The Frontiers Of Trading

by: Ivan Cavric The Ichimoku Kinko Hyo, or "Ichimoku Cloud" as it is commonly referred to, is a technical analysis indicator that is used to identify trends and support and resistance levels in financial markets. It was developed by Goichi Hosoda, a journalist in Japan, and has been used by traders for decades to make informed decisions in the forex, futures, and stock markets. So, what exactly is the Ichimoku Cloud and how can it be used by traders? Let's take a closer look. The Ichimoku Cloud is a comprehensive indicator that is made up of five separate lines, each of which provides valuable information about the market. These lines are: The Tenkan-Sen: This is a short-term moving average that is calculated by taking the average of the highest high and the lowest low over the past nine periods. It is used to identify trends and can also serve as a potential entry or exit point for trades. The Kijun-Sen: This is a medium-term moving average that is calculated by taking ...

by: Ivan Cavric The Heiken Ashi indicator is a popular tool used in technical analysis to smooth out price data and filter out market noise. Developed by Japanese analyst Goichi Hosoda, the Heiken Ashi indicator can help traders identify trends and make better informed trading decisions. Unlike traditional candlestick charts, which plot the open, high, low, and close (OHLC) prices for a given time period, the Heiken Ashi indicator plots the average price of a security over a given time period. This is done by taking the average of the open, high, low, and close prices and then plotting the resulting value as a new candle on the chart. To calculate the Heiken Ashi candle, the following formulas are used: Heiken Ashi Close (HA-Close) = (Open + High + Low + Close)/4 Heiken Ashi Open (HA-Open) = (HA-Open (previous candle) + HA-Close (previous candle))/2 Heiken Ashi High (HA-High) = max(High, HA-Open, HA-Close) Heiken Ashi Low (HA-Low) = min(Low, HA-Open, HA-Close) One of the main benefits...

  by: Ivan Cavric Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. They consist of a simple moving average and two upper and lower bands that are placed above and below the moving average. The bands are typically set two standard deviations above and below the moving average, although the distance can be modified. The purpose of Bollinger Bands is to provide a relative definition of high and low prices of a security. By definition, prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful for comparing price action to the action of indicators to arrive at systematic trading decisions. Bollinger Bands can be used on all time frames, including minute, hourly, daily, weekly, and monthly charts. They can be used on any security with high, low, and closing prices, including stocks, futures, and currency pairs. There are several ways to use Bollinger Bands in trading. One common...

  by: Ivan Cavric Fractal Indicator The Williams Fractal Indicator is a technical analysis tool that was developed by legendary trader Larry Williams. It is designed to identify tops and bottoms in the market, as well as potential reversals in price trends. In this article, we will explore how traders can use the Williams Fractal Indicator to make more informed trading decisions. First, it is important to understand how the Williams Fractal Indicator works. The indicator uses a series of five consecutive bars to identify tops and bottoms in the market. A top is identified when the highest high of the five bars is followed by two lower highs on either side, while a bottom is identified when the lowest low of the five bars is followed by two higher lows on either side. Once a top or bottom has been identified, the Williams Fractal Indicator will plot a fractal arrow on the chart. This arrow is used to signal a potential reversal in the market, as it indicates that the current trend m...

By:  Ivan Cavric Fifteen years ago, the Forex market was a domain reserved for central banks, large hedge funds, and financial giants like Warren Buffet. Today, however, the Forex market is the most fluid in the world, with almost 2 trillion dollars traded daily from Sunday to Friday afternoon. This 24-hour accessibility, coupled with the advent of online trading platforms, has made the Forex market a popular choice for investors from all over the world. One of the main attractions of the Forex market is its accessibility. Trading occurs 24 hours a day, 5 days a week, which means that investors always have the opportunity to trade and potentially make a profit. Online trading platforms also make the process of trading easier and more personalized to suit the individual trader's needs and style. Another attractive feature of the Forex market is its size and liquidity. With a daily trading volume of nearly 2 trillion dollars, it is easy for investors to enter and exit positions in th...

By:  Ivan Cavric Forex training is the key to successful Forex trading.  Forex training is one of the most important aspects of the Forex market.  With good Forex training comes good profitability in the Forex market. As such, Forex training is one that is very worth to invest in. The benefits it reaps is high. Forex training courses will be very beneficial for you to obtain the necessary skills to get started in the Forex market.  Forex training more frequently or adding more sets may lead to slightly greater gains, but the small added benefit may not be worth the extra time and effort (not to mention the added risk of injury). Forex training is available via online courses, advanced trading workshops and one on one mentoring. Forex training is always an essential part in every step of daily life. Forex training and practice can mean the difference between success and failure and indeed between modest success and turbocharged success. Forex training for Forex offers...

By:  Ivan Cavric Any one who has ventured into the real market place would definitely have an idea what a Forex is and share the many promises and possibilities this horizon can bring. What Is Forex? FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.   Basically, forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies. The exchange market and the trading as we know it today started in the 1970’s. It has no definite place. It has no definite location. The foreign exchange market is found wherever there is a financial center where people conduct constant exchanges and buying and selling. To ensure definite success in this field, the main goal has to be kept in mind. The keywords to traders in the foreign exchange market are to ‘buy low and sell high.’ This is the way to get the profits coming in. Why Are People Trading...

