Using Pivot Point in Forex Trading
Using Pivot Point in Forex trading enables us to see the sentiment of traders and investors is at any given moment. It also gives us a general idea of where the forex market is heading during the day. This information can help us decide which way to trade in the Forex market.
Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action.
As a definition, a pivot point is a turning point or condition. The same applies to the FOREX market - the pivot point is a level at which the sentiment of the market changes from "bull" to "bear" or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up. On the other hand, if the market breaks this level down, then the sentiment is bearish, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can't break the pivot point, a possible bounce from it is plausible.
Pivot points work best on highly liquid markets, like the spot Forex market, but they can also be used in other markets as well.
There are several ways to arrive at the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).
Pivot point (PP) = (High +Low +Close)/3
Take for instance the following EUR/USD currency:
Open: 1.2384
High: 1.2478
Low: 1.2362
Close: 1.2466
The PP would be: PP= (1.2478+1.2362+1.2466)/3 =1.2435
What does this number tell us?
It simply tells us that if the market is trading above 1.2435, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2435, the bears are winning the battle pulling prices lower. In both cases this condition is likely to sustain until the next session.
Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference.
Support1 (S1) = (PP*2)-H
Resistance1 (R1) = (PP*2)-L
Support2 (S2) = PP-(R1-S1)
Resistance 2 (R2) = PP + (R1 - S1), where H is the high of the previous period and L is the low of the previous period.
Continuing with the example above,
PP =1.2435 S1= (1.2435 * 2)-1.2478=1.2392
R1 = (1.2435 * 2)-1.2362 =1.2508
R2 =1.2435+ (1.2508-1.2392) =1.2551
S2=1.2435-(1.2508-1.2392) =1.2319
These levels are supposed to mark support and resistance levels for the current session. In the example above, the PP was calculated using information of the previous session (previous day). This way we can see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so, we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point on a weekly or monthly basis is mostly used by long-term traders, but it can also be used by short-term traders - it gives us a good idea about the longer-term trend.
Sebastian Sim
I'm a 31 year old Singaporean. Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and Unit Trusts(Mutual Funds) Investments. I've started a site The Trading Zone - a site about trading psychology, Forex trading, investments and other topics that interests me from time to time.
http://sebastian-sim.blogspot.com
Why Credit Scores Are Important to Consumers
A credit score is a vital part of your borrowing status. It measures the likelihood of a consumer being 90 days late or more on any loan payment over the next two years. There are three credit bureaus that give scores to consumers: TransUnion, Experian and Equifax. These three bureaus all report to the Fair Isaac Corporation (FICO), which also gives credit scores. FICO classic score is the more important one, because mortgage brokers and many other lenders prefer it as a standard. FICO scores range from 350 to 800 higher being more beneficial to the consumer.
How does this work?
The risk that a creditor takes in lending someone with a lower score is fixed to the interest rates as a financing fee creating higher overall interest rates, monthly payments and more money spent over the length of a loan. A high FICO score generates lower interest rates because the risk involved is low.
What does this mean?
Ideally, consumers want to strive toward that 800 so as to lower their interest rates and save thousands of dollars in financing fees and extra interest. A score that high, however, is rare. Only one in 1,300 people in the US have a score of 800 or above, a stark contrast with one in eight people with scores between 500 and 600. These consumers could face not qualifying for loans and incredibly high interest rates up to 8.5% to 10% or more.
How much can be saved?
Increasing FICO scores could save a person hundreds of thousands of dollars depending on the initial cost of the loan. For example if I wanted to buy a house for $350,000 with a FICO score of 640, I might be approved for an interest rate of 7.415% on a 30-year fixed rate loan. My monthly payments would then be $2,426.91. Now if I increased my score 60 points to 700, my monthly payment would drop to $2,171.2. I would save $92,056.91 in fees and interest over the life of the loan.
Credit scores are vital to consumers and maintaining good credit can save you lots of money. They affect each and every one of us, especially if we want to buy a house, a car, or any large purchase that would require a loan for most of us. If you feel your rates are too high, they probably are and you should considering looking at the health of your credit score. Credit bureaus make mistakes and it is possible that you could be paying for mistakes made on your record, quite literally!
