The Gaps

What is referred to as the gap or gaps between the price jump is a period to the highest price in the period following bottommost (gap up) or vice versa (gap down). When that happens the market is not very active or in the pattern of congestion with the volume low, then the value does not mean that the so-called gap in ordinary or common gaps. When accompanied by high volume, then we are talking about the gaps in transparency (Breakaway gaps) and the expected price movement will be a faster way to breach it.

Can also increase the volume on the direction of a movement in prices, then found that with such a gap is running (runaway gap). Demiikian gap can produce a target price (price objective) the distance is measured from the point gap and the length is the same as the previous peak or valley to the point.

There are also referred to as a gap in the movement behind the (island reversal gap) is limited by a gap after the (exhaustion gap) and through the gap (gap Breakaway).

RISK MANAGEMENT II

Understanding risk management is very important for investors to meghandle transaction that position so that one does not experience a greater loss. Risk management are:
1. Cut Loss
Is immediately close a transaction due to the wrong position to take any decision, Cut loss is done in order not to experience a greater loss.
2. Locking / Hedging
Lock the transaction is the wrong position with the position of the transaction without meliquid, to hold the loss
3. Reverse Cut
Meliquid soon as possible is the wrong position, and then replace it with the opposite position
4. AveragingIalah transaction again with the same position, without meliquid of the transaction, based on the analysis of the right, especially when the price movement so that it will turn profit in the second transaction to balance losses in the previous transaction

OPPORTUNITY AND RISK

The opportunities and risks are important issues that must be understood when someone wanted to plunge in the business of trade measure. To better understand how the business opportunity of this let us cermati following illustration:
Mr. Yudi is an investor in the business of working Forex. Transaction EUR / USD on Thursday, 8 May 2008 Tgl.
At the price at 08.00 WIB EUR / USD is 1.5338, based on analysis that he believe, he decided to make a transaction of 1 Sell lot. . Mr yudi meliquid transactions at 08.45 WIB in the price of 1.5296.
Profit earned:
Net point = ((price-price sell liquid) x lot) - (Commission + Spread)
= ((1.5338 - 1.5296) x 1) - (5 + 6)
= 42 - 11
= 31 point
Profit Point x = Value per point
Point x = 31 $ 10
= $ 310
= $ 310 x Rp 6,000
= Rp. 1,860,000

Then at 13.00 WIB The Price EUR / USD is 1.5316, based on analysis that he believe, he decided to do the transaction again, and this time he decided to do the transaction of buy 1 lot on the price of 1.5316. Mr. Yudi meliquid In the transaction at 18; 00 WIT in the price 1.5366

Profit earned:
Net point = ((hrga Liquid - buy price) x lot) - (Commission + Spread)
= ((1.5366-1.5316) x1) - (5 + 6)
= 50 - 11
= 39 point
Profit Point x = Value per Point
= 39 x $ 10
= $ 390
= $ 390 x Rp 6,000
= Rp 2,340,000

From the illustration above we can see the opportunities that exist in this business in one day, if a business can take that opportunity, not a chance it might not be a profit own business each day.
However, there is every opportunity that also brings risks that should be ready to face. In the illustration above, Mr. Yudi take 2 times a right decision based on the analysis of the right also. If the illustration above Mr. Yudi take the wrong decision, such as Mr. Yudi In the first transaction Buy making a decision, then he's going to be losses (risk). Similarly in the two transactions to make the decision if he's wrong.

FOREX

Forex abbreviation of Foreign Exchange, or the exchange value of different currencies. forex activities unwittingly or knowingly, often carried out by all the world, when you travel abroad you sure you exchange currency in the currency of your country that direction. Or another example as a result of the import-export activities, the needs of market institutions and banks, make sure the exchange of currency.
When we take advantage of trade with the difference between petukaran purchase price and the selling price fluctuation every minute, usually called the trading of forex trading is usually done through a trading house / brokers! Can be online or via the Internet telp, or even with the manual.
Type of forex being:

a. Major rate
Is the type of currency exchange, between the currency of your currency in the dominant international currency with the U.S. dollar
Example:
EURO against the U.S. DOLLAR (EUR / USD)
POUNSTERLING against U.S. DOLLAR (GBP / USD)
Australian Dollar against the U.S. DOLLAR (AUD / USD)
DOLLAR against JAPANESE YEN (USD / JPY)
DOLLAR against Swiss Franc (USD / CHF)
b. Cross rate
Is the type of exchange of currencies other than the currency of U.S. dollars.
Example:
POUNSTERLING against JAPANESE YEN (GBP / JPY)
Australian Dollar against JAPANESE YEN (AUD / JPY)
EURO against POUNSTERLING (EUR / GBP).

Asian Stock Index (Asia Stock Index)
Indicator is a level of stock prices combined measure of the average movement of the prices listed on the stock exchange. Stock price index future ditransaksikan that is the price index in the future SIMEX (Singapore International Monetary Exchange) for the Nikkei Index Future, for the Hong Kong Stock Exchange Index Hangseng future, and South Korea Stock Exchange for the Kospi Index Future.


