Monday, June 9, 2008

Why ForexGen?

Why ForexGen?


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.

2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.

3. ForexGen offers Forex trading in the major currency pairs; crosses and CFDs.

4. Low capital start, with $250 as a minimum account size.

5. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

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About Forexgen

About Forexgen

ForexGen LTD is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen LTD serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

ForexGen principals
ForexGen LTD customer satisfaction is our major objective.

To reach our business goals, we strive to put our client’s goals in focus.

We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

ForexGen LTD complies with the trade commissions in the USA, EU and Australia. Being registered by the commercial authorities in 18+ countries, we adhere to the United Nations Commission on International Trade Law (UNCITRAL).

Why participate in the Forex Market

Why participate in the Forex Market

  • Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account activation.
  • Scandinavian quality with Swiss precision, funds secured and local agents in 20+ countries..
  • ForexGen offers Forex trading in the major currency pairs; crosses and CFDs.
  • Low capital start , with $250 in minimum account size.
  • Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
  • ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

for more information > > >

New to Forex Markets?

New to Forex Markets?

Forex is definitely one of the most exciting and profitable markets. If you want to join the elite and start investing you need to follow 5 very simple steps that will eventually lead yo to succes:

Self Study:
In order to start investing you need to study and observe the
Forex market carefully so that you can make the right decisions when the time comes.
You can study the fundamental analysis to monitor the political and economic news’ effect on
FX market.
Also the study of technical analysis is useful as it predicts the price movement based on past experience.

ForexGen offers a Training section developed specially for new traders .


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Technical Analysis

Technical Analysis

ForexGen studies past price and volume changes in order to build up simulations on future price movements. ForexGen’s analysts mainly make use of charts and financial formulas to gather enough information used in technical price speculations.
Types of indicators used in technical analysis:

• Cycle indicators
This type of indicators specify the exact time of an expected market change due to a repeatable phase that the market go through (Elections, seasons…etc)

• Volatility indicators
Changes in volatility tend to lead changes in prices. (Example: Bollinger Bands)

• Trend indicators
This one mainly examines the variable price data to create moving averages and trend lines.

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Fundemental Analysis

Fundemental Analysis

  • It is the study of change in price through micro and macro economic levels due to political and economic conditions in countries. Analysts use fundamental analysis to predict the future trends of one nation’s currency in terms of another.
  • Fundamental analysis is usually affected by the following factors:

    • Official discount rate .
    • FOMC and Meeting .
    • Inflation.
    • Budgetary deficit .
    • Economic
    indicators .
    • Trade balance .
    • Consumer price index (CPI) .
    • Producer price index (PPI) .


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Trading Terminal

Trading Terminal

The Trade Terminal allows trading and controlling the opened positions in real-time. It can be accessed through the menu opens View - Terminal or by pressing the Ctrl + T key combination. The Trade Terminal button on the toolbar can also be used. The Trade Terminal can be dragged to anywhere on the screen .Account History Tab
The trade operations’ information is stored in the Accounts History tab.
News Tab
Real time streaming news, showed directly on the desktop ForexGen customers and demo users.

Alerts Tab
This tab contains information about any created alerts.
The alerts are generated for signaling events in the markets.
The trader can set up his own alerts and the client terminal will automatically inform the trader of the server event.

Mailbox Tab
The Mailbox is ForexGen internal mailing system which includes the information about the registration, account and system.

Experts Tab
The Experts tab contains the information about any attached expert, including opening / closing of positions, the modification of orders, the experts own messages, etc.

Journal Tab
The Journal tab contains a list of your actions within the current session.


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Order Forms

Order Forms

A position can be opened in several ways:

• via options Tools - New Order .
• via F9 key .
• Via double-click on the desired currency pair in the Market Watch window.
• via right-click the Trade Terminal window then select New Order .

click the Sell or Buy button to execute your order.



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Forexgen Market Watch

Forexgen Market Watch


The Market Watch window is a floating palette.

It has the ability to be dragged anywhere on the screen.

The Market Watch window which is also called the Quotes Window shows the current prices of the traded currency pairs and the currency market news in the currency market. It also permits quick dealing with any currency pair.

The Order Form can also be accessed by right-clicking the desired currency pair then selecting New Order.

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Forexgen Platform Advantages

Forexgen Platform Advantages



Following the current news of the Forex market :
ForexGen online trading platform could accurately cover all the financial market situation.

