Platform Overview

ForexGen Trading Station:

ForexGen Trading Station is the client's part of the online ForexGen Trading Platform. We provide all the needed trading tools for a successful trading. We attempt to supply the sufficient information and tools in order to make the Forex traders' decisions more appropriate and easy. The program has a simple and user friendly interface that allows traders to monitor their transactions and their account as well as performing technical analysis and develop Forex trading strategies of their own. ForexGen provides continuous real-time information and sophisticated technical analysis tools. ForexGen Trading platforms are stable, secure and characterized by its unique performance. It is the best solution for trading on Forex, CFD and Futures markets.

The ForexGen Trading Station is our clients' gateway to the world's Foreign Exchange and Bullion markets. We have chosen the ForexGen Trading Station as our solution for the professional trader because in our opinion, it is the most reliable, professional and secure online trading software on the market at the current time.

ForexGen platform features:

• Streamline dealing with no request for quote for up to 200 lots (20 million).
• ForexGen trading platforms have a friendly user interface that is both easy to use and to grasp.
• One click orders execution.
• Providing real-time charts with the most common indicators.
• Advanced charting tools with many technical analysis features.
• Daily account statement.
• Provides many order types to employ the desired trading strategies and mange the risk.
• Summary of client's orders, floating profit& loss, account equity, etc within real-time.
• Follow P&L and open positions within real-time.
• Providing a multi-lingual platform that supports 14 different languages.
• Exclusive technical analysis daily to your mailbox in the Trading Platform.
• Providing news headlines directly in the system.
• Provides research reports for every day and every week.
• Showing real-time prices in the major currency pairs that are constantly updated.
• Providing tools enabling the ForexGen's clients who have real accounts to program their own trading strategies with the Expert Advisor.
• Clients with real accounts can discover the ForexGen's trailing Stop feature.
• Providing a high level of security found in the client's unique username and password. We strongly recommend you to open a demo account to try the many features of our system. For further information or assistance, please do not hesitate to contact us at any time or simply request a call back.
• Working with securities of Forex, Futures and CFD markets.
• Various execution technologies: Instant Execution, Request Execution, Market Execution.
• Confidentiality of all trading operations.
• Unlimited charts quantity.
• Support of various timeframes (from minutes up to months).
• Large number of technical indicators and line studies.
• Experts, Custom Indicators and Scripts.
• Multilanguage program interface.
• Signals of system and trading actions.
• Getting on-line news from financial markets.
• Internal e-mail system.
• printing charts and completed trading transactions statements.

For More Information Visit : http://www.forexgen.com/ .

ForexGen.com SCAM WARNING - Traders, Watch Out!

I know this will not help many who get blineded by the dream to profit big in forex for the first time, but novice traders, please read this so you don't get into the corner I found myself in, losing most of my money because this bastrad of all bastards who you call Felix, and i call demitri or the real brain behind all this scam, a guy called Bruce Hoffman from Texas(convicted for many fraud crimes and spent time in jail).
This little punch of people doing what at least can be described as organized crime, inlcuding many other identities like Rob, Grespi, Rick, Ghafour, Rasheid, Omar, and many more masks....all fake

They promote their signal service, fooling novice forex traders to count on them in trading the news. they have caused hundreds of people to lose big money. they even dare to promise you if you lose that they can blackmail the broker to get you your money back.They have done that several times and we have seen traders burned by their flames, and they try to flame brokers too, some times succeed and others not. Google for felix combined with Oanda, interbankFX, FXCM, Forex.com, and any broker of your choice, you will see their scams, a replica used with tens of brokers over the past 3 years, and the victims, hundreds of traders who get broke.

See what I found about those bunch of crooks on the web, and don't ask me, I have been also burned by these theives.

The email sent by Felix the bastard:
"Hi there
One of my full time forex trading buddies just had a serious problem happen. He had an account with www.Interbankfx.com with $620,000 of real money in it. They went through some "technical difficulties", executed a bunch of trades that he didn't execute, margin called him, e.t.c. Long story short, lost him $280,000 in a matter of days, because of "technical difficulties".
Then he spoke to the CEO of the company, who shook his hand, admitted that these were indeed technical difficulties, and he would take care of him.
Now, they are dropping the ball on him, saying that he is a beginner trader, and it was all his fault...I mean these guys opened some trades while this guy was out of town!
Having this website, I get a bunch of different complaining emails from people, and obviously I usually don't email about people's problems to you. But in all honesty, I know this guy very well personally, I've seen his account statements, and I know he is not bullshitting me. I mean this guy was making hundreds of thousands in forex, while I was still in high school, and didn't even know what the word forex meant. And by the way, it's not Tom or Rob...it's somebody else.
Here is the real reason why I am emailing you. This guy has a lawsuit going against Interbank FX right now, he already has a federal attorney involved, and he is trying to shut these suckers down, in addition to getting some of his money back.
If you had an account with Interbank FX, and you also feel you got "screwed" by them, then perhaps you could add yourself to the lawsuit, and recover some of your losses, and put an extra complaint against them to get them shut down.
If you want to get involved in this or have some other helpful information for my friend, please don't respond to this email, instead send an email with your story to interbankfxfraud@forexbastards.com
To Our Success!
-Felix Homogratus"