To learn more about how you can help increase your credit score, go to Dr. Alan Rosenthal's website at http://www.financialsolutionservices.com where you can find more great information on credit improvement. And, you are cordially invited to sign up for a FREE Credit Repair and Enhancement Workshop by visiting http://www.financialsolutionservices.com/upcomingevents.html For additional information listen to one of Dr. Alan Rosenthals credit talks at http://www.financialsolutionservices.com/credittalks.html
Forex Market Timing - Why If You Try and Predict Your Guaranteed To Lose
To trade forex successfully you have to time your trading signal. There are many gurus vendors telling you can predict tops and bottoms in advance but this is the biggest myth of forex trading you cant - you can time your signal differently though and still make a lot of money.
If you try and predict market tops and bottoms you are simply hoping or guessing that support and resistance will hold and this will see the demise of your account equity.
The reason for this is markets do not move to scientific theory as many people think. This is common sense! If they did we would all know the answer in advance and there would be no market.
Markets don't move by Hocus Pocus or a magic formula, it's a bit more complex than that!
Humans decide the price of anything and the millions of traders who contribute the market price, are NOT logical and you cannot tell what they will do with any certainty at all.
Understand this in regard to forex market timing:
Forex trading is a game of odds NOT certainties.
If you understand the above, you can still make money - but your not going to predict your market timing, you are going to trade on the reality of price change and trade the truth - i.e the market price as it is.
If you want to win at forex trading you need to trade on confirmation.
If you don't know anything about using leading indicators or price or momentum oscillators, its time to start making them part of your forex education.
For example you see prices dip to support but you don't simply buy - you wait until prices turn away from support - supported by price momentum. Then you execute your trading signal.
We don't have time to discuss the individual indicators here, simply see our other articles for a fuller discussion of momentum.
Sure you miss the turn but you didn't know the price would turn would until AFTER it did so that's not a problem.
Many traders are obsessed with trying to be clever and trying to get in with pinpoint accuracy - but its impossible to do so don't try.
Your objective in forex trading is to make money and if you use market timing in line with price momentum, you can do this and trade with the odds for long term currency trading success.
If you got just 50% of every major trend you would be very rich.
So think about the money you can make rather than feeling smug.
Today, advances in science and computer technology are staggering and your personal PC contains more power than the computer Mission Control used for the moon landings and it's tempting to think that computers can predict in currency markets - but they can't.
Predicting a chaotic market with accuracy is impossible and anyone who tells you they can is a liar or a fool.
Of course, as we have said this doesn't mean you can't make money you can you simply trade price momentum and trade the odds. Understand the above and you are well on your way to currency trading success.
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What To Take Into Consideration When Starting A Franchise
Franchising offers you a middle ground between starting your very own business and working full-time for somebody else. Though there are a lot of advantages to franchising, it does take a lot of commitment, capital and time.
Before buying into any franchise it is important to do your research well. Dont just buy into a franchise because it is top-rated. The first thing you need to determine if the franchise fits into your business style. Running a business that you are not interested in or are unable to give any creative input to, can cause a lot of problems down the line. It is equally important to conduct a thorough analysis of the market before choosing your franchise or your location.
After youve short-listed the franchise opportunities that you may be interested in, get the companys Uniform Franchise Offering Circular (UFOC). This is a detailed document that discloses critical components of the franchise and their offer to potential franchisees.
Conducting on-site visits and talking to current as well as former franchisees will reveal a lot of information that you would never be able to obtain from any legal document or agreement. Most franchisors have select franchisee outlets that are on their tour list for potential franchisees. After youre done visiting these, go on alone to other franchisee outlets that are not on the list and gain a real insight into what it would be like to work for this particular franchise. Visit outlets that are successful as well as those that are not doing so well. Establishing the reasons for failure can give you valuable fore-knowledge into the issues you need to avoid if you are to succeed.
Even if you are considering buying into a well-established franchise, it will take time before you start making any profits. Take into consideration family budgeting and various pre-opening costs as well as operating costs and reserve sufficient funds to tide you over during the time it takes for your business to take off.
Get the Franchise Information you need at http://www.franchisegecko.com/
Mortgages That Attract Homebuyers
Do great rates and great service fail to impress you? Well you are not alone. We are in a time where you need to find out who can create value with their services and ideas. And what I mean by value is, attracting customers.
Here are a few loans of value over the last few years: - 100% purchase, non-owner, stated income, interest only
- 1% pay option ARM
- 100% cash out refinance
- 100% Jumbo Loans
There is great debate on whether these are good loans, but few can argue these loan did attract customers for Realtors, Builders, and Mortgage Companies.
