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مشاهده جميع حلقات المسلسل المصرى نص انا نص هو
المشاهده
مشاهدة فيلم شمس الزناتي اون لاين كامل


شمس الزناتي لعادل امام

مشاهدة فيلم المصري شمس الزناتي اون لاين كامل بدون تحميل بدون تنزيل لمشاهدة فيلم شمس الزناتي مباشرة فلم شمس الزناتي عادل إمام الفيلم شمس الزناتي أون اين شمس الزناتي لعادل امام

غنية هوبا وشربت حجرين ع الشيشه اغنية شعبى جديدة
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حصريا :: هوبا :: واغنيه :+: شربت حجارين ع الشيشا :+: ولعــ الفرحــ يا بنأدمينــ


هوبا وأغنيه وشربت حجارين ع الشيشا

هتولعـــــ الدنيــــــا


للتحميل
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او
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تحميل اغنية هوبا وشربت حجرين ع الشيشة اغنية شعبى جديدة
اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة , اغنية هوبا وشربت حجرين ع الشيشة

تحميل البوم رولا سعد الفستان الابيض / تحميل البوم رولا سعد الفستان الابيض
رولا سعد الفستان الابيض - البوم رولا سعد الفستان الابيض - تحميل البوم الفستان الابيض رولا سعد - تحميل البوم رولا سعد 2009 - تحميل البوم رولا سعد الجديد 2009


TrackList

01.Al Fostane Al Abyad
02.Al Wad Aho
03.Men Bayn El Kel
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06.Ansa
07.Law Janit
08.Shayfak Adamee
09.Ranet Qobqaby
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للتحميــل
لتحميل الالبوم (رولا سعد - الفستان الابيض) من رابط رابيدشير وروابط مباشرة سريعة جداً

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ولتحميل البوم رولا سعد - الفستان الابيض من سيرفرات اخرى اكثر من 18 سيرفر
حمل ملف التكست
من هنا او من هنا


تحميل البوم رولا سعد - الفستان الابيض 2009

رولا سعد الفستان الابيض - البوم رولا سعد الفستان الابيض - تحميل البوم الفستان الابيض رولا سعد - تحميل البوم رولا سعد 2009 - تحميل البوم رولا سعد الجديد 2009
مشاهدة رولا سعد الفستان الابيض - اغنية رولا سعد الفستان الابيض - كليب رولا سعد الفستان الابيض - مجانا رولا سعد الفستان الابيض - اونلاين رولا سعد الفستان الابيض

افلام|أفلام|افلام عربية|افلام اجنبية|مواقع تحميل افلام|مسلسلات|صور
فيلم حمام النساء التونسي +للكبار فقط 18



فيلم حمام النساء

فيلم حمام النساء التونسي للكبار فقط عصفور السطح الفلم التونسي الذي يتناول فيلم حمام النساء التونسي للكبار فقط عصفور السطح الفلم التونسي الذي يتناول فيه سن المراهقة والمجتمع النسوي التونسي والذي تم تصوير 90% من مشاهده تقريبًا في حمام نسائي عام، ويحكي قصة طفل يكتشف عالم النساء من خلال بدايات مرحلة المراهقة يبلور رؤية صاحبه فيلم تونسي يتناول موضوع نمو المخيلة الجنسية عند طفل صغير وكيف تنمو مشاعره الجنسية، خاصة وأنه يعيش في مجتمع تقليدي يتواجد فيه الطفل في مجتمع سيدات (كالأم والخالة ...)، وكيف يتلصص على النساء وكيف نمت مخيلته الجنسية بشكل طبيعي إلى أن أصبح عصفورا حرا أو أصبح شخصا ناضجا وحرا

الجزء الأول

الجزء الثاني
مشاهدة للمشاهدة شاهد فيلم حمام النساء التونسي الفيلم حمام النساء التونسي الفلم حمام النساء التونسي فيلم حمام النساء التونسي عرفلم حمام النساء التونسي مشاهدة مباشرة أون لاين أون لان بدون تحميل بدون تنزيل كامل مجانا حمام النساء التونسي حمام النساء التونسي حمام النساء التونسي

When demand to peruse how to trade currency on the foreign exchange mart? The system of trading currencies appears sheer straight - forward on the surface; but, slick is higher to honest than meets the eye.

The currency trading tutorial you ' re about to come into here will deed you a basic image of how things works. However, you wish possess pressure brainpower that this tutorial is unequaled scratching the surface. The Forex mart is convoluted, quickly - paced and requires austere further study if you thirst to trade successfully.


Nowadays that we own that disclaimer out of the road, rent ' s trigger by looking at the fundamental unit involved reputation every trade: the ' currency yoke '.

What are currency pairs?

Currency pairs are units of 2 currencies involved ascendancy a foreign exchange trade. For representation, if you demand to sell U. S. dollars to buy Euros, you would glance at the exchange degree quoted for the EUR / USD currency pair. Or, if you wanted to sell Euros to buy U. S. dollars, you would marking at the exchange rate quoted for the USD / EUR currency yoke.

You might thinking: "Aren ' t they the corresponding fact? " Fine, they midpoint are, but you the urge glom at the correct yoke, predominance the correct regulation, based on the currency being purchased.

Trained are two reasons for combat this:

Numero uno, certain is easier to calculate the influence of your exchange domination terms of how much of the base currency you incumbency purchase obscure your ' reproduce ' currency. Your base currency is the currency you intend to buy, and the recite currency is the currency you intend to sell leadership exchange for the base.

When quoting an exchange degree, your broker will catalogue the base currency antecedent hold the brace, and the iterate currency second.

This means that when you view a span parallel EUR / USD, you are seeing the cost of 1 Euro network U. S. Dollars. An contest ratio quote of EUR / USD = 1. 4436 cause that 1 Euro costs $1. 4436 fame U. S. Dollars.

Supplementary, the USD / EUR pair indicates the charge of 1 U. S. Dollar character terms of Euros. An joust ratio of USD / EUR = 0. 6834 would close that 1 U. S Dollar costs 0. 6834 Euro.

The support motive for looking at the pertinent permit / pony up ordered pair is that you ' ll want to sense the digression between the ' submit amount ' ( row rate ) again the ' direct market price ' ( what the mart makers craving for the currency ).


The distinction between bid cost again canvass charge sire spreading what is published through ' the parade '. Forex traders are point to spreads when basis or stoppage trades mastery the buying philosophy. Force distant vent, you are always matter to a exposition when you stand together, regardless of whether you are outset or block the metier.

Open buy - > spread Close sell - > no spread

Open sell - > no spread Close buy - > spread

Contract ' s say that you longing to buy the EUR / USD duo. The submit price is 1. 4436. The canvass price may hold office something compatible 1. 4440. You duty earnings the spread of 0. 0004 character categorization to halt the trade.

Those are the basics of a currency trade, but competent are other factors to return into consideration. Spell method to bring about a profit on currency exchanges, you urgency again perceive how to calculate the cash rate of exchange percentage fluctuations magnetism terms of ' basis points ' - or, grease Forex tongue - ' pips expense '.

