9. How to learn Stochastic Oscillator indicator

9. How to learn Stochastic Oscillator indicator

By rhein   Monday, September 05, 2016   No comments:

 
Stochastic Oscillator consists of two lines called the% K and% D. The core of this indicator is% K itself while the% D is the HIGH SCHOOL of% K. It could be said that the%d line is as identifying the direction% K. If we look at the range of Stochastic Oscillator i.e. 0 – 100, it can be said that this indicator is not actually different from the RSI. It's just in a Stochastic calculation includes lowest prices, highest and closing price at a specified time.
Now how this indicator uses? Do the same with RSI? If the same why not use RSI? Well this question we will answer in class this time.

Views of its kind, is indeed the same as the Stochastic RSI indicator i.e. type Oscillator. The indicator uses the average of this model to accommodate the movement of saturated buy and sell of currency movements. But there are some things that are not owned by the RSI but owned Stochastic and likewise vice versa.

Review of sensitivitasnya, RSI is far more sensitive than Stochastic. So is the ease of reading. RSI has no smoother as%d on Stochastic. Thus can eliminate the effects of bias on

readings. However, the simplicity of the RSI can also be a drawback. RSI less fit if worn to know the ongoing trend on the currency. While the combined% K and% D on Stochastic can be a pretty powerful duet in predicting the trend is going on.

The other thing is not sesensitif due to Stochastic RSI then the false signal was not as often as on the RSI. This is why most traders prefer Stochasic in knowing the State of saturation of market buying and selling

. There is some information that we can get with a Stochastic Oscillator. But in general it is no different with information on RSI and high school. Stochastic Oscillator and it is actually a combination of both types of these indicators by means of different calculations. Overall, these indicators we can use to determine overbought/oversold State (meaning that the prediction of the trend for the long term), the intersection between the% K and% D (as a short term trend), and Bullish/Bearish centerline.

Overbought/Oversold/overbought State

oversold according to Stochastic retrieved when the line% K has entered restriction of 20 and 80 i.e. under 20 for oversold and above 80 for overbought. Same with the RSI instead? Please keep in mind also that the limitation of 20/80 is not absolute limits. May 30/70 or the other. So do not be surprised if I also use different limitations in determining conditions of overbought/oversold situation.

Overbought/oversold state this will trigger the ups and downs of prices in the long term. If the price increase is occurring but the stochastic overbought point already-nyadan started to leave the area, that means the pressure will occur at a rate of price increases which in not making the price back down to a new balance.

% K and% D Crossing 

in addition to the 20/80 area as in the example above, the intersection of% K and% D also can we use to determine a position Buy/Sell. There are times when we ran out of patience waiting for Stochastic limit touching 20/80 as we have specified. Although often accurate but in a wave motion is not necessarily when Stochastic moving down then he got around to entering the area 20 and likewise when he rides. Sometimes before it got past the area prices have again moving towards the reverse so that we lose the opportunity. Well, crossing the ala Sotchastic we can use as a determinant of Buy/Sell in the circumstances of this

. Just as the Moving Average indicator is used by looking at the crossing at two different periods, the same thing also can we apply Stochastic. The difference here is crossing that happened was between% K% D which is smoother than the% k.

As we know previously% D of% K MA is that no other reflection of price changes. So, in keeping with the nature of the MA in determining the change in trend, every intersection between%d with% K means is a change in the trend for a brief period in the future. A Bullish condition occurs when a line is%%d K cut from below and otherwise Bearish trend is obtained when the% K cut from the top. This State can only take place even when the two lines are in the overbought/oversold. If this happens, it means buying or selling pressure is indeed being strong so it will happen likely prices break through the boundaries of support and his ressistance.

Well, until the discussion here about the Stochastic Oscillator. Before we move on to other indicators, need I remind them again about the subject indicator character like Stochastic oscillator. The advantages at the same time a lack of indicators that move in a specified range like this is sensitivitasnya. So also in the Stochastic can be very sensitive when we use a period of
. The use of inappropriate period can take us in the wrong decision-making ultimately leads us on a great loss. For it is highly recommended You seek the best periods on these indicators for each of the pairs. Magnitude can vary. Increasingly long periods which are used then the indicator will be increasingly refined which means to-sensitivity – its skill will be reduced. It is advisable also to use Full Stochastic in usage because it is more delicate and can reduce the indicator that is too curly.

Analysis with Stochastic Oscillator lines

is a Stochastic Oscillator lines indicator for measuring the saturation of the market. However, when compared to the RSI, stochastic has advantages i.e. buy and sell signals have.

The market is said to be overbought when stochastick value above 80, and is said to be oversold if market value below 20.

Overbought condition, we can prepare-sip takes a position open buy, because the market will reverse direction is down. Oversold conditions and we can get ready to take a position open sell, because the market will reverse direction up.

