THE AUTHOR OF THIS BLOG WILL LIKE YOU TO KNOW THAT, THE INFORMATION IN THIS BLOG IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION IS NOT TO BE USED AS PROFESSIONAL ADVICE. THE AUTHOR OF THIS BLOG DOES NOT CLAIM TO BE A PROFESSIONAL FINANCIAL OR FOREX TRADING ANALYST. THIS BLOG IS JUST A COMPILATION OF THE AUTHORS IDEAS.
PLEASE! BEFORE YOU USE THE INFORMATION IN THIS BLOG, YOU SHOULD DO YOUR OWN RESEARCH TO CONFIRM THE AUTHENTICITY, AS THE AUTHOR WILL NOT BE HELD ACCOUNTABLE FOR ANY LOSS INCURRED, AS A RESULT OF NOT RESEARCHING THE INFORMATION.
THANK YOU.
Monday, 25 February 2013
Wednesday, 13 February 2013
Technical Analysis Oscillator Indicators
Oscillator Indicators
Oscillators are indicators that move between two points, between a "buy and a sell" signal. Oscillators indicate when a possible reversal may occur in a trend ( Trend is the total direction of price movement).
there are many oscillators, but I will only mention 5 of them.
1. Stochastic
2. Relative Strength Index (RSI)
3.Parabolic SAR
4. Williams percent Range (William % R)
5. Moving Average Convergence Divergence
Stochastic:
Stochastic show strength or weakness in the Forex market, it's also indicates when the market is overbought or oversold. it has 2 lines, the first line is a slow line which is known as % k. this line compares the latest closing price to the recent market trading range. the second line is a fast line and its known as % D. this line is a signal line calculated by smoothing out the slow % K line.
Relative Strength Index
This oscillator is like the stochastic indicator. it shows overbought and oversold situations in the market. its shows strength and weaknesses it has 2 lines, a fast line and a slow line and it is scaled from 0 to 100. when both lines are below the 20 scale the market is oversold, when both lines are above the 80 scale the market is overbought.
Parabolic SAR
This indicator was designed by J. Welles Wilder Jr. the name parabolic SAR, says how it works. Parabolic or Parabola is a curve and SAR is an acronym for Stop And Reverse.
(Parabolic SAR can be used to trade the stock market). on a chart it is shown as points that indicate reversal in price movement, if the point are above the price it's a bearish signal or a sell signal and if the points are below the price it's a bullish signal or a buy signal.
Parabolic SAR works well when the market is trending.
William Percent Range ( William % R)
The William % R indicator is similar to Stochastic and Relative Strength Index because it identifies overbought and oversold situations in the market.
Moving Average Convergence Divergence
Moving Average Convergence Divergence is used to determine direction, strength and force of a new trend in the market movement.
Moving Average is made of three numbers or lines. the first, is a slow line, the second is a fast line and the third is a histogram that calculates the moving average of the difference between the fast and slow lines.
thank you for reading
Oscillators are indicators that move between two points, between a "buy and a sell" signal. Oscillators indicate when a possible reversal may occur in a trend ( Trend is the total direction of price movement).
there are many oscillators, but I will only mention 5 of them.
1. Stochastic
2. Relative Strength Index (RSI)
3.Parabolic SAR
4. Williams percent Range (William % R)
5. Moving Average Convergence Divergence
Stochastic:
Stochastic show strength or weakness in the Forex market, it's also indicates when the market is overbought or oversold. it has 2 lines, the first line is a slow line which is known as % k. this line compares the latest closing price to the recent market trading range. the second line is a fast line and its known as % D. this line is a signal line calculated by smoothing out the slow % K line.
Relative Strength Index
This oscillator is like the stochastic indicator. it shows overbought and oversold situations in the market. its shows strength and weaknesses it has 2 lines, a fast line and a slow line and it is scaled from 0 to 100. when both lines are below the 20 scale the market is oversold, when both lines are above the 80 scale the market is overbought.
Parabolic SAR
This indicator was designed by J. Welles Wilder Jr. the name parabolic SAR, says how it works. Parabolic or Parabola is a curve and SAR is an acronym for Stop And Reverse.
(Parabolic SAR can be used to trade the stock market). on a chart it is shown as points that indicate reversal in price movement, if the point are above the price it's a bearish signal or a sell signal and if the points are below the price it's a bullish signal or a buy signal.
Parabolic SAR works well when the market is trending.
William Percent Range ( William % R)
The William % R indicator is similar to Stochastic and Relative Strength Index because it identifies overbought and oversold situations in the market.
Moving Average Convergence Divergence
Moving Average Convergence Divergence is used to determine direction, strength and force of a new trend in the market movement.
Moving Average is made of three numbers or lines. the first, is a slow line, the second is a fast line and the third is a histogram that calculates the moving average of the difference between the fast and slow lines.
thank you for reading
Tuesday, 5 February 2013
HISTORY OF THE FOREX MARKET- ARTICLE ONE
The forex market ( forex is short for foreign exchange) had a very unique history. When there was no highly organized financial institution, no big business or no internationally accepted currency. the only kind of market was a simple system know as trade by barter. this system of exchange involves actual goods without any money like object.
This simple yet, primitive means of exchange was effective in a local area but, had many disadvantages. Therefor, a better means of exchange was needed, one without any disadvantage.
People in ancient times used many valuable things to exchange for goods they needed this is called commodity money. The Encarta encyclopedia states " The value of commodity money is about equal to the value of the material contained in it. The principal material used for this type of money have been gold, silver and copper. In ancient times, various articles made of this metals, as well as iron and bronze, were used as money, while among primitive societies commodities such as shells, beads, elephant tusks, furs, skins and livestock served as mediums of exchange".
