What is Forex – Forex Beginners II


Figure 1 clearly shows when buying and selling signals occur. A sell signal is triggered when the market generates a bar close below the trend line. More aggressive traders seek to sell just cross the line prices instead of waiting to close below the line. However, one should always keep in mind that it is good to have a confirmation signal before acting on it.

The buy signal is triggered when the market generates a bar that closes above the trend line. Once again, the aggressive trader can see that buy from the first penetration rising prices do but wait for a confirmation is not a bad idea.

The technique trend lines helps traders enter and exit intraday trends but does not necessarily help get key prices as targets once the signal is activated. For this, traders should consider using Fibonacci retractions, previous highs and lows, and projections based on price patterns to generate price targets when a break signal trendline is activated.

The most important point to remember is that the technique trend lines is very useful to isolate intraday trends and capitalize way.


Bollinger Bands, created by John Bollinger, is another way to determine when a market is about to make a key move in intraday. Bolliger Bands have attracted a lot of traders in recent years because the bands have a special way to measure the volatility of prices, and adjust to different market conditions.

Bollinger Bands consist of a central line (exponential moving average of 20 periods) and two outer bands are usually two standard deviations from the center line, one above and the other below. The bands can easily be demonstrated when the market is directionless (when the outer bands are compressed) and about to break rank, ouch market is tending (the outer bands are expanding) and is ready to restart the trend or develop a correction counter-trend.

Figure 2 shows how Bollinger Bands expand and contract as the market conditions change. Sometimes the market is strong mode trend (bullish or bearish) range mode (without trend) or retraction counter-trend. A trader can determine whether the market is about to grab trend when the Bollinger Bands contract to be horizontal point, suggesting that the market is in the form of range and about to break at any time

On the left side of Figure 2, the Bollinger bands is mostly horizontal, suggesting that a new intraday trend is about to develop, although at that time the bands do not say where you are going to break the market. Traders still can make an operation in this market based on the RSI of 14 periods to indicate the change of trend and the price break above or below the price range to enter this operation in the direction of breaking when this is done.

In this case, the RSI of 14 periods began to rise and the market began to break its range to the upside. Obviously, we are seeing after happened, but that had been the long buy signal. As the band began to expand, the trend was underway.

Even if the market were to be in range mode all day, traders could even operate range bands buying when it drops to the lower band and selling when it reaches the upper band. The important point to remember is that when the bands are compressed, a break of the range is imminent, and when the bands are expanded a trend is forming. Traders can also use the outer bands as price target.


Operating in intraday requires quick results (good or bad) as most players want to end up (without positions at the end of the day). A market that moves slowly can easily tie the capital and rarely wear their patience has volatility in intraday traders need. When the stock of Wall Street opening, they usually provide the movement necessary for intra-day operations, and it is good to be watching all the graphics of all exchange-traded funds (ETFs) or companies quickly or commodities they move that are likely to aperturar with a considerable gap. These instruments have been moving at night and usually have a tendency already established.

Markets that come tending for several days then make a gap in the same direction of the trend and it is these that offer the opportunity of an elastic gap, this is a movement counter-trend that can be observed in an extended, chart all sessions in conjunction with time windows in intraday. Analyzing both allows the trader to see the movement as a whole and taking an approach of a possible fund or ceiling.

When these extreme readings recorded perspectives simultaneously (as is almost always in the case of spot markets), the market is offering an ideal opportunity in intraday. An extreme technical position combined with an opening with great strength and great activity that ultimately provide an ideal operative movement.

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