Devaluation is a monetary policy tool used by countries that implement a fixed exchange rate regime or a semi-fixed exchange rate regime. Devaluation is the reduction of the value of an official currency of an country against other country currencies or against a group of currency values, or at a currency standard. Devaluation is often confused with depression and is exactly the opposite of revaluation.
Devaluation is a tool used by the government or central bank of the fixed country for the relevant currency. One of the most fundamental reasons for devaluation is that the country reduces the value of its money to compensate for trade deficit. Devaluation is to lower the value of currency and to make exports cheaper and become more advantageous in global trade competition. However, imports become more expensive, and domestic households increase demand for products from domestic producers while expecting a reduction in demand for imported products.
Devaluation seems to be a means of positive monetary policy, but there are also negative effects. Making imports more expensive can make domestic production less effective, or making exports cheaper can cause inflation by increasing demand very seriously.
The concepts of support and resistance are not just forex markets, but a concept of technical analysis that is used throughout financial markets. In general, support can be explained as the level at which prices are expected to decline. The persistence of sales in the financial market at support levels is interpreted as the response of buyers at this level. However, it should not be forgotten that in the case of breakdown of important support levels, that is, if downward support points are crossed, sales will accelerate and the support point will become a point of resistance. Breaking a support point does not mean that the support level is below the support level. We can say when a level of support is broken, clearly when it closes below this level. When we look at the historical charts in Forex markets, the first multiplier is the support level where the sales are stopped and the prices can not fall further below this level. At these price levels, the Euro dollar pair has found support, as can be seen from the levels indicated by blue in the chart below. Below you can find examples of euro usd support resistance level.
CFDs; Such as stocks, bonds, indices or commodities. The sources of CFD contracts, which can be processed more easily and with lower capital, can be various financial assets.
It is an investment instrument that allows you to invest in future expectations of the underlying product without having a financial product with low collateral, by connecting lower collateral than the underlying product.
At the same time, CFDs, which are an easy investment tool, are also preferred and fast because of the need for fewer collateral, allowing investors to benefit from small price changes.
CFD products are divided into futures and demand. There are no maturities in underlying assets in demand contracts. In some demand CFD products, although the underlying asset is futures, the product may be traded on demand. The difference in the CFD products in this case will be reflected to the investor as transportation cost.
WHAT IS CFD BASED ON SHARES?
Futures CFD contracts are term contracts with a starting and ending date of which is known. You can trade as much as you want in the maturity. If your position is still open when the due date is reached, it is automatically closed by the system.
WHAT ARE THE ADVANTAGES OF CFD?
It enables you to gain access to all indexes, precious metals and commodities on a single platform, easily and profitably from both the rise and fall of the market.
Bollinger bands are a volatility band that is often used in technical analysis, developed by John Bollinger in the 1980s. Volatility is a variable dependent on standard deviation, and volatility increases or decreases affect standard deviation. Bollinger bands are narrowing when volatility rises and bollinger bands are decreasing when volatility is decreasing. In 2011, bollinger bands will be patented on behalf of John Bollinger. Prices for Bollinger bands are relatively high or low. According to Bollinger, tapes contain 88-89% of price movements. It is stated that the price movements of these beds out of band width bands are unusual. Technically speaking, the prices are relatively high if they are close to the high band, and the prices are relatively low when they are close to the low band. Nevertheless, the relatively high price movements should not be construed as buying or selling signals.
HOW TO CALCULATE BOLLING BITS?
Medium Band: 20-day simple moving average
Upper Bant: 20-day simple moving average + (standard deviation of 20 days price x 2)
Lower Bant: 20-day simple moving average – (standard deviation of 20-day price x 2)
HOW TO USE BOLLİNG TANKS?
An example of the bollinger band appears in the above graphic. In this example, the middle line shows the 20-day moving average. There are two lines above and below this line. Upper line; Above the standard deviation of the moving average in the middle, the bottom field line and the moving average in the middle denote the K standard deviation. In general, the standard deviation is assumed to be 2 in the bollinger bands and 20 in the period.
The most important reason for using Bollinger bands is that the financial product can be held at high and low levels and it can be predicted which band the related product will fluctuate between. In general, over-bought levels can be interpreted when a financial product touches the upper level of the bollinger bands, and over-priced levels when the lower-band holds. But alone does not give enough results. It can give meaningful results when used with Bollinger tapes and others.
Stage 1: Staging is the phase in which very cheap commodities sold by investors who are in trouble and discouraged are being collected by large investors. Yet there is no significant upward trend and there is still little interest in the market in general.
2nd Stage-Buying Wave: It is the phase in which the signs of recovery in the market have begun to be clearly noticed after the addition phase, and small investors are now included in the buying wave.
Stage-Saturation: The market has reached a certain degree of saturation with the increase in volume, and the buyer has decreased considerably in the market. It indicates that the bull market has come to an end, so it can be expected to start a wave of steep declines.
BULK MARKET EXAMPLES
Gold has been in a significant bull market since the early 2000s. Gold prices have risen from $ 800 ounce levels to $ 1900 ounce levels. This is the case for a strong golden bull market.
Resistance: 46.60 / 47.00 / 48.50
Support: 45.50 / 44.45 / 43.30
Resistance: 48.50 / 49.20 / 50.00
Support: 47.80 / 46.60 / 45.35
The Federal Reserve is the central bank of the United States, which was founded on December 23, 1913. Over time, the roles and responsibilities of the Federal Reserve System have been expanded and changes have taken hold. Ben Bernanke, head of the central bank in Washington. The bank also has the authority to print and distribute US dollars.
The FOMC is the US Federal Reserve Open Market Operations Committee. It is the most important part of the Federal Reserve System’s monetary policies. The FOMC has important tasks such as increasing employment, keeping inflation and macroeconomic balance at an acceptable level, and taking measures to promote economic growth.
The Federal Open Market Commitee meets eight times a year to assess economic trends and determine their monetary policy. FOMC Meetings (FOMC Minutes) are announced three weeks after the FED meetings. In the meeting records; The reasons behind the decisions of the FED meetings include the FOMC members’ view of the macroeconomic outlook, the duration of economic measures and interest rate decisions, and forecasts for future periods. Investors look for clues in this long text for changes that may occur in the FED’s monetary policies.
Interpretation of FOMC Decisions
Interest Rate Decisions: Commitments to keep FED’s policy rate at certain levels are affecting the course of the US dollar and commodities. For example; A clue to the prolongation of the rate at which interest rates are held at very low levels will create a low interest-weak dollar sense. Read More
Investment decisions can be taken more precisely when all the circumstances are considered and when the commodity has trackable information.