Forex
 
 
Home
About us
Forex Resource
What is forex  
How does forex works
FAQ
New to forex trading
Technical Analysis
Fundamental Analysis
Major Indicator
Forex vs Stocks Market
Forex Glossary
Contact us
Sitemap
Currency Converter
Others**
Domainji.com  
Snaidu.com
Snaidu.us
Ommail.com
**
 

Informative Articles**

Introduction to Bollinger Bands; A Great Help In FOREX Trading.

Forex trading has become one of the most looked after occupation for many persons around the world. This is due to its great advantages over other capital markets and its high potential profitability; among these advantages we can find its extremely easy accessibility thanks to the internet and its high liquidity and high leverage.

But in Forex as in all other speculative activities in the capital markets there is a major problem new and experienced traders will face every time they open their forex trading stations. This is how to predict the behavior of the Forex market over time in order to make the highest amount of profits and with the less risk possible.

One of the techniques used to predict the Forex market behavior is that based on Bollinger Bands.

These Bollinger Bands are what is called a technical trading tool used in the capital markets (including Forex) created by John Bollinger in the early 1980s. These technique was formulated based on the need for adaptive trading bands and the discovery that the volatility of the markets was a dynamic phenomena, not a static one as was widely believed at the time.

The first thing you should notice about Bollinger

Bands is that they consist of a set of three curves drawn in a forex chart in relation to the currency prices. The middle band in the forex chart represents the intermediate-term trend, and it is usually a simple moving average, that serves as the reference base for the upper and lower bands. The interval separating the upper and lower bands from the middle band is calculated by using the volatility of the market; typically the standard deviation of the same data that were used for the average.

The default parameters used with these analysis technique is 20 periods for the average and two standard deviations for the gap between the bands. These parameters may be adjusted to suit your particular trading purposes.

In a future article I will talk about how these bands will give you a very good prediction on what the market will do next, based on the parameters and statistics built in the Bollinger Bands.

About the author:

Adrian Pablo is a Forex freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of trading , visit:

http://www.1-forex.com
 
Goodbye Multi-Level Marketing and Hello E-currency Exhcange
If you are reading this article you are one of many people who have spent many hours trying to find a work at home business that really does work. Searching for unique ways to make money on the internet. Very few people go on to succeed working...

"How To" Start Trading The Forex Market? ( Part 2)
Why is FOREX trading so popular? Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse ( most of them have wireless Internet connection). If you have or like to travel, take your...

Mazu E-currency Exchange Program
If you are like many of the thousands of people trying to make money online today, then you are probably trying to find a program that works. I have tried Quixstar, Market America and Amway, all of which require you to build a down line and sell a...

The Opportunity in Exporting
One of the least appreciated opportunities for entrepreneurs is in the international markeplace. Here you can learn why. Did you know exports are increasing three and four times faster than the Gross Domestic Product? It's true. Look at it...

To be or not to be a psychological currency trader?
Currency trading, just like other trading fields, involves the risk of loss. This risk increases because of the trader's psychological weaknesses. Human features make the difference between the successful and always loosing investor. Here's...

 
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.

**
The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM.  Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.