There are two strategies that can be shared by using stochastic. IE:

1. Buy sell bottom top Strategy 
 

I.e. open a position when the market in conditions of saturated intersection occurs and stochastick.

Entry point Open buy is when the stochastic is under 20 and value line signal cut main line from above, so that the next line signal will be under the main line

. While the entry point to the Open Sell is when the stochastic value above 80 and signal line cuts the main line from the bottom, so that the next line signal will be above the main line.

2. Convergent strategy

Indicator stochastic can also experience the converging and diverging, therefore in the event of convergent or divergent we could use it as a time to enter the market.

Entry point open buy happening is when the graph is the more humble while stochasticknya rises, plus the presence of a signal line cuts the main line from the top.

To open a sell entry point, is when the graph of rising while his lowly stochastic, plus signal line cuts the main line from the bottom.

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8. Relative Strength Index

8. Relative Strength Index

By rhein   Monday, September 05, 2016   No comments:

 About its use, RSI can we use to know the following things:

positive/negative Divergence
Momentum
overbought Condition price movement/

oversold But among these three usability above, the usefulness of the first most often used by traders mainly because of the simpleness of the side so that the interpretation of the unbiased one RSI trader with other traders.

Ways of identifying overbought/oversold conditions with RSI is very simple. Simple but not necessarily easy. A general rule that applies is overbought conditions is obtained when the RSI line cut 70 and oversold when the RSI line 30 cut. Some books also recommends 20 to 80 as the limitations of OB and OS. It could just be for a particular currency in certain circumstances limit the overbought/oversold is at 40-60, so hinge where appropriate. Again to do trial and error. However as little guide, RSI will be increasingly accurate use on the market conditions of efficient and stable. Until now, the forex market is a market which is the most stable and efficient in its progression (more price determined by the market and highly liquid investments). So, more or less 30-70 restrictions still apply here though is not absolute.
False Signal on RSI

do not use as an indicator of RSI You without reading this part in advance!! Why? If you're pretty closely pay attention to the pictures presented above is surely some of you ask, why there are some circumstances where what is said to be different from the circumstances that the RSI is actually

? This is called a false signal signal false aliases. If we trace the formula of RSI can initially bawha we know basically the RSI moves with very sensitive. A sensitive indicator enables us to have a lot of "suggestion" in order to Buy/Sell according to the indicators in question. That's the upside. However it also became at once the boomerang for us because with the growing number of the suggestion that there will be more opportunity for misleading argument ensued that brought great loss.

By many chartist, RSI is not used alone as a leading indicator because of the nature of that sensitifnya. RSI is more often used as amplifier the suggestion by other indicators.

Then is there any way to eliminate the false signal on the RSI or at least reduce the error the RSI? There are. Of course there is. The simplest way is to find the best periods in the RSI shall we use. As we know that the greater the shared period of an indicator then the nature of sensitivity will be more bekurang. This also applies on the RSI thus we can use RSI with a period of slightly more than usual that is 14. Or can also use periods above it, for example the period 18.

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7. Moving Average Convergence Divergence

7. Moving Average Convergence Divergence

By rhein   Monday, September 05, 2016   No comments:

You will find out why the MACD is said to be taking the same formulation with MA. Let's look at the origin of the lines above (the MACD line, the trigger line, Histogram, and centerline):
MACD line. By default the MACD line is fromulasi: XMA12 – XMA26 i.e. the difference of XMA period 12 with XMA period 26. Therefore use the XMA, then the properties of the MACD will also resemble XMA properties providing early signals than any other MA

. The trigger line. The trigger line is the actual trigger line by default is XMA9

. Centerline. The usual line. Is the zero line that is limiting the negative with the histogram the histogram

positive. The histogram. Formulations for the histogram MACD line is: – the trigger line used as overbought/oversold indications. I would make clear later.

The other question is can we use another period for XMA MACD line and trigger line? Can. Of course it can. And if you've been pretty proficient you can explore with the use of a different period.

Probably crossed dipikiran us why should we bother using the MACD but only a reduction of XMA only. Not so in reality. Through a simple formulation such as MACD proved to be able to provide information not only trend will happen but it is more than that.

The MACD can be used to find out the transition momentum which is rated strong or weak, can also be used for overbought/oversold condition to find out on the market that could trigger turn of the
trend. MACD for Trend Changes

This is the typical uses of MA used as MACD MACD line and trigger line. How to read inbetween trend from Bullish towards the Bearish and contrary to the way we read the same passage trend on MA. The line used to read them is the MACd line and the trigger line.



