Analysis

  • -Fibonacci trading forms the basis of many e-trading systems used by successful traders around the world. All such systems are based on the famous Fibonacci ratios (.236, .50, .382, .618, etc.) and each of them specializes in a particular ratio as well as other additional indicators to determine entry and exit levels with the highest possible accuracy. One of the most popular Fibonacci ratios is 0.382. As you can see from any chart, currency prices are constantly changing and following an oscillatory pattern with peaks and troughs. The limit of the peak is usually called a resistance level, while the troughs are called support. In order to find the 0.382 ratio level, you should, first of all,...

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  • Joe DiNapoli-style Fibonacci retracement levels and extensions should be considered only as a single system. Using each tool separately will give only partial results. DiNapoli's method Regarding the correction levels, it should be said that he left only 2 levels in his method - 38.2% and 61.8%. The level 50% was omitted. In our opinion, he uses the minimum levels only for entry purposes, since it doesn't matter whether you enter on a pullback at 61.8% or 76.4%, anyway, the stop loss is behind the beginning of the wave (or "reaction" according to his definition). Ultimately, the grid of corrections looks like the figure below. In principle, knowing his entry methods, this grid will be enough!..!

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  • Divergence is quite a popular type of trading on the market among professional currency traders. It is considered to be the destiny of professionals, and it is not recommended for newbies to get involved in this topic. However, we will try to explain this trading method in simple language understandable even to a beginner. What is important in the analysis of divergences? Today there is more than one divergence indicator, but even the use of such analyzers will not give you the efficiency in trading if you do not have at least a general idea of such a notion as a divergence. In general, the meaning of both divergence and convergence is in the divergence of the oscillator from the price chart. Usually, the following indicators are used for the analysis of the divergence: MACD, slow Stochastic,...

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  • Отслеживая краткосрочные колебания валютных пар, так же легко упустить из виду общие рыночные тренды, как и не заметить более широкую торговую экосистему, сосредоточившись на незначительных колебаниях курсов по открытым позициям. Рынок – это полноценный мир с широчайшим диапазоном участников от частных трейдеров, как вы, до межбанковских сетей и центробанков. Выступая в качестве индивидуального розничного трейдера, вы находитесь внизу пищевой цепочки, вы – мелкая рыбёшка. Хотя имеете возможность покупать и продавать те же самые валютные пары, что и другие участники, тем не менее, вам необходимо преодолевать более длинные цепочки транзакций, в сравнении с другими, чтобы получить ликвидность, так как вы не…

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  • One often hears that some instrument on the exchange or the market as a whole is expensive/cheap, overbought/oversold. These notions immediately become a kind of anchors for a trader. Further he will always be within this category and follow everything that is taught in books. All these anchors are nothing more than a trader's personal opinion and have nothing to do with reality. Because, in addition to cheap/expensive, there are such beautiful words as cheaper and more expensive. And there is nothing that prevents the market from staying that way for as long as it wants. On the overbought/oversold side, if the market enters a "cheaper/expensive" state, the trader will constantly catch knives flying up and down, gradually...

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  • Very often in the environment of novice traders, there are situations where they enter a position in advance (out of impatience or giving in to emotions), or vice versa, when they enter a trade, they do not know when to exit it (or close it before the time). This is where the so-called filters come in handy. Types and Examples of Filters A filter is a trading system rule, after the completion of which a trader has to perform a certain action (for example, open a deal, move stop loss, close the position, etc.). They are used to prevent possible losses on (so to speak, methods of checking for false signals) and serve to optimize the trading system. Today there are many filters that are present...

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  • In today's article, we will consider in detail one of the tactics of trading by technical analysis, namely the reversal candlestick patterns, which are called "Stars" in the market. What are these reversal patterns, how to identify them on the price chart during trading, what signals to open positions they show, and this is what we will talk about next. The formation of the reversal pattern "Star" At the market it is believed that the reversal candlestick patterns often give very strong signals of a close trend reversal in the opposite direction. As mentioned above, these include the "Star" patterns which in turn have subtypes: morning star and evening star, but we...

