Thursday, April 5, 2012

The trend lines, resistance and support

Be The First To Comment
The trend lines, resistance and support
In this article we will discuss a widespread, well-known key component of technical analysis. Why do you think technical analysis in particular, elements work so well for financial markets? Why do you think Fibonacci levels are generally followed to the letter? Because thousands and billions of traders and computer programs to trade using these elements. That everyone acts the same way at the same time … />

1. What are the trend lines?
The trend lines are lines that join Lows two or three or more of a graphic or Highs. The price rebounds when they intersect lines.If we speak of a trend line support, it joins two or more depressions on the map.
Whenever the firm price line, it will bounce and go up.A resistance line is just the opposite. He joined the Highs of a graph. In obtaining this line, bouncing and prices go down.A trend line can be straight or diagonal line.
Straight lines are strong resistance or support lines and show a flat market for an accumulation time. Diagonal trend lines suggest that we have a chart positive or negative depending on the trends that this is an upslope or downsloping line.
2. How can we draw trend lines?
Usually, these lines meet the extreme highs or lows on a chart. The price should never cross those lines! If a trend line is crossed, it becomes meaningless and the price goes beyond.
If the price through a trend line of resistance, it will go up a significant amount. After the price reach a new high, it will decrease until it meets the line of resistance that the former has now become a support line. The price will bounce several times on this line until, again, will break it.
It’s the same with trend lines of support.
It is quite easy to apply this information in commerce. A price that bounces off a line of resistance will determine the trader to go short with a stop loss placed above the resistance line. When the price bounce a support line operator will go along and set a stop loss below the line.
If the price break these trend lines, the operator must adjust to the new trend and to launch an operation accordingly, setting a stop loss on the other side of the broken trend line .
Let us study some examples:
1. The graph shows the period between 2000 and 2001 for the U.S. indices. In this case, the trend is one of accumulation, neutral.
After a period of positive trend, the price cuts through the support trend line, the market goes down until a new support line is formed and a new line up resistance. From this point forward, for nearly two years, the evolution of Dow fell between these trend lines. When the price meets the support line there is a reason to buy, and when the meat of the resistance line, sell … clear enough, righ?

2. This is a chart for the U.S. indices between 2002 and 2003. Following a “head and shoulders” pattern, the price breaks the trend line support and forms and the upward path. Trend will now have a new line of support and resistance to show the operator when to buy and when sell. After three bounces the trend line support, the price goes up and form an upward slope trend that will last for over a year.

3. In this example we have a series of minitrends forming a scale. The price goes up and then down. After the trendline support is broken that we should begin selling positions. Following the trend line resistance is broken, we should enter long positions.

Conclusions
1. You can see the usefulness of these trend lines are. Trendlines support and resistance are key elements in the trend analysis and provide useful information regarding the timing and how to make a transaction.
2. Methods of negotiation based solely on the trend lines of analysis can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete system of trade and financial RealIT comlex approach.
3. We often use these trend lines among various other methods analysis we will describe later.
Dharmik team

Forex - EUR / USD: The Euro continues to flow, the key threshold of 1.31 in the crosshairs

Be The First To Comment
Forex - EUR / USD: The Euro continues to flow, the key threshold of 1.31 in the crosshairs
(ProfesseurForex) – After a technical rebound as a result of profit taking that night, the pair has again lost ground to get a new low since March 15. We are 70 pips from the lowest of mid-February. The current is very bearish and the last bracket of 1.30 tested in mid-March might not be long if upward pressure on bond markets of Spain and Italy continue next week.
The pair was moving so down at the opening of London but rebounded within one hour before finally plunging towards 1.31 Dollar. The market then watched the bond of France.
rates up slightly (against a continuous decline these last weeks) were confirmed not only that, the rates are correlated with the rate Italians Spaniards, but also the French rate (to a lesser extent, of course, but the German rates fell today at the same time …). So the market continued to sell to depress the dollar threshold of 1.31.
At noon on steeper decline than expected German industrial production does not impact far beyond the market and the pair bounced up even slightly opening the U.S. market.
At 14:30, the weekly numbers of good jobs in the United States sank the nail and the pair went for a new low on the threshold of 1.3035 dollar. Indeed, unemployment claims have reached a low of four years.
A technical rebound was beginning then, without a significant new high is taken, however.
Finally, note that Christine Lagarde today began its Stations of the Cross in Washington today to increase the capacity of the IMF to complete the firewall European. While the situation seems to deteriorate in the Euro Zone, a gesture of welcome to the IMF will restore confidence in April. The IMF combo-MES could be used faster than you think when rates harden again in Spain, Italy and Portugal.
From a graphical perspective, the fall of the Euro is fast this week and the area of ??1.31 should certainly be tested in the coming days. The Easter weekend may give some respite to the euro tomorrow but do not forget we have some statistics in France and above the monthly unemployment rate in the United States.
The pair evolves around 1.3065 on the forex.
  • Chart Schedule