Gold and silver and bronze where used to make coins as early as the 6th century BC in places like Greece, Asia, and Europe and obviously they where used as a means of exchange.
Some time in history countries decided to convert the value of their precious Gold, Silver and Bronz to paper currency that had the same value as Gold, Silver and Bronz.
To be continued.
This simple yet, primitive means of exchange was effective in a local area but, had many disadvantages. Therefor, a better means of exchange was needed, one without any disadvantage.
People in ancient times used many valuable things to exchange for goods they needed this is called commodity money. The Encarta encyclopedia states " The value of commodity money is about equal to the value of the material contained in it. The principal material used for this type of money have been gold, silver and copper. In ancient times, various articles made of this metals, as well as iron and bronze, were used as money, while among primitive societies commodities such as shells, beads, elephant tusks, furs, skins and livestock served as mediums of exchange".
Gold and silver and bronze where used to make coins as early as the 6th century BC in places like Greece, Asia, and Europe and obviously they where used as a means of exchange.
THE INVENTION OF PAPER CURRENCY
Some time in history countries decided to convert the value of their precious Gold, Silver and Bronz to paper currency that had the same value as Gold, Silver and Bronz.
To be continued.
Saturday, 2 February 2013
Success Tips For Beginners
This tips are what I use and still use and I would like to share them with others.
1. Find good Mentors:
There is nothing new under the sun as some people say, mentors know the ins and out of the market and I believe that, if you can find a good mentor who is willing to teach you, you will excel quicker than others who don't have mentors. Someone once told me that, if you have the chance of discussing with a wise man for an hour, you will learn more than reading a whole book. i agree with that statement. Good mentors have a wealth of knowledge and experience to share with you, and i believe that they are very helpful.
2. The right continuous Education:
If you are learning to trade the market newly, it's important you learn all you can about the market. Continuous education is the only way to keep up with the dynamic nature of the market. this education you can get by reading forex books, listening to audio's and attending classes etc.
3. Continuous Practice:
Practice makes perfect. That statement carries new meaning as you trade. Apart from the required 3-6 months of demo trading, you also need to practice regularly on a demo account to be comfortable with every aspect of trading. As you continue to practice the better and more confident you will be when you trade your live account with your hard earn money.
4. Well Capitalized Account
Just like in any business you need capital and in your trading business you also need enough capital. in fact an inadequately capitalized trading account is one major reason why many new traders quite in their first 6 months. even if you don't have a lot of money to trade the above tips can help you build your account. but, know that you need a lot of cash to trade effectively.
5. Patience
The market is not a get rich quick scheme as many people would like you to believe, rather you need to be patient to really be profitable. impatience is not for real traders. if you are new to the market just know that your long term profitability depends on how patient you are in each of your trades, because you may meet trading situation when the market seems like it's going against you and you may prematurely exist a trade for fear of losing your money, when if you would have waited a little, it would have been a winning trade. patience is an important characteristic of a trader.
6. Discipline
Being a discipline person is not easy let alone being a discipline trader. I still have problems in this area. being a discipline trader is very important, because it could make you a very profitable trader. if you are new to trading you will need a trading system to be effective and, this trading system has rules you new to follow strictly to use it properly. if you are not discipline enough to follow your trading system, I believe it will be difficult to make any money. discipline is an important characteristic of a trader.
7. Self-control:
self-control is also very important, especially control over your emotions while you trade. if you can control your emotions and enter into trades with sound logic I believe you will do well.
thank you for reading
1. Find good Mentors:
There is nothing new under the sun as some people say, mentors know the ins and out of the market and I believe that, if you can find a good mentor who is willing to teach you, you will excel quicker than others who don't have mentors. Someone once told me that, if you have the chance of discussing with a wise man for an hour, you will learn more than reading a whole book. i agree with that statement. Good mentors have a wealth of knowledge and experience to share with you, and i believe that they are very helpful.
2. The right continuous Education:
If you are learning to trade the market newly, it's important you learn all you can about the market. Continuous education is the only way to keep up with the dynamic nature of the market. this education you can get by reading forex books, listening to audio's and attending classes etc.
3. Continuous Practice:
Practice makes perfect. That statement carries new meaning as you trade. Apart from the required 3-6 months of demo trading, you also need to practice regularly on a demo account to be comfortable with every aspect of trading. As you continue to practice the better and more confident you will be when you trade your live account with your hard earn money.
4. Well Capitalized Account
Just like in any business you need capital and in your trading business you also need enough capital. in fact an inadequately capitalized trading account is one major reason why many new traders quite in their first 6 months. even if you don't have a lot of money to trade the above tips can help you build your account. but, know that you need a lot of cash to trade effectively.
5. Patience
The market is not a get rich quick scheme as many people would like you to believe, rather you need to be patient to really be profitable. impatience is not for real traders. if you are new to the market just know that your long term profitability depends on how patient you are in each of your trades, because you may meet trading situation when the market seems like it's going against you and you may prematurely exist a trade for fear of losing your money, when if you would have waited a little, it would have been a winning trade. patience is an important characteristic of a trader.
6. Discipline
Being a discipline person is not easy let alone being a discipline trader. I still have problems in this area. being a discipline trader is very important, because it could make you a very profitable trader. if you are new to trading you will need a trading system to be effective and, this trading system has rules you new to follow strictly to use it properly. if you are not discipline enough to follow your trading system, I believe it will be difficult to make any money. discipline is an important characteristic of a trader.
7. Self-control:
self-control is also very important, especially control over your emotions while you trade. if you can control your emotions and enter into trades with sound logic I believe you will do well.
thank you for reading
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