The popular pivot points include PP, and various "support" and "resistance" points based on PP. There are various ways to calculate PP, including the averaging of the High, Low, and Close (H, L, C) of the previous day's trading, or including the Open trading price in the average. Some popular examples[1] follow:
* R4 = PP + RANGE*3
* R3 = PP + RANGE*2
* R2 = PP + RANGE
* R1 = 2 * PP - L
* PP = (H+L+C) / 3
* S1 = 2 * PP - H
* S2: PP - RANGE
* S3: PP - RANGE*2
* S4: PP - RANGE*3
Or
Formula
PP = (H + L + C) / 3
then
* R1 = (2*PP) - L
* R2 = PP + (H - L)
* R3 = H + 2*(PP-L)
* S1 = (2*PP) - H
* S2 = PP - (H - L)
* S3 = L - 2*(H - PP)
Friday, August 28, 2009
Pivot point calculations
Pivot point calculations are used by security traders to attempt to predict support and resistance levels. They are commonly used in the forex and commodity futures markets. Pivot point analysis is a subset of technical analysis, although it is not as popular or well known as other technical methods.
Pivot points are frequently used by foreign exchange traders as a means to calculate resistance and support levels which are, in turn, used as visual cues to execute trades. Pivot point calculations provide traders with objective visual bench marks which some use to predict price changes, although the validity of these levels is still subject to debate.
Pivot points are frequently used by foreign exchange traders as a means to calculate resistance and support levels which are, in turn, used as visual cues to execute trades. Pivot point calculations provide traders with objective visual bench marks which some use to predict price changes, although the validity of these levels is still subject to debate.
History and new developments
Since 1996, when retail forex trading was introduced, several brokers who lacked the sufficient tools developed their own trading platforms tailored specifically to their needs. These platforms were good enough at the time but required constant investments in R&D and its development cost too much. This was the first wave.
The second wave was in the early 2000s: several software companies entered the retail forex trading market by launching their own versions of trading platforms. Typically these versions were cumbersome for both front-end users (retail traders) and back-end users (retail brokers) due to the misunderstanding of the developers about the forex market and also because of the insufficient programming tools/languages at the time. Simultaneously most of the retail brokers kept using and developing their own systems as they waited for better platforms which were yet to be developed.
There are currently few to no brokers which were part of the first wave trading systems. By now most of the first wave brokers have either vanished, merged or progressed to the second wave trading platforms – the most common example of which is Metaquotes.
It is only in the last couple of years that the advanced trading platforms started to emerge. These platforms put much stronger emphasis on the user interface (GUI) making it more accessible to the retail traders while making trading on it very simple and intuitive. Moreover a very strong emphasis was put on the back-end which allowed the retail brokers better control over their operations, better reporting and accurate system and ways to manage marketing campaigns. Gradually this wave is replacing the previous second wave with a major shift now to the friendlier and more intuitive systems of the third wave which according to Aite Group are necessary in order to maintain growth [3].
Nowadays, banks have also jumped on the retail forex trading platform bandwagon and have started offering those services to individual traders and money mangers, expanding the forex trading appeal. DBFX and Citibank are some of the banks that are currently offering this service.
The second wave was in the early 2000s: several software companies entered the retail forex trading market by launching their own versions of trading platforms. Typically these versions were cumbersome for both front-end users (retail traders) and back-end users (retail brokers) due to the misunderstanding of the developers about the forex market and also because of the insufficient programming tools/languages at the time. Simultaneously most of the retail brokers kept using and developing their own systems as they waited for better platforms which were yet to be developed.
There are currently few to no brokers which were part of the first wave trading systems. By now most of the first wave brokers have either vanished, merged or progressed to the second wave trading platforms – the most common example of which is Metaquotes.
It is only in the last couple of years that the advanced trading platforms started to emerge. These platforms put much stronger emphasis on the user interface (GUI) making it more accessible to the retail traders while making trading on it very simple and intuitive. Moreover a very strong emphasis was put on the back-end which allowed the retail brokers better control over their operations, better reporting and accurate system and ways to manage marketing campaigns. Gradually this wave is replacing the previous second wave with a major shift now to the friendlier and more intuitive systems of the third wave which according to Aite Group are necessary in order to maintain growth [3].
Nowadays, banks have also jumped on the retail forex trading platform bandwagon and have started offering those services to individual traders and money mangers, expanding the forex trading appeal. DBFX and Citibank are some of the banks that are currently offering this service.
Retail forex platform
Retail forex trading is a segment of the vast foreign exchange market. It has been speculated that it represents 2 percent of the whole forex market which amounts to $50-60 billion [1][2] in daily trading turnover. Due to the increasing tendency in the past years of the gradual shift from traditional intrabank 'paper' trading to the more advanced and accurate electronic trading, there has been spur in software development in this field. This change provided different types of trading platforms and tools intended for the use by banks, portfolio managers, retail brokers and retail traders.
