FOREX TRADING 10 rules to gain unlimited (JOHN MURPHY'S TEN LAWS OF TECHNICAL TRADING)

If you can understand Practice these principles, I believe you. It can survive With the investment using the principles of technical analysis offline.Let's get started better.

1. Trends

Starting with the long-term chart analysis on a monthly chart. And weekly By looking back several years. By doing this, To make a long-term view of the market has improved. While the long-term chart is finished. Should the daily chart Trade and graphs within The curve shows the short-term only. It can cause misunderstandings. Even if you make trades In a very short time, you will be trading more profitable. If you are trading in line with the medium-term outlook and long.

2. focus on the trends and go with it

Judging by trading trends and market trends. Market trends into three forms: short, medium, long-term first graph should be used before trading. You must first ensure that You follow the same direction as the market trend. Buy on upward trend Sales on a downward trend If you are trading in the medium term Use the chart on And weekly If Day Trading Use the chart on And chart trading day But in each case, Use a long-term graph Judge Trends The short-term chart Judging the timing trades.

3. Locate the lowest point, and most of it

For the Resistance (Resistance) and support (Support) is well positioned for the purchase. Buy near support levels The line is Close to its lowest point ever. Work is good for sales. Close to Resistance (Interpreted as The resistance will not fit) the resistance normally. Is the previous high After going through the resistance will cause a new line to the point. In other words, one can say. This price resistance elapsed. A new low price (Line in) on the other hand, when the support destroyed. This then becomes the price. New Highs (Resistance in the future). 


4. We will look back to how

We are used to measure the percentage Retracement of the market up or down. Normally the ratio of expected.Look at the USD / JPY chart M15 was more likely. Later, when changing trends. Turn down We can predict resistance 23.6% 38.2% 61.8% 50% 100% in this case Rebound at 23.6%.(Theoretical advice: You can measure a change of trend in the form of a simple% 50% Retracement of the main trend. A normal level At least one of the three main trends. Highest level is the second in three of the main trends Fibonacci Retracement 38.2% and a 61.8% interest in it as a trend. The purchase should be a level 33-38%).

5. Drawing trend lines 

Drawing trend lines (Trendline) trend line is one of the easiest ways. And the most powerful graphics tools. What you want is a straight line one and line two points on a graph. Drag the trend line from the low two points down trend line. Units from the 2nd highest price point will be pulled back to the trend line. Before the next trend. The up and down through the trend line. Considered normal rollups trends. Trend lines are available Will be tested at least three times the long-term trend line. It is very effective And the number of times it has been tested much. It's even more important .

6. According to the Moving average

(Moving Average) to sign the purchase and sale of the moving average will tell you that. The trend is still in its original trend And help to make sure the changing trends. Although the moving average can not tell you the future in advance. However, changing trends moving average is considered to be an interesting mix of two moving averages is the way, is very popular. For a buy signal and sell signal mix signal to buy - sell. Popular is four to nine days, nine to 18 days, five and 20 days to sign on. Short-term moving averages Cut the long-term average than, for example moving averages 4 days (short) cut an average of 9 days (longer distances) means a buy signal. When prices break higher (buy signal) or below (sell signal) 40 day moving average, considered a good trading signals. The Moving Average is a pointer to follow trends. This method of using moving averages are the best. Promising markets clearly .

7. Learn to change the trend

Check the engine Oscillators are tools Oscillators are assisted in finding market conditions overbought (Overbought) and market conditions to sell too many (Oversold) while moving averages to ensure the changing market trends tool Oscillators be. indicates that the market is up or down more. Or will return shortly. That is very popular is the Relative Strength Index (RSI) and Stochastics both values ​​are commonly used scale of 0 to 100, the RSI is greater than 70 is considered a state of overbought (Overbought), while if the reading. below 30 is considered a condition in which too many sales (Oversold) buying or selling too much for Stochastic are 80 and 20, most people use the 14-day or week for Stochastic and 9 or 14 days or weeks for RSI on the Oscillator born. Divergence often reflect changing trends. These are great tools available on the market without trend (Sideway) beacon signals daily, weekly use. Daily signals can be used to filter the signal during the day .

8. Learn the Warning Signs

Moving Average Convergence Divergence (MACD) is an integrated system, the intersection of the moving average. By measuring the levels of overbought condition too (Overbought) and for sale too (Oversold) buy signal occurs when. Signs of faster signals more slowly. And the two lines below the 0 signal is a signal for slower signals faster. And the two signals is greater than 0 weekly deemed to have priority over daily MACD Histogram draw a distinction between the two lines and provide early warning of a trend change. It was called Histogram since the height of the bars. Represents the difference between the two lines on the graph .

9. likely or not likely

The Average Directional Movement Index (ADX) line ADX help decide if current market trends. Nor is likely It measures the degree of change in trends. And market direction The rise of the ADX line suggests the more likely the decline of ADX indicates that the market is not likely to increase the ADX shows. Moving averages should be used as an indicator of the decline of ADX indicates that it should use the Oscillators by dragging the direction of the ADX line trader can decide between. Trading Style What is the measure most appropriate for market conditions at that time .

10. Learn to signal support.

Trading volume (Volume) that support the signal. Consists of the total trading volume While trading volume and open. Is compatible with the pre-market trading. Total trading volume before price sensitive. Trading volume was heavy persuasion to believe that trend. While in an uptrend. Total trading volume should increase. The increase in volume is now open. That is supported New money coming to Or seduced into a trend The volume is turned down as often. It is reminded that the trends leaned down near the end. The prices are on an uptrend. Should the total trading volume increased. While trading volume and open .