Bullion (Gold and silver)
Noble metal bullion is recognized as one of the oldest means of transaction in the world.

Differences Stock Exchange and Stock Market

Contractual trade measure is not as published in the publication of the shares, but buyers and sellers contract to create a new contract each time they reach an agreement.
On the Stock Exchange shares, the registered number of effects is limited. Seller, except emiten, shareholders can not create it, because in the capital markets or the seller must have the effect of borrowing, may sell them before. While the measure on the exchange, the buyers and sellers contract to create a new contract each time they reach an agreement.
Dipasar capital of physical trading is going on sale and purchase shares which do physically, so that happens The shares received physical worth with an obligation to pay 100% of the transaction, while in the trade measure is being contract / agreement or promise to give or receive an item in the future. As a seller or buyer in the market measure must submit a number of funds, only about 5 - 10% of the value of the commodity as a good faith ditransaksikan (good faith), which is called margin

Bold 2009 Prediction for You

Here's my bold prediction for you in 2009!

You will break your trading resolutions by the end of February.

• You will abandon your trading plan
• You will fall into the same destructive trading patterns you resolved to change
• Your account will earn the same or less than in 2008

I know this this sounds harsh, but statistically speaking, that's what will happen to most traders. So, are you going to let this happen to you?

True, statistics cover populations and not individual traders. The fact is, its traders who are outside of th enorm and trade with focused discipline that really achieve their financial goals. When is now the time to re-focus with discipline and dedication and really commit yourself to your trading plan?

Today is January 15, 2009 and February is just around the corner.

Let this be your wake-up call!

Be honest with yourself and focus with the discipline of a seasoned trader on staying true to your trading plan or risk becoming a statistic!

Happy "Disciplined" Trading!!

ForexJourney.com

Bold 2009 Prediction for You

Here's my bold prediction for you in 2009!

You will break your trading resolutions by the end of February.

• You will abandon your trading plan
• You will fall into the same destructive trading patterns you resolved to change
• Your account will earn the same or less than in 2008

I know this this sounds harsh, but statistically speaking, that's what will happen to most traders. So, are you going to let this happen to you?

True, statistics cover populations and not individual traders. The fact is, its traders who are outside of th enorm and trade with focused discipline that really achieve their financial goals. When is now the time to re-focus with discipline and dedication and really commit yourself to your trading plan?

Today is January 15, 2009 and February is just around the corner.

Let this be your wake-up call!

Be honest with yourself and focus with the discipline of a seasoned trader on staying true to your trading plan or risk becoming a statistic!

Happy "Disciplined" Trading!!

ForexJourney.com

Relative Strength Index ( RSI )

Was first introduced by J. Welles Wilder in 1978 in his book New Concepts in Technical Trading Systems. Rated RSI is in the range 0-100 (the reason why it is classified as a indicator oscillator. Oscillate = range). RSI itself is a momentum indicator that compares the prices between the current value of the attractiveness of the losses occurred.

Applications RSI
RSI can we use to know the following:

Conditions overbought / oversold

Divergence positive / negative

Momentum price movement


Overbought / Oversold the RSI
How to identify overbought condition / oversold with RSI is simple. Simple but not easy. General rules that apply overbought condition is obtained when the RSI line cut 70 and oversold when the RSI line cut 30. And if always 30-70? No. Some books recommend 20-80 and different for each pair we tradingkan. Could be for a particular currency in the overbought conditions, limitations / oversold is on 40-60, so depending on where appropriate. Again, need to be trial and error. However, as a little guidance, RSI will be more accurate to use the market to an efficient and stable. Until now, the market is the forex market the most stable and efficient in pergerakannya (the price is determined more by market and are very liquid). So, a little more restriction 30-70 here is still valid even though not absolute.

Divergence Positive / Negative according to RSI
Just as MACD, RSI can also be used to determine the divergence positive or negative (for the relatives who forget what it means the divergence can be re-read the MACD indicators). How to read any divergence on the RSI is not how to read bebeda with divergence in the MACD.
If the RSI indicator still rising while prices are declining, almost the price can be ascertained that the movement will move the RSI indicator is rising again. Similarly when the RSI are declining and prices are rising, then some time and then move down the price will follow the direction of movement RSI

The Centerline Crossover (Momentum)
As well as the MACD that can be used to measure the strength of momentum increase / decrease in price, RSI can also be used untukhal the same. The difference, if the MACD crossover occurred in the zero line on the RSI line 50.

How to read the strength of a price momentum as the MACD line when the RSI penetrate centerline (line 50) from going down the current trend increase. The amount of momentum comparable with the value of RSI happens. This also applies vice versa.


