Forex Foreign Exchange

When trading in financial market it is recommended to chose a specific time frame of a Forex chart and trade according to it only. Experienced traders use the time frames of 4 hours, 24 hours or 1 week. There are certain advantages and disadvantages of the big time frames. The bigger is your time frame, the more money you have to deposit to your trading account because each trading position needs higher margin. But at the same moment you have the chance to make higher income. The market’s behavior is more predictable for bigger time frames but it may take you more time to find a good opportunity to enter the market. In this article we would like to reveal a method of trading in 4 hours time frame using the candle stick charts that can be found at all Singapore brokers

Be prepared that trading with 4 hours candle stick charts requires a lot of patience and time. It may take you much time to find a good situation to enter the market and also from 12 hours to 5 days to stay in the market. This method is based on the trends that sometimes take place in the Singapore Forex market. The goal is to open a trade in the beginning of the trend and close a trade in the end of the trend. According to the strategy a trader must analyze the market and his open trades every 4 hours after the last candle in the 4 hours graph is completed.

When analyzing the market it is recommended to check the rates for the certain currency pairs for 4-5 days back on a 4 hours candle stick chart in order to check if there were some trends before or there is an opportunity for a potentially good downward or upward trend coming. The decision of opening or closing a trading order may be done only every 4 hours when the last candle is completed and a new one has begun.

If you notice that the last three candles show that the market is going up, this is a good time to open a buy position. If at least 2 last candles go down, this is a signal for a potential downward trend and you can make a sell position. In order to reduce possible losses you can use such orders as take profit and stop loss. You can place a take profit order after 120 pips in case if the prices between the opening and closing of the market did not go over 80 pips for the last five trading days. If the rates exceeded 80 pips for the last 5 days, you can place the take profit order on 240 points.

We wish all traders successful trading and invite them to share their opinions of Forex trading in Singapore.

There are a lot of different Forex materials online that teach newbies how to trade using the levels of Fibonacci, Elliot Wave, etc. Of course these ebooks are very good for any new Singapore trader, but the problem is that the authors of these books give 100% guarantee that if you do as they say, you will make money.

Unfortunately the reality is not so easy and to justify himself in the loss, a trader begins frantically recall all his decisions in order to make sure there is a reason of his mistake and loss. Someone may has forgotten to take into account a very important factor while opening a trading positions, another one has miscalculated the Fibonacci levels – and now such traders are making a sad conclusion: “No, the currency trading is not for me…” And of course everyone who thinks this way is wrong, as Forex in Singapore has many techniques and some of them are very simple like trading with reverse orders that can give you more than 500 pips every month.

The advantage of trading with a reverse orders method is that you have a good opportunity to catch the market disregarding of its direction. I believe many of you have faced a problem when you research the direction of the market and open a trading position. But the market goes against you and your position is closed by stop loss order with a loss. And after that the trend changes and goes your direction. How sad we are when it happens.

In order to diminish the chances of losses in such situation a method of reverse orders was invented. It is a very simple trading technique and every nivice trader may apply it. What you need to do is when you open a position on Buy instead of stop-loss level after 25 points you place a position for Sell. The same you do for a position for Sell, you secure it with a position for Buy. The fact is that you don’t use a stop loss and if the trend goes against you, you will still remain in the market.

By using this strategy you have a opportunity to correct your trade any time despite of the market’s direction. The correction works the following way. If one of the orders shows a profit of 10 points you should place another order in this direction. This method will allow you to minimize the losses. When you have three positions (two sell and one buy) where in general you are in profit you can start closing the profitable positions if you see that the market turns and takes another direction. Trading this way lets you open many positions and you can also use high leverage for it. This trading technique may be uses on any platform and with all Singapore brokers.