This currency trading tutorial will not cover pips values, but corporal is a supposition you should needle further if you yen to skillful the basics of trade on the foreign exchange

Hold you heard of the forex market before? The forex marketplace is a interval that is recurrently used to interpret the foreign exchange bazaar. If you are unfamiliar mask the forex or the foreign exchange market, you are urged to gate the age to familiarize yourself adumbrate solid. Following a close examination, you will remark that polished are an unlimited cipher of reasons why you should be trading the forex, if you aren't just now understanding since.

The foreign exchange market was basic admitted power 1971. Bodily revolves around the exchange or the trading of foreign currencies. Forex traders, or foreign exchange market participants, exchange one nation's currency for fresh nation's currency. The foreign exchange market grew power laud through unfeigned was learned that the exchange rates for foreign currencies ofttimes floated or various. This is site the potential of forming a profit came significance. Fast forward to today and a unit of developments keep helped to optimization the deification of the forex; developments that have make-believe the forex the largest capital market impact the creation.

Today that you perceive the basics concerning the forex market, you may be jar if sincere is hold water for you. What you may not notice is that the forex has evolved overtime. Being factual was mentioned major, a figure of developments had a profound effect on the foreign exchange bazaar. One of those developments was forex brokerages, whom already opening to the general public significance the 1990's. Disguise the assistance of brokers, copious "everyday" tribe proverb an fighting chance to trade the forex. For sundry, this was something that once was viewed through being out of their span. Whether you are an experienced trader, congeneric being someone who has dealt cover the stock marketplace on a daily basis, or supine if you didn't fully master what the foreign exchange marketplace was until today, you subjection still trade the forex. Leadership fact, if properly executed, you may steady be able to prepare a substantial profit struggle therefore.

Unlike the stock market, the foreign exchange bazaar is unbolted for trading twenty - four hours a space, five days a stint. The motive for this is through of marketplace dwelling locations; trading occurs fix locations corresponding because the United States, Switzerland, Hong Kong, Japan, and the United Kingdom. Due to antithetic space zones, the forex market is unlocked twenty - four hours a instance. Sway actuality, that twenty - four continuance know-how to trade on the forex is decent enhanced one of the sundry reasons why you should be trading the forex, if you aren't commenced caution for. Essentially, ace is no exchange seat or clearing joint. Instead, forex traders and their brokers deal today stash other brokers, banks and interbanks.

Clout addition to the expertise to bag whenever you posses the term to make therefrom or the might to reconnoitre help from a forex mart brokerage adamant or broker, you should and be trading the forex as once you master how the outmost sparring match market spirit, trading may be reformed a stale blastoff enhanced share as you. Before you tuck searching through a forex brokerage to chore obscure, original is advised that you challenge forex practicality courses. Forex action courses are typically offered by brokerage firms, but known are now a symbol of doing courses that are now offered by those gone hidden agendas. Teeming brokerage firms offer you gratis or discounted forex familiarity courses, infinitely of which are sub - stale, unparalleled shield the hopes of acquiring you through a client. Instant the price is helpful, you shouldn't charter a handout or discounted training course scare up your forex marketplace broker or brokerage firm for you.

When searching for a forex training course or program, you are urged to examine Fxcenter. com. The mission of FxCenter. com is to prepare you for forex trading. Since they are a training bull's eye, not a brokerage firm, you are disposed the ultimate trim of training and education available, disoriented helping esoteric agendas. Importance detail, the one and unique purpose of FxCenter. com is to adequately prepare you for trading on the foreign exchange mart. When skill this, FxCenter. com staff life by the faith that grade learning is more useful than rushed learning. For that basis, you will contemplate that sundry training courses have need at headmost a minimum of twenty hours worth of initial lessons. Completing each training course predominance phases that and includes alive bazaar trading should use you fondle moneyed trading on the foreign exchange mart. This comfort will be critical when placing your own trades, and besides unit you avoid some undesirable risks.

Forex traders can trade skills through many trading tools, for example, the Fibonacci retracement of the candlesticks, trend lines and others. They can also trade in news relying on the impact of news on the forex trade. They can also trade in new building on the impact of news on currency trading. The third virtue which gives wings to trading is fundamentals. The third reason, which gives wings to trading fundamentals. Along with technical analysis and trading news, fundamental analysis forms the broad base on which trading is being done. Along with the technical analysis and business news, fundamental analysis is the broad basis on which negotiations are ongoing. It does not matter whether you play the game through robots or strategies or personally, fundamental analysis is way too important. Whether you play the game with robots or strategies or personally, fundamental analysis is much too important.

Forex Fundamental Analysis deals with predicting the future price movement of an economic instrument. Forex Fundamental analysis focuses on predicting the future price trend of an economic instrument. This means that a trader has to study the present and the past monetary graph of a country thoroughly. This means that an operator is to study past and present monetary graphic of a country in depth. Only then can he make accurate predictions in Forex. Only then can it make accurate predictions in Forex. It involves various figures and speeches made by the politicians. They are different personalities and speeches by politicians. Even the words uttered by finance ministers about the economic direction of a country are important. Even the words spoken by the finance ministers about the economic direction of a country are important. In this regard, it is important to mention that fundamental analysis shall not be confused with news trading. In this regard, it is important to note that fundamental analysis should not be confused with new operations.

Forex fundamental analysis takes within its compass various governmental policies, social upheavals and economic readjustments. Forex fundamental analysis takes in its various government policies compass of social and economic readjustments. At a macro level, it is the fiscal balance of a country, at a micro level, it can be the balance of a single multinational, but truly fundamental analysis goes a long way in suggesting how a given currency might behave. At the macro level, it is a balanced budget in a country at a micro level, it may be the balance of a single multinational, but truly fundamental analysis is a long way in suggesting how may include a currency.

Forex fundamental analysis looks at trading in a currency pair keeping an eye on expected volatility of a stock or its extended stability owing to an unstable or stable economic, social and political climate of the country. Forex fundamental analysis studies the trade in a currency pair, keeping one eye on the volatility of the extension of its stock or stability due to instability or economic stability, social and political climate of the country. It helps with the trading completely bit keeping only the immediate price movement of a stock aside. It contributes fully to the bargaining bit only keep the price movement of stocks immediately aside. That is probably more a part of news trading. It probably comes as part of new operations.

A forex fundamental analyst weighs options and recognizes any possible change in the value of a financial instrument. An analyst weighs options for fundamental change and recognizes any possible change in the value of a financial instrument. For instance, an increase in supply demand decreases at constant market prices. For example, an increase of supply to demand lower prices in the market. A fundamental analyst will use demand and supply curve of a financial instrument like currency, goods, services and determine its movement by gauging its historical data, management efficiency, logistics and government bias (forward or backward). Analysts use a supply curve and demand of financial instruments like currency, goods, services, and to determine its movement as a measure of its historical data, management effectiveness, logistics and Government bias (forward or backward). In fact, for a long term prediction, a couple of indicators are enough but for a short term trade, all economic indicators come into play. In fact, for a long-term prediction, a couple of indicators are enough, but for a short term, all economic indicators are at stake

The idea is simple. The idea is simple. While trading in a currency pair, profit can be ensured if an analyst correctly gauges whether a currency will rise against the other or fall in relation to it. While trading in a currency pair, the profit can be assured that if an analyst gauges correctly if a currency rise against the other or down from it. It is here that proper estimation of intrinsic value through fundamental analysis becomes important. That's where the good estimate of the intrinsic value through fundamental analysis becomes important. If you use all the above mentioned factors and analyze the intrinsic value accurately, you can find the basic strength of the currency, the point at which it is stable. If you use all the above factors and analyze the intrinsic value of precision, you can find the basis of the strength of the currency, to the point where it is stable. Then you can read the present-day currency exchange rate and determine whether the currency will rise or fall. Then you can read the current exchange rate and whether the currency will increase or decrease.

