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What is a Parity? How is a Parity Calculated?


What is a Parity? How is a Parity Calculated?

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In its simplest terms, the parity refers to the ratio of country currencies. The interest rates of the country currencies and the economic conditions they are in can be counted as factors affecting the parities. For example, in terms of Turkey’s foreign trade balance, EURUSD (Euro Dollar parity) is a big part because of the fact that most of the exports are in Euros and most of the imports are in US dollars.

 

HOW CAN THE PARITY BE CALCULATED?

Euro: 3 TL Dollars: 2 TL and Euro Dollars 3/2 = 1.5. In this case, the Dollar will be 2/3 = 0.66.

 

An investor who bought EURUSD (long position) will have sold USD in exchange for the EUR bought; sale (Short Position) will make it sell Euro and receive US Dollars.

 

EURUSD parity (Euro / US Dollar), USDJPY (American Dollar / Yen), GBPUSD parity (Sterling / US Dollar) and AUDUSD (Australian Dollar / US Dollar) are among the top paratels that are traded on Forex markets. In addition to these, the USDTRY parity (US Dollar / Turkish Lira) and EURTRY (Euro / Turkish Lira) are also included in Turkey.



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What is Momentum?

What is Momentum?

 

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign, Momentum,  parities , momentum indicator, the price movementThe momentum is an oscillator that represents the change in parities over a predetermined period of time. In other words, it is a display that indicates how much the corresponding parity has gained or lost in a specified period of time.

 

Momentum is a market anomaly that finance theory is difficult to explain. The fact that the price of any financial product is rising does not guarantee that prices will rise in the future. According to the effective market hypothesis, the increase in prices and the changes in demand and demand are determined by new information coming from the financial market.

The momentum indicator is calculated as follows;

 

Momentum = Last Closing / x Days Previous Closing * 100

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How to interpret the momentum indicator?

The momentum indicator is interpreted in two ways:

Method; it is possible to use it as a trend monitor. When the indicator bottoms up and turns up, AL should make a peak at the indicator, and when it goes down, the SAT should be decided. You should keep in mind that when the momentum indicator has a new peak or dip (compared to the peak and past in the past), the current trend will continue, but the rate of increase in prices slows down and the effects of senescence factors are weaker and prices may begin to fall after a while. Nevertheless, you must change the position of the signal produced by the indicator, waiting for the price movement to confirm it.

For example, the indicator peaked and turned, and you should wait for prices to fall.

The Method Momentum indicator can also function as an indicator of the future. When prices are rising and new peaks are made, the show can not do the new peak or the prices do not bottom out when the new bottom. In this case, incompatibility occurs and it is necessary to evaluate it as an early signal of the trend change.

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What is Dual Dip and Double Tepe Formation?

What is Dual Dip and Double Type Formation?

 

DOUBLE TYPE – DOUBLE TYPE FORMATION

capital forex, forex, invest, investment, trade, traders, money, monetary, foreign, excahnge, buying, seller, forestfx, DOUBLE TYPE, double hill, withdraw The formation, which is called double hill or double hill, is assumed to be the news of technical analysts coming to the end of a strong upward trend. With the return from a significant peak level, investors who have not been able to participate in the movement will rise again and the market will go up to a level close to the previous level, but the hard selling experienced in the previous hill also becomes an important resistance, this reluctance to withdraw the prices back to the level of support occurs.

 

DOUBLE DIP – DOUBLE DIP FORMATION

This formation is the opposite of the double top formation. The amount of volume in this formation, seen at the end of the downtrend, is high when the first dip is formed. In response to the first dip, the volume remains lower. From the second dip, the transaction volume increases with the price. In these formation graphs, the binary top formation resembles the letter W, which is the inverse of the letter M, which is the shape of the figure. Just as it is in a double hill formation, this formation is usually assumed to be longer than one moon.

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What is Ichimoku?

What is Ichimoku?

The ichimoku indicator, also known as Ichimoku clouds, is an indicator that helps identify support, resistance and trends in financial markets. This indicator, also known as Ichimoku kinko Hyo, is also known as “equality graph”. With a single image, trending and trending potential signals can be seen. Indicator was developed in 1969 by Japanese journalist Goichi Hosoda. It is actually a useful and simple indicator even though it looks very complicated when you look at the graphs.