By:  Ivan Cavric   The Forex market is the largest trading network in the world with $1.8 trillion dollars being exchanged every day.  There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include:  EUR (Euro), GBP (British pound), JPY (Japanese yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar).  Each of these currencies is exchanged with the currency of other nations at different exchange rates—which are always in a state of flux because the market trades around the clock (Sunday through Friday). The volatility and sheer size of the market means that there is ample fluctuation to produce big profits—and losses.  The challenge for the investor, as always, is to predict which direction the rates of currency pairs will fluctuate.   The beginning point in any investment strategy is determining what type of analysis will be used to h...

By:  Ivan Cavric As you read forex charts, remember that the two fundamental approaches for online forex trading: fundamental analysis and technical analysis. Fundamental analysis doesn’t rely on forex charts. It scrutinizes political and economic indicators to determine trades. Charts here are deployed as used as a secondary reference. Technical analysis on the other hand, attempts to predict price swings by analysis of historical price activity. Those who use technical analysis study the relationship between price and time. The most actively traded pair of currencies is the Euro and the US dollar, so we will use them in our example. The dollar is on the right hand side of the chart and the Euro is on the left hand side. The currencies are expressed in relationship to each other in pairing. Forex charges will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left side. Looking at the typical EU-USD, chart you will noti...

By:  Ivan Cavric I’m going to be 100% honest with you and tell you the following before you consider trading currencies: All forex traders, and I mean all traders lose money on trades. Ninety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.  Trading forex is not for the unemployed, those on low incomes, who can't afford to pay their electricity bill or afford to eat. You should have at least $5,000 of trading capital (in a mini-account) that you can afford to lose. Don’t expect to start an account with a few hundred dollars and expect to become a kazillionaire.  The foreign exchange market is one of most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends. You would think traders all over the world would make a killing, but success has been limited to very small percentage of traders.  Many traders come with false hope of making a g...

By:  Ivan Cavric Forex trading has a big appeal among the people due to the possibility of creating instant wealth. If forex trading is equipped with a good strategy, preferably a unique one will be of great help in achieving success. Forex trading strategies reduce the risk irrespective of the person’s participation in position trading, or day trading, or swing trading provided they are disciplined enough to stick to the strategy adopted. The best forex trading strategies are adopted by forex traders who are blessed with keen market sense and also who are able to privy to get inside information. On the basis of that information they develop forex investment strategies. The forex trading strategies which are devised after observing the market for quite sometime gain profits by rising above the odds. The forex traders who are best in their profession do not enter a trade without devising an exit strategy. They are the people who know very well when to minimize their losses and when ...

By:  Ivan Cavric Hundreds of thousands of individuals have already joined the FOREX market. If you are interested in a way to invest your money with quicker returns, FOREX may be perfect for you. But before you can begin earning money, you should thoroughly understand the FOREX market. Investing Methods To better understand the FOREX market, you can compare this investing method to trading stocks. In the stock market, you can buy shares of many different corporations in the hope that stocks will rise, earning you a profit. Well, the FOREX market works in the same way, except you are not buying shares of a corporation. Rather, you are buying and selling currencies. The aim is the buy a currency and sell it when the currency rises, thus earning a profit when the currency is more valuable. As with the stock market, the FOREX market consists of those who invest a small amount as well as those with millions to invest. Any individuals with any capital can join in on the action. Because o...

By:  Ivan Cavric It is a well documented fact that within the “business” of trading the financial markets, as much as 90 % of the participants lose and continue to lose money. So if 90 % are losing, that therefore means that 10% are gaining each and every time.  In order to improve my own trading record, I deliberately set out to try and discover what it was I had to do to become one of the 10% (The Winners) who are consistently making money from the unfortunate remaining 90%  (The Losers) who don’t.  My research and investigations was to speak to as many successful traders as I could, to read as many articles, publications and books which have been written by successful traders. It wasn’t until I started my research, that I quickly realised just how much has been and no doubt will continue to be written about trading and the psychology of trading. What is even more astounding is the amount that has been written by so called “gurus” who actually haven’t made any sign...

By:  Ivan Cavric It is one of the most talked-about advantages of trading on the Forex—the commission-free trades!  Unfortunately, while we would all like to think that Forex brokers are just out there executing trades for the fun of it, the simple truth is that everyone needs to make money—even the brokers.  While they may not charge a traditional commission, brokers on the Forex still make their money whenever trades take place.  Brokers actually are compensated in a number of ways, including: Buying/Selling Currencies Earned interest on deposited funds Converting and holding currencies Rollover fees It is in the buying and selling of currencies that brokers make the majority of their money.  They make this money in something known as the “spread”, or the difference between the asking and bidding price of the currency pair.  The “ask” is the price a retail Forex trader would pay for a position.  The “bid” price refers to the amount that an investor c...

By:  Ivan Cavric No discussion of trading system evaluation would be complete without a discussion of drawdown. We must always look at the maximum drawdown of any trading system as it is very, very important. The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading system’s equity. Let’s say for example that we have a trading system that reaches a particular equity peak of $100,000. Let’s further say that two weeks later, the trading system equity is at $80,000. In this example, let’s say that the $80,000 equity happens to be an equity valley. In that case, the peak-to-valley drawdown would be $100,000-$80,000 equals $20,000. This means that the maximum drawdown is $20,000. So why is the maximum drawdown such an important measurement in our evaluation of a trading system? It’s because the maximum drawdown gives us a measure of the survivability of the trading system. A simple measure, but a measure nonetheless. Basically, when we look a...