What are the next generation of loans to attract customers? The loans of 2008! - 3-2-1 buy-down
- PITI Abatement
- FHA/VA
- My Community
- Credit Repair
One might say that 2008 is the year of government backed mortgages. All the loans high lighted above are directly tied to the government through Fannie Mae, Freddie Mac or FHA/VA. Unfortunately the line is drawn right at $417,000. I hope they raise this number soon!
To give you an idea of what these 2008 loans are I would like to give some details on PITI Abatement.
What is PITI Abatement?
An incentive to the buyer to have the first 6 months of the mortgage paid by the seller. PITI Abatement program is a product designed specifically for home-buyers. You can give a 6% Seller Contribution that can be used for Principle, Interest , Taxes and Insurance payments.
What are the General Guidelines?- Loan amounts up to $417,000
- Up to 100% of the purchase price
- Minimum score of 575
- Fixed Rates and ARMs
- Interest Only is available
- Income limitations may apply
- Closing costs can be paid by seller too
- No prepay penalty
- What is the Realtor marketing element?
6 MONTHS PAID!
BUY THIS HOME AND I WILL PAY YOUR FIRST 6 PAYMENTS
6 MONTH PAID MORTGAGE INCENTIVE
BUY MY HOME AND I PAY CLOSING COST AND 6 PAYMENTS
Hopefully you can see how this type of loan can help you move more homes.
Troy Schuricht & Phillip Lechter
Home Mortgage and Construction Specialists
Community First Financial, LLC
http://www.communityfirstfinancial.com
yourlendertroy.blogspot.com
tschuricht@communityfirstfinancial.com
480 305-8905
Beginner Currency Forex Trading - The Foreign Exchange Basics That You Need To Know
What is foreign exchange?
Foreign exchange refers to money denominated in the currency of another nation of group of nations. Any person who exchanges money denominated in his own nations currency acquires foreign exchange. The size of the transaction is irrelevant. A person changing a few pounds at Heathrow International airport or cashing a travelers cheque at a shop in Venice is involved in a foreign exchange transaction just the same as a company who is changing millions of dollars in order to make an investment I another country.
Role of the Exchange Rate
The exchange rate is a price it is the number of units of one currency that can be bought by a number of units of another currency, and vice versa. In the spot market, there is an exchange rate for every currency traded in that market.
A currencys market price is determined by supply and demand, by buyers and seller, that is, the market participants, whether individual or institutional. A currency with an exchange rate that is fixed requires the support and intervention of its central bank to keep the currency at the fixed rate.
By contrast, a floating currency can fluctuate in value, determined by the market participants buying or selling the currency
Intervention
In many cases a central bank may want to alter exchange rates but without making government economic policy changes. In these cases the desired effect can be reached by changing the markets perceptions about the value of the exchange rate or other economic variables.
In some case a central bank uses covert intervention by either buying its own currency with foreign exchange reserves or in some instances buying foreign exchange reserves in order to weaken its own currency. In the long-term a central bank cannot fight market forces indefinitely. Even central banks do not have unlimited reserves. Therefore, the timing of intervention, in order to achieve the maximum psychological impact, is very important.
Simon Aridej is the owner NewForexLive.com a site which provides a good information about Forex Trading tips, retail Forex Trading secrets, free forex trading ebook and much more. Click Here! to find out more.
Possibly Useless but Probably Fun
There are some mighty strange computer-related gadgets out there. You take a look at some of this stuff, and you think, OK, it'd be useless, really, but wouldn't it be fun to play with?
I Want One of Those!
The USB Running Hamster, as the name suggests, is a hamster (not a real one, the sales page hastens to assure us) in one of those little toy wheels that hamster owners buy for their pets. You install the software, tuck in a battery or two, plug the gizmo into the USB port, and the hamster runs around the circle as you type. The faster you type, the faster it runs.
The sales page calls it an utter delight, and says it will send the office into shrieks of laughter. "It's the ultimate parody of modern society," they comment. This product is for sale at I Want One of Those . Don't you just love that name? Oh, and the hamster costs 24.95 pound sterling, which works out to approximately $50.
Also according to the sales page, people who purchased the Running Hamster also purchased a few other fascinating little gizmos. The USB Missile Launcher "is the ultimate deterrent against those annoying people who lurk around your desk because they've nothing better to do."
The Launcher holds three foam missiles and has a desktop missile launcher. So, if I understand the instructions correctly, as your annoying co-worker approaches your desk with yet another collection for somebody's birthday cake, you use your mouse to zero in on your target. Next, you hit the Fire Button to launch the three missiles one after the other, all accompanied by rocket-launching sound effects. The sales page says, "Despite being deeply childish, [it] is immensely satisfying." Come to think of it, maybe this one is useful after all.
