Support and resistance as horizontal lines - forex trading times uk

Support and resistance as horizontal lines ~ forex trading times uk

 The basic technical measurement of horizontal support and resistance provides the ground floor of technical analysis. Whenever you look at a currency pair, you have to ask where support is and where resistance is. The answers provide the first mapping of the market.

Support is where the price stops falling, and resistance is where it stops rising. The process for locating support and resistance is fairly straight forward. In picture 1 includes several support and resistance lines. Those lines that form floors and ceilings are outer support and resistance containing the price action within a range. Those lines that are inside these larger lines are inner support and resistance.

What is most significant about horizontal support and resistance lines is that they are not lagging. In contrast to indicators, they are projections and form psychological hurdle ones. When price establishes support or resistance, the market recognizes that location as a zone or hurdle that has to be overcome. The immediate future price movements need to probe and penetrate a support or resistance line. One of the first principles of trading forex is to locate a trade near support or resistance.

Once we know where horizontal support and resistance are, we need to also determine the strength of that support and resistance. There are different ways of forming an opinion about the level of strength in the S/R lines- In Picture.1, we can see that the 1.1649 level offers strong support because over 18 months that price point was unable to be broken down and the euro–U.S. dollar (EURUSD) held above it. In contrast, the resistance levels show only one test of the previous high. The trader can conclude that there is greater strength on the support side at 1.1649. If the price moved toward the previous high (1.3689 on 2004/12/01) and failed to go through it, confidence that resistance was stronger at that level would increase. The time interval on a chart also can be used to weight one’s confidence about how strong the S/R levels are. The longer time frames such as monthly and weekly resistance and support are more robust. After all, a great deal of money has had the chance to go through those levels but did not.

In constructing support and resistance lines, the trader needs to realize that there is a degree of judgment. In picture 1, the support and resistance lines are drawn where there appears to be a set of highs and lows. Some of the candlewicks are penetrating the lines. Those penetrations would be viewed as creating temporary levels of new support and resistance, with the stronger levels being those connecting more points. Drawing support and resistance lines need to be done with the perspective that these are zones and not exact lines.

In picture 1, the breakout of the level of 1:3689 has produced a bullish movement important.

Support and resistance as horizontal lines

In picture 2 USD / JPY (above)Horizontal levels based on support and resistance monthly. Note how the breaking of a level causes a reaction of the price.

Support and resistance as horizontal lines quiz

1. What is Support line?

• Support is where the price stops falling
• Vertical line
• Trend line down that touches imaginary points

2. What is the Resistance line?

• A diagonal line
• Trend line up that touches imaginary points
• Resistance is where it stops rising

3. What he needs a projection of the price?

• Draw a trend line
• The last five Bid and Ask
• Penetrate a support or resistance line

Score =

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Fibonacci levels support and resistance - forex trading hours utc

Fibonacci levels support and resistance ~ forex trading hours utc

The Fibonacci sequence describes key ratios from growth in plants, human anatomy, and so on. The forex application is to price movements, which appears to realize Fibonacci ratios. This is particularly obvious on larger time frames such as weekly, daily, and 4-hour time charts. A large move from a low to a high is often followed by an attempt of the price to move back or “retrace” the original move. These areas of rest are Fibonacci points. For example, let’s look at a chart showing a price move on the euro–U.S. dollar (EURUSD) 4H chart chart (see picture1).

We can see that the EURUSD made a low at 1.3525 and then proceeded to forma high at 1.3637. Once this move was completed, the trader can use a Fibonacci (Fib) graphic tool, which is available on all platforms to draw a Fib line. The Fibonacci retracement are:

23.6% the shallowest of the retracements;

38.2% this is the first line of defense of the current trend.;

50% the neutral point of any retracement.;

61.8% retracing to this typically signals a breakdown in the trend;

100% matching the move;

other potential lines are: 138.2% , 161.8%, 200%.