ForexGen offers the most qualified Forex online trading platform which facilitates the online currency exchange services for different worldwide traders, companies and dealing centers.

Variable currency basis :
Variable currency could be exchanged where any currency could be considered as general currency in the whole online trading operation in all the countries with the their national currencies.

Security:
The whole information exchanged between the different parts of the system is encrypted by 128-bit key which assures the safety of the transferred data and prevents any other person form utilizing this data.

Provided by many languages :
A Multilanguage Pack program is provided with ForexGen platform offering many languages where the trading platform interfaces could be translated to any language. Our Multilanguage pack enables the trader to build his language and integrate it into the platform.

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ForexGen platform features:

ForexGen platform features:


• Streamline dealing with no request for quote for up to 200 lots (20 million).

ForexGen trading platforms have a friendly user interface that is both easy to use and to grasp.

• One click orders execution.

• Providing real-time charts with the most common indicators.

Advanced charting tools with many technical analysis features.

• Daily account statement.

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ForexGen Trading Station :

ForexGen Trading Station :



ForexGen Trading Station is the client part of online ForexGen Trading Platform.

We provide all the needed trading tools for a successful trading.

We attempt to supply the sufficient information and tools in order to make the Forex traders’ decisions more appropriate and easier.

The program has a simple and user friendly interface that allows traders to monitor their transactions and their account as well as perform technical analysis and develop Forex trading strategies of their own.

ForexGen provides continuous real-time information and sophisticated technical analysis tools.

ForexGen Trading platforms are stable , secure and characterized by its unique performance.

It is the best solution for trading on Forex, CFD and Futures markets .

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Forexgen Charts

Forexgen Charts


The Forex charts are the point of interest at ForexGen. Charts are a significant technical analysis tool for a trader that wants to perform successful trading. . Line Chart: The line chart is a graphical representation of the historical exchange rate of a certain currency pair in a given period of time. The line is established and drew according to the closing prices connection of the day.




Bar Chart: The bar chart is a currency chart represents the currency price, forming vertical bars in a day (e.g. every 60 minutes). Each bar contains 4 ‘hooks’ .

Candlestick Chart: The candlestick Forex charting is used to forecast the market. It represents OCHL prices as ‘candlesticks’ with a wick at each end. When the opening rate is higher than the closing rate the candlestick is ‘solid’.

Point & figure charts: Point and figure patterns are essentially the same patterns found in bar charts but Xs and Os are used to market changes in price direction. In addition, point and figure charts make no use of time scales to indicate the particular day associated with certain price action.

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Withdrawal of Funds With Forexgen

Withdrawal of Funds With Forexgen


Traders can withdraw money from the trading account in a simple and fast way.
Withdrawal to a bank account:


1. Login to your account using your user name and password.
2. Click on “Manage accounts” link on the left menu.

3. Select to submit new
withdraw transaction.

Withdrawal to an e-gold account:

1. Login to your account using your user name and password.
2. Click on “
Manage accounts” link on the left menu.
3. Select to submit new
withdraw transaction.

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Deposit Funds with Forexgen

Deposit Funds with Forexgen


ForexGen
offers the easiest, simplest and fastest way of Forex funds depositing, withdrawing and transferring provided by Customer Support personnel available 24/7 In order to serve its clients any time all over the world.

Account receivable funding could electronically be funded by ForexGen in the same business day, thus the client’s account will be funded in the same day of receipt.

For our client’s security, each wire transfer reference section must contain the client’s name and account number.

ForexGen minimum deposit required to start trading is $250 . Also we have no limit for depositing fund into your account .

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Open Demo Account

Open Demo Account

ForexGen provides its traders with a free Forex demo account where the trader is allowed to participate in Forex trading with real market conditions and get used to the Forex trading employing ForexGen professionalized online trading platform.
A Forex demo account permits the trader utilize the advantages and the benefited features provided by our online trading services.
The trader must enter a valid e-mail address to freely open a demo account .

ForexGen demo account advantages:

· Innovated trading with no request for a quote for up to 200 lots (20 million).

· The client is provided by a simple system with included options that are easily grasped and used.

· Real time prices are usually modified and provided.

· ForexGen provides Real time charts with the most famous indicators.

· Daily reports for the account status.

· Summarization of the current client’s orders, account equity, profit and loss ranging.

