"Forex Entry Signal"

Determining Forex Entry Signal, Made Easy!
Feed Your Charts To The Dogs!

Anyone who is interested in earning some profit from foreign currency trading would want to know the answer to this question: when is the right time to invest on a particular currency. In other words, what is the best kind of forex entry signal?

Well, the determination of a forex entry signal has become the topic of many debates… all of them of the academically mathematical nature, and I’m not talking about simple algebra.

No folks.

I’m talking about very complicated graphs, usually multi-linear, delineating price points, time frames, and a comparative relationship between the two.

It’s ironic to think that the alleged process for determining the best forex entry signal isn’t really friendly for entry-level forex traders.

So, in this article, we are going to chop down those complex concepts into simple ideas, without losing their essence. After all, all we want is to know the best forex entry signal that will provide for us the most probable chance of succeeding in this field, right?

Forex Entry Signal Via MACD Divergence

MACD divergence is hailed by most as the clearest indicator of a forex entry signal. It refers to the Moving Average Convergence Divergence, basically, the comparative difference between two lines, one representing 12 and 26 Exponential Moving Average EMA), and the other representing 9 EMA.

Okay, scrap that.

In layman’s terms, MACD can be described as steady growth in the value of the currency over a substantial time frame.

Easy, right?

When determining the best forex entry signal using the MACD divergence method without having to study those blindingly confusing charts, simply ask yourself these questions:

1.How much increase in value has the currency experienced?

2.Did the currency enjoy this increase over a period of time which is long enough to actually matter?

Forex Entry Signal Via Momentum Vs. Forex Entry Signal Via Breaks

Determining forex entry signal via momentum or via breaks are techniques that, again, require the usage of charts. The momentum method refers to an analysis of the retracement lines drawn on the high and low points of the price movement as compared to the general trendline in the chart. The break method is simpler to understand because it only requires a determination of a break in the movement of the price line over a substantial period of time to point to sustainable stability.

Okay, scrap those as well.

We want easier techniques to determine a reliable forex entry signal, right? Personally, the least thing I want is to reenroll college trigonometry.

When can we say that a currency has momentum? Simple. When the currency enjoys a continuous increase in value over a substantial period of time, then yes, it has momentum.

When can we say that a currency is sending a forex entry signal because of a break? Simple. When the currency enjoys a stable status when it comes to its value over a substantial period of time, then that currency’s “break” in movement indicates fewer risks for the would-be forex trader.

Leave The Charts To The Control Freaks; Common Sense Forex Trading For The Win!

The insistence of some sectors to rely on complicated charts to determine a reliable forex entry signal only serves to alienate more people from entering this highly lucrative industry.

But here’s the truth: many, many, many forex traders succeed by merely using a three-step process to determine the best forex entry signal. This three-step process is aptly called the common sense method.

1.Study the political, economic, and socio-cultural forces at play in the country that publishes the currency. Keep yourself updated! The newest issue of Time Magazine, the nightly news, and the local dailies will help you here.

2.Study the currency’s history for the past 6 months. Are there any drops in the value? Are they big drops? Did the lower exchange rate last for a long time? These are danger signs. Avoid currencies that experienced them.

3.Hold on to your currency until such time that the forces that pushed its value to skyrocket have ceased, then sell just before the value drops.

When dealing with forex trading, and when determining the right forex entry signal, flexible common sense will beat static chart interpretations any day of the week!

The forex market has many advantages over the other traditional investments, and for sure, it will give you more freedom, and more money.

About The Author:

Franck Silvestre helps trader beginner to understand the Forex market by turning difficult forex terms and system into simple concepts!  Get even more FREE Forex tips,  Strategies and Secrets. in his amazing Forex Trading System Newsletter
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