Since the price started from the low, the Fib tool assigns the 100 percent level to this origin point. The best way to interpret this is to think of the price going all the way back home to where it started. It would achieve a 100 percent retracement. Once the low and the high are connected, the Fib graphic tool draws the lines and projects it out. Notice that these Fib lines are extended into the future. The trader doesn’t know if the price will get there! The trader makes the assumption that if the price is able to get to a Fib level, it will experience strong support or resistance. Also, if the price is able to probe a future Fib level but fails to go through it, the trader can make a reliable assumption that there is key support at that level.The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back.

The Fibonacci levels are maps of potential support or resistance. They are areas where great care should be taken by the trader. Rest assured that any professional trader knows where the key Fib levels are. Perhaps because these levels are projected and therefore known in advance, they generate a self-fulfilling process and increase in importance.

The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back

Fibonacci Quiz

1. What are the Fibonacci levels ?

• 0.236%, 38.2%, 50%, 61.8%
• 1.23%, 0.38%, 0.61%, 0.76%
• 50.0%, 12.3%, 63.8%, 92.7%

2. What may represent Fibonacci levels?

• Fibonacci levels are only imaginary points
• Fibonacci leveles are dynamic points
• Fibonacci levels are potential areas support or resistance

3. (Fib) Graphic tool what to do?

• Draws magic lines for fx prediction.
• Draws the ratio of Elliott wave
• Draws the ratio lines and projects it out

4. What are the best time frame where to apply Fibonacci lines?

• All time frame are good
• 4H, daily, weekly, monthly
• 1 min, 1 sec, 5 min, 10 min

Score =

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19 octombrie 1987 LUNEA NEAGRA - forex trading demo software download

19 octombrie 1987 LUNEA NEAGRA ~ forex trading demo software download

Azi, este prima data cand ziua de 19 octombrie pic? într-o zi de luni, dupa anul 2009.  Azi îns? v? invit s? v? aduce?i aminte de ziua de luni, 19 octombrie 1987 cand pia?a de capital a înregistrat o c?dere de 508 puncte într-o singur? sesiune de tranzac?ionare. Indicele Dow Jhones Average a pierdut atunci, nu mai pu?in de 22,6 %. Cea mai mare pierdere procentual? înregistrat? vre-o dat? într-o singura zi, închizand ziua de tranzac?ionare  la 1 738.74.

Pe prima pagina a ziarului New York Times a doua zi puteam citi “Does 1987 Equal 1929?”.
Ziua de luni, 19 octombrie 1987 a r?mas în istoria burselor sub denumirea de Lunea Neagr?. Din cand în cand este bine s? ne reamintim aceste momente ale trecutului pentru c? ele, invariabil, se repet? ?i a?a cum am tot scris pe acest blog, de atata timp, luna octombrie 2015 este momentul perfect din punct de vedere al ciclurilor economice ca pia?a s? înregistreze startul unei crize mult mai grave decat cea din 2008. O criz? ce poate s? se prelungeasc? pan? în anul 2020. O criz? nu doar economic? ci ?i social politic?. 

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Euro din perspectiva datelor fundamentale à n perioada 19 23 octombrie - forex trading diary software

Euro din perspectiva datelor fundamentale à n perioada 19 23 octombrie ~ forex trading diary software