Posted by GreenField (Member # 2533) on June 20, 2006 02:45 PMJune 20, 2006 02:45 PM:
So now we hear from both sides, let us think about it, make good judgement, and do further research if we have to.
Know the truth and the truth will set you free.
Here is the email I got from Interbankfx:
Hello Mr. Chang,
I appreciate your comments and we have to say that we are saddened by the potential impact that lies and rumors can cause. To help you help us to combat these types of deceptions, we are providing you additional details which you can distribute. They are a summary of a 6 page response letter which was sent to Cashmonsterz clients.
Warm regards,
Javier H. Paz
Institutional Sales Director
A reckless and unprincipled trader named Carlos Roman, of Cashmonsterz, has apparently asked his buddy Dmitri (Felix) of www.forexbastards.com to defame Interbank FX. Carlos turned $370,000 into a $100,000 master account in a matter of days. His approach to trading was to max out the available margin of the master, to close the positive side of trades and let the open losses ride with the hope that the market would turn around. In sideways markets this approach might work many times, but on May 11 and 12 the British pound trended on a big way and touched 1.9000, forcing him to place a hedge 600 pips wide! After that point, the sub-accounts were on intensive care. He called multiple times asking us to cancel the trades with the promise of bringing more clients to us. We told him we couldn't do this for him. To complicate matters further, he changed Pamm settings an average of once a day and kept on trading aggressively taking many accounts to a margin call situation. The more he changed the Pamm settings, the more difficult it was to perfectly hedge open positions. Throughout this period, Interbank FX tried all within its power to make sure that subaccounts were hedged, but things evolved to a point were several subaccounts could no longer be hedged because they had fallen below the 100% margin level.

Posted by stevegee58 (Member # 4086) on June 20, 2006 03:01 PMJune 20, 2006 03:01 PM
My god. If I'd been pushing trades with my *own* money to the max like that I'd be sh1tting my pants. If it was other people's money, I'd jump out a freaking window if I wasn't dead from a coronary already.
Posted by FisherKing (Member # 3924) on June 20, 2006 03:05 PMJune 20, 2006 03:05 PM:
I'm going to have to believe Intebankfx on this one.
Posted by Piprider (Member # 4331) on June 20, 2006 03:24 PMJune 20, 2006 03:24 PM:
I will believe interbank fx too. It looks like Mr. D u m b A s s was good enough to attract money from clients - good enough to feel it is a marketable enough skill to offer it in trade for having his dealer take the losses of the positions he accumulated but with money management skills equivalent to those of Danielgsx. Then, he tries to mitigate the damage by trying to play on the public opinion's general distrust of market makers. He should have partnered up with someone who can really trade and relegated himself solely to the solicitation of funds from clients. Instead, he took everyone to the crapper at lightspeed.

Posted by OrlandoFlyBoy (Member # 3974) on June 21, 2006 10:20 AMJune 21, 2006 10:20 AM:
Well, I don't get it. It appears that they are talking about two different things, but making it sound like the same thing.
Was this a platform error that executed trades by itself, a newbee trader that traded badly, a managed account where the "manager" traded badly (without the account holder's permission, or against the wishes of how the account would be traded), or Interbank FX hedging that went haywire?
Someone make it clear exactly what happened, in order, so that it is clear what the complaint is
Posted by mobbbb (Member # 7422) on June 21, 2006 10:25 AMJune 21, 2006 10:25 AM:
Maybe a gohst entered the trades and then vanished while the asset manager was gone ?
Posted by PIPCANADA26 (Member # 9133) on July 12, 2006 06:28 AMJuly 12, 2006 06:28 AM:
I went to a conference provided by Interbank here in Canada and by the way some people mention this topic and the representative from InterbankFX did say The CEO Crosland was going to reimburse Cashmonsters Investors For this failures.
I wonder the same why Interbank doesn't just sue Cashmonsters? legally who can prove the truth will win but by the way, then if Cashmonsters is right then they could squiz the big bucks from Interbank for defamation if they have a failure that causes those losses and more than that for revaling the traders name.
Was a bit impossible for me to believe that a serious company can have such failure in their software but when I saw this letter from this executive Paz I understood must be right, when you don't have nothing to excuse you just have to be quiet, why then give explanations? When people asked what this PAMM in question is they explained works for Percentage Allocation Money Manager is used for professional traders who manage several accounts you can set to distribute by percentage or by lots, usually they said you set it once and never again. Paz mention in his post Cashmonsters Trader Changed the Pamm every day. I want to believe that but I can't. Reason Simply. when another assistant to this seminar asked why a trader would want to change every day the pamm settings he just said. "I don't know" again, I'm a lawyer and that for me indicates a lie.
In the other hand I asked what "hedge" term means and found that is short and long the same currency in the same account then this phrase make no sense from Interbank: "May 11 and 12 the British pound trended on a big way and touched 1.9000, forcing him to place a hedge 600 pips wide" Nobody gets forced to do nothing in Forex markets at least not even a new trader places a trade being forced by a Jedi Mind.
Making math 1.9000 - 600 pips= 1.8300 here is my Idea if this guy cashmonster is as good as everybody claim he was going to get not only those 600 pips back but maybe another 120 total 720 profit on the short side from the hedge, maybe such big earnings from Cashmonsters are not convenient from a company as Interbank plus trading with 620k I believe then is not hard to duplicate or triplicate an account. (I saw the pound as Paz Mentioned in his post and it went down to 1.8085 from 1.9000 that he claim is the top of the problem)
As A lawyer I can say that if Interbank is right they can file a federal law suit against cashmonsters where they just need to proof they trade trying to loose money. The problem for Interbank is that as far as I can see Cashmonters has not made any comments or post as Interbank do a self defense. They can not then complain Defamation. Here the Note from Zelli is good idea record your calls but that is illegal so wont be valid unless both sides agreed that both are being recorded. Then if interbank has Cashmonsters calls recorded they will win this case. I would love to hear Cashmonsters begging with the promises of more clients but I guess we wont see that. I wont open my possible self traded account with Interbank anymore and I wont open a managed account with Cashmonsters I would love to see who lies and who is honest but I want to trade I will open my account with Oanda and another one with FXSOL. Any comments about FXSOL will be truly appreciated.Cashmonsters is famous for aggressive trading then 600 pips in question should be piece of cake for an aggressive trader, Interbank is famous for the 2 pips of spread and now for revealing names. I wonder then If Interbank detected a bad trader placing crazy trades why they just did not stop or block his trading screen? Interbank make money for every trade trough the spread. I do not need to conclude then more.
Looking then at Cashmonsters side, Defamation if Interbank is proven wrong can be a big problem for this company. They made public the name of the trader. Reason for which I would not open my account with Interbank Even if I was happy with what this guys proposed in this seminar here in Canada.
Why? well I consider that they fail in the "discretionary code" that every company should have. and by the way is included at Interbanks agreement, another reason for me to give a point to Cashmonsters. And Finally and to conclude, when the representative from Interbank at the seminar mention that Crosland CEO from Interbak was going to reimburse the Investors that ringed my Lawyer heart. this CEO is smart who will want to have a bunch of complains at the NFA, CFTC and a pissed Trader claiming big bucks for defamation? what's the amount in the middle? 620k I guess that is piece of cake for Interbank to cover and avoid "interbank" as a post in Oandas Forum. Nothing more disturbing. 2 great firms now full of dirt who will get clean? I don't know and I don't care I will trade at Oanda and FXSOL myself.

