Forexignition

Forex Multiple income stream

admin — Sat, 11 Sep 2010 23:39:46 +0000

Today’s economy has caused many of us to rethink our security in terms of the income streams coming into our households. One or two income streams are no longer considered to be that secure. The prudent households are exploring many different ideas to build additional income just in case one of the primary streams disappears.

Forex Ignitions goal is to help the beginning/novice/ Professional as traders as well, build a successful home business by trading the Forex (foreign currency) market profitably on a consistent basis. This website is designed to be a resource by providing tips, techniques, strategies, and recommendations for all aspects of Forex trading

The Fibonacci Sequence in Nature & The Mystery of Golden Ratio

admin — Sun, 23 May 2010 23:10:14 +0000

In mathematics, the limit of Fibonacci series is called as Golden Ratio. This ratio is approximately equal to 1,618. In nature, one can come across this ratio in many areas of art and science. Fibonacci sequence actually has a very unique characteristic. Dividing a number with previous number allows you to get approximately similar result. However, the result will be the same after the 13th number inside the series: 1,618 that is Golden Ratio.

How To Trade Price Action

admin — Sun, 23 May 2010 19:50:36 +0000

The concept of trading price action, for our trading method, is the right side trading of prices that have previously been established from chart reading previous price action areas that preceded breakout continuation price moves.

Price Action Area

The rectangle area is what I refer to as a price action area. A price action area is the area preceding where an ‘extended’ price move occurs — often from some consolidation period like in this case.

In the case of this price action area rectangle, there was a left side sell swing that consolidated between the swing low AND resistance, which was where the sell swing last broke at the yellow circle.

How to Calculate Pivot Points

admin — Sat, 22 May 2010 14:47:33 +0000

There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day’s high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows:
R2 = P + (H — L) = P + (R1 — S1)
R1 = (P x 2) — L
P = (H + L + C) / 3
S1 = (P x 2) — H
S2 = P — (H — L) = P — (R1 — S1)
Here, “S” represents the support levels, “R” the resistance levels and “P” the pivot point. High, low and close are represented by the “H”, “L” and “C” respectively. Note that the high, low and close in 24-hour markets (such as forex) are often calculated using New York closing time (4pm EST) on a 24-hour cycle. Limited markets (such as the NYSE) simply use the high, low and close from the day’s standard trading hours.

Who is Fibonacci ?

admin — Sat, 22 May 2010 14:35:44 +0000

The “greatest European mathematician of the middle ages”, his full name was Leonardo of Pisa, or Leonardo Pisano in Italian since he was born in Pisa,Italy (see Pisa on Google Earth), the city with the famous Leaning Tower, about 1175 AD.

Pisa was an important commercial town in its day and had links with many Mediterranean ports. Leonardo’s father, Guglielmo Bonacci, was a kind of customs officer in the present-day Algerian town of Béjaïa, (see Bejaia on Google Earth ) formerly known as Bugia or Bougie, where wax candles were exported to France. They are still called “bougies” in French.

So Leonardo grew up with a North African education under the Moors and later travelled extensively around the Mediterranean coast. He would have met with many merchants and learned of their systems of doing arithmetic. He soon realised the many advantages of the “Hindu-Arabic” system over all the others.

D E Smith points out that another famous Italian — St Francis of Assisi (a nearby Italian town) — was also alive at the same time as Fibonacci: St Francis was born about 1182 (after Fibonacci’s around 1175) and died in 1226 (before Fibonacci’s death commonly assumed to be around 1250).

By the way, don’t confuse Leonardo of Pisa with Leonardo da Vinci! Vinci was just a few miles from Pisa on the way to Florence, but Leonardo da Vinci was born in Vinci in 1452, about 200 years after the death of Leonardo of Pisa (Fibonacci).

What is Fibonacci

admin — Sat, 22 May 2010 14:30:19 +0000

A series of whole numbers in which each number is the sum of the two preceding numbers. Beginning with 0 and 1, the sequence of Fibonacci numbers would be 0,1,1, 2, 3, 5, 8, 13, 21, 34, etc. using the formula n = n(-1) + n(-2), where the n(-1) means “the last number before n in the series” and n(-2) refers to “the second last one before n in the series.”

In computer programming, Fibonacci numbers give a model for designing recursive programming algorithms where the time for any routine is the time within the routine itself, plus the time for the recursive calls.

The Fibonacci numbers were originally defined by the Italian mathematician Fibonacci, also known as Leonardo da Pisa, in the 13th century to model the growth of rabbit populations.