Elliot Waves free learning course – Lesson4 final

How do you expect the end of Elliott waves and its objectives How do you determine the end of the third wave, or how to trade based on the Elliott Wave? This question will answer it now.

Elliot Waves free learning course – Lesson3

Three basic principles for Elliott

There are principles that must be taken into consideration when you numbering Elliott to be correct because when you deal with empty chart and number it for the first time, you must take into consideration the three basic principles

Elliot Waves free learning course – Lesson2

Elliot ABC corrective waves

Which do Elliott waves consist of?

The fact that Elliott Wave is not as simple as you see it, but that each driving wave is composed of 5 motive waves and each corrective wave consists of three abc waves

My words complex

look at the picture

Elliot Waves free learning course – Lesson 1

In this small course we will teach you and give you full information about Elliot Waves and how we can apply them in our treading through a small course consists of five lessons … we hope to find good and useful information from our new course and promise that we will support you with new free courses about many things in the world of Forex.

The Carry trade – Free Training Course in Forex – Lesson 23

There is a system of trade wins more money and is considered a way spread among Western countries, and its advantage is profit and take advantages of changes in the spreads between the interest rates of different currencies, this method is called the Carry Trade.

Do you know what does mean Carry trade!!

Simply in order to understand its meaning you must have a background about the following:

·         How do currency pairs affect by the rise and fall of interest rates.

·         And also you have to know how interest moves.

·         What are the factors that lead to increase interest rates or reduced?

·         And also every trader watching Carry Trade to analyze economic data related to interest rates, such as inflation data and growth and central bank policies.

Let's take an example...

Let's assume that a trader went to the bank and borrowed $ 10,000 the amount of an interest rate of 1% of the total of $ 10,000 then he was trading of those funds to buy bonds worth $ 10,000, pays 5% per annum, so the profit is 4% per annum which is the difference between the interest rates.

Like this example we can use Carry Trade.

That means  opening deals in currencies and monitoring interest rates, control them in the coming periods and carry these open deals are too long.

Carry Trade strategy is one of the strategies in the very lucrative Forex and professionals depend on it from speculators and large investment funds and, we find that investment funds depend heavily annually, and it is common to use a leverage of 10:1 in most of Carry Trade processes.

Carry Trade risks:

Risks of Carry trade lie in the high frequency in the currency markets, so this strategy requires a large knowledge of market and its engines, and other risk on Carry trade traders are the processes of flowing contracts, they are flowing contracts in the timing of a close and exit of large amounts of the contracts in tight time and concomitant dramatic movements in the market and this process is called liquidation carry trade.

Another common type of Carry Trade types called daily carry trade, this type based on something that has been acquainted on it in strategy carry trade in the basket or the concept of basketball is dividing the basketball its proximity to several pairs and used by professionals to diversify pairs to overcome the fluctuation of the market and the protection of the investing portfolio.

As we often they use leverage from 1:10 to reduce the risk of volatility, and if we take the example of a basket of Carry Trade in which the pairs are divided to pairs of long-term and other short-and the other used as inverse Hedge , for example, if this basket contains on the pound against the Swiss franc and the used leverage  was 1 : 10 the result of this carrying trading for one year is around $ 600 from per decade and the Japanese yen and the New Zealand dollar and the Australian dollar frequently are used,  These pairs flowing Carry trade traders saliva, and combing the results of each pair, and the result is too often profits of more than 100.

Carry trades is frequently used by the Japanese for their dependence on the Japanese currency with a low yield, so how can take advantage of Carry trade traffic analysis to take advantage of it in daily trading:

(1) Reading the interest rates for each pair you trade it.

(2) Identification of the currencies that are expected upward trend with higher interest rates and buy that currency.

(3) Controlling the movement of pairs that are related to carry trade operations because the closure of these contracts makes a movement for this pair.

(4) It should monitoring Yen pairs well, and some say that the closure of these contracts quarterly, but no one can predict the date of closing Carry contracts.

Large funds retain their contracts annually so it can monitor yen pairs also with the end of the year (the end of the fiscal year in Japan marks the month of March so Carry trade traders often moves to repay their loans before the end of the year a few days) and it should take advantage of this atmosphere and the conditions created by the repayment of Carry trade loans.

