Kakiforex | Forex markets for the smart money.: Forex University Kakiforex | Forex markets for the smart money. Kakiforex | Forex markets for the smart money.: Forex University
Showing posts with label Forex University. Show all posts
Showing posts with label Forex University. Show all posts

April 6, 2021

Use of Basic Indicators - Moving Average (MA)

 Moving Average (MA) means the Moving Average for a certain period of time. The specific period depends on the Time Frame we choose on the MT4 Platform and also how many Periods we set.


If MA200 on the Daily Time Frame means Moving Average for 200 days. (1 candlestick represents one day, so period 200 means 200x1 day equals 200 days)


If MA50 is on Time Frame H1, it means Moving Average for 50 Hours. (1 candlestick represents one hour, so period 50 means 50x1 hour equals 50 hours)


If MA15 is on Time Frame M5, it means Moving Average for 75 minutes. (1 candlestick represents a period of 5 minutes, so period 15 means 15x5 minutes equals 75 minutes)


This Moving Average will form a curved line, and like the example above, it depends on the Time Frame selected. Usually, easy analysis using Simple Moving Average (SMA) or Exponential Moving Average (EMA).


⦁ How to enter MA into MT4


1. Click Insert on the Menu above

2. Select Indicators> Trend> Moving Average


⦁ Set your Moving Average 


⦁ Use MA as Support and Resistance


Commonly used MAs are SMA 21, SMA 50, SMA 100, SMA 200


 I used the following colors for each MA

SMA 50: Blue

SMA 100: Pink

SMA 200: Red


Suitable Time Frames to use are TF H1, H4, and Daily.

 I use the Daily Time Frame


When the SMA lines are at the top of the current price, they will be Resistance and when it is at the bottom of the current price, it will be Support.


You can see, when the current price needs many days, that is 4 Daily Candlesticks to break (breakout) the SMA 21 line, and the SMA 21 from being Resistance to Support.


Looks if Candlestick stands pretty above the SMA 21 line, a bit hard to penetrate down. So when the price goes up, SMA 50, SMA 100, and SMA 200 will be resistant.


How to trade:


You can use the concept of trade on Support and Resistance sketched by a predefined SMA. For example, you can enter a SELL order by scalping, take 10-30 pips when the price touches the main SMA, namely SMA 21, SMA 50, SMA 100, and SMA 200.


Continue studying the next chapter.

Use of Basic Indicators : Bollinger Bands

 Bollinger Bands, usually used as indicators that provide a way to trade using support and resistance.

Consists of Upper Band, Middle Band, and Lower Band.


Usually, the Upper Band will act as Resistance, while the Lower Band will act as Support.


When the Bollinger Bands contract, it indicates a market sideways and there may be the potential to change the trend.

When the Bollinger Bands expand, it indicates that the market is trending, that is, has a strong trend.


⦁ Seeing Trends Using Bollinger Bands


Uptrend: Candlestick will be above the Middle Band in the area marked in yellow.


Downtrend: Candlestick will be below Middle Band in the area marked in blue.


Continue studying the next chapter.

April 5, 2021

Fundamentals of Technical Analysis : Trade using SnR

Basically, you can try to understand about BUY on SUPPORT and SELL on RESISTANCE. But as for risk control, what if the price manages to break SUPPORT or RESISTANCE. This will make it invalid.

So the more accurate concept is BUY on RBS, SELL on SBR.


SELL at SBR and SET your Take Profit Level at the nearest Support. After that, you have to wait if the price is reflected SBR again and you have the opportunity to enter SELL again on SBR and take your profit on the nearest Support Line. Easy isn't it.


You are free to use any time frame to see the breakout but keep in mind, that Support and Resistance only work perfectly on large TFs such as H1, H4, and Daily.


Continue studying the next chapter.

Fundamentals of Technical Analysis : Support And Resistance

 In a simple sense to understand Support and Resistance is, "BUY at Support, SELL at Resistance".


⦁ Resistance is a Price Line that is very difficult for an ascending market to penetrate. Resistance is a price that is above the current price.


⦁ Support is a Price Line that is very difficult for a declining market to penetrate. Support is a price that is below the current price. For easier understanding, let's refer to the diagram below.



