The Dollar was a main recipient of safe-haven flows as we had further contagion fears in the Euro-zone as Moody’s placed Portugal under review for a downgrade. The EUR/USD hit a 14-month low, and with oil and gold falling commodity currencies weakened as well. US equities managed to cut early losses and by noon NY-time we saw a small counter-rally to the overnight risk aversion. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
www.informedtrades.com A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Standard Deviation is here: en.wikipedia.org The link that I refer to with more resources on Bollinger Bands is here: www.informedtrades.com In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices. Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average. Example of Bollinger Bands: Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here en.wikipedia.org As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average …
www.informedtrades.com A lesson on how to trade the Parabolic Stop and Reversal (SAR) indicator for traders of the forex, futures, and stock markets. In our last lesson we learned about the Average Directional Index (ADX) an indicator which helps traders determine the strength of trends in the market. In today’s lesson we are going to look at another indicator called the Parabolic Stop and Reversal (Parabolic SAR), which helps traders enter and manage positions when trading those trends. The Parabolic SAR is an indicator that, like Bollinger bands is plotted on price, the general idea of which is to buy into up trends when the indicator is below price, and sell into downtrends when the indicator is above price. Once traders are in positions the indicator also assists in managing the position by providing guidance as to how one should trail their stop. Example of the Parabolic SAR While this is an indicator that works very well in trending markets, as you can see from the below chart simply following the basic be long when the indicator is below price and be short when the indicator is above price will lead to many whipsaws in range bound markets. Example of Whipsaws in Range Bound Markets To combat this problem the developer of the indicator J. Welles Wilder (who also developed the RSI and ADX) recommended establishing the strength and direction of the trend first through the use of things such as the ADX, and then using the Parabolic SAR to trade that trend. As mentioned …
Recap: The Aussie pushed to its highest level against the US Dollar since mid-January as the RBA hiked rates to 4.25%. Greek bonds and credit default swaps came under renewed pressure following the return of European traders from holiday and the EUR/USD fell to the 1.3350 area. The USD/CAD hit parity, the USD/JPY receded on lower US Treasury yields, and the GBP/USD managed to win back its losses from the overnight session. News Provided by fxtimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
Friday, March 26th, 2010 Recap: A joint EU-IMF back-stop aid package was agreed upon, which would provide loans which could be worth between 20 billion and 22 billion euro. That gave relief to a pressured Euro which rallied in today’s trading. The greenback however still showed strength against commodity currencies like the Aussie as there was a bout of liquidation of Aussie long positions. News Provided by fxtimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
