..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/sigma-indicators/average-directional-movement-index.html">
Average Directional Movement Index

J Welles Wilder has developed the Average Directional Index (ADX) to define trend force, whether the trend will develop further or will gradually weaken.

The simplest trading method based on the system of directional movement implies comparison of two direction indicators: the 14-period +DI (yellow) one and the 14-period –DI (Green). To do this, one either puts the charts of indicators one on top of the other, or +DI is subtracted from -DI. W. Wilder recommends buying when +DI is higher than -DI, and selling when +DI sinks lower than -DI.
To these simple commercial rules Wells Wilder added "a rule of points of extreme". It is used to eliminate false signals and decrease the number of deals. According to the principle of points of extreme, the "point of extreme" is the point when +DI and -DI cross each other.

- If +DI raises higher than -DI, this point will be the maximum price of the day when they cross.
- If +DI is lower than -DI, this point will be the minimum price of the day they cross.

The point of extreme is used then as the market entry level.
Thus, after the signal to buy (+DI is higher than -DI) one must wait till the price has exceeded the point of extreme, and only then buy.
However, if the price fails to exceed the level of the point of extreme, one should retain the short position.

• Market Types

The market often display's some very familiar patterns of price movement. Once a pattern is established, it becomes the most probable course of future price action until the market changes. There are two types of markets which become important for the beginning trader to identify; trending and trend-less. Each market type has two specific patterns which you will also notice over time.

These market types and patterns can be defined as follows:

Trending - Steady elongated price movements with less than a 45-degree angel with occasional pauses, profit taking, or resting periods.

Uptrends - A pattern of higher highs and higher lows.

Downtrends - A pattern of lower lows and lower highs.

Trend-less - Erratic price movements which are often steep ( greater than 45 -degree angle ) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.

Choppy - An erratic pattern of higher highs and lower lows.

Sideways - A narrow pattern of lower highs and higher lows.

While up-trend and down-trend days can offer excellent trading results, choppy markets often create stop outs, while sideways markets produce for little in either direction. Our trading objective is to get into a trending market and ride until we make our target objective.

..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/sigma-indicators/moving-average.html">Moving Average

Moving averages are one of the most popular, easy & used indicator in technical analysis & also it can be used as an overbought / oversold indicator.
The term "Moving" refers to the method of calculation which takes the average value over a fixed period of time and adds the latest period data to the calculation of the average while dropping the first period of the calculation so that the average continues to be calculated by the same number of periods but moves with each new period of data that occurs.
A 14 day moving average represents the trend in prices over a period of 14 days. A longer 50 day moving average is smoothed more than a 14 day moving average with each new day's data making less impact on the calculation of the moving average value than a shorter term moving average such as the 14 day moving average.
In Moving average, if price is above the moving average it indicate bullish behavior. While when the prices are below the moving average it is an indication of bearish behavior in relation to the trend length being viewed.
The signal of moving average is to buy when the securities price moves above its moving average and to sell when the price moves below its moving average.
Types of moving averages on the chart:
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA)
- Smoothed Moving Average (SMMA)
- Linear Weighted Moving Average (LWMA)

• Chart Patterns - The Basics

To be profitable in today's world technology and advancement, one must be proficient and reading and more importantly understanding chart patterns and basic technical indicators. Below is just a few basic points to help your understanding of technical analysis and currency chart reading.

• Pricing

Price reflects the perception and action taken by the market participants. It is the urgency between buyers and sellers in the trading pit that creates price movement.

Thus, all fundamental factors are quickly discounted in price. Therefore, by studying the price charts, you are indirectly seeing the fundamental and market psychology all at once - after all the market is feed by two emotions - Greed and Fear and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.
Data Window.

Most computer programs will display a small box of data usually called a display window which will contain the following items:

O = Opening Price
H = Highest Price
L = Lowest Price
C = Close or Last Price
Tr = Volume or number of trades ( not contracts ) in that time period.

