of Discovery Vasco da Gama pioneered the European Spice trade in 1498 when he reached Calicut after sailing around the Cape of Good Hope at the southern tip of the African continent. Prior to this, the flow of spice into Europe from India was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Discovery in Europe. Spices brought to Europe from the Eastern world were some of the most valuable commodities for their weight, sometimes rivaling gold. In the 16th century, the Seventeen Provinces were the centre of free trade, imposing no exchange controls, and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, Holland in the 17th century, and the British in the 18th century. The Spanish Empire developed regular trade links across both the Atlantic and the Pacific Oceans. Danzig in the 17th century In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticised Mercantilism, and argued that economic specialisation could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive. Smith said that he considered all rationalisations of import and export controls "dupery", which hurt the trading nation as a whole for the benefit of specific industries. In 1799, the Dutch East India Company, formerly the world's largest company, became bankrupt, partly due to the rise of competitive free trade. Berber Trade with Timbuktu, 1853 [edit]Age of Reason In 1817, David Ricardo, James Mill and Robert Torrens showed that free trade would benefit the industrially weak as well as the strong, in the famous theory of comparative advantage. In Principles of Political Economy and Taxation Ricardo advanced the doctrine still considered the most counterintuitive in economics: When an inefficient producer sends the merchandise it produces best to a country able to produce it more efficiently, both countries benefit. The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports. John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate the terms of trade through maintaining tariffs, and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal, rather than completely free, trade policies. This was followed within a few years by the infant industry scenario developed by Mill promoting the theory that government had the "duty" to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialise and out-compete English exporters. Milton Friedman later continued this vein of thought, showing that in a few circumstances tariffs might be beneficial to the host country; but never for the world at large.[5] [edit]20th Century The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators. The lack of free trade was considered by many as a principal cause of the depression. Only during the World War II the recession ended in the United States. Also during the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank and Bank for International Settlements). These organisations became operational in 1946 after enough countries ratified the agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade. [edit]Free Trade Main article: Free trade Free trade advanced further in the late 20th century and early 2000s: 1992 European Union lifted barriers to internal trade in goods and labour. January 1, 1994 the North American Free Trade Agreement (NAFTA) took effect 1994 The GATT Marrakech Agreement specified formation of the WTO. January 1, 1995 World Trade Organization was created to facilitate free trade, by mandating mutual most favoured nation trading status between all signatories. EC was transformed into the European Union, which accomplished the Economic and Monnetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states as of January 1, 2007. 2005, the Central American Free Trade Agreement was signed; It includes the United States and the Dominican Republic. [edit]Protectionism Main article: Protectionism Protectionism is the policy of restraining and discouraging trade between states and contrasts with the policy of free trade. This policy often takes of form of tariffs and restricitive quotas. Protectionist policies were perticularly prevelent in the 1930s, between the great depression and the onset of World War II. [edit]Religion Muslim teachings encourage trading (and condemn usury).[6][7] Judeo-Christian teachings encourage traders to avoid dishonest gain.[citation needed] [edit]Development of money Main article: History of money Ancient Athenian Greek Drachma coin Roman denarius The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic value; historical examples include pigs, rare seashells, whale's teeth, and (often) cattle. In medieval Iraq, bread was used as an early form of money. In Mexico under Montezuma[disambiguation needed ] cocoa beans were money. [1] Currency was introduced as a standardised money to facilitate a wider exchange of goods and services. This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years. Numismatists have examples of coins from the earliest large-scale societies, although these were initially unmarked lumps of precious metal.[8] Ancient Sparta minted coins from iron to discourage its citizens from engaging in foreign trade. [edit]Current trends [edit]Doha rounds Main article: Doha round The Doha round of World Trade Organization negotiations aims to lower barriers to trade around the world, with a focus on making trade fairer for developing countries. Talks have been hung over a divide between the rich developed countries, represented by the G20, and the major developing countries. Agricultural subsidies are the most significant issue upon which agreement has been hardest to negotiate. By contrast, there was much agreement on trade facilitation and capacity building. The Doha round began in Doha, Qatar, and negotiations have subsequently continued in: Cancún, Mexico; Geneva, Switzerland; and Paris, France and Hong Kong. [edit]China Beginning around 1978, the government of the People's Republic of China (PRC) began an experiment in economic reform. In contrast to the previous Soviet-style centrally planned economy, the new measures progressively relaxed restrictions on farming, agricultural distribution and, several years later, urban enterprises and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, particularly by farmers, that led to increased productivity and output. One feature was the establishment of four (later five) Special Economic Zones located along the South-east coast. The reforms proved spectacularly successful in terms of increased output, variety, quality, price and demand. In real terms, the economy doubled in size between 1978 and 1986, doubled again by 1994, and again by 2003. On a real per capita basis, doubling from the 1978 base took place in 1987, 1996 and 2006. By 2008, the economy was 16.7 times the size it was in 1978, and 12.1 times its previous per capita levels. International trade progressed even more rapidly, doubling on average every 4.5 years. Total two-way trade in January 1998 exceeded that for all of 1978; in the first quarter of 2009, trade exceeded the full-year 1998 level. In 2008, China's two-way trade totaled US$2.56 trillion. In 1991 the PRC joined the Asia-Pacific Economic Cooperation group, a trade-promotion forum. In 2001, it also joined the World Trade Organization. See also: Economy of the People's Republic of China [edit]International trade Main article: International trade World trade A series on Trade Policy[show] Restriction[show] History[show] Organizations[show] Issues[show] Lists[show] By Country[show] v · d · e International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly because of Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization". Empirical evidence for the success of trade can be seen in the contrast between countries such as South Korea, which adopted a policy of export-oriented industrialization, and India, which historically had a more closed policy (although it has begun to open its economy, as of 2005). South Korea has done much better by economic criteria than India over the past fifty years, though its success also has to do with effective state institutions. [edit]Trade sanctions Trade sanctions against a specific country are sometimes imposed, in order to punish that country for some action. An embargo, a severe form of externally imposed isolation, is a blockade of all trade by one country on another. For example, the United States has had an embargo against Cuba for over 40 years. [edit]Trade barriers Although there are usually few trade restrictions within countries, international trade is usually regulated by governmental quotas and restrictions, and often taxed by tariffs. Tariffs are usually on imports, but sometimes countries may impose export tariffs or subsidies. All of these are called trade barriers. If a government removes all trade barriers, a condition of free trade exists. A government that implements a protectionist policy establishes trade barriers. [edit]Fair trade The fair trade movement, also known as the trade justice movement, promotes the use of labour, environmental and social standards for the production of commodities, particularly those exported from the Third and Second Worlds to the First World. Such ideas have also sparked a debate on whether trade itself should be codified as a human right.[9] Importing firms voluntarily adhere to fair trade standards or governments may enforce them through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the common prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with fair trade labeling requirements.