1.Felix Homogratus AKA "DIMITRI", Rob Grespi the owners of http://www.forexbastards.com are always looking to make quick money from the novice traders by hiding under the entity of http://www.forexbastards.com and similar sites and using it to publish public opinions about respectable brokerage firms whom they are considering as competitors; do not get fooled by theses scammers because this is the only way they can pay their bills, their victims are every where (you have been warned)!!!! They have a whole scam section every where just start searching about them on the web and you will be amazed
2. Felix Homogratus, Rob Grespi AKA "DIMITRI" the owners of http://www.forexbastards.com are big scammers many people have bought their stupid www.forexfreedom.com system and it was a major scam these guys are fools they have copied and pasted some crap into their claimed system and selling it to novice traders and make quick money from them. Do not go near them.
3. We know you are a major scam Felix!!! The words spreading like fire you and your http://www.forexbastards.com can not hide any more
4. This is what I found out about this "FELIX" http://www.forexbastards.com SCAMMER GUY looks like he is leaving a trail of destruction every where he goes the list of victims is growing its staggering. It's nice to see his victims unite to inform the public about this PROFFESSIONAL SCAMMER!!!!!
SITES WITH COMPLAINT ON THIS GUY
http://www.felixbastard.com/
www.peterbainscam.com
http://www.setbb.com/forexjudge/
http://www.talkgold.com/forum/r107900-.html
HIS GROWING LIST OF SCAM JUNK SITES.
www.forexfreedom.com
WWW.kingofforexsignal.COM
WWW.FOREXBASTARDS.COM
5. Hi guys I love your creative post! I USED TO BE a client of Dimitri or Felix the liar at www.forexbastards.com . And this guy is a total scam his system is garbage, after using his bogus chat room and signals! "now" I understand why he lost his trading account and money. He has a real conflict of interest going there he calls all of his competitors scams. Just so he can promote his garbage. I lost a lot of money following his advice a few thousand
Stay away from his bogus news trading and stupid alert service. They all lose money. I subscribed with one of the people he called a scam and they turned out to be very profitable. And I even submitted a positive testimonial for www.fxringleader.com & winningtraderassociation and it never made it. !!!! Hummm I guess felix is a scum bag snake oil scammer / con artist.
6. I lost money on this www.kingforexsignal.com and that stupid www.freedomforex.com promoted by www.forexbastards.com
7. This scam artist Felix AKA Dimitri always says that "If you were scammed by these people, please write to me, and I will help you get your money back" what this snack means I WILL STEAL YOUR MONEY!!!! Be warned guys never go near him of his www.forexbastards.com scam

WELCOME TO FOREXGEN - Swiss Precision - Scandinavian Quality :

1-No Swaps - Unlimited Time.
2- 1 pip spread on 10 pairs.
3- Low Spreads on Crosses.
4- No Commissions.
5- No Margin Calls.
6- No Withdrawal Fees.
7- Same Day Withdrawals.
8- Hedging Capabilities.
9- Multi Account Platform.
10- Instant Deposits.
11- No Dealing Desk Accounts.
12- Excellent Support.
13- Premium Trading Tools.
14- Partnership Programs.
15- Instant Account Activation.
16- Standard, Mini and Micro Lots.

For More Information Visit : www.forexgen.com .

Be Aware Traders .... Scam in The Forex Market

As the popularity of Forex increases so do the number of scam artists attempting to cash in on the Forex gravy train. Since Forex involves trading money internationally, often over the Internet, whole new breeds of scams have come about. Ironically many of these scam artists are finding their marks through newspaper, television or other print media advertisements.

Like what is happening , you can see that a group of scammers try to blackmail the companies , they aim at the big brokers...this have happened with ForexGen ,they tried to blakmail it, a group of scammers or as they supposed to be called an organization, This little punch of people doing what at least can be described as organized crime.

They promote their signal service, fooling and deceiving novice forex traders to count on them in trading the news. they have caused hundreds of people to lose big money. they even dare to promise you if you lose that they can blackmail the broker to get you your money back. They have done that several times and we have seen traders burned by their flames, and they try to flame brokers too, some times succeed and others not. Google for felix combined with Oanda, interbankFX, FXCM, Forex.com, and any broker of your choice, you will see their scams, a replica used with tens of brokers over the past 3 years, and the victims, hundreds of traders who get broke.

While these scams are generally easily spotted by experienced traders, new speculators may have problems knowing the difference between what is real and what isn't. It is absolutely essential to thoroughly research Forex trading, and any potential companies you may trade with before making an initial investment. The last thing you need is to find out that the company you have invested with is under investigation by the SEC for fraud. In this type of circumstance it can often be impossible to retrieve your money as the claims from all fraud of participants will be higher than the total payouts the government can guarantee.

One way to spot a scam on Forex is when someone promoting a Forex system guarantees no risk. It is a fact that there is risk with Forx trading, and generally anyone who claims otherwise is a liar, or more likely a criminal. Trading in Forex successfully requires knowledge, discipline, and a trading strategy. But there is no magic software or no risk way to assure that you will make money.

