Pivot Point ... Fibonacci Trading (Part II)

By Ahmad Hassam

There are a number of pivot points that you need to calculate. How is the pivot levels calculated? Beginning with the main Pivot Point that is calculated from the previous day's key price points, the resulting support and resistance are subsequently derived from the following calculations:

Resistance 1 R1 = 2PP- Previous Low. Resistance 2 R2 = PP + (R1-S1). Resistance 2 R3 = Previous High + 2(PP-Previous Low).

Main Pivot Point PP = (Previous Low + Previous High + Previous Close)/3.

S3 (Support 3) = Yesterday's Low-2(Yesterday's High -PP). S2= PP- (R1-S1). S1 (Support 1) = 2PP - Yesterday's High.

Now most of the trading software has the inbuilt function to calculate the pivot point for you. The main pivot point can be calculated for any time interval. The main pivot point is very important. After calculating these pivot points they are plotted on the currency price chart. Trader's can calculate the current day's pivot points using the above formulas based on the previous day's price data.

Many traders are afraid of pivot points. They consider them to be difficult to understand and master. Nothing is far from the truth. Breakouts or bounces may be traded with pivot points. Once these pivot levels are calculated and plotted, they are used in much the same way as Fibonacci Retracement. These pivot points are often also used as profit targets. Pivot points also indicate whether the market sentiment is bullish or bearish. Traders also use pivot points as reference levels to provide information as to whether the current price is relatively low or relatively high within its expected price range for the day.

You can further refine your pivot point levels by using the S1, R1 and other levels. S1, S2 and S3 as well as R1, R2 and R3 are used as references in pivot point trading. For example, traders may look for long trading opportunities with the view that the price will reasonably move towards equilibrium around the main PP level if the price is near the day's S2.

Many traders use different time frames in their trading decisions. You can also calculate the pivot levels for a week and for a month time frame too. Instead of calculating the pivot points for the current day you can also calculated the above levels for 4 hour charts as well as 8 hour charts.

When calculating the pivot points for the other time frames just replace the day's highs, lows and the closing prices with the appropriate time frame highs, lows and closing prices. Both Fibonacci and Pivot Points are excellent technical tools that often encompass entire trading discipline in themselves.

The main pivot point indicates the mood of the market. Any price level above the main pivot point indicates a bullish sentiment in the market and any price level below the amin pivot point indicates the bearish sentiment in the market. The pivot point can become the target low for the trading session in an extremely bullish market condition. This number represents the true value of a prior session. It is important to understand that especially in strong bull or bear market conditions, it can be used as an actual trading number in determining the high or the low of a given time period.

Pivot point trading has been successfully used by traders in making trading decisions. Traders will step in and buy the pullback until that pivot point is broken by prices trading below that level. A retracement back to the pivot will attract buyers if the market gaps higher above the pivot point in an uptrending market. The opposite is true for the pivot point will act as the target high for the session in an extremely bearish market condition.

What you need to understand is the market psychology at any particular point of time. If you can do that you can become a master trader. Understanding what the herd is doing can help you decide what to do and what not do in your trading. Technically speaking, in a bearish market, the highs should be lower and the lows should be lower than in the preceding time frame. Generally prices come back up to test the pivot point if a news-driven event causes the market to gap lower after traders take time interpreting the information and the news. Sellers will take action and start pressing the market lower again if the market fails to break that level and trade higher. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

Getting Your Advanced Cash Settlement

By Tiger Claire

There are instances when something goes awry and we're compelled to file a lawsuit in court against an insurance company or any other entity that have caused us grave distress and damage due to their refusal to cooperate, among other things.

While we are fighting for this claim in court however, our financial situation might not improve until such time that we've won our case. It is during these moments that we're at our most vulnerable state and this is the ripe opportunity for the companies to retaliate. What happens then is that they initiate an out-of-court settlement that is far less than our claim should we win the case.

This is where Advance Cash Settlement institutions come into play.

WHAT IS ADVANCED CASH SETTLEMENT?

In brief, an advanced cash settlement are the amount of money provided by specific financing companies to claimants waiting for the decision on their lawsuit claims. The amount we receive could then assist us go on with our lawsuit; and likewise continue on with our lives without fear of where to get the cash to pay for things like bills and other dues.

There are funding companies that give advance cash settlements that render the plaintiff free from any obligation should the case lose in court. But basically, there is an interest rate of up to five percent; compounded monthly, attached to the total amount of the obtained advanced cash settlement. The total amount is due only after the lawsuit has been won and money given to the plaintiff.

ADVANCE CASH SETTLEMENT COMPANIES

If you're searching for the right funding institution to help you get an advance cash settlement; there are several of these that you can locate on the internet. Online, you can learn more about getting an advance cash settlement, interest percentages plus other duties that might be needed from you once you agree to their Terms and Conditions.

It's wise to carefully study all your alternatives first prior to selecting one that you think would best serve your interests. Even as your need for cash may be immediate, agreeing to something you don't fully comprehend could put you in bigger financial troubles than the one you are in at the moment.

Nonetheless, once you have made your choice, you can readily apply for advanced cash settlement over the internet and processing is actually done faster online. - 23217

About the Author:

Want to read more on advance cash settlement, then visit Tiger Claire's homepage on how to choose the best advance cash settlement options for your needs.

Understanding Covered Calls

By Gina Taylor

Most people who are invested in the stock market do not know that they can generate cash flow from their positions. The idea was first introduced to me back in 1998 by a fellow trader. The strategy is called covered call writing. Covered call writing is considered so safe that even brokerage firms that manage IRA accounts allow you to write covered calls.

