WHY FOREXGEN ?
Monday, June 9, 2008
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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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.
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 .
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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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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