Category Archive Forex Beginners

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FIBONACCY WHEN RANGE IN WHICH?

forex,forexfx,fx,invest,investfx,investment,fibonacci,trade,tradefx,trader,money,monetary,financial,assets,earnmoney,earn,exchange,foreign,foreignexchange,buying,seller,currency,monetary,policyFIBONACCY WHEN RANGE IN WHICH?

The only variable in the analysis methods mentioned above is not the price. The time variable should also be examined extensively. In this context, Fibonacci Sequences can be used in price changes as well as in time intervals. When time intervals are set, the figures in the Fibonacci Series are bases in days, that is, they are divided into trend day intervals of 1-1-2-3-5-8-13-21-34. This analysis is used to determine the duration of the fluctuations.

 

WHAT ARE FIBONACCI BANS?

The Fibonacci Arcs are formed by the reference line drawn at the ceiling level from the trend base level observed by the parity. Fibonacci arcs are called springs that are plotted at the 81.8%, 50% and 38.2% levels of this line.

In the Fibonacci Arcs analysis method, if the price is getting closer to the pedestrian, the support is interpreted as resistance if it approaches from below.

 

WHAT IS FIBONACCI FANS?

Another use of the Fibonacci Sequence in financial analysis is the Fibonacci Fan Lines.

As we mentioned in other Fibonacci Analyzes, a guide line is drawn on the base and ceiling points in Fibonacci Fans. This guideline should be drawn to the ceiling point of the intermediate trend rather than the main trend.
Fibonacci FAN Analysis is not a straightforward method of analysis. This is because of the increase in the margin of error in volatile markets or periods. For this reason, it is recommended to apply it in more stable stabilized markets.
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What is Fibonacci Series?

What is Fibonacci Series?

 

The Fibonacci Sequence is a series of numbers obtained by summing each number by its previous number. The feature of the numbers in the Fibonacci Dice is that the numbers in the Fibonacci Sequence are proportional to the previous ones and that the series is approaching the golden one.

 

The Fibonacci sequence does not have to start with the number 1. It can start with any number.

For example, 0-1-1-2-3-5-8-13 is a Fibonacci Sequence, but may also continue as the Fibonacci Sequence, 4-4-8-12-20-32-52-84.

 

Why is Fibonacci Series called Fibonacci Series?

The Fibonacci series was found by Leonardo Fibonacci. Leonardo Fibonacci, born in Italy, discovers these numbers when he searches for a problem and decides to give his name.

 

 

Why is Fibonacci Series so Important?

Fibonacci Series As we have mentioned in the title, the numbers

in the series are  divided  by the number of the previous  number and the number of the gold is  approached within  the objects of

our lives and these numbers are important a nd mysterious. The golden  ratio   found in the  Fibonacci Series is  found in ancient Egyptians. The Greeks, like the  Egyptians, used this number in architecture. To put it simply,

The geometric orbital between the parts that make up the whole.

If we try to explain Fibonacci Sequence with examples from our daily life,

The ratio of our index finger to the previous node is the golden ratio.

 

The rate of gold we can reach with the Fibonacci series also arises from the proportion of sensory organs in the human face.

For example, the area of ​​our ears, from under the nose to the jaw, contains the golden ratio.

In Egyptian pyramids, the ratio of the base to the height gives the golden ratio.

 

USE OF FIBONACCIR DESIGN IN THE FINANCE SECTOR

FIBONACCI CORRECTION LEVELS (RETRACEMENT)

The Fibonacci series is used in the financial sector to estimate the value of the receivables of financial assets. The Fibonacci Sequence used in technical analysis applications is the gold bulb that we can reach. Generally used rates are 1.618 and 1.232.

 

E.G / Let’s consider a parity that has seen the lowest price of 1.0520 and the highest price of 1.1376 on the basis of time.

When we subtract the high price from the low price, 1,1376 – 1,0520 = 0,0856. If we hit this value with 1.272 above, it will be 0.0856 * 0.232 = 0.0198. When we add this value to the high price of 1.1376, it will be 1.1578. This emerging value reveals the trend we expect to see the parity rise.

 

As can be seen from this example, it can not be expected that the movement of a parity in the financial sector will be uninterrupted. The Fibonacci Series provides analyzes that can help in determining this trend.

Another use of the Fibonacci series in the financial sector is Fibonacci Time Spans.

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What is the index?

What is the index?

The stock market index is a value that contains certain stocks and is the result of calculating these stocks with different weights. The weight of each feeler in the index value varies.

