Candlestick Chart Vol 5

Forex Trading & the Use of the MACD Indicator

By Adrian Pablo

As a forex trader you must always be looking for a way to have a complete insight of the market and how to use the behavior of the currencies in your favor and stay away from losing trades that can affect your traders account capital.

There are a number of forex technical indicators that will be of great help as a set of compasses ready to give you an answer even in the most stormy market conditions. There are Bollinger bands, Fibonacci levels, RSI, Moving Averages, among others. These indicators are formulas that consider the state of the markets at different times and according to an analysis of the "recent history" of the forex market they will give you an indication about what should be done, this is, if entering a trade (buy or sell) has a high probability of being profitable or if you should wait for better market conditions.

One of the most used technical indicators is the MACD, this stands for, Moving Average Convergence Divergence. In short the MACD plots the difference between a 26-day exponential moving average and a 12-day exponential moving average. Along with these two lines there is also the plot of a 9-day moving average that is used as a trigger line. This means that when the MACD crosses below this trigger line it is a signal that prompts you to sell and when the MACD crosses above the line, it's a buying signal.

We can also see the MACD indicator as this; If the MACD turns positive, this is, if it makes higher lows consistently during a period of time, this could be a strong buying signal. On the other side, if the MACD makes lower highs this could be a strong sell signal.

Forex can be a great way of making a living from home or anywhere else your laptop and internet connection happens to take you. Learn more about the basics of forex trading and the best forex trading systems in the market right now:

=>> http://www.1-forex.com

Article Source: http://EzineArticles.com/?expert=Adrian_Pablo

FOREX REGULATORS

UNITED STATES

Commodity Futures Trading Commission (CFTC) - CFTC was created by United States Congress in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States. The agency protects market participants against manipulation, abusive trade practices and fraud. Through effective oversight and regulation, the CFTC enables the markets to serve better their important functions in the nation's economy by providing a mechanism for price discovery and a means of offsetting price risk.
http://www.cftc.gov

National Futures Association ( NFA) - NFA is a congressionally authorized self-regulatory organization for the U.S. futures industry, provides innovative regulatory programs and services that ensure futures industry integrity, protect market participants and help its Members meet their regulatory responsibilities.
http://www.nfa.futures.org

Capital Markets Compliance LLC (CMC) - CMC specializes in providing regulatory guidance for firms that offer securities products as well as banks requiring market risk management reviews. Clients range from one-person retail broker-dealer operations to full-scale multi registered representative broker-dealers, investment advisers, investment bankers, bank affiliated broker-dealers, state and national chartered banks, and financial holding companies.
http://www.capitalmarketscompliance.com

Securities and Exchange Commission (SEC) - SEC administers federal securities laws to protect investors from fraud and abuse. Includes the EDGAR database of corporate financial filings. The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets.
http://www.sec.gov

EUROPE

The Committee of European Securities Regulators (CESR) - CESR was established by the European Commission Decision of June 2001. CESR is an independent Committee regrouping senior representatives from national public authorities competent in the field of securities. CESR submits an Annual Report to the European Commission, which is also sent to the European Parliament and the Council.
http://www.europefesco.org

JAPAN

Ministry of Finance (MOF) - The Ministry of Finance is responsible for the country's fiscal and monetary matters. It consists of the Prime Minister's secretariat and seven bureaus. In addition to formulating the national budget, which is central to fiscal policy, the MOF monitors and guides banks and securities companies as to current monetary policy, adjusts the current balance of payments, and determines and maintains what MOF considers to be an appropriate level in foreign exchange rates.
http://www.mof.go.jp/english/

Financial Supervisory Agency (FSA) - FSA was established as an administrative organ responsible for the inspection and supervision of private sector financial institutions and surveillance of securities transaction. With the establishment of the Financial Reconstruction Commission, the FSA became an organization under the jurisdiction of the said Commission.
http://www.fsa.go.jp/en

UNITED KINGDOM

Financial Services Authority (FSA) - FSA is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. It is a company limited by guarantee and financed by the financial services industry. The Financial Services and Markets Act gives FSA statutory objectives: market confidence: maintaining confidence in the financial system; public awareness: promoting public understanding of the financial system; consumer protection: securing the appropriate degree of protection for consumers; and reduction of financial crime.
http://www.fsa.gov.uk

SWITZERLAND

Swiss Federal Banking Commission (SFBC) - SFBC supervisory authority of wide areas of the financial sector in Switzerland. Following are its tasks: supervision of: banks, investment funds, mortgage bond business, stock exchanges and securities dealers, disclosure of shareholdings and public takeover bids. It is in constant contact with the Swiss Federal Department of Finance and the Swiss National Bank. In addition, maintains regular contact with various associations, primarily the Swiss Bankers Association, the Swiss Funds Association and the Swiss Institute of Certified Accountants and Tax Consultants.
http://www.ebk.admin.ch/e

Money Laundering Control Authority (MLCA) - MLCA is one of the supervisory authorities responsible for implementing the Money laundering Act. It is responsible for the supervision of all financial intermediaries in the non-banking sector that are subject to the Money Laundering Act. These in particular include all those financial intermediaries who, on a professional basis, accept, or hold in custody, assets belonging to third parties, or assist in investing or transferring such assets.
http://www.gwg.admin.ch/e

CANADA

Canadian Derivatives Clearing Corporation (CDDC) - CDDC is the issuer, clearinghouse, and guarantor of equity, index and interest rate financial derivative contracts traded on the Montréal Exchange. CDCC also provides clearing, settlement and administrative services to the Winnipeg Commodity Exchange and the WCE Clearing Corporation.
http://www.cdcc.ca

Other include:
Alberta Securities Commission (ASC) http://www.albertasecurities.com
British Columbia Securities Commission http://www.bcsc.bc.ca
Commission des valeurs mobilieres du Quebec http://www.cvmq.com
Manitoba Securities Commission http://www.msc.gov.mb.ca
Ontario Securities Commission http://www.osc.gov.on.ca
Prince Edward Island Securities Office http://www.gov.pe.ca/securities
Saskatchewan Financial Services Commission (SFSC) http://www.sfsc.gov.sk.ca

AUSTRALIA

Australian Securities and Investments Commission (ASIC) - ASIC enforces company and financial services laws to protect consumers, investors and creditors. It regulates and informs the public about Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit. ASIC works with other financial, consumer and law enforcement bodies in Australia and internationally. It is an independent Commonwealth government body.
http://www.asic.gov.au

NEW ZEALAND

Securities Commission of New Zealand (SEC) - SEC is a statutory corporation which, in all matters other than funding and the appointment of Members, is expected to act independently of the New Zealand Government and others.Its purpose is to strengthen confidence in New Zealand's capital markets, both in New Zealand and overseas, by promoting the efficiency, integrity and cost-effective regulation of these markets and thereby fostering capital investment in New Zealand.

http://www.sec-com.govt.nz

Source : http://www.fxtrademaker.com/important_links.htm