· Exclusive technical analysis provided daily to your mailbox in the Trading Platform.

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Pivot Calculator


The pivot calculator is defined as a technical indicator that is produced by calculating the numerical average of a particular currency pairs high, low and closing prices.
To calculate pivot points, the pivot point itself will be considered as the primary support/resistance level.
Meaning that the largest price movement will occur at this level.
The other support ad resistance levels have less important, but still can generate significant price movements.
Pivot points can be used in two ways.
The first way is to determine the expected overall market trend.
If the pivot point level broke in an upward price movement, then the next large move in the market is expected to be bullish move, and if the pivot point level broke in a downward price movement, then the next large move in the market is expected to be bearish move.
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Pip Value Calculator

Pip Value Calculator



Pip value constantly changes according to the market currency price for indirect currency pairs.

Instructions :
You may input any prices you need in the second column of the table. If you are using non-standard lots, you may input the size of your lot in the bottom cell.

Quick Review
Pip (or Points) is a term used in Forex market to indicate the smallest incremental move an exchange rate can make.

Depending on context, normally one basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and 01 in the case of USD/JPY).

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Strategies Tester

Strategies Tester


Strategy tester will enable the traders to apply more than one strategy for one or multi pairs and simulate these strategies in history to see the results of these strategies and try to tune its parameters to achieve its maximum profit and minimum loss.

Validator- Integrate with the optimizer to filtrate the pair’s loops generated by the optimizer.

- Accept ranges from different parameters to enable selecting the ideal setup to produce the maximum expected profit .

Verifier- Scoring and ranking the time results from using the strategy.

- Providing the trader with feedbacks on different strategies performance .

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Trading Optimizer

Trading Optimizer


The Trading Optimizer’s main functionality is to create relations between groups of pairs and finding the best combinations that may produces the best profit in the minimum time possible, this process is performed by sophisticated -state of the art- algorithms which is based on the classification and clustering of correlated pairs resulting in simulating all possible runs in history to get the best combinations.

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Trading Profit/Loss

Trading Profit/Loss

The differential indicator is an indicator used to identify the profit/loss that would have been realized if any trader submitted multiple positions at the same time.

The indicator shows the rise and fall of the profit of positions opened at the red vertical line through a red graph line in a certain interval of time starting from the time of opening the positions and reaching to the current time, where each point is the total profit of opened positions at this time.


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Multi Pair Chart Indicator

Multi Pair Chart Indicator

The multi pair chart indicator allows putting multiple currency pairs on a host currency chart and draw the difference between the these currencies (the added pairs and the host pair) The multi pair chart is an indicator which represents more than one pair symbol, it creates further correlations between the pairs through hedging.

It simulates the expected relations between more than one symbol to be more useful and to facilitate the trading process.



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Trading Signals

Trading Signals


Dash Board indicator
Dash board is an assisting tool that makes strategies combinations where its calculations depend on volumes and correlations between strategies including a function that weights the indicators’ signal depending on strategies based on trend, oscillators, bill Williams, volumes and custom indicator; it gets the average signal among all the strategies over a specific time frame.

It shows the buy/sell signals by different strengths in the short, middle and long periods:Long strength expected results may take from 1 to 5 days to produce profit and the expected gain may reach average 60 to 30 pips.


Dash Board for all indicators

Dashboard for all is an assisting tool that includes 27 currency pairs, it allows traders to see the CIF values for the selected currencies on one chart.

It represents the buy/sell signal by a percentage of different strengths (short, long, and middle).

The dashboard for all calculations for each currency pair depends on, volumes and correlations between strategies including a function that weights the indicators’ signal depending on strategies based on trend, oscillators, bill Williams, volumes and custom indicator; it gets the average signal among all the strategies over a specific time frame.

Dash board for all indicators includes a history mode parameter which allows the trader to get the dash board indication for a historical point for many currencies at any time frame.





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Introduction:

Introduction:


• Trading in the Forex market is a challenging opportunity where above-average returns are available to those educated and experienced investors who are willing to take above-average risk.

• However, before deciding to participate in Forex markets, traders should carefully consider the investment objectives and scope, the required level of experience and risk abilities that should be available, and the most important factor is to take into consideration not to invest capital, if you can not afford its loss.

• In addition to the “Market Risk” associated with adverse price movement, there is a number of other “Risk Factors” that are inherent to online trading, whether manual trading or regular automated trading concepts available in some platforms.