One of the most important tools required to perform a forex transaction is the trading platform providing retail traders and brokers with accurate currency quotes.
One of the most important tools required to perform a forex transaction is the trading platform providing retail traders and brokers with accurate currency quotes.
Forex Bank
Forex AB is a Swedish financial services company. The company was started in 1927 as a currency exchange service for travellers, at the Central Station in Stockholm. The owner of Gyllenspet's Barber Shop, according to the legend, discovered that most of his customers were tourists in need of currency for their trips. The owner began keeping the major currencies on hand.
The company was subsequently acquired by Statens Järnvägar (SJ), the Swedish State Railways, which expanded the operations until it was sold off to one of the managers, Rolf Friberg, in 1965. The company was the only one apart from the banks that was licensed to conduct currency exchange in Sweden.
The company, which is still wholly owned by the Friberg family, has expanded into Denmark, Finland, Norway and Iceland and has over 60 shops, usually located at train stations or airports. The decrease in the business brought on by introduction of the euro has made the company look for alternative sources of revenue, like applying for a banking licence and attempting to move into more regular transaction services, earlier handled by Svensk Kassaservice, a subsidiary of the state owned Swedish postal company, Posten.
Since 2003 Forex is a licensed bank.
The company was subsequently acquired by Statens Järnvägar (SJ), the Swedish State Railways, which expanded the operations until it was sold off to one of the managers, Rolf Friberg, in 1965. The company was the only one apart from the banks that was licensed to conduct currency exchange in Sweden.
The company, which is still wholly owned by the Friberg family, has expanded into Denmark, Finland, Norway and Iceland and has over 60 shops, usually located at train stations or airports. The decrease in the business brought on by introduction of the euro has made the company look for alternative sources of revenue, like applying for a banking licence and attempting to move into more regular transaction services, earlier handled by Svensk Kassaservice, a subsidiary of the state owned Swedish postal company, Posten.
Since 2003 Forex is a licensed bank.
Successful traders
We at 4exForex.blogspot believe that no advice or a hint can compare to those of real, practising traders with hands-on experience. That's why we decided to start a new section on our site - Successful traders!
Forex4you is going to choose some of the most successful clients, and ask them for interviews! Let great traders share their experiences and wisdom with beginners and newbies, we say!
Our first "Successful trader" is Kase Cheah from Australia. Interview with him is available at the following link:
Successful traders - Kase Cheah, Australia
Forex4you is going to choose some of the most successful clients, and ask them for interviews! Let great traders share their experiences and wisdom with beginners and newbies, we say!
Our first "Successful trader" is Kase Cheah from Australia. Interview with him is available at the following link:
Successful traders - Kase Cheah, Australia
Forex Training
It is necessary to test your knowledge and skills in practice before trading on Forex. A demo-account might be used for that purpose, but it must be kept in mind that it does not reflect the refinements of trade, such as its psychological side.
Until recently there didn't exist other means. Our company was one of the first, who offered beginners a new way of learning Forex by practicing trade skills using real money at minimal risk:
* First of all, deposit currency is US/Euro cents, which allows the use of the same kind of numbers while lowering the cost of deposit by 100 times.
* Secondly, the minimum amount of a transaction is 0.01 (or 1,000 points of a base currency), which significantly lowers the risk of loss.
The "Forex Training" service gives our clients an opportunity to conduct in practice the financial transactions using various strategies at minimal costs, thus overcoming psychological difficulties and helping to predict the likelihood of the success for larger sums.
This service is the result of a long history of foreign exchange market development, beginning with the 100-thousand contracts. For those even the change of 5-10% in six or twelve months is a sufficient profitability level provided by many banks at no risk. Over time, investors felt the need to participate in trading using smaller amounts of money, but at higher level of risk and return.
This has been made possible through leverage. Companies started to offer margin loan services in exchange for certain bonds on an account, which were much smaller than the amount of the transaction. Due to its relevance, this service became popular among investors with relatively small capital. Originally, lots were as much as 100,000 US dollars with a bond of 1,000 or with leverage of 1 to 100 (lot amount is 100 times more than a bond).
fx4u-cent has become a new level in the development of margin loan services. In fx4u-cent the bond is 1,000 times less than a standard contract of 100 thousand (lot 0.1). Many brokers also use the term "micro" for cases with a bond of 10 USD (lot 0.01) but in fact none of them really offers this kind of service.