R - Resistance

S - Support


Look at the uptrend market when the price is going up, it is reflected on one price line and that is known as RESISTANCE.


Also look at the downtrend market, when the price is declining, it is reflected on one price line and that is known as SUPPORT.


But the prices at which the graph is reflected become as if a ladder to the ups and downs of the market. Resistance turns into Support (RBS) when the price of the graph rises past the Resistance Price Line. Support can also turn into Resistance when the graph price drops past the Support Price Line.



The Uptrend market is reflected on RBS before continuing to rise for a rebound on the next Resistance. In the Downtrend market, the graph is reflected on the Support line (S = "RBS"). This support line is formed as a result of the previous Uptrend market, namely Resistance Become Support (RBS). There are two RBS lines here. The downtrend market is also reflected in the Support Line which has turned into Resistance (SBR) before continuing to fall.


Reflected means Failed to Penetrate or failed to breakout.

The extent to which we can decide who Succeeded in Breaking or Failed to Break will be determined by the “Breakout” Factor.


Continue studying the next chapter.

Fundamentals of Technical Analysis : Market Trend

 The trend is better known as the direction of movement over a period of time depending on the analyst’s reference Timeframe, but usually, this trend is a reference to the directional movement over a long period of time, i.e. can refer to TimeFrame D1, W1, Monthly.


There are two types of trends, namely the ascending trend (bullish) and the descending trend (bearish).


There is another form of the market which is Sideway. Sideways occur when market prices go up and down in the same place. It usually happens before determining the direction to go up or down, this is because the buyer and seller are still confused and enter and exit the market at the same time and no big buyer or big seller is moving the market in the next direction. So at this point, the price forms a sideways pattern and the shape is as below.


Continue studying the next chapter.

Fundamentals of Technical Analysis : Time Frame

Time Frame is the time period or time period for each candlestick or bar chart used. A smaller time frame means the graph will show smaller movements. The larger the time frame, the larger the time period of movement of the graph shown.


From within the MetaTrader (MT4) platform, there are several types of Time Frames that can be used.


TIME FRAME

M1 = 1 Minute

M5 = 5 Minutes

M15 = 15 Minutes

M30 = 30 Minutes

H1 = 1 Hour

H4 = 4 Hours

D1 = Daily

W1 = Weekly

MN = Montly


If you select H1, it means one candlestick stick on the H1 graph, representing the movement of the graph over a 1 -hour period.

If you select M1, it means one candlestick stick on the graph of M1, representing the movement of the graph over a period of 1 Minute.


Usually, a larger time frame is used to see the general movement of the currency, which is known as 'Trend'. We will learn about ‘trends’ i.e. the direction of a general movement in the next chapter.


Continue studying the next chapter.

Fundamentals of Technical Analysis : Candlestick

 You are free to choose by clicking the chart options button that is on your MT4 Platform.

Each chart has its own specialties, but there is one chart that is most popular and widely used which is the Candlestick chart. If you look at a candlestick chart it looks like a candlestick that has a wick, which is why it is called a candlestick. Candlestick charts are originally from Japan and were designed in the 18th century by a rice trader.


What are the benefits of a candlestick chart?


A Candlestick chart is a complete chart that can show you the price movement over a specific period of time. It follows the ‘timeframe’ you choose. Each candlestick can show open price, higher price, lower price, and also close price. The candlestick consists of a part called a body and a shadow. 

  • Bullish Candlestick
  • Bearish Candlestick
  • Essential Candlestick shapes

 


Continue studying the next chapter.

Fundamentals of Technical Analysis : Chart type

 Charts displayed in MT4 and any of the most basic platforms usually have 3 types:-


⦁ Candlestick type Chart


⦁ Bar Chart type Chart


⦁ Line Chart type Chart


 


Continue studying the next chapter.

March 25, 2021

Pending Order

 There are several types of pending orders or better known as PO.

⦁ Buy Limit and Sell Limit

⦁ Buy Stop and Sell Stop


A limit order is an order in which we expect the graph to move to the desired price and turn back.

⦁ Buy Limit can only be placed below the current price.

⦁ Sell Limit can only be placed above the current price.