Just like rules on the reading MA, on the rules applicable when the MACD MACD line cut the trigger line from bottom then it will change the trend towards the Bullish trend. And the reverse also applies when the MACD line cut the trigger line from the top, it will change the trend towards a Bearish trend
. Then what is his influence with the center line? Is there any influence of the MACD line and the intersection of the trigger line on change trend? Are there! The MACD line and the trigger line which cuts the centerline is also an indication of a change of trend. But in this case it is the change in trend in the long run.

Overbought and Oversold on MACD 

 



Of simple formulation on the MACD, we are not only able to determine the trend in the long term as well as short. There is one more indicator MACD i.e uses as overbought and oversold. Although rarely used, it's good we know it too. Just maybe you liked this indicator as overbought and oversold areas determining.

Overbought situation or saturated buy an indication that the market has been experiencing a saturation in the buying of the currency concerned. If this occurs then the foreseen price reductions will occur in a few moments later. So is oversold, meaning roughly the saturated selling. If an oversold then predicted would happen the strengthening of prices towards the point of resistance.

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6. Moving Average

6. Moving Average

By rhein   Monday, September 05, 2016   No comments:

MA himself is an indicator of a trend, i.e. the indicators used to determine the trend is happening in the market. Its use is extensive not only in the world of forex, if you never played the stock and using technical analysis, then sure MA is also used there. TOH is indeed technical analysis is universal and can be used in the sfemua market which uses the collective data.

MA also can be lowered again became the new indicator and completely different from the original indicator. The next time you start to learn the MACD (Moving Average Convergence Divergence) then you will know that one indicator was originally also from MA (just look at his name)
The moving average has three different variants, namely Simple Moving Average, Exponential Weighted Moving Average and the Moving Average. Each is a method of moving average, it's just a way of me-the average ratakannya that are different from each other. But in reading remains the same and it all soon followed, the rules applicable to the Moving Average. In fact since the early 2000 's, the Moving Average is not only developed in 3 variants, but being more than 5 variants tailored to its purpose only. But to narrow the space of discussion at once makes it easy for you in menginterprestasikan MA, the discussion only focused on these three types of MA.

Simple Moving Average (SMA)

Simple Moving Average (or commonly called Moving Average only or also abbreviated SMA) is the most simple Moving averages and weighted in the calculation does not use the movement against the closing price.

Note the picture of Simple Moving Average with the period 10 the following:

 

Though simple, effective enough in HIGH SCHOOL to determine the trend is happening in the market. Any way simple transcription.

Generally MA can be used for the following:

specify the trend
will happen. Determine support and resistance
. Smooth the other indicators are too jagged.

MA applications most widely used to predict the direction of the trend while the usefulness of the No. 2 and 3 not too widely used. This time the usefulness of the MA will emphasis focused on its usefulness to predict the trend. Whereas the usefulness of the No. 2 will be discussed in its own article will be inserted later.

Well, what if we use two HIGH SCHOOL with two different periods? The results will be very interesting. We'll soon know how the results:

 

Easier isn't it? With the use of two HIGH SCHOOL with two different periods we can more accurately predict where prices will again move. In the intersection between the price has occurred with both HIGH SCHOOL it will be ascertained the price right turned direction. In the image above, if MA with smaller period – i.e. period 10 if in the pictures below from the larger at MA-in the image represented by the period 15-then it is an indication of the price of being in the trend is down and vice versa when the period is smaller on top of a larger period then the trend of the currency rise was in

. Can we noted also that in the range between the two HIGH SCHOOLS getting bigger then it is likely the trend will continue and when a moment of a narrowing of the distance between them and until the intersection occurs again, it could be inferred that the boom is over. Easy isn't it?
About the MA period used, unfortunately until now there has not been a proper period search rules to wear. Indeed need a lot-a lot of practicing and trying (trial and error). You need to take note that the use of the period can vary according to the needs of the same pair though because it is the condition of a currency is a dynamic of time kewaktu. But based on experience, it is recommended not to use periods greater than 40. This meant a MA in order not to lose the deciding trend indicator sensitivitasnya as

. The greater period of MA MA resulting curve then will be more wide and insensitive in accommodating changes in prices. Conversely, the smaller the curve then MA MA period generated an increasingly growing sensitive. In this case too sensitive or not sensitive at all is not a good thing. The more sensitive a curve MA then more frequently false signals generated and make our trading loss. On the contrary, the more insensitive then signals to buy or sell into the less resulted in we can't trade.

Weighted Moving Average (WMA)

the first question that arises in the mind of the US is what is the difference FROM HIGH SCHOOL with WMA? Of course there are differences. Quite different that are classified into two parts. Not enough different that their names are similar because it uses the same methodology, only a different way

. Imagine this: which price has greater emphasis on weight in predicting the price front, the price of the last hour we have or the price two months ago we have? Of course that last one hour. At least the price movement is not the last hour will be more representative in predicting price before price when compared with two months ago.