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  • This article considers an algorithm for probing the state of the market for randomness and algorithms for trading in a chaotic and trending market. As numerous researches of the market[1] have shown, (20 -25)% time it is in a state of trends, and (75-80)% time it is in a quiet state of motion similar to Brownian motion, i.e. "chaos". Thus, the main qualitative characteristic of the market state is the chaotic mode of its behavior in time. Chaotic market 80% time is stable with respect to small perturbations. It is these considerations that underlie the modern notion of dynamic chaos. The mathematical representation of the established regime of the chaos state of the market is the limit cycle, and the disruptor of the regime is the trend market state with resonance phenomena (continuous jumps) .....

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  • Японские свечи – это уникальный индикатор, программа, направленная помочь трейдерам со всего мира в ведении торговли. Не для кого не секрет, что заработок на электронной валютной бирже не даётся легко. По крайней мере это ясно каждому, кто имеет к финансовому рынку хоть какое-то отношение. Если позволяет зарабатывать много и быстро, это ещё не значит, что он позволяет зарабатывать легко. Правда, когда будущие игроки только собираются изучать основы финансового рынка, только начинают интересоваться трейдингом, они даже не подозревают об этом. Многие считают, что заработок во всемирной паутине не доставит им больших хлопот. Но уже на этапе обучения игроки убеждаются в том,…

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  • When a player performs a technical analysis of an exchange, he analyzes the changes that have already taken place in the exchange rate. He studies what exactly is happening to the currency pair, which he is interested in. During the fundamental analysis, the player is trying to get to the bottom of what caused certain changes, why the market moves in a certain way and not otherwise. This approach is usually more effective, because in this case a trader can make a forecast about the future course of the currency rate. Well, fragmentary analysis, in fact, combines both of these methods and their methods of economic analysis. Plus with the passage of time, with a certain practice the player can make...

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  • Among active traders actively working in all kinds of stock markets, including the foreign exchange market, there are two basic approaches to the analysis of price movements. These are technical and fundamental analysis. It can be noted that the differences between these two approaches are, we can say, fundamental and somewhere even philosophical in character, at that extreme representatives of these two schools of analysis of exchange markets do not admit each other, considering their direction as the only right one. The golden mean a It has happened historically that most of private traders in our country preach mainly technical analysis, sometimes rejecting the advantages of the other approach. Ardent adherents of technical analysis, as a rule, are not interested in anything but charts,...

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  • Основу графического построения Вилы Эндрюса составляет средняя линия (Median Line), благодаря которой Эндрюс стал знаменит. Эндрюс, всегда утверждал, что Срединная Линия основана на законах физики. Он полагал, что принципы физики могут применяться на финансовых рынках. Диаграммы ниже показывают принцип, на котором основывается Срединная Линия.Эти принципы заключаются в том, что природные циклы возвращаются к своим центрам, а для каждого действия существует противодействие. На схемах показаны синусоидальные циклы. Слева — незавершенный, справа – законченный. Стартовая разворотная точка обозначена, как А, Срединная Линия проведена через центр между В и C. На правых диаграммах волна идет обратно к Срединной Линии в точке X. В…

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  • Задача определения краткосрочного направления какого-либо финансового актива может казаться слишком сложной, особенно, если для ее решения трейдеры пытаются смотреть на график цены. Дневные ценовые колебания, отображенные на графике, могут выглядеть очень изменчивыми, что чрезвычайно затрудняет определение того, какие именно ценовые движения особенно важны и в первую очередь определяют направление актива. К счастью для трейдеров, были разработаны несколько методов отображения цены, которые пытаются отфильтровать случайный шум и сконцентрироваться на важных движениях, определяющих тренд актива. Один из методов отфильтровывания такого шума, который является также предметом этой статьи, известен, как график Каги (Kagi). Построение графика Каги Графики Каги состоят из ряда вертикальных линий,…

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  • If currency rates did not change, we would not have to wonder every day what the current exchange rate is for the dollar, the euro, or the pound sterling. We would always know that one British pound is equal to so many U.S. dollars. It used to be that way. That all changed in the early seventies of the twentieth century, when the major world powers made their national currencies float. Since then, the market has determined the rate of each national currency. And what does it mean - "the market determines"? It means that the rate of a currency (in other words, its price) is determined by a basic law of the market-the law of supply and demand. Currencies whose demand is increasing become more expensive. A currency, the demand for which is falling, is...