Another red flag indicating a sure sign of a Forex scam is a web site that guarantees profits. Nobody can guarantee profits in Forex trading. It is up to you as an investor to perform. If it were possible to guarantee profits in Forex trading then nobody would need to start a business showing others how to make guaranteed profits. The profit potential for anyone who could guarantee profits would be so enormous in Forex trading, that they would quickly become a billionaire by trades. So why would they waste time teaching others?

Another common tactic of Forex scam artists is to promise employment opportunities for people using their system. This is usually a trick to get you to spend your money with them. They are fishing for people with capital who can fund their enterprise. They typically promise to offer firm money to people using their system. But why would they do this? Instead what happens is they lure people into their training systems and convince people that they have done so well in the training session that they should start using their real money in order to make a fortune.

All reputable Forex trading web sites will be a member of the CFTC or the NFA. Make sure to check the company's claims out and assure that they are members of one of these organizations before dealing with them.

Keep in mind that Forex is a relatively unregulated system of exchanging money. In many cases Forex scams can become highly technical, involving brokers manipulating prices in ways that cannot be tracked by the average trader. Because of this is essential that you not become a mark for such brokers.

In the United States the CFTC is the federal agency responsible for regulating the trade of Forex currency. If you suspect that you have been a victim of some type of fraud contact the CFTC. They have jurisdiction for investigating and enforcing the laws.
and each country has its own agency and regulation system .so its not only the CFTC that you should b looking for .

Winning Cash Money is reality With ForexGen

New phase in ForexGen ....Who doesnt like to make money easly?.... this is a question that forexgen have asked and here it is the answer for such question ...NO ONE .....But How ?!!this one ForexGen answered by the following promotions it is offering to its clients, and future clients.

ForexGen has came up with different promotions :

1- Demo contest.

2- Live contest.

3- claim your bonus.

4- Scalping enabled account.

5- refering clients.

The First promotion :The Demo contest :

it begins at the begining of each month , and all you have to do is to send an email request to demo.contest@forexgen.com and after we receive your request we will provide you with further details and with your demo account login information which will be used in the trading contest.

By the end of each contest:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit .

2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit

3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

The Second promotion :The Live Contest :

Three easy steps to get a cash back money in the beginning of each month
Trading, Competing, Wining ….
That’s what is takes …
With pleasure ForexGen announce the launching of its Unique Live Account Contest.

Watch Out Traders, Its not a virtual contest , its now the time of a live contest

Who ever holds a mini account is entitled to take part in this competition starting the first of each month the tablet is expunged completely and every one has a new beginning to win the prices.

Why IT’S unique?
CASH MONEY without any restrains or limitations on withdrawing the prize money!

HOW TO TAKE PART IN IT?
If you hold a mini account with balance $1000 and leverage 1:200, then you are entitled to take part in it on your request , all you have to do is to send an email to live.contest@forexgen.com requesting to participate along with your “ live account number “

By the end of each month, the top 5 accounts with the highest profits (including floating P/L) will be awarded the following prizes:

First place: 50% of the account profit

Second place: 40% of the account profit

Third place: 30% of the account profit

Fourth place: 20% of the account profit

Fifth place: 10% of the account profit

(Profits will be added to the live account balance)

The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.
Winners will be announced by the 15th of the following month.

The Third promotion :Claim your bomus :

this is one of the best promtotions that forexgen has to offer to its clients, as as soon as you open a live account with forexgen , you are entitled to get a cash back bonus credited to your account as follows :

mini account : 10% of your deposit with maximum $250.

standard account: 10% of your deposit with maximum of $500.

The Forth promotion : Scalping enabled accounts :

Trade and scalp the market ForexGen has the pleasure to announce the availability of both Dealing Desk and No Dealing Desk Platforms. No Dealing option provide traders with direct access to the best bid/ask prices through multiple bank access. No re-quotes & No dealer confirmation is the main characteristic of the no dealing option made specifically for “scalpers” and active FX professionals. Absolute freedom to trade during news and economic events. The no dealing desk option allows traders to place entry orders inside the spread! Unlike competing FX firms, ForexGen offers traders all the advantage of a “no dealing desk” option.

The Fifth promotion : Refer a client :

If you have any friends who trade in the Forex market, and may be interested in joining ForexGen.com, why not get a FREE cash bonus from their trading activities?The referring party will receive $100 USD to their ForexGen account, at the end of the month in which the following criteria are met:

1. The referred party has opened a live standard account of at least $2,500 USD and has traded 20 round turn lots.
2. The referred party has opened a live mini account of at least $250 USD and trades 20 round turn lot, the referring party receives $10 to their ForexGen account.

For more information about our current and future promotions, please visit: www.forexgen.com .

Price Smoothies

A moving average is simply a way to smooth out price action over time. By “moving average”, we mean that you are taking the average closing price of a currency for the last ‘X’ number of periods.


Like every indicator, a moving average indicator is used to help us forecast future prices. By looking at the slope of the moving average, you can make general predictions as to where the price will go.


As we said, moving averages smooth out price action. There are different types of moving averages, and each of them has their own level of “smoothness”. Generally, the smoother the moving average, the slower it is to react to the price movement. The choppier the moving average, the quicker it is to react to the price movement.


We’ll explain the pros and cons of each type a little later, but for now let’s look at the different types of moving averages and how they are calculated.

For More Information Visit : www.forexgen.com

Simple Moving Average

A simple moving average is the simplest type of moving average. Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices and then dividing that number by X. If you plotted a 5 period simple moving average on a 1 hour chart, you would add up the closing prices for the last 5 hours, and then divide that number by 5. Voila! You have your simple moving average.

If you were to plot a 5 period simple moving average on a 10 minute chart, you would add up the closing prices of the last 50 minutes and then divide that number by 5.

If you were to plot a 5 period simple moving average on a 30 minute chart, you would add up the closing prices of the last 150 minutes and then divide that number by 5.

