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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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How to Boost Your Company’s Income Long Term

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Part of running a company is trying to make it profitable at least in the short term. You need to make your business generate money, so you can keep the company running each day. However, what if you want to expand your company in the future, or start offering more choice to your customers? You might not have enough profits to achieve this now, but you can try to boost your company’s long-term income so that you can build towards it in the future.

Work on Your Profit Margin

Although your profits might be doing well, there might be room for improvement that will give you a better long-term return. Think about your business and see if there are any areas where you can improve your profitability. You might be able to do small things like finding a cheaper energy supplier or use cheaper suppliers for your products. Another option is to see if you can increase your productivity which will generate more profits in return. To make this work effectively, you need to create a plan that will take into account all parts of your business.

Seek Long-Term Investment

If you have been making steady profits for a while, there should be no reason why investors shouldn’t look favorably on investing in your company. You need to give them a long-term vision of where you want to take the company, and how much you think you can sell at that time. It needs to be realistic, or your potential investors might not come on board, but it also needs to be ambitious enough that your company will grow as a result. If you already have investors in your company, then they might be more able to invest more in the company knowing its current growth.

Invest in Other Companies

There are many companies that choose to invest in other businesses. For some, these are long-term investments designed to generate additional income for the business. It might also be an avenue personally, as you can invest in other companies and use the income to help finance your business. If you are new to investing, then there are ways such as Betterment investing that are great for new investors who don’t want a lot of hands-on dealings.

Consider Franchising

One way that you can increase your profits without having to spend a lot of money is to offer franchises. These offer budding business owners the chance to start their own business and have all the back-up they need, without having to create their own business idea. It also works for you because you don’t have to run the franchise or provide staff. There have been many companies that have benefited well from launching franchises.

Even though the immediate future of your company is important, you need to think ahead so you can keep your business growing. Part of that is trying to generate enough income to move into other areas or bring out new products.

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Forex Brokers In Shambles As New Rules Draw Close

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The new regulations established by the European Securities and Markets Authority (ESMA) are drawing closer and brokers are fidgeting. The implementation date of these rules that touch on a vast section of the forex market is set for August 1. There are many new changes that are expected to come with these new rules, among them, the reduction of the margins of major currency pairs. As of now, currencies get up to 200:1 ratios but the expected rules establish the maximum ratio to be 30:1. As expected, the volumes of trade and revenues will be highly affected by the rules. Other changes that will be heralded by the regulations include the banning of negative account balances that caused havoc in 2015.

Owing to the expected changes, a lot of brokers are set to either move to new operating bases outside Europe or completely leave the business before the regulations take effect. The market is definitely set for a turbulence as these adjustments pan out. If the brokers shift their bases though, their fate is unlikely to change as regulations will still follow in whatever country they might go. At the end of the day, the clients will have the final say as to whether to do business with the brokers or not.

Most of the smaller brokers have the option of merging their businesses with established brokers in the market. Failure to do this would render their business untenable due to high operating costs. It is expected that the new changes will raise the operating costs for brokers while the revenues will take a downward turn. Some of the major brokerage companies have already started giving out details of how much the new rules will affect the market. Some big firms like Dukascopy have already either expanded to other markets or planned to do so.

The forex market is usually tough for most traders and the high levels of leverage come with both benefits and disadvantages. Most traders today can share experiences during a forex seminar as there are many of those every year.

CME records high volumes in the month of May

CME Group Inc. came out with positive news that seems to be a reflection of the crisis in Italy and the abrupt market movements. CME reported a year on year growth of 34% by the month of May, which was higher than the previous year. In addition, EUR/USD recorded a breakout from a slump that lasted for three months. The over 1.1 million daily contracts recorded were responsible for this development.

Questrade receives accolades in Canada

In the Canadian market, long-standing firm Questrade was touted as one of the best in the market from the annual ranking of Canadian brokers. The firm came out on top of the Initial Impressions category and also came out as a strong contender in the overall market category. Other areas of the firm that were ranked as impressive include; customer service, mobile accessibility, and fees and commissions. The company has had a number of innovative solutions which include free ETF’s, a remarkable chat service and one-cent trades. MoneySense, in partnership with Surviscor Inc., carried out the research and ranking.

LCG woes persist as more staff leave

The London Capital Group has been facing several challenges in recent times. A considerable number of employees have left the firm and the latest person on the list is the CEO Charles-Henri Sabet. The many challenges that the firm has faced have not waned despite it raising huge amounts of capital in recent years. Two years ago, over one-third of the employees left the company and the departure by the CEO is simply a clear sign of failure by the firm to compete with its rivals. Some firms, including GAIN and Cantor Fitzgerald, had earlier made moves towards acquiring the troubled firm. Those moves, however, did not materialize after both firms review LCG’s financials.

