Forex Trading

Price And Time Trading

One way of trading that is often overlooked by many traders, is trading price and time. This method of trading forecasts potential turning points in the markets. Two types of trading methods related to price and time are Fibonacci and the Gann Square of Nine.

Both these methods will allow you to find potential reversal points by both the price of the market and the date.

For Fibonacci, we take the previous high and low that stands out, as well as their respective dates. We then calculate the potential turning points by using Fibonacci ratios like .382, .50 and .618. Let’s suppose we are looking at a market that had a low of 300 and a high of 400. The low was made on January 1st and the high was made on June 30th. We take the difference in the prices and the dates and multiply them by the ratios mentioned.

For the price, we subtract 400 – 300 = 100. We then multiply 100 by the ratios and subtract them from the second number which is 400.

So 100 * .50 = 50. 400 – 50 = 350. The .50 ratio gives us a reversal point of 350. Do the same for the .382 and .618 ratios.

100 * .382 = 38.20. 400 – 38.20 = 361.80.
100 * .618 = 61.80. 400- 61.80 = 338.20.

We now have 3 potential turning points in the market:

Price1: 361.80
Price2: 350.00
Price3: 338.20

For the time, we have applied the same calculations of the difference of the 2 dates and we get 3 dates where we have a potential reversal:

Date1: 9/6/2006
Date2: 9/28/2006
Date3: 10/19/2006

We are watching to see if Price and Time “Meet”. When the potential price hits at one of the potential dates, this means that Price and Time have met.

Gann is not as easy to do by hand. You will need a program or the Gann square of nine in printed format to be able to see what the forecasted price reversals are. Also for Gann , only one price and date are entered. It is based on the squares in the pyramid and their mathematical alignment to each other.

Price And Time Trading / Dave Rivera

David Rivera is the developer of software which easily calculates potential reversals in markets based on price and time using Fibonacci and the Gann Square of Nine. You can learn about trading price and time by going to the following link: http://stock-commodity-trading.com

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Payday Loan – is it a Loan or a Gift?

The difference between a gift and a payday loan is that if you are given money, which legally does not have to be repaid, this is known as a gift. If a payday loan lender distributes the money to you with legal documentation, the money is considered a legal loan. Many cases have been taken in front of a judge to decide whether a financial transaction was a gift or loan.

Documentation and contracts are a very important part of any money deal even when obtaining private loans from relatives or friends. Most loans are administered by banks or other financial lending institutions. Specific criteria is adhered to, to establish if a borrower is eligible for a loan. Credit history is always highly considered for longer term loans as well as current income assets and liabilities. When applying for a payday loan, the purpose of the loan may also play a role in the decision making of the payday loan.

Another significant consideration is the income to debt ratio of the borrower. Are you able to pay back the loan with interest? Lenders essentially are in business to make money, so you need to be aware of how much a loan can cost you.

A payday loan is a financial business deal in which one party the lender i.e. financial institution, payday loan lender etc. agrees to give a borrower a certain amount of money with the prospect of total repayment. The specific terms and conditions of a loan are administered in the form of a contract.

The lender will ask for interest payments in addition to the original amount of the payday loan in return. The borrower must agree to the repayment terms and conditions, which will include the money owing to the lender, interest rate and the due date of repayment. Lenders will charge financial penalties for missed or overdue payments.

A payday loan has costs such as interest payments and finance charges this is why many borrowers avoid applying for a loan i.e. payday loan until it is absolutely necessary. Purchasing a new house or auto almost always necessitates some form of financial loan, whether it is a mortgage, auto loan or payday loan. Financing school also requires a federal support student loan.

Interest rates on these types of loans can be fixed at the time of the application or may vary according to the federal prime interest rate. Where as with a payday loan the interest rate can vary from payday loan lender to lender.

Payday Loan – is it a Loan or a Gift? / A Procos

If you require any more information regarding payday loans, online payday loans, cash advances or any other payday loan for that matter, please do not hesitate to visit my site http://www.paydayloanswebsite.com

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Understanding Rectangles on Forex

Here’s is where we start to have some fun. Regardless of how you want to trade the markets you need an approach. It might be spinning a bottle, asking your Aunt Jenny what she thinks or just gut feel. However you do it, even though you may not think so, you have an approach.

The majority of traders will eventually use some form of technical analysis (also known as chart traders, market technicians and chartists). For every book that there is on making money trading there is probably an opposite book explaining why it can’t be done. Before you dismiss the last statement out of hand. Lets explore the argument that no matter what you do you can’t beat the market.

Rectangles can occur in any time frame and any market you are following. As with many chart patterns the pattern is in the eye of the beholder. I have found that some traders are better than others at identifying chart patterns. It may take some time before you can spot the most common patterns.

The rectangle contains price movement between two points in a rectangular shape to which we add lines to signify the upper boundary and lower boundary. These lines should be horizontal. Slanted rectangle will most probably fall into the realm of “Flags”, which we will discus in another lesson.

The top line should connect at least two bars and the bottom line should connect at least two bars. As most markets are in congestion most of the time rectangles are fairly common.

It is not necessary to draw the top and lower lines at the extreme of the congestion points but rather make sure the lines contain at least 95% of the congestion area. The longer the rectangle continues the more important the breakout.

To help identify a valid breakout there should be an increase in volume on the day (or time period) of the breakout. The breakout can occur in either direction but if you are in a defined up trend then an upside breakout is favored and vise versa for a down trend. If I am in a defined trend then I tend to view this pattern as a continuation patter unless it starts to break the other way.

There are a number of ways to trade the rectangle. You can buy or sell the breakout as it happens or you can wait to see if there is a pullback to the neckline. Once you have defined the rectangle you can also buy and sell at the boundaries of the rectangle. I prefer to buy at the lower boundary if in an up trend and sell at the upper boundary if in a down trend. This can be a very effective trade as the risk is small. If you sell at the upper boundary then your stop loss can be close to the boundary and vise versa for the long trade at the lower boundary.

If you sell the breakout place your protective stop inside the rectangle and do the same for buying the upside breakout. You can also measure the distance between the upper and lower boundaries and project the distance forward to get an indication of the size of the next move. If the distance from the upper to the lower boundary were 20 ticks then I would expect the next move to be at least 20 ticks.

Understanding Rectangles on Forex / Martin Chandra

Martin Chandra is a full-time investor. Learn more at here.

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