 

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Ichimoku In order to understand what the index is, Ichimoku Kinko Hyo analysis will be useful in describing what the terms mean, because we will keep track of these terms on the graphs continuously.

 

  • Tenkin Sen: 9-period moving average is the default value.
  • Rigged Sen: 26-period moving average is the default value.

 

Moving averages help me find where the nearest support and resistance levels are.

Naturally, the first level of support will function if the 9-period moving average prices in the emerging market are closer to that of a retreat. The 26-period moving average, which follows the prices further, takes on the next support function. The same rules apply for the declining market.

 

  • Senkou Span A: It is obtained by dividing the 26-period moving average by 9-period moving average and dividing it into two, then shifting the obtained value by 26-period forward. Senkou Spana acts like a weighted average of 26 periods.

 

  • Senkou Span B: is obtained by dividing the highest and lowest values ​​in 52 periods by half, then shifting the obtained value by 26-period forward. In other words, Senkou Span B is the middle point of 52 periods (50% withdrawal rate).

 

* Ichimoku Cloud: The area between Senkou Spana and Senkou Span B.

capital forex, forex, invest, investment, trade, traders, money, monetary, foreign, excahnge, buying, seller, forestfx, Ichimoku, ichimoku,indicator, Ichimoku Cloud.png If prices are able to penetrate the cloud and penetrate the cloud, the trend is predicted to continue in that direction. In other words; falling down the parity cloud, ascending the parity cloud, the ascension current begins to dominate.

 

The thickness of the clouds is also an important point. The cloud is thicker than the support (or resistance) in the region; we can say that the cloud is thinner than the support (or resistance) in the area where it is thin. Currents are more likely to change direction at these points.

 

  • Chikou Span: Obtained by shifting the closing price back by 26 periods. It is a default value, but can be changed if desired.
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What is Moving Average?

What is Moving Average?

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It is an important display used as a moving average trend monitor and is often used in technical analysis. Moving averages show the current direction in a rather, delayed way of showing a way to go where prices go. It is delayed because it is an indicator based on past prices.

 

Moving averages are used in most of the indicators used in forex markets.

For example; bollinger bands, MACD, and ichimoku.

 

HOW TO CALCULATE MOBILE AVERAGE?

capital forex, forex, invest, investment, trade, traders, money, monetary, foreign, excahnge, buying, seller, forestfx, average, moving average, calculate average     The moving average is a display that is calculated by taking the average  of prices. Moving averages are accepted as an important indicator in terms of trend follow up. The reason for this is that the moving averages consist of past price movements.  Moving  averages also assist in determining support and resistance points.

For example; The 200-day moving average is heavier than the 20-day moving average and indicates a more delayed forecast. Short-term moving averages are used by short-term traders and long-term moving averages are used by long-term investors.

The 200-day moving average, which is often used by investors, is closely monitored as a significant signal and support resistance level. In some cases, moving averages with more than one time interval are used together to obtain an opinion on the direction of the market

Two types of moving averages are frequently used in Forex markets.

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Simple Moving Average: Moving average created by taking the average of price movements of a financial product within the determined period. Simple moving average accounts for closing prices. For example; The 5-day simple moving average is obtained by dividing the 5-day closing prices by 5.

 

Weighted Moving Average: Moving average of a financial product, calculated by taking the average of the price movements within the determined period according to the determined weights.

 

Exponential Moving Average: Moving average of a financial product, calculated by taking the average of the price movements in the determined period and giving more weight to the price movements in the near term. Since weighting is performed, the exponential moving average is counted as a moving average with less delay.

As the time spent in moving averages increases, the delay is more frequent.

For example; Looking at the 10-day moving average, the delay is less because it takes into account the more recent prices.

Moving averages, which are common in technical analysis, are more effective when used together.

For example; The 50-day moving average and the 200-day moving average produce interlaced technical analysis signals. Generally, the combination of the short-term moving average and the long-term moving average gives better results. The upward-sloping short-term moving average long-term moving average is signaling that prices may move upwards in the short-term. In the literature this “golden cross” is known as “golden cross”. On the contrary, if the short-term moving average cuts down the long-term moving average, it generates a signal that prices can move downward. This “death cross” in the literature is referred to as “dead cross”.

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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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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.