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Harmonic Patterns and their Use in the Currency Markets

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In the world of currency trading, there are many patterns that you can observe when you want to learn about the direction the market is taking. One of the most common patterns are the Harmonic patterns. These patterns are known to be very accurate in determining the movements that are just about to happen in the market. A lot of traders, therefore, use them to predict the future of the market. There are many ways the patterns are applied in the forex market. In order to understand the Harmonic trading strategy, we need to understand what the Harmonic patterns are all about.

The Core Structure of Harmonic Patterns

The basic structure of Harmonic patterns entails core elements of geometrical patterns which have been augmented by Fibonacci numbers. This means that the fundamental premise of the resultant patterns is that they are bound to repeat themselves in the market. Indeed, there are established ratios that record the manner in which the Harmonic patterns repeat themselves. At the start of any Harmonic pattern is the ratio 0.618 and its equivalents. This pattern is borrowed from nature itself as there are many recorded occurrences where the pattern is evident. Traders in the financial markets use this ratio to forecast the market’s direction.

In order to use the Harmonic patterns effectively, a trader must know how to adjust the strategy when necessary. The occurrence of a pattern can, for instance, mark a reversal zone. This means that price predictions would not be feasible. A confirmation is thus necessary and a suitable indicator would be great for providing this information. There are many great indicators to use with the Harmonic patterns and you can find them discussed in detail at Admiral Markets.

Visual Patterns of Harmonic Patterns

There are many patterns that can be observed when using the Harmonic trading strategy. Of the many patterns observable, four key visual patterns stand out among the rest. Each of these patterns come with accompanying signals and thus unique approaches to trading. The patterns are:

  • The Gartley Pattern
  • The Bat
  • The Butterfly
  • The Crab

1.The Gartley pattern

This pattern basically works on the premise that a reversal is bound to occur after a certain pattern has been established. When a Gartley pattern is formed, the last potential reversal zone that occurs is what traders look at to determine how they will place their next trade. In any market, an upward or downward trend can only be sustained for so long before the reverse occurs.

2. The Bat

The Bat also works the same way as the Gartley pattern but the main difference between the two are the resulting figures. For the Bat, the potential reversal zone is not as intense compared to the Gartley pattern. The reversal in this pattern for instance usually comes at shorter measurements in general. The bearish and bullish patterns thus appear much more frequently in this pattern.

3. The butterfly

The butterfly is quite different compared to the previous two patterns because its retracement levels often exceed the original starting point of the pattern. The butterfly relies on short trades and most of the ratios established in the pattern often have to be disregarded as they might be misleading.

4. The crab

Finally, the crab is often touted as among the most accurate of all Harmonic patterns. This pattern is quite distinct from the others since its reversals are almost always very close to each other. It is thus very easy to identify bullish and bearish markets.

Issues Associated with Harmonic Patterns

Like all other trading patterns, you will need to be careful so as to not miss the important signals when you are trading with Harmonics. Since the patterns rely a lot on the Fibonacci levels, many patterns that might look like Harmonic patterns often do not have corresponding Fibonacci numbers and thus cannot be used for trading.

It is also common for traders to be caught off guard by the market when they are over analyzing the Harmonic patterns. Not every pattern that begins like a Harmonic pattern ends up to be one. Other than that, there are also many other patterns that can be observed in the market alongside Harmonic patterns and this might make it difficult to track the relevant market signals.

In Summary

Harmonic trading is rational and thus crucial for trading. It, however, has its issues and should thus be used by experts in the filed. It takes time to get used to the different patterns and how to look out for them in the market.

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Student @ Advanced Digital Sciences Center, Singapore. Travelled to 30+ countries, passion for basketball.

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Managing creative employees

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Managing creative employees

Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them.

How to manage creative employees

Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them. Find out how to organize your creative employees in the best way and without unnecessary stress following the tips from these 10-page papers.

The method of the stick doesn’t work

Formally, creative people are no different from all others. And informally, of course, the difference is obvious. The geniuses have other motivators. For example, for them recognition is more important than money. A free schedule is more comfortable than working from a call to a call.

So, it’s advisable to rather choose the right leadership style to live in peace and harmony. In the scientific literature, four types of management are distinguished:

  • Authoritarian. When everything in the company occurs at the behest of the head, and the subordinates are obedient executors.
  • Market. Relations in the team are built on the principle “you do something for me and I’ll do something for you.” This is kind of entrepreneurial approach.
  • Bureaucratic. The company has clear regulations, management orders are not discussed, and all employees are disciplined and executive.
  • Democratic (humanistic). This is a paradise for creative workers. The staff of the company is one big team, where everyone is given chances to realize their ideas, even the most grandiose ones.

Follow your line

The main words to the manager is to become the creative leader himself. However, it makes no sense to create without knowing the measure and purpose. Therefore, top managers of innovative companies adhere to the following principles when running a team:

  • Self-management. Provide employees with a field for activities, not pushing in their strict framework, but also avoiding arbitrariness.
  • Personal responsibility for the result. Do so that every member of the team understands that the success of the project depends on it. Praise because creative people like approval very much.
  • Freedom. Every employee has the right to work as he likes. Work from home, at night or daytime – in fact it’s not important. The main thing is the result.
  • Tasks for interests. A routine is the most terrible word for creatives. They are bored sitting for a long time in one place, doing the same thing. A maximum of three years, and the true creator will run away, even if you give him free breakfast and lunch. So periodically change everything: tasks, areas of responsibility, and projects.