Purpose

• By going through all previous points, ForexGen reached to some certain findings that aim to give traders the possibility to participate in the Forex industry with potentials in actually gaining money form the market and not often losing, this can be done by introducing the concept of “Automated Trading System”.

• The goal of building this system is to replace the human involvement in trading and relieve the individual trader from the emotional, physical and psychological stresses of manual trading and the tedious monitoring responsibilities of running an expert advisor on a platform. • The strategies embedded inside the system enables it to self-adjust to follow trending and ranging markets by using complex and sophisticated “market specific” trading algorithms and logic to analyze different price structure and movements resulting in self-adapting to the constant change in market conditions.

• The system has the capabilities to trade major currency pairs like (EUR/USD, USD/JPY, GBP/USD and USD/CHF) and any other pairs available in the Forex market .

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Custom indicators

Custom indicators


ForexGen offers you the chance of a life time by dedicating a team of experienced developers specialized in Forex market to give you assistance and support in your ideas
Contact us at: development@ForexGen.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Our house experts categorize and make combinations of the trend, oscillators, bill Williams, volumes and other custom indicators, the CIF signal values is generated according to the indicators’ combinations depending on certain calculations, volumes and correlations between more than one indicator and according to a specified function that weights the indicators’ signal.

The CIF values are represented graphically via four lines
(short .middle, long, current).


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Navigator

Navigator

The Navigator provides a quick and appropriate various program resources employing. The Navigator is accessed through the menu items View - Navigator or by Ctrl + N key combination.

In addition to the Navigator button on the toolbar.

These folders include: Accounts - lists all your accounts (both demo and live). By a right-click the folder and choose Open a New Account you can open a new account. The trader has to be attentive which account is currently being in trading.
• Indicators - lists the regular used indicators at
ForexGen.

The trader can add an indicator just by double-click on it.

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Types of Trading Analysis

Types of Trading Analysis





There are 2 types of analysis you can take when approaching the forex:

Fundamental analysis and Technical analysis.
There has always been a constant debate as to which analysis is better, but to tell you the truth, you need to know a little bit of both.

It’s important to get a birds-eye view of the currency markets and learn how news affects prices. This is why you must follow and understand the daily forex news and market analysis of the professional currency analysts. Eventually, you’ll start to figure out what kind of role fundamental news will play in your trading. Fortunately, most of the Forex news and analysis is offered free on the Internet and we show you were the best ones are.

Fundamental analysis:

Fundamental analysis is a method used to evaluate the worth of a security by studying the financial data of the issuer. It scrutinizes the issuer’s income and expenses, assets and liabilities, management, and position in its industry. In other words, it focuses on the “basics” of the business.

If you want to use fundamentals to help you make an investment decision, you would rely heavily on an offering prospectus, annual and quarterly reports as well as any current news items relating to the issuer whose securities you are considering.
There follows parts of fundamental analysis will be described:

Types of charts ?
Graphical methods ?
Analytical methods ?
Technical indicators

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Protect Your Self

Protect Your Self



Before we go any further we are going to be 100% honest with you and tell you the following before you consider trading currencies:

All forex traders, and we mean a traders LOSE money on trades.
Ninety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.

Trading forex is not for the unemployed, those on low incomes, or who can’t afford to pay their electricity bill or afford to eat.
You should have at least $10,000 of trading capital (in a mini account) that you can afford to lose. Don’t expect to start an account with a few hundred dollars and expect to become a kazillionaire .

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Forex Lingo

Forex Lingo




As in any new skill that you learn, you need to learn the lingo…especially if you wish to woo your love’s heart.

You, the newbie, must know certain terms like the back of your hand before making your first trade.


What are the major currencies that you can trade?

Most trading platforms offer trading with:
EUR (Euro) .
JPY (Japanese Yen).
GBP (British Pound).
CHF (Swiss Franc).
Euro / US Dollar .
US Dollar / Japanese Yen .
British Pound / US Dollar .
US Dollar / Swiss Franc .

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Forex Broker

Forex Broker



The main participants in forex market can be divided into the following types: banks, some commercial companies and some foreign currency brokers.

Choosing a Broker :
Low Spreads - The spread, calculated in “pips”, is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time.


Forex brokers don’t charge a commission, so this difference is how they make money
Quality Institution - Unlike equity brokers,
forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need o provide).

Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC).

Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets.
These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems .


for more information > > >

Forex Terminology

Forex Terminology



Every trader in the Foreign Exchange ‘FOREX’ hopes to make a profit from something called ‘PIP’.
It may sound silly, but gains in pips can potentially make you over wealthy .
Take your time with this information, as it is required knowledge for all Forex traders.
Don’t even think about trading until you are comfortable with pip values and calculating profit and loss.




What is a pip ?
Pips stands for ‘PERCENTAGE IN PIONTS’. In the Forex trading, a ‘PIP’ is a unit of measurement which represents the smallest change in the price of currency or a currency pair. In the stock markets this is a classified as a ‘POINT’.
As a result, some folks refer to pips as points.
Pips are the last decimal point in an exchange rate or currency pair.
For the majority of currencies a ‘PIP’ is equal to 0.0001.
This means that if you purchased USD/CHF at 1.2310 and sold at 1.2330, you made 20 pips


USD/JPY:
110.78 .01 divided by exchange rate = pip value

USD/CHF:
1.1227 .0001 divided by exchange rate = pip value

GBP/USD:
1.9799 .0001 divided by exchange rate = pip value


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Order Types

Order Types




The term “order” refers to how you will enter or exit a trade.

Here we discuss the different types of orders that can be placed into the foreign exchange market .


Basic Order Types :
Market order :

A market order is an order to buy or sell at the current market price.

For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it’s (kinda) like using their

1-Click ordering .
Limit order :A limit order is an order placed to buy or sell at a certain price.

The order essentially contains two variables, price and duration.

For example, EUR/USD is currently trading at 1.2050.

You want to go long if the price reaches 1.2070.

You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class).


Stop-loss order :A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you.

A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order.

For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200 .

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The Foreign Exchange Market (FOREX)

The Foreign Exchange Market (FOREX)


What is FOREX?

The Foreign Exchange Market, better Known as FOREX, was established in 1971 when fixed currency exchanges were abolished.

Currencies became valued at ‘floating’ rates determined by supply and demand. The FOREX grew steadily throughout the 1970’s, but with the technological advances of the 80’s FOREX expanded from trading levels of $70 billion a day to the current level of $2.6 trillion.

What Drives the forex market?

Different countries use different currencies, however cross-border has to take place. The FOREX is therefore a vehicle driven by the need to move monetary payments across border and transfer funds and value from one currency to another.

If the whole world used one currency there would be no need for the FOREX market .

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ForexGen Academy

ForexGen Academy



If you are an experienced ‘FOREX Trader or just a beginner looking for the opportunities offered in the ‘FOREX market, Forexgen has created ForexGen Academy to give you the chance to get a ‘FOREX education and improve your trading skills .

How to Get StartedPeople are introduced to the exciting world of foreign exchange in many ways: friends, current events, newspapers, television, and many others.

Step 1: Practice makes perfectDemo trade.

The demo account was designed to help traders gain familiarity with the speed and movements of the market. When you are demo trading, you should learn how to:

1) place market orders to enter a trade,

2) place stop-loss orders to protect your positions .

Step 2: Study, Study, Study

Forex traders use fundamental analysis, technical analysis, quantitative analysis and sometimes a combination of all three to make their trading decisions.

Fundamental analysis involves the use of economic, financial and political news to determine trading decisions.

Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Step

3: Manage your money wisely

You should always be aware of the amount of money in your account before placing a trade. If you think a long-term trend is developing, then you should consider whether you have enough funds to maintain your margin and withstand any movements against your position(s) that may occur. We encourage everyone who opens an account with us to ask themselves the following questions prior to entering each trade:

1) How much am I willing to risk?

2) What is my upside and downside potential?

3) What are the market conditions?

(Is the market volatile or calm?)

4) What is the logic behind entering this trade?

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Forexgen Promotions

Forexgen Promotions



Claim Your BonusSpecial Promotion for New ClientsFree cash bonus when you open your new live account withen the next 30 days.

You will recieve a FREE cash bonus which will be added to your trading account. The cash bonus depends on the account type you open.

Account Type Free Cash Bonus

Mini Account 10% of your deposit maximum $250

Standard Account 10% of your deposit maximum $500

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Patterns Recognizer

Patterns Recognizer




Technical analysts in the Forex market found that by observing the candlesticks patterns, there are recurring patterns on the candlestick charts.

