# What is a Parity? How is a Parity Calculated?

##### 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.

# What is Momentum?

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

### 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.

# What is Margin?

One of the most used terms in the Forex market, along with terms like leverage, lot, is the margin. Margin is a frequently asked question and is often confused. Margin, which means collateral, is used in the forex market together with different terms. While the amount used when opening a position is called the initial margin (initial margin), we can see how much more we can open the position by looking at the free margin (the free margin).

### How does FOREX MARGIN LEVEL CALCULATE?

Margin calculation, in other words margin level, is one of the important points to be considered in the forex market. We find margin level by comparing asset / free margin. When this level reaches below 75%, the margin call-margin call comes in. When the level reaches below 50%, the system automatically closes our positions, starting with the most harmful position. It is not compulsory to provide margin when the margin call warnings are received in Forex markets.

### WHAT IS FOREX MARGIN CALL? MARINE CALCULATION SAMPLES:

As an example, let’s imagine that we have 5,000 USD in our account and we will do our work using 1/100 leverage. We decided to do 5 lot USDTRY long (long) trading. The initial guarantee for this transaction is 5,000 USD. If this is not the case then the free margin will be 0. If we open this position and we do not like the margins, it is 100%.

Now; If the USDTRY price moves in the opposite direction to the position we opened and the margin reaches 75 percent, we call margin completion, which is called margin call. This means that we should follow our position more closely, because if the margin is below 50% we will automatically close our position by the electronic trading platform MetaTrader4.

### FOREX STOP OUT WHY? STOP OUT CALCULATIONS:

Stop out concept in Forex markets; a situation in which a certain percentage of the collateral used remains. In other words, it can be explained as Asset / Used Collateral. To give an example; Suppose we open a position with a 1,000 USD balance and 1,000 start-ups. In this case, our Asset / Used Margin ratio will be 100%. QNB Finansinvest has a stop out level of 50%. In our example above, if our asset, which is \$ 1,000, drops to 500 USD, Asset / Used Margin will be 50%, and our most damaged position will automatically stop.

# What is Dual Dip and Double Type Formation?

#### 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.

# What is Ichimoku?

### 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.

#### 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.

# What are Forex trading signals?

As the financial literacy grows day by day, the required macro can not finance enough in the micro market, but it is closely followed by people who are engaged in different professions such as engineers, lawyers, tradesmen, not just financial markets specialists. Especially, in developed economies such as Europe, USA, UK and Japan, and in emerging countries like China, India, Brazil, Turkey and Russia,

The volatility in the markets of parity, CFD, commodity prices, the trading opportunities in the forex market continues to increase its trading volume.

Forex traders are trading on the Forex market because the instantaneous price movements are so fast, the methods and strategies of trading are changing and improving day by day. In this context, Forex Buying and Selling Markets, which include automated trading techniques, are in great demand by investors, especially in the forex market.

Another advantage of the robots you sit on the forex market is that investors can make a profit by investing in sms or by e-mail and you will be able to make a profit by investing in wholesale opportunity.

# 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.

# What is Rectangular Formation?

Rectangular graph formation occurs when prices are touched by both levels for a period of time between support and resistance levels.

These levels of support and resistance can be horizontal, as well as down or up-view channels. What is important here is not that the support and resistance levels are in the form of horizontal or up / down channels; Are parallel to each other.

The formation of the rectangle starts with the price movements rising from the support level, then comes back to the support level again after reaching the level of resistance and then completes by making a movement towards the resistance level again.

###### or resistance before the completion of the four movements.

The entry point to the position is determined according to which side of the price will break after the completion of the fourth movement. The target price level is the distance between the support-resistance levels that form the rectangle, up or down, from the fracture level.