If you were to plot the 5 period simple moving average on the a 4 hr. chart………………..OK OK, I think you get the picture! Let’s move on.

Most charting packages will do all the calculations for you. The reason we just bored you (yawn!) with how to calculate a simple moving average is because it is important that you understand how the moving averages are calculated. If you understand how each moving average is calculated, you can make your own decision as to which type is better for you.

Just like any indicator out there, moving averages operate with a delay. Because you are taking the averages of the price, you are really only seeing a “forecast” of the future price and not a concrete view of the future. Disclaimer: Moving averages will not turn you into Ms. Cleo the psychic!

Here is an example of how moving averages smooth out the price action.

On the previous chart, you can see 3 different SMAs. As you can see, the longer the SMA period is, the more it lags behind the price. Notice how the 62 SMA is farther away from the current price than the 30 and 5 SMA. This is because with the 62 SMA, you are adding up the closing prices of the last 62 periods and dividing it by 62. The higher the number period you use, the slower it is to react to the price movement.

The SMA’s in this chart show you the overall sentiment of the market at this point in time. Instead of just looking at the current price of the market, the moving averages give us a broader view, and we can now make a general prediction of its future price.

For More Information Visit : www.forexgen.com

Exponential Moving Average

Exponential Moving Average (EMA)


Although the simple moving average is a great tool, there is one major flaw associated with it. Simple moving averages are very susceptible to spikes.

Let me show you an example of what I mean:


let’s say we plot a 5 period SMA on the daily chart of the EUR/USD and the closing prices for the last 5 days are as follows:

Day 1: 1.2345
Day 2: 1.2350
Day 3: 1.2360
Day 4: 1.2365
Day 5: 1.2370

The simple moving average would be calculated as(1.2345+1.2350+1.2360+1.2365+1.2370)/5= 1.2358

Simple enough right?
Well what if Day 2’s price was 1.2300? The result of the simple moving average would be a lot lower and it would give you the notion that the price was actually going down, when in reality, Day 2 could have just been a one time event (maybe interest rates decreasing).

The point I’m trying to make is that sometimes the simple moving average might be too simple. If only there was a way that you could filter out these spikes so that you wouldn’t get the wrong idea. Hmmmm…I wonder….Wait a minute……Yep, there is a way!
It’s called the Exponential Moving Average!


Exponential moving averages (EMA) give more weight to the most recent periods. In our example above, the EMA would put more weight on Days 3-5, which means that the spike on Day 2 would be of lesser value and wouldn’t affect the moving average as much. What this does is it puts more emphasis on what traders are doing NOW.


When trading, it is far more important to see what traders are doing now rather than what they did last week or last month.

For More Information Visit : www.forexgen.com

SMA vs. EMA

Which is better: Simple or Exponential?
First, let’s start with an exponential moving average. When you want a moving average that will respond to the price action rather quickly, then a short period EMA is the best way to go. These can help you catch trends very early, which will result in higher profit. In fact, the earlier you catch a trend, the longer you can ride it and rake in those profits!
The downside to the choppy moving average is that you might get faked out. Because the moving average responds so quickly to the price, you might think a trend is forming when in actuality; it could just be a price spike.

With a simple moving average, the opposite is true. When you want a moving average that is smoother and slower to respond to price action, then a longer period SMA is the best way to go.

Although it is slow to respond to the price action, it will save you from many fake outs. The downside is that it might delay you too long, and you might miss out on a good trade.

SMA :

Pros:
Displays a smooth chart, which eliminates most fakeouts.
Cons:
Slow moving, which may cause a lag in buying and selling signals.

EMA :

Pros:
Quick moving, and is good at showing recent price swings.
Cons:
More prone to cause fakeouts and give errant signals.

So which one is better? It’s really up to you to decide. Many traders plot several different moving averages to give them both sides of the story. They might use a longer period simple moving average to find out what the overall trend is, and then use a shorter period exponential moving average to find a good time to enter a trade.

In fact, many trading systems are built around what is called “Moving Average Crossovers”. Later in this course, we will give you an example of how you can use moving averages as part of your trading system.

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MA Summary

* A moving average is a way to smooth out price action.

* There are many types of moving averages. The 2 most common types are: Simple Moving Average and Exponential Moving Average.

* Simple moving averages are the simplest form of moving averages, but they are susceptible to spikes.

* Exponential moving averages put more weight to recent prices and therefore show us what traders are doing now.

* It is much more important to know what traders are doing now than to see what they did last week or last month.

* Simple moving averages are smoother than Exponential moving averages.

* Longer period moving averages are smoother than shorter period moving averages.

* Choppy moving averages are quicker to respond to price action and can catch trends early. However, because of their quick reaction, they are susceptible to spikes and can fake you out.

* Smooth moving averages are slower to respond to price action but will save you from spikes and fake outs. However, because of their slow reaction, they can delay you from taking a trade and may cause you to miss some good opportunities.

* The best way to use moving averages is to plot different types on a chart so that you can see both long term movement and short term movement.

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Parabolic SAR

Up until now, we’ve looked at indicators that mainly focus on catching the beginning of new trends. And although it is important to be able to identify new trends, it is equally important to be able to identify where a trend ends. After all, what good is a well-timed entry without a well-timed exit?


One indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And Reversal). A Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement. From the chart above, you can see that the dots shift from being below the candles during the uptrend, to above the candles when the trend reverses into a downtrend.
Using Parabolic SAR

The nice thing about the Parabolic SAR is that it is really simple to use. Basically, when the dots are below the candles, it is a buy signal; and when the dots are above the candles, it is a sell signal. This is probably the easiest indicator to interpret because it assumes that the price is either going up or down. With that said, this tool is best used in markets that are trending, and that have long rallies and downturns. You DON’T want to use this tool in a choppy market where the price movement is sideways.

