Technical Analysis: How to Read the Price Action

Regardless of the school of analysis to which we belong, most of us will face some problems with the argument that price action is all that matters in the trade issue, in the end, the only determinant of our profits and losses is the same price. We may have some rational and well-thought-out rationales on which to base our forex analysis and strategy, but if we can not confirm it through price action, the sad fact is that it will become worthless.

Technical analysis takes this concept a step further, and claims that all that matters in the matter of trade is the price movement itself. In other words, traders should ignore news, statistics and data in parallel with economic and political developments and only focus their attention on price action. This position is based on the belief that the price movement of knowledgeable traders who have a profit appetite reverses all 1K Daily Profit information available to the public at any time through the price movement, so it would be futile to try to gain advantage in the market by staying informed Permanent with all data. It will not only be impossible, analysts say, but it will be useless, because the price movement includes all available information in order to unload the best brains in the market. Technical analysis prompts us to study the markets and ignore anything else and thus focus our attention on the only important information in this market is the price.

1K Daily Profit
1K Daily Profit

Critics of the logic of technical analysis believe that while the price does not represent all buyers and sellers in the market, it also does not reflect the consensus and therefore can not be a true crossing for the views of the general market. In other words, nothing can be described as market opinion. In addition, they argue that although price action in the short term is difficult to predict, however, long-term economic events establish clear trends that can be foreseen and interpreted through fundamental analysis. Technical analysts defend their school by saying that basic analysis is difficult and there is nothing as reliable as the technical studies and it takes a lot of time.

Technical analysis tools are applied as shown on the chart. 1K Daily Profit Indicators are used to evaluate any price models to generate sell or buy signals while price models are interpreted to determine the underlying momentum. Technical analysis does not claim to provide error-free results or answer all questions in the minds of traders, but it helps to provide alternative scenarios that enable them to identify the deal with higher profitability potential. The technical trader must have a mind to deal with the possibilities and must train himself to accept the idea of ​​bearing some losses when it becomes unavoidable.

Let us conclude from this brief study that in a highly chaotic Forex environment, capital management and emotion control rules are the most important, regardless of the strategy and quality of analysis you use. To learn forex, we will need to maintain our capital and capital management is how you will know how to maintain it. With persistence and commitment it will not be difficult to succeed in the Forex market, but without these two factors it will not be possible to achieve luxury dreams or swim in lakes of gold or even silver.

Why Kijun Sen Is Superior to the Moving Average

The Ishimoku Kinkoz Huo FX Index consists of five lines. In this article, we will focus on Kijun Sen (red line), and how to compare it with the most famous moving average line (violet line).

Let’s start with the equation, considering that Kijun Sen measures the 26 past periods, so we can compare it with the Muffin 26 period:

Kijun Sen = (highest peak + lowest floor) / 2 for the previous 26 period
The Muffing line 26 period is equal to the average closing price of the previous 26 period

By taking average price caps, Kijun Sen reflects the balance, or 50% of the price correction, taking into account fluctuations. Kijun Sen flat horizontal line means that the price caps have not changed, and that the market is undergoing consolidation.

Prices tend to tend towards the equilibrium line, as indicated by the blue circles in the chart above. Once a strong trend is identified, corrections to Kijun Sen act as more conservative entry points. On the other hand, the Muffing line 26 does not provide such a view as the fluctuations and balance are not taken into consideration. Moving usually moves continuously and does not show any sideways.

Since Kijun Sen reflects price equilibrium, it changes only when price caps change, unlike traditional muffin lines. This feature allows Kijun Sen to better monitor price movements, which is why traders typically prefer to rely on Kijun Sen to determine stop loss positions as well. Kijun Sen is part of the Ishimoku Kinko-ho index that you can find on the MetaTrader 4 platform.

Explosive Profits: 7 Reasons to Trade Forex

There are a large number of profit opportunities around us which we have already tried a number of such as the marketing of intellectual property rights and the development of Internet sites and housing insurance and multi-level marketing and other.

We have come to a few conclusions with the help of a number of well-known coaches.

Usually people who do not have the time to enjoy it, while those who have the time usually do not have the money they want. You do not have to sacrifice your lifestyle just to earn above average income. If you focus on some useful methods for several months, you can turn this dream into reality and you can make money with Hydra APP and save time in order to do whatever you want.

To earn money for your living, you must exchange it by offering a good or service which in turn should be sold frequently, otherwise your income will stop abruptly unless your goods or services are frequently requested.

Money is a means of exchange. There are no magical formulas to own. You should always exchange something of value for it.

