Foreign Exchange Money

Symmetrical triangles

Symmetrical Triangles are chart formations where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle.  What is happening during this formation is that the market is making lower highs and higher lows.  This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend.  If this was a battle between the buyers and sellers, then this would be a draw. This type of activity is called consolidation:

In the chart above, we can see that neither the buyers nor the sellers could push the price in their direction.  When this happens we get lower highs and higher lows.  As these two slopes get closer to each other, it means that a breakout is getting near.  We don’t know what direction the breakout will be, but we do know that the market will break out.  Eventually, one side of the market will give in.  So how can we take advantage of this?  Simple.  We can place entry orders above the slope of the lower highs and below the slope of the higher lows.  Since we already know that the price is going to break out, we can just hitch a ride in whatever direction the market moves. continue reading…

Stochastic Oscillator is a analysis tool creation George C. Lane in the late 50s. As the name suggests, the value range on this indicator is 0-100 (oscillator). Stochastic Oscillator is used to indicate the closing position relative to the range of transactions within a given period. Basically, this indicator is used to measure the relative strength of final price to highest price hoses and hose terrendahnya during the period we want.

Stochastic Oscillator consists of two lines called% K and% D. The essence of this indicator is the% K itself while the% D is the SMA of% K. It could be said that the% D is a line identifying the direction of% K.

If we see from the range of 000-100 Stochastic Oscillator, can be said that in fact these indicators are not that different from RSI. Only in the Stochastic calculation includes the lowest price, and the highest closing price at a term appointed.

Stochastic Oscillator is mathematically defined as follows:

at a certain period.

Recent close = closing price last
Lowest Low = the lowest price during the specified period
Highest high = the highest price during the specified period

As for the% D is the SMA of% K itself. By default usually is 14% K and% D is 3. Selection of period% D only for 3 periods intentional to enhance the sensitivity of the% D itself. The question is whether it can in addition to that value. Of course you can like any other indicator. But there are several types of Stochastic Oscillator in which we can not replace big% D. We will learn later. continue reading…

This indicator was developed first discovered by Daryl Guppy is founder and director of Guppytraders.com Pty Ltd. .. Currently he is an active trader who trading variety of futures products. Famous book is “The 36 Strategies of the Chinese For Financial Traders, Share Trading and Trading Tactics, Bear Trading, Chart Trading, Trading Asian Shares’ (printed in Mandarin).

In early 2008 he also published a book ‘Snapshot Trading’ (also in Mandarin). Trend Trading his book became a best seller, published in Beijing.

He developed the Guppy Multiple Moving Average indicator in MetaStock, Omnitrader and various other graphics programs. He also gave courses in technical analysis accredited Singapore Stock Exchange and the Society of Remisiers, in Singapore. He is also an honorary member of the Australian Government Shareholders and Investors Advisory Council. Routinely he also made the comments and analysis on CNBC titled acaea CNBC Asia Squawk Box.

He is also a contributor (writer) magazine for the Sydney Futures Exchange magazine, Your Trading Edge, Technical Analysis of Stocks and Commodities, Active Trader, Working Money, Bridge Trader, Australia’s Shares and Personal Investment, Singapore’s Smart Investor, The Edge, and Personal Money in Malaysia. continue reading…

In its development in the future, Parabolic SAR is one indicator is effective in determining the trend of market conditions (trending market) along with the facility named Trailing Distance widely available on various platforms forex trading.

Parabolic SAR calculation

It’s the least I like. However, in order to meet the forex learner question that asked where the points obtained SAR yes what can make me put Parabolic SAR calculations in this article.

Parabolic SAR formula like this Well, hopefully we all do not get giddy:

Note: Sarn = SAR point from the previous bar
? = acceleration factor, usually set at rates up to 0.2 00:02
EP = The highest price or lowest on the previous bar

Well this forex learner, SAR point always in the opposite direction of price movements, if the price is in up trend, the SAR point will be at the bottom and vice versa if the price goes down point is above the SAR. So thus the point of EP relies completely with the direction of the price at this time. If the point of the previous SAR under the rod then the price should be one of the highest price and vice versa.

I know this is tedious and confusing for most people. I also was not moved to develop it with some sample calculations because I think more headache than benefit. You are welcome to track own to find out more. continue reading…

Invented by John Bollinger in the early 1980s to help compare volatility and relative prices in one period analysis. Bollinger bands actually consist of three lines that form a kind of belt barrier against price movements. But in its application to the center line of the Bollinger Bands are often not shown because it is the center line of the ordinary but using Moving Averages.

As has been explained above, the Bollinger Bands itself resembles a belt that the limiting price movements. Can you find something in the image above? Yeah right. In the event of imbalance between demand and supply, the Bollinger Bands will widen more than the balanced condition.

As an example of the above picture, a state in which supply more than demand, making the price down from 1.2185 to 1.2071 (114 points), then the belt Bolinger will be widened because the rate prices are rising. Compare with a situation where demand and supply tend to be the same as at 12.00 and afterwards. If there is a balance which means the market will move sideways in a state of the Bollinger Bands will be more narrow than usual because it’s not as fast as the rate of price uptrend or down trend.

As the volatility indicators, Bollinger Bands actually can not stand alone. This indicator is usually used only as an early indicator to measure the relative price and volatility (volatile = volatility – volatility = the rate of change). Bollinger Bands indicator is not the action, so it’s recommended if using a single indicator of this, also use other indicators before making a decision to buy or sell. continue reading…