Tag Archive Capital Forex

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What is Support Resistance?

What is Support Resistance?

 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.

 

 

The concept of resistance can be explained as the level at which the rise in prices is expected to cease. Resistance levels are interpreted as a stop or slow down in the financial situation, the sellers reacting at this level, or making profit realizations. When we look at the historical charts in Forex markets, the first multiplier is the resistance, the places where purchases are stopped and the prices can not go further on this level. However, it should not be forgotten that in the case of breakdown of the major resistance levels, that is to say, if the upward resistance points are crossed, the receptions will accelerate and the resistance point will now become a support point. Breaking a resistance point does not mean that the resistance level is above prices. We can say when a level of resistance is broken, clearly when it closes over this level. When we look at the historical charts in Forex markets, the first multiplier is the resistance, the places where purchases are stopped and the prices are not even higher on this level. At this price level, you will encounter a gold-level resistance level, as shown by the levels indicated by blue in the chart below. Below you can find examples of gold support resistance points.

 

 

The positions of support and resistance you will draw on the charts will indicate where you should place your profit taking and loss stop orders. Support and resistance lines do not give you information or direction about the trend. If you have just made a purchase, it will show you where to close that position. If we go through the above example; Gold position and if the prices are rising, the place to meet the first resistance will be the level of 1266 dollars ons. If this level can not be overturned, you can realize part of your position and consider buying again from the support level below (if you think the trend is up).
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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 are Bollinger Bands?

What are Bollinger Bands?

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.

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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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What is the Bear Market?

What is the Bear Market?

 

The bear market concept is often used not only for forex trading but also for all financial markets (stocks, bond markets). The bear market is called the English bearish market. The bear market is often used when markets are pessimistic and when prices are expected to trend down for a long time. To say that a financial product has entered the bear market, the main trend must first be downward (downward trend). However, if there is a 20% downward movement from the previous peak level.

 

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.

GOLD MONTH MARKET – EXCHANGE MONTH MARKET

The gold bear market indicates that gold prices will remain low for a long time, prices are showing a downward trend and this trend will continue. The stock market also indicates that the stock market index will stay low for a long time, the prices of stocks are showing a downward trend and this tendency will continue.

 

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.

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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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Ounce gold is valued with safe port demand

Ounce gold is valued with safe port demand

It allows for the upside movement of the ounce of gold to keep the US dollar weak in forex markets. The political developments that we have followed frequently in the US wing for the past week caused the dollar to lose its strength in the global markets. The precious metal that stands out with the demand for safe port is shaped at the moment at the level of $ 1251. While the dollar index has fallen to its lowest level in the past year, we are seeing a horizontal and trading course in US 10-year bond yields. US PMI figures will be tracked in today’s data calendar. It is also expected that Trump’s brother-in-law, Kusher, will testify at the Intelligence Committee behind closed gates. It is beneficial to follow these developments closely in terms of the parity appearance.

 

Technical Analysis: The precious metal that keeps its course in the rising channel is shaped over $ 1251. The strong placement of the yellow metal on this level can counteract the nearest resistance of $ 1257 in the following periods. On the other hand, extensions below $ 1251 may cause sales pressure to accelerate from $ 1246 to $ 1240.

 

Resistance: 1257/1262/1270

Support: 1246/1240/1236              

 

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Attention to OPEC & Russia meeting for oil prices

Attention to OPEC & Russia meeting for oil prices

Oil prices remain under negative pressure from rising production figures. Oil prices, which can not rise despite OPEC’s supply interruption, are disturbing oil producing countries. Today, OPEC members and Russia’s St. It is expected to participate in the global petroleum market assessment meeting to be held in St. Petersburg. Here, future messages about the oil market may have an impact on prices. In addition, Russian Energy Minister Alexander Novak said in an interview with the Financial Times newspaper that Nigeria and Libya should join the OPEC supply disruption agreement. For this reason, it is useful to pay attention to possible price movements from presentations coming from today’s meeting.

 

Technical Analysis: US crude oil, which can not follow a strong course on the level of $ 47.00, is currently on a support level of $ 45.50. While the uptrend of crude oil is seen as a resistance at $ 46.60 in the first place, it needs to settle for $ 47.00 for a strong acceleration. On the other hand, there are support levels of $ 45.50 and $ 44.45 below.

 

Resistance: 46.60 / 47.00 / 48.50

Support: 45.50 / 44.45 / 43.30

Technical Analysis: Brent oil is experiencing returns from critical resistance levels. Brent crude, which did not reach $ 50.00, continued its downward movement to $ 48.00. Brent, which is shaped on momentum momentarily, faces a downward trend of 47.80 / 46.60 as support points. On the other hand, we are monitoring critical resistances above 48.50 / 49.20 and $ 50.00.

 

Resistance: 48.50 / 49.20 / 50.00

Support: 47.80 / 46.60 / 45.35

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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.