 

The most active stock market indexes in terms of transaction volume in the world are Dow Jones, Nasdaq, S & P500, Ftse and Xetra Dax. In Turkey, there are more than one index under the Istanbul Stock Exchange. The types of indices / indexes that the most transactions are realized in stock exchange Istanbul; BİST 100 index, BİST 30 index and BİST Banking index.

 

ENDEX CALCULATION

 
Stock market indices are calculated according to the weights of the shares held.For example; In the Dow Jones 30 index, there are 30 active stocks. Some of these shares; Goldman Sachs, Microsoft, Pfizer, et al. The shares in the index are revised with certain periods, and the addition of indexes or additions of indexes is carried out.
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What is CFD?

What is CFD?

 

The CFD’s Turkish equivalence stands for ” Difference Contracts ”. They are contracts that allow you to invest in non-physical forms such as stocks, stock indices, treasuries and commodities, and to buy and sell price expectations. In any CFD investment, you buy and sell price quotes and you do not physically own that instrument.

 

 

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?

In CFDs based on stocks, you can enter into high volume transactions with low collateral by taking advantage of the leverage effect in buying or selling, and in these transactions. In your emotional CFD investments, you are equally affected by the price movements of the underlying asset. It does not benefit from dividend payments, but you will benefit from price changes that are felt after dividends. Since the price of the underlying asset will be affected in the stock split, the price of the CFD stock will be affected in the same way. CFD stocks do not grant any partnership rights to the invested company, such as ordinary stocks.

 

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.

 

CFDs provide leverage at rates up to 1:10.

You can easily trade with the Meta Trader 4 platform.

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What is the bull market?

What is the bull market?

Bear and bull market concepts, which are frequently encountered in financial markets, provide information about the direction of the market (trendi). The bullish market is the period when the market is on the uptrend, that is, prices will stay in an optimistic environment in the future and investors will be able to buy it. It is assumed that the origin of this term comes from the belief that the bulls have lifted everything up and down with their horns. It is possible to encounter in the forex market with comments such as stock market and gold as the beginning of the “bull market” we have come across in the commodity. On the bear market, the situation is exactly the opposite of the bull market. In other words, the market is in a downward trend and the market is pessimistic. For the start of the bull market, technically it is expected that it will have risen by 20% from the lowest level of the relevant market.

 

THOUSANDS OF BULK MARKET

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.

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USD / JPY reacts to 110.70 support

USD / JPY reacts to 110.70 support

On the first trading day of the week on the Japanese new forex market, it maintained its gains against the dollar. USD / JPY, which is down 0.05%, continues to be affected by the weaker dollar in global markets. During the Asian hours, the Japanese reading PMI for the month of July came in at the level of 52.2 and there was no significant effect on the parity. In the US wing, PMI figures will be followed today. It is also expected that Trump’s brother-in-law, Kusher, will testify at the Intelligence Committee behind closed gates. It would be beneficial to monitor these developments closely for the course of the US dollar, which is under the negative pressure of political risks.

 

Technical Analysis: The USD / JPY pair has retreated to 110.70, indicating a significant level. If the upside movement of the parity shaped at 111.00 with this point buy reaction continues, 111.90 level can be seen as the first resistance point. However, breaking down the support level below 110.75 may lead to an increase in downward sales pressure.

 

Resistance: 111.90 / 1112.75 / 113.50

Support: 110.70 / 111.00 / 109.20

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How to Approach Forex Markets.

How to Approach Forex Markets.

 

 We can explain it in two ways.

For most investors or traders who have experience with the stock exchange, an attitude has been put in place to change currencies or add money as another opportunity to switch to diversification.

 

 

  1. Money trading was introduced as an “opportunity for an active trader”. These brokers are good because they are making more money when the merchant is more active.

 

  1. Foreign exchange trading is also promoted as leveraged trading, and it is therefore easier for a trader to open a small amount of account for the stock market trading.

 

In addition to trading a profit or a return, foreign exchange trading can be used to hedge a stock portfolio. For example, if you set up a portfolio of shares in a country with a potential to raise the value of a share, but a risk of insolvency in currency, such as in the recent US, then a trader may own the share. Create a portfolio and shorten the Swiss franc or euro To sell futures. In this way, the portfolio value will increase and the negative impact of the falling dollar will be significant. This is true for investors outside the United States who take their earnings back to their own currency.

