rcanessa

I am Raúl Canessa, the founder of Forexdominion.com. As an experienced Forex trader, my passion for investing and algorithmic trading has shaped my professional journey. Over the years, I have dedicated myself to refining my skills in the financial markets, allowing me to share my knowledge and insights through my platform. I am committed to helping others understand the world of trading and develop effective strategies for success in this exciting field.

Chart Patterns Formations in Trading

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Financial markets, including Forex, involves plenty of chart formations, while not all of them are effective. There are many pricing patterns available and some of them give an excellent profit while a few of them doesn’t work good. First and the foremost, the chart patterns must focus on double top pattern and it is the common criteria used to grab the best accuracy. With a possibility to grasp 78% result, trading becomes simple and effective.

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Inverted Head and Shoulders Chart Pattern

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Inverted Head and Shoulders – An Overview

Inverted Head and Shoulders chart pattern is most commonly used in performing technical analysis for guessing the present downtrend in the Forex market. Basically, the head and shoulders inverted chart is distinguished while the security rate encounters the following attributes:
  • Rates falling down to trough and further rising up.
  • Rates dropping down than the earlier trough and further climbing up.
  • At last, the rates dropping down once again but not so bad like the 2nd trough.
When the final trough reaches, the rate heads up across the resistance at the top of the earlier troughs. Traders enroll for a long time position, while the rate rises beyond the resistance. The 1st and the 3rd trough are described as the shoulders, while the 2nd peak signifies the head.

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Head and Shoulders Chart Pattern

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Description of the Head and shoulders

Head and shoulders is one of the promising and reliable chart patterns that are most likely used for both expert Forex traders and beginner traders with little experience in the market. There are plenty of charting patterns found in the forex market, but the head and shoulder pattern reflects the synopsis of the human being. Hence it is described as head and shoulder charting pattern. Novice traders will find this charting pattern quite difficult, but practice will make a man perfect. With little proficiency, the traders could distinguish this pattern visibly.
Like every other similar pattern, the head and shoulder pattern is framed with 3 rallies where the rally in the middle remains the highest known as the head flanked with 2 small rallies known as the shoulders. This formations is the opposite of the head and shoulders inverted.

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Disparity Index Indicator

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The Disparity Index is a technical indicator that measures the relationship between the current price of an asset over its moving average. Its development is attributed to Steve Nison based on his book Beyond Candlestick.
The Disparity Index can take positive and negative values​​. A positive value indicates that the asset price is increasing rapidly, while negative values ​​indicate that the price is falling. A value of zero indicates that the current price of the asset moves in line with the moving average.
When the Disparity Index crosses the zero level that reflects a rapid change in price direction and thus it can be taking an early indicator of increased momentum (force) in the direction indicated.

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Binary Options on weather

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Currently financial markets allow to speculate virtually on anything, including the weather. The weather derivatives have become a lucrative and exciting relatively new market. Although most people make comments regularly on the state of climate and how it can affect their lives, almost no one stops to think about the possibility to speculate with the weather. This has changed with the introduction of derivatives as binary options on weather by the CME (Chicago Mercantile Exchange).
With the introduction of the range of Futures and Options on the CarvilHurricane index (CHITM), traders are now able to speculate about the state of the climate in order to obtain a financial return. Like traditional binary options, binary options on weather allow the trader to get a fixed payment if the option closes In The Money. And like traditional binary options, these derivatives offer both call options and put options.

ETX Capital – Forex and CFD Broker

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ETXCapital – Broker Review ETX Capital is a regulated broker from United Kingdom which specializes in providing services to trade with a wide variety of financial instruments, including Forex, Contracts for Difference (CFD), Binary Options and Financial Spread Betting. In this sense, this broker offers a lot of products from a wide variety of markets for its customers. ETX Capital … Read more

The Consumer Price Index (CPI)

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General Definition

The Consumer Price Index or CPI is a measure that estimates the average price of consumer goods and services. The CPI measures the price change for a set of market goods and services from a fixed term until the next within the same area, be it a city, region or country. This is a monthly figure, which always refers to the previous month in which the Bureau of Labor Statistics issued the report.

The Bureau of Labor Statistics of the U.S. measures two kinds of CPI statistics:

  • CPI for urban wage earners and administrative staff (CPI-W).
  • CPI for All Urban Consumers (C-CPI-U).

Of the two types of CPI, it is considered that the latter is the most representative of the general population, accounting for 87% of the population of the country.

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Forms to use Fibonacci in Forex

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The Fibonacci indicator is a very powerful tool in Forex trading. It provides important levels that can be used individually in conjunction with other indicators and methodologies such as Candlestick Patterns, Price Charts, RSI, MACD, Momentum etc, and that levels can be used to establish entry points, Stop loss levels and Take Profit levels.

The Fibonacci indicator can be plotted over any time frame including 5 min, 1hr, 4hr, daily etc.

The traditional way to plot and analyze the price with Fibonacci involves looking back at the historical prices to identify the most important highs and lows. Depending on the temporality that is used to trade the market this would involve seeing more historical data to locate those levels that will be the reference to the Fibonacci retracements and extensions. The convergence of different Fibonacci levels can occur if the levels are placed on graphs of different Time Frame, when doing this can exist a convergence and the level become more relevant.

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Trading system with 1-2-3 pattern and Bollinger Bands

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In this article we will explain a trading strategy that combines the use of Bollinger Bands and the 1-2-3 pattern, a very powerful chart pattern used by many traders in a variety of markets. It is a simple strategy as we shall see below, however, it requires mastery of a number of theoretical concepts that we will explain below.

The 1-2-3 maximum that originate in the upper bollinger band or moving average line (center line of the Bollinger Bands) and the 1-2-3 minimum which originate in the lower bollinger band or the moving average line, provide excellent signals that indicate possible changes of direction in the market. Because the 1-2-3 pattern occurs in virtually every market and any time frame, this strategy can be applied to trade in a variety of instruments and time frames, including short, medium and long term.

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