It is the ideal tool to accompany the tendencies and to optimize your exits. Super Trend evolves with the top or the lower part of the prices according to the developed tendency. It accompanies the prices as a following stop with the difference that this one does not progress or is not closed again on the prices during the zones of congestion. That gives more space and time to the prices to evolve, you thus giving the possibility of collecting a more important movement. You will be able to use it as indicating of exit as soon as this one changes direction or to position stops of protection.
Application of the method
Point entrance: Generally it is preferable to privilege the positions purchasers when Super Trend evolves with the lower part of the prices and a contrario it is preferable to take only positions sales when Super Trend evolves with the top of the prices. It is possible to reinforce its position when the course comes to type on the super trend without crossing it.
Point exit: The exit is carried out when Super Trend changes direction.
However, the stops loss must be placed a little at the top or below super trend according to the direction of the position. The larger the unit of time will be, the more it would be necessary to draw aside its stop of the super trend. Indeed, it often happens that the wicks of the candlesticks cross the super trend and that the fence of the same candlestick is done finally on the super trend for after involving a rebound of the course.
Advantages: Allows to benefit from great movements; Do not stick to the prices and thus avoids many forgeries signals in the event of side tendency or of correction of the market; Be used on all the time bases; Offer very good performances; simple of use
Disadvantages: The stops of protection are often distant owing to the fact that the super trend does not stick to the prices;
It is method is extremely simple and makes it possible to benefit from great movements. Indeed, moving average is indicators of tendency. To apply this strategy, it is enough for you to choose 3 moving average. That can be for example the MM20,50 and 100 or the MM7,14,21. They are the groups of moving average most often used. The more the moving average is parameterized over one short period, the more sensitive it will be to the variations of course and will change direction quickly. The choice of moving average used thus depends on your style of trading. For a trading short term, privilege moving average short in order to obtain a maximum of signals. The risk is then to obtain a large number of false signals. It is thus with you to choose.
Application of the method
Point entrance: When the moving average shortest crosses with the fall or the rise the two others, it is then necessary to return in the direction of the movement. To avoid the false signals, wait until the candlestick on your timeframe is enclosed before returning on the market.
Point exit: The position closure is made when the moving average shortest recrosses in the other direction two other moving average.
Advantages: facility of use; possibility of programming an automatic trading; allows to benefit from great movements
Disadvantages: ask time especially if the timeframe used is small. It is indeed impossible to establish a level of exit has the advance; Number important of false signals.
Since the devastating seism of January 12th, population of Haiti east thrown in the streets, without roof, awaiting with rage the international assistance which delays. Whereas the black-market makes new great strides and that the gangs seize the devastated streets, the population is in search of its economies. The savings of the Haitians are often under tons of engraved, their devastated house or the banking institutions which, following the example of presidential palace, did not resist the jolt.
For a few days, the financial system has started to be raised painfully even if dollars and gourds, i.e. the national currency, are always rationed. Contrary to the trade banks and their head offices located at Port-au-Prince, the central bank, a large made modern building of glass, is still upright. For a few days, the establishment has started to pump money towards the few still opened banks or about to opening.
Since the beginning of last week, the population which is always in search of liquidities can go in about thirty points of service located in all the Haitian capital. Many are those to come there to deposit the check of their employment in order to recover a little cash. However, of the restrictions were imposed by the authorities since the customers can withdraw only a few tens of dollars at the same time. The objective of the authorities is to avoid a rush towards the banks whereas a medical crisis dozes.
Gradually, the financial system should however find a pretense of normality, the provincial banks, which were not touched by the seism, restocking since a few days the banks of the capital still upright.
Measurements in favor of Greece, which fights to restore its public finances, “are not excluded” but would come from public financial institutions and not of the States members, indicated Saturday to Davos a European government source.
Excluding a rescue from great scale of Greece, of which the public deficit exploded, this government source specified in AFP that institutions like the Funds international currency (FMI) or the European Investment Bank could provide this help.
That would be however considered only provided that Greece “makes its duties” as regards reduction of the budget deficit, specified the source in margin of World economic forum (WEF) of Davos.
Greek the Prime Minister Georges Papandréou and his Minister for Finance Georges Papaconstantinou, present in the Swiss ski station, had ensured Friday that their country would arrive by his own means to reduce its budget deficit, contradicting an financial aid of the countries of the euro zone.
Greece has passed through the worst crisis of its public finances for thirty years, with the explosion of its debt envisaged at 113% of the GDP for 2009 and the revision of its public deficit with 12.7% of the GDP.
The assumption of such a help was discussed these last days but was highly contradicted officially, while Greece was kicked up a rumpus hard on the bond market.
The minister Frenchwoman of the Economy Christine Lagarde expressed his “confidence” in the capacity of the Greek government to rectify his finances. It ensured that the members of the euro zone were “all interdependent the ones with regard to the others”, but that “there is no system of rescue”.
The managing director of the IMF Dominique Strauss-Kahn repeated that its institution was “ready to intervene” but estimated that “that will not be obligatorily necessary”.
Press informations gave a report on preparations on Germany and France, support measures for Greece within the European Union in particular. Information was officially contradicted in Paris and Berlin.
For Forex Trading profitable, you need to capture the trend and stick to it until a healthy part of development. Despite the fact that there are many indicators are characteristics of the operator to identify trends and business models, point and figure charts are among the signals generated by the simplicity and lack of clarity on the ad. The advantages of P & F Chart is its simplicity. Although it may seem complex and difficult at first glance, the inexperienced operators to act terse representation of the action of the market makes it an ideal choice for trend following strategies, where the most Retracements we can ignore, and the instability following the main pulse of the market.
AP Graphic & F consists of boxes, and OS X. X indicates an uptrend, the price has risen during this period. An O indicates a period of falling prices. But to do this, unlike other types of diagrams, charts, P & F, not all measures of prices in record time. There are two important criteria for the inclusion of daily price changes in a chart P & F: size location and level resolution. Frame size determines the minimum difference between opening price action before the close of trading days in a column of X (concept) in an uptrend) or less similar to the previous day in a column of Os (trend downwards. Cancellation determine the minimum amount of traffic, if the value is in conflict with a continuing trend. This is the minimum amount by which it must refuse a column of X and begins a column in the OS, if the price decreases, and vice versa, although growing. They have, in other words, until the stay Cancellation less than the amount set aside in a uptrend, we have a column of X, if the same applies to a downtrend, then we have a column in the OS. The market shares, the box size is usually 1, and the amount of Retracement is 3rd
It sounds complicated but is really very simple. Traders buy or sell turning points. For example, if after a period of X-chart shows, it is likely that a reversal has taken place, and time to market short. However, there may be a trend right after the exit and keep buying and selling as the main trend remains intact. Since the P & F chart significantly affect the single path that covers the trends of this resolution shall be defined and perhaps more reliable.
The P & F chart is not very popular among professionals, and many brokers Forex Trading, leave it in standard packages. However, this does not mean that this instrument may be less effective than others. Doing this kind of stock charts for business and want to use foreign currency, there is nothing to prevent you from it. The same rules and principles, and the simple nature and not complication of P & F, you can even make its own calculations in your power to create at any time.
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