TRADING MULTIPLE TIME FRAMES IN FOREX

What the heck is multiple time frame analysis? Multi-time frame ana… WHAT?! Chill out young padawan, it ain’t as complicated as it sounds! You’re almost done with high school – now’s not the time to get senioritis, although you probably got that way back in Grade 12. Ha!

How to Use Bollinger Bands

Congratulations!  You have made it to the 5th grade! Each time you make it to the next grade you continue to add more and more tools to your trader’s toolbox.
“What’s a trader’s toolbox?” you may ask.
 It is simple!
Compare trading with a brick building of home.  Which tools is used to the building? You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation.
It is similar to in trading business, some trading tools and indicators are best used in particular environments or situations. So, the more tools you have, the better you can adapt to the ever-changing market environment.
Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Band or Moving Average expert.
There are billions different ways to grab some pips!
For this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.
You need not use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and comfortable enough to master on its own. It is enough discussed.
Now, come to start!

WHAT ARE MOVING AVERAGES?

Moving average indicates a way to smooth out price action over time. By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods. On a chart, it would look like bellow this:

A moving average indicator is used to help us forecast future prices as every indicator does. It is better to determine the potential direction of market prices by looking at the slope of the moving average.

As we said, moving averages smooth out price action.

There are different types of moving averages and each of them has their own level of “smoothness”.

Actually, the smoother the moving average, the slower it is to react to the price movement.

The choppier the moving average, the quicker it is to react to the price movement. To make a moving average smoother, you should get the average closing prices over a longer time period.

Now, you’re probably thinking, “C’mon, let’s get to the good stuff. How can I use this to trade?”

In this lesson, we first explain the two major types of moving averages:

1. Simple moving average
2. Exponential moving average

We’ll also let you know how to calculate them and give the pros and cons of each. Just like in every other lesson in the forexmic.com, School of Pipsology, you have to learn the basics first!

Know about Fibonacci Trading

Fibonacci ratios is used a lot in our trading so you better learn it and love it like your mother’s home cooking. Fibonacci is a huge subject and there are many different Fibonacci studies with weird-sounding names but we’re going to stick to two: retracement and extension.
Lets come to start introducing you to the Fib man himself…Leonardo Fibonacci.