E-Global Trade & Finance Group, Inc. within the scope of the "Forex Training" program offers a minimal lot of 0.0001 with only 10 cents necessary for a trade at 1 to 100 leverage, thus falling under fx4u-cent conditions. This has become possible due to the adoption of US/Euro cents as a currency. Therefore, having an account of 2,000 cents and conducting a 0.01 lot transaction, a client actually operates with a lot of 0.0001, because the size of the account (US /Eurocents) is 100 times less of a US dollar/Euro account.
fx4u-cent accounts have many advantages as compared to demo or fx4u-micro accounts. Today it is the best way to learn how to trade because it offers practice with real money at risks less than those of other types of accounts. Success in fx4u-cent increases the likelihood of the same results with dollar/Euro accounts.
After training, the customer can evaluate his own work and draw conclusions on what percentage of profitability he achieved by assessing the number and level of depositing in critical situations. At this point he can decide whether he is experienced enough to start working with eGlobal-mini where depositing amounts are greater.
The experience of many traders shows that in most cases, making a deposit in situations of low margin level increases the chances of reaching the break even point. Moreover it creates a decent profit.
E-Global Trade and Finance Group, Inc. offers a wide range of quick and round-the-clock services to make a deposit in critical situations.
We want our clients to learn and make a profit!
We recommend you to start trading on the foreign exchange market with the "Forex Training" service.
The purpose of the competitions, special events and analytical support provided by the Company is to help traders in understanding the beneficial effect of the following factors:
* work with free monetary means;
* the opportunity to edit the account;
* support of analysts and consultants;
* systematic approach in trade with a minimum level of influence of the psychological aspect.
Until recently there didn't exist other means. Our company was one of the first, who offered beginners a new way of learning Forex by practicing trade skills using real money at minimal risk:
* First of all, deposit currency is US/Euro cents, which allows the use of the same kind of numbers while lowering the cost of deposit by 100 times.
* Secondly, the minimum amount of a transaction is 0.01 (or 1,000 points of a base currency), which significantly lowers the risk of loss.
The "Forex Training" service gives our clients an opportunity to conduct in practice the financial transactions using various strategies at minimal costs, thus overcoming psychological difficulties and helping to predict the likelihood of the success for larger sums.
This service is the result of a long history of foreign exchange market development, beginning with the 100-thousand contracts. For those even the change of 5-10% in six or twelve months is a sufficient profitability level provided by many banks at no risk. Over time, investors felt the need to participate in trading using smaller amounts of money, but at higher level of risk and return.
This has been made possible through leverage. Companies started to offer margin loan services in exchange for certain bonds on an account, which were much smaller than the amount of the transaction. Due to its relevance, this service became popular among investors with relatively small capital. Originally, lots were as much as 100,000 US dollars with a bond of 1,000 or with leverage of 1 to 100 (lot amount is 100 times more than a bond).
fx4u-cent has become a new level in the development of margin loan services. In fx4u-cent the bond is 1,000 times less than a standard contract of 100 thousand (lot 0.1). Many brokers also use the term "micro" for cases with a bond of 10 USD (lot 0.01) but in fact none of them really offers this kind of service.
E-Global Trade & Finance Group, Inc. within the scope of the "Forex Training" program offers a minimal lot of 0.0001 with only 10 cents necessary for a trade at 1 to 100 leverage, thus falling under fx4u-cent conditions. This has become possible due to the adoption of US/Euro cents as a currency. Therefore, having an account of 2,000 cents and conducting a 0.01 lot transaction, a client actually operates with a lot of 0.0001, because the size of the account (US /Eurocents) is 100 times less of a US dollar/Euro account.
fx4u-cent accounts have many advantages as compared to demo or fx4u-micro accounts. Today it is the best way to learn how to trade because it offers practice with real money at risks less than those of other types of accounts. Success in fx4u-cent increases the likelihood of the same results with dollar/Euro accounts.
After training, the customer can evaluate his own work and draw conclusions on what percentage of profitability he achieved by assessing the number and level of depositing in critical situations. At this point he can decide whether he is experienced enough to start working with eGlobal-mini where depositing amounts are greater.
The experience of many traders shows that in most cases, making a deposit in situations of low margin level increases the chances of reaching the break even point. Moreover it creates a decent profit.
E-Global Trade and Finance Group, Inc. offers a wide range of quick and round-the-clock services to make a deposit in critical situations.
We want our clients to learn and make a profit!
We recommend you to start trading on the foreign exchange market with the "Forex Training" service.
The purpose of the competitions, special events and analytical support provided by the Company is to help traders in understanding the beneficial effect of the following factors:
* work with free monetary means;
* the opportunity to edit the account;
* support of analysts and consultants;
* systematic approach in trade with a minimum level of influence of the psychological aspect.