Global markets and their relation to Forex- Free Training Course in Forex – Lesson 22

We think you're beginning to feel now with the importance of the profession and that Forex market does not move randomly but the changes in the country's economy is the main engine that needs you some diligence to study if you want to win, but make sure it is doing there will be no difficulty in trading in foreign currencies, and in this lesson we'll look at the financial markets and commodity markets to know what is the relationship between them and the Forex market.

Knowledge of some of the principles for financial markets is considered more important than ignorance because they benefit the trader who relies on the analysis of the news in his analysis of the foreign currency and cannot do without it, we simply we will provide you with quick information to discover future trends for the movement of currencies.

I. the relationship of Forex with stocks indexes (stock exchanges)

The stock market is the market is handled in which securities instruments, stocks and bonds issued by companies, banks or governments or other institutions, public bodies and be negotiable, and here you have to know the result of the average closing stock index stock Securities Stock indexes of the country Her currency want to trade in currency, in order to be able to determine the extent of the growth or deterioration in the economy of this state and you want to buy or sell their currency.

Study changes in the size of the stock indices of global exchanges and the stocks indexes; you must know the changes in stock indices for global stock markets for securities of any Stock indexes must know the result of the average index of the stock exchange of the currency country you want to trade in its currency.

For example, when an increase in the Dow Jones stock exchange USA's 0.3% per day happened, this means that 30 shares of the leading companies in the United States, which represents the index of the Dow Jones, its prices increased in for 0.3% that day this means earnings growth in the U.S. stock market.

One of the main indicators that their news affects the stock market on the Forex market:

Indicator name	Indicator details	currency
NIKKEI 225	Contains 225 shares representing approximately 70% of the capitalization of the Tokyo Stock Exchange.	JPY
HANGSENG	Hong Kong Stock Exchange Index	JPY
DAX	Contains 30 securities representing 70% of the capitalization of the Frankfurt Stock Exchange	EUR
FTSE100	And contains 100 securities representing 70% of the London Stock Exchange (the euro zone EURO area)	GBP
CAC40	Consists of 40 sheets of financial companies the most important in the Paris Stock Exchange.	EUR
NASDAQ	New York Stock Exchange Index	USD
DOWJONES	This index contains thirty securities representing 30% of the New York Stock Exchange.	USD
S&P500	Contains five hundred shares representing 80% of the market value of the shares traded on the New York Stock Exchange.	USD

II. The relationship Forex energy markets (crude oil market)

Trading on Crude Oil

Of what does crude oil consists of?

Oil is forms by remnants of animals and plants that lived millions of years ago in the sea (water) before the dinosaurs, over the years, and is still covered by layers of mud, and by heat and pressure transformed these layers to what we call today from crude oil, and the word "oil " is derived from the Latin meaning" oil is extracted from the rock "or" oil in the ground”

Where is oil extracted from?

Crude oil is monitored and traded as a commodity, which is a yellow color tends to blackness and the so-called "black gold" because it is the lifeblood of industrial, usually found in areas which are called underground tanks, scientists and engineers since to discover a new area by studying samples of rocks, they take measurements and study site begins digging, planting a structure which is called, the structure of 'Derek' 'is built to accommodate pipes and tools to lift the oil from the well-etched into the surface.

Largest producer of crude oil

     Canada

     Saudi Arabia

     Russia

     USA

     Iran

     China

More than a quarter of crude oil production in the United States and the largest in the United States production is the following:

     Texas

     Alaska

     California

     Louisiana

     Oklahoma

The amount of crude oil produced (locally) in the United States, has begun to shrink in the years after the other, however, the use of products made from crude oil is increasing, which makes it necessary to America to buy oil from other countries, where about 58% of the crude oil and petroleum products used in the United States comes from other countries.

OPEC

The Organization of Petroleum Exporting Countries

It Is an organization of Petroleum Exporting Countries members which are 11 countries and sold in barrels of oil and the higher the price per barrel, the less the price of the dollar.

Canada's largest producers of crude oil (CAD), And America's largest oil-importing countries (USD)

There are many countries that produce this black gold and store many of the large reserves of it in order to face the days of high oil prices, including Canada, which the West often call it as the black gold Mafia.

Canada is one of the largest oil producing country in addition to that it stores a lot of it, followed by Saudi Arabia in second place, which is one of the largest exporters of oil, and we see that the United States is the largest country in the world oil consumer for this we see that the U.S. economy, including the U.S. stock and the U.S. dollar affected by fluctuations in world oil prices and news of the EIA.

