Archive for September, 2011

As Europe Wobbles, FX Options Signal Distress

Wednesday, September 28th, 2011
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Europe’s never-ending debt saga has investors girding for volatile, unsteady currency markets for years to come.
This debt crisis has also boosted bullish bets on the world’s safe havens—the U.S. dollar and yen — well into the next 24 months in the options market, reflecting fears that problems in the euro zone could linger for years.

“There’s enough uncertainty surrounding Europe and the global economic picture that higher volatility will likely become a feature of this market for some time. And it’s more or less across the board,” said Aroop Chatterjee, senior currency strategist at Barclays Capital in New York.

This is the second time in four years that the options market has signaled such a high level of anxiety. Right after U.S. investment bank Lehman Brothers collapsed in September 2008, currency option prices options spiked as investors paid a high premium for protection against the market’s big moves.

Now the same scenario is playing out. And it’s anyone’s guess as to when it ends.

Implied volatility on one-month euro/dollar options surged to 18.35 percent on Monday—the highest in at least 2 1/2 years. That 18 percent figure is equivalent to expectations for a roughly 5.2 percent move in the euro over the next 30 days, options strategists said.

Implied volatility, or “vol,” is a measure of the options market’s expectations of price movements.

Tuesday’s speculation about plans to boost the euro-zone bailout fund did little to ease fears that the fiscal crisis could drag on, especially after Germany and Spain poured cold water on the idea.

Euro vols did retreat on Tuesday, but have generally traded above the 50-day moving average since early September.

One- to two-year euro/dollar vols were also elevated at nearly 17 percent, generally an indication of stress.

Heightened volatility in the one- to two-year time frame is unusual, analysts said. Normally, investors tend to sell long-term volatility even as short-term volatility spikes.

The fact that volatility is heightened down the road suggests worry that markets will remain unsettled.

“You have basically entered a period where front-end vols have really gone up and the long end has sort of tracked the front end, which is a function of risk aversion,” said Aditya Bagaria, FX options strategist at Credit Suisse in London.

Emerging Markets Also See Worry

In a clear sign that European contagion is spooking investors, option hedges against some of the best-performing emerging market currencies have soared as well.

The rise in volatility there underscores the vulnerability of these assets in times of stress despite their strong economic fundamentals. Already, these markets are experiencing capital outflows, similar to 2008.

Vols on one-month U.S. dollar/Mexican peso pair exploded to 28.4 percent on Friday, a roughly 2 1/2 year high from as low as 8 percent in July.

Traders said one-week Mexican vols had traded as high as 45 percent.

The peso’s one-month vols, though, slipped to 24.8 percent on Tuesday, but the increase in volatility is consistent with the peso’s 8 percent drop against the dollar this year.

Vols in the Brazilian real, the Turkish lira and the South African rand have also surged, just as they did three years ago.

“Investors have realized that, if more than half of the world is to have (stalling) growth, emerging markets will not likely have an easy time,” said Stephen Jen, managing partner at hedge fund SLJ Macro Partners in London.

“I think (emerging market weakness) will continue, even if large interventions slow down the pace of the prospective dollar rally. Too many long-term real money investors are still in these long-EM trades for the dollar rally to be over.”

Risk Reversal Skews
Further signs of stress are evident in risk reversals, a key indicator of risk sentiment in the options market. Risk reversals in major currencies are all showing a strong bias to hold U.S. dollars — still considered a bet on safety.

One-month Australian dollar/U.S. dollar risk reversals, for instance, showed a “put” bias of -7.60 vols on Monday, the most extreme skew since at least 2007, but slipped on Tuesday. In general, put options suggest more investors are betting on a decline in the Aussie than a rise. The higher the number, the more bearish investors are on the currency.

Risk reversal skews favoring the greenback are further supported by positioning among hedge funds, such as Quaesta Capital in Zurich, Switzerland, which has increased long U.S. dollar positions in the last week in its $3 billion currency fund of funds.

Extreme long positioning in the Australian dollar also contributed to the negative bias. Real money accounts, Japanese retail investors and speculators are still clinging to Aussie net longs, though short-term investors are paring positions.

Copyright 2011 Thomson Reuters.

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EUR/USD Outlook – September 26-30

Saturday, September 24th, 2011
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Euro/dollar slid to a 7 month low. Greece continues to float between the next tranche of aid to the trenches. Will the fate of this debt hit country be known this week? Apart from Greece, the calendar is very busy and we will get hints on a possible rate cut by the ECB. Here is an outlook for the upcoming events, and an updated technical analysis for EUR/USD.