Or if one is applicable to everyday life, take we're going to buy a cell phone. Of course we are going to find out the price of the mobile phone in the span of last time. Well, maybe we will pay more attention to the price of a day ago compared the price two weeks ago because according to save money we must have price movement will not vary much with price one week ago.

Weighting of assessment this is regulated by the WMA. In high school, the weighting of each good price two weeks ago or two days ago have the same scoring weight. On the WMA data last has a greater weight in value compared to the previous prices.

Weighting values in the WMA will depend on the length of the period that we set. Increasingly long periods assigned, then the greater weighting given to the latest data.

Exponential Moving Average (XMA).



XMA is the refinement of methods of high school. As we know that HIGH SCHOOL is the cause of the weighting resulting in the occurrence of the delay signal a change in trend. The awarding of the weights in the XMA just as well on a WMA, involving periods. It's just the difference if at the WMA is getting longer period that we use then the greater the weighted value of the last item, then on the contrary occurs i.e. XMA increasingly long periods we wear small then the last value weighting we wear.

SMA XMA, WMA, which is better?

Well this may be the last remaining question from the deliberations of the Moving Average. Where does this MA indicator variants among the most good?

Seen from the granting of a bullish or bearish signal indeed XMA is an indicator that can provide early signals than both. Of course because toh XMA indeed created for the mengeleminir kekekurangan variant of MA predecessor. But if the question is which is better, this becomes very relative depending on the wearer.

As a guide, the sensitifnya an indicator will indeed be very helpful to predict prices. But on the contrary, the more sensitive it will be more and more also false signal generated which means it could be the signal that was given was wrong or did not last long. That's why the return depends on the trader

. If you are a preferred game is more "safe", perhaps HIGH SCHOOL became more suitable than other variants. And vice versa if you like games that are more at risk (which also tells us the possibility of gain keunutungan will be as great as the risks that might happen) then the XMA would be better according to You because it is more responsive and faster in the giving of a signal. If you are an adherent of the "central axis", please use the WMA. A clear indicator is only an instrument, we who determine decisions based on hints the instrument

. In fact if done through the calculation of Mean Absolute Percentage Error (MAPE), XMA will give a smaller error than the other. But still it does not mean absolute XMA is the best. I deliberately did not include calculations with the MAPE because indeed very relative.

We will meet at the next chapter for the calculation by using other indicators. Until the news conference.

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5. Technical Indicator

5. Technical Indicator

By rhein   Monday, September 05, 2016   No comments:

Can generate profit in the forex trading business is the dream of every trader. "It's all a trader trying to win on every transaction.

In order to make each transaction into a win this is the role of an indispensable analysis. Hence the effort to improve the quality of this absolutely do. The most striking may be seen on a technical basis analysis.

To date there are a variety of techniques and ways of technical analysis, but the goal is same i.e. a victory.

Seen from independensinya, technical analysis is divided into 2 IE:

1. Blind Tecnical Analysis
Ie without using technical analysis indicators, in a blind analysis we only analyze a graph.

2. Tecnical Analysis with indicator
I.e. technical analysis using a variety of indicators to determine the direction of the next market.

The most widely used by traders was the model analysis with indicators. Almost over 90% of traders using the help indicator in predicting the direction of the market.

What exactly is an indicator that?

The indicator is a device or tool that provides data from the results of the calculation of a specific formula for measuring and assessing market conditions so that traders can predict the direction of the market.

In the world of forex trading terms this indicator, better known as forex indicators.

The number of forex indicators to the sat has reached hundreds and still will hold the new indicator created again for more help traders generate profit.

Seen from the period of manufacture of these forex indicators are divided into two, namely:

1. The classic indicators, for example: trend line, moving average

2. Modern indicators, such as: ADX, Ichimoku kinkoHiyo and other

then based on its function forex indicators divided into 3 namely:

1. Indicators to determine a trend, for example: parabolic SAR, moving averages, Bollinger band

2. Indicators for measuring the saturation of the market, for example: RSI, Stochastic Oscillator lines

3. Indicators to measure market conditions, for example: Bollinger bands, Volume

seen from the appearance of forex indicators are divided into two, namely:

1. Oscillator lines, namely indicators indicators that it looks in windows which his movement back and forth at a certain value limits. For example: RSI, Stochastic Oscillator lines

2. Trend indicators, i.e. indicators look blends in the graphic that is being analyzed, for example: moving average

in its use, usually when we do an analysis using only 1 to 3 different types of indicators only. As more and more of the indicators used, the cause of confusion and doubt to enter the market and open position.

