Dependency

dependency  Forex brokers nowadays that allow and support hedging strategy and frees you from dependency on the market direction.

Both are nouns. Yet, “dependence” emphasizes the quality of being dependent.

So, it may also be abstract. Whereas, “dependency” focuses on the state of being dependent.

A dependant is someone who relies on someone else, possibly for financial support.

You’ll most often find this spelling in British English, where it’s favored (or favoured!) in using the word as a noun.

relying on someone or something else for aid, support, etc. conditioned or determined by something else;

Our trip is dependent on the weather.  dependency definition: a country that is supported and governed by another country.

Hedging

Hedging itself is the process of buying or selling financial instruments to offset or balance your current positions, and in doing so reduce the risk of your losses.

A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

In effect, hedging is a transfer of risk without buying insurance policies.

Lindung nilai

Hedging is an insurance-like investment that protects you from risks of any potential losses of your finances.

Hedging is similar to insurance as we take an insurance cover to protect ourselves from one or the other loss. For example, if we have an asset and we would like to protect it from floods.

A hedge is an investment that protects your finances from a risky situation.

Hedging is done to minimize or offset the chance that your assets will lose value.   It also limits your loss to a known amount if the asset does lose value.

It’s similar to home insurance. You pay a fixed amount each month.  To “hedge your bets” means to reduce or mitigate your risk.

A forex trader can make a hedge against a particular currency by using two different currency pairs.

For example, you could buy a long position in EUR/USD and a short position in USD/CHF. In this case, it wouldn’t be exact, but you would be hedging your USD exposure.  The best way to understand hedging is to think of it as insurance.

Hedging against investment risk means strategically using instruments in the market to offset the risk of any adverse price movements.   In other words, investors hedge one investment by making another.

A forex trader can create a “hedge” to fully protect an existing position from an undesirable move in the currency pair by holding both a short and a long position simultaneously on the same currency pair.

Instead, they are required to net out the two positions – by treating the contradictory trade as a “close” order.

Investors and money managers use hedging practices to reduce and control their exposure to risks.

In order to appropriately hedge in the investment world, one must use various instruments in a strategic fashion to offset the risk of adverse price movements in the market.

A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

In effect, hedging is a transfer of risk without buying insurance policies.

Lofty

Setting lofty goals would demoralize you as achieving the goals become impossible.

We must not be afraid of dreaming the seemingly impossible if we want the seemingly impossible to become a reality.

Dream lofty dreams, and as you dream, so shall you become. Your vision is the promise of what you shall one day be; your ideal is the prophecy of what you shall at last unveil.

The targeted to achieving something and to reach the succeed. If you have a vision, you will try to achieve it and have targeted to achieve it until you succeed.

If you have an envision and you must be targeted the success degree to achieve it. The same word is do you want to achieve it that’s you target the high level to success.

Achievable

Can to be success or can to be reach, can to access for success, able to be brought about or reached successfully. To bring to a successful end, carry through, accomplish, if it achievable – it can be done.

When setting goals for yourself it is critical that you honestly assess whether or not they are achievable, otherwise you are doomed to failure. If you achieve something, it must have been achievable.

If you say that something you are trying to do is achievable, you mean that it is possible for you to succeed in doing it.

Sentence example: This suggested that total group sales would reach $45 billion by 2023 and all the indications are that this target is still achievable.

Parabolic SAR indicator

Forex – Parabolic SAR indicator

The Parabolic SAR is an indicator that follows the trend and determines the reversal point in the price channel. SAR literally means “Stop And Reverse.”

Visually, it takes the form of a series of dots that are either above or below the price chart.

How to setting parabolic SAR indicator on the olymp trade android apps?

a) First, switch to the Japanese candlesticks chart.

b) You can set the period and the color of the indicator dots. For the period, we recommend leaving the standard value – 0.02.

c) If you increase it, the indicator will give more signals, but their accuracy will decrease. If you decrease it, the signals will be more accurate, but there will be fewer of them.

d) The longer the indicator’s period, the greater the expiration time must be.

e) The farther the Parabolic SAR dots from the chart, the more stable the trend. The closer the dots, the more likely the trend is to reverse.

f) The Parabolic SAR gives accurate signals only if the market trend is strong.

Trade on the direction of the trend?

1. You can use the Parabolic SAR to trade on the direction of price movement or when the trend reverses.

2. Observe the chart. If the dots do not change direction, this means that there is no trend reversal signal and you can open a trade on the trend.

3. The trend is ascending if the Parabolic SAR dots are beneath the chart and the parabola ( candlesticks chart ) is being built bottom up.

The trend is descending if the dots are above the chart and the parabola ( candlesticks chart ) is being built top down.

How to trade on a trend reversal?

If the first Parabolic SAR dot appears beneath a green candlestick, this is probably a signal of an upward price reversal as below image following.