The big blow to the euro and to most currencies came from Ben Bernanke. The Fed announced “Operation Twist” but provided downbeat language on the economy and no further easing steps such as QE3. The impact of Bernanke on financial markets will likely accompany us for many months to come.

German Ifo Business Climate: Monday, 8:00. This survey from Europe’s No. 1 think tank always rocks the euro. It usually exceeds expectations and rises, but last month was different, with a drop to 108.7 points. This hurt the euro. Another slide to 107 points is expected now.
GfK German Consumer Climate: Tuesday, 6:00. This survey of 2000 consumers has been very stable in recent months, showing that German consumers are still doing well. A tick down from last month’s 5.2 points is expected now.
M3 Money Supply: Tuesday, 8:00. More money in circulation means more activity and more potential inflation. This is one of the factors that the ECB takes into consideration. The pace of expansion has slowed down to 2% last month. A similar number is likely now.
German CPI: Wednesday. This is the preliminary release, and is published separated for each German state. After remaining unchanged last month, this leading inflation indicator will likely show small drop in prices now, helping the ECB to lower the rates.
German Unemployment Change: Thursday, 7:55. This indicator is the best expression of the German strength. While it fell below expectations in recent months, this figure has still shown a steady drop in unemployment. A marginally bigger drop than last month’s -8K number is estimated now.
German Retail Sales: Friday, 6:00. After a big jump two months ago, no correction was seen, and retail sales continued rising, by 0.3%. Germany will likely see a small dip in volume now: 0.4%.
French Consumer Spending: Friday, 6:45. Europe’s second largest economy will publish consumer spending numbers for two months. After a few straight months of drops in spending, French consumers upped their spending two months ago by 1.2%. The figures that will be published now might offset each other, but the general direction will likely be more squeeze.
CPI Flash Estimate: Friday, 9:00. Inflation in the euro area has stabilized at a pace of 2.5%, lower than in previous months. Inflation is already less of a worry to the ECB, which changed its recent forecasts to balanced inflation and downside risks to growth. Lower inflation is expected now, but it will probably remain above the 2% target.
Unemployment Rate: Friday,9:00. The unemployment rate in the euro-zone has edged up to 10% after many months at 9.9%. The same depressing figure is expected now. Note that there is a big gap between countries like Spain, with more than 20% unemployment, and countries in the north with single digit figures.
* All times are GMT.

EUR/USD Technical Analysis

€/$ began the week with a big Sunday gap. When it finally closed the gap at around 1.3788 (discussed last week), the big plunge began. The pair fell as low as 1.3385 before consolidating.

Technical lines from top to bottom:

We start from a lower line this week. 1.3950 was a pivotal line when the pair traded in lower ranges. The pair got quite close to it a few weeks, and it remains strong resistance in the horizon. The swing low of 1.3838 held the pair and after EUR/USD fell to a six month low was a distinct line separating ranges during September.

1.3750 managed to cap the pair on a recovery attempt and is minor resistance. The round number of 1.37 is another minor resistance line at the moment. It served as resistance early in the year.

The low of 1.3630 seen in earlier is already more important resistance. 1.3550 provided support early in September and then switched to resistance after the fall.

The round number of 1.35 was a trough early in September remains a pivotal line. Very serious support is at 1.3430. This is a modification of the 1.3440 line, after the break. It separated ranges in a very clear way many times in the past, making it of very high importance.

The bottom at 1.3385 made just now is also of importance, as a break below this line will be a fresh 8 month low. Minor support is at 1.3322, which was a resistance line in the past.

More important resistance is at 1.3250 which held the pair early in the year. It’s followed by 1.3180 which worked as significant support in December 2010 and is now weak.

A key line before the round number of 1.30 is support at 1.3080. Towards the end of 2010, it prevented deeper falls.

The ultimate trough of 2011 at 1.2873.

I am bearish on EUR/USD.

Forex Weekly Outlook – September 26-30

Saturday, September 24th, 2011
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This was a week to forget for stock markets, but certainly a week to remember for dollar bulls, as the dollar returned to strength last seen 7 months ago. German Ifo Business Climate, US housing data and Unemployment are the major events this week. Here is an outlook on the upcoming market-movers.

Last week Bernanke announced $400 Billion Twist to bail out the US economy from its bad condition by buying $400 billion long term securities of six to 30 years and sell them in three years. The Fed believes this would encourage mortgage refinancing drawing investors to the real estate market. Will this move help the struggling economy? It currently sent stocks, commodities and most currencies plunging against the dollar.

