Heiken ashi, modified candle stick

At this time, there are many kinds of chart you can find on the internet, one of them that is common, useful and easy to use is heiken ashi chart, it's modified candle stick base on averaging technique. Here is some information about it : Heiken, it means “Average”. Ashi , it means “Bar”. And, this is the formula: haClose = (Open + High + Low+ Close) / 4 haOpen = (haOpen(previous bar) + haClose(previous bar))/2 haHigh = Maximum(High, haOpen) haLow = Minimum(Low,haOpen)

it's base on the averaging technique, so, the signal will be later than the signal of candle sticks, but it is smoother than candlestick's signal and easy for you to indentified the trend and entry point.

There are five primary signals that identify trends and buying opportunities:

• Hollow candles with no lower "shadows" indicate a strong uptrend: let your profits ride!
• Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.
• One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.
• Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.
• Filled candles with no higher shadows identify a strong downtrend: stay short until there's a change in trend.

These signals show that locating trends or opportunities becomes a lot easier with this system. The trends are not interrupted by false signals as often, and are thus more easily spotted. Furthermore, opportunities to buy during times of consolidation are also apparent.

In MT4 platform we can't seperate hollow and filled candle, just can see like this, you can combine it with many trading system:

Simple forex trading strategy example.

My simple forex trading strategy: Trend is friends! Similarly as other basic strategies, this stragety is following the trend. before specify the entry point, you must identify the trend, in my stragety, I use the at_ZDn.mq4 (a little repaint) indicator to identify it ( you can use HMA 80 to instead). after that, waiting for the entry point using IINWMARROWS alert.mq4 indicator, remember always set your stopsloss at the closest swing point ( + spread), don't set your cutloss so far, that will make you lose bigger, agree when it's wrong. For example:

at_ZDn.mq4 setting at default
IINWMARROWS alert.mq4 setting at : faster MA: 5 slower MA 8, faster MA and slower MA mode: 3
Nothing can satisfy your greed, take profit when you feel that enough or at the support, resistance level, of course how much you pay, how much you must get back, so tp at 1:1 or bigger, move your sl when you want to get more depend on swing point or IINWMARROWS  indicator. If the market move so fast, don't try to get in, waiting for the retracement.

Hope it can help some one! good luck.

Nice article about price action trading (Sourses: www.dacharts.com).

Price Action - The Footprint of the Money  Judy MacKeigan - Buffy"What is Price Action?" is a question frequently asked by aspiring traders. Traders who ask, feel it is a well kept secret when all they receive for an answer is: “Swing highs, swing lows, test of top/bottom, etc., are all price action.” The answer still leaves them in the dark. Understanding price action enables a trader to minimize questionable entries and improve exits. Price action is the footprint of the money. Let's start with the very basics. The bars on the following chart are labeled as traders commonly referred to them. Up Bar is a bar with a higher high and higher low than the previous bar. The bars marked off are in an uptrend. Notice how the close is higher than the open until what turns out to be the last bar of the trend where the close is lower than the open. There were more sellers then buyers on the last bar. Down Bar is a bar with a lower high and lower low than the previous bar. The bars marked off are in a downtrend. Notice how the close is lower than the open until what turns out to be the last bar of the trend where the close is higher than the open. There were more buyers then sellers on the last bar. Inside Bar, also called a narrow range bar, is a bar with the high that is lower than the previous bar and low that is higher than the previous bar. Some traders do not consider an inside bar that has either an equal high or an equal low as an inside bar, others do. Inside bars usually represent market indecision. As on any bar, the closer the open and close are to each other shows just how undecided the market is as neither the buyers or sellers are in control. Buyers are in control on the inside bar marked on the chart because the close is at the top of the bar. Outside Bar, also called a Wide Range or Engulfing Bar, is a bar with a high that is higher than the previous bar and with a low that is lower than the previous bar thereby engulfing the previous bar. Since the open and close are close together on the marked bar, neither the buyers or the sellers are in control and the market is undecided which way to go. When the open is in the bottom quarter/third of the bar and the close is in the top quarter/third of the bar, it is said to be bullish engulfing with the buyers in control. When the open is in the top quarter/third of the bar and the close is in the bottom quarter/third, it is said to be bearish engulfing with the sellers in control. Another definition used for this bar – especially if candlestick charts are used - is that the open and close have to engulf the previous bars open and close and not just the high and low of the bar. With this definition, the wide range bar or engulfing bar does not need to have a higher high or lower low to qualify. The first definition most probably came about with bar charts where it is harder to notice the open and close. ---------------------------------------------------------- The following chart has the swing highs and lows marked in both an uptrend and a downtrend. Price on a given time frame is in an uptrend if it is making a higher highs (HH) and a high lows (HL) and in a downtrend if it is making lower highs (LH) and lower lows (LL). If price is doing anything else, it is in a consolidation pattern - range, triangle, pennant, rectangle etc. The trend is considered in place until price is no longer making higher highs and higher lows in an uptrend or lower highs and lower lows in a downtrend. After a trend is broken, there is usually a period of consolidation that is easier to see on a lower time frame. With practice, you will be able to visualize this going on without looking at the lower time frame. When price is in a consolidation pattern that is often referred to as chop, it is usually in a range with no trend pattern to the swing highs and lows. The above chart shows how an exact test of high or low may mean a change in trend as it failed to make a higher high on test of last swing high or a lower low on test of last swing low. (A) Price was making HHs and HLs until price tested the prior swing high at A. (B) Price made a LL and LH until price tested the prior swing low at B. (C) Price made a LH (The bar that does not touch line at C) until price tested the prior swing low at C. (D) Price was making HHs and HLs until price tested the prior swing high at D. It is possible for one time frame to be in one trend and another time frame to be in a different trend or show consolidation. This is where the phrase "trend within a trend" regarding price action and the different time frames comes from. An example would be that while price may be rising on a daily chart, the intraday chart will show retracements, corrections of various types and consolidation periods The true meaning of this and how it can influence your trading, eludes many. The following exercise is an excellent way to learn what the phrase "trend within trend" means visually Pull up a 15 minutes chart and mark the highs as higher high (HH) or lower high (LH) and the lows as lower low (LL) or higher low (HL). (The note tool was used in Ensign to mark these charts.) You can also print out the chart and mark it by hand. Use red lines if price in a downtrend and green lines if price in an uptrend. Remember price is in an uptrend if it is making HH - and HL and in a downtrend if it is making LH and LL. If price is doing anything else, it can be a consolidation pattern - range, triangle, pennant, rectangle etc. 1-4 is in a downtrend. 5-8 is in an uptrend. Now take the same chart and change the time frame to a 5 minutes chart, keeping the colored notes and numbers from the 15M by using the padlock with the L to lock lines in Ensign. Mark the new highs and lows with green numbers for an uptrend and red numbers for a downtrend. Now we can see by the yellow HH and LL what trend is on the 15M at the same time we are able to see the trend on the 5M Both charts are in a downtrend until the 5M makes a HH at the first green #1. The downtrend is broken when the LH at black #3 is exceeded. Price then goes on to make a HL starting an uptrend that continues until price makes a lower high at the red #1. The 15M just made a HH at the black #5 and will not make a HL until black #6. At this point, we are expecting a HL on the 15M, and are waiting for a long signal on the 5M. Some traders would take the entry on the pair of reversal bars at red #2, others would wait until the last swing high at red #1 is exceeded. The time frames are now in agreement (shown by green #1-#4) up to the black #7 HH. After the HH at #7, the 5M goes into a downtrend (shown by red #1-#6) to what is still a HL on the 15M at #8. So, while the 15M price action shows only two trends, the 5M shows five different trends! While you may trade the trends on the smaller time frame, waiting for price action to show it is going to move in the same direction as the larger time frame is trading with the trend. The trend is your friend! Sourses: http://www.dacharts.com/articles/Buffy_on_price_action.php