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  • With the onset of the global financial crisis, the economies of many countries were threatened by the onset of recession. Governments reacted quickly and began to help their economies by rolling out stimulus programs. Within a year, governments around the world had already spent more than $10 trillion on stimulus. Such injections have borne fruit, and economies have shown the first signs of recovery. Observing the positive shifts, many scientists and experts began to talk about the strategy of stopping the stimulus. This article will discuss why it is important to end the stimulus in time and how to know when to end the stimulus. Why is it important to end the stimulus on time? The question of the timing of stopping the stimulus is important because both too early and...

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  • If we look at the structure of the Central Bank's reserves, we find that part of the reserves are held in SDRs (Special Drawing Rights). The essence and purpose of SDRs is the subject of this article. The concept of SDRs SDR is the potential right to a portion of the money of the International Monetary Fund. The SDR is also often referred to as a synthetic currency. When a country joins the IMF, it makes a contribution. The Fund, in turn, issues SDRs and distributes them to countries in proportion to their contributions. At this point, part of the money contributed is actually exchanged for SDRs. At the end of these operations, the country has those same SDRs in its accounts. If the country needs the money, it can sell some of it.

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  • Three axioms for quotes

    Существует три кита, на котором базируется весь современный технический анализ биржевых рынков в целом и валютного рынка в частности.  Эти три кита, проводя далее аналогию со средневековым миропредставлением, стоят на одной огромной черепахе – и «черепаха» это котировки инструментов прошлого. Главный, так сказать, объект исследования технических аналитиков. Под техническим анализом принято понимать метод прогнозирования котировок, на основе анализа графиков цен за предыдущие периоды. Первый постулат теханализа валютного рынка – движение котировок происходит согласно объективным законам природы, которым подчиняется баланс спроса и предложения, все остальное вторично. Котировки представляются как зеркало, отражающее или учитывающее все факторы ценообразования – экономические, политические и психологические.…

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  • The world currency market has developed its own specifics. Currency pairs are divided into a number of blocks according to their degree of influence and dependence on certain factors. Major currency pairs on the Forex market The major block includes currency pairs with the US dollar. The exceptional role of these three currencies on global markets is due to several factors: Firstly, a special role of the US dollar established by the Bretton Woods and later the Jamaica agreement. According to these agreements, the global financial system is based on the national currency of the United States. The dollar has three important functions: USD is a universal means of payment in international trade, besides, it acts as a basic asset...

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  • Only in the period from November 1636 to February 1637 the price of tulip bulbs in Holland increased more than hundred times, reaching the price that is now equivalent to tens of thousands of dollars per bulb. But already on February 3, 1637 it became clear that no one was buying bulbs at those prices anymore, and the prices went down sharply: by May 1 the prices had dropped more than a hundred times and reached the level of 1636, while they kept on dropping. Thus unfolded the events of one of the most famous financial crises in history - the tulip speculation bubble. Many bubbles have burst since then, and economists are faced with the task of...

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  • As the global financial crisis unfolded, it turned out that securities backed by U.S. mortgages were very widespread: many companies, from giant investment banks to small investment funds, owned them. When these securities turned out to be problematic, it caused a lot of trouble, and the widespread nature of these securities ensured that the problems were truly systemic in nature. In this article, however, we are not going to touch on the causes of the crisis, but rather examine another phenomenon: the securitization mechanism that makes securities, such as mortgages, so widely available. The concept of securitization Formally, securitization (from the English word "securities") is a way of raising finance that involves the issuance of asset-backed securities,...

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