Before you start trading.

[radean]

patience is the first to be trade regulations disciplines. and punishment is the key to winning the trade. New traders should instruct important theory, can hear in this forum and download the ebook, then it should be a lot of training in the story demo, if it can zoom in prizes inform. factual state can begin trading.

[abbey ak]

alright am a newbies and i really think your point is very clear and understood i know all traders can get to learn and understand more about the best way to learn hoe to make use of strategy to place there take profit and stop lose

[hossam_a22]

Reverse Head and Shoulders

The opposite of the Head & Shoulders pattern is the Reverse Head & Shoulders pattern which is another strong pattern, this time a bottoming pattern.

Reverse Head and Shoulders Components

The reasoning behind a Head & Shoulders pattern is as follows:
Left Shoulder: Bears push prices downwards making new lows; however, bulls begin to return and push prices slightly higher.
Head: Price gains don't last long before bears return and push prices even lower than before; a bearish sign. Prices then find buyers at the new lower prices.
Right Shoulder: The bears push downward again, but this time fail to make a lower low. This is generally seen as bullish sign, bears were unable to push prices further down. Decision time occurs when the price is pushed higher back to support (Confirmation line); either bears will push prices back down or bulls will push prices higher, regaining control of the stock, future, or currency pair.
Reverse Head and Shoulders Buy Signal

When price closes above the confirmation line, a strong buy signal is given.

Usually an upward sloping confirmation line is seen as a more powerful Reverse Head & Shoulders pattern, mainly because an upward sloping confirmation line means that prices are making higher highs.

Volume analysis is important when using the Head & Shoulders chart pattern. How to incorporate volume into the study of the Head & Shoulders pattern is discussed next.
Volume and Head and Shoulders

When the confirmation line of a Head & Shoulders pattern breaks to the downside, a large amount of volume should occur as well.

The chart below of General Electric (GE) shows a sharp increase in volume when the confirmation line of the Head & Shoulders pattern was broken:


In addition to the sharp increase in volume, the gap down on the chart of GE also gave strong indication to sell when the confirmation line was pierced.

The same concept applies to a Reverse Head & Shoulders pattern, the break of the confirmation line should be accompanied by an increase in volume.

The chart below of Gold futures illustrates a rise in volume when the confirmation line was pierced:


The Head & Shoulders pattern is a highly effective classic charting pattern. Other similar chart patterns are the Double Top formation (see: Double Top) and the Double Bottom formation (see: Double Bottom).

---------- Post added at 02:35 PM ---------- Previous post was at 02:34 PM ----------

Head and Shoulders Components
Left Shoulder: Bulls push prices upwards making new highs; however these new highs are short lived and prices retreat.
Head: Prices don't retreat for long because bulls make another run, this time succeeding and surpassing the previous high; a bullish sign. Prices retreat again, only to find support yet again.
Right Shoulder: The bulls push higher again, but this time fail to make a higher high. This is very bearish, because bears did not allow the bulls to make a new higher or even an equal high. The bears push prices back to support (Confirmation line); this is a pivotal moment - Will bulls make another push higher or have the bears succeeded in stopping the move higher.
Head and Shoulders Sell Signal

If prices break the confirmation support line, it is clear that the bears are in charge; thus, when price closes below the confirmation line, a strong sell signal is given.

Note that a downward sloping confirmation line is generally seen as a more powerful Head & Shoulders pattern, mainly because a downward sloping confirmation line means that prices are making lower lows.

[fxmoney]

Before you start to trade you must have to look for the economic calender for the major news release and if it is there then you must have to wait for it and after the release of the news you can take the trade as per the news release.

[rokib]

Forex trading is worldwide favorite trading system in whole world. So before trading need more learning about forex trading and then need to get experience about forex trading. If any one learn more about forex trading then start real account for long time forex trading success.

[andreasfx]

Everything that will be required before deciding out to trade ought to ready. around my opinion, sensible planning is essential. don't do trading while not a set up. sensible planning ought to embrace many conditions. suppose conditions sideway, planning ought to vary direct from trending. the a lot of planning the higher, though it might create itself out to be slow in call creating.

[wawaz_i]

dear friend i am new in this forum and i join this forum for know about forex basic so plz expalin it in detail...........i will be very thanks full to you

The first thing make sure that we have a good trading plan. Always follow your strategy or plan that you have for trading before trading. That is all you need. If you do not have a trading plan then its better to make one. Trading without a trading plan is like going for a battle without weapons.

[dewik79]

dear members before start trading in forex u must take the points bellow on ur calcuation

1> how to use leverage
2> what strategy he will be using to open trade.
3> what strategy he will be using to to take profit and stoploss.
4> How much he want to invest in single trade
5> Last but not least What kind of strategy he will be using for money management

In addition, caution is the need to determine how we use the lot size. Big-small lot will have an impact on the fate of our capital. If you do not have a strategy to be reliable, you should choose the safe way of trading, using small lots.

[usmanraza]

dear ma forex ma kuch he time huwa ha forex ma ayea huwe. but ma trading start karne sa phelay news
ko partha ho aur us ka bad market ka daytea cheak karta ho pher market ka dakh kar trade karta ho.

[gretongan]

before begin trade you have got to take a few set up that the way you hare intending to try your target in any situation and the way you employ your capital and in stop loss or take profit what exactly is your poinr thus all this want your learning and knowledge in addition.