  

Wednesday, April 4, 2012

Need an expert opinion on Galaxy X EA.

Be The First To Comment
Need an expert opinion on Galaxy X EA.

div I try to add an environmental assessment to my portfolio, so am looking for a .. />
I found this EA Forex Peace Army business EA site examination.

Did anyone buy this EA one?

They said before Marc 26, this is not the performance of EA which means they are serious profit in one week … />

Is this a scam or what?

Need an opinion about this EA … />
href = “http://www.forexpeacearmy.com/metatrader_expert_advisor/galaxy_x/real” Galaxy.X test Metatrader expert advisor by Forex Peace army

myfxbook also found …

href = “http://www.myfxbook.com/members/Hanyul/galaxy-x-real/259628″ Galaxy System X REAL | Myfxbook

Some Thots on Financial Market

Be The First To Comment
Some Thots on Financial Market
We are currently seeing some unusual behaviour in the financial markets. Normally stock market and US dollar have negative correlations. This means that when stock market is falling, US dollar will rise. But now we are seeing US dollar rising and yet stock market remains resilient. So either USD is wrong or stock market is wrong.
My view is that stock market is wrong. That means we think that stock market should be falling soon. We are now sitting on a lot of cash waiting for the next buying opportunity for stocks.
In the area of forex, the strengthening of USDJPY is driven by spike in US treasury yield. The spike is caused by series of good US economic data and prediction that QE3 is no longer needed. We beg to differ. We believe that US economic is still long term weak but short term strong. Hence we think that US treasury yield will fall and USDJPY will fall as well, resulting in recovery of Japanese yen. We are still holding onto our sell US dollar and buy Japanese yen trade.
We are the few market participants who are bullish on the European situation. History tells us that most or all credit crisis will eventually be resolved; It is a matter of time and the amount of money pumped into the troubled economy. Few weeks ago, IMF has agreed to pump in money into Europe, this increase our confidence that we are near to the end of this crisis. To profit from this view, we have long Euro and sell Sterling Pound.
We have also buy Swiss Franc and sell US dollar. So why are we buying Swiss Franc? Swiss Franc and Euro are pegged. So if Euro recovers, Swiss Franc will recover as well. In addition, Switzerland is in much better shape than the members of Euro zone. This means that if the EUR/CHF peg is removed, it will create double booster to the Swiss Franc.
China has announced some weak economic data. This has helped to push AUD and NZD lower. To us this is good news rather than bad news, because this gives us good opportunity to buy AUD and NZD at cheaper price. When the buying opportunity comes, we will send email to inform our learn forex students. We think that market has underestimated the economic of China. We are optimistic on China in the long term.
In the area of stock market, as mentioned above, we think that market has temporary peaked. Last year we are most bullish on US market, so we had been accumulating US stocks since December. We had sold most of our US stocks already. This year we are most bullish on Hong Kong market. So if there is a correction, we will be buying Hong Kong stocks and Hang Seng ETF. Reason is because China government has already started to reduce Reserve Requirement Ratio (RRR), this will help to support China economy. Hong Kong stocks are relatively cheaper compared to US. When the buying opportunity comes, we will send emails to our learn investing students.
We are still holding onto a China lottery stock. We believe that China has a growing affluent population who are interested to try their luck in lottery. This stock  remains undiscovered by the investment community and it offers 50% upside potential.
Talk to you again.

