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Friday, 15 February 2008 |
Fibonacci
Fibonacci is a massive subject and there are a lot of different areas you could investigate,however, for the purposes of the method to be used in this training material, we shall onlybe concentrating on a few specific points.Leonardo Pisano (Nickname Fibonacci) was a mathematician, born in 1170, in Pisa, Italy.Fibonacci had also learnt accounting. Fibonacci contributed to the science of numbers, andintroduced the Fibonacci sequenceThe Fibonacci sequence is the sequence of 1,1,2,3,5,8,13,21,34,55,89,144 etc every next numberis the sum of preceding two.There are also fibonacci ratios, by comparing the relationship with each number, and eachalternate number and even number to the one to the four places to the right, we arrive at somefairly consistent ratios. The important ones are .236, .50, .382, .618, .764, 1.382 1.618, 2.618, 4.236.For example if you divide 34 by 89 = 0.382. As a trader you do not need to go into the mechanicsof working out the numbers, as your charting program will work all this out for you.It turns out that the Fibonacci ratios are prevalent in nature around us, in the universe, in plantsetc, so what you may ask is how come one should apply the fibonacci techniques to thetrading environment.Traders study the |
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Last Updated ( Friday, 15 February 2008 )
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Thursday, 14 February 2008 |
BACKGROUND TO FOREX
The foreign exchange market is probably one of most interesting markets, as due to its sheer sizeand volume, it would make it impossible for any one person, institution or government to control.You may recall that during the ERM crisis, even the British Government was unable to controlthe Pound.The foreign exchange market now dwarfs any other investment market, with over $2 trilliontraded every day, far more than the worlds stock market and bond markets combined.The word FOREX is derived from FOReign EXchange and is the largest financial market in theworld, unlike many other markets, the Forex is open 24 hours a dayStructure-Decentralised, over the counter market, also known as the interbank market-Main participants: Central Banks, commercial and investment banks, hedge funds, pensionfunds, corporate and private speculators-Online trading began in the mid to late 1990sTrading Hours-24 hours market-Sunday 5pm EST through to Friday 4pm EST-Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe and America.Major Markets-The US & UK account for more than 50% of turnover-UK alone accounts for over 30% daily turnover by country.-Major markets: London, New York, Tokyo-Trading activity is the heaviest when major markets overlap.Trading-An estimated 95% of transactions are speculative-More than 40% |
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Last Updated ( Thursday, 14 February 2008 )
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