Some economic indicators for fundamental analyzing.

When business understanding and grasp the meaning of information is extremely important. Information given should take into account the time factor, accurately and bring the right decision for investors. So you know the schedule announcement and understood the concept of basic economic indicators yet? Non Farm Payrolls: The unemployment rate is a measure of the labor market. An analysis of the measure of the strength of the economy is the number one job is created. This index indicates strong growth of the economy because the company must create capacity to meet demand.

Schedule announced: the first Friday of the month at 8:30 am EST.

The decisions of the FOMC rate:

FOMC-Federal open market committee: A committee set interest rate policy and credit of the Federal Reserve System, the most important of monetary policy, led by Chairman Alan Greenspan. FOMC meeting eight times a year, in the meetings of the FOMC members will review monetary policy should change how?

Federal Open Market established the discount rate that the Federal Reserve to member banks for deposit in the amount of debt overnight. Interest rates are set in during the FOMC meeting of the regional banks and the Federal Reserve Board

Calendar published: 8 meetings per year. Last known date so please check on the economic calendar.

Trade balance:

The trade balance measures the difference between the value of goods and services that one country exports and the value of goods and services it imports. The trade balance surplus if the value of exports over imports, conversely, if the trade balance deficit if imports exceed exports.

Schedule announced: generally published around the middle of the 2nd month following the reporting period. You should check the economic calendar each month.

CPI - Consumer Price Index

CPI is a measure of inflation because it measures the price of a fixed price of consumer goods. Higher prices are considered negative for one economy, but because central banks typically respond to inflation by increasing interest rates to monetary sometimes react positively in the first reports of abuse found higher.

Measure the average change in prices of goods covered by the amount of the average consumer basket of goods and services fixed.

In the U.S., the proportion of items in the basket of goods is 42% residential, 18% food, 17% transportation, healthcare 6%, 6% jewelry, entertainment 4%, other 7%.

CPI is widely used to measure inflation, is an important indicator of the impact of government policies. Increase in CPI inflation implies, is an important indicator in the market and have the ability to change the market, the larger increase in inflation expectations or trends appear CPI increase will lead to incompatible Coupons and income and interest will increase. Only the high inflation caused the change in the stock market and will lead to changes in interest rates. High inflation effect is difficult to determine the exchange rate, it leads to a decrease in the exchange rate, the higher prices mean reduced competitiveness. High inflation and interest rates lead to increased application of tighter monetary policy.

Unlike the other measures of inflation, only include goods produced in the country, including CPI goods are imported. Analysts often focusing on core CPI, this variation was accounted for 8 factors accounted for 16% of the CPI basket (fruit, vegetables, gasoline, oil, natural gas, mortgage interest, urban traffic and tobacco ). The calculation is done for the CPI are calculated more accurately.

Schedule announced: monthly - about 13 days each month at 8:30 am EST

Retail sales:

The retail sales index is a measure of the total amount of goods sold by the example of the first retail stores. It is used as a measure of consumer activity and confidence when selling higher numbers indicating increased economic activity.

Schedule announced: monthly - about 11 days each month at 8:30 am EST.

Gross Domestic Product (GDP)

This index measures the market value of goods and services produced in a country, regardless of the nationality of the factors which owns the resources. There are four main elements to the value of GDP are: consumption, investment, government spending, net exports. The index is published on a quarterly basis comparable reduction ratio% increase this quarter compared with the previous quarter, this year compared to last year. This index has an important influence on the market after being released.