How to spot the Hanging Man and the Hammer? These candlestick patterns are easy to spot on the chart. When you spot a very small candle body accompanied by a pretty long wick on the bottom, it is a Hanging Man if it appears at the top of the uptrend and it is a Hammer if it appears at the bottom of the downtrend.

In less than ideal cases, you might also find a small wick at the top of the candlestick. When the Hanging Man or the Hammer appears, you need to look for the confirmation on the next day.

Now suppose, you think that you have spotted the Hanging Man in an uptrend. Wait for the confirmation the next day with the opening price. If the opening price on the next day is less than the previous day’s close, you have a true Hanging Man. If not, then that was not a true Hanging Man.

A Hammer should have a very small candle body with a long wick at the bottom. Similarly suppose, you think that you have correctly spotted the Hammer in a downtrend. You should confirm this with the opening price on the next day. If the opening price is higher than the closing price the previous day, you have a true Hammer. If the opening price is not higher than the closing price the last day, it is not a true Hammer!

Whenever, you trade candlestick patterns, first spot them correctly than wait for the confirmation on the following day. The best chart for these candlestick patterns is the daily chart. Once, you get the confirmation, trade these patterns. They can be highly profitable. But in case, you don’t get the confirmation the next day with the price action, simply ignore the pattern as not true.

Spinning Top is just like the Hanging Man and the Hammer. Spinning Top is a signal that the battle between the bulls and the bears ended in a draw. It will start next day again with ony side giving in. What this means is that an explosive move in the price action can take place the following day.

How to identify a SPINNING TOP? This pattern appears very frequently in the daily charts and can be highly profitable if spotted correctly. A Spinning Top has a very small candle body in the middle with two equal wicks on the top and the bottom.

Mr. Ahmad Hassam has done Masters from Harvard University. Get this 49 page Quantum Swing Trading Report FREE. Master Candlestick Charting with this 82 page PDF FREE Candlestick Guide!

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Forex trading is considered to be a recession proof business as there is neither a bull market nor a bear market in currencies. Currency prices are always quoted relative to one anther and currencies are traded in pairs. What this means is that if one currency goes up the other goes down. It is being said that many millionaires will be made in the currency markets. Forex trading is the hottest market right now after the recent stock market crash. Many small investors lost their lifetime saving in the stock market crash of 2008. Investors have turned towards forex in droves.

Many people don’t know this that you can trade gold on forex too. Many forex broker platforms that you use to trade forex, allow trading of gold and silver against the US Dollar (USD) from the same platform. Both these precious metals have high demand in the industrial sector and as the global economy recovers from the recession, the prices of gold and silver are expected to skyrockets as industrial production picks up and consumers start buying again. When you trade a currency pair, you go long on one currency and short on the other. In other words, you simply buy one and sell the other.

There are many currency pairs that you can trade like the GBPUSD, EURUSD, UADUSD, NZDUSD, JPYUSD. Spot trading gold on forex is almost similar with gold replacing one currency in the pair and the other currency is always USD. In case of spot gold trading on forex, you trade one ounce of gold in the spot market againt US Dollar (USD). So just like when you trade a currency pair, when you trade gold on forex, you are taking either a long or a short position in gold against USD.

So, in spot gold trading on forex, you are trading one troy ounce of gold against USD. Interestingly the symbol for this is also XAUUSD with XAU representing one ounce of gold. Now, suppoe the price quote in the spot market is 1100 XAUUSD. What this means is that one troy ounce of gold in the spot market right now is equal to $1,100 USD.

Just like anyother financial market, the price quote in the gold spot market has got a bid/ask spread. So if the price quote is 1110/1115, it means that you can sell one troy ounce of gold in the spot market for $1,110 and buy one troy ounce of gold at $1,115 meaning you will have to pay a spread of $5 per troy ounce when trading in gold in the spot market.Spot gold trading on forex is a fast moving market and the spread keeps on changing throughout the day.

Spot gold market is a fast moving market and the price quotes keep on changing. So, suppose just after 60 minutes, you find the quote to be 1120/1126. You see a profit and decide to get out selling at $11,200 making a profit of $30. Now if you had used leverage, you would have needed a much lower initial investment to make a profit of $30 in just 60 minutes. Now a standard lot in currency trading is equal to $100,000. But in case of gold on forex, a standard lot is equal to 10 troy ounces of gold. So, if you find the price quote to be 1112/1117 and you are interested in going long. In that case you will have to buy 1 lot of gold that is equal to $11,170.

Gold is also know as anti dollar. What this means is that their is an inverse correlation between gold and USD. This inverse relationship can help you hedge your positions in other currency pairs.

Mr. Ahmad Hassam has done Masters from Harvard University. Get this Forex Swing Trading Forex-4 Pack Training Kit FREE! Download this 1 Minute Forex Trading System FREE.

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Now, many sophisticated investors are also turning towars forex as well. If you have some experience of trading stocks or bonds than you can esily switch to forex trading as the fundamental analysis and the technical analysis basics are almost similar.

Recent advances in technology means price transparency and a better trading experience with the use of stop loss and trailing stops. What this means is that traders can execute their trading plans using a combination of these orders to better manage their currency risk.

Managed forex account also make forex trading easy for many people who don’t have the time to learn forex trading. These managed forex accounts give them the opportunity to profit from the forex market without having to trade it. These accounts are managed by professional traders on behalf of their clients who have full access and control over their capital in the account.

Over the last few years, forex robot developers have been able to develop a number of good robots that have been giving consistent performance. In the last decade, algorithmic trading systems became more and more sophisticated. These automated trading systems are also know as Expert advisors or Forex Robots.

Recently the first Forex Robot World Cup (FRWC) was held. It had a cash prize of $150,000. The winner robot developer was a trader from Croatia who won the $100,000 cash prize when his robot made something like 150% in one month in the live trading competition.

Transparency and the stringent criteria for the competition is going to develop more trust in the use of these robots in the future. The second round of FRWC will start in the next few months and is expected to be even bigger than the first one. The increasing sophistication of these forex robots means that more and more people can trade forex on autopilot from the comfort of their homes now.

What this all means is the future of retail forex trading is exciting. These robots can be used by anyone. Even those who have never traded forex before can use these forex robots to make money from the comfort of their homes.

Mr. Ahmad Hassam has done Masters from Harvard University. Read this shocking 40 page FRWC Brutal Truth FREE Report on forex robots. Download this 1 Minute Forex Trading System FREE that makes money anytime instantly.