So what if you have access to thousands of customers who already have the intention and ability to buy from you whenever you want? Now it’s great to avoid obstacles such as money-raising problems (I’ve recently had to delay one of my payments on the Internet), making you able to satisfy customers who are hard to please (all of us know how to be), the competition that steals your business To give in an interview his equivalent value and so on.

All these things are possible. You can also trade from anywhere to take your laptop and look for a connection to the Internet and then go away wherever you want.

Another advantage is that you do not need much experience to get started. Getting a traditional job requires a lot of experience and a strong CV and you have the right communication. In Forex the appropriate training course will allow you to start immediately.

Forex Market
Forex Market

Here are seven other reasons for trading

1. Never close. The Forex market is open 24/7 around the world. Hydra APP System Trading orders can be opened from 7 am New Zealand time and closed at 5 pm New York time on Friday. During this period you can enter and exit the market whenever you want. It represents a continuous electronic exchange market for foreign exchange. This is great because you can trade wherever you have free time.

2. Crane. Lotte Standard worth one hundred thousand dollars can be traded using a capital not exceeding one thousand dollars. This can be achieved because of the ease of buying and selling offered by some brokers who offer leverage of up to 200 times the capital. In the sense that using a hundred dollars you can control 200 thousand units of currency. This is the best picture of capital use, so mortgage lenders in real estate do not approach this ideal.

3. Expect results accurately. Currency rates usually repeat themselves according to predictable price cycles so you can always see the direction of the trend. “Technical Analysis” will help you see these trends and then make a profit from them.

4. Low transaction cost. In other words, your mistakes will not cost you a fortune in the Forex market. Good brokers will not get you commissions to trade or open an account even if a small account is trading in small amounts of money.

5. Unlimited possibility of profit. The Forex market trades around $ 1.5 trillion on a daily basis and is therefore the largest financial market in the world. It dwarfs the value of stock markets ($ 50 billion per day) and futures markets ($ 30 billion)

6. You can make profits under any circumstances experienced by the market. The market is simply no more than trading a currency against another currency so when you buy a currency, you sell the other currency at the same time. Thus there is a possibility of profit whether the currencies moved up or down. This means that it is up to you to choose the currency you want to buy or sell as well as the possibility of making a profit, whether in the case of ups or downs.

7. Market transparency. This is one of the best features you can find in any business environment or field of commerce. This means that you can manage risk and execute trading orders in seconds and is enough to save you any unexpected surprises.

I hope to be able to convince you that Forex is the best investment and that the best opportunity for profit is not far away from you.

Forex Trade: Main Drawbacks of a Forex Trader

Why do few traders succeed in the Forex trading environment while the vast majority fail to succeed? Although there is no definitive answer to this question, there are a few things that will put you one step away from this answer and you will definitely put all the other possibilities in your favor.

The main purpose of this article is to guide you on some important aspects of Forex trading, but in a different way, instead of telling you what to do or how to do it best, it will focus on what you should avoid. Sometimes it will be better to identify key constraints accurately and then isolate them in a way that leads you to achieve the best results at a certain level of development.

Search for the Holy Grail

Most traders spend years and years trying to search for the holy grail of commerce. It is the index or set of indicators that only a limited number of traders know that enable them to become wealthy in a short period of time.

Fact: Well, there is no magic indicator or series of indicators that can enrich anyone in a short period of time. The main reason for this is market changes, each moment is unique. Any forex trading system will inevitably fail at one time or another. Therefore, our goal will be to find the forex trading system that fits our character as traders, otherwise the trader will have difficulty tracking this system.

Search for easy money

Unfortunately, most traders are attracted to the Forex market for this reason. This is mainly due to the fact that advertising always tries to show or suggest that trade and making money in Forex are easy.

TRUTH: Indeed, trade in itself is very easy for anyone to do. It’s just as difficult as a single peak, but the second part of trading is not that simple. Making money or achieving continuous profitability results is difficult as it requires a lot of learning, patience, discipline and commitment. This list will continue with you forever. In a few words, it can be said that it is possible to achieve continuous profitability results, but certainly this is not easy at all.

Search for excitement

Some Forex traders are attracted to the currency market or any other financial market because they believe that being a trader is a bit of a thrill.

True: Yes, Forex trading is exciting. But if this is your main goal in trading the Forex market, sooner or later you will discover the most expensive risk in your life. Think a bit about this.

Do not use capital management rules.

Most traders ignore this important aspect of trade. They believe that the rules of capital management will not have to be used until they achieve sustained profitability Hydra System results. Completely ignore the risk side of trade.

Fact: Capital management allows you to increase your profits systematically and also reduce the risk you face in each trading center. Capital management tells you how much risk you can incur in each single trade. Using capital rules is essential if you want to achieve the objectives of your business. By using the capital management rules, you are sure you can stay in the market tomorrow, next week, next month and even in the following years.