A stop order is an order in which we expect the graph to move to the desired price and continue its movement so that we profit.

⦁ Buy Stop can only be placed above the current price.

⦁ Sell Stop can only be placed below the current price.

 


How to place a PO?


How to Put a Buy Limit

Suppose you select a price of 1.2495 (red line) to place a Buy Limit order, and the current price is currently above 1.2524 (black line).

⦁ Click on New Order

⦁ Set Lot Volume Value

⦁ Type: Select Pending Order

⦁ Pending Order Type: Select Buy Limit

⦁ Set the desired price. The example above selects 1.2495 to place a Buy Limit.

⦁ Click the Place Button


This means when the price falls below 1.2524 (black line), and hits 1.2495, a BUY order will open. And we hope that the price starts to go back up like the green arrow shown in the example.


 


How to Place a Buy Stop

Suppose you select a price of 1.5947 (red line) to place a Buy Stop order, and the current price is below that of 1.5906 (black line).

⦁ Click on New Order

⦁ Set Lot Volume Value

⦁ Type: Select Pending Order

⦁ Pending Order Type: Select Buy Stop

⦁ Set the desired price. The example above selects 1.5947 to place a Buy Stop.

⦁ Click the Place Button

This means, when the price rises above 1.5906 (black line) and hits 1.5947, a BUY order will open. And we hope that the price continues to go up like the green arrow shown in the example.


How to Place a Sell Stop

Suppose you select a price of 1.2495 (red line) to place a Sell Stop order, and the current price is currently above 1.2526 (black line).


⦁ Click on New Order

⦁ Set Lot Volume Value

⦁ Type: Select Pending Order

⦁ Pending Order Type: Select Sell Stop

⦁ Set the desired price. The example above selects 1.2495 to place a Sell Stop.

⦁ Click the Place Button


This means when the price falls below 1.2526 (black line), and hits 1.2495, a SELL order will open. And we hope that the price continues to go down like the red arrow shown in the example.



How to Set a Sell Limit


Suppose you select a price of 1.5947 (red line) to place a Sell Limit order, and the current price is below 1.5905 (black line).

⦁ Click on New Order

⦁ Set Lot Volume Value

⦁ Type: Select Pending Order

⦁ Pending Order Type: Select Sell Limit

⦁ Set the desired price. The example above selects 1.5947 to place a Sell Limit.

⦁ Click the Place Button


This means, when the price rises above 1.5905 (black line), and hits 1.5947, a SELL order will open. And we hope that the price starts to go back down like the red arrow shown in the example.


Continue studying the next chapter.

Take Profit And Stop Loss

 Take Profit is also known as TP


  • TP is placed at the Price Level where we want to take advantage of our order.
  • TP for BUY orders is above the current price.
  • TP for SELL orders is below the current price.
  • When the price graph goes and hits the TP price, the order will close automatically.

Stop Loss is also known as SL


SL is placed at the Price Level where we want to minimize our losses when the graph moves against the direction with us.

  • SL for BUY order is below the current price.
  • SL for SELL orders is above the current price.
  • SL orders will also be closed automatically when the price graph hits the SL price.


How to Place TP and SL

  1. Identify at which price you want to place TP or SL and Double Click on one of the numbers under the TP or SL order column that is running. Either way, it doesn't matter. Double Click!
  2. Enter the desired price in the SL and TP fields.
  3. An example of the price has been shown in the picture.
  4. After confirming, you can click the blue button.


Attention:

The way shown is a fast way. You can also "right-click" on the current order in the trade column. Select the order you want to change and click Modify Order. From there you can set TP and SL as well.


After you have set the TP and SL. You will be able to see the Stop Loss and Take Profit lines as below.


Continue studying the next chapter.

How To Close An Order?

 After you open an order, you must want to close the order, either close in profit or loss.


  • Click on the Trade Button on the terminal section below
  • Double Click on the number in the profit section of the Order
  • When you are ready and get the price you want to close, CLICK the Yellow Box.

After the successfully closed order, you will be able to see the successful Closed Order box at the desired price. Your order list on the terminal below will disappear. You just need to click the OK button.


Continue studying the next chapter.