Update Digest for Week of 2012-03-10

Be The First To Comment
Update Digest for Week of 2012-03-10
Updates from the past week shared via Facebook and Twitter:

How to trade binary options on Euronext Paris?

Be The First To Comment
How to trade binary options on Euronext Paris?
For a French trading binary options, the session of the Paris Bourse is ideal for taking a position during the day on the shares or the Paris index CAC 40. The Paris Stock Exchange lists nearly 1,500 companies listed, but of course, all these companies are not available in the market for binary options. Now an integral part of the complex NYSE Euronext, Bourse de Paris enjoys a strategic position for many European investors.
At the Paris Bourse, there are plenty of clues as the SBF 120 index, the CAC20 or the IT CAC but traders binary options can generally only invest in the CAC 40, which lists the forty most important quotes in Paris, since the major trading platforms that exist in French. To position themselves in the CAC 40, must especially pay attention to global economy and what is called appetite / risk aversion of investors

Monday, April 2, 2012

Forex Robots Liquidity

Be The First To Comment
Forex Robots & Liquidity
The Forex market trades over $3 trillion every day and is open 24 hours a day and 5 days a week. Large international banks and hedge funds are speculating in the Forex market every day. The market trades from  20:15 UTC on Sunday until 22:00 UTC on Friday. Of course, trading volume is greatly enhanced because of the tremendous leverage allowed in the Forex market. Trading in London accounts for more than a third of the volume.
You would think that liquidity would not be a consideration with a Forex robot in the largest and most liquid market in the world.
Some Forex robots' default settings limit trading to a few hours when trading volume and volatility is lower. The reason for this setting is to minimize false signals generated from an over volatile trading environment.
Take the very popular Forex robot or EA, Fapturbo. I understand they have sold over 70,000 copies since they launched a couple of years ago. If just half of the ones sold are operating, you have a substantial number of traders engaged in a short, low volume, low volatility period in the market. That could negatively impact liquidity and results.
If you are evaluating Forex robots, most will give you 60 days to put it through its paces. You should at least evaluate Fapturbo as it has had a decent track record, but be mindful of the trading window that they recommend.

Forex - EUR / USD: The euro falters after a bullish start to the day, the dollar investor preference harvest this afternoon

Be The First To Comment
Forex - EUR / USD: The euro falters after a bullish start to the day, the dollar investor preference harvest this afternoon
official Chinese manufacturing PMI (as opposed to the PMI calculated by HSBC) has in fact increased to 51.3 points in March, against 51 the previous month, and the highest for a year.
German manufacturing PMI has also been encouraging, with 48.4 points for the month of March, against 48.1 consensus, while the euro area remained stable at 47 , 7 points, as expected.
reassuring comments for the U.S. economy from Richard Fisher , president of the Dallas Fed.
U.S. ISM manufacturing of March turned out better than expected, which probably increased the appetite of traders for the dollar, although the published simultaneously on the other hand proved very disappointing, with an unexpected fall.

Celebrating 6 Years of Trading Essentials

Be The First To Comment
Celebrating 6 Years of Trading Essentials
I didn’t post this yesterday for fear of running into April Fools issues. :-)
This month of April marks the 6th anniversary of the release of The Essentials of Trading, the book from which this blog takes its name. I’ve got a few things lined up to celebrate that, the first of which is a drawing open to my newsletter subscribers. It’s a drawing that I will be holding at the end of the month to give away three prizes:
First Prize: A new 16GB iPad 3 ($ 579 value)
Second Prize: 4 hours of 1-on-1 coaching with me ($ 400 value)
Third Prize: 2 hours of 1-on-1 coaching ($ 200 value)
(I’m open to substitutions if the winner wishes to pick something else of comparable value)
The only requirement for eligibility is that you be a subscriber to the newsletter on April 30th. Signing up is quick and easy. Just go to www.theessentialsoftrading.com/nl
As an added incentive to sign up, there is also a referral feature subscribers can take part in to increase their chances to win a prize. Details will be sent once you’ve signed-up.
Let me know if you have any questions.
PS: An archive of my past weekly newsletters can be found at here.