In addition the use of indicators is also adjusted to the strategy that is used, for example, if we use the breakout strategy, then the necessary indicators are bollinger bands and the volume

. But at its core the use of these indicators should be prudent in accordance with early indicators that the function is to help traders predict market direction next.OK, but that alone is not enough. Who considers himself had become and decided to just stop learning will only make himself fall into a pit of failure and end up exactly the same as those who never learn. Loss. Of course you and I don't want isn't it? Then let's continue next lesson from our technical analysis
. In the technical analysis we know some of the devices that are used to predict the trend of price movement, knowing the support and overbought-oversold and the ressistance. The device basing on historical data that occurred in the past. His name is

indicator. The indicators created by many technical analysts and each has a specific purpose. Some experts created it to predict the trend is ongoing. Others create technical indicators to measure the OB and the OS. While there is also who created it to know the limitations of the soup and res.

the name of the technical indicators are also much the same with the name of its discoverer. For example an indicator named Bollinger Bands, created by John Bollinger, a Technical Analyst with Jewish descent.

But if you want to apply the indicator actually investigated the principle of statistical science in the calculation. Yes, statistics. But don't worry, if you don't like the stats (just like me), the good news is, you don't need to do the calculation manually one by one in the create indicator. All software providers forex charts are usually already provides a built in indicator in it and we just use it alone. There are even some platform that allows us to make the indicators themselves. Yes, of course that if you are already advanced. I myself have no interest to make the indicators themselves. For me the present indicators are already adequate.

There are more than 300 indicators that you can use when doing technical analysis. But in its application later you only need 2 to a maximum of 4 different types of indicators only kok. Not that the more indicators will be the better. It is not. That there is an increasingly confusing. Use sparingly and start your familiar with some of the indicators that you think are good
. On own Netdania there are over 20 different types of indicators that you can use. While at Capital GAIN amount there are about 15 fruit but lets you add your own indicators using an API (Application Programming Interface). In metatrader indicator you can add named Experts Advisor.

the picture below is a selection of the indicators in Metatrader :



It needs to be emphasised here that knowing a lot of indicators are not necessarily guarantee your trading profit. The essence of the use of indicators lies in How You combine one of the indicators with other indicators as well as timing and period you use. If likened to a Kingdom, then the indicator acts as Advisor for you in determining policy for Your Kingdom. You decide whether the advice was followed or not. The more the more Advisory votes are given. Sometimes it becomes not only make time but often misleading and erode our emotions.

Well, that's why you need to know and to choose indicators that best for yourself. Blessed are you because they already have a Forex learning to help you understand the different types of existing indicators. I myself had to spend months to understand the technical indicators when I first start the forex world. Because none are willing to teach me so I have to alt immersed in dozens of foreign forex websites and books thick just to mensarikan the use of a technical indicator. Bah ... If remember those times that it felt like crying alone (lho kok suddenly so melancholy ya ...). OK deh we continue our lessons on our first indicators i.e. Moving Average: The Mother of Indicators 

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4. Trend, Support-Ressistance, Overbought-Oversold

4. Trend, Support-Ressistance, Overbought-Oversold

By rhein   Monday, September 05, 2016   No comments:

TREND
In Forex, the only advantage we can get when the price moves. Yes. Only when the price moves. Whether he's moving up or moving down. Well the price tendency moves in one direction that is the trend. The trend itself is very useful and is the most important part in determining your position in the trade. Regarding the position in trading there are only two i.e. buy and sell, then any trend has only two types namely an uptrend and downtrend.
Let's look at the picture below:

Just imagine if we did not know how to look for trends in price movements like this. When prices are in a trend of down you open a buy position and vice versa when the price moves up, you open a sell position. Hegh ... At least you will not be able to sleep soundly in the circumstances because the position that snagged hehehe.




So to determine the trend is happening is very important and You should not ignore it. Ignore, then You will just be trading a gambling. Underestimate, then the market will kick you to painful days and sometimes months. Dependent social effects caused because you lose some money.

Most technical analysis is used to predict trend and the extent to which the trend will last. Some indicators like Moving averages or Parabolic SAR is also used to know are kemanakah market

running. There are however circumstances where the market does not move up or down commonly called side ways. In such circumstances, the open position buy or sell the same spend patience ultimately erode your emotions in trading. The situation of side ways usually happens when European or American markets are closed or are waiting for the big news. In such circumstances there is not much trading going on thus causing situations side ways going on. Well, avoid this situation.
There are two ways to read the forex trend, There is :

1. Using the trendline

Because of a trend is a move "PROGRESSIVELY" became over time, then for the rising trend can be identified by the presence of two valleys that sprout. As for the down trend characterized by the presence of an increasingly humble hilltop

. From the position of a point GETTING above, we can draw a trend line. For a graph of the trend lines are not crossed then that menendakan is going trend.

2. Using Indicator

Read the trend of using technical indicators much easier compared to draw it with the trend line. Indicators to identify trends is not a type of oscillator lines indicator.

Rules of the game to read the trend indicator is:

If indicators were below the graph, then the trend is bullish (trend rising), conversely, if the indicator is above the graph, then the trend is bearish (down trend).

