CRYPTOCURRENCIES ARE THE NEW GOLD

Cryptocurrencies are The new gold

Nowadays, cryptocurrencies have become for many people a popular and popular investment option. The main purpose of this new technology is to allow the public to buy, operate and invest without the need to go through a bank or other financial institution. Cryptocurrency is very volatile and can be profitable in the portfolio of any operator.

The cryptocurrencies are not physical currencies, they are electronic, a digital asset that remains as data. The technology behind electronic currencies controls a large part of its value, which it maintains with the new technology in a safe way when it comes to identifying and transferring capital.

The first digital currency that was introduced was the Bitcoin and still today remains the standard with which the rest of the currencies are compared. Following in his footsteps, Litecoin arrived, and to date, both are the best valued currencies in the market. There are other currencies that also reach high-level market values ​​such as Bitcoin and Bitcoin Cash, Dash, Ripple, Ethereum and Ethereum Classic, Monero and NEO.

Only during this last year, there has been an absolute explosion in the offers and operations of cryptocurrency. Discover below the rest of the high category crypto currencies like NEO, Monero, Ethereum Classic, Dash, IOTA and Zcash.

Cryptocurrency fever has left many dead along the way.

Today I will analyze an operation that perfectly reflects the type of errors that are committed when the basic principles of technical analysis are not taken into account in an operation (however cryptocurrency it may be).

Note: This operation has been publicly presented last week and the participation, again, has been very high and of great quality. I think we have found the right format for Your Trading: first you comment and then I analyze it.

Bitcoin BTC and Bitcoin Cash BTCH

This mega-powerful currency has not only opened the door to other currencies, but runs the world of cryptocurrency with pride. It is controlled to ensure that there is no Bitcoin surplus, since a maximum issue amount of 21 million units has been agreed upon. When it was presented, the price of a USD $ 1 was 1,309 BTC. However, things have changed, and when Bitcoin burst the barrier of USD $ 2,000 in 2017, meaning that a BTC was worth USD $ 2,000, it was certainly a significant milestone for Satoshi Nakamoto, the creator of Bitcoin.

ethereum trading

Ethereum ETH

Ethereum is much more than just a currency – it’s like a giant computer that hosts many computers around the world. Ethereum can respond to really sophisticated requests. Its ability to store revolutionary software provides Ethereum with an advantage over bitcoin and has attracted the attention of many banks around the world. This, together with other factors, has led to a jump in this cryptocurrency by almost 1000% this year!

Other popular crypto currencies that are sweeping the world:

RIPPLE TRADING

RIPPLE XRP

Ripple can be described as the next generation payment network. Originally established to attract the leaders of the financial industry, the digital currency has been a leading technology, until now, only by itself. This cryptocurrency has exploded in recent weeks, when in just one day the Ripple advanced 71%.

DASH TRADING

DASH

The popular cryptocurrency, Dash, has been called by many as the Bitcoin 2.0. This digital asset was created to solve some of the weakest parts of Bitcoin. Programmers added new features to the Dash, making it faster and more anonymous than its predecessor. In the last two weeks, the Dash has increased its value by more than 100%!

LITECOIN LTC

Litecoin is similar to Bitcoin in many of its features and is also one of the most veteran cryptocurrencies of all. However, there are two main differences between Litecoin and Bitcoin: speed and quantities. While it takes 10 minutes to create a block of Bitcoin, Litecoin needs approximately 2.5 minutes to create a block – which means 4 times more speed. Therefore, Litecoin attracts many users and can produce up to 4 times the amount of Bitcoin! However, Litecoin uses very complex cryptography, which means that it is more complicated than the other cryptocurrency.

 MONERO XMR

Monero (XMR) was created in April 2014 and focuses on privacy, decentralization and scalability. It is a private, safe and unlocalizable currency system. Monero uses a special type of cryptography to guarantee that all its transactions remain unlocatable and without 100% links. The word “Monero” comes from the Esperanto language and literally means “currency”.

NEO

NEO is the first decentralized open source cryptocurrency and blockchain platform launched in China. NEO uses a unique blockchain algorithm similar to the Ethereum model. Although the basis is the same, it also supports decentralized trade, identification and digitization of various assets.

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THE PRICE OF GOLD

THE PRICE OF GOLD

The profits of the dollar stopped and, as a consequence, the gold had the opportunity to register more gains, since it went from 1307 to 1322 dollars an ounce during this morning and in this writing it was established in the 1317, waiting for new stimuli to achieve profits stronger and avoid further bearish pressures. After the announcement of the Chinese inflation data, the gold will react to the industrial numbers of the United Kingdom, while there is no important US data before the end of the week, therefore, the price of gold could monitor the level of the dollar based in the sentiment of investors along with the performance of the US markets.