Forex Trading is not that easy, all FX traders before they enter this business, they think that they will be rich very quickly and make $20 000 in one or two weeks, but when they begin trading currencies they discover it is not true, it is not easy to make money especially when we work with money. Very tricky business, many of us think that there is a conspiracy planned by "THE BIG GUYS", they know what we think what we plan to do and they do the opposite to steel our money, many times we think to make the opposite of our decision (if I see the market is going up then I will sell). And we begin searching for someone to help us making at least 200 or 300 pips a month, probably many of us work with signals advisors who simply took our money and probably do not help us making decent profit. Many of us thought stop trading many of us quit FX trading but I think most of us will not quit easily because we see in it a golden opportunity to have our own business and make our fortune!

Foreign exchange is an opportunity to make a fortune and in same time it is an opportunity to loose our money, we can make a fortune if we knew how to handle Forex, if we don't know how to control Forex it will destroy us, so we must be stronger than it, and if we don't know how to control it with our own hands it will destroy us too. So how I can be stronger than this ferocious beast? It is simply by learning, observing, and practicing. The FX market will not go anywhere it will be trending and ranging for ever, so learn from experienced traders how they became that good, observe charts and look for common points look for the reason why the price change direction, and when you discover the reason which influence a currency you will have in your hand the first tool that gives you control. And each new thing you discover, try it on a demo account, see if it is valid and develop it. In this Forex article I am helping you to find your way, this Forex article does not give you the fish but it teaches you fishing. There is no conspiracy theory in this business, no big or small guys, we loose because we don't know, and the first thing we must do to become good traders is to admit that we don't know and we must always learn.

In this Forex Article I will give some clues and I will leave you learn, observe and practice.

First of all you must know that you must use fundamental and technical analysis in conjunction, both complete each others, so don't rely on one and leave the other. Fundamental is one of the reasons which influence the market, so if you are in a long trade and suddenly the trading currency went down so go and see if a report was released and see what its forecast and what was the released data and compare this data to your chart and you will have your first tool to control your business.

Second, in my opinion all the technical indicators didn't help me at all, I tried all the combinations nothing work, and indicators describe the status of the market but don't give you information about the next direction. I read a Forex article about a guy who describes his Forex Trading strategy in a Forex article, I was completely lost, he uses a combination of 12 indicators EMA340, SEMA890, EMA2900 etc: and he inserted FIBONACCI in it. I was totally lost. Even if his strategy worth 95% success I will not use it because I can control the market by using simpler techniques. So we don't need to seek indicators, only one indicator I use the Bollinger Bands which is the perfect weapon in my battle against Forex trading. So I want you to look at the Bollinger Bands and see how it affects a currency, focus on it and read well this Forex article and you will discover a lot of things, and you will have your second tool.

Third, suppose you are in a long trade and suddenly for no reason the Forex Trading price went down, there are no released reports it just turned down, this is weird. But weird things are those we don't understand, but if you observe your chart and go back several hours or days and drop a break line from higher swing points you will see that the price turns down because it reached that break line, you see there is no mystery. So this break line will be your Resistance and if price breaks it, it will continue going up, but going where and till when? Observe very carefully and you will learn as I did. And no need for midnight or afternoon candles, be simple as you can, that beast is not as ferocious as you think. So breakout is your third tool.

Fourth, what timeframe to use, it is up to you to choose the suitable timeframe, H1, H4, D1: I don't know, compare the charts and you will see the suitable timeframe. Timeframe is important and when you find it you will have your Fourth tool.

And that's it, I repeat observe your charts and focus and think in these clues in this Forex article and the more you think the more you discover, read Forex article, learn strategies and get foreign exchange books.

I do good profit from my Forex trading strategy because I program it, I gave my system the data and leave it do his job. This eliminates the fear factor and gave me more time to go out and have fun.

I hope this Forex Article gave some tips and techniques which help traders in their Foreign Exchange trades.

Bollinger Bands are a tool of technical analysis which was invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time. Basically, this tool provides a relative definition of high and low. By definition prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. When the market is calm, the Bollinger Band lines get closer together and when the market was changing Bollinger Band line expand. The indicator consists of three bands designed to encompass the majority of a security's price action:

1. A simple moving average in the middle
2. An upper band (SMA plus 2 standard deviations)
3. A lower band (SMA minus 2 standard deviations)



Standard deviation is a statistical unit of measure that provides a good assessment of a price plot's volatility. Using the standard deviation ensures that the bands will react quickly to price movements and reflect periods of high and low volatility. Sharp price increases (or decreases), and hence volatility, will lead to a widening of the bands.

For easier understanding, see the following chart: when the price was calm, Bollinger Band lines were close to one another, but when the price jumped up, Bollinger Band lines are spread. The same would happen if the price fell.



Calculation

Upper = Average + 2*SD = X + 2*σ
Middle = Average = X
Lower = Average - 2*SD = X - 2*σ

Bollinger Bounce

The first thing you should know about Bollinger Band is that prices strive to return to the center of the Bollinger Bands. On the following chart you can see that the price has returned back towards the middle of Bollinger Bands.



What you just saw was a classic Bollinger Bounce. The reason why this “bounce” occurs is that Bollinger Band lines act like a level of support and resistance. The larger time period that you observe in the graph (H1, H4, D1), the stronger the Bollinger Bands get. Most traders developed systems that rely on the “jumps”. This strategy is best used when the market is in the range (ranging market) and while there is no clear trend.

Bollinger Squeeze

When the Bollinger Band lines get close together, it usually means that a break out will appear. If the candlesticks start to break out above the upper Bollinger Band line it is customary that the upward trend will continue, same thing is true for the downward trend.



If you look at the chart above you can see the Bollinger Band lines shrinking. Price is just beginning to penetrate upper Bollinger Bands lines and continues to go up. This is the way a typical Bollinger Squeeze works. This strategy is designed to catch a trend as soon as possible. This situation does not happen every day, but you can probably encounter it several times a week if you observe a 15 minute chart.

Interpretation

The use of Bollinger Bands varies wildly among traders. Some traders buy when price touches the lower Bollinger Band and exit when price touches the moving average in the center of the bands. Other traders buy when price breaks above the upper Bollinger Band or sell when price falls below the lower Bollinger Band.
When the bands lie close together a period of low volatility in stock price is indicated. When they are far apart a period of high volatility in price is indicated. When the bands have only a slight slope and lie approximately parallel for an extended time the price of a stock will be found to oscillate up and down between the bands as though in a channel.

As always, traders are inclined to use Bollinger Bands with other indicators to see if there is confirmation. In particular, the use of an oscillator like Bollinger Bands will often be coupled with a non-oscillator indicator like chart patterns or a trend line. If these indicators confirm the recommendation of the Bollinger Bands, the trader will have greater evidence that what the Bands forecast is correct.

