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Trading with KAMA (Kaufman's Adaptive Moving Average)

 

KAMA (Kaufman's Adaptive Moving Average)

 

KAMA is a trend-following indicator that aims to serve multiple missions, for example, identify the trend and estimate key time turning points.

 

Introduction to KAMA

 

KAMA (Kaufman's Adaptive Moving Average)Kaufman's Adaptive Moving Average (KAMA) is designed to evaluate market noise and market volatility. The indicator was developed by Perry Kaufman in 1995 {Smarter Trading, Improving Performance in Changing Markets. New York: McGraw-Hill, Inc.}. You can use the KAMA indicator when trading with the MetaTrader4 platform, all you need is to download the platform and open an account with a Forex Broker.

 

KAMA Settings

 

The recommended settings by Perry Kaufman include KAMA(10,2,30).

 

There are two ways to use KAMA:

(i) A longer-term KAMA to define the overall trend (10,5,30)

(ii) A shorter-term KAMA for trading signals (10,2,30)

The second (shorter-term) KAMA can generate trade signals when price crosses above/below KAMA.

Read more: Trading with KAMA (Kaufman's Adaptive Moving Average)

A Quick Guide to Bollinger Bands

A Quick Guide to Bollinger Bands

Technical Analysis -Bollinger BandsTechnical analysis is considered by some, essential for success in the Forex market. One well-used indicator often used to measure volatility is Bollinger Bands.

This is a tool invented by a well-known technical trader, John Bollinger in the 1980’s, whereby two Bollinger bands, the price of the currency and a simple moving average are plotted onto a chart. An upper and low band are placed two standard deviations away from the moving average.

The chart easily displays trends; widening bands show high volatility whereas contracting bands indicate low volatility. When the bands squeeze the moving average, traders in the future will expect increased volatility and opportunities to enter the market. In a vice versa scenario, when the bands are widening traders would expect lower volatility and opportunities to exit the market.

Traders tracking price movements have concluded that when close to the upper or lower band the market is overbought or oversold. The bands can be used as support (upper boundary) and resistance (lower boundary) lines signaling when to enter and leave a market. Most price action occurs within the two bands; only in extenuating circumstances such as a major event will a breakout occur.

 

How to Use Bollinger Bands

Bollinger Bands are an accurate measure of the market’s performance its focus on volatility keeps the indicator adjusting to market conditions. In addition, traders trawling through price data only need to look within its two bands. Furthermore, this indicator can be applied to virtually any security or market.

As useful as the data is even John Bollinger, the architect of Bollinger Bands, advises that the indicator should be used in conjunction with others to find more direct market signals. Most standard charting packages will include a Bollinger band indicator. However, some charting packages, such as MT4’s charting package, are notably superior to others.

Performance:

(1) Measure Market Volatility

(2) Identify Trend-Reversals

(3) Set Early-Triggers

(4) Evaluate Oversold/Overbought Market Levels

MT4 Settings: 20 Periods Simple Moving Average | 2 Standard Deviations

 

Bollinger Bands Calculation

Here is how each of the three bands is calculated:

 Upper Band = 20-day Simple Moving Average + (20-day Standard Deviation of Price x 2)

 Middle Band = 20-day Simple Moving Average

■ Lower Band = 20-day Simple Moving Average - (20-day Standard Deviation of Price x 2)

Calculating the %b {Default setting (5,1)}

■ %b = (Price ‐ Lower Band) / (Upper Band ‐ Lower Band)

 

Where to trade using Bollinger Bands?

In order to trade currencies using the Bollinger Bands, you need a Forex trading account.

Vantage FX is an award-winning, Australian based forex broker. It offers its clients the opportunity to trade through MT4, MT5 and several other online trading platforms and apps. This forex broker is renowned for its exceptionally tight spreads and industry-leading execution. Furthermore, this broker also offers its clients an unlimited demo account. This means that you can practice trading using Bollinger bands until you feel that you have mastered the indicator. To open an account, visit their website at www.VantageFx.com, once you have opened an account and deposited money, you will then be able to open an unlimited demo.

 

CurrenciesFx Blog

(2018)

China Economic Outlook

Here are the important figures of The Chinese Economy.

Table: China's Outlook

CHINA'SECONOMIC OUTLOOK LATEST PREVIOUS UNIT REFERENCE FREQUENCY
GDP 7298.1 5878.63 USD Billion Dec-11 Yearly
POPULATION 1344.13 1337.82 Million Dec-11 Yearly
GDP PER CAPITA PPP 8442.23 7567.84 USD Dec-11 Yearly
LABOUR
UNEMPLOYED PERSONS 926 918 Thousand Persons Sep-12 Quarterly
UNEMPLOYMENT RATE 4.1 4.1 Percent Dec-12 Quarterly
PRICES
INFLATION RATE 3.2 2 Percent Feb-13 Monthly
PRODUCER PRICES 98.36 98.1 Index Points Jan-13 Monthly
MONEY
INTEREST RATE 6 6 Percent Feb-13 Monthly
FOREIGN EXCHANGE RESERVES 3311589.2 3297671.4 USD Million Dec-12 Monthly
           