 

If this profile is kept in mind, opening a forex account and daily trading or swing trading is the most common. Investors can try to make extra money by using the methods and approaches described in this site on the lot of articles found elsewhere and on the web sites of brokers or banks.

 

A second approach to transaction currencies is to understand baselines and long-term benefits when a currency advances in a particular direction and provides a positive interest rate differential that provides a value in the currency value of the return of the investment. This type of trade is known as “transport trade”.

 

For example, a trader can take the Australian Dollar against the Japanese Yen. When the original of this article is published, the Japanese interest rate is 0.05%, the most recently reported Australian interest rate is 4.75%, so a trader can earn 4% in this trade.

Nevertheless, such a positive interest should be seen in the real exchange rate context of the AUD / JPY before the decision of interest is given. If the Australian dollar is strengthening against the yen, it would be appropriate to hold the AUD / JPY to gain both the appreciation of the currency and the yield of interest.

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OIL OPERATIONS

OIL OPERATIONS

 

Oil is among the most heavily traded commodities in the Forex markets. There are two types of Oil used in the world.

Crude Oil (USOIL)

Crude oil, which is very important in the world economy and accepted as black gold; Industrial, automotive, energy, chemical, cosmetics. The world is being used as a leading indicator of oil prices and is being removed from the state of Texas. Light Sweet Crude Oil (WTI) oil is called “Texas light sweet” because of its low light (light) and low sulfur (sweet) content. Crude oil prices show great sensitivity to political and economic developments, but also change as the geopolitical risks in the Middle East increase. Many factors, such as oil reserve levels, changes in global climate, economic developments, supply and demand balance, have an impact on crude oil prices. In the forex market of crude oil, the volume of transactions is quite high, and in the market both profit and loss can be achieved both in value increments and in value losses.

 

Brent Oil (UKOIL)

 

After crude oil is the second highest quality oil in the world. Its name is taken from the initials of five separate tectonic strata in the North Sea (Broom, Rannoch, Etieve, Ness, Tarbat) between England and Norway. It shows great sensitivity to political and economic developments, but is affected more quickly than the changes that may occur. The geopolitical risks and economic vitality on the Eurozone are influential in the upward and downward movement of prices, as developments in the Middle East are influential on Brent Oil prices.

 

Transactions on oil at financial markets may be futures (traded within a certain period) or as demand (traders continuing until the investor finishes trading positions). Therefore, there is no obligation to close positions at the end of the maturity. The positive or negative overnight cost (Swap) is reflected according to the trading direction of the investor.

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Forex Commodity Trading

 Forex Commodity Trading

Commodities are all the goods and products subject to trade. Mining, mineral, energy, agriculture, food and livestock products are all part of the commodity.

 

Commodities are all the goods and products subject to trade. Mining, mineral, energy, agriculture, food and livestock products are all part of the commodity. Energy products such as gold, silver, platinum, copper, mineral products such as cotton, soybean meal, corn, wheat, agricultural products, petroleum and natural gas are among the commodity products on the Forex market. Supply and demand changes in the market vary on commodity prices. For this reason, it is necessary to follow the usage area, supply possibilities and demand of the market which is the subject of purchase and sale.

 

In commodity products based on commodities, many factors affect commodity prices such as natural conditions, weather conditions, agricultural policies and government policies. Another reason for the preference of agricultural commodity products is that there is no excessive ups and downs on prices of agricultural products, foreign exchange and other instruments. For this reason, it is traded as a reliable investment instrument.

 

If the commodity is based on madene, it is divided into two groups as valuable and industrial mines. Typical example for the province. Historically, gold is used for storage purposes. Today it is an investment tool preferred by investors to protect against inflation. In the second group, there are industrial mines such as copper aluminum and platinum. The value of the industrial mines depends on the supply and demand for that mineral, which is closely related to the power of that industry.

 

Oil is at the beginning of energy-based commodities. Petroleum alternative is a product which is not found in the world and is considered valuable because it is a scarce product used in every area. It is one of the products with the highest strategic importance on the world.

Investments on commodities can be made through futures markets as well as on forex markets. There are many reasons why commodities are more advantageous than the stock market in Forex markets. However, the most important reason for not having a specific center in the forex market can be shown as including all world markets. Especially, it is very important to be able to evaluate the opportunities on the commodities by being able to perform both purchasing and selling, ie two-way transactions on the product range

Investment decisions can be taken more precisely when all the circumstances are considered and when the commodity has trackable information.