Let’s Start

Euro-Zone German Ifo Business Climate: Monday, 8:00. Things took a turn for the worse amid a slowdown in the US economy and the financial crisis in the Euro-zone, German business confidence plunged to 108.7 in August, the worst drop since 2008, following 112.9 in the previous month. This reading was well below analysts estimations of 111.2 indicating a serious slowdown in recovery. A further decrease to 107.3 is expected.
US New Home Sales: Monday, 14:00. Sales of newU.S. homes dropped more than expected in July reaching 298,000 following 300,000 in June. Chip existing homes nearly diminish the feasibility of building new homes. The figure is expected to drop to 297,000.
US CB Consumer Confidence: Tuesday, 14:30. Consumers’ confidence in August slid 15 points to the lowest level since April 2009 reaching 44.5 after 59.2 in July. This drastic fall reflects Americans concerns over the weak job market conditions and rising prices of food and clothing decreasing consumer spending. A small increase to 46.8 is predicted.
US Core Durable Goods Orders: Wednesday, 12:30. Orders for long-lastingU.S. products excluding transportation, increased by 0.7% in July while Durable goods orders increased by 4.0%. This rise came after 0.6% increase in Core orders and 1.3% decrease in Durable goods orders. A smaller increase of 0.3% is forecasted.
US Unemployment Claims: Thursday, 12:30. The number of Americans filing initial claims for unemployment dropped less than predicted to 423,000 while a decline to 419,000 was estimated. This is the fifth week of increases indicating a mounting number of dismissals in a slowing economy.
US Pending Home Sales: Thursday, 14:00. Sales of existingU.S. homes dropped in July by 1.3% from a 2.4% gain in June while 0.8% fall was expected. This signifies the slowdown in the housing sector. Nevertheless economists are optimistic claiming the market will offer favorable conditions for potential buyers. A decrease of -1.9% is forecasted.
Canadian GDP: Friday, 12:30. The Canadian economy contracted 0.4% in the second quarter after Japan’s earthquake and tsunami but on a monthly base GDP increased by 0.2% in June following a 0.3% drop in May. An increase of 0.3% is expected now.
*All times are GMT.

Equities With Dividends Over 10%

Friday, September 16th, 2011
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Dividend paying stocks with yields above 10% are unusual. Fortunately, there are many Closed-End Funds (CEFs) trading at a discount to net asset value (NAV) with dividends exceeding 10%.

Below is a table of 30 CEFs with dividend payouts exceeding 10%, which trade at a discount, and have expense ratios below 2.0%…

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Forex Trading, Exactly Where Do Clients Go?

Saturday, September 10th, 2011
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Fx Trading utilizes currency and stock markets from a variety of countries to create a trading market where millions and millions are traded every day. This marketplace is comparable to the stock marketplace, as people purchase and sell, but the market and the over all results are a lot much bigger. Those involved within the forex investing markets consist of the Deutsche bank, UBS, Citigroup, and other people like HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and nonetheless other people like Goldman Sachs, ABN Amro, Morgan Stanley, and so on.

To get engaged in the forex investing markets, contacting any of these big broker assistance firms is going to be inside your best interest. Certain, anybody can get engaged within the forex market, but it does take time to understand about what is hot, what is not, and just where you should location your cash at this time.

International banks are the markets greatest users on the fx markets, as they have millions of dollars to invest every day, to earn interest and this is just 1 technique of how banks make money on the cash you save in their bank. Consider the bank that you deal with all of the time. Do you realize if you can go there, and acquire cash from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in fx trading. If you have to know if your bank is involved in forex trading, you are able to ask any manager or you can look at the financial information sheets that banks are to report towards the public on a quarterly baiss.

If you’re new towards the forex market, it’s essential to realize there is no one individual or 1 bank that controls all the trades that occur within the fx markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most frequently exchanged within the fx markets consist of those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and also the Swiss franc also as the Australian dollar. These are merely a few of the currencies which are dealt on the forex markets, with numerous other counties currencies to be included as well. The main trading centers for the forex trading investing arenas are located in Tokyo, New York and in London but with other smaller trading centers situated believed out the world as well.