XTB gets new Compliance Officer

XTB U.K. has a new Compliance Officer. Suraj Patel, the new head in the department, comes at a time when the new rules in the financial market are set to take place. This has indicated the firm’s devotion to comply with the expected regulations. Suraj Patel will be responsible for the firm’s cooperation with the Financial Conduct Authority (FCA). XTB U.K. has recently received some favorable ranking according to online broker reviews.

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Reach a worldwide audience with the translation services

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In the digital age there is no doubt about it, the world is getting smaller. No longer is communication limited to just one channel, medium or country. People all over the world are accessing new information, new products and new services every single day, and are no longer restricted to their local area.

Through the internet, whether it is websites or social media, businesses now have the chance to connect with these customers from all around the world. But with geographic barriers broken down, how can you start to break down language barriers too?

The answer lies in translation services. Once the remit of the travel and tourism market, where translation was by necessity, it is now far, far wider than that. For a business to become truly global, it needs to be multilingual, and to do that you need a linguistic solution from the professionals.

The benefits are obvious, reach more people and your business will grow. It is the best path to success of your business, with the potential for growth far larger once new markets are opened up.

Why choose a translation service

With all the effort in the world, no company that is not already a huge global corporation simply cannot provide translations at a native level in multiple languages. Simply recruiting native speakers is near on impossible, and even then the wage bill would be huge as you try to cover as many languages as possible. Even those companies large enough to have access to those types of resources can struggle, and tend to use professional translation services themselves.

With translation services provided by experts, you can ensure your project will be a success and delivered on time. They will have a pool of resources readily available to turnaround the work fast, but with a driving commitment to the highest quality. No matter the size of your project they will be able to scale up to meet the resource needs, in a way that is far harder to do on your own.

Look for a translation service that has a large platform of native professional translators. They will be familiar with local idioms, expressions and the nuances of the language you want to communicate in. Localization is about far more than just translation of text, it is about cultural context and getting this right is the only way to truly connect with a global audience.

You should be able to simply explain what you need, in which languages, and you can have faith that it will be done.

With the right translation service, you will find a partner in success, dedicated to helping you achieve your globalization goals.

A translation service can deliver more visitors to your website

More visitors, more customers, more sales. It is a simple numbers game. But how can translation services deliver more visitors?

You have probably already got a well established SEO strategy, you know which keywords and other items to include in your website content to lift yourself higher on the search engine rankings. It is the core part of any digital marketing strategy.

You now need the same in multiple languages, and translation services can deliver this. With SEO experts and local knowledge, translation of your website content will be optimized for key search terms and local trends in the country you are targeting. How else would you know which terms are currently relevant, what local language trends are and how to utilise them. No modern language ever stands still, it is adapting all the time, and to keep up, you need professional native speakers.

A good translation service will also be able to write relevant, informative and optimized blog posts on topics likely to interest the local audience, and tie it together with social network publications, which will all help drive traffic to your site. It is not enough anymore to just focus on the one channel of communication, it needs to be holistic across all channels if you want to be seen.

Having native local experts will also help you engage with your new found customers, and can dramatically improve retention of those customers, by assisting you achieve a truly integrated campaign of engagement.

More than just the written word

Technological advances, mean that communication is so much more now than an intelligently translated website. With video, audio, voice interaction and of course the written word, customer journeys have become so much more interactive.

The best content these days uses all types of media to engage with an audience, and the more content rich a website is, the more likely it is that the audience will convert to being paying customers.

Translation services can help with this. Whether a voice over service for a corporate or introductory video is needed, or you are offering an online service that is interactive with the user, getting the right use of language is all important.

Whether it is the in the design and interpretation or audiovisual production subtitling, hiring a translation service to do this work will add consistency and quality to the customer journey.

Professional help when you need it

Another benefit of hiring a professional translation and communication agency for your linguistic needs, is you can be sure of the quality. Not only for the work itself, but also in the reviewing and editing process.

There will also be occasions where there are legal implications in the text that is being translated. Perhaps it is in the terms and conditions of a service you are providing. Or terms of usage or your privacy statement. Whatever you need, a good translation service can offer sworn translation services, to ensure that you are meeting your compliance obligations.

This can work for many areas, such as financial invoicing and legal paperwork. No matter how complex the document, you can trust that it will be delivered correct and on time as you need it.

Expand your horizons, reap the rewards

If you haven’t started on your journey of becoming a truly global company now is the time to start. It just makes good business sense, and the investment in the right translation partner will pay back a thousand times over.

It may seem daunting at first, but translation agencies exist to take that pain away. Ultimately the easier it is for a customer to communicate with a business, the more likely they are to use that service or buy that product again and again.

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