QNB Finansinvest The spread between the buying and selling prices of the forex traders trading on the Metatrader 4 platform is called spread. This difference is calculated in pip. If you need to go through the following screen display; The 0.00003 value resulting from 1.12195 – 1.12192 is read as 0.3 pips.
Tick is 3 ticks. Some of the instruments traded on the Forex market are priced at 5 digits, so the last house is ticked. For example, suppose gold prices are 1380.20 – 1380.40. In this case the difference between the two prices is specified as 0.20 pips and 20 ticks.
It is necessary to observe an upward trend formation before the formation. Secondly, the left shoulder should form the peak of the rising trend and a slight withdrawal from it should be observed. The heading level (with still being up-trending) should form the summit and there should be a slight recoil and a rise again for right shoulder formation. The lower levels of the two shoulder points, referred to as the neckline along with the fall after the right shoulder, are in support position. For the formation to be valid, the neck line must be broken down with the volume. With this accomplishment, the target point can be calculated by appending the distance between the neck line and the head, down the neck line.
The neck line is very important in shoulder head shoulder formation. The line of support / resistance to which the formation is approved and the trading profits are given. The neck line is drawn by combining the points on the left shoulder and the head area that support sales. It does not necessarily have to be horizontal, it can also be down or up. The neck line breaks downwards and then goes back to the neckline giving a second opportunity for sale.
The 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
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.
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.
The difference between the purchase price (ask) and the selling price (bid) of currency pairs / parities (the ratio of currencies) is called spread. The difference between buy-sell prices is measured in pips. Pip is the change on a piece of paper, and most parts represent the 4th step change (1 pip = 0,0001).
Forex spread ratios are not fixed because they are based on prices given by large banks and may decrease or increase according to market conditions.
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.
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)
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.
For example, the monthly inflation rate is 1 percent, which means that the general level of prices in that month increased by 1 percent compared to the previous month. The fact that the annual inflation rate is 30 percent means that the prices have increased by 30 percent on average compared to the previous year, for example, a commodity basket purchased for 200 TL last year could only be taken up to 260 TL this year.