Do not be psychologically disciplined

This is one of the topics that are overlooked or that are not important enough in Forex trading. One of the most important principles of the financial market is that the price of any financial asset depends on the realization of all individuals involved in the market or so-called “herd.” In other words, the price of any financial asset is determined according to the factors of fear, greed and hope of all traders.

Fact: Being aware of all the psychological factors affecting traders’ decisions will definitely put the odds of trading in your favor.

Lack of education

Learning is the basis of knowledge in any human system. Just as lawyers and doctors need long years of university education before earning their degree, forex traders are also required to spend many years studying. It is recommended that you find someone with experience to guide you through the trading process because some information may take you without knowing the wrong path.

Real: Forex will teach you valuable lessons with each trading center you play. The Forex trader’s learning process continues indefinitely. That’s right, we never stop learning. We must be humble in front of markets and knowledge; otherwise this market will tell us later that we are wrong.

There are a number of important barriers that all traders face while trying to trade successfully.

Trading successfully in Forex markets is not easy at all. It requires a lot of hard work, but with good education, you will soon set yourself up to achieve your goals.

Interconnection Between Markets And How To Exploit It In Circulation

Interconnection Between Markets And How To Exploit It In Circulation Study the correlation between the known English the term markets “intermarket Correlation”, based on United Trading Software study of existing correlations between financial assets among themselves in one market or different markets. Along the lines that exist between the stock correlations among them, or the existing correlations between the bond market and the stock market or the commodities market and the foreign exchange market.

Stock Market
Stock Market

The many foreign exchange traders in the Forex market using the interrelationships that exist between commodity market and the currency market, to increase the likelihood of success of their transactions. For example, there is a correlation between the currency of the Canadian dollar relationship (CAD) and the price of rolling oil in the futures markets because of the importance of black gold in the the Canadian economy, which is one of the largest exporters of oil. While the Japanese yen is the inverse may be affected because oil is one of the most products imported by Japan. In this article we will talk about the existing relations of interdependence between foreign currencies and commodities traded in the futures markets, because it is a more interdependence between the markets used by 100K Factory Revolution Bonus traders to make their decisions in trading relationships.

Choose the interrelationship between the currency and commodity trading
Not all the interrelationships that exist between foreign currencies and commodities can be relied upon in making trading decisions independently of the other things that affect the market such as the events of political, economic numbers, liquidity and price differences.

For example, Canada is one of the largest exporters of oil and consequently its economy is affected by oil prices in the international market and the quantity that you export. While Japan is one of the most oil-importing countries and thus more oil prices affect the performance of its economy. As a result of the significant impact of oil prices on Japan’s economy and the economy of Canada, there is a positive correlation between the currency pair Canadian Dollar / Japanese Yen (CADJPY) and the price of oil. This relationship Yemen also affect the currency pair US dollar / Canadian dollar (USDCAD). But the currency pair CADJPY knows less liquidity and price differences compared to the largest pair (USDCAD). Since oil is priced in US dollars worldwide, the value of the dollar volatility affects the price of oil (and vice versa), so the currency pair (USDCAD) can be monitored to exploit the relationship of interdependence, given that Canada’s largest oil-exporting countries, while the United States It is the largest importer of him.

The chart shows the existence of periods in which the spacing between the pair CAD / JPY price and the price of oil. In this drawing oil prices have been modified, while the graph below, where oil prices unadjusted shows a relationship strong correlation between the currency pair CAD / JPY and the price of oil during the year 2010. The evidence on the necessity of monitoring the interrelationships in real time with real time data.
Another example of interdependence relationships between foreign currencies traded in the forex market traded in the futures market and commodities, the Australian dollar is a link at the price of gold. . Australia is one of the largest producing countries, the yellow metal in the world, what makes the Australian economy under the impact of the changes that knows the price of gold in the global markets and the quantity that can be exported. Add-on however, that New Zealand is the largest dealers with Australia and its economy is linked to the economy of Australia, which means that the New Zealand economy will be affected also by fluctuations in gold prices in international markets.

Australia is the fourth largest exporter of gold (2008), while the United States is the third largest importer of gold (2009), and therefore it can exploit the correlation between a pair Australian dollar / US dollar (AUD / USD) and a pair dollar New Zealand / US Dollar gold prices in making trading decisions.
And you can also note the presence of one of interdependence between the pair AUD / USD and oil prices in the futures market in the image below that between 2007 and 2010, despite the fact that Australia is not considered one of the major countries that export oil, and up until the month of September where he is no longer of this relationship any effective.
Interdependence between foreign currencies and commodities relations (or even different asset traded in other markets) may change with the passage of time. The trader can search for coherence between foreign currencies and commodities relationships by searching for major countries exporting a commodity and major countries that import this item, and therefore analyze and study how to move the currency pair that combines the processes of the exporting country and importing state, compared with the high and low price of the commodity.

