5 August, 2013
Trading signals have become a simple, effective and profitable way for traders of all skill levels to succeed in the forex marketplace. That being said, before traders can take advantage of signals, they need to know how to use them properly. I recently had a chance to speak with Nitay Bar, head market analyst at SunbirdFX, about how signals are formulated and how traders can properly utilize them.
Can you tell me a little about your background as a trader/market analyst?
Nitay: “Sure. I started trading more than ten years ago after completing a course at university. I then took some time to study the marketplace independently before going to work as a trader for a number of different banks and companies.”
What exactly did you do for these companies?
Nitay: “I was primarily in charge of managing either clients’ trading accounts, or the accounts of the company itself.”
Can you take me through a typical day for you as a market analyst?
Nitay: “Sure. As an analyst, I think it’s really important to look at the marketplace both technically, through the use of charts, and fundamentally, by looking at the potential impact of economic news events. The first thing I do when I get to my computer every morning is look at a variety of charts in different time frames. I then go over the economic calendar for the day to see what news can potentially impact the marketplace.”
What do charts tell you?
Nitay: “Charts give me a visual presentation of not only current prices in the marketplace, but also past trends and patterns.”
What time frames are you most interested in?
Nitay: “For me, I first look at daily and then move on to 4-hour and 1-hour charts.
Do you use technical indicators like Bollinger Bands and Relative Strength Index when analyzing charts?
Nitay: “I personally do not. Technical indicators can be very useful tools for beginner traders, but I have found over the years that I am able to read the markets much more accurately with more basic tools like support/resistance lines, trend lines and technical patterns.”
How does this information help you come up with trading signals?
Nitay: “When I am going over the charts, economic data and calendar, I am looking for trading opportunities with the highest profit potential and lowest risk. These opportunities are then translated into signals which are sent out to SunbirdFX clients.”
So what exactly is included in a trading signal that you provide?
Nitay: “The signals I send out include whether to buy or sell a specific trading instrument, followed by a stop loss level and two take profits. For example, I would send out something like; Buy EUR/USD- 1.3050, stop loss (s.l.)- 1.30, take profit 1 (t.p. 1)-1.31, take profit 2 (t.p. 2)-1.32.”
Can you go over exactly what a stop loss and a take profit are?
Nitay: “Sure. A stop loss is a defined level where a losing position will automatically close. Taking the last example, if I recommend placing a stop loss for the EUR/USD at 1.30, I am predicting that if the pair starts moving down and hits 1.30, there is a chance that it may continue downward and it would be a good time to exit that position. This is a huge asset for traders because they know in advance that if their position happens to be losing, it will close automatically at a specific price.
A take profit is a price level that a trading instrument may not easily break, meaning it may be a good time to close the position while it is profitable. For example, if I say that a good take profit for the EUR/USD is 1.31, I believe that it will be difficult for the pair will trade higher than 1.31. I will typically give two take profits, because once a trading instrument establishes a trend, there is a good chance it will continue with that trend.”
How often do you send out trading signals?
Nitay: “It really depends on market conditions, and what kind of opportunities are out there. If the market is particularly volatile, I usually send out two signals a day.”
What do you think the advantages to your signals are?
Nitay: “In my experience, most people who trade forex do so only in their spare time, and because of that, they tend to miss out on a lot of market opportunities. My job is to sit in front of a trading platform all day to search for those opportunities. Traders save both time and effort when they use trading signals, and they also have a much better chance of opening profitable positions than if they trade without any assistance.
Nitay thank you so much for your time.
Nitay: “My pleasure!”
SunbirdFXis happy to announce their new upgraded well develop Introducing Broker Program and Affiliate Programs...
SunbirdFx, one of the fastest-growing providers of online trading for Forex, metals and CFDs, is happy to announce their online seminars...
|7||Fort Financial Services||73%|