I recommend some short-term trading in addition to you current strategy, while your current strategy can yield significant gains it can also yield significant losses if you forget to implement stop-loss. Short-term trading can get you quick returns and minimise losses, HOWEVER your gains will also become smaller because of the shorter time frame. My advice is to try marginalising risks with short-term trading, though profits wont be so great it boosts your potential income rather than idley waiting.

I' am sure others share my opinion, but im also interested to hear what others think about this.

When invested in a real account forex use the following techniques: the Commodity Chanel Index (CCI 50) the Stochastic oscillator the Exponential Moving Average, These techniques are very useful and opotunamente detect market trends, for better investments.

Hello to FXSTAT.I'm new at forex,your posts are very informative.Thanks.

Originally posted by MargaretLekker

When invested in a real account forex use the following techniques: the Commodity Chanel Index (CCI 50) the Stochastic oscillator the Exponential Moving Average, These techniques are very useful and opotunamente detect market trends, for better investments.

Thanks for your suggestions it has been a very educational read for me, i've done some research and while I have understood 2/3 of the tools youve suggested i was hoping someone could elaborate more on EMA.

While i have understood SMA i dont understand how someone should calculate the extra weight they should place on new data compared to the historical data. If someone could explain this to me in a bit more detail i would be very grateful! Thanks :)

PS. For anyone curious;
CCI is basically a technical analysis tool to determine when a currency is over bought/sold. Formula is CCI=(Price/Moving Average)/(0.015xDeviations).

Stochastic Osillator is a technical momentum indicator comparing a currency's closing priceto its price over a given time period, and sensitivity is adjusted by the moving average. Forumula is %k=100[(most recent closing price-L14)/(H14-L14)]. FYI L14 is low of 14 previous trading sessions and H14 is highest price traded during same 14 trading period.

MA (or SMA) is the mean of some trading points i.e. (1.2+1.3+1.4)/3 days = MA, EMA is the same except more weight is given to the newer data. What i dont understand is how do you know what weight to give the newer data? Again Many Thanks guys!

Originally posted by 4nt5

What i dont understand is how do you know what weight to give the newer data? Again Many Thanks guys!" />

 

By using percentage. 

Originally posted by Champ

 
Originally posted by 4nt5  
What i dont understand is how do you know what weight to give the newer data? Again Many Thanks guys!" />       By using percentage.   

Originally posted by MargaretLekker

When invested in a real account forex use the following techniques: the Commodity Chanel Index (CCI 50) the Stochastic oscillator the Exponential Moving Average, These techniques are very useful and opotunamente detect market trends, for better investments.

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Originally posted by cheesyfinger

 

Originally posted by Champ

 
Originally posted by 4nt5  
What i dont understand is how do you know what weight to give the newer data? Again Many Thanks guys!" />       By using percentage.   

what percentage do you use normally for say the last 3 days over a 14 day period?