Moneda european? versus dolarul american, continu? s? valseze lene? în spa?iul îngust al unui range, pe care noi l-am delimitat foarte exact în analizele s?pt?manale anterioare. Nu vom relua argumentele tehnice în acest material ci ne vom concentra pu?in pe calendarul datelor fundamentale ce vor jalona parcursul monedei europene în s?pt?mana 19- 23 octombrie.
Luni la ora 13, ora Romaniei , vom avea raportul  lunar al Bundesbank. Banca Central? a Germaniei î?i va publica
evaluarea ampl? asupra economiei, perspectivele asupra infla?iei, a ocup?rii for?ei de munc? etc. Va fi interesant s? vedem
ce repercursiuni va genera scandalul de la VW ?i dac? Jens Weidemann ?i colegii lui se pot teme de consecin?e negative.
Mar?i, 20 octombrie , tot din Germania vom primi datele PPI la ora 9 diminea?a. Vom vedea  cum pre?urile de produc?ie se
insereaz? în pre?urile de consum ?i aceasta ne va oferi indica?ii extrem de importante. Pre?urile au sc?zut cu 0,5% în
luna august, pia?a se a?teapt? ca pentru luna noiembrie s? avem un -0,1%.
Mar?i vom avea ?i datele Contului Curent, ce vor fi date publicit??ii la ora 11.00. Datorit? exporturilor din Germania, Zona Euro
avea un excedent de cont curent de 22,6 miliarde în luna iulie. O cifr? u?or mai scazut? ar putea s? se înregistreze pentru luna august,
aproximativ 20.10 miliarde.
Joi, 22 octombrie, la ora 15.30 vom avea decizia BCE asupra ratei de doband? ?i conferin?a de pres? a lui Mario Draghi. Ne a?tept?m ca în acest moment s? nu asist?m la nici o modificare a politicii monetare a BCE. Rata de doband? la 0,05%, rata la depozit la -0,20%, ?i programul QE neschimbat, la 60 de miliarde de Euro pe luna, pan? în septembrie 2016. Cu toate acestea, avand în vedere deteriorarea multor indicatori economici în Zona Euro, problemele din China ?i cre?terea cursului de schimb, exist? specula?ii c? BCE va oferi un indiciu asupra inten?iilor de ac?iune. Comentarii recente arat? c? BCE ezit? s? fac? mai mult în acest moment dar nimic nu este sigur, cert este c? întreaga s?pt?man? de tranzac?ionare pe moneda european? va sta sub semnul acestei zile de joi.
Tot joi vom înregistra datele privind încrederea consumatorilor. Acest raport prezentat de cei de la Eurostat cu -7 puncte în luna septembrie, în fapt ne prezint? pesimismul consumatorilor europeni, care au v?zut trei luni la rand sc?deri consecutive. Pia?a se a?teapt? ca s? înregistr?m înca o data -7.
Vineri, 23 octombrie, începand cu ora 10 vom afla datele PMI pentru Fran?a, Germania ?i pentru întreaga Zona Euro.
În sfar?it, tot vineri vom primi datele privind climatul de afaceri din Belgia ?i chiar dac? aceste date economice provin dintr-o ?ar? mic?, indicatorul serve?te ca un conduc?tor de trend pentru economie în general în Zona Euro. Ultimul nivel înregistrat a fost de -6.8 puncte în luna septembrie, reflectand agravarea condi?iilor economice. Pia?a estimeaz? c? noile date vor ie?i la -6.6.

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Forex Trading - forex market hours uk

Forex Trading ~ forex market hours uk

What is Forex trading?

Forex (Foreign Exchange)is a trading/transaction that trade currency of a country against another country’s currency that involved main currency trading in the world for 24 hours straight (please refer to trading hours).

The Forex trading is open in New Zealand and Australia beginning at 5.00 – 14.00 WIB, direct to Asia’s Japan, Singapore and Hong Kong that begins at 07.00 – 16.00 WIB, then followed by Europe’s Germany and UK that begins at 13.00 – 22.00 WIB, followed by America’s market from 20.30 – 10.30 WIB. History reveals that even central bank that owned by biggest foreign currency countries can be beat by the power of forex market.

According to BIS (Bank International for Settlement – world’s central bank) survey that had taken place at the end of 2012 the value of forex market trading achieved more than USD$1.4 Trillion per day. This proves that prospect of investing in virtual forex is very good.

Based on liquidity and how active the movement of high price, FOREX is also a popular alternative because ROI (Return On Investment or the revenue of investment that we have invested) and profit received more than the trade value generally (the average return more than 5% - 10% per month, it’s possible to get more than 100% per month for professional trader). FOREX is very risky because of the fast movement if you don’t have enough knowledge and ability to manage finance wisely.

Most of the currency traded are US Dollars, Pound sterling, Euro Yen, Franc Swiss, Dollar

Australia, Dollar Canada and Dollar New Zealand.

How a Forex Trade Get Revenu?

