Author: Editorial Team

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.

Trading Correlations – Introduction to pairs trading

Trading Correlations – Introduction to pairs trading

Trading Articles
Trading currency or stocks correlation, or pairs trading as it is often referred involves buying one currency pair or stocks and shorting an inversely correlated currency or stock. The basic premise of currency correlation trading is to maximize the profits when a bias of one currency pair is extreme. Currency correlation can be used in many different ways and for different purposes. One of the common reasons for trading currency correlation has to do with the swap rates. For example, if you were to short AUDUSD, which attracts a negative overnight rollover fees, finding an inversely correlated currency pair whose long position would attract positive swap rates would reduce any additional fees that might incur. Pairs trading or correlation trading is considered to be a market neutral...
Easy trading strategies with Renko Charts

Easy trading strategies with Renko Charts

Trading Strategies
Renko charts, as written in our previous article is purely based on price action and is independent of time. Due to the nature of renko bricks, it is therefore easier to use various charting analysis such as trend lines, chart patterns, support & resistance. Unfortunately, most trading strategies based on Renko tend to focus on indicators such as moving averages, oscillators et all. In this article, we give a brief outline into the basics of trading with Support/Resistance levels. Short Term Support & Resistance Perhaps the most easiest of all, traders can identify support and resistance levels with renko charts with much more ease than with using any other chart types. The chart below is that of the NZDUSD, 10 pip renko move. The horizontal line plotted shows clear resista...
Engulfing Bar at Pivots – Trading Strategy

Engulfing Bar at Pivots – Trading Strategy

Trading Strategies
Traders familiar with candlestick patterns would know that the engulfing bars are perhaps one of the most strongest of candlestick patterns. Besides, they are also visually easy to spot. The engulfing bars usually represent short term bullish or bearishness in the pair. Trading these patterns by themselves, while might not give consistent results, using these price patterns along with other indicators can ggreatly improve the odds. Engulfing Bars at Pivots This trading strategy is based on pure price action and makes use of pivot points for references. It works off a 1-hour chart, although can be used on H4 as well. For the pivot points, we make use of the weekly pivot points as reference, or monthly for H4 chart interval. Long Positions: A long position is initiated when a bullish eng...
Trading the Awesome Oscillator

Trading the Awesome Oscillator

Trading Indicators
The Awesome oscillator was developed by Bill Williams, part of his series of 'Chaos Theory'. Bill Williams went on to develop various indicators as part of this '5-market dimensions'. Some of the other well known indicators from Bill Williams include the Williams Fractal, Alligator, Awesome Oscillator. The Awesome oscillator is commonly found on many charting platforms and is used to measure momentum. The awesome oscillator is identified by its histogram which oscillates around the 0-line. When the awesome oscillator (AO for short) rises above the 0-line, it indicates positive momentum and when it drops below the 0-line, it indicates negative momentum. Trade signals are taken based in reference to the AO's 0-line. Calculating the Awesome oscillator The Awesome Oscillator calculates th...
Narrow Range Bar Trading Strategy

Narrow Range Bar Trading Strategy

Trading Strategies
The narrow range bar or NR bar for short is a popular trading strategy that offers fixed stops and target levels. It can be used across any chart interval and the strategy in itself is built on solid principles. The concept of the 'Narrow Range bar' strategy is based on price action and states that when the range (High - Low) is the lowest or the narrowest within the past 'x' number of bars, it is indicative of a big move (either to the upside or downside). However, the NR bar strategy has many variations. One of the most popular methods is to take long positions when an NR Bar set up is formed above the 100, 200 or 250 SMA and short positions are preferred when an NR Bar set up is formed below any of those longer term moving averages. Also accompanying the NR Bar set up is the ATR (Averag...