The renewed strength of the dollar stopped the advance of gold, as the DXY dollar index reached 90.40 after being below 89.00 before strong US employment data, which offered strong support for the dollar to achieve these gains. Gold gains came to a halt with the strong recovery of the US stock market during yesterday’s session after heavy losses during Monday’s trading. On the daily chart of gold, we can see a new break in the bull trend that will be stronger if gold moves towards $ 1,300. Last Friday’s results showed a stronger than expected increase in US jobs, with 200,000 new jobs and an increase in average hourly wages to its highest level in 8 years, while the unemployment rate remained around from its lowest levels in 17 years, all of which is supporting the Federal Reserve’s plans to raise interest rates this year.

Technically, gold prices will break the bullish trend today and start their bearish journey stronger if the price moves to support levels at 1300, 1290 and 1282 dollars. But, if the price is stable above the 1300 resistance level, as it is now, the uptrend will be maintained and will be stronger again if it reaches the peaks at 1340 and 1325 dollars.

On the economic data front, gold will be completely focused on the level of the dollar and the risk appetite of the investor, since gold is one of the most important safe haven. Gold will monitor renewed geopolitical fears about North Korea, the Brexit or Trump’s economic plan.

Grafico del Oro

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HOW TO USE PIVOT POINTS

PIVOT POINTS

Historically, pivot points are one of the most used technical tools by Forex traders regardless of their level of experience in the markets. Basically, as a price level that indicates the direction (or feeling) of the market, pivot points are indicators represented by a line in a price chart that divides support and resistance. If they are used properly, then they can be an essential tool for traders.

What Exactly are Pivot Points?

In short, pivot points (PP) are reference points that traders use to get an idea of how the market moves and if the financial instrument they are trading has an upward or downward trend. A bearish sentiment is formed when the price falls below the PP level and, on the contrary, the bulls are in control if the price is above the pivot points (PP) level.

To calculate the pivot points (PP), an average of the maximum, minimum and closing price of the last completed sail formation is made. This is its formula:

Pivot Point (PP) = (Previous Maximum + Previous Minimum + Previous Close) / 3

Once the PP is found, the resistance levels (R1, R2 and R3) and support (S1, S2 and S3) are calculated as follows:

R3 = Maximum + 2 * (PP – Minimum)

R2 = PP + Maximum – Minimum

R1 = 2 * PP – Minimum

PP

S1 = 2 * PP – Maximum

S2 = PP – (Maximum – Minimum)

S3 = Minimum – 2 * (Maximum – PP)

Depending on the movement of the price, each level of resistance and support can take on the role of a pivot point. So, for example, if the price breaks through the R1 barrier, traders can trust that it is a bull market and the probability of a potential gain increases. If the price continues to rise, R1 essentially becomes the support for R2, which assumes the role of R1 and so on.

Conversely, if the price moves below the PP, then all eyes will be on S1, while the PP essentially becomes R1. If the prices oscillate within this narrow space, between the PP and the S1, the currency traders can be found buying in the S1 and selling in the PP.

Here is another important tip: if the market seems bullish, a stop loss order below R1 would provide potential protection against unexpected price movements. After all, there is no technical tool in this world that can guarantee with absolute certainty in which direction the market will move!

PIVOT POINT METHODS

While most Forex traders and investors use the Standard method (described above) to calculate PP, technical traders today use four more methods. These are those of Fibonacci, DeMark, Woodie and Camarilla.

The Standard, Fibonacci and Woodie methods are similar in their formulas because all three take into account the closing, maximum and minimum prices of the previous period. Camarilla is different since it also takes into account the opening price of the current period, while the DeMark formula depends on the ratio between the opening and closing price of the previous period and does not take into account the main PP.

The distance between each level (whether PP, S or R) depends on the method used for the calculation and, as such, the amount of confidence deposited in each level differs according to the formula. Therefore, giving an adequate amount of weight to the market sentiment can be difficult for both experienced traders and beginners. With this in mind, they can be used as a pivot point strategy as an educational tool that is not based solely on pivot point calculations to determine the direction and sentiment of the market. Using data from the three most widely used indicators, the MACD (Moving Average Convergence Divergence), Impulse and Moving Average, the aim of the tool is to offer the trader a clearer overall picture of the market, so that he (or she) can take more informed decisions.

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HOW DO PIVOT POINTS WORK?

admin | febrero 11, 2018 | Uncategorized | 1 comentario

HOW DO PIVOT POINTS WORK?

How do Pivot Points Work? The pivot points are one of the most common indicators used by traders in the currency markets. This is especially true if the operator is an intraday intraday operator, but loses a bit of importance for the long-term operator. The main reason why they are so popular is because they are a quick way to find out the possible support and resistance in a market.