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The Forex Trading Apprentice Fast Forex Profits 3 FREE Forex Systems By Alberto Pau

Saturday, September 10th, 2011
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Download these Forex Trading Apprentice 3 FREE Forex Systems just now. Watch this 24 minutes Forex Profit Multiplier Presentation FREE that shows how to identify high probability trades on the 4 hour charts in just 60 seconds. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Forex Trading Apprentice FREE System- 50-70 Pips every day with little to no risk? Here Are 3 Quick Fix Forex Strategies To Make You Filthy Rich…In An Up Or Down Economy! This is a set of highly profitable Forex trading systems 100% FREE for you today…In this groundbreaking, Free Forex trading system expert trader Alberto Pau reveals:

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It’s totally no cost to you…check it out, you have nothing to lose! Alberto Pau: I’ve been getting a lot of feedback from people with questions about the upcoming release of the Forex Trading Apprentice Formula. People are really excited and want to grab this. A lot of people have been asking me what is this going to cost. That seems like a fair question. BUT it’s the wrong question!!!!

You have to ask yourself what is important for you in your life. Imagine being finally Free from having to go to work every day and earn an income just enough to pay the bills…what if you could make as much money as you wish any time of the day…Imagine not having THAT problem any more. What is that worth?

What is changing your life worth? Another important question you should ask yourself – what is it worth to you to achieve full and true Freedom? What is it worth being able to do what *YOU* want with your life? What is it worth to you having the money side of life handled once and for all?

For many people I would assume the answer is simple! It’s PRICELESS! You see, mastering Forex trading is like having super powers. You will make incredible amounts of money with incredibly little work! You will learn to know if a trade is profitable even before you place it. SO you don’t have to stress “oh what if the trade hits the stop loss and I lose money”…

NO! You will know the outcome beforehand. 90% of the work can be done before even before risking any of your money! That way YOU will be able to PREDICT the market, and YOU will be able to PROFIT from it!

The Forex Trading Apprentice is like a mathematical formula that gets the job done every time once you know how to mix the ingredients right! Do you see what I’m saying here? You need to change your look on Forex trading a little bit. Price action systems is the tool masters use. Price action can change your life – but not if you use it wrong.

Think about this: if you could BUY the Freedom of not having to worry about money anymore, would you PAY $500.00 for it? Of course you would! (Probably) And no! I’m not Santa Claus, but I’m going to give you something else. I’ll give you the system to make those insane profits. You know – I’m going to teach you how to fish rather than just giving you the fish! And THAT is worth more than just a fish!

But don’t worry – the Forex Trading Apprentice Formula isn’t going to cost anywhere near $500.00. But it’s worth that AT LEAST 20 times that amount! Of course, this all depends on what price you put on YOUR life.

Gold: Why You Should Own This Symbol Of Wealth As A Hedge Against An Unstable Economy

Friday, September 9th, 2011
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I got into an argument with an investor friend of mine the other day over buying gold where can you find gold as an investment. He couldn’t see the value in it, and I was quite surprised at his attitude.

“What can you do with it?” he asked. “You can’t take it down to McDonald’s, for example, and shave off a few pieces and buy a hamburger. You can’t trade with it. You can’t do ANYTHING with it.”

His contention was that it really had no value…at least I THINK that was his argument.

Quite frankly, I’ve never heard anybody take this kind of stance before. Gold gold rates has been the basis of all trade, in all civilizations, since the dawn of time. The luster of gold, its seemingly indestructible and unchangeable nature, has grabbed the heart of Man and evoked deep feelings throughout history.

The dollar was backed in gold up until 1933 when Franklin Delano Roosevelt took America off the Gold Standard and set the stage for inflation. When the dollar was tied into a given quantity of gold, its value was pretty much “set in stone”, so to speak, but once a dollar bill could no longer be pegged to gold its value could change…

So, why own gold buy gold? I mean not as a contract, a futures commodity–but the metal itself?

Of all the Transition Metals, gold is certainly the most greatly desired. Since the beginning of recorded history, gold has been in use in many different works of art, coinage, and, of course, jewelry. Occurring as grains in rocks and in alluvial deposits, gold is shiny, soft, and dense. It is known to be a ductile and malleable as the pure metal. Probably its lustrous deep yellow color, more than anything else, has captured the heart and imagination…sometimes to the destruction of many.

Of all its physical properties, its density (19.30 g.cm-3), Melting Point: 1064.18°C, 1947.52°F, 1337.33°K, Boiling Point: 2856°C, 5173°F, 3129°K., as well as its lack of chemical reactivity (it does not tarnish or oxidize), lend it the kind of stability and aura of permanence that has built civilizations. Gold is chemically unaffected by air or moisture.

