Most Important Forex Signals 2019: Buy&Sell (part2)

In this topic we will discuss the second part of Buy&Sell fore signals.

Related:  Forex Signals 2019: Buy&Sell (Part1)

Now that we’ve looked at the three candlestick patterns I use, let’s dive into the three chart patterns. These include the head and shoulders, channels and wedges.

The good news is that we don’t have to wait months or years to trade. With dozens of currency pairs at our disposal, there’s almost always something to do.

Chart Pattern Buy & Sell Signals

Head and shoulders

When it comes to profitability, the head and shoulders pattern is at the top of the list. It typically forms after an extended move up and signals exhaustion from buyers.

The inverse head and shoulders pattern also represents a potential reversal but does so after an extended move down and signals exhaustion from sellers.

The reason I say these formations can be highly profitable is that they often provide several hundred pips of profit if traded successfully.

Note that the head and shoulders also comes with what’s called a measured objective. This is a potential profit target that’s found using the height of the structure.

Channels (ascending and descending)

Channels occur more often than most traders probably realize. They are particularly plentiful after an impulsive move up or down. The channels that form in this manner are known as bull and bear flags.

If you’ve followed me for a while, you’ve no doubt seen me comment on either an ascending or descending channel. In fact, I bet not a single week goes by where I don’t use a channel to outline the price action on a given chart.

They offer an excellent way to identify and outline periods of consolidation which can provide an opportunity to play the subsequent breakout.

Note how the ascending channel above began forming after an extended move lower

Wedges (narrowing and broadening)

Like channels, wedges usually represent consolidation. However, what sets them apart is their terminal nature. In other words, a narrowing wedge has a definitive end point whereas a channel does not.

The two charts below show the difference between a narrowing wedge and a broadening wedge.

Note how unlike the narrowing wedge in the first chart, the price action in a broadening formation “fans out” as time passes.

What Is ECN / STP Trading?

ECN/STP is a broker's model of business which client's orders"trades" are sent directly to one or more liquidity providers to be executed on their end.

Liquidity providers like :

• Companies
• Banks
• Financial institutions 

that quote buy and sell price in a financial instrument.

“ECN” stands for “Electronic Communications Network”. ECN brokers construct and utilize such networks"platforms" to match their client’s trade orders directly with other market participants.

ECN brokers make a profit every time their clients trade, unlike “market makers” / “dealing desk” model brokers who make greater profits when their clients lose as they are taking the other side of the trade.

The more liquidity providers a broker has in general, the better execution for its clients will be (more liquidity available generally means less price slippage).

What makes a true STP (Straight through processing) broker is that the STP broker doesn’t internalise the orders, but sends them to liquidity providers, acting as the center point or the connection ring between their client and the real market.

ECN brokers typically charge both a spread and a commission which is usually a percentage of the trade size. Therefore, although their spreads are mostly considered lower than those offered by market makers, the total cost per trade may not be very different between high-quality brokers of both types. 

ECN brokers usually require a higher minimum deposits than market maker / dealing desk brokers, meaning that smaller clients may find ECN services unavailable to them.

ECN advantages:

• Anonymity
• Immediate trade execution
• Client, liquidity access
• Automated Forex trading/market data feed
• Variable Spreads

ECN Vs. Dealing Desk 

So what are the critical differences between an ECN/STP broker and dealing desk brokers, who are often referred to as "market makers”? We have compiled a simple table of pros and cons, in order to outline the key points of difference between ECN/STP brokers and dealing desk/market making brokers

Forex Rollover (Swaps)

A Forex rollover/swap is described as the interest added or deducted for holding any currency trading position open overnight. It is important therefore, to consider the following aspects of rollover/swap charges:

• Rollover/swaps are charged on the client's Forex account only on the positions kept open to the next Forex trading day"overnight".

• The rollover process starts at the end of day, at 23:59 server time.

• There is a possibility that some currency pairs may have negative rollover/swap rates on both sides (Long/Short).Every thing is possible/ you don't know the future.

• When the rollover/swap rates are in points, the Forex trading platform converts them automatically into the account's base currency.

• The rollover/swaps are calculated and applied on every trading night. On Wednesday night rollover/swaps are charged at triple rate.

Slippage

Slippage, in trading terms, can be described as having an order filled at a different price to the price initially quoted on the trading platform. However, slippage should be regarded as a positive indication that the market and the trader's chosen market access, is operating in a transparent and efficient manner.

Can You Really Become A millionaire With Forex Trading ?

There are some questions that everyone wants to trade with Forex are asking like 

• How much money can i earn ??
• How many pips can i make per month??
• Can i start with a 10$ account and can i reach 100,000 or even a million??

But the most important questions that concerns all traders is can i become a millionaire with Forex trading??

The answer could be yes or no as it's dependent on some conditions.it's not a stable process and it varies always.

So, if someone have the right conditions he will make it and if he doesn't have good conditions he won't make it.

What's these conditions??

Let's say that if you wanna turn 100$ or 500$ or even 2000$ to a million it won't be easy at all, you will have hard times,difficult situation.

I'm not saying it's impossible to do that but it's very hard"every thing is possible,nothing is impossible".

You have to be patient and overcome the challenges you will face and one of them is choosing a good broker and it could be the most important challenge as Forex brokers don’t let you grow your account consistently, because in most cases, your profit is their loss.

There are two important things u have to do 

• You have to learn and master your trading techniques.
• You have to own some money "capital" to start with.

To learn how to trade Forex, become a profitable trader and hopefully a millionaire, first you should have a source of income that supports your currency investment.

I mean this source of income should cover your expenses while trading because you could lose.it's not about profit only as it's profit and loss.

How to Make Money with Forex?

Most people think that they can learn to make money through Forex trading in a short time, and become a full-time Forex trader making thousands or even millions of dollars >> not true.

None of the real millionaires or billionaires, like George Soros, have made their wealth through full-time Forex or stock trading as They are experienced business persons who make a lot of money through several sources of income they have.