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FXS - Stochastics

Name:
FXS-Stochastics
Characteristic:
Momentum
Parameter Defaults:
Length
14
Plots:
PercentK

PercentD

Overbought
80

Oversold
20
Stochastics were created by George Lane in the 1950’s and have become a popular momentum indicator due to the apparent simple nature of its overbought/oversold signals. There are two versions of Stochastics – Fast and Slow. George Lane did provide full rules as to when to use Stochastics but many find these rather difficult to apply. Essentially the basic element of Stochastics is the Percent K line. This is derived from a simple formula that measures the relative position of the current price in percentage terms against the recent range. Percent D is a form of average of Percent K and Percent Slow D is another average of Percent D.
Another use of Stochastics is the crossover of the faster line across the slower. (%K through %D and %D through %SlowD) One of the distracting features of Stochastics, particularly the Fast Stochastic, is the number of occasions when the two lines cross, providing apparent bullish and bearish signals. All too often there is no follow through and the crossover provides a false signal.
FXS-Stochastics provides a smoother Stochastic with fewer crossovers, and therefore fewer false signals.

Usage

The chart shows the 10-minute bar chart of USDCHF in the middle of February 2003. All three forms of Stochastics are plotted and it can be seen that the standard Fast Stochastic is constantly suffering crossovers of PercentK through PercentD, even to the extent of being almost every bar during the sideways consolidation around 15:30 – 17:30. The Slow Stochastic does reduce the number of signals. But at the far left, at the start of the data series both Fast and Slow Stochastics can be seen moving higher and lower without reflecting price action that well. At the same time, FXS-Stochastics provided a consistent bullish trend to price and avoided the confusion caused by the standard indicators.
This same situation occurred to the right of the chart, also, as FXS-Stochastics indicated the basic bearish direction of price.

Another feature of FXS-Stochastics is that it has been developed to cause less crossovers in trending markets, times when standard momentum indicators traditionally fail. Note how in the daily GBPJPY market FXS-Stochastics held positive throughout the entire move while the standard Slow Stochastics caused a series of crossovers.
One point to appreciate is that to accommodate the feature of less whipsaws the indicator is slower than the standard version and is not totally suited to finding peaks and troughs. However, with an integrated analytical methodology the smoother features help in identifying the underlying price direction.

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Moving Average Convergence Divergence (MACD)

Characteristic:
Trend Direction
Parameter Defaults:
First EMA Period
12
controls the measurement period for the short average

Second EMA Period
26
controls the measurement period for the long average

Signal EMA Period
9
controls the measurement period for the signal average
Plots:
MACD
The MACD line

MACD_Signal
The signal line for MACD

MACD_Hist
The spread between the MACD and Signal
The MACD indicator was developed by Gerald Appel and is simply a method of identifying the potential for two exponential moving averages to cross. MACD is calculated using a short length and a long length exponential moving averages (defaulted to 12 and 26) and calculating the difference between these two averages. In other words, it is the spread between the two averages. A signal line is then derived by calculating an exponential moving average of the MACD. This is plotted as the MACD Signal. Finally, the difference between the MACD and the MACD Signal is calculated and plotted in a histogram as the MA Hist.
The MACD is often used as a trend-following indicator, and may be interpreted similarly to other moving averages. That is, when the MACD crosses above the MACD Signal, an uptrend may be beginning, indicating a buy signal. Similarly, when the MACD crosses below the MACD Signal, a downtrend may be beginning. As an oscillator, the MACD can signal overbought and oversold conditions though there is no method to identify overbought and oversold conditions.
However it must be noted that while MACD is often used as a trending indicator, when price direction slows it will result in the spread between the two exponential moving averages reducing, thus causing the MACD line to decline in the case of an uptrend or rise in the case of the down trend. This will cause losses if MACD is utilized for crossovers of MACD line across the Signal line.




The point A displays and example of how MACD can rise even though for a while both averages are declining, but the spreads is narrowing. A similar event occurs at point B where it can be seen that MACD is diverging against price while both averages are pointing lower. Note at point C how the MACD Hist is displaying a slowing of the rise in the spread between MACD and Signal and on a break of the trend line price reverses lower.Finally, Point D gives another example of a bullish divergence between MACD and price.

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Commodity Channel Index (CCI)

Characteristic:
Momentum Indicator
Parameter Defaults:
CCI Period
20
controls the measurement period for the CCI
Plots:
CCI

The Commodity Channel Index is commonly used primarily to identify beginning and ending of cycles in futures markets and also to identify buy and sell opportunities. The CCI may also be used to signal overbought and oversold markets, much like an oscillator.
The CCI is calculated to arrange 70-80% of all price activity falls between +100 and -100 on its vertical scale. Many users believe a long position is indicated when the CCI exceeds +100 while a short position is indicated when the CCI falls below –100 but this interpretation should be based more on an individual’s market analysis. For example, it may be decided that -125 indicates taking a short position while a +150 indicates taking a long position for the specific market being evaluated.
Like other oscillators CCI may also used to signal overbought and oversold markets. Levels above the CCIlong line may indicate an overbought market and breakouts below the CCIshort line may indicate an oversold market.




The chart of the USDCHF 4-hourly market shows a successful application of CCI as an overbought/oversold indicator. Note that price reversed on every occasion that CCI moved above 100 or below -100, although one example shows a bearish divergence.
Because of the amount of time it spends in the neutral position (between the CCIlong and CCIshort lines) note that it is not unusual for CCI to miss the early part of a new move. Many users believe CCI crossing above or below zero identifies market conditions before the CCIlong and CCIshort lines are crossed.

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Bollinger Bands

Characteristic:
Support & Resistance and Volatility
Parameter Defaults:
MA Period
20
controls the measurement period for the average

Std Deviation
controls the placement of the bands around the average
Plots:
BLG UP
Upper Band

BLG DP
Lower Band
Developed by John Bollinger, Bollinger Bands were and are a volatility bands drawn around a simple moving average. They are calculated using the standard deviation of price over the same period as the moving average and plotted as lines above and below the moving average.
Since moving averages have been traditionally used to identify the underlying trend, Bollinger Bands combine this concept with the volatility of each individual market (the standard deviation) – to plot an envelope.




