Forex Blog

Two new MetaTrader indicators are now available for download from my site. Both indicators come from forex-tsd.com forums. They are very different, but they both looked quite interesting and useful to me.

1. Murrey Math Line X — indicates a set of support and resistance lines that can be used similarly to the common pivot points. It consists of 8 different lines, each representing a certain pivot level. Adding this on the chart makes it more readable and can help determine next price stop point:
2. TRO MultiPair — a very cool indicator by TheRumpledOne from the forex-tsd.com forums. It shows multitimeframe signals for several currency pairs on one window with several gradations of the signal’s strength. It’s based on many smaller indicators and can be quite useful, especially in scalping and long-term trading. A good scalping strategy is to sell when signal shows red-red-magenta for M1, M5 and M15 timeframes for the given pair and to buy when it shows green-green-magenta:

A new addition to my strategy Forex e-books collection arrived today and now can be downloaded by everyone — it’s FX Wizard by Rob Walton. This e-book is about almost everything that is connected to the successful Forex trading — basic money management, discipline, the overall systematic behavior of the trader and, of course, the trading system development. It’s intended for the experienced Forex traders that know the basics and are eager to learn the more important information. But if you trade for several years then you should already know everything that this book can tell you about. If you have just turned from being a Forex newbie to first significant successes and failures in trading then this e-book is for you.

A new indicator is available for download now — it’s TzPivots. It shows the daily pivot points directly on the MetaTrader chart. It’s easy to use — you only need to set two input parameters for it to work properly:

• LocalTimeZone — should be set to your MetaTrader server’s time zone shift in hours relative to the GMT. E.g. if your charts in MT4 are for GMT-5, then you should enter “-5″ for this parameter.
• DestTimeZone — is the time zone shift of the destination trading session relative to the GMT. E.g. if you want to trade during the London session, then you need to set this parameter to ”0″ or to ”+1″ when the daylight saving time is on.

That’s all you need to use this wonderful indicator.

I published a new complex MetaTrader indicator on the site today — it’s called Traders Dynamic Index. It has almost everything the Forex trader needs: trend direction indicator, trend strength indicator and the market volatility measurement tool. But despite these cool features it is very simple to use. This indicator was sent to me by one of the site’s visitors, but it most probably originates from www.compassfx.com.

Here’s a quick guide to using this indicator (I recommend reading the full guide in its code’s commentary):

1. Blue bands show a strength of the trend — the wider they are, the stronger is the trend.
2. Yellow line indicates the trend’s direction change — when it bounces of 32 level, trend goes bullish, when it bounces down from 68 level, trend goes bearish.
3. Green and red lines signal for the long position — if the green one intersects the red one from below, and — for short position, when the red one crosses the green line from below.

I’ve recently ran across an interesting money management book — Money Management: Controlling Risk and Capturing Profits by Dave Landry. It’s a short e-book, written in four parts. First part simply explains why the risk management is important in the financial trading. Second part gives some interesting advices to organize your money management strategy, or to help you create one. Third part is where some of the Forex professionals are sharing their experiences of poor and good money management. And the final one, fourth, is the most interesting one, in my opinion, — different Forex professionals share their lessons of risk-wise trading.

I’ve also changed the structure of the Forex e-books section a little. Now I have a separate list for beginner, general, advanced, psychology, strategy and money management e-books.

Now you can download a new free research paper related to the Forex market from the e-books section of my site. It is “The Interaction Between the Frequency of Market Quotes, Spread and Volatility in Forex” that was published in the Applied Economics journal more than 10 years ago. This paper researches the relations between volatility, spreads and the frequency of the new market data in the Forex. It can be considered outdated for the majority of the modern traders, but it can help in understanding of how the interbank Forex market works. This e-book is definitely not for the general traders’ community, but it holds a lot of information for the experienced and professional traders.

Enjoy the new MetaTrader indicator — Support and Resistance — ready to be downloaded from the indicators page. This indicator shows the dynamic support and resistance levels directly on the chart. It applies the levels to the certain periods that are treated as the trends or sub-trends. This indicator was originally developed by Barry Stander (http://myweb.absa.co.za/stander/4meta/), but I have received by e-mail from one of my reader — Muntazir Mehdi. So, thanks should go to both of them. And I hope to receive and publish even more of such interesting and yet simple Forex indicators.

Now you can freely download another money management in trading related Forex book from my site — Mathematics of Money Management: Risk Analysis Techniques for Traders. It is written by Ralph Vince, the author of many books about the use of math in trading. Although this e-book is quite heavy on mathematics (calculus and statistics) it’s intended for the general readers — both for those that are fluent in numbers and those that are not. You’ll find some working methods and formulas there, that, if used in your own money management strategies, should help you to avoid many of the problems financial traders encounter. It’s quite a big e-book and isn’t very easy to understand, so be prepared for some long read.

I uploaded a new Forex e-book to the site today - it’s called “The New Science of Technical Analysis“. It was written by Thomas R. DeMark, one of the founders of the modern technical analysis and developer of the DeMark’s pivot points. This book is more suited for the experienced Forex traders, because it goes quite deep into the techniques of chart analyzing, while being not very entertaining (of course, hardcore Forex traders will be entertained by such precious knowledge itself, but that’s another story ☺). The book is divided into 13 chapters with each of them describing a certain pattern or behavioral aspect of trading. Definitely - a good read for those who think that they know a lot about Forex trading.

A new trader’s psychology related e-book for you to read:

Learning Flawless Execution of a Trading System by Mark Douglas

It’s more like an article - just 4 pages long, but it contains a useful information for all Forex traders that have problems in applying a trading strategy. Sometimes, it seems that you know better than your strategy and you correct its actions. Mark describes why such approach is completely wrong and tells us how to avoid it. If you constantly find yourself changing a Forex strategy after it lost 2 positions, you will probably learn some interesting facts from this book.