The strategy is very similar to selling an option on a piece of real estate. For example, I'll give you $10,000 now, if you allow me to buy your property 6 months from now at a set price. If I choose not to exercise my option, you keep the money and we go our separate ways.

Now I will go into more detail. Do not worry, just keep re-reading this until you get it. I buy 1,000 shares of FGH at $10 and the stock goes to $11 several weeks later. I can make money right now without selling my stock by selling the option to someone to buy the stock from me six months from now at $12.50. For that option, the buyer has agreed to give me $0.50 per share or $500 right now.

The cool thing is that I get the $500 immediately deposited into my brokerage account. The option position now shows up on my brokerage statement. I must not sell the stock prior to six months unless I buy back the option at the current market price. I usually hold my stocks until expiration because of how much the option price fluctuates from day to day.

Six months from now, two things can happen. First, the stock can go above $12.50 and the buyer of the option "calls" me out of the position which I happily do since I bought the stock at $10. The second thing that can happen is that the stock falls below $12.50 and the option holder is holding on to a worthless option. No option holder is going to "call" you out of the stock if it is $12.50 when he can buy the stock in the open market for $11.50 a share.

After the call expires, I then start all over again by writing another call again.

So let me back up. What exactly did I do here? First, I hedged my position by 5% or $500. Second, I set a strict target price that I was willing to let the shares go for, $12.50. Finally, I created immediate cash flow that I could use for my daughter's birthday or reinvest.

This strategy has made me very happy in bear markets because most options expire worthless and I get to keep my stock and what the option buyer originally paid me for the option!

There are a variety of software programs available that will let you spot the best stocks to buy, then write covered calls against. Of course you do not need any software. The software just saves you some research time.

Keep in mind that you should consult with a tax professional and a financial adviser before you begin risking your money on any options strategy. - 23217

About the Author:

When are you finally going to get tired enough of losing money in the stock market to do something about it? Check out the webs largest free resource of stock trading tips at how to invest in stock market, and learning the stock market

Mastering Foreign Exchange Software

By Brad Morgan

FX trading software comes in many categories and features. These programs are ingenious and cover the whole cataloge of trading needs from automated trading to designing a personalized approach of trading.

Indicated below are some of the many kinds of trading programs with their relevance:

FX trading platform essentially links your broker to yourself. Online trading is made doable by this kind of software. Your broker proffers it to you by virtue of online download for installation on your PC.

You will be able to initiate trading from your PC as soon as you create and fund your account. Trading from any area that has an internet connection is perhaps one of the best things about FX trading.

FX system development software is made use of by some traders who are inclined to constitute their own foreign exchange ideology of trading. By allowing the user to employ empirical data to verify their trading theories. Called back testing, this mode is extremely profitable to traders yearning to appraise how their ideas could have operated had they been employed in past scenarios.

Currency robots have an inherent Foreign Exchange trading system program. It is called a robot because it gets going with giving trade signals without any added input from humans.

One may even connect the Forex robot to a trading platform empowering it to trade automatically. Most would assent to this the zenith of trade automation in the Forex market.

It is crucial to remember that robots must not be allowed to trade automatically unless their trading convention has been assessed and scoped out using a demo account which does not use real money. It is only when its approximate accomplishment is established can it be allowed to trade with your hard earned money.

FX system software is commensurate to a FX robot since it also serves the trader with trading signals. When the software is used by itself, the trader can fix trades manually based on signals issued by the software.

Forex trading software cuts down the burden of a FX trader. But again, it must be iterated that the automated systems like the Forex system software as well as the Forex robots must be subject to close analysis and survey evaluation before procuring them. These are the forms of programs that can make or damage your career as a Forex trader. - 23217

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forex automoney | forex trading training

Classifieds Big Opportunity for Properties Buyers

By Billy Chen

Ads are the ads in newspapers or on the Internet. The concept of free classifieds ads, click on those that can be transported free of charge, without paying any money. If you have a Singapore have property that you want to rent or sell, then you can place free ads for those companies that offer people place their properties on-line.

By posting your Singapore Property online, you will be able to expose your property to a huge audience. As a result, it would be easier and faster for you to rent or sell off your property for people looking for Singapore Properties would be able to get in touch with you.

Do you have any property that you want to rent or sell off? You can check out the different Singapore Real Estate firms online who offer free classified ads to sellers or landlords.

The real estate business and industry in Singapore is growing at a very fast pace.The growth of business in Singapore has proved itself to be the main cause of the growth of sale and purchase opportunities in Singapore Real Estate.

Singapore has grown a lot in the past few years. The last two decades can be taken as the decades in which Singapore has achieved a steady growth rate in industry as well as in economic development.

Lots and lots of people are interested in doing business in Singapore and as a result there is a very high demand of Singapore Properties.With the passage of time, Singapore has emerged as one of the best investment options for the world.

You can find valuable information from these forums.Check out web forums where people discuss about Singapore Properties and free classified ads.You simply have to go to the right place to look for information.

If you candidates who are looking for Singapore properties, where you move with his family and then once again have a great place to search for the control of the free real estate classifieds Singapore Real Estate.

There are different types of real estate properties that are posted there and most of them would have photos of the Singapore Properties. You can browse from the properties there and if any Singapore Property catches your eyes then you can contact the real estate to checking out the property and obtaining any information that you feel is necessary. - 23217

About the Author:

Want to find out more about Singapore Property Realtor , then visit Choa Chu Kang site on how to find Choa Chu Kang for your needs.