In brief, standard deviation represents a normalized distribution curve, shaped rather like a bell tapering off to each side. From a sample of data it is expected that on average, a deviation of one from the mean (the highest point) on each side would represent 68% of the sample results. A deviation of two from the mean would represent 95% of the sample results. Thus, the implication is that by taking two standard deviations from a moving average it will contain 95% of price action. Prices outside of the band should only occur 5% of the time and thus any movement out side should be considered an abnormality.
The distance between upper and lower Bollinger Bands is a reflection of volatility. As price forces itself away from the average, the standard deviation rises and thus the bands will fluctuate in varying amounts away from the average. During sideways periods, prices reaching the bands may indicate overbought or oversold conditions. Strong movement up through the upper band or down through the lower band may indicate the beginning of a trend.








The 10 minute GBPJPY chart shows how much of the price action in non-trending periods are broadly held within the bands. As the market trends, there is a persistent pattern of breach of the Bollinger Bands.


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Benefits and Drawbacks of Lagging Indicators

One of the main benefits of trend-following indicators is the ability to catch a move and remain in a move. Provided the market or security in question develops a sustained move, trend-following indicators can be enormously profitable and easy to use. The longer the trend, the fewer the signals and less trading involved.

The benefits of trend-following indicators are lost when a security moves in a trading range. In the S&P 500 example, the index appears to have been range-bound at least 50% of the time. Even though the index trended higher from 1982 to 1999, there have also been large periods of sideways movement. From 1964 to 1980, the index traded within a large range bound by 85 and 110.

Another drawback of trend-following indicators is that signals tend to be late. By the time a moving average crossover occurs, a significant portion of the move has already occurred. The Nov-98 buy signal occurred at 1130, about 19% above the Oct-98 low of 950. Late entry and exit points can skew the risk/reward ratio.

Lagging Indicators

As their name implies, lagging indicators follow the price action and are commonly referred to as trend-following indicators. Rarely, if ever, will these indicators lead the price of a security. Trend-following indicators work best when markets or securities develop strong trends. They are designed to get traders in and keep them in as long as the trend is intact. As such, these indicators are not effective in trading or sideways markets. If used in trading markets, trend-following indicators will likely lead to many false signals and whipsaws. Some popular trend-following indicators include moving averages (exponential, simple, weighted, variable) and MACD.

The chart above shows the S&P 500 ($SPX) with the 20-day simple moving average and the 100-day simple moving average. Using a moving average crossover to generate the signals, there were seven signals over the two years covered in the chart. Over these two years, the system would have been enormously profitable. This is due to the strong trends that developed from Oct-97 to Aug-98 and from Nov-98 to Aug-99. However, notice that as soon as the index starts to move sideways in a trading range, the whipsaws begin. The signals in Nov-97 (sell), Aug-99 (sell) and Sept-99 (buy) were reversed in a matter of days. Had these moving averages been longer (50- and 200-day moving averages), there would have been fewer whipsaws. Had these moving average been shorter (10 and 50-day moving average), there would have been more whipsaws, more signals, and earlier signals.

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Benefits and Drawbacks of Leading Indicators

There are clearly many benefits to using leading indicators. Early signaling for entry and exit is the main benefit. Leading indicators generate more signals and allow more opportunities to trade. Early signals can also act to forewarn against a potential strength or weakness. Because they generate more signals, leading indicators are best used in trading markets. These indicators can be used in trending markets, but usually with the major trend, not against it. In a market trending up, the best use is to help identify oversold conditions for buying opportunities. In a market that is trending down, leading indicators can help identify overbought situations for selling opportunities.

With early signals comes the prospect of higher returns and with higher returns comes the reality of greater risk. More signals and earlier signals mean that the chances of false signals and whipsaws increase. False signals will increase the potential for losses. Whipsaws can generate commissions that can eat away profits and test trading stamina.

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RSI (Relative Strength Index ).

Momentum indicators employ various formulas to measure price changes. RSI (a momentum indicator) compares the average price change of the advancing periods with the average change of the declining periods. On the IBM chart, RSI advanced from October to the end of November. During this period, the stock advanced from the upper 60s to the low 80s. When the stock traded sideways in the first half of December, RSI dropped rather sharply (blue lines). This consolidation in the stock was quite normal and actually healthy. From these lofty levels (near 70), flat price action would be expected to cause a a decline in RSI (and momentum). If RSI were trading around 50 and the stock began to trade flat, the indicator would not be expected to decline. The green lines on the chart mark a period of sideways trading in the stock and in RSI. RSI started from a relatively median level, around 50. The subsequent flat price action in the stock also produced relatively flat price action in the indicator and it remains around 50.

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Momentum Oscillators

Many leading indicators come in the form of momentum oscillators. Generally speaking, momentum measures the rate-of-change of a security's price. As the price of a security rises, price momentum increases. The faster the security rises (the greater the period-over-period price change), the larger the increase in momentum. Once this rise begins to slow, momentum will also slow. As a security begins to trade flat, momentum starts to actually decline from previous high levels. However, declining momentum in the face of sideways trading is not always a bearish signal. It simply means that momentum is returning to a more median level.

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Leading Indicators

As their name implies, leading indicators are designed to lead price movements. Most represent a form of price momentum over a fixed look-back period, which is the number of periods used to calculate the indicator. For example, a 20-day Stochastic Oscillator would use the past 20 days of price action (about a month) in its calculation. All prior price action would be ignored. Some of the more popular leading indicators include Commodity Channel Index (CCI), Momentum, Relative Strength Index (RSI), Stochastic Oscillator and Williams' Percent Range.

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Tips for Using Indicators

Indicators indicate. This may sound straightforward, but sometimes traders ignore the price action of a security and focus solely on an indicator. Indicators filter price action with formulas. As such, they are derivatives and not direct reflections of the price action. This should be taken into consideration when applying analysis. Any analysis of an indicator should be taken with the price action in mind. What is the indicator saying about the price action of a security? Is the price action getting stronger? Weaker?