The revenue in forex trading is based on the last value of a pair of currency. The movement of the value is called PIP. For example, let’s say you want to trade EUR/USD currency. The selling price is 1.2035. Let’s say the price goes up to 1.2065 in 30 minutes. It means that you gain revenue of 30 PIP or point. One PIP will entitle you to a revenue value of US$10 based on the capital that you have invested. If you get revenue of 30 PIP, it means that you have gained US$300 in 30 minutes. If exchanged in Ringgit, you will gain around RM1,200 in only 30

minutes.

What is pip?

PIP means point. The word PIP is used by traders during transactions. How pip or point is counted? A pip is the last decimal place of a quotation. The Pip or Point as it is sometimes referred to depending on context is how we will measure our profit or loss.As each currency has its own value it is necessary to calculate the value of a pip for that particular currency. Let’s say you are trading GBP/USD currency at the opening price of 1.8750 and there has been a raise to 1.8800. It means that the GBP/USD pair has raise up to 50 points or pip.

Point/Pip in the USD value for majors currency:

Currency	Regular	Mini
EUR	10$	1$
Pound	10$	1$
AUS	10$	1$
CHF	7.60$	0.76$
CAD	7.30$	0.73$
Yen	8.45$	0.84$

What is leverege?

Leverage means ‘guaranteed margin’. For example if you have a capital in forex trading or stocks of 100usd. If one leverage charge is 1:100, it means that you have been given a right by a forex platform to buy 100 times larger than the capital that you have. It means that with value of 100usd you can be given a capital of 10,000usd. With this capital investment you can do transactions at a larger trading volume.

Every forex platform offers its own leverage. In this case the larger the leverage, the bigger profit

or loss. The smaller the leverage, the profit and loss is smaller. Below is an example of leverage:-

Leverage 1:100

Capital 100usd

Allowed investment 100usd x 100 = 10,000usd

What is contract Size?

Contract size is a digging factor in estimating the profit or loss. The value is fixed by a country at

the value of 10,000.

What is lot?

Lot is a contract in every transaction that you want to do. If I want to do a currency trading, let’s

say I buy EURO against USD, an opening value of the transaction will be stated in lot. Every

forex platform has a different lot value. Some has bigger opening lot value and some has smaller

opening lot value.

What is the spreads

In the currency markets It is the difference between BUY and SELL, or BID and ASK. Basically,

this is the difference between the market makers "selling" price (to its customers) and the value the market maker "buys" it from its clients. If an trader buys a currency and immediately sells it (and thus there is no change in the rate of trade), the trader will lose money. The reason for this is “the spread”. At any given moment, the amount that will be received in the counter currency when selling a unit of base currency will be lower than the amount of counter currency which is required to purchase a unit of base currency. For instance, the EUR/USD bid/ask currency rates at your

bank may be 1.2015/1.3015, representing a spread of 1,000 pips (percentage in points; one pip = 0.0001). Such a rate is much higher than the bid/ask currency rates that online Forex traders generally encounter, such as 1.2015/1.2020, with a spread of 5 pips. Generally, smaller spreads be more effective for forex traders since they require a smaller movement in currency rates in order to profit from a trade.

What is the Margin?

Brokers, Banks and or online forex trading companies require guarantee to be sure that the trader can pay in the event of a loss. The collateral is called the “margin” and is also known as minimal security in Foreign Exchange markets. In practice, it is a deposit to the traders account that is intended to cover any currency trading losses in the future.
Margin permits private traders to trade in markets that have high minimal units of trading, by allowing traders to hold a much larger position than their account value. Margin trading also enhances the amount of profit, but similarly enhances the rate of loss, beyond which taken without leveraging. 

Forex Trading Quiz

1. What is Forex market?

• Is the largest financial market in the world
• Futures Fx Markets Exchange
• Options FX Markets

2. What is the spread?

• The difference between the bid and the ask
• The minimum value of the currency pair
• The difference between open and closed price

3. What is the first currency in the pair?

• The numerator to calculate the ratio
• The first currency is the counter or quote currency
• The first currency in the pair is referred to as the base currency

4. What is a pip?

• Its the first decimal place of a quotation.
• A pip is the last decimal place of a quotation.
• Its the second decimal place of a quotation

Score =

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