March 24, 2021

How to Buy And Sell?

 How to BUY?


1. Click the New Order Button

2. Set the Volume value according to the calculation we want

3. Click the BUY Button when you are sure everything is correct.


According to the diagram above, if we click BUY it means we have entered a BUY order at the price of 1.2725 on the EURUSD pair.


How to SELL?

1. Click the New Order Button

2. Set the Volume value according to the calculation we want

3. Click the SELL Button when you are sure everything is correct.


According to the diagram below, if we click SELL it means we have entered a SELL order at the price of 1.2723 on the EURUSD pair.


Continue studying the next chapter.

Basic Lot Volume Calculation In Forex

 Before I show you how to enter a BUY or SELL position, I need to remind you there are two things.


Profit is calculated based on how much Pip you earn.

The Pip Value is determined by you with the Lot Volume Value that you set when you want to enter an order either BUY or SELL.

Each time you enter a BUY or SELL order, your price value will be deducted by SPREAD

The SPREAD value is set by the Broker and it varies according to the PAIR

How to determine Lot Volume?


The Lot Volume value is as follows for the USD -backed pair. For example EUR/USD, GBP/USD, AUD/USD. Below are the standard values ​​for "Lot Volume" for most brokers.



The spread is the difference between the Bid and Ask prices. You can see the Bid and Ask prices on your Market Watch. Some brokers charge fixed spreads and some charge variable spreads. Spreads can also be considered as commissions charged by the broker to us.


For example, if the Spread for the EUR/USD pair is worth 2.5 pips. So let's say you enter BUY EUR/USD at the price of 1.30000, you will get the price of 1.30025, slightly above the price you entered earlier. The difference is called the spread.


If you enter SELL EUR/USD at the price of 1.30000, you will get the price of 1.29975, slightly below the price you entered earlier.


 


Continue studying the next chapter.

Get to know the Forex Market

 In this chapter, we will learn how we make a profit in the forex market. Please install the MT4 Demo Account to your PC/Laptop to understand the next chapter.


Buy, Buy, or Long

We can make money with forex trading when we ‘buy’ at a low price, and ‘close’ at a high price. For example, if you enter a Buy USD/CAD position means you. Convert your CAD to USD value. Close is to close the trading position.


Buy is also known as Long.


Buy is done when we expect the market to be bullish (upward)



As in the picture, you BUY the USD/CAD pair at the price of 1.28565 and CLOSE at 1.32333

1.32333-1.28565 = 0.03768 equivalent (376.8 Pip). This means you profit at 376.8 Pip.

Attention:

The pip calculation is calculated by subtracting the decimal point on the result minus the higher and lower values. For example, as above, the result minus 1.32333-1.28565 is equal to 0.03768. Remove the decimal point it will be 3768 points.


10 points equal 1 pip. To convert a point value to a pip, the point value needs to be divided by 10 to 376.8 only. So it will be referred to as 376.8 pips.


The Pip value can be determined by you before entering a trading POSITION either BUY or SELL. Let’s say in the early days, you put the price of 1 Pip equal to USD1.00. This means that as soon as you CLOSE the BUY position, you have gained USD376.80. You will be shown how to determine the pip value in the next chapter.


SELL or Short

We can also make money with forex trading when we Sell at a high price and Close at a low price. For example, if you enter a Sell GBP/JPY position, this means you exchange your GBP to get JPY. The concept is not the same as selling goods because these currencies are pairs, i.e. called Pairs. You can enter SELL first even if you do not have a BUY position.


Remember, to profit, you need to enter SELL when the price is high and CLOSE when the price is low.


As in the picture, you SELL the GBP/JPY pair at the price of 186.053 and you CLOSE at the price of 184.117. 186.053-184.117 = 1.936 equals 193.6 Pip. This means you profit at a rate of 193.6 Pip.


Attention:

The pip calculation is calculated by subtracting the decimal point on the result minus the higher and lower values. For example, as above, the result minus 186.053-184.117 is equal to 1.936. Just like the previous example, remove the decimal point on that number and divide by 10 making it only 193.6, so it will be referred to as 193.6 pips.


