forex trend lines

Plotting a trend line on a Forex chart gives very valuable information.
Not only the trend line will show a current trend (direction) of the price move, it will also depict points of support and resistance levels for market price

In addition, it will also help to determine good entry and exit points, best positioning for profit taking and placing protective stops.
This very simple, but yet quite powerful tool will be one of the crucial indicators of possible trend reversal (when market price starts move in the opposite direction).

So, shall we learn how to draw trend line to make it our good friend in profitable forex trading?

In the uptrend market trend line is drawn below the pattern formation; in the downtrend — above. (That is why when the trend is going to change our trend line will be crossed, which therefore will give us a signal that the price can start moving in another direction.)

in the uptrend, Forex trend line is drawn through the lowest swing-points of the price move.
Connecting at least two «lowest lows» will create a trend line. In the down trend, trendine is drawn through the highest swing-points of the price move.
Connecting at least two «highest highs» will create a trend line.A trend line confirms its validity when the price respects this line. The more «lowest lows» / «highest highs» the trend line contains, the stronger it becomes.

Forex inflow cheers up tourism sector

NEW DELHI: Tourism in India may well be out of the woods if latest data is anything to go by. While the number of foreign tourist arrivals is still less than April last year, significantly, foreign exchange earnings have gone up. The number of foreign tourists who arrived in India -- excluding NRIs -- in April 2009 is 3.71 lakh as opposed to 3.84 lakh in April 2008, closing the gap substantially to 3.5%. Foreign exchange earnings, on the other hand, increased as compared to last year. FEEs were Rs 4,061 crore for April 2009, up from last year's Rs 3,773 crore. "The data is certainly encouraging. After a spell of negative growth, the fact that only 13,000 fewer visitors came to India in April this year as compared to last year could mean that tourist arrivals could show positive growth by October," Leena Nandan, tourism joint secretary said. The last quarter of 2008 spelt bad news for leisure travel and India suffered the combined impact of economic recession and Mumbai terror attacks. Growth rate dropped to 18% in January and the first three months of 2009 have been difficult for the industry. The tourism ministry, along with the industry, has incentivised travel under the Visit India 2009 programme promoting discounts on travel, stay and sightseeing. While growth of foreign tourist arrivals to India dropped from a high of 14% in 2007 to 5.6% in 2008, world tourism growth has come down from 6.6% in 2007 to 1.8 in 2008. According to UNWTO, world growth in 2009 is expected to be stagnant. Industry experts say that leisure travel may be picking up slowly and India could well be on its way to recovery by year-end. India has benefited from the fact that it has so far remained unscathed by the Influenza A (H1N1) virus that has gripped Mexico and parts of Europe, US and south Asia .

India’s Bonds Advance as One-Month High Yields Attract Buyers

May 13 (Bloomberg) -- India’s benchmark 10-year bonds gained on speculation banks and investors will put spare cash into debt after their yield yesterday reached a one-month high.

Benchmark bonds gained by the most in a week as subscriptions at the Reserve Bank of India’s daily reverse- repurchase auction, a gauge of surplus money in the financial system, averaged a record 1.4 trillion rupees ($28.2 billion) a day this month, compared with 1.1 trillion rupees in April. India’s five-phase general election ended today, with counting set for May 16.

“Liquidity support and the fact that there aren’t fresh factors to be concerned about are making present levels attractive,” said s. srikumar, chief of fixed-income at state- owned Corporation Bank in Mumbai.

The yield on the 6.05 percent note due February 2019 fell nine basis points to 6.33 percent at the 5:30 p.m. in Mumbai, according to the central bank’s trading system. The price rose 0.61, or 61 paise per 100-rupee face amount, to 98.01.

Bonds pared gains before the government’s scheduled sale tomorrow of 120 billion rupees of debt, the second this month. India plans to raise a record 2.41 trillion rupees from bond sales in the six months ending Sept. 30 as it increases spending to revive growth in Asia’s third-largest economy.

Elections

As many as 714 million voters began casting their ballots five weeks ago in the world’s largest democracy. Exit polls showed neither the ruling Indian National Congress party nor the main opposition Bharatiya Janata Party garnered enough votes to form a government without the support of regional parties.

The Congress party-led United Progressive Alliance may win 199 seats in elections to India’s 545-seat lower house, or Lok Sabha, a poll by the NewsX television channel showed. The BJP- led National Democratic Alliance may get 191 seats, it said. The majority mark is 272 as two seats in the house are nominated by the president.

The cost of five-year swaps, or derivative contracts used to guard against rate fluctuations, declined. The rate, a fixed payment made to receive floating rates, slipped to 5.73 percent compared with 5.78 percent yesterday.

Forex Trading Tips ---2

Tip 5. Never risk more than 2-3% of the total trading account.

One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in the money management approach. To introduce you to money management, let's get one fact: losing 50%of total account requires making 100% return from the rest of money just to restore the original balance.

Tip 6. Put emotions down. Trade calm.
Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.
Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip 7. Choose the time frame that is right for you.

Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames.On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.


Tip 8. Not trading or standing aside is a position.
When in doubt — stay out. If it is not clear where the market will move — don't trade. In this case saving present capital is and absolutely better choice than risking and losing money.

Tip 9. Learn to use protective stops. Respect them and don't move.
Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end upup with much bigger loss. When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for best"In the mean time invested money is stuck in the open trade for unknown period of time (weeks and even months) and cannot be used for opening new positions. Not working money — dead money. Also this will reAlso this will result in constant interest payments for holding open positions.

Tip 10. "Keep it simple, stupid" — applies to indicators, signals and trading
strategies.
Too much information will create a controversial picture of when to trade and when not to. To avoid lots of confusion create a simple but working method of trading Forex.

Forex Trading Tips --1

tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.
Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...

Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful tradersad been sharpening and shaping their skills on demo accounts for years before entering the real market.
A good demo account to start practicing with could be, for example, fxgame from Oanda.

Tip 3. Go with the trend!
Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals

Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.
It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaininga picture of daily, weekly price movements.

If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trendswhat's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.