Please remember that this is an important point...

If oil prices rose

That was good for the Canadian dollar, the Bad and the U.S. dollar

If oil prices fell

That was the bad on the Canadian dollar, and good for the U.S. dollar

So what do we take advantage of that?

Yes we trade in USD / CAD to monitor oil prices …

As you can see on the chart that the movements of the U.S. dollar / Canadian dollar versus each other.

For example, if the price of oil rose the price of the U.S. dollar fell and the price of the Canadian dollar raises and vice versa.

Please Post this important tool to the toolbox when you analyze your trading dollar / Canadian, this performance is more important for the long-term strategy.

III. The relationship Forex market gold 

Trading XAU

Gold trading is "busy" and it is gold sold by ounce or kilo ounce and 24-gauge (denoted by OZ) is a unit of measurement of mass and is used to measure ounce weights precious metals such as gold and silver.

So how do we connect the gold trade Forex?

Excellent question... And so we answer, you should know that the gold in the world economy is seen as the protector of the country from the vagaries of inflation and is one of the most important commodities that are traded, and many traders believe that trading in the Australian dollar, such as trading in gold.

Australia's largest gold producer I and America's largest importing countries have USD

Because Australia is one of the world's largest gold producer and exports about 50% of it as a commodity as well as precious metals, and this item is considered one of the most important accounts of the GDP of Australia, so many traders watching rise and fall of this item because they affect the Australian dollar.

Please remember that this is an important point...

If gold prices rose

That was good for the Australian dollar, and the worst on the U.S. dollar

If the prices of gold

That was the worst on the Australian dollar, and good for the U.S. dollar

So we can take advantage of that?

Yes we trade in the AUD / USD to monitor gold prices

Let's take a look at the scheme of gold compared to the Australian dollar

This is scheme of the month and compares the movement of gold and currency pair AUD / USD

Often we see that the pair with the direction of gold, but the one before the other...!!

Red dots indicate the places change the direction of gold seems to be moving before the pair gold

The relationship between them is important now.

Traders are trying to watch gold prices do their analyses on the Australian dollar against the U.S. dollar, so we say to those who do not know how to analyze the pair in the currency market, it can be traded if you knew determine the direction of gold in the stock market in the future.

Very important note: The gold and the Swiss franc are safe haven for investors in the case of wars and political events and disasters, as in the Convention on the "Bretton Woods" which requires linking the exchange rate of the dollar in gold, so as to ensure the stability of exchange rates of major currencies globally, and despite the end of the agreement gold is still big role in front of the world's currencies, as has the Swiss franc over the history as an asset safe because of strict confidentiality of its banking system, and the political neutrality of all countries, and the independence of the central bank, and the huge reserves of gold.   

Economic indicators and economic calendar- Free Training Course in Forex – Lesson 21

The currency does not become weak or strong randomly , because the currency's strength depends on the economic strength of the country claiming the currency, and are judged on the strength of the economy through some economic indicators, which are monitored in the market by market analysts, and when it changes the results of these economic indicators across months year, the value of the currency will fluctuate, and this is a currency is considered  an agent representing the state in front of market analysts and traders.

Economic Indicators?

We also call it data, or statistics, or reports, or results, or Economic Indicators news.

It is a set of results and news that is released at specific times often (monthly, or quarterly, or annually), and these data reflect a picture of the financial situation, social or general shape of the country's economy her currency.

Come take an example...

If industry and financial companies in the country is moving towards progress and the exposure of these companies and sectors positive results on an ongoing basis, it is expected that the currency movement of this country going for the better and people will want to buy the currency.

For example, the U.S. dollar achieves profits strongly, because the U.S. economy is growing and strongly wins!!

When continue to rise in U.S. interest rates, the value of the dollar continues to rise against other currencies, because whenever the interest rate on the currency raised the demand for purchase increased.

Here our analysis of the basic currency for the U.S. dollar was based on the results of the reports of U.S. interest rates, which encouraged traders to buy the U.S. dollar against other foreign currencies.

Who issued this data?

Every country in the world has a set of such indicators and economic statistics, and the results of these statistics are alarming indeed and influential on the economic situation of the country of which the reports and the country related with it, these data are issued from various agencies of the government or the private sector in the form of expected statistics by both in accordance with a timetable and specific dates issued them.