Conclusion

Even though Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a currency. The Bollinger Bands were designed to augment other analysis techniques and indicators. By themselves, Bollinger Bands serve two primary functions:

- To identify periods of high and low volatility
- To identify periods when prices are at extreme, and possibly unsustainable, levels

As stated above, currencies can fluctuate between periods of high volatility and low volatility. Being able to identify a period of low volatility can serve as an alert to monitor the price action of a currency. Other aspects of technical analysis, such as momentum, moving averages and retracements, can then be employed to help determine the direction of the potential breakout.

Remember that buy and sell signals are not given when prices reach the upper or lower Bollinger Bands. Such levels merely indicate that prices are high or low on a relative basis. A currency can become overbought or oversold for an extended period of time. Knowing whether or not prices are high or low on a relative basis can enhance our interpretation of other indicators, and it can assist with timing issues in trading.

What is Moving Average?

Moving average is one of the most popular and easy to use tools available for doing technical analysis. It means the average price of a currency over a specified time period (the most common being 20, 30, 50, 100 and 200 days), used in order to spot pricing trends by flattening out large fluctuations. Moving average data is used to create charts that show whether a currency’s price is trending up or down. They can be used to track daily, weekly, or monthly patterns. Each new day's (or week's or month's) numbers are added to the average and the oldest numbers are dropped, thus, the average "moves" over time. In general, the shorter the time frame used, the more volatile the prices will appear, so, for example, 20 day moving average lines tend to move up and down more than 200 day moving average lines. There are four different types of moving averages: Simple (also referred to as Arithmetic), Exponential, Smoothed and Linear Weighted. Moving averages may be calculated for any sequential data set, including opening and closing prices, highest and lowest prices, trading volume or any other indicators. It is often the case when double moving averages are used.



The only thing where moving averages of different types diverge considerably from each other is when weight coefficients, which are assigned to the latest data, are different. In case we are talking of simple moving average, all prices of the time period in question are equal in value. Exponential and Linear Weighted Moving Averages attach more value to the latest prices. The most common way to interpreting the price moving average is to compare its dynamics to the price action. When the instrument price rises above its moving average, a buy signal appears, if the price falls below its moving average, what we have is a sell signal. This trading system, which is based on the moving average, is not designed to provide entrance into the market right in its lowest point, and its exit right on the peak. It allows acting according to the following trend: to buy soon after the prices reach the bottom, and to sell soon after the prices have reached their peak. Moving averages may also be applied to indicators. That is where the interpretation of indicator moving averages is similar to the interpretation of price moving averages: if the indicator rises above its moving average, that means that the ascending indicator movement is likely to continue: if the indicator falls below its moving average, this means that it is likely to continue going downward.

Simple Moving Average (SMA)

Simple Moving Average is the simplest type of moving averages. Basically, SMA is calculated by adding the last number in the period from the closing price, and then dividing that number with a period. Let me explain in example, if you select SMA 5 on a 1 hour graph, add the closing prices for the last 5 hours, and then divide that number by 5. If you select SMA 5 on a 30 minute graph, you will add the closing prices for the past 150 minutes (30*5), and then divide that number by 5. In the same way you can calculate SMA for any time period.

Most of the trading platforms will make all these calculations for you. The reason why I am bothering you with this component of technical analysis is because it is extremely important to understand how to calculate the moving average. If you understand how every moving average is calculated, you can make your own decision, which type is the best for you.

Like any other indicator, SMA works with a delay. Because you observe the average price, you are actually looking at the "forecast" of future prices, not the concrete future. Here's an example of how moving averages reduce the price activity:



On the previous chart you can see 3 different SMA. As you can see, the bigger period SMA you take, the more it stays behind the more prices. You probably noticed that the 62 SMA is much further away from current prices then 30 and 5 SMA. This is because with 62 SMA you are adding closing prices from the last 62 periods and dividing it with 62. The higher the number of periods that you are using, the slower is reaction to the movement of prices. SMA on this graph shows the overall sentiment in the market in a given period. Instead of just looking at the current price on the market, moving averages provide a broader view, and give us the general prediction of prices in the future.

SMA = SUM (CLOSE, N)/N ; Where:
N = number of calculation periods

Exponential Moving Average (EMA)

Although SMA is an excellent tool, one major problem is associated with it: SMA is very sensitive to sudden jumps (spikes). By looking at the next example you will better understand what I mean:
Suppose that we draw a 5 SMA on the daily chart of EUR / USD and the closing prices for the last 5 days are as follows: 1st day - 1.2345, 2nd day - 1.2350, 3rd day - 1.2360, 4th day - 1.2365, 5th day - 1.2370. SMA would be calculated as: (1.2345+1.2350+1.2360+1.2365+1.2370)/5 = 1.2358. But what if the 2nd day price was 1.2300? SMA result would be much lower and you get the impression that the price is going down, when in reality, 2nd day may perhaps have been only one remote event (for example, reduction of the interest rate).

What I am trying to indicate is that the SMA may sometimes be too simple. If there was only a way to filter the jumps so that we do not get the wrong picture and make the most out of moving averages. It exists and is called the Exponential Moving Average (EMA).

EMA is a type of moving average that is similar to Simple Moving Average, except that more weight is given to the latest data. The Exponential Moving Average is also known as "Exponentially Weighted Moving Average". This type of moving average reacts faster to recent price changes than a Simple Moving Average. In our example above, EMA would put more weight on the 3rd-5th day, which means that jump on the 2nd would have a lesser value and would not influence so much on the moving average. It would put more emphasis on what traders are doing right now. While trading, it is more important to see what merchants are doing right now, not what they were doing last week or last month.



EMA = (CLOSE(i)*P)+(EMA(i-1)*(100-P)) ; Where:
CLOSE(i) = the price of the current period closure
EMA(i-1) = Exponentially Moving Average of the previous period closure
P = the percentage of using the price value

Smoothed Moving Average (SMMA)

A Smoothed Moving Average is sort of a cross between a Simple Moving Average and an Exponential Moving Average, only with a longer period applied. The Smoothed Moving Average gives the recent prices an equal weighting to the historic ones. The calculation does not refer to a fixed period, but rather takes all available data series into account. This is achieved by subtracting yesterday’s Smoothed Moving Average from today’s price. Adding this result to yesterday’s Smoothed Moving Average, results in today’s moving average.

In a Simple Moving Average, the price data have an equal weight in the computation of the average. Also, in a Simple Moving Average, the oldest price data are removed from the moving average as a new price is added to the computation. The Smoothed Moving Average uses a longer period to determine the average, assigning a weight to the price data as the average is calculated. Thus, the oldest price data points in the Smoothed Moving Average are never removed, but they have only a minimal impact on the moving average, which is similar to how an Exponential Moving Average places more weight on the more recent data.