Potential areas are loosely based on the idea of ​​expected volatility in a pair, and gain their first advantage in futures pits as a quick way to look for trading opportunities during a trading session. There are people who will decipher the pivot points in a longer time frame, but they will always meet with them; It is almost always on a short-term chart. In fact, there are short-term Forex traders who use nothing more than pivot points.

Some platforms support pivot points, but if you use a platform that does not support them, it is easy to calculate and graph them. For those of you with MetaTrader 4, there are a lot of indicators available for download in forums around the Internet that will calculate them automatically, and some brokers will also offer tools that will do it for you.

The pivot levels are calculated using three types of information from the previous day:

• HIGH PRICE

• LOW PRICE

• CLOSING PRICE

Obviously, to find the maximum, minimum and closing price of the previous day, you just have to check the candlestick of the previous session. Many operators plot pivot points in graphics with shorter time intervals such as the one-hour and 15-minute versions. Pivot levels can tell you when the market is going to reverse and change its direction as other short-term traders follow it as well. Obviously, these are not 100% predictive, but they can give you a good idea as to when day traders may be looking to invest in the market for the immediate future.

Calculate the pivot points with the following formula:

• Pivot point = (yesterday’s high + yesterday’s close + yesterday’s low) / 3
• Resistance1 = (pivot point x 2) – low yesterday
• Support1 = (pivot point x 2) – high yesterday
• Resistance2 = Pivot point + (high yesterday – low yesterday)
• Support2 = Pivot point – (high yesterday – low yesterday)

These are the possible areas of support and resistance in short-term markets that can be a guide for the day. Often, merchants will also use something like a candlestick in order to confirm the reactions that might be occurring in these areas.

A graph that shows the daily turning points in a 15 minute chart is attached.

Observe how the price has reacted to these levels as operators enter and exit the market:

As you can see, these are good “guides” on how markets can move and react. However, it is suggested that pivot points simply be part of your system, not the entire system

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HOW READ STOCK MARKET GRAPHS?

Read stock market graphs

Here we will you how to read stock market graphs and understanding charts on the Stock Exchange. If you have a graph, more than helping you, you are bundled, then this is your article.

In five minutes you will understand forever how this works. You will see that it is very easy.

In the following image (click to enlarge), top left, we can see that in this example, we have the graphic of Apple, the famous company of the iPod and computers.

In addition, marked with a red circle (top in the center), we see that it is a daily chart. This is what is called a chart of Japanese candles, so each candle represents a day. There are charts in which the candles represent weeks or minutes, but this is daily.

The market every day, opens in the morning, oscillates throughout the day, down to a minimum, rising to a maximum and closes in the afternoon.

So, the highest point of each candle is the maximum price that Apple reached that day, the lowest point is the minimum price of the day and the body of the candle (in red or green, although they could be other colors). the space between the opening and closing of the market. If it is green, the price has risen between when the market opened and closed. If it is red, it is that the price went down:

Is everything clear at the moment? If you have any questions ask.

In many occasions, the price charts are added lines and more graphics to quickly see the market situation. It seems complicated but it is extremely simple.

The first thing you usually do is add a moving average (in blue) to determine at a glance which is the trend. We see, for example, that in recent days the trend is bearish. Although looking only at the last candles we do not have it very clear, the moving average reveals it easily:

The next thing that is usually done is to mark an envelope channel (blank), which is moving Apple’s price lately. If we are going to buy or sell this is very useful, because it warns you of the margin that is likely from which the price does not come out in the coming days.

In many occasions, the price chart is accompanied by a volume chart (practically always in the form of bars), which reveals the interest people have in Apple, as it counts the amount of sales that have been made during the day:

From here, the graph can be added some “extras”, which are the technical indicators. There are hundreds, but we are going to show two of the most common, which are tremendously useful.

This one that we see in the next image, that of the green or red bars, is called MACD and reveals the strength that the bulls or the bears bring. When the bars are green it means that the bulls are stronger and that the price tends to rise, especially when the bars are getting longer. When they are losing strength, and the green bars are shortened, MACD warns us that the price will go down.

If the bars are red, the bears are stronger and the price goes down, especially if the bars are getting longer and longer. When they start to shorten it means that the bulls are regaining control and that the price is going to go up.

This other indicator is Williams% R. It is an oscillator and there are many similar to this. These indicators are fantastic to find the best time to buy and sell. They warn when people have been buying or selling and it is time to do the opposite. They help you buy cheap and sell expensive:

There are many more indicators and graphics can be added many accessories, but what we have seen is the most important.

Reasonably, with what you have learned in this article, you will be prepared to understand almost any price chart you find out there and, in addition, you can  analyze if it is a good time to buy or sell. Faster and simpler you can not.

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