Looking for talents

In order to prevent the search for personnel from turning into a torture, one should immediately pay attention to those candidates who are equally capable of working both in the office and in public transport. And at the same time to give out unique intellectual products that did not exist before, absolutely viable.

During the interview, offer the applicant a simple test. For example, to come up with as many options for non-standard use of a paper clip within one minute. The candidate writes the answers on a letterhead, which is then analyzed.

Work environment

It’s more interesting for the creative person to work in a circle of like-minded people. It is not necessary for this to open super offices where you can ride bikes or lie on bear hides.

The creative environment is a mood, a climate, a kind of comfort. Everything will turn out fine if you take into account some features in time:

  • Create friendly relations. It is very good when you can communicate freely the company, without hierarchy, consult all issues directly with top managers and take the initiative.
  • Support the staff. In a good working climate, ideas and proposals are received with interest and are welcomed by leaders of all ranks. Often arrange brainstorming so that everyone can feel the team spirit and positive attitude.
  • Demonstrate trust and be open. When each person puts forward ideas and is not afraid to express his opinion, the emotional burnout of staff will not overtake.
  • Joke so there will be ease, spontaneity, and a friendly atmosphere.
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The best ways to protect your business against financial fraud

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financial fraud

Businesses of all types can fall victim to fraudulent activity, from the smallest of enterprises to the largest multinational organisations. Financial fraud is all-too-common and can really impact on the image and reputation of any business. But, there are steps you can take to protect your business against fraud, and here’s how.

Keep a closer eye on your accounts

You need to keep a close eye on your accounts because, if you don’t know your company’s figures, how are you going know whether or not you have become a victim of financial fraud? Criminals are clever and they will be able to steal large sums of money from you over time, without it making a noticeable difference to your daily working operations straight away.

One of the best ways to stay on top of this is to invest in a software solution that allows you to keep track of your finances at-a-glance whenever and wherever you want to see them. The easier it is to access your accounts, the easier you’ll find it to monitor what’s coming in and out and spot any transactions that don’t look right.

Employee background checks

These days you need to be vigilant so consider running background checks on potential employees who will be handling money for your business, whether this is dealing with cash or financial records. Having employees that you can trust is the first step to combating potential fraud – they are, after on the front line against fraud.

Firewalls and virus protection

Make sure all your computers, including the ones used for work outside of the office, are fully equipped with the latest firewall and virus protection software. Malware and spyware are ones to consider as these could be used by fraudsters to trick their way into your systems.

Change passwords

Have your employees regularly change their login passwords. Passwords should ideally be changed every 60 to 90 days and have at least eight or more characters featuring upper and lowercase letters as well as numbers. Again, this is all about making it harder for people to hack into your systems and access your private financial data.

Keep company information safe

Your business requires you to hold information such as employee identification numbers, tax, wage and other sensitive information. This should be encrypted and safely stored, with access only given to those who require it for their jobs.

You should also keep important paperwork such as checks protected and in a secure location that is not easily accessible to the wrong hands. When it comes to disposing of any company documents, shred them. Being cautious with your business information is an important step to preventing fraud. If you give nothing away, there’s nothing for fraudsters to latch onto.

Protecting your business against financial fraud should be an important priority. Take it seriously, follow the steps above and give yourself the best possible chance of staying safe.

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Francisco Reynés: “Naturgy wants to play an important role in Europe”

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Francisco Reynés Naturgy

Francisco Reynés, executive chairman of Naturgy (formerly Gas Natural Fenosa), has mentioned the great value of the energy multinational company in the reorganisation of the sector in Europe. He has also expressed that they are open to corporate acquisitions.

Francisco Reynés has made these statements during an interview with the Spanish newspaper EXPANSIÓN, leader in economic news.

Francisco Reynés has mentioned the Naturgy Strategic Plan for the period 2018-2022, which was presented some weeks ago in London; a plan that promises its shareholders to increase the dividend in cash by at least 5% per year until the end of the period.

To reinforce the new shareholder remuneration policy, and if the intended acquisitions do not materialize, the company could allocate a maximum of € 2,000 million in the period as share buyback.

About this possibility, Francisco Reynés has explained that “in march, when we started to design the strategic action plan, we decided to conceive it without restrictions so that we can accomplish our own strategic decisions”.

“We want to demonstrate that it is not necessary to buy another company; Naturgy is in a position to develop by itself”, he added.

Once the strategic plan has been drafted and presented, Francisco Reynés has recognized that “it is important to look at everything”. It is not a race where you are running alone, you have to look what the competition is doing. To grow in business should not an obsession, it is rather an option”, he said.

Francisco Reynés has also insisted on the need to “play an important role in the reorganisation of the sector (…) We can be a relevant energy actor in Europe”, he concluded.

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