False Signal on the RSI

Do not use the RSI indicator as you read this section without first! Why? If you're looking carefully enough pictures that I certainly served over some of you ask why there are some circumstances where what the RSI is different from the actual situation?
This is called a false signal alias false signal. If we browse from RSI formula initially can we know bawha basically move with RSI very sensitive. A sensitive indicator that lets us have a lot of "suggestions" to Buy / Sell the indicator concerned. That the benefits. But that is at once a boomerang for us because with the many suggestions that there will be many more opportunities to happen that led to the suggestion to bring big losses.
By many chartist, RSI is not used alone as a main indicator for the nature sensitifnya. RSI is often used as a brace proposed by other indicators.
And what a way to eliminate false signal to the RSI or at least reduce the falsity of the RSI this? There. Of course there is. The most simple way is for the best period in the RSI that we want to use. This process back on trial and error

Nah, the period which is suitable, please specify that you fit the taste of each. If I want to use RSI usually use the period of 10 or 14, but I return again to you as readers.
Alternatively is the nature of sensitivity RSI clipped the parts that are too ringleted RSI. How to provide the RSI penghalus using SMA

Bollinger Bands

Created by John Bollinger in the early 1980 to help an volatilitas and compare the relative price in a period of analysis. Bollinger bands themselves actually consist of three lines that formed a kind of belt restraint against price movements. However, its application in the middle Bollinger Bands are often not shown because the diameter is only the usual Moving Averages

As in terangkan above, the Bollinger Bands own shapes like a belt to become a barrier price movements. When the seimbangan between the demand and supply, the Bollinger Bands will widen more than the condition of balance. If there is a balance which means the market will move sideways in the Bollinger Bands will be more narrow than usual because it is not as fast as the rate when the price uptrend or down trend.

As volatility indicator, actually Bollinger Bands can not stand on its own. This indicator is usually used only as an early indicator to measure the relative price volatility and (volatile = easily changed - = level of volatility in the speed of change). Bollinger Bands indicator is not the action, so if using indicators suggested this one, also use other indicators before making a decision to buy or sell.

Characters Bollinger Bands
Each indicator is certainly a character of each. So also with this one indicator. One thing that is unique is that it has Bollinger Bands enable each person to interpret the indicator this way each. Even John Bollinger himself, the creator of the indicator said that the most interesting in the analysis using the Bollinger Bands are considering how each person using it. Although there are some basic rules in the Bollinger Bands, but it could be a trader with other traders who have different ways and different in the use of the Bollinger Bands. Here is a general character applicable to the Bollinger Bands

• Bollinger Bands are early indicators that can not be used as an indicator action.Harus diapakai with other indicators. Specify one of the best indicators for your action as an indicator, but the indicators do not wear more than one action. Some of the indicators of good action is RSI, Stochastic and momentum. It's up to you.
• In general, prices will move in the belt, but can also move beyond the price of the belt. This could mean that will happen, or even reversal of the trend is in progress. To find out we can see the indicators that we use the action.
• Determining the Bollinger Bands are also in effect here. The small period used the width of the belt will be so small and vice versa.
• When prices are beyond the upper band or the same, while the RSI is still below overbought zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is overbought and is diarea are overbought leave the area, then this means there will be a trend reversal in some candle fore.
• When prices are lower outside the band or the same, while the RSI is still under the oversold zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is oversold and is diarea leave the area is being oversold, so this means there will be a trend reversal in some candle fore
actual pemaduan Bollinger Bands with other indicators can we do when we understand the use of other indicators correctly. The use of appropriate indicators that would result in decisions that support and reinforce each other so that the benefits. The more we understand the use of indicators of the action we take advantage of opportunities as Bollinger Bands volatilitiy indicator.

Use Bollinger Bands

Although Bollinger can not be used alone, but there are some indications open Buy / Sell that we still can get through the Bollinger Bands, especially through middle band. Remember, in the middle band is basically indicator Simple Moving Average. This means that what applies to high schools also apply to the middle band:
• Middle band under the price, then this indicates Bullish trend.
• Middle band on the harag, indications Bearish trend.
• Perpotongan between the middle and the price band, an indication of the trend

Double bottom buy
This will occur when the price cut through lower band twice in succession. There is a double bottom is an indication of the price increase will occur. However, to ensure, needed confirmation penetrate middle price band. If you have cut through middle band, it can be estimated uptrend will occur where we need to buy a position
Reverse of the double bottom is a double top buy sell the circumstances in which penetrate upper price band and validated with perforation middle band, too. This means there will be a decline in prices which we have to open the position to sell first gain.

GU IS CLIMBING

In my long last post I mentioned I was waiting for 1.4650 level. It did reach and a bit more down. At the moment it is at 1.5000. Its a slow climb and looking at daily chart it is still a downtrend but if it maintain its course, it will go uptrend soon.

Still having trouble with internet. Celcom 3G is not as stable as it used to be. I cannot upload and having trouble login to forex account. Anyone else having problem with Celcom 3G??