Does any one have any good suggestions for trading the FOREX or what has been working for you?

Doc

Lately, with the weakness in the USD, trend following techniques have worked the best. I'm essentially looking for pullbacks in strong trends like EURUSD GBPUSD and USDCAD.

Specifically, what trend following techniques are using?

Doc

I am following the EUR and JPY but not currently trading.

One way is by looking for moving averages that may be acting as support/resistance. For example, the 20 day SMA for USDCAD has been terrific resistance. Unfortunately (for me) it looks like today will be the first close above the 20 SMA in three months.

Ed your chart has to few bars for me to see what the SMA is based on. And see it's charistics. So I'll just tell what MA I like.

One method that works very well for me when trading stocks is the Allan Hull MA. http://www.justdata.com.au/Journals/AlanHull/hull_ma.htm
Very smooth and little lag.
I plot 2 HMAs on my chart.
- HMA based on lows as support line for long positions.
- HMA based on highs as resitance line for short positions.
(you can shift the MAs up/down a little if you feel like it)
I use a 10 day period.
Weigthed average. But maybe another average like volume adjusted works better on forex.

Here's a look at the same chart, with six months of data. By the way, it's just a plain vanilla 20 period SMA calculated with closing prices. The Hull stuff looks interesting, maybe I can look more closely at it over the weekend. Plenty of fundamental reasons why the CAD had a bad week:

Thanks for the larger graph.
It looks like you made a nice profit in those 6 months. And only the future will tell if it's a real breakout or just a glitch.
Maybe you can repost the 6 month graph with both SMA and HMA on it.
And then give a small analisys of the pros and cons of both MAs.
If you can find the time ofcourse

I use HMA calculated on lows as support for long positions.
I use yesterdays HMA value as todays stoploss.
You SMA must wait for a close to give a signal. So theorectically the price has 24 hours to turn against you. You also use some stoploss?

It's a very personal view but I try not to read news articles. At least not about symbols where I have a position in.
When I started out it was very hard for me to admit defeat.
So my losses grew. And there was always some news clipping that proved I was right. Now I use my own system and calculate my stops and stick to them. Broken is broken. Even if it's just by a cent.
Since I follow that rule my equity curve looks much better :)
As said very personal.

Well, I can respect that. If fundamentals create a problem (and I've had similar experiences in the past, allowing fundamentals to create a 'bias') then I would stick to technicals. When I write these articles, I always try to include something useful, for instance the relationship between oil and the Canadian dollar could be used to your advantage (for example if your technicals signal a buy on the Canadian dollar and at the same time you see oil has found major support, you could use oil as confirmation for your CAD trade).

Hello All,
May I ask about which forex data feed are you using?
Thanks in advance.
Hani :)

i use the premium forex program for my forex data - it's daily data is in metastock format so no need to convert like other sources. i found it recommended in another forum and it has a free trial so you can try it out first.

the web site for premium forex is:
http://www.premiumdata.net/

jer

For more news and analysis see: tradinglimit.com

I've yet to trade the Forex, but looking at the massive liquidity of the major pairs, along with the leverage (x10~x200) offered by most brokers, add rollover costs (spread) for trades held overnight, and it makes sense to trade Forex intraday.
Beware - this is one market for the experts.

Check out this Forex intraday strategy.


jose '-)
MetaStockTools.com

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MetaStockTools.com

Regarding data feeds I recommend for getting intrady data feeds into MS using Xtick at www.xtick.com. try its demo.

Jose, I have some experience in forex and offer any support if you are interested.

Regards,
Hani

I am sure other would be interested in system that are working well on the FOREX markets.

Does any one want to share idea's

Doc