Making Your First Forex Trade

From John Russell, former About.com Guide

Now add some indicators to the chart. For this chart, we are going to add MACD and a 200 exponential moving average. Using technical indicators is an option when forex trading. They are helpful for the decision making process.

The basic rule for using the 200 EMA is if the price is above the line, it is likely to continue higher, if price is below the line, it is likely to continue lower. The price seems to be moving below the 200 EMA line. This confirms that the price is in a stable downtrend.

I am going to use the MACD indicator to look for a confirmation that the price is ready to go down again. The MACD is not always reliable as an indicator when used alone, but when used as part of a larger trading system it can be helpful to pinpoint a possible turn in price. The price seems to be fighting the downtrend a bit, so I am looking for the MACD lines to cross and head down before I make my trade.

Previous

• Start the Trading Platform
• Step 2 - Open the Chart
• Step 3 - Add Indicators
• Step 4 - Place the order
• Step 5 - Set the Stop Loss and Take Profit Levels
• Step 6 - Order Confirmation
• Step 7 - The Waiting Period
• Step 8 - Trade Completion

Next