Such patterns are like recurring pictures on the candlestick charts and they tend to occur when a trend is about to end or reverse its direction.

The
patterns are a very good visual representation of the price movements and it give traders a good view of what is likely to happen next in the market.

Why are candlesticks
patterns important?
The answer for this question is quite simple because candlesticks represent true status of what is going on in the market at the current moment.

If a candlestick range is tight, this means that the market range for the trading day was very tight .
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Fibonacci Summary

Fibonacci Summary


There are 2 types of Fibonacci:
Fibonacci extension:the levels of Fibonacci extension will be 0, 0.382, 0.618, 1.000, 1.382, 1.618.many Traders can use the Fibonacci extension as profit taking level and when they watch the same levels ,they can buy or sell to enter the trade or cancel it,so this will become a due self-fulfilling execptation .

And the levels of Fibonacci retracement will be 0..236, 0.382, 0.500, 0.618, 0.764.a lot of traders use the Fibonacci retracement as support levels and when they watch the same levels,they can place buy and sell to enter the trade or cancel it so the support level becomes a self-fulfilling expectation .

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Simple Moving Average

Simple Moving Average

the simple moving average is formed by calculating the average price of a security over a particular number of periods.

While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.

For example: a 4-day simple moving average is calculated by adding the closing prices for the last 4 days and dividing the total by 4.

11+ 12 + 13 + 14 = 50

(50 / 4) = 12.5

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Exponential Moving Average

Exponential Moving Average

Exponential Moving Average (EMA) In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages).

exponential moving average reduce the lag by applying more weight to recent prices relative to older prices.

The weighting applied to the most recent price depends on the specified period of the moving average.
The shorter the exponential moving average’s period, the more weight that will be applied to the most recent price.
For example: a 10-period exponential moving average weighs the most recent price 18.18% while a 20-period
EMA weighs the most recent price 9.52%. As we will see, the calculating and exponential moving average is much harder than calculating an simple moving average.

The important thing to remember is that the exponential moving average puts more weight on recent prices. And so it will react quicker to recent price changes than a simple moving average.




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MA Summary

MA Summary

Ma summary Moving averages are one of the most famous tools and also the easisest tool used by many traders We can find many types of moving averages .

the 2 most popular types are: Simple Moving Average and Exponential Moving Average.

• The simple form of moving average (SMA) will be the simple moving average, is formed by computing the average = price of a security over a number of periods

• Exponential moving averages: EMA’s reduce the lag by applying more weight to recent prices relative to older prices.

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Bollinger Bands

Bollinger Bands

BOLLINGER BANDS The Bollinger bands are used to measure the market’s volatility. When the market is quiet, the bands contract; but when the market is LOUD, the bands expand. when the price was quiet, the bands were close together, but when the price moved up, the bands spread apart. If you want to learn more about the calculations of a Bollinger band, you can find all the informations that you need through this site www.bollingerbands.com '




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MACD

MACD

Moving Average Convergence Divergence (MACD)A trend indicator used to show the relation between two moving averages of prices .




with the MACD chart ,You will see three numbers .

1- the number of periods used to calculate the faster moving average.
2-the number of periods used to calculate the slower moving average .
3- the number of bars used to differentiate between the fast and slow moving averages .


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stochastics

stochastics

A stochastic is an oscillator that will help us measure the overbought and oversold conditions in the market . The Stochastic is an another indicator to help us to know where a trend will be ending. A technical indicator used to compare a security’s closing price to price range over a given period .



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Relative Strength Index

Relative Strength Index


Relative Strength Index (RSI)
Relative Strength Index, or RSI mean A technical
indicator used to compare the magnitude of recent gains to recent losses to determine overbought and oversold conditions in the market. . It can be calculated using the this formula:
Rsi=100 100- 1+rs
readings below 20 refer to oversold, while readings over 80 indicate overbought. the RSI ranges from 0 to 100 .



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Sunday, June 8, 2008

What is a Candlestick?

What is a Candlestick?

While we briefly covered candlestick charts in the previous lesson, we’ll now dig in a little and discuss them more in detail. First let’s do a quick review .
Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice.

A westerner by the name of Steve Nison “discovered” this secret technique on how to read charts from a fellow Japanese broker and Japanese candlesticks lived happily ever after .



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