If the first Parabolic SAR dot appears above a red candlestick, this is probably a signal of a downward price reversal as below.

Note that the appearance of a second confirming dot after the indicator has changed direction is a trend reversal signal.

The information above is puts from olymptrade.com

What is the Ichimoku Cloud?

The Ichimoku Cloud is an integrated trend indicator.

It allows to identify both the direction of a price and the strength of a trend.

The indicator consists of 5 lines similar in operation, but with different types of moving averages.

With this structure, it generates several types of signals at once to help find market entry points with high accuracy.

The first type of Ichimoku Cloud signals

The Ichimoku Cloud generates 3 types of signals. The first and basic is the intersection of the Tenkan Sen and Kijun Sen lines.

When the Tenkan Sen crosses the Kijun Sen upwards from below, it likely indicates a rise.
The shape that these lines form is called a “golden cross”.

If the Tenkan Sen crosses the Kijun Sen downwards from above, it likely indicates a fall.
The shape formed when the lines intersect this way is called a “dead cross”.

We recommend using standard periods and an offset.

As for style settings, the Tenkan Sen and Kijun Sen lines can be highlighted with brighter colors or their thickness can be increased.

In the majority of cases, a trade is opened when these lines intersect.

The more noticeable they are, the easier it is to read their signals.

The images and the points were put from olymptrade.com.

EMA signals

How do I read EMA signals?

We recommend leaving the standard settings. If you want, you can change the line thickness and color.

The basic principle of trading with the EMA is to trade on the direction of a trend.

The optimum time to open a trade is when the asset price reverses. This is indicated by a change in the direction of the EMA line and its intersection with the chart candlestick.

A reasonable sign of a price reversal downwards is when the indicator crosses the candlestick chart and the EMA line turns downwards.

When the EMA line reverses and heads upwards, crossing the candlestick chart, it likely signals a rise.

Momentum

Aroon or momentum is an oscillator. It helps determine the direction of the price and find trend reversal points.

Momentum takes the form of a line that moves and periodically crosses the 100 level.

What is SMA

The Simple Moving Average or SMA is often called the ordinary or simple moving average because it is calculated with the simplest formula in the class.

In this case, the average asset price for the selected period is used.

The SMA helps identify a trend and clearly shows when it will end.

How do I read SMA signals?

The SMA is used both in combination with other indicators and on its own.
If the SMA rise above its average, then the indicator’s ascending movement will continue.

When the chart crosses the indicator upwards from below, it likely signals a rise.

If the indicator falls below its average, this implies a descending trend.

When the chart crosses the SMA downwards from above, it likely signals a fall.

Secrets of SMA indicator

The simple moving average (SMA) is one of the most popular and simplest indicators.

The SMA averages price data and helps reveal trends. Visually, it is a line.

It reliably tracks the chart and, smoothing out random price fluctuations, it shows the direction in which the asset’s value is moving.

Trading on a trend reversal

The strategy is based on a combination of the MACD oscillator, the exponential moving average (EMA), and the Parabolic SAR.

Together, the signals that they generate help you efficiently analyze the current trend and see its reversal just in time.

Trading using RSI on the reversal of a trend

This is a counter trend strategy. It’s main principle, therefore, involves trading on a trend reversal.

As its name implies, the strategy is based on the RSI oscillator.

It generates 3 key signals – overbought, oversold, and divergence.

These are the ones that help find trend reversal points.

Candlestick patterns trading strategy

Japanese Standard is a trend strategy based on identifying candlestick models.

The signal to open a trade is the appearance of a candlestick in a different color that covers previous candlesticks.

How do I read candlestick signals?

Trading will require only the candlestick chart with a time frame of 5 or 15 minutes.

Switch to the Japanese Candlesticks chart. The price chart is now a series of alternating red and green candlesticks of different sizes.

Quotes take the form of columns at equal time intervals. If an asset price has risen over the selected period, the candlestick is colored green; if it has fallen, red.

If several candlesticks of the same color form one after another, you have a trend.

What candlestick models are saying?

What candlestick models are saying
By watching both how the candlesticks’ color changes and their size, you will get a signal to open trades.

In this strategy, you need to learn to identify two candlestick models.

The first is when 1 candlestick appears and its body covers the previous candlestick(s) of the opposite color.

For example, the body of a red candlestick covers the bodies of green ones. This indicates the possible start of a downtrend.

If a green candlestick is covering the length of red ones, upward price movement is most likely to follow.

The second model is when not 1, but 2 candlesticks are covering the body of a candlestick of the other color.

For example, when 2 small red candlesticks have covered 1 green one. This indicates that the downtrend will likely continue.

Or when 2 candlesticks cover the previous red one, this indicates the probable continuation of an uptrend.