..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/sigma-indicators/bulls-power.html">
Bulls Power

Bulls Power oscillator developed by Alexander Elder & it based on estimation of bulls Power balance since changes in this balance initially signalize about possible trend reversal.
There is always a war between the bears (Pushing prices down) & bulls (Pushing prices up) that depend on the demand& supply in the market & at end of each day there is a result of this war (high or low prices) so during the day it’s very important to be able to estimate the reverse of the line chart.
If trend indicator is down-directed and the Bulls Power index is below zero, but falling, it is a signal to sell.

Advantages Sigma Forex Platform:

Meta Trader 4 Server API makes it possible to customize the work of the platform to engage the services of your requirements.

• Economy and productivity

Implemented data transfer and processing protocols are notable for their economy. It makes it possible to support several thousands of traders through a single server with the following configuration: Pentium 4 2 GHz, 512 DDR RAM, 80 GB HDD. Using recent protocols decreases the requirements of the data link and their execution cost.

• Multicurrency basis

The system is designed on a multicurrency basis. It means that Variable currencies could be exchanged where any currency could be considered as general currency in the whole complex online trading operation in all the countries with the nationa.

..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/sigma-indicators/de-marker.html">
De Marker

Demark is based on the comparison of the period maximum with the previous period maximum If the current period (bar) maximum is higher, the respective difference between the two will be registered.
This indicator used to identifying the riskiness of the levels in which they the transaction takes place.
The indicator fluctuates from 0 up to 1that when the indicator falls below a mark 0.3 the turn of the prices upwards is expected & when the parameter of the indicator rises above a mark 0.7 the turn of the prices downwards is expected.

 Advantages Sigma Forex Platform:

Meta Trader 4 Server API makes it possible to customize the work of the platform to engage the services of your requirements.

• Covering all financial markets

Sigma’s trading platform Meta Trader 4 covers all brokerage and trading activities at Forex, Futures and CFD markets.

• Restoration

In the case of damage of the historical data, the complex has backup and restoration systems. Also, the implemented synchronization allows restoring damaged historical databases within several minutes with the help of another Meta Trader 4 server.

• Flexibility of the system

The platform possesses a wide range of customizable functions, where you can set all parameters, from trade session time to detailed properties of financial instruments of each user groups.

..."try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.sigmaforex.com/sigma-indicators/ichimoku-kinko-hyo.html">
Ichimoku Kinko Hyo

The Ichimoku Kinko Hyo Japanese charting technique was developed before World War II with the aim of portraying in a snapshot where the price was heading and when was the right time to enter or exit the market.
Ichimoku Kinko Hyo is a phrase in Japanese language which means "Chart Equilibrium at a glance".
It includes five curves:
1) Tenkan-Sen (Brown): Shows the average price value during the first time interval defined as the sum of maximum and minimum within this time, divided by two.
2) Kijun-Sen (Blue): Shows the average price value during the second time interval.
3) ****ou Span (Yellow): Displays the closing price of the current candle, shifted back on value of the second time frame.
4) Up Kumo (Green): Displays the midpoint between the previous two lines, shifted forward on value of the second time frame.
5) Down Kumo (Red): Displays the average value of the price for the third time frame, shifted forward on value of the second time frame.
The two Senkou Span (leading) lines are pushed forward in time to represent past support and resistance & the area between them is shaded to make it like a cloud. This "cloud" not only defines the trend but acts as support and resistance for price.
A very basic precept is: if price is above the cloud then the trend is higher and vice versa.
- Buy signal issued when the Tenkan-Sen (brown) crosses the Kijun-Sen (blue) from below. Conversely.
- A bearish signal is issued when the Tenkan-Sen crosses the Kijun-Sen from above.
If there was a bullish crossover signal and the price, at that time, was trading above the cloud, this would be considered a very strong buy signal.
If there was a bearish crossover signal and the price, at that time, was trading below the cloud, this would be considered a very strong sell signal.

 Advantages Sigma Forex Platform:

Meta Trader 4 Server API makes it possible to customize the work of the platform to engage the services of your requirements.

• platform Interface
  

API can solve a wide range of problems:

• Creating analyzers to find a trend of monthly increase of traders.
• Creating applications of integration into other systems.
• Stretch forth the functionality of the server.
• Carry out its own system work control mechanisms.
• One click orders execution.
• Daily account statement.
• Large number of technical indicators and line studies.
• And do much more.