The term “gold” was derived from “geolu”, an Old English Anglo-Saxon word which means “yellow”. Its symbol “Au”, on the other hand, originated from “aurum”, the Latin word for “gold”. Gold may have been “discovered” in the year 1848 in California, but History tells us that this precious metal had already been used extensively by the ancient Egyptians, Romans, Greeks, Chinese, and South Americans for millenia.

Throughout history, gold has served as a measure of value and a symbol of wealth. It is one of the coinage metals (along with silver and copper). It is used, customarily and legally, as a means of payment or a medium of exchange that crosses the boundaries of all nations (and times, for that matter). Gram and troy weight are the units of measurement used for gold. To indicate the amount of gold present in, say, a piece of jewelry, the term “carat” is used. A necklace, for instance, that is 24 carats means that it is made of pure gold.

While the price of gold is determined through trading in the derivatives and gold markets, its daily benchmark price is provided in a procedure called the London Gold Fix in which its price is determined each business day on the London market. The fixing is done twice – once in the morning and another in the afternoon. The latter actually was introduced about 49 years after the procedure itself came into being, as a means of providing a price when US markets are open. This gold-price fixing procedure is done by the five members of the London Gold Market Fixing Ltd., namely The Bank of Nova Scotia, Barclays Capital, Deutsche Bank AG London, HSBC, and Societe Generale Corporate & Investment Banking.

Ok, there you have it. But the question remains: Why own gold — the metal itself, I mean? Well, here’s the argument I used with my friend:

Let’s say you are a Southern plantation owner in the pre-Civil War South. You own an enormous mansion, vast land holdings, livestock, cotton fields, and, of course slaves. But, let’s say you also own a bag of gold coins, which you buried in a secret hideaway, say near an unusual looking rock beside a river that flows through your property. Then the Civil War destroys everything. Your Confederate money is no good, your mansion is destroyed, carpetbaggers have taken the rest. What do you have left?

Answer: that bag of gold which…

Which you dig up and trade for Union dollars and go “back into business” again.

That’s the value of gold. Every economy, every nation throughout history has recognized its value. Currencies become worthless. Governments fall, and are replaced. But all recognize the value of gold. Gold is what you want to own in times of instability.

“Well,” my buddy said when he saw the logic of that argument, “the problem with people who buy and bury gold is that other people follow them, kill them and steal it.” He said this with a humorous glint in his eye, not wishing to lose the argument. But he did have a point.

Such is our fascination with gold, that draws out the worst…and best, from the heart of Man.

Learn How Millionaires Are Made By Using Online Forex Trading Systems

Thursday, September 8th, 2011
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Discover the FX Speed Trader Robot that turned $500 into $969K in 14 months. Learn this Currency Sniper secret by Terry Marshall that shows how to double your account within 48 months. Watch the Forex Income Engine Trade Alert Software FREE forex training videos that show how to reduce risk to zero in a trade plus how to filter out the bad trades from the very start. The Foreign Exchange Market called in short the Forex Market is the hottest money market right now. Daily something like $3 trillion get exchanged in this market. Just compared this volume of trading with any other market. Infact, even if you combine all the stock markets in the world, they don’t even reach one tenth of this daily trading volume.

In the last decade, many millionaires were made in the forex market. It is being said, many more millionaires will be made in this decade. Forex trading is being called the Best Home Based Business of the 21st Century. You too can trade forex right from your kitchen table and make money.

Well, the actual truth is that only those traders are able to consistently able to make money in the forex market who have proven and tested online forex trading systems that they have been using for sometimes. You see, without a forex trading system you can’t make any money in the market.

A forex trading system is a set of rules that let’s you know when you should enter the market and when you should exit plus how to manage your risk. Without having such a system, you will always be like a blind man at the mercy of the market. But developing such a system is also not easy. It requires a lot of trading experience plus needs a lot of testing in the live market to know how well the system trades.

So what to do? Search online for forex millionaire trading systems. You will came across a number of them. Make a list and check that the systems that you have short listed have a money back guarantee. Pick the top system on your list and test it on your demo account. See how easy it is to trade. After one month make an audit of the trades that you had made on your demo account with that system.

If you find the system difficult to trade, get a refund and test the second system in your list. After a few tries, you will be able to find a system that is easy for you to trade and can help you with your journey of becoming a millionaire forex trader. Always remember, the choice of the right online forex trading system is very important for you if you want to become a millionaire forex trader! Good Luck!