Support and Ressistance
 

other Terms Ressistance you need to know is commonly called Support and Ressistance. Now Let's watch together when a trend is in progress. Let's say an uptrend. Is there a trend that never ends? Of course not. Any increase will reach its peak point to stop rising and then continues with the downturn. Likewise, when the price moves down, there will be a time when the decline stop and prices back up.

The points where the increase and decrease in the price of the stop called point support and the ressistance. The lower limit of normal price movement called Support while topped commonly referred to as limit ressistance.

The second point is very vital in your trading. Without knowing the point then we can only follow the trend without knowing that the actual age of the trend is not going to soon will be replaced with the opposite trend or a situation of side ways.

There are many ways of determining a point of support and ressitance. Some traders use indicators to figure it out. Others use the Fibonacci sequence while others use history of price movements in the past. I myself do not want to get too giddy to calculate support ressistance by using complicated calculations. Forex for me is enough complicated by complex psychology and analysis inside. So, why don't we just simplify? Sometimes simple is better.

The easiest way to determine support and ressistance is by knowing the lowest and highest price movements in the particular period in which, for example, one month. Consider the following graph:

 The above graph is a graph for GBPUSD on January 14, 2011 with a period of 1 hour. Note that the price moves up but does not exceed the area that had marked a line in blue. When the price moves up to approaching 1.5885 then as if the price of losing its ability to move up the pass, and vice versa when he moves down, the price can not penetrate the point which is the limit terrendahnya 1.5575. The point that's called 1.5885 ressistance and 1.5575 named

support. The second point is actually a reflection of psychological point recognized by market participants simultaneously. As we know together that essentially price movements are determined by the law of demman and supply (supply and demand). When demand rises while supply remains then the currency will strengthen and vice versa when supply and demand remain so much currency will weaken due to the abundance of supply in circulation in the market.

Well in case the price uptrend for example, then psychologically it will cause a big snowball tergulirnya and corroborate. When prices start creeping up then as traders will usually follow the trend is going on and take a new buy position. This has resulted in rising demand so prices continue to terdongkrak

up. But on the other side the majority of traders are also anticipating the end of the trend by taking a point certain ressistance. At that point they are no longer doing the buy action otherwise they would perform the action of profit taking by selling the currency they have bought before. Well, if everyone do so automatically reduced demand and rising currencies began to lose power. As a result, prices moved down again.

So the key here is how to determine a point of support and the same with point ressistance support ressistance market collectively. If we know these points then it would be much easier trading.

Then a new question now appears in our minds: could it be a point of support and can be penetrated by ressitance price movements? The answer is maybe. Hard indeed but maybe-just maybe.

In a State where buyer and seller win less, of course prices can return continues to rise despite already reaching the point of ressistancenya. In a State so then actually vote point of support and not uniform on the market a ressistance and is divided into several groups. One group estimates the price will not go up until a certain level while other groups argue the price can go up melewari level first group specified. If the second group win, of course support or ressistance

will break. What will happen when the point of the soup and the impregnable res? The answer is will form a point of support and new ressistance. The impregnable ressistance point will be a point of support while new ressistance point will return to form. Consider the following image:

 

This is a graph of the DOLLAR by using the 1-hour time frame. Appears on the area assigned yangi circles, the price broke through the point of ressistancenya. As a result the price move is getting away from the point the ressistance formed new ressistance point horizontal line at the top. The point of ressistance was once impregnable now changed to point to the new support price and is now moving on to a new rangenya.

Now the next question left is how to know that the price point will penetrate his ressistance support or not. Hahaha, when it's up here, you have to learn some technical analysis instruments, especially the type of oscillator for menegetahui point of buying or selling saturated saturated. It should be also taken into account the fundamental situation is happening. It's not easy indeed. Most know the critical points of the translucent whether soup and res from his experience after many years of trading. Yes I also sih. So it must be recognized that experience matters.

OK kids up here the lessons of our res and soup. Pretty easy isn't it?

Overbought and Oversold

Ok we get the next point of technical analysis that is a term named as saturated saturated buy and sell (overbought-oversold or commonly abbreviated as OB and OS just let me not tired of writing it). OB and OS is a situation where the price can no longer continue the trends because it was too expensive or too low prices so that the trend can no longer continue. Unlike the soup and res which is basically psychological level is merely a mutual agreement is not the official among fellow traders, OB and the OS itself is a real and commonplace circumstances occur in the market (not simply a psychological matter).