The effectiveness of the correlation between foreign currencies and commodities
It is very important to realize that having a correlation between a pair Foreign currency and commodity (or any two originals how was their kind), does not mean at all that this relationship exists is always, but you should only monitor these assets and foreign currency associated with each other, because there will be times when it becomes this is where the negative correlation.

Knit relationship that may exist between a pair of currencies and commodity may be fairly strong during the year, for example, to become then this relationship is effective after that. So rolling to know when this interrelationship be positive and when to be ineffective. And it provides trading platforms at the moment many of the tools and indicators that enable the trader to monitor trading relations between the various assets in many markets. And a simpler strategy used by traders are exploiting spacing happening between two originals in the short term when there are two thread on the level of the general trend, so that the rolling to enter into a deal and wait for the return originally trajectory similar to the other out, which collects its interrelationship relationship.

Rolling that time known to enter and exit positions when trading based on the correlations between pairs of foreign currencies, commodities and the exploitation of winning the spacing between the two copies in the short term. It must also realize some of the things the following: – Are there any correlation at the moment between foreign currency and a commodity? – Does a trend led by the native concerned? – Is there a spacing between the native? For example, the native may be the one to continue to rise while the other parent is unable to walk in the same direction. In this case, we are waiting for the return of the native to walk in the same direction.


The interrelationships between foreign currency pairs traded in the futures market and commodities is not an exact science, and also applies to the interrelationships between assets in other markets, these relationships may last only for a limited period, so they have to rolling to be and understand what is going on in the market and when it is in the case of the native temporary spacing and when to be interrelationship between them has ended.

A Quick Review Of Financial Options Pricing Methods

A Quick Review Of Financial Options Pricing Methods The concept of option contracts: Option contract is a contract mosquitoes just right, entitles its owner to sell something specific, or buy it at a certain price over the (over) a certain period of (information) or on a specific date, either directly or through a guarantor rights body sides.

Or is the “contract is really the buyer (not the obligation) to buy or sell a certain something, a certain price (strike price) during a certain period of time, and you need saleswoman sell or buy that thing at the agreed price during that time period, for a fixed amount paid by the buyer decade, called the premium. “Known as the premium, which is the same as the price of the Orion Code APP option on it: “Agreed compensation paid to the seller (the seller of the option) by the buyer (defended the price of the option) for the enjoyment of the right to buy (if buying) or the right to sell the option (if the sale option) securities during a specified period of time. this amount is a reference both carried the buyer the right, or not implemented. ”

Financial Options
Financial Options

Options contracts began first in goods in 1630, and then expanded handled encompassing real estate and securities transactions in markets outside the stock exchange, where they were treated options contracts on stocks in the London market in the securities beginning of the year 1820, and during the year 1860 was set up options and securities in the American market and the contracts which is typical, where not a negotiability in the secondary market, and the real and evolving growth to deal with options launched by the industrial and technological progress between 1970 m and 1980 m, where the first organized market for the options in America appeared in the city of Chicago in 1973, where he established the board Chicago market specialist for the options, which are designed contracts typically enabled the circulation and handle them as financial instruments, and then spread to handle these standard contracts in other markets within the United States, reaching Orion Code System option contracts to more than one million contracts daily.

Handle these contracts form typical in other countries did not begin until the contract eighties of the twentieth century, in the year 1977 have been dealt with options standardized in the LSE, and has increased the number of markets that deal these contracts to more than 40 markets around the world, the options (choices) initially for commodities, especially agricultural crops, and then evolved into include most goods and stock, especially after the establishment of the Chicago market, and stereotyping of options contracts, and in the early eighties of the twentieth century has been the inclusion of new types of choices, including stocks, treasury bonds ( US and foreign), and goods and commodities, and indices and currencies …

One of the important concepts in the field of financial options theory (premium) which represents the price of any bonus option acquired by option editor, and stop usually the value of this premium on several factors such as: market value of the asset covered by the option, the exercise price and the date of implementation (accrual period and the longer it the price is higher), prevailing interest rates, supply and demand on the purchase and sale of option contracts and fluctuations the premium cost of the price of the right of option which is the market value of the option contract and is used to calculate a set of diagrams and mathematical models that will be the focus of a separate Study of this chapter.

It takes the exercise price (which is also called the exercise price) specified in the contract three possible cases of option. It can be either: Up, equal to or less than the current price (the market) to the original place of contracting.