9 FREE Forex Trading Systems

Thursday, September 8th, 2011
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Download these 9 Forex Trading Systems FREE. Learn how to reduce risk to zero in a trade with this Forex Income Engine Trade Alert Software FREE forex training videos. In these FREE forex training videos you will learn unusual trading tricks and techniques that can give you the winners edge. On your own you will take years to figure out these unusual simple trading techniques but once you watch these FREE forex training videos, you will know them and use them in your trading. Get these 3 Swing Trading Systems FREE. If you are a new forex trader looking for FREE Forex Trading Systems then look no more. After reading this article, you can download 9 different Forex Trading Systems that trade with different strategies. But always remember the importance of thoroughly getting familiar with a new system on your demo account first.

Many traders want to rush and start making money right away. Nothing can be more dangerous than this. Learn the importance of practice. The more you are going to practice, the higher the chances of you becoming a winner. This is what the pro tennis players or the pro golf players do. They practice a lot before the tournament and hon their skills before they enter into the live arena.

This is what you will get with this FREE Forex eBook:

1. Forex Profit System

2. ‘Scalp’ Trading the 1min Charts System

3. Moving Average Intraday System

4. The Day Trade Forex System

5. “Micro Trading” the 1 Minute Chart System

6. Tom Demark FX System

7. The Forex News Trading System

8. The CI System

9. Forex Intraday Pivots Trading System

Some of them are pretty simple to trade. All the 9 systems have been explained in detail with proper screen shots. Choose anyone of them and practice with it on your demo account. See how easy it is to trade with that strategy. Can you find good trades with that system? How about the stop loss? Does the strategy tells you where to place the stop loss and stuff like that. This will be your training as well in evaluating a strategy.

If you like a strategy from the 9 above, practice more with it. See how much return you can make per month with that strategy. The best systems are those that are easy to trade and do not take more than 1-2 hours daily to trade. There is no point in mastering a forex trading system that takes 6-10 hours to trade daily. The point is to make money as quickly as possible.

Once, you have practiced and tested the above Forex Trading Systems, open a micro account with a deposit of $250 and trade live with anyone of them using micro lots. This will tell you how the system will work under the live market conditions. Whatever, trading anyone of these forex trading systems will be a good training for you that will help you become a successful trader in a few months!

Types Of Charts Used On Forex Market.

Thursday, September 8th, 2011
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The most widely used and relatively simple method of graphical analysis of the prices is bar chart. Bar chart reflects changes in prices over a specified period of time.

However, despite of the fact that this graph represents all four rates, it is not without of drawbacks. During the actual time period the price could vary by up sticks uneven: in some price intervals trading volumes are significantly greater than in others.

Therefore, its thickness should not be uniform. Ideally, it should be thicker where the relevant price was the highest number of transactions, and thinner where the transactions were very few. Such non-uniform bar would contain more information and a uniform bar is eroded history of price changes. But the use of non-uniform thickness will make the graph difficult for the visual analysis.

In addition, the visual perception of bar-graphs depends strongly on the density of the graph and the length of the visible period. Extended schedule when there is a long distance between the bars has less visual information, and covers a smaller time period.

Tighter schedule, when bars are located close to each other, will give a clearer “picture” and will represent a longer period of time. Traders want to see the forecast for the longer period of time because it is very important to have not only the short time forecast but also long time forecasts.

It must be remembered that the bar is silent and says nothing about how during the period of time prices varied. In principle, a uniform motion from one extreme point to another and some fluctuation along the entire length of bars.

Therefore, the latter may contain a lot of statistical noise. For example, if the maximum value was reached very quickly and at low volumes, but most transactions were made at the bottom, it is clear that this situation is not seen on the schedule.

Nevertheless, the fact that the price reaches its peak, it is important for the market because the participants remember such extreme prices and in the future they are guided by them. Prices can vary over a period of time, which shows a bar. The nature of price changes in each case is quite different.

Those who are trading no doubt have to check out this daily forex signals site – there one will learn much helpful info which can greatly improve one’s trading efficiency. Also, a Forex investor might find helpful forex managed accounts.

This is important, don’t forget that we are living in the world where information quickly enhances the quality of our life. Take advantage of the Internet and search for managed forex accounts if you need this type of info.

If you are properly armed with the information in your sphere of interest you can rest assured that you will always find the solution to any bad situation. So, please make sure to visit this blog on a regular basis or – the least time consuming way of doing it – sign up for its RSS feed. Thus you will have a direct shortcut to the latest info updates here. Blogging can be helpful, you just need to understand how to use blogging for the currency exchange market.