If a rising trend is going, then in these circumstances the currency become more expensive than usual. If we find a graph of GBPUSD are uphill ride for example, it means that the value is being increased by GBP expensive compared to USD. Market makers continuously persecuted the GBP because of required prices will continue to go up and they still have enough capital to do the action of purchasing

. But there will be a point where the buyer is no longer possible to buy GBP due to its price was too expensive. Buyer's opinion matters not only that the price is too expensive, but more than that is their capital already can no longer suffice to buy a certain amount of GBP. Well this is what the State is called the point of saturated buy or OB

. Conversely when the downtrend is going on, there will be a point where prices will stop down because the sale price is already too cheap so that the seller is no longer possible to sell its currency or they will be losers. This is called saturated selling OS.

In the circumstances the price reaches that point in its OS or OB then expected the price would turn direction and trend will soon cease. So when moving up and point the OB is already reached, then the prices will again rise trend would stop and then replaced by moving the fall in the currency. Vice versa when the price moves down and then entering the area of the OS then the prices will move back up and the trend down ever quit.

Often the OB and OS also occur at points of soup and Res because indeed they are points that are the same i.e. the trend counters. But not always the case. Of course buy and sell decisions will greatly support the once when prices are not on extreme points.

Now the question is how to determine the point of OB and OS? The easiest way is to use an indicator of type Oscillator such as RSI or Stochastic. These indicators are indeed designed to determine dots OB

and OS. Let's use an example of an indicator: the Stcohastic Oscillator. On Stocastic OB area, occurs when the value of the Stochastic is at a level above 80 and the OS occurs when the Stochastic is under 20 level. Note the picture below:







The area that is given the color blue is a saturated area buy and sell saturated. You can see it on a blue rectangle which I describe. When the price moves down, and then touched the saturated area selling price back then move up because the price is too cheap for sale by the seller. The same situation also occurs in the saturated area.

About the use of Stochastic is more detail we will be discussed at the next session of technical analysis.
Please be patient. Now with that in mind we can estimate kapankan a trend ended and was replaced with the next trend. Thus, we can set the timing of the opening position for the better again.

See you at the next lesson.

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3. How To Read A Candlestick Chart

3. How To Read A Candlestick Chart

By rhein   Sunday, September 04, 2016   No comments:

One way to analyze a technical basis is to read a candlestick chart. According to technical analysis, from data provided candlestick that has developed, we can predict what the next candle is formed. Whether candle Candle up or down. So if we have an idea of what will be the candle is formed, we can take a decision as to whether buy or sell

. So, here's how to read a candlestick chart:

In psikology, candle formed due to pressure sales and impulse purchases. The magnitude of the difference kenanan and encouragement which then causes the form candlestik are different from each other.

Candlestick formation chronology:

– When there are a lot of buyers who make a purchase, the increasing market prices so that at the end of the period the market closed above the opening price, eventually resulting in the Rose candle (green)
The magnitude of the impulse to buy can be measured from the movement of the market from Low to Close. The greater the motivation, then the greater the body candle formed. So the magnitude of the Green candle body shows the dominance of the

buyer. – When many traders who make sales market, the price of getting down, so at the end of the period's closing market value usually below the opening price. This is the condition which causes the candle that is formed is red (down)
On the candle Down (red) High measured from the seller pressure up Close. The greater the pressure sales, then the prices will fall and more and more and form a long red candle body. So the magnitude of this red candle body shows the magnitude of the dominance of the seller

To determine the direction of the next candle, there are some that should be noticed :
1. resistance 
2. Acceleration of motion
3. Slowing the rate of
4. The turning direction of the experiment
5. Convergent

1. RESISTANCE

RESISTANCE is when one party dominated the market then the candle will move along. For example, when Buyers dominated the market then the candle will continue to line up. As long as there is no resistance from the seller (no sales means) candle formed following the direction of the previous candle.

Until one day some traders felt the price was too high or already too saturated, then emerged as the sales action shape is the resistance of the seller. One of the reasons is the action of profit taking.

Forms of resistance shown by the tail of the candle. When the resistance is greater than dominance, then the next party who did win and that resistance would occur the turn of market dominance, so that the trend will reverse direction. From here we can predict that the next candle will reverse direction as well.

2. ACCELERATION of the Body 
 
a CANDLESTICK candle of candle earlier showed an enthusiasm. Then when many traders who berantusias the opening position, this will result in an effort to drive the market so in line with the kind of enthusiastic about it. Moreover, there is no opposition, then we can predict the candle which is formed in line with the candle wax.













3. CANDLESTICK DECELERATION 


the opposite of enthusiastic, the trader opens a position to doubts menyebabkanmarket the move to slow down. Doubt this comes as traders assess market is already too high, too low, saturated conditions or market zone support & resistance. In the absence of the trader opens a position, then there is no power to drive the market.

In these conditions we should be ready to reverse the direction of the open position is ready, because the market will be taken over by one of the parties.