MONEY SUPPLY M2 99210 97415.95 CNY Billion Jan-13 Monthly
TRADE
EXPORTS 1393.69 1873.66 USD Hundred Million Feb-13 Monthly
IMPORTS 1241.18 1582.19 USD Hundred Million Feb-13 Monthly
BALANCE OF TRADE 152.51 291.46 USD Hundred Million Feb-13 Monthly
CURRENT ACCOUNT 65.8 70.8 USD Billion Dec-12 Quarterly
CURRENT ACCOUNT TO GDP 4 5.2 Percent Dec-11 Yearly
GOVERNMENT
GOVERNMENT DEBT TO GDP 23 25.8 Percent Dec-12 Yearly
GOVERNMENT EXTERNAL DEBT 6949.97 5489.38 USD HML Dec-11 Yearly
GOVERNMENT BOND 10Y 3.61 3.61 Percent Mar-13 Monthly
GOVERNMENT BUDGET -1.5 -1.1 Percent of GDP Dec-12 Yearly
GOVERNMENT SPENDING 63616.1 53614.4 CNY HML Jun-11 Yearly
CREDIT RATING 78.82        
BUSINESS
INDUSTRIAL PRODUCTION 9.9 10.3 Percent Feb-13 Monthly
BUSINESS CONFIDENCE 124.4 122.8   Dec-12 Quarterly
CONSUMER
CONSUMER CONFIDENCE 108.2 104.5   Feb-13 Monthly
CONSUMER SPENDING 164945.2 133290.9 CNY HML Jun-11 Yearly

Source: IMF and Trading Economics

 

China's Economic Outlook 2013

Currencies Fx

Forex Market Hours and Trading Sessions

Get to Know Forex Market Hours and Trading Sessions

The Forex market has a daily trading volume of 4 trillion dollars, making it the biggest financial market in the world. Part of the reason for this is the Forex market hours, which are around the clock. Trading sessions continue on a daily basis, only breaking for weekends. During this time, Forex traders are allowed to buy, sell, exchange, and speculate on markets.

The reason the Forex market is almost always open, is because it is International, operating in every single time zone. It is always office hours somewhere in the world. But certain times are highly active, while other times are remarkably slow. These are called trading sessions.

 

Most Active Trading Hours

Despite being open 24/5, there are certain hours which are more active.

These include (all times EST):

❏     New York:       08:00-17:00

❏     Tokyo              19:00-04:00

❏     Sydney            17:00-02:00

❏     London            03:00-12:00

Read more: Forex Market Hours and Trading Sessions

US Economic Outlook

Here are the important figures of The US Economy.

Table: US Outlook

US ECONOMIC OUTLOOK LATEST PREVIOUS UNIT REFERENCE FREQUENCY
GDP 15094 14582.4 USD Billion Dec-11 Yearly
POPULATION 311.59 309.35 Million Dec-11 Yearly
GDP PER CAPITA PPP 48441.56 46701.52 USD Dec-11 Yearly
LABOUR
EMPLOYED PERSONS 143322 143305 Thousand Persons Jan-13 Monthly
UNEMPLOYMENT RATE 7.7 7.9 Percent Feb-13 Monthly
PRICES
INFLATION RATE 2 1.6 Percent Feb-13 Monthly
PRODUCER PRICES 196 195.6 Index Points Jan-13 Monthly
MONEY
INTEREST RATE 0.25 0.25 Percent Mar-13 Monthly
FOREIGN EXCHANGE RESERVES 151895 150175 USD Million Jan-13 Monthly
LOANS TO PRIVATE SECTOR 7241.6 7206.3 USD Billion Jan-13 Monthly
MONEY SUPPLY M2 10439.5 10402.4 USD Billion Jan-13 Monthly
TRADE
EXPORTS 184453 186630 USD Million Jan-13 Monthly
IMPORTS 228901 224774 USD Million Jan-13 Monthly
BALANCE OF TRADE -44448 -38144 USD Million Jan-13 Monthly
CURRENT ACCOUNT -110416 -112446 USD Million Nov-13 Quarterly
CURRENT ACCOUNT TO GDP -3.1 -3.2 Percent Dec-11 Yearly
GOVERNMENT
GOVERNMENT DEBT TO GDP 101.6 99.4 Percent Dec-12 Yearly
GOVERNMENT EXTERNAL DEBT -4030250 -4030250 USD Million Dec-11 Yearly
GOVERNMENT BOND 10Y 1.85 1.89 Percent Mar-13 Monthly
GOVERNMENT BUDGET -7 -8.7 Percent of GDP Dec-12 Yearly
GOVERNMENT SPENDING 2458.9 2503.1 USD Billion Nov-12 Quarterly
CREDIT RATING 96.89        
BUSINESS
INDUSTRIAL PRODUCTION 2.5 2.1 Percent Feb-13 Monthly
BUSINESS CONFIDENCE 54.2 53.1   Feb-13 Monthly
CONSUMER
CONSUMER CONFIDENCE 59.7 68   Mar-13 Monthly
CONSUMER SPENDING 9670 9620.1 USD Billion Nov-12 Quarterly

Source: IMF and Trading Economics

 

US Economic Outlook 2013

Currencies Fx

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