SigmaForex - Fundamental Analysis On Forex Trading

It has become imperative for every forex trader to learn how to predict the price trend and which method or software is the best.

When you do forex trading, it is very important to understand the difference between fundamental analysis and technical analysis. A quick explanation of the difference among the two types of analysis is: fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycle framework while technical analysis focuses on price action and market behavior, especially on chart and technical indicators.

Needless to say both schools are equally disparaging about the other, and both believe their techniques are infinitely superior. But the reality is that it has become increasingly difficult to be a purist of either persuasion. Fundamentalists need to keep an eye on the various signals derived from the price action on charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or the myriad of societal issues that influence prices.

Generally speaking, fundamental analysis can only judge which direction the market will move, and technical analysis can supply both direction and rough currency rate.

Keeping in mind that the financial underpinnings of any country, trading bloc or multinational industry takes into account many factors, including social, political and economic influences, staying on top of an extremely fluid fundamental picture can be challenging. Meanwhile, forecasting models are as numerous and varied as the traders and market buffs that create them. Different people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it. At the end, some may make huge profit and some lose their money. You can not say fundamental analysis is easy.

Remember, fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices.

SigmaForex Forecast And Win An Account

Get A Free Real Account

Through Sigma indicators you can forecast the upcoming prices of the pairs & get a chance to win a $ 50 live Sigma account.

For participation please select the pair that you are predicting for it, then fill in the following form & don't foreget to write down your

forecasted price.

Sigma Forex encourage the clients to study and analyze Forex Market by giving them more promotion and more chances to begin trading at

Forex Market.

* First: Choose one pair from the platform.

* Second: Try to use Technical And Fundamental Analysis to predict Friday's closing price for this pair.

* Third: Write down in an email the following data:

1) Your Telephone Number

2) Your First and Last Name

3) The Choosen Pair

4) The Predicted Price

5) Your E-mail Address

* Fourth: Send this emails at If at forecast@sigmaforex.com any time you need assistance please click on the Live Chat button on the right menu and one of our customer support staff will help you through the process.

SigmaForex Risks of Trading in Forex Market

Although every investment involves some risk, the risk of loss in trading off-exchange forex contracts can be substantial. Therefore, if you are considering participating in this market, you should understand some of the risks associated with this product so you can make an informed decision before investing.

As stated in the introduction to this booklet, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital i.e., funds you can afford to lose without affecting your financial situation. There are other reasons why forex trading may or may not be an appropriate investment for you, and they are highlighted below.

The market could move against you

No one can predict with certainty which way exchange rates will go, and the forex market is volatile. Fluctuations in the foreign exchange rate between the time you place the trade and the time you close it out will affect the price of your forex contract and the potential profit and losses relating to it.

You could lose your entire investment

You will be required to deposit an amount of money (often referred to as a security deposit or margin) with your forex dealer in order to buy or sell an off-exchange forex contract. As discussed earlier, a relatively small amount of money can enable you to hold a forex position worth many times the account value. This is referred to as leverage or gearing. The smaller the deposits in relation to the underlying value of the contract, the greater the leverage. If the price moves in an unfavorable direction, high leverage can produce large losses in relation to your initial deposit. In fact, even a small move against your position may result in a large loss, including the loss of your entire deposit. Depending on your agreement with your dealer, you may also be required to pay additional losses.

Overtrading is another ordinary money management mistake in the forex market. This trading does not have clearly defined trading objectives; the sole reason is to make more money. To avoid this mistake, make sure that every trade is broken into ultimate goals, and that these goals are achieved before other positions are added. Very few traders can successfully manage multiple positions in a variety of currency trading markets.

Sigma Forex is leading European professional online trading Brokers registered in the Switzerland and most of the EU countries. It was founded by professional private investors including (banks, traders, brokers, and software developers), which enabled Sigma to identify the essential needs of the Forex participants from the start.

Since 2003, Sigma’s aim has been to provide the best, powerful and most suitable currency trading technology along with superiority in execution, competitive services, and dependable customer service. Over the past years, Sigma has quickly become one of the world’s leading online retail currency trading institutions, providing integrated global trading systems, analysis techniques and the most reliable and sophisticated online trading software. We offer internet trading through Meta Trader. This trading platform is very stable and reliable. It is highly regarded and very popular among traders.

Learn Forex Trading to Expand Opportunities in SigmaForex

Capitalize on the opportunity to learn forex trading so you can begin the process of branching your portfolio out of domestic stocks and into the global market. Any financial advisor worth his weight will tell you that it is important to diversify your investment portfolio and this is by far the largest volume market in the world. Daily, it does nearly four times the volume of trading than the New York Stock Exchange does.

Anyone who holds a basic understanding of how money is converted and exchange rates work can learn forex trading. The sale or trading of currency is at the heart of what forex is. Using one currency to buy another means that your counterpart is using their currency to buy yours. As exchange rates fluctuate and the economies of nations surge and recede, these investments in cash behave in value very much like a traditional stock. As with any new venture, you will need to master the vocabulary that is an inherent part of forex. When you begin to learn forex trading you will be introduced to terms like pip, spread, cross, base currency and trade currency.

Foreign exchange trading does have some unique terminologies. While they may be new to you, you will learn them quickly because they describe certain parts of forex quotes that you will need to understand in order to trade. There are quite a few resources available to those who wish to learn forex trading. The reliability of internet access has opened the door to online forex trading, which means that more investors have the ability to participate in trading activity. Since the foreign exchange trade is considered a spot market, the ready availability of internet access is crucial. Business is done on the "spot," thus the name. You can capitalize on many benefits when you learn forex trading. The availability of a 24-hour a day market is one. Since forex involves the trade of currency at banks across the globe, the market never closes. The market is also remarkably liquid, meaning that you will never have trouble finding trading partners. Since most of your trading partners are banks and the medium is cash, you will never be at a loss for customers. Another benefit is the lack of commissions.

Since you make the trades on your own, you don't have to spend part of your profit on brokerage commission fees. Taking the time to learn forex trading opens one more investment door for you. As you continue to realize the importance of diversifying your investment portfolio, it may be a good idea to begin looking at what kinds of opportunities are available to you in foreign exchange trading. You may be surprised to see who else is capitalizing on this market and just how easy it is.

Take Bonus

Due to increasing demand on our enhanced live accounts, SigmaForex.com is extending its live accounts bonus program till 31 December 2008

Don not waste your chance!

And open your live account today!

SigmaForex.com is pleased to have you as a loyal client, and we would like to thank you for your continued support and interest in our trading programs.

As appreciation and gratitude we are offering you a chance to join our bonus program and have up to 5% bonus credit on your deposit.
All current and new clients are eligible to participate in this program. Qualifying clients earn up to 5% bonus credit on all new deposits received and credited to the account before the close of business day 31 December 2008.

The bonus credit to the account is effective when the new deposit is credited and is subject to the client opening at least 100 lots and closing the trades on or before the close of business day 31 December 2008.

If you have any questions, please feel free to contact our customers care department at

SigmaForex.com, in its sole discretion, will determine if a client's deposit and trading activity entitles it to retain the bonus credit.

SigmaForex | What is FOREX?

FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. It began back in the 1970’s with the introduction of free exchange rates and floating currencies. Thanