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.
While there is no general consensus about how long the bear market will last, it is expected that prices will continue to fall for a long time. Demand for products on a market under the bear market is declining. Because demand is decreasing, nobody wants to buy those products and prices continue to fall.
The bull market, on the contrary of the bear market, shows that the related market will be on the rising trend for a long time and that the demand for the products in that market is increasing.
If gold prices were to be taken as an example, the bull market was experiencing a rising trend from the beginning of 2000s to the end of 2011 for a long time. However, in the middle of 2013, 2011 peak price level of 1900 dollars ounce of the level of 1500 ounces fell below. There was a decrease of about 30% from the previous peak level and gold prices were officially under the influence of the bull market.
Resistance: 111.90 / 1112.75 / 113.50
Support: 110.70 / 111.00 / 109.20
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
A parity is a pair of currencies in which a country’s currency is valued against the currency of the other country. According to their prevalence in global markets, major and minor (exotic) parities are examined in two groups. The parallels traded most in global markets are called major. Another reason for the major denomination of these currencies is that country economies are robust and dynamic.
There are 7 major currencies that are traded on financial markets. These are Euro, US Dollar, Japanese Yen, British Sterling, Swiss Franc, Canadian Dollar, Australian Dollar. Minor currencies are currencies with lower transaction volumes, preferred by local investors.
The most preferred minor currencies are New Zealand Dollar, South African Randi, Singapore Dollar. Parity pairs consisting of one major currency and one minor currency are also called minor parity.
On the Forex market, every transaction on the parity occurs when a foreign currency is sold and other foreign currency is bought. According to this price, it is necessary to understand how much the counter currency should be paid to get one from the first currency. If the EURUSD is priced at 1.1090, EUR1.1090 will have to be paid to get 1 EURO. In the Forex market, investors aim to earn from price fluctuations of currency pairs by buying or selling other currencies in exchange for a foreign currency. The expectation of investors who want to buy the euro and make a profit increases the value of parity, but this situation is shaped by the multiplicity of supply and demand.
How is the parity calculated? We will clarify this question with the help of a sample;
EURUSD is calculated as: 3,2440 / 2,9220 = 1,1101.
There are many factors that affect the price of the parity. These are economic data, decisions of the Central Bank, political developments and geopolitical risks, which have a significant effect on the price of the currency. The increase in interest rates ensures that the growth figures announced on the anticipation or the value of the industrial currency are appreciated; Low employment, rising foreign trade deficits in emerging countries, or rising inflation lead to the devaluation of the money. The uncertainties in the political structure of the country and the loss of political confidence will cause the currency to lose value.
The third reason that traders spend many futile hours on the input signal is the illusion that the perfect entry will provide control and dominance.
Traders often think that the input signal will give them control over the markets and dominate them. This can be likened to preferring to use numerical random numbers in the numerical lot. However, if you also use special numbers or random numbers selected from the digital lottery, you have a chance to win. Almost the same true, moving average does not change or change your odds of success or loss of your trading, just as you can see when using days or days to pick up fibonacci numbers or others. I do not want to create an idea that creating a trading system is meaningless for you, of course, traders need an input signal form. It is also a fact that we need to analyze the trends that occur, what conditions we should expect by entering them. But by focusing on the input signal only, the system’s other complex elements and very important
Money management and trading psychology is the biggest mistake to ignore, ignore and ignore. The two most important elements of being a long and successful trader are now traders. By ignoring these elements, concentrating on the search for ‘Holy Grail’ will surely add you to 80% of the money, which makes you no money.
2) To see what is present in the graph, not what is in the lower self,
3) Moving Outside the System,
4) To deal with the consequences rather than the consequences,
5) Not to take lessons from mistakes,
6) To forget that the sell signal is at the same time receiving signal,
7) Forgetting that the Al signal is in the hold signal at the same time