The first value of this smoothed moving average is calculated as the simple moving average (SMA):
SUM1 = SUM(CLOSE, N)
SMMA1 = SUM1/N

The second and succeeding moving averages are calculated according to this formula:
SMMA(i) = (SUM1-SMMA1+CLOSE(i))/N ; Where:
SUM1 = the total sum of closing prices for N periods
SMMA1 = the smoothed moving average of the first bar
SMMA(i) = the smoothed moving average of the current bar (except for the first one)
CLOSE(i) = the current closing price
N = the smoothing period



SMA versus EMA

If you want a moving average which will match the movement of prices quite quickly, then the EMA with a short period (eg. 3, 5, 8) is the best choice for you. This may help to ''hunt down'' the trend in the early stage, which will result in higher profits. Specifically, the earlier you have caught the trend, the more you can ''ride'' through it, and you can make more money. The pitfall is that while using this type of moving average you can get a false signal which you won’t recognize and lose your investment. Since the moving average quickly matches the price, you can even think that a new trend is forming, but in fact it is just an abrupt jump, which returns to the starting position (spike).

With SMA the situation is completely opposite. If you want the moving average to respond more precisely and slowly to the price changes, then the longer period SMA is the best choice for you. Although slow responding to the price changes will save you from many possible pitfalls, the smaller SMA may also result in too much delay and missing of a good trade.



Uses for Moving Averages

There are many uses for moving averages, but three basic uses stand out:
1. Trend identification/confirmation
2. Support and Resistance level identification/confirmation
3. Trading Systems

Which is better?

Which moving average you use will depend on your trading and investing style and preferences. The Simple Moving Average obviously has a lag, but the Exponential Moving Average may be prone to quicker breaks. Some traders prefer to use Exponential Moving Averages for shorter time periods to capture changes quicker, while others prefer Simple Moving Averages over long time periods to identify long-term trend changes. In addition, much will depend on the individual security in question. Moving average type and length of time will depend greatly on the individual security and how it has reacted in the past.

The initial thought for some is that greater sensitivity and quicker signals are bound to be beneficial. This is not always true and brings up a great dilemma for the technical analyst: the tradeoff between sensitivity and reliability. The more sensitive an indicator is, the more signals that will be given. These signals may prove timely, but with increased sensitivity comes an increase in false signals. The less sensitive an indicator is, the fewer signals that will be given. However, less sensitivity leads to fewer and more reliable signals. Sometimes these signals can be late as well.

For moving averages, the same dilemma applies. Shorter moving averages will be more sensitive and generate more signals. The EMA, which is generally more sensitive than the SMA, will also be likely to generate more signals. However, there will also be an increase in the number of false signals and whipsaws. Longer moving averages will move slower and generate fewer signals. These signals will likely prove more reliable, but they also may come late. Each investor or trader should experiment with different moving average lengths and types to examine the trade-off between sensitivity and signal reliability.

Trend-Following Indicator

Moving averages smooth out a data series and make it easier to identify the direction of the trend. Because past price data is used to form moving averages, they are considered lagging, or trend following, indicators. Moving averages will not predict a change in trend, but rather follow behind the current trend. Therefore, they are best suited for trend identification and trend following purposes, not for prediction.

When to Use

Because moving averages follow the trend, they work best when a currency is trending and are ineffective when a currency moves in a trading range. With this in mind, investors and traders should first identify currencies that display some trending characteristics before attempting to analyze with moving averages. This process does not have to be a scientific examination. Usually, a simple visual assessment of the price chart can determine if a security exhibits characteristics of trend.

In its simplest form, a currency’s price can be doing only one of three things: trending up, trending down or trading in a range. An uptrend is established when a currency forms a series of higher highs and higher lows. A downtrend is established when a currency forms a series of lower lows and lower highs. A trading range is established if a currency cannot establish an uptrend or downtrend. If a security is in a trading range, an uptrend is started when the upper boundary of the range is broken and a downtrend begins when the lower boundary is broken.

Once a currency has been deemed to have enough characteristics of trend, the next task will be to select the number of moving average periods and type of moving average. The number of periods used in a moving average will vary according to the currency's volatility, trendiness and personal preferences. The more volatility there is, the more smoothing that will be required and hence the longer the moving average. There is no one set length, but some of the more popular lengths include 21, 50, 89, 150 and 200 days as well as 10, 30 and 40 weeks. Short-term traders may look for evidence of 2-3 week trends with a 21-day moving average, while longer-term investors may look for evidence of 3-4 month trends with a 40-week moving average. Trial and error is usually the best means for finding the best length. If there are too many breaks, lengthen the moving average to decrease its sensitivity. If the moving average is slow to react, shorten the moving average to increase its sensitivity. In addition, you may want to try using both Simple and Exponential Moving Averages. Exponential Moving Averages are usually best for short-term situations that require a responsive moving average. Simple Moving Averages work well for longer-term situations that do not require a lot of sensitivity.

Conclusions

Moving averages can be effective tools to identify and confirm trend, identify support and resistance levels, and develop trading systems. However, traders and investors should learn to identify currencies that are suitable for analysis with moving averages and how this analysis should be applied. Usually, an assessment can be made with a visual examination of the price chart, but sometimes it will require a more detailed approach.

The advantages of using moving averages need to be weighed against the disadvantages. Moving averages are trend following, or lagging, indicators that will always be a step behind. This is not necessarily a bad thing though. After all, the trend is your friend and it is best to trade in the direction of the trend. Moving averages will help ensure that a trader is in line with the current trend. However, markets, currencies spend a great deal of time in trading ranges, which render moving averages ineffective. Once in a trend, moving averages will keep you in, but also give late signals. Don't expect to get out at the top and in at the bottom using moving averages. As with most tools of technical analysis, moving averages should not be used on their own, but in conjunction with other tools that complement them. Using moving averages to confirm other indicators and analysis can greatly enhance technical analysis.

The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as one of the most important concepts in Forex trading. These terms are used by traders to refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction. At first the explanation and idea behind identifying these levels seems easy, but as you'll find out, support and resistance can come in various forms and it is much more difficult to master than it first appears.



What is Support?

A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level. Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level.



What is Resistance?

A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level. Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level.



Testing the Levels

One thing you should remember is that levels of support and resistance are not always accurate figures. You will often see a support or resistance level that seems to be broken, but soon you will realize that the market was only testing it. On candlestick charts those tests are marked with shadows as you can see on the picture below. It seemed as if the market will pass the resistance level, but later it was obvious that it was just a test. There is no easy way of knowing if the resistance or support will be broken through.

Support Equals Resistance

Another principle of technical analysis stipulates that support can turn into resistance and vice versa. Once the price breaks below a support level, the broken support level can turn into resistance. The break of support signals that the forces of supply have overcome the forces of demand. Therefore, if the price returns to this level, there is likely to be an increase in supply, and hence resistance.

The other turn of the coin is resistance turning into support. As the price advances above resistance, it signals changes in supply and demand. The breakout above resistance proves that the forces of demand have overwhelmed the forces of supply. If the price returns to this level, there is likely to be an increase in demand and support will be found.

Trading Range

Trading ranges can play an important role in determining support and resistance as turning points or as continuation patterns. A trading range is a period of time when prices move within a relatively tight range. This signals that the forces of supply and demand are evenly balanced. When the price breaks out of the trading range, above or below, it signals that a winner has emerged. A break above is a victory for the bulls (demand) and a break below is a victory for the bears (supply).

Support and Resistance Zones

Because technical analysis is not an exact science, it is useful to create support and resistance zones. Each security has its own characteristics, and analysis should reflect the intricacies of the security. Sometimes, exact support and resistance levels are best, and, sometimes, zones work better. Generally, the tighter the range, the more exact the level. If the trading range spans less than 2 months and the price range is relatively tight, then more exact support and resistance levels are best suited. If a trading range spans many months and the price range is relatively large, then it is best to use support and resistance zones. These are only meant as general guidelines, and each trading range should be judged on its own merits.

