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Monday, September 15, 2008, 11:58 PM
[ forex market]
..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/technical-analysis/trading-strategies.html"> RSI with Momentum It measures the amount of change in commodity’s price during a period of time. Using both RSI & Momentum for average 14 days will enable a solid strategy in determining signals.
Signal to buy: RSI rises above 50 but stays below 70, and momentum rises above zero. Signal to sell: RSI falls below 50 but stays above 30, and momentum falls below zero
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Monday, September 15, 2008, 11:12 PM
[ forex market]
..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/forex-professionals/index.php">
Sigma provide the folllowing services that help in trading:
- A reliable & powerfull trading platform that include more than 40 indicators.
- A detailed illustration for indicators.
- An updatable Indicator that show you signals to buy & sell.
- The latest economic news & An Economic Calendar to show you the dates of the events.
- Pivot Calculator for calculating pivot points to assign the forecasted support & resistance.
- Currency convertor that contains more than 164 currency.
Sigma devotes serious effort to serve the emerging retail segment of
the Forex community. Its commitment to providing an excellent customer
service, innovative currency trading technology, and dealing practices,
establishes Sigma as a notable force that traders look forward to for
an advanced Forex charting, Forex news, and fund safety.
Customers
funds deposited with Sigma, are held and maintained separately in
separated trading accounts at our partner banks. Sigma also provides
its customers a variety of account plans, and services to choose from
when creating or adjusting a profile.
Monday, September 15, 2008, 11:04 PM
[ forex market]
..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/new-to-forex/markets-comparison.html"> Forex Vs. Stocks:
Forex
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Stocks
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24 hour market
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Open only a few hours a day
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Most liquid market in the world
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Limited liquidy especially in the smaller capitilzation stocks
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High leverage 100:1 leverage on standard-sized accounts
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50% leverage at most 2:1 leverage to the average stock investor
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Slippage is usually very limited
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There is usually slippage on every order
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No commissions
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Commissions on every trade
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Can go long or short easily
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Harder to go short with uptick rule and possiblity of borrowed shares being called
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Can make as many trades you want
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Daytrading limitations on how many trades you can do in a period of time
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Limited risk, most forex brokers will automatically close your positions when your account balance goes to zero
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It is possible to have a negative balance after an adverse move in the market
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Minimum slippage and order errors
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More room for slippage and error
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Can short-sell anytime
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Need to obey uptick rule in order to short-sell
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Minimum slippage and order errors
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More room for slippage and error
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Relative strength Index
Relative Strength Index (RSI) is a popular momentum oscillator developed by J. Welles Wilder. The
RSI indicator ranges in value from 0 to 100, with numbers above 70
indicating overbought conditions and fewer than 30 indicating oversold
(Go long when RSI falls below the 30 level and rises back above it) or
on a bullish divergence where the first trough is below 30. If the
RSI rises above 30, it is considered bullish, while if the RSI falls
below 70, it is considered bearish (Go short when RSI rises above the
70 level and falls back below it or on a bearish divergence where the first peak is above 70).
Monday, September 15, 2008, 10:52 PM
[ forex market]
..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/new-to-forex/markets-comparison.html"> Forex Vs. Futures:
Futures is
Exchange traded contracts are not issued like securities, but they are
"created" when one party buys (goes long) a contract from another party
(who goes short). In the beginning there are no contracts, so the
number of long contracts must equal the number of short contracts. This
always goes through the exchange, which means that the exchange is the
counter party for all trades. However, the exchange does not take any
net positions. In this way clients do not know with whom they have
ultimately traded. Compare this with securities, in which an issuer
issues the security. After that, it is a legal entity that is traded
independently of the issuer. Even if the issuer buys back some
securities, they still exist. Only if they are legally canceled can
they disappear.
Forex
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Futures
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Largest and most liquid market in the world
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Liquidity dependent on month of traded contract
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24-hour trading action for 5.5 days a week
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Varying trading hours based on the markets
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Can profit in both bull and bear markets
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Tend to have extended bearish periods
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Can short-sell anytime
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Trading restricted by limit up/down rule
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Minimum slippage and order errors
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More room for slippage and error
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100:1 leverage on standard-sized accounts
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Smaller leverage
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Extremely low margins 1% or better
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Higher margins usually 5-8%
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No commissions
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Commissions on every trade
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Most liquid market in the world
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Limited liquidy
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Instant executions, all-electronic market
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Delayed fills possible in open markets
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No limits on market moves
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Some markets have maximum daily movement limits that can trap you in losing position
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Usually free streaming quotes
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Expensive fees for streaming quotes
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Relative Vigor Index It
was generated by John F. Ehlers. Relative Vigor Index (RVI) calculation
is based on the idea that in a rising market the closing price is
usually higher than the opening price, and on the bearish market the
closing is usually below the opening price. The basic signals of Relative Vigor Index (RVI) are: 1- Bullish divergence / bearish convergence - the main signal pointing to the weakness of the current trend. 2-
A good moment to open a sell / buy position is the crossing of the RVI
line by the signal line from above/below once the bullish divergence /
bearish convergence has appeared on the chart. 3- In a flat market an exit from the overbought / oversold area is a signal to sell / buy.
Monday, September 15, 2008, 10:42 PM
[ forex market]
..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/new-to-forex/markets-comparison.html"> Forex Vs. Options
Options are financial instruments that convey the right, but not the
obligation, to engage in a future transaction on some underlying
security. For example, buying a call option provides the right to buy a
specified quantity of a security at a set strike price at some time on
or before expiration, while buying a put option provides the right to
sell. Upon the option holder's choice to exercise the option, the party
who sold, or wrote, the option must fulfill the terms of the contract.
Types of options:
Exchange
traded options (also called "listed options") is a class of exchange
traded derivatives. Exchange traded options have standardized
contracts, and are settled through a clearing house with fulfillment
guaranteed by the credit of the exchange. Since the contracts are
standardized, accurate pricing models are often available. Exchange
traded options include:
- Stock Options.
- Commodity Options.
- Bond options and other interest rate options.
- Index (equity) Options.
- Options on futures contracts.
Over-the-counter,
or OTC options are traded between two private parties, and are not
listed on an exchange. The terms of an OTC option are unrestricted and
may be individually tailored to meet any business need. In general, at
least one of the counterparties to an OTC option is a well-capitalized
institution. Option types commonly traded over the counter include:
1) Interest rate options. 2) Currency cross rate options. 3) Options on swaps or swaptions.
Employee stock options are issued by a company to its employees as compensation.
Forex
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Options
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Largest and most liquid market in the world
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Liquidity depends on underlying asset & expiry date
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24-hour trading action for 5.5 days a week
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Not 24-hour. Varying trading hours based on the exchanges
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Easier to calculate stop beforehand
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Difficult and unreliable to place stops on underlying asset
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Minimum slippage and order errors
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More room for slippage due to lack of liquidity
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100:1 leverage on standard-sized accounts
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Leverage
depends on the type of option transaction you want to engage in.
Selling Naked Calls or Puts generally requires a huge amount of margin
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No commissions
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Commissions on every trade
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Most liquid market in the world
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Limited liquidy
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Limited risk, most forex brokers will automatically close your positions when your account balance goes to zero
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It is possible to have a negative balance if you write an option
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Instant executions, all-electronic market
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Delayed fills possible
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