The Pip value can be determined by you before entering a trading POSITION either BUY or SELL. Let’s say in the early days, you put the price of 1 Pip equal to USD1.00. This means that as soon as you CLOSE the BUY position, you have gained USD196.30.


Continue studying the next chapter.

March 23, 2021

Forex Account Opening Guide

 You must be wondering, how to open an account with a forex brokerage company? Which company is strong and offers ease of dealing, the security of funds, and most importantly has a strict regulatory body to guarantee your rights as a forex trader.


No need to worry! Just follow our guide and broker of choice. The selection of a brokerage firm is made based on consideration of the suitability of your level of trading experience.


SUMMARY OF CHOICE BROKER


Instant Trading Ltd is a global forex broker and has a high reputation.


InstaForex started in 2007 and has various Operating Licenses according to the suitability of the customer. Instant Trading Ltd. is authorized and licensed by the Financial Services Commission (FSC) under the Securities and Investment Business Act (SIBA), the British Virgin Islands (BVI).

Among the interesting features why we introduce you to this broker, is that for us it is the easiest broker to deal with, has many great additional functions in addition to its robustness through our experience has long used it.


Has a low minimum deposit value as low as USD10, has a wide range of easy-to-understand account types and non -confusing standard lot values. There are no deposit or withdrawal problems throughout our experience using it.


Promotions and contests, including many bonuses offered by this broker, are well used by traders.


Instaforex currently has 7 Million active Traders worldwide. Winning various awards from around the world shows the strength of this broker.


For us, this broker is suitable for all levels. It is also the ideal forex broker in all respects to be your first broker.


 


DOCUMENTS YOU NEED TO PROVIDE


Did you know before you can deposit a forex account, to start trading, you need to have verified your identity.


Instaforex will ask you to confirm your email, mobile number by sending an SMS and identity verification. For identity verification, you only need to have a picture of the front of your IC.


Identity Confirm Document


It is a document to prove our identity. Here we can use the identity card as proof that we registered the account using the correct name.


You just need to snap a picture of the front of your IC using smartphones. Easy and fast! Make sure the image is clear.


 


GUIDE TO OPENING A REAL ACCOUNT


You can continue to open a real account, do not be afraid. Demo accounts and so on you can "Add On" later because Instaforex it uses the system "one login" for the management of all accounts.


Step 1:


Please click here - CLICK HERE


Step 2:


Fill in the form and proceed until the end of the step.


Step 3:


Don't forget to check your email to verify your account!


 


PLATFORM TRADING


The link to download the trading platform is sent to your email after you have registered a trading account as instructed above.


So you must first register an account by clicking the button above and fill in all the details for registration before starting.



CONCLUSION


Many traders start the steps in forex trading right, learn the right way, the right technique, try to be careful, and so on, but when CHOOSING THE RIGHT BROKER is not emphasized, many fall victim.


Many cases were reported to us, they were hit and deceived by unsound brokers. So much so that there are also those who cannot withdraw profit after struggling in this field.


This is our concern when many traders choose the wrong broker.


Therefore, we recommend that you register an account at our recommended broker, InstaForex Broker.


So just follow this guide we provide without any headaches later, and register using the link above for you to always be safe. We will be ready to help you!

Get to Know 'Scam' Forex Brokers

 Recently, many forex brokers have appeared but out of nowhere, offering forex trading activities, but in fact, only a company registered in the virtual tax-free islands, has a virtual office address, but in fact, does not even exist such an office. It means an office somewhere else. Most of these brokers are used to run Get Rich Quick Scheme operations.


This scam broker or scam broker has the following features:


  • There are no license numbers from large regulatory bodies as narrated in the previous chapter.
  • Has a virtual office address.
  • Offering a return on investment which is known as ROI (return on investment), such as 5% -20% per month without having to trade, just relax and shake your legs.
  • Perform Multi-Level Marketing operations.
  • There are pairing systems, right foot, left foot, sort of MLM, and stress that you are looking for people to invest.
  • This brokerage company is only well known in Malaysia, but not in the European region or elsewhere.
  • Have MLM leaders, have sponsorship activities, and find people.
  • Does not have a strong foreign bank.
  • How to deposit or withdraw is managed by a private person, you have to transfer money to the account of the leader or chief.