Forex Robots Liquidity

Be The First To Comment
Forex Robots & Liquidity
The Forex market trades over $3 trillion every day and is open 24 hours a day and 5 days a week. Large international banks and hedge funds are speculating in the Forex market every day. The market trades from  20:15 UTC on Sunday until 22:00 UTC on Friday. Of course, trading volume is greatly enhanced because of the tremendous leverage allowed in the Forex market. Trading in London accounts for more than a third of the volume.
You would think that liquidity would not be a consideration with a Forex robot in the largest and most liquid market in the world.
Some Forex robots' default settings limit trading to a few hours when trading volume and volatility is lower. The reason for this setting is to minimize false signals generated from an over volatile trading environment.
Take the very popular Forex robot or EA, Fapturbo. I understand they have sold over 70,000 copies since they launched a couple of years ago. If just half of the ones sold are operating, you have a substantial number of traders engaged in a short, low volume, low volatility period in the market. That could negatively impact liquidity and results.
If you are evaluating Forex robots, most will give you 60 days to put it through its paces. You should at least evaluate Fapturbo as it has had a decent track record, but be mindful of the trading window that they recommend.

Forex Software — What You Need to Trade Forex

Be The First To Comment
Forex Software — What You Need to Trade Forex
Forex SoftwareForex software is essential if you are trading in the forex currency market. The days of calling up your broker on the telephone are long gone. Everything is done online now, over the internet.
So to begin, you will need a computer of course. Most modern computers are fine (say, less than five years old) provided you do not have them so packed with other programs that they run very slow. For some software packages you will need Windows, or a Windows emulator if you have a Mac.
You will also need a broadband connection. Dialup will not do for forex trading. It is simply not fast enough. A slow dialup connection will result in missed trades and slipped prices due to the time delays, and sometimes you may not be able to trade at all. It would be very frustrating to try to trade on a dialup connection.
The forex software program that you actually use will be provided by your broker. This is the interface between you and the forex market via your broker. It will allow you to make your own trades based on the prices that you see on the screen. They usually give you a free demo account so that you can try everything out before you start risking your money on real trading. Most forex broker software platforms also provide free charts so that you can analyze price movements and identify trends to help you make profitable trades. The most popular is called Metatrader.
Broker forex software platforms may be either web based or desktop based. If they are web based, you log in and control your account from the broker's hosted platform. If they are desktop based, you download the software to your own computer and run it from there.
Some web based platforms have downloadable elements but the deciding question is whether the software will still run if you switch off your own computer. If it is web based, you can set up a trade or a stop loss, then switch off your computer and the trade will still be triggered. If the software is on your own computer, you have to leave it switched on and connected so that it can make the trade at the appropriate time.
Some people buy a new computer that they use only for their forex trading. There are several reasons why you might want to do this even if your present computer is fine. One is so that you can have a dedicated computer that you can leave on all the time. You do not have to share it with other family members and risk having someone else disconnect it when they are finished.
The other major reason is that you might want a backup. Computers are subject to crashes and registry errors that can take several days to fix. They can also be attacked by viruses and malware. You might want a second computer running a backup copy of your foreign exchange software so that you can still trade if your main machine is out of action.
To avoid problems with a personal computer, many experienced traders use a virtual server. Forex Hoster for example supports MetaTrader on Mac OSX, Windows and iPhone and they install the software. This way you can trade from anywhere in the world that you have an Internet connection.

DOW and EUR / USD

Be The First To Comment
DOW and EUR / USD
In this article we will discuss the correlation between DOW and EUR / USD. We’ll see if this correlation exists. We will try to find it is true that the two markets share the same currency and people. We find that these are all false. Some examples of graphs help us understand why.
We’ll start first with the type of relationship between Dow and the EUR / USD (directly or indirectly proportional) and with the degree of correlation. We’ll see how to get a valid strategy for both Dow and the EUR / USD or any other currency pair. We will see that it suffices to analyze a graph and then find out about the other tables (ie, what price should have any other financial product at a time to time). At the end we will of course draw conclusions.
1. Is there a correlation between DOW and EUR / USD?
look at the graphs below:


