Forex (Currencies) Market Strategies
Forex Market Timing Service for Trading and Investment
Our Forex Trading Focuses on Four (4) Major Pairs:
GSBUSD - The British Pound against the U.S. Dollar
USDCAD - The U.S. Dollar against the Canadian Dollar
EURUSD - The Euro against the U.S. Dollar
USDJPY - The U.S. Dollar against the Japanese Yen
For every trade recommendation, we list whether to go Long or Short, the Entry Price, Profit Target, Protective Stop, and the Daily Volatility.We also have in our Members Area a brief current market analysis, updated periodically, and our perception of where the market may be heading.
Currency Market Timing Service for Trading and Investment
Our trading strategy begins with determining the overall market direction from both the economic and technical points-of-view. Subsequently, we like to trade with the overall trend of the market using our technical analysis tools developed from 29 years of research and trading experience.
We use monthly, weekly, and daily charts to analyze the market's strengths and weaknesses - as well as our own proprietary theories - to time the buying and selling of the currencies.
What We Offer You...
+ Market timing services for Currencies, Stocks, and E-mini S&P
+ Asset protection against down markets.
+ Asset gains that are above industry average.
+ Real-time ASSISTED TRADING for Currencies through Mirus Futures.
**Special offer: One-Year E-mini Membership option (up to $209 savings annually!). For a limited time, this option includes Forex and Stocks timing services for NO ADDITIONAL CHARGE!
Analysis of Currencies
There are three main strategies and two basic ways to analyze and trade a currency:
Day Trading (Not holdin a position overnight)
Swing Trading (Holding a currency from a few days to a few months)
Buy and Hold Strategy (Holding a currency for decades)
Fundamental Analysis of Currencies (intermediate to long term investing).
Technical Analysis of the Currencies (short to intermediate term investing).
Buy and Hold
Unlike stocks, the buy-and-hold for decades strategy does not work well with currencies. Currency trends generally last about 10 to 15 years and then reverse. As a result, all of the profits are given back.
Day Trading
There are two main motivations behind day trading:
1) The desire not to be in the market overnight.
2) The assumption that by catching intraday price swings more money can be earned.
Almost all day trading is done using technical analysis. Our research shows that a good swing-trading system can earn more money than a good day-trading system. One reason for that is swing-trading is able to take advantage of the price moves that occur overnight.
Swing Trading
Swing trading is a short-term trade strategy which involves holding a currency from a few days to a few weeks (or longer in some cases). As a general rule, swing traders use technical analysis to time their entries based on trends and price momentum. A good swing trader will develop a system whereby entry and exit points are at the tops and bottoms of major price swings.
Fundamental Analysis of Currencies
Fundamental Analysis of a currency involves analyzing market conditions of the respective country or economic union (such as the European Union) as well as world events that may affect the currency's value with respect to a competing currency. In currency trading, it is not only important to analyze a particular currency, but also the value of other currencies against that currency.
The fiscal policies of a particular government or economic union can greatly affect the value of its respective currency. Political factors such as war, civil unrest, and elections as well as economic factors, such as Gross Domestic Product or GDP (exports less imports) and consumer habits also affect the value of a currency. Since these factors take time to change, a fundamental trader focuses on longer term trading.
Technical Analysis of Currencies
Technical analysis falls into two major categories. Analysis using indicators, and analysis using support and resistance prices. Technical analysis seeks to identify price patterns and trends based on past data. The theory is that market patterns repeat and there is a way to analyze the price patterns that emerge.
Indicators such as MACD and moving average try to predict market direction and time the entry of the market using daily closing price. There are also indicators that use volume data to predict the turning prices of the market.
Here at Dow Indicator
Our Strategy
Our approach to currency trading is based on one- to twelve-month trades. Occasionally we may have trades that last only two weeks.
Technical analysis should begin with long-term analysis of a market using weekly charts to determine the overall direction of the market. Next is to analyze short-term price swings.
We use long-term analysis of the market to determine if a market is getting stronger or weaker. Then we analyze the long term price patterns to see if the trend is up or down. Finally, we use our proprietary Dylan Wave Theory to time our entry into the market.
The slide show will give you an idea of the trades that we generate and the profit targets that we achieve.
Why We Are Successful When Others Fail
We combine overall economic analysis and long-term technical analysis with short-term market analysis for the entry and exit prices. Our ability to time the entries is second to none. Markets are dynamic and ever changing. With 29 years of research and trading experience, we have built resilient market analysis methods that adjust to market changes. Our experience helps us and you navigate all kinds of market conditions to much better protect your assets and increase your gains.
The Forex or Currency Market
The foreign exchange market (FOREX) is a worldwide, decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. In a typical foreign exchange transaction, a party purchases a quantity of one currency with a quantity of another currency.
The cost of doing this transaction can be two fold:
1) The difference between the bid/ask price, which is called PIP (Percentage in Points) and/or
2) Commission to a brokerage firm who is executing the trades for you.
Some brokerage firms do not charge commissions, but share in the PIP. If a PIP spread between buying and selling a currency is four PIPs, then it is a costing about $40 to buy and sell currency worth $100,000.
If paying commission is involved, it is harder to earn a net profit with frequent trades using mini contracts. As an example, if a total of $6 commission is paid to buy and sell a contract, the cost of the commission in percent for 20 contracts per month for a mini contract would be 1.2%. Plus, there is the slippage, which means one would have to earn at least 1.2% a month just to break even. Because the cost of the transaction can be high, frequent trading using mini contracts will not be profitable. A mini contract represents 10,000 of the base currency. For example, the daily price move of a full contract ($100,000 if the base currency is the dollar) is usually around $1,400. But, if a mini contract is used, then the daily volatility is only $140. You can quickly do the math and see that it will not be feasible to frequently trade mini contracts for profits.
To compensate for the commissions, slippage, and bid and ask, we recommend trading at least 30,000 base currency at a time. Keep in mind that there will be drawdowns. So a $30,000 account should be traded with at least $5,000. And, this should be done if and only if you have a very good trading system.