Other "I Want One of Those" shoppers also purchased a couple of Red Alert Buttons. These battery-operated buttons sit on your desktop, where you can press them manually as required. The Panic Button sounds a siren and delivers a few succinct sentences about "Panic sequence activated." The second button is labeled with a word that some publishers won't print. The corresponding sound track expounds on the theme. If you're curious, there's a sound file on site so you can hear both of these Red Alert Buttons in action.
Don't leave the site (http://www.iwantoneofthose.com/) until you check out the USB Chameleons. You attach your chameleon to your monitor or elsewhere, plug it into the USB port, and then apparently the little darling rolls his eyeballs in opposite directions and sticks his tongue out to catch passing flies. Yep. That's all he does. The sales page says he is endlessly diverting, although one proud owner commented that her Chameleon was quite noisy and distracted the people nearby.
If an eye-rolling chameleon isn't your thing, perhaps the USB Humping Dog will interest you. It does exactly what the name suggests. The sales page reads, and I love this, "The world would be a very dull place if it wasn't for there being inventors out there with enough time on their hands to come up with something so stratospherically stupid as this, the USB Humping Dog."
ThinkGeek (http://www.thinkgeek.com/)
Next, let's surf over to ThinkGeek . Here we learn that we need not limit ourselves to such mundane gadgets as eye-rolling chameleons and firing missiles. How about a USB-powered fondue that melts cheese and chocolate? The Fundue claims to be the world's first desktop USB fondue set, and I have no difficulty believing that claim.
The sales page reads, "Sure, you'll be sucking precious energy from your computer's power supply that your motherboard might need, but who cares when you are also sucking on a piece of crusty French bread drenched in a nutty Gruyere?" Currently, you can use your Fundue only for cheese and chocolate, but when the new USB 3.0 specs hit the market, you'll be able to move up to oil dipping and desktop frying. It's a steal at only $29.95, and comes with a recipe for dipping pizza crusts left over from last week's luncheon meeting. If the office moocher shows up wanting freebies, just zap him with your Missile Launcher, and this feast is yours alone to enjoy.
In case you get a headache from all that chocolate dipping and missile launching, you'll need the Shaking Octopus from AudioCubes . (http://www.audiocubes.com/) It looks like an octopus. It plugs into a USB port. You push the button, and then place the octopus' legs onto your head, neck or waist. It shakes and quivers, and this cures what ails you. A bargain at $39.95!
Perpetual Kid (http://www.perpetualkid.com/)
Speaking of using a USB port to generate heat, I bet you've never considered a pair of USB-powered heated slippers to keep your feet cozy on those days when there's a decided chill in the office air.
Perpetual Kid has just such slippers for $29.99. The site also sells USB-heated gloves for $22.99. The gloves connect individually to USB ports, and a flap folds back to free your fingers for keyboarding or mousing.
This next little item isn't electronic, but it strikes me as funny enough to rate a mention. Also at Perpetual Kid, we find The Cubes IT Set (goatee included). The site reads, "Each IT Set includes all the necessary plastic parts to build a cubicle fit for a computer geek (god): three walls, desk, captain's chair, CPU, flat-panel monitor, keyboard, server, laptop, and a 2-inch tall posable sys admin. Also includes a sticker sheet of cube decor. If you don't buy one for your IT guy, he will let your boss know you are shopping on Perpetual Kid instead of working on your TPS report!" As I see it, $12.99 is a small price to pay for keeping on the good side of one of these people!
Now then, surfing along to the HimeyaShop , (http://www.himeyashop.com/) who can pass up a USB-powered duck that vacuums the crumbs out of your keyboard? If it works, this one would actually be useful. For quite some time, my keyboard has periodically refused to register the "n" unless I turn it upside down and smack it. Where is that duck when you really need him? The duck costs 2,079 Yen, which works out to about $18.
More Fun
Moving along to another site, Gracie's Gear and Training, we find the Cami Bra. This garment, available in various colors, is a sports bra with built-in Power Pouch for holding your iPod or MP3 player. The page adds that it comes with, "loophole fabric for MP3 player cord feed." The Cami sells regularly for about $30. Maybe it's just me, but I don't plan on sharing my underwear with any electronic device.
If you spend some time checking out other gadgets on the sites mentioned, you'll find various other weird and wonderful tech toys to capture your imagination, or at least your sense of the absurd. Come on, admit it: You want some of them!
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