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Currency Trading Buy and Sell Zones

When currency trading online in the forex market it’s helpful to understand where the buy and sell zones are. Along with trading trends and trendlines, this helps you as a forex trader to identify potentially profitable forex trades.

Buy and sell zones, generally speaking, exist when a trend has been broken in currency trading.  To identify and trade buy and sell zones, then, you must be able to identify a trendline break.

The Broken Uptrend

Remember that the trend is your friend until it bends when trading forex online.  That is, if you are in the currency trading market trading a trend, then it is your friend until it bends.  Bends can also be your friend, however, if you learn to spot them and learn how to trade the trendline break (entering in the buy or sell zone).

An uptrend is considered broken if the following conditions are met:
1.The market makes a new high.
2.The market first penetrates the trendline.
3.The market then retraces to the last level of support.

When the uptrend is broken, the currency trading market enters the sell zone, which is the area below the trendline.  Remember, however, that the trend is only broken if the market has made a new high.  You will see certain cases where the market pierces the trendline but does not break it when you are trading forex online.

To be a true trendline break the forex market must bend after it has made a new high.

Watch for this broken uptrend when you are trading forex online:

Trading the Sell Zone

When currency trading the sell zone is one way to take advantage of an uptrend break.  To trade the sell zone, wait until a complete bearish candle forms below the trendline (it must completely clear the trendline, wick and body).  Notice the sell zone in the picture below:

Take care to wait until the candle has closed to call a trendline break; otherwise you may fall victim to a false spike.  When the bearish candle appears in the sell zone according to the conditions stated above, place a market order to sell at the opening of the next candle (if equity management allows).

Set your stop loss order at the last level of resistance

Techniques which can be applied to up trends, can also be applied to downtrends. Tomorrow I will share with you another example of how you can apply this strategy to currency trading online in the forex market.

Posted in Technical Analysis

Apolo Ohno – Mind of an Olympic Champion

Apolo Ohno Makes Olympic History

Last night Apolo Ohno set an Olympic world medal by winning his 7th gold medal in the 2010 Winter Olympics in Vancouver, Canada.

During one of the interviews before the record breaking event, Apolo revealed one of the secrets to his success.  He commented about how he has obtained the laser-precise focus that has allowed him to win medals in THREE different Olympic games!

Apolo has been skating since he was a young child. But he wasn’t always this serious about being one of the top skaters in the world. His focus came when his father challenged him to set some life goals.

As a teenager Apolo’s father took him to a cabin and told him to think about a GOAL that he would dedicate his life, mind and soul to. Something that he would sacrifice himself for. After 8 days alone in the cabin, Apolo called his father and told him he wanted to take skating seriously.

This turned out to be a good choice for Apolo, because he has now entered the history books as one of the greatest athletes ever!

What Can We Learn From Apolo?

To become truly great at something, we need to focus on being the best. Apolo’s decision to become great at skating only began on the 8th day alone in the cabin. Since then he has spent 12-15 years intensely focused on achieving that goal. He’s been dedicated to winning, no matter what the cost!

The Forex market is like the Olympics. You have the best financial minds and most powerful banks all competing for instant foreign exchange rates. To become one of the best, you need to think like the best.

You have the potential to make any amount of money you choose to in the Forex market. Decide that you want to master foreign currency trading and then follow Apolo Ohno’s level of determination to become one of the BEST traders in the world.

Apolo’s journey may have taken him through many years of intense effort and hard work. Along the way he has experienced many victories which has allowed him to enjoy the process as well. As a forex trader, you’ll see the market move up and down daily. Sometimes you’ll benefit and sometimes you’ll lose.

Stay committed to success and perhaps you’ll be cashing in on being a forex master with the mindset of a champion!

Posted in News