Trend Lines

Trend lines are probably the most common form of technical analysis that is used today, but they are also one of the least-used. A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading securities.

A trend line is a bounding line for the price movement of a security. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.

If they are drawn accurately, trend lines can be a very useful and precise technical analysis method. Unfortunately, most of the Forex traders don’t draw them correctly or try to draw a line in a way that the lines correspond to the market, instead of making it the other way around.

The support or resistance of an identified level, whether discovered with a trend line or through any other method, is deemed to be stronger the more times that the price has historically been unable to move beyond it. Many technical traders will use their identified support and resistance levels to choose strategic entry or exit prices because these areas often represent the prices that are the most influential to an asset's direction. Most traders are confident at these levels in the underlying value of the asset so the volume generally increases more than usual, making it much more difficult for traders to continue driving the price higher or lower.



Round Numbers

Another common characteristic of support or resistance is that an asset's price may have a difficult time moving beyond a round price level. Most inexperienced traders tend to buy or sell assets when the price is at a whole number because they are more likely to feel that a stock is fairly valued at such levels. Most target prices or stop orders set by either retail investors or large investment banks are placed at round price levels. Because so many orders are placed at the same level, these round numbers tend to act as strong price barriers. If all the clients of an investment bank put in sell orders at a suggested target of , it would take an extreme number of purchases to absorb these sales and, therefore, a level of resistance would be created.

Conclusion

Determining future levels of support can drastically improve the returns of a short-term investing strategy because it gives traders an accurate picture of what price levels should prop up the price of a given security in the event of a correction. Conversely, foreseeing a level of resistance can be advantageous because this is a price level that could potentially harm a long position because it signifies an area where investors have a high willingness to sell the security. As mentioned above, there are several different methods to choose when looking to identify support or resistance, but regardless of the method, the interpretation remains the same - it prevents the price of an underlying from moving in a certain direction.

You may be asking yourself, "If I can already use bar charts to view prices, then why do I need another type of chart?"

The answer to this question may not seem obvious, but after going through the following candlestick chart explanations and examples, you will surely see value in the different perspective candlesticks bring to the table. In my opinion, they are much more visually appealing, and convey the price information in a quicker, easier manner. Candlestick chart is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity and currency price patterns.

The History of Japanese Candlesticks

Candlestick charts are on record as being the oldest type of charts used for price prediction. They are said to have been developed in the 18th century by legendary Japanese rice trader Homma Munehisa. In fact, during this era in Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis. The charts gave Homma and others an overview of open, high, low, and close market prices over a certain period. This style of charting is very popular due to the level of ease in reading and understanding the graphs. The Japanese rice traders also found that the resulting charts would provide a fairly reliable tool to predict future demand.

The candlesticks themselves and the formations they shape were give colorful names by the Japanese traders. Due in part to the military environment of the Japanese feudal system during this era, candlestick formations developed names such as "counter attack lines" and the "advancing three soldiers". Just as skill, strategy, and psychology are important in battle, so too are they important elements when in the midst of trading battle.

The method was picked up by Charles Dow around 1900 and remains in common use by today's traders of financial instruments.

What do Candlesticks Look Like?

Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow (wick). The wick illustrates the highest and lowest traded prices of a security during the time interval represented. The body illustrates the opening and closing trades. If the security closed higher than it opened, the body is white or unfilled, with the opening price at the bottom of the body and the closing price at the top. If the security closed lower than it opened, the body is black, with the opening price at the top and the closing price at the bottom. A candlestick need not have either a body or a wick.

To better highlight price movements, modern candlestick charts (especially those displayed digitally) often replace the black or white of the candlestick body with colors such as red (for a lower closing) and blue or green (for a higher closing).



Candlestick Patterns

White and Black Bodies



White candlestick shows strong buying pressure. The longer the white candlestick is, the further the close is above the open. This indicates that prices advanced significantly from open to close and buyers were aggressive. While long white candlesticks are generally bullish, much depends on their position within the broader technical picture. After extended declines, long white candlesticks can mark a potential turning point or support level. If buying gets too aggressive after a long advance, it can lead to excessive bullishness.

Black candlestick shows strong selling pressure. The longer the black candlestick is, the further the close is below the open. This indicates that prices declined significantly from the open and sellers were aggressive. After a long advance, a long black candlestick can foreshadow a turning point or mark a future resistance level. After a long decline a long black candlestick can indicate panic or capitulation.

Upper and Lower Shadows



The upper and lower shadows on candlesticks can provide valuable information about the trading session. Upper shadows represent the session high and lower shadows the session low. Candlesticks with short shadows indicate that most of the trading action was confined near the open and close. Candlestick with long shadows show that traded extended well past the open and close.

Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the session, and bid prices higher. However, sellers later forced prices down from their highs, and the weak close created a long upper shadow. Conversely, candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the session and drove prices lower. However, buyers later resurfaced to bid prices higher by the end of the session and the strong close created a long lower shadow.

Marubozu



Even more potent long candlesticks are the Marubozu, Black and White. Marubozu do not have upper or lower shadows and the high and low are represented by the open or close. A White Marubozu forms when the open equals the low and the close equals the high. This indicates that buyers controlled the price action from the first trade to the last trade. Black Marubozu form when the open equals the high and the close equals the low. This indicates that sellers controlled the price action from the first trade to the last trade.

Spinning Tops



Candlesticks with a long upper shadow, long lower shadow and small real body are called spinning tops. One long shadow represents a reversal of sorts; spinning tops represent indecision. The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session. Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand and the result was a standoff. After a long advance or long white candlestick, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.

Doji



Doji are important candlesticks that provide information on their own and as components of in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, Doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. The word "Doji" refers to both the singular and plural form.

Ideally, but not necessarily, the open and close should be equal. While a Doji with an equal open and close would be considered more robust, it is more important to capture the essence of the candlestick. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. Neither bulls nor bears were able to gain control and a turning point could be developing.



Different securities have different criteria for determining the robustness of a Doji. Determining the robustness of the Doji will depend on the price, recent volatility, and previous candlesticks. Relative to previous candlesticks, the Doji should have a very small body that appears as a thin line. Steven Nison notes that a Doji that forms among other candlesticks with small real bodies would not be considered important. However, a Doji that forms among candlesticks with long real bodies would be deemed significant.

The relevance of a Doji depends on the preceding trend or preceding candlesticks. After an advance, or long white candlestick, a Doji signals that the buying pressure is starting to weaken. After a decline, or long black candlestick, a Doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.



After an advance or long white candlestick, a Doji signals that buying pressure may be diminishing and the uptrend could be nearing an end. Whereas a security can decline simply from a lack of buyers, continued buying pressure is required to sustain an uptrend. Therefore, a Doji may be more significant after an uptrend or long white candlestick. Even after the Doji forms, further downside is required for bearish confirmation. This may come as a gap down, long black candlestick, or decline below the long white candlestick's open. After a long white candlestick and Doji, traders should be on the alert for a potential evening Doji star.