Where do I find news economic indicators!

Such reports can be found in so-called “Economic Calendar.

Economic Calendar:

Schedule of Forex Economic Calendar

It is the guide tells us the dates of issuance of the results of economic data and displays the news every day or every week.

The table of economic news is the schedule provides for Forex trader all economic indicators news dates and presents the results of this news time of issue directly, and contains a description of all economic events and shows the importance of each event and its impact on the market of between (weak, medium, or high impact) and also displays the Show expected results numbers, in addition to the previous results of the currently actually directly from the real market currency traders who will steer toward the purchase or sale among major currencies.  

When the market moves?

The price of the currency is the balance between "supply and demand"

But when swinging the balance between its sides?

The balance swinging between the sides, when the results of the actual news of the economic indicators issued, provided that they come to is what was expected, swing happening here.

In other words, when the result is different from the actual result of the expected economic indicators.

Why does this swing happen?

The reason is the search for a new rate to achieve a balance between demand and supply again after the release of the results of economic news.

Why take advantage of that swing that occurred between supply and demand?

Oscillating prices fluctuate and making them tend to climb "so we buy currency"

Or moving to the "landing" we sell the currency, "according to the news release the actual publication.

·         If the demand is less than supply, it leads to lower prices.

·         If the application is the most powerful display it leads to higher prices.

The question now... How we behave with the issuance of the news when the actual result to it?

Or in other words, what is the reaction of the market on the basis of the issuance of the news!

If the actual result was better than forecast (disposition of purchase) if the economy was good currency.

If the actual result was worse than the expectation (dispose of sale) any currency devaluation.

If the actual result is equally divided with the expectation (not acted) and say that the market has accepted the expectation will not move.

·         If the actual result was worse than the previous, but the actual data look like the best (act be buying the currency) market will treat as a result of unexpected strong reaction in the case if the currency in the development of economic growth.

·         If the actual result was better than the previous, but actual data is considered bad (disposition be selling currency) any depreciation of the national currency, and the market reaction will be strong and will treat as an unexpected result if the currency in the development of economic decline.

Now, to tips on the basic principles for economic news agenda

Which will help you in trading when you read the economic news?

I... Focus on the most important economic news

It Is the first step and where the focus is on the most important economic indicators, high-impact, because the number of indicators, which announces its results a day countless it is impossible to follow them all, do not waste time reviewing the indicators are weak influence and care indicators, which took fame over the years and that investors start trading in the time of the actual results.

II... know the type of news awaited the announcement of the results

The second step is to understand the meaning of economic indicator and a quick overview about, for example, it may be news about inflation, or interest rates or non-agricultural employment or employment etc...

If the news about the announcement of the new interest rates may know that the higher the percentage of Forex interest rates for the currency, accept people to buy the currency.

III... See the results of the economic index for the previous months

Read the results of the news and reports for the months previous, and what was the impact on the market to be able to link the events, and after a period of following up may be 3 months at the most will be the data familiar to you and you'll learn about their relationship to the economy, and generally every economic indicator will be displayed next to the table Calendar Some reports Previous him then please read it.

IV... Pay attention to the moment the news is released

You must compare the actual results and the expected results, as we explained to you previously.

And remember that there are such well-known in the capital market, " he says: Buy and sell facts expectation”

We believe that the success of this ratio method is 50 % to 50%, then we recommend in the Forex market, but are advised to trade in a strategic manner " train traders " any ride the train with deals traders, according to the news in the sense that intervention after closing the candle news after the issuance of the news because it gives perfect opportunity safe rather than risk.

Added to this must be understood why the report was released the news this result!!

For example, if there was the news has been issued , up from the expected 0.4% , why this increase came despite the fact that he was the expected 0.3% Perhaps the reason was the result of increased assembly last month , which was 0.1 % , for example.

V... Watch the currency pairs, especially in the opposing direction

After you became having everything, you have to check the prices of non-dollar currencies (CROSS RATES) and must know that the value of the U.S. dollar against a particular currency may change sometimes due to changes in the value of the currency against another currency other than the dollar.

VI …the link between technical analysis and news analysis

There are many ways of trading the news and linked to technical analysis but that the best intervention after the close of the candle after the issuance of any news story because it gives the perfect opportunity safe rather than risk, and you know how this strategy train ride traders ".