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Features of the Bollinger Bands

  • The bands bounce the market moves back. In other words a market move originating at one band often goes all the way up or down to the other band.
  • Sharp market moves happen when the bands contract and approach the average. The longer the period of less volatility then the higher the possibility for a breakout of the bands.
  • The breakout of the band means that the current trend is usually maintained.
  • A top or a bottom outside the band followed by a top or a bottom inside indicates a trend reversal.

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Currency Index of LiteForex

The Liteforex index of a particular currency is the rate of influence of a corresponding currency on the basket of main currencies like CHF, JPY, CAD, EUR, GBP and AUD.

This is how they are counted: USDLFX = ((USDCHF * USDJPY * USDCAD) / (EURUSD * GBPUSD * AUDUSD))^(1/7) EURLFX = USDLFX * EURUSD GBPLFX = USDLFX * GBPUSD and so on.

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Day Trading Forex

Day trading refers to forex strategies to buy or sell the same day. Many day traders leverage large amounts of money to exploit price movements in highly liquid currencies.The day trader is looking for two things in the store: the liquidity and volatility. Liquidity to enter and exit stock at an affordable price (i.e., tight spreads and low slippage). Volatility is simply a measure expected price range on a daily basis an area where a day trader operates. More volatility means more profit or loss.

Once you know what kind of actions that you are looking for, you must learn to identify the possible entries. There are three tools you can use:

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Parabolic SAR Forex Trading Strategy

Parabolic SAR forex trading strategy was developed by J Welles Wilder in 1976. It is one of the most popular trend indicators in the forex technical analysis. While most of indicators show us the beginning of a new trend, parabolic SAR points to the end of a trend.

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Oil and Forex

Higher oil prices have a negative impact on consumer spending. The obvious reason is that, higher oil prices results in higher cost of production of the majority of consumer goods.Then again, higher oil prices make the individual consumer spend a bit more on their gas and fuel for heating their homes. This means that higher oil prices invariably results in an economic downturn in most countries in the world.

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