Even though it may be obvious when indicators generate buy and sell signals, the signals should be taken in context with other technical analysis tools. An indicator may flash a buy signal, but if the chart pattern shows a descending triangle with a series of declining peaks, it may be a false signal.

On the Rambus (RMBS) chart, MACD improved from November to March, forming a positive divergence. All the earmarks of a MACD buying opportunity were present, but the stock failed to break above the resistance and exceed its previous reaction high. This non-confirmation from the stock should have served as a warning sign against a long position. For the record, a sell signal occurred when the stock broke support from the descending triangle in March-01.

As always in technical analysis, learning how to read indicators is more of an art than a science. The same indicator may exhibit different behavioral patterns when applied to different stocks. Indicators that work well for IBM might not work the same for Delta Airlines. Through careful study and analysis, expertise with the various indicators will develop over time. As this expertise develops, certain nuances as well as favorite setups will become clear.

There are hundreds of indicators in use today, with new indicators being created every week. Technical analysis software programs come with dozens of indicators built in, and even allow users to create their own. Given the amount of hype that is associated with indicators, choosing an indicator to follow can be a daunting task. Even with the introduction of hundreds of new indicators, only a select few really offer a different perspective and are worthy of attention. Strangely enough, the indicators that usually merit the most attention are those that have been around the longest time and have stood the test of time.

When choosing an indicator to use for analysis, choose carefully and moderately. Attempts to cover more than five indicators are usually futile. It is best to focus on two or three indicators and learn their intricacies inside and out. Try to choose indicators that complement each other, instead of those that move in unison and generate the same signals. For example, it would be redundant to use two indicators that are good for showing overbought and oversold levels, such as Stochastics and RSI. Both of these indicators measure momentum and both have overbought/oversold levels.

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Why Use Indicators?

Indicators serve three broad functions: to alert, to confirm and to predict.

An indicator can act as an alert to study price action a little more closely. If momentum is waning, it may be a signal to watch for a break of support. Or, if there is a large positive divergence building, it may serve as an alert to watch for a resistance breakout.

Indicators can be used to confirm other technical analysis tools. If there is a breakout on the price chart, a corresponding moving average crossover could serve to confirm the breakout. Or, if a stock breaks support, a corresponding low in the On-Balance-Volume (OBV) could serve to confirm the weakness.

Some investors and traders use indicators to predict the direction of future prices.

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What Does a Technical Indicator Offer?

A technical indicator offers a different perspective from which to analyze the price action. Some, such as moving averages, are derived from simple formulas and the mechanics are relatively easy to understand. Others, such as Stochastics, have complex formulas and require more study to fully understand and appreciate. Regardless of the complexity of the formula, technical indicators can provide unique perspective on the strength and direction of the underlying price action.

A simple moving average is an indicator that calculates the average price of a security over a specified number of periods. If a security is exceptionally volatile, then a moving average will help to smooth the data. A moving average filters out random noise and offers a smoother perspective of the price action. Veritas (VRTS) displays a lot of volatility and an analyst may have difficulty discerning a trend. By applying a 10-day simple moving average to the price action, random fluctuations are smoothed to make it easier to identify a trend.




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What Is a Technical Indicator?

A technical indicator is a series of data points that are derived by applying a formula to the price data of a security. Price data includes any combination of the open, high, low or close over a period of time. Some indicators may use only the closing prices, while others incorporate volume and open interest into their formulas. The price data is entered into the formula and a data point is produced.
For example, the average of 3 closing prices is one data point ( (41+43+43) / 3 = 42.33 ). However, one data point does not offer much information and does not an indicator make. A series of data points over a period of time is required to create valid reference points to enable analysis. By creating a time series of data points, a comparison can be made between present and past levels. For analysis purposes, technical indicators are usually shown in a graphical form above or below a security's price chart. Once shown in graphical form, an indicator can then be compared with the corresponding price chart of the security. Sometimes indicators are plotted on top of the price plot for a more direct comparison.

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What is Technical Analysis?

Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time.

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- What Does The ForexGen Margin Require?

Foreign currency online exchange and commodity trading is usually based on 'margin'. The required cash deposit for an online trading execution is usually less than the underlying value of the currency or commodity contract. For example, a TSP might require only $1,000 in the trader's account in order to trade a $100,000 currency position. The $1,000 is referred to as 'margin'. This margin is used to assure reducing the predicted loss risk.

The main purpose of having margin deposit in your forex trading account is creating a sufficient margin as all the purchasing and selling is not real. Margin resembles rational assessment of expected risk in each executed position. So, unstable changeable currencies need a higher margin. For example if a $100,000 currency position is changing by more than 1% (or $1,000) in a 24 hour period, the suitable margin in this case is $1,000.

Also If the currency is highly volatile and regularly changes by $3,000 or more or 3% it would require a suitable margin with $1,000 margin deposit. The trader must be aware that the trading account margin is based on account equity not the account balance. The forex trading account at ForexGen is accurately valued by the equity because it includes the account unrealized profits or losses. ForexGen guarantees that our customers never lose more than their deposited funds.

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- Forex trading During Economic or Geo Political News Events

It any principal economic events and situations, like non-farm payroll, the currency price will change with a great gap immediately after this situation. Fundamentally the price changes just after the economic news and events occur which results a decrease in the Offers at the forex market on the current price.

Banks are able to create their offers principally from where it was before the events release. If someone has a resting order such as a buy stop or sell stop, those stop orders are accessed and turn into market orders and then are executed at the currently existed foreign currency exchange market price. A buy stop or sell stop could easily turn to the market order after the activation and it's filled at the current currency price which doesn't assure a certain order at a specified price. The volatile nature of the forex trading market makes the buy stop or sell stop order differs extensively from the real order price during principal market moves or gaps, during an economic release like non-farm payroll.

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