Resources

10 Rules of Technical Trading by John Murphy21.05.2015

In what direction will go the market? How far it'll get up or down? And when it will change the direction? These are the basic questions of a technical analyst. Additionally to diagrams, graphics and mathematical formulas used in the analysis of market trends, there are some basic concepts that can be applied to most of the theories used by today's technical analysts. John Murphy, a master in technical analysis of futures markets, based on his thirty years of experience, has developed ten fundamental rules of technical trading. These rules are intended to help to explain the general idea of ‚Äč‚Äčtechnical trading for novices and simplify the trading methodology for more experienced practitioners. These principles define the key tools of technical analysis and how to use them to identify the possibility of selling and buying. Mr. Murphy was the technical analyst for CNBC. For seven years he led the popular show "Tech Talk" and is the author of three best-selling books on the ...

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4 Technical Indicators 16.02.2016

Market indicators are the basis for a decision taken by the trader to buy or sell a currency. According to the basics of technical analysis, it is known that the market may be submitted in one of two states: trend or flat. On this basis, the indicators are conventionally divided into 2 types: -          Trend indicators - those that indicate the presence of a direction (downward or upward). -          Oscillators – they have a high level of efficiency in the absence of a pronounced trend. In this article you will learn about 2 trend indicators (Moving Average and Bollinger Bands) and 2 oscillators (Stochastic and MACD). So let’s start with trend ones: Moving Average The technical indicator – Moving Average (MA) shows the average price of an instrument over a certain period of time. When Moving Average is calculated, there is performed a mathematical averaging of the currency...

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A study of what sparked the strength and stability that forex brokers proved during the CHF cap removal10.02.2015

The 15th of January saw the SNB (Swiss National Bank) remove the floor on the EUR/CHF rate leaving it to freely float in the market. Immediately, the Swiss Franc quickly increased in value by nearly 20%. This caught most forex traders and market participants by surprise both on the degree of the business reactions and timing. Throughout the following days, it became evident that numerous forex exchange operators, with exceedingly leveraged positions trading on margin, had significant losing positions most of them having been caught unawares with this news. The unique arrangement of the online leverage FX business model hurls some interesting insights. The question is—why did most brokers still prove strong and stable during this period? The stun move from the Swiss National Bank essentially affected foreign exchange trade as well as foreign exchange brokers. At the end of the day, such events are tests for broker strength and stability. Here is how brokers’ reactions rou...

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An Overview of Forex Regulators25.02.2015

Essentially, the regulation of foreign exchange markets was virtually non-existent in early years. Fast developments in foreign trading among retail financial traders sparked increased scrutiny and the emergency of Forex regulators or bodies. So what does this means for retail Forex trader? Does it really mean a big risk that goes hand in hand with non-regulation? Is that of outright fraud or illegal activity? Let’s first define fraudulent activities. These include unusual commissions brought about by individuals that “churn” their customers’ accounts using, call them high-pressure “boiler rooms” tactics, misrepresentation and Ponzi schemes. It is a fact that about 26,000 individuals in the U.S. alone lost approximately $450 million in Forex related swindles between 2001 and 2010. Is that a thing of the past? You cannot rule out the existence of opportunistic brokers posing to take advantage of unsuspecting individuals bearing in mind the fact that ...

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Canadian Dollar22.02.2016

Although the Forex market increases each year its volume and promises a handsome profit to the trader, do not forget that the ease of access is immediately compensated by an increased degree of risk. After all, without possessing the necessary knowledge it is impossible to trade successfully. You need to know the determinants of movement of major currencies, and in this article we will discuss the Canadian dollar. Code: CAD Symbol: C$ or $ Banknotes: $5, $10, $20, $50, $100 Coins: 5¢, 10¢, 25¢, 50¢, $1, $2 80% of all the transactions in Forex involve only 7 major currencies. Among them, on the sixth place we find as a reserve currency the Canadian dollar. The Canadian dollar (CAD) is a rather original currency. Canada is not a leading country in terms of population and in terms of economy it ranks only 10th place in the world market. However, this North American state holds 9th place in terms of exports. This accordingly affects the behavior of the national cu...

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