So what you need to know, you SHOULD AVOID trading in this type of broker if a friend invites you. It will cause your process to become a real forex trader through difficult paths and incorrect ways.


The above knowledge is the general knowledge you need to know. There is no way to generate income through forex trading without us trading ourselves.


We need to learn one by one, the science of technical and fundamental analysis to start generating income from forex trading and trade itself.


There is no term for investing money and sitting still shaking your legs or sitting still to make money. That's just nonsense.


Continue studying the next chapter.

Guide to Choosing a Forex Broker

 A forex broker is a company or body that will manage our BUY/SELL to the forex market. Forex brokers are not all right. Some are right and some are wrong.


The main feature to find a forex broker is to have a legitimate forex broker registered with a strong Regulator. These regulators are usually the government bodies that control financial institutions in the region. Among the examples of a strong and good regulatory body are:


  • FCA/FSA from the United Kingdom
  • NFA from the United States
  • Commodity Futures Trading Commission (CFTC) of the US
  • CySec from Cyprus
  • ASIC from Australia

The regulatory bodies mentioned above are among the regulatory bodies that are firm in dealing with any misconduct on the part of the broker.


So if we use a broker registered with the above regulatory body, it means our capital deposit funds are safer and if anything untoward happens, we have nowhere to complain.


Continue studying the next chapter.

March 22, 2021

Forex Trading Time

 There are several trading sessions that affect the movement of a currency 24 hours a day.


Asia Open means the trading session in Asia has been opened at that time, so the active pairs are the pair linked to the JPY, while the Europe Open means the trading session in Europe has opened and the active pair is the pair linked to the EUR. That's how it goes according to the 'market open' session, respectively.


But do not assume that at this point the market for pairs whose trading session has not opened does not move. It moves, but sometimes it will be passive slow motion. The active time starting at 2pm to 12pm is the time when the prices of almost all pairs move fast as there is a lot of time overlap.


The peak time is from 8.00pm until 12.00pm, you can see almost 3 trading sessions for Europe, London, and the United States overlapping. At this time there are also many news (forex news) released causing the market to be active.


Continue studying the next chapter.

Get to Know the Major Currencies in Forex Trading

From the platform, you will not see the name of the currency instead it is just an abbreviation of the currency. In forex trading, currencies are traded in pairs, and they are referred to as ‘pairs’.


For example:

EUR/USD pair. If you buy the EUR/USD pair at the price of 1.9000, that means you exchange USD 1.90 for EUR 1.00.


Types of Currency Pairs The most major and frequently traded major pairs are EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD, USD/CHF.

Minor Pair is a pair other than the major pair.


But in this minor pair, there is a pair called ‘cross pair’ which is a pair that is not paired with USD. For example EUR/JPY, EUR/CHF, GBP/JPY, EUR/GBP, and so on.


Continue studying the next chapter.

Forex And Stock Differences

 Here I put in comparison so you understand what the difference between forex and stocks is.


Initial capital

Forex requires a very minimal start-up capital, which is as low as USD100 or around RM400 you can already afford to start a forex trading business. On the other hand, if it is a stock, you need to have a large capital of around RM1,000 to RM3,000 just to start trading the stock.


Two -way market

You can make a profit even if the market price goes up and down, i.e. you have a benefit from the two-way market. Even going up can be profitable. Even going down can be profitable. While the stock market, you can only profit if the counter price of the stock goes up. If it goes down you will suffer a loss. Only one way.


No Debt

You will only lose as much capital as you invest and you will not owe more than that value, otherwise if the stock market, there is an option by buying the stock using the debt first, and it will be a problem if the stock does not make a profit.


Major currency analysis only

With forex trading, you are not dizzy thinking you have to analyze thousands of counters or very many types of companies. With forex, you only need to focus on 6 world currencies that have a beautiful market to trade. From there you can maximize profits, you do not have to study all the currencies of the countries in the world.


Trading time

You can trade at a more flexible time because the forex market is open 24 hours a day and continuous 5 days a week. While stocks you can only trade, buy and sell during working hours only when the exchange is open. Of course, you are more flexible with forex trading time than stocks.


Continue studying the next chapter.