The Frontiers Of Trading

by: Ivan Cavric The relative vigor index (RVI) is a technical analysis tool that aims to measure the strength of a security's price trend. It is calculated using the difference between the security's closing price and its moving average, and is plotted on a chart alongside the security's price to help traders identify potential buy and sell signals. To calculate the RVI, you first need to calculate the security's moving average. This is done by taking the average of its closing prices over a certain number of periods, such as 10 days or 20 days. The difference between the security's closing price and its moving average is then plotted on a chart as the RVI. The RVI is often used in conjunction with other technical indicators, such as the moving average convergence divergence (MACD) indicator, to provide a more comprehensive view of the security's price trend. If the RVI is rising while the security's price is also rising, it may be a sign of a strong uptren...

by: Ivan Cavric The Commodity Channel Index (CCI) is a momentum-based technical indicator that was developed by Donald Lambert in 1980. It is a versatile tool that is used to identify cyclical turns in commodities, stocks, and other financial instruments. The CCI is based on the idea that prices tend to remain within an average range, with deviations from this range being an indication of an uptrend or a downtrend. The CCI measures the number of standard deviations that the current price is from the average price. When the CCI is above 100, it indicates that the price is above the average and could be overbought. When the CCI is below -100, it indicates that the price is below the average and could be oversold. To calculate the CCI, Lambert first identified the typical price of a commodity by adding the high, low, and closing prices and dividing the sum by three. He then calculated a moving average of the typical price and used it to determine the average deviation from the typical pr...

  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 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   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 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 Between 5 p.m. EST Sunday and 4 p.m. EST Friday, there are millions of Forex traders around the world trying to make a profit by predicting the future movement of currency exchange rates. With nearly 1.8 trillion dollars changing hands each and every day, the Forex is the largest and most fluid market in the world. Traded 24-hours a day and with investors having instant access to price changes via an Internet station, it is literally possible to watch one’s fortunes ebb and flow—one pip at a time! A pip is equal to the smallest price increment that any currency can make. For the U.S. dollar and most major currencies, that amounts to 0.0001 (0.01 for the Japanese Yen). While it seems near impossible to make any money when dealing with such small numbers, the standard transaction unit on the Forex is $100,000 and is called a lot. Thus, the movement of just a few pips in either direction can turn into big profits or big losses—real fast! In truth, playing the Forex is...

By:  Ivan Cavric The Forex (Foreign Exchange Market) exists because multi-national corporations and nations need to buy and sell goods/services from outside sources.  To do that, they need to exchange their home currency with that of other nations.  As you know, not all currencies have the same buying power so nations, banks, and corporations exchange their money with one another just as tourists do when traveling abroad—same concept, just a LOT bigger scale! In fact, the Forex is the single largest financial market in the world and upwards of 1.8 trillion dollars are traded every day—between the hours of 5 p.m. EST Sunday thru 4 p.m. EST Friday.  Between those hours, the Forex market is open and there are always brokers out there willing to buy and sell positions.  However, unlike the NYSE, there is no centralized exchange but rather an informal network of computers supplied by investment houses, central banks, and other large players which help facilitate the ...