Forex trading -facts and figures
Forex trading -facts and figures
Forex trading -facts and figures
Learnforex-trading.com brings you forex facts and figures;
Top 10 currency traders
(% of overall volume, May 2010)
Rank Name Market share
1 Deustche Bank18.06%
2 UBS AG11.30%
3 Barclays Capital11.08%
4 Citi7.69%
5 Royal Bank Of Scotland6.50%
6 JP Morgan6.35%
7 HSBC4.55%
8 Credit Suisse4.44%
9 Goldman Sachs4.28%
10 Morgan Stanley2.91%
Most traded currencies
(April 2010)
1. Us dollar USD ($) 84.9%
2 Euro EUR () 39.1%
3 Japanese Yen ()19.0%
4 Pound SterlingGBP ()12.9%
5 Australian DollarAUD ($)7.6%
6 Swiss FrancCHF (Fr) 6.4%
7 Canadian DollarCAD ($)5.3%
8 Hong Kong DollarHKD ($)2.4%
9 Swedish KronaSEK (kr) 2.2%
10New Zealand DollarNZD 1.6%
Double bottom
A double bottom refers to a lower rate at which the currency had declined twice, but failed to penetrate. Generally, the asset will trade within that range, but if a breakout occurs, it can be expected to be a substantial move.
Double top
A double top refers to a higher rate that the currency has risen to twice, but failed to exceed. In this case, the asset can generally be expected to trade within the range. If a breakout occurs, just as with a double bottom, it is usually a substantial movement.
Fibonacci Arc
To build a Fibonacci Arc, the position of two extreme points must be set. This is done by drawing a trend line between the two points. This line can be drawn from the lowest cavity or gap, to the highest peak on the chart. Then three arches are created with the center arch falling at the second extreme point. The arches should be drawn at the Fibonacci Arc
Fibonacci levels of 38.2%, 50% and 61.8%.
A Fibonacci Arc is considered to demonstrate the potential levels for support and resistance. Generally, Fibonacci Arcs and Fans are both drawn on the chart at the same time. This allows the levels of support and resistance to be defined by the points where these lines cross. It should be understood, that the points crossing the arches from a price curve can vary depending on the scale size of the chart. But, because the arch is a part of a circle, its form is always constant.
Simply put, Fibonacci Arcs are constructed by first drawing a trend line between the two most extreme points on the chart. For example, the trend line should be drawn from the lowest gap to the highest opposing peak. Then, three arches are drawn with the second arch centered around the second extreme point.
Fibonacci numbers
In 1170 A.D., Leonardo Fibonacci a mathematician, discovered the relationship that is now referred to as the Fibonacci numbers while he was studying the Great Pyramid of Gizza, in Egypt. The Fibonacci ratio exists between any two successive numbers in the Fibonacci sequence. The numbers are a sequence of numbers for which each successive number is the sum of the two previous numbers. For example: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 etc.
When the market is moving rapidly in any given direction, it sometimes experiences breaks where investors simply hold on to their profits. This phenomenon is known as retracements and generally creates good opportunities for investors to re-enter the market at some attractive levels before the move resumes. Retracements are usually similar in size. Technical traders in particular, pay considerable attention to retracements that are at the Fibonaccio ratios of 38.1% and 50%.
Fibonacci retracement
Fibonacci retracement is displayed by drawing lines between an extremely high peak and an opposing extreme low peak A series of horizontal lines are drawn to intersect the trend line at the Fibonacci levels of 0.0%, 38.2% with 61.8% or 33.3% with 66.6%, 50%, and 100%. When a significant price move occurs, either up or down, the prices will often retrace a significant portion of the original move; sometimes prices will trace the exact move. As prices retrace their steps, support and resistance levels will often occur at or near the Fibonacci retracement levels.
Fibonacci spiral
The logarithmic Fibonacci spiral provides connection between the price and time analysis. The spiral is built on the basis of a piece between two extreme points, set by the user. It is the answer to long searches of the decision, allowing to predict both the price, and time. The size of chambers increases proportionally to Fibonacci ratio 1.618 (this coefficient is set), and thus their form remains constant.
The spiral is easy for understanding and, theoretically, it is easy to apply in the markets. But, as it defines rotary points, signals of trading demand that positions got out to opposite current price trend (i.e. sale at the high price or buy at low price).
As the series of Fibonacci numbers continues, it's interesting to not that any given number is 1.618 times greater than the preceding number and 0.618% of the next number. For example:
(34/55 = 55/89 = 144/233 =0.618) (55/34 =89/55 =233/144 =1.618), and 1.618 =1/0.618.
These same properties of the Fibonacci series occur throughout nature, science and math. The number 0.618 is often referred to as the "golden ratio", since it is the root of the following polynomial: x^2+x-1=0 which can be rearranged to x= 1/(1+x).
So, that's were the fib 0.618 comes from. The other fibs 0.382 and 0.5 commonly used in technical analysis have a less impressive background, but are just as powerful when used in a Technical analysis.
0.382=(1-.618)=(0.618*0.618)
and 0.5 is the mean of the two numbers.
Other neat fib facts (0.618*(1+0.618)=1 and (0.382*(1+.618))=0.618.
Fibonacci Time Goal Analysis
For construction of this tool the user sets position of two extreme points. The Fibonacci Time Goal Analysis uses relations of 0,618, 1,000 and 1,618 for an exact prediction of day, time and the price accordingly at which reaching the trend will change a direction.
The Fibonacci time interval is a set of vertical lines, which are drawn from each other on time intervals which correspond to numbers of Fibonacci's sequence. Fibonacci Time interval is the tool of the forecast, because as according to a popular belief the most significant market events occur through the time intervals corresponding to Fibonacci numbers.
Fibonacci Time Zones are a series of vertical lines that are spaced at the Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc. The first line is placed at an extreme point on the chart and the lines that follow are spaced at increasingly wider intervals in accord with the Fibonacci sequence.
Interpretation of Fibonacci Time Zones involves looking for significant changes in price at or near the vertical lines. Time Zones are most applicable to a long-term analysis of price action and are probably of limited value when studying short-term charts.
Learn more at learnforex-trading.com/go1
7 Easy Steps to Dominate Forex Trading About Forex Scalping Better way of Living - Forex Trading Forex faq - learn forex trading Forex trading and a few Essential Info about Bollinger Rings Important Aspects of Foreign currency trading Essentials Forex PIP Alerts Now Only $1 - A Look At Forex PIP Alerts $1 Offer Best Guide To Forex Trading with a purpose to learn forex trading Fish Forex Robot Plan Forex Executor Pro System What Is Forex Managed Account? How To Use Forex Signals Understanding Forex Managed Account