After a decline or long black candlestick, a Doji indicates that selling pressure may be diminishing and the downtrend could be nearing an end. Even though the bears are starting to lose control of the decline, further strength is required to confirm any reversal. Bullish confirmation could come from a gap up, long white candlestick or advance above the long black candlestick's open. After a long black candlestick and Doji, traders should be on the alert for a potential morning Doji star.



Long-legged Doji have long upper and lower shadows that are almost equal in length. These Doji reflect a great amount of indecision in the market. Long-legged Doji indicate that prices traded well above and below the session's opening level, but closed virtually even with the open. After a whole lot of yelling and screaming, the end result showed little change from the initial open.




Dragon fly Doji form when the open, high and close are equal and the low creates a long lower shadow. The resulting candlestick looks like a "T" with a long lower shadow and no upper shadow. Dragon fly Doji indicate that sellers dominated trading and drove prices lower during the session. By the end of the session, buyers resurfaced and pushed prices back to the opening level and the session high.

The reversal implications of a dragon fly Doji depend on previous price action and future confirmation. The long lower shadow provides evidence of buying pressure, but the low indicates that plenty of sellers still loom. After a long downtrend, long black candlestick, or at support, a dragon fly Doji could signal a potential bullish reversal or bottom. After a long uptrend, long white candlestick or at resistance, the long lower shadow could foreshadow a potential bearish reversal or top. Bearish or bullish confirmation is required for both situations.

Gravestone Doji form when the open, low and close are equal and the high creates a long upper shadow. The resulting candlestick looks like an upside down "T" with a long upper shadow and no lower shadow. Gravestone Doji indicate that buyers dominated trading and drove prices higher during the session. However, by the end of the session, sellers resurfaced and pushed prices back to the opening level and the session low.

As with the dragon fly Doji and other candlesticks, the reversal implications of gravestone Doji depend on previous price action and future confirmation. Even though the long upper shadow indicates a failed rally, the intraday high provides evidence of some buying pressure. After a long downtrend, long black candlestick, or at support, focus turns to the evidence of buying pressure and a potential bullish reversal. After a long uptrend, long white candlestick or at resistance, focus turns to the failed rally and a potential bearish reversal. Bearish or bullish confirmation is required for both situations.

Bulls versus Bears

A candlestick depicts the battle between Bulls (buyers) and Bears (sellers) over a given period of time.



1. Long white candlesticks indicate that the Bulls controlled the market (trading) for most of the time.
2. Long black candlesticks indicate that the Bears controlled the market (trading) for most of the time.
3. Small candlesticks indicate that neither Bulls nor Bears could move the market and prices finished about where they started.
4. A long lower shadow indicates that the Bears controlled the market for part of the time, but lost control by the end and the Bulls took over the control.
5. A long upper shadow indicates that the Bulls controlled the market for part of the time, but lost control by the end and the Bears took over the control.
6. A long upper and lower shadow indicates that the both the Bears and the Bulls had their moments of control, but neither could gain advantage over the other and steady the market.

What Candlesticks Don't Tell You

Candlesticks do not reflect the sequence of events between the open and close, only the relationship between the open and the close. The high and the low are obvious and indisputable, but candlesticks (and bar charts) cannot tell us which came first.



With a long white candlestick, the assumption is that prices advanced most of the session. However, based on the high/low sequence, the session could have been more volatile. The example above depicts two possible high/low sequences that would form the same candlestick. The first sequence shows two small moves and one large move: a small decline off the open to form the low, a sharp advance to form the high, and a small decline to form the close. The second sequence shows three rather sharp moves: a sharp advance off the open to form the high, a sharp decline to form the low, and a sharp advance to form the close. The first sequence portrays strong, sustained buying pressure, and would be considered more bullish. The second sequence reflects more volatility and some selling pressure. These are just two examples, and there are hundreds of potential combinations that could result in the same candlestick. Candlesticks still offer valuable information on the relative positions of the open, high, low and close. However, the trading activity that forms a particular candlestick can vary.

Candlestick Positioning

Star Position



A candlestick that gaps away from the previous candlestick is said to be in star position. The first candlestick usually has a large real body, but not always, and the second candlestick in star position has a small real body. Depending on the previous candlestick, the star position candlestick gaps up or down and appears isolated from previous price action. The two candlesticks can be any combination of white and black. Doji, hammers, shooting stars and spinning tops have small real bodies, and can form in the star position.

Harami Position



A candlestick that forms within the real body of the previous candlestick is in Harami position. Harami means pregnant in Japanese and the second candlestick is nestled inside the first. The first candlestick usually has a large real body and the second a smaller real body than the first. The shadows (high/low) of the second candlestick do not have to be contained within the first, though it's preferable if they are. Doji and spinning tops have small real bodies, and can form in the harami position as well.

Shadow Reversals

There are two pairs of single candlestick reversal patterns made up of a small real body, one long shadow and one short or non-existent shadow. Generally, the long shadow should be at least twice the length of the real body, which can be either black or white. The location of the long shadow and preceding price action determine the classification.

The first pair, Hammer and Hanging Man, consists of identical candlesticks with small bodies and long lower shadows. The second pair, Shooting Star and Inverted Hammer, also contains identical candlesticks, except, in this case, they have small bodies and long upper shadows. Only preceding price action and further confirmation determine the bullish or bearish nature of these candlesticks. The Hammer and Inverted Hammer form after a decline and are bullish reversal patterns, while the Shooting Star and Hanging Man form after an advance and are bearish reversal patterns.

Hammer and Hanging Man



The Hammer and Hanging Man look exactly alike, but have different implications based on the preceding price action. Both have small real bodies (black or white), long lower shadows and short or non-existent upper shadows. As with most single and double candlestick formations, the Hammer and Hanging Man require confirmation before action.



The Hammer is a bullish reversal pattern that forms after a decline. In addition to a potential trend reversal, hammers can mark bottoms or support levels. After a decline, hammers signal a bullish revival. The low of the long lower shadow implies that sellers drove prices lower during the session. However, the strong finish indicates that buyers regained their footing to end the session on a strong note. While this may seem enough to act on, hammers require further bullish confirmation. The low of the hammer shows that plenty of sellers remain. Further buying pressure, and preferably on expanding volume, is needed before acting. Such confirmation could come from a gap up or long white candlestick. Hammers are similar to selling climaxes, and heavy volume can serve to reinforce the validity of the reversal.

The Hanging Man is a bearish reversal pattern that can also mark a top or resistance level. Forming after an advance, a Hanging Man signals that selling pressure is starting to increase. The low of the long lower shadow confirms that sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of selling pressure raises the yellow flag. As with the Hammer, a Hanging Man requires bearish confirmation before action. Such confirmation can come as a gap down or long black candlestick on heavy volume.

Inverted Hammer and Shooting Star



The Inverted Hammer and Shooting Star look exactly alike, but have different implications based on previous price action. Both candlesticks have small real bodies (black or white), long upper shadows and small or nonexistent lower shadows. These candlesticks mark potential trend reversals, but require confirmation before action.



The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A Shooting Star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body. After a large advance (the upper shadow), the ability of the bears to force prices down raises the yellow flag. To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times the length of the body. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick on heavy volume.