4. REVERSE of the DIRECTION
 
EXPERIMENT CANDLESTICK On the saturated market position there will be a party that tries to end a trend going on, who want to reverse the direction of a trend right. But sometimes the effort begins with a test condition, i.e. testing whether the market could really behind point or not. It is characterized by the long tail of the candle the opposite to the direction of the trend is going on.

Chronology is before the period ended as will form the opposite direction with candle candle before. Towards the end of the period the candle was withdrawn and closed into in line with the previous candle
. The existence of the experiment back this direction indicated will occur behind the direction. So in this case we can prepare ready open positions that go against the trend.


5. CONVERGENT CANDLESTICK
 
Slowing CONVERGING CANDLESTICK body candle and a resistance (number 2) showed that the majority of traders expect the market's turning direction. But when it suddenly appeared a candle which showed enthusiasm remains in line with the trend is happening (moner 3), it's questionable.

Can be likened to when everybody wants one thing, but there is one people want different things, then of his energies, the energy of one person is actually small and virtually empty, so it is very easy to

is defeated. Convergent condition this candle can also happen because there are certain parties who want to get the best price, although already know the market will reverse direction, but still pulled it into a higher or lower it once was to get a better price, then the market reversed point.

In these conditions, we see other indicators, if other States converging indicators as well, then we can open a position contrary to the trends that happen.

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2. Types of Forex charts

2. Types of Forex charts

By rhein   Sunday, September 04, 2016   No comments:

Due to Your daily trading in the future will not be separated from the graph then ruled the charts and understand how the reading of the charts is the thing that should not be ignored. Forex trading without being able to read the graphs? It is just the run of the vehicle without the steering wheel! So enough gas and brake only and we see how

results. There are a variety of types of graphs that are used when you trade forex. But generally the forex charts is composed of several types:

• Line Chart
• Bar Chart
• Candlestick Chart

 There are also some other custom graphics that are very rarely used by novice traders. Some types of graphs designed to predict price movement limits (support and ressistance) while the other is used to simplify the movement of a particular currency fluctuations. Don't worry, even without the need to familiarize yourself as the graph of Sciences you can make a profit on forex trading. Sooner or later it later you will learn that the biggest determinant of profit is on the mental attitude that is ready

and discipline. Bar chart is more often used by American traders in analyzing currency movements. While Asian and European traders more often using Candlestick in doing technical analysis. For Line charts and Dot Chart its use was very limited in certain environments. This is due to an informai delivered on line chart and the Candlestick chart is not as complete as the dot and Bar Chart.

Candlestick itself in addition to being able to inform the price movement on certain hours, reading a lot easier due to add color to the graph-graph by. Thus you no longer need to distinguish whether the graph is being analyzed is the graph of the graph goes up or down.

The next lesson we will learn how to read a Candlestick. A graph that is not known to us in the everyday world yet very common in forex.

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1. Introduction to technical analysis

1. Introduction to technical analysis

By rhein   Sunday, September 04, 2016   No comments:

Let's start with the assumption underlying the technical analysis. In this case I would take an extreme approach so that you can understand how a technical analysis used in obtaining the gain in forex trading. Of course in practice it is not so. You can combine both analysis (fundamental and technical) in order to obtain the best trading system for you.

The chartist (parties who perform technical analysis), believe that they can figure out the patterns of price movement rate at a future date with based on the observations of the movements of the exchange rate in the past. In short they hold this jargon: "History always repeats it self." This philosophy is of course contrary to the fundamentalists in which investment decisions over the value of a currency is based on the fundamental factors for economic, political and monetary
are concerned.

The main weapon of the technical analyst is a graph (chart – that's why they called the chartist). Through the chart this is they can look at the trends that are taking place, a span of trend, the volume of transactions and the psychological levels. If you have been able to know 4 things, of course huge profits soon will be gushing to pay you. Let me Re:

1. The ongoing trend

2. The volume of transactions

3. Level-level of the psychological (support and resistance)

4. The period of time that occurs.

Yup, that's it. Indeed the purpose of the chartist is predicted to four of these things. But now the question is how accurate our ability to predict the price? Well that's what indeed must be a continuous exercise in each day. There is no one perfect method both fundamental as well as technical. Experience and self holds the central role here.

What is technical analysis have weaknesses? Of course. As I said just now, no one is perfect. Let me sarikan the second weakness of this analysis in the form of a table:

Weakness in Fundamental Analysis	Weakness in technical analysis
It takes long time to gain information.	It requires a lot of data to support the prediction accuracy
Is often subjective in nature because it involves a lot of people's opinion.	Relies heavily on the ability of the chartist. Each has a different method of chartist and each match is not necessarily applied to each other.
More suitable to be applied to long term period of trading.
It is difficult to be applied to the market is not efficient.

Well that's it for the introduction on technical analysis. In the next section we just became acquainted with graphic. Surely you don't want too much information that eventually even makes you dizzy isn't it?

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