The table is fir for Dow in January-August 2007 . The second is for EUR / USD during the same period. Are they correlated?
It does not seem to be a correlation when looking at the details. The degree of correlation varies from one time to another. When looking at the bigger picture, there seems to be a correlation, right?
First we have a large increase until May, then a decrease in the short and high in July and a steep slope downward in August This is the same for both cards.
observe an earlier period in the past: />


This is the period between January and July 2003. Again we can not find a valid link between short time intervals, but when we look at the monthly trend, we can! After the month of January when the cards are different, we see a neutral trend in February, is low in March, an upward trend up in June and a slight decrease in July. It is the very image of the two large tables.
Correlation or not?
2. What kind of correlation there?
The correlation is directly proportional. Whenever Dow raises EUR / USD is developing well. Every time Dow has a period of down, EUR / USD goes down too.
Graphs long range of time are very clear, but they do not offer sufficient support. Are most appropriate maps to shorter periods. The intraday charts are the best.
study period between 2007 and 2008 with the help of daily charts! When the trend is neutral, you will find differences, but when the trend is strong and the money moves from one financial product to another within seconds, you find the good correlation.
3. Is there enough to analyze the evolution of a single financial indicator for all to know?
We think so! The logic is simple. When Dow was up, it means that the U.S. economy is going well. If the economy is growing, this means that the dollar should be stronger. If the currency goes up, then EUR / USD will fall. That is why the intraday charts show a proportionality indirect. Dow and EUR / USD is in direct proportion to the middle and long covers
When, in 2007, the Fed began cutting the benchmark interest, USD became the currency trading report. This point of the front of the correlation is directly proportional to time become also includes.
4. Conclusions:
If an intraday analysis of the Dow and the S & P 500 shows that these indicators will go down, we can assume that the EUR / USD parity will also decrease. Having this information and the information provided by other elements of technical analysis, you find the right signals to enter and exit the market and closing the result.


Dharmik team.

Sunday, April 1, 2012

Update Digest for Week of 2012-03-17

Be The First To Comment
Update Digest for Week of 2012-03-17
Updates from the past week shared via Facebook and Twitter:

Candlestick Patterns — A Technical Analysis Tool

Be The First To Comment
Candlestick Patterns — A Technical Analysis Tool
Candlestick Patterns
Watching candlestick patterns is as old a trading technique as trading itself. According to Wikipedia, a candlestick chart is a style of bar-chart used primarily to describe price movements of a security, derivative, or currency over time.
It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity and currency price patterns. They appear superficially similar to error bars, but are unrelated.
But can you make money studying candlestick patterns? How do you know which trading products work and which ones don't? Are automated systems better than manual systems?
The answer is yes AND no. Most systems will work some of the time and not work some of the time. Professional traders know that the best way to consistently conquer the market is to diversify — diversify your risk as well as your systems.
Professional trading coaches will advise their students to think in terms of winning half of their trades. The only way, then, to not just break even is to win more often or win more when you are right. So to avoid having to win more trades, you need to pay attention to your risk reward ratio and shoot for a reward that is twice what you are risking. In other words win the two dollars when you are right and only lose one dollar when you are wrong.
If you stick with just one trading technique or just one automated system, you could end up breaking even on the trades and actually losing money due to trading costs and margin interest.
Using candlestick patterns in your technical analysis is a tool you should become familiar with. To get up to speed on this valuable timing technique, pick up the Candlestick Crash Course.
  • You'll improve your chances of winning by learning:
  • Intro – Be prepared for the trading day with a solid game plan
  • Technical Analysis – What does and does not work
  • Candlestick Charts – Get the basics
  • Types Of Candlestick – Your most effective patterns
  • Entry Signals – What signals get you in at the the most effective time
  • Continuation Patterns – The trend is your friend
  • Reversal Patterns – What does it mean to your bottom line
  • Exit Signals – When to get out
  • Filtering – Avoid traps and false signals
  • Time Frames – Which ones work best and when
If you are not already using candlestick patterns to diversify your trading systems,  to learn what professional traders know. Beginners and pros alike will benefit from the education by real traders.
 

© 2012 Forex Tipo De Cambio - Designed by Forex Blogspot | ToS | Privacy Policy | Sitemap

About Us | Contact Us | Write For Us