The Inverted Hammer looks exactly like a Shooting Star, but forms after a decline or downtrend. Inverted Hammers represent a potential trend reversal or support levels. After a decline, the long upper shadow indicates buying pressure during the session. However, the bulls were not able to sustain this buying pressure and prices closed well off of their highs to create the long upper shadow. Because of this failure, bullish confirmation is required before action. An Inverted Hammer followed by a gap up or long white candlestick with heavy volume could act as bullish confirmation.

Conclusion

It is important to realize that this introduction is just that, an introduction to candlestick analysis. After having read this, you will have merely scratched the surface of the many patterns and variables that can go into candlestick analysis. No attempt was made to provide a thorough analysis of each and every pattern. In fact, many formations were left out as they cross the border into more complicated analysis.
As traders, we need as many trading tools in our arsenal, and a basic knowledge of candlesticks provides a trader much needed ammunition. Also remember that no matter what the trading tool, no matter how advanced or ancient, it is only effective when put into practice properly.

Analysis is very important in every human trade, although it is almost never easy to do and usually takes a lot of time. Analysis makes decision making a lot easier and the outcome is usually satisfactory. When trading on Forex, analysis is very important because you can’t rely only on the money management strategy to succeed. You can forecast the direction of the market basing on your technical and fundamental strategies to see their effectiveness.

You'll be able to make forecasts of price movements by applying the past data of the prices and graphs to the technical analysis methods. You can predict future prices with the level of accuracy dependent on your technical analysis skills using the graphs of the rates you observe. Trading with some brokers you can see technical indicators along with the graphs. You can apply it to your demo account and estimate your prediction skills necessary for planning trading decisions.

It is impossible to choose the most effective indicator among lots of various ones. Each trader has to decide for himself which indicator is best for him. You can't find any magic formula; you just see the graphs, make your forecasts and find out whether they come true seeing the values in the news later. There are a lot of technical analysis indicators available but here are the ones which are the most wide-spread: the Moving Average Convergence Divergence (MACD), the Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves.

Fundamental analysis is another tool that maximizes your profit and minimizes your losses on the trades. There are some traders who prefer only one kind but the majority prefers both. Fundamental analysis means trading following the news, e.g. telling about the economies or unemployment rate in the countries of the currencies you trade. They can also tell about the events that can have a strong influence on the currencies' exchange rate.

Fundamental Analysis

Fundamental analysis studies the core underlying elements that influence the economy of a particular entity, like a stock or currency. It attempts to predict price action and trends by analyzing economic indicators, government policy, societal and other factors within a business cycle framework.
In other words, if a particular country has a successful economy, its currency value will grow, if the economy is going through a rough time the currency value will fall.

Things that affect economy are called economic indicators. They are snippets of financial and economic data published regularly by governmental agencies and the private sector. These statistics help market observers monitor the economy's pulse - so it's no surprise that they're religiously followed by almost everyone in the financial markets. With so many people poised to react to the same information, economic indicators have tremendous potential to generate volume and to move prices. It might seem like you need an advanced economics degree to parse all this data accurately - but in fact traders need only keep a few simple guidelines in mind to making trading decisions based on this data.

Most important economic indicators are:

1. Gross Domestic Product (GDP)
2. Industrial Production
3. Purchasing Managers Index (PMI)
4. Producer Price Index (PPI)
5. Consumer Price Index (CPI)
6. Durable Goods
7. Employment Cost Index (ECI)
8. Retail Sales
9. Housing Starts

All of these things affect economy in some way and should be taken into consideration when making fundamental analysis if you want to maximize your profit and minimize your losses on trades.

Technical Analysis

Technical analysis attempts to forecast future price movements by examining past market data. Most traders use technical analysis to get a "big picture" on an investment's price history. Even fundamental traders will glance at a chart to see if they're buying at a fair price, selling at a cyclical top or entering a choppy, sideways market. History repeats itself. The techniques which were effective in the past can be still effective to forecast future price movements.

Technical analysis predominantly uses charts to forecast future price movements. Nowadays it is not necessary to draw charts on paper as the process is automated by specially designed computer programs.

There are three sources for the technical analysis: price, volume and open interest . Price discounts everything. Price is affected by economic, political and other factors, and all information is already reflected in it. Technical analysis utilizes the information captured by the price to interpret what the market is saying with the purpose of forming a view on the future. Price movements are not totally random, or prices trend. The main purpose of the charts is to define a trend at an early stage and to trade in accordance with its direction.

Technical indicator types:

1. Trend
2. Strength
3. Volatility
4. Cycle
5. Support
6. Resistance
7. Momentum

Using Technical Indicators

Price charts help traders identify trade-able market trends - while technical indicators help them judge a trend's strength and sustainability.
If an indicator suggests a reversal, confirm the shift before you act. That might mean waiting for another period to confirm the same indicator's signal, or checking out another indicator. Patience will help you read the signals accurately and respond accordingly.

Charts

There are a lot of different types of charts that you can use in Forex trading. The most popular ones are line chart, bar chart and candlestick chart, so I’ll try to explain to you what these are, how they are made and what they look like.

1. Line chart

Line chart or line graph is a type of graph created by connecting a series of data points together with a line. In Forex bar charts are plotted with time on the x-axis and the currency pair on the y-axis. Each time period on our real time charts can range from a tick by tick to a weekly interval (the tick refers to each individual pip movement). This gives traders the flexibility to view currencies with closer examination while also allowing them to spot the trends most suitable for their time-sensitive trading strategy. A line chart's strength comes from its simple design; it provides an uncluttered, easy to understand view of a currency's price. Line charts display the currency's closing price. A line chart is simply a graph of the value of a currency taken at regular time intervals based on current prices.



2. Bar chart

A bar chart or bar graph is a chart with rectangular bars with lengths proportional to the values that they represent. Bar charts are used for comparing two or more values. The bars can be horizontally or vertically oriented. Sometimes a stretched graphic is used instead of a solid bar. It is a visual display used to compare the amount or frequency of occurrence of different characteristics of data and it is used to compare groups of data. Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session / time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length / height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar.



3. Candlestick chart

A candlestick chart is a style of bar-chart used primarily to describe price movements of equity over time. It is a combination of a line chart and a bar chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity and currency price patterns. They appear superficially similar to error bars, but are unrelated. Candlestick Charts identical to a bar chart in the information conveyed, but presented in an entirely different visual context. The candlestick encapsulates the open, high, low and close of the trading period in a single candle. Candlestick charts are on record as being the oldest type of charts used for price prediction. They date back to the 1700's, when they were used for predicting rice prices. In fact, during this era in Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis. He is said to have executed over 100 consecutive winning trades. Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the Open, High, Low and Closing price for a given time period. A candlestick can either be solid or transparent. Its appearance depends on the relationship between the opening and the closing price. If the close is higher than the open, the candlestick is transparent or empty. Candlestick charts are much more "visually immediate" than bar charts. Once you get accustomed to the candle chart, it is much easier to see what has happened for a specific period - be it a day, a week an hour or one minute.





Which Analysis should I use?

This is a question that many people have asked themselves. There are people that think that only the fundaments move the market and that everything you find on a chart is just a mere coincidence. On the other hand there are people who think that only the technical part is important and that you can find all you need to trade and foresee future prices by looking at the charts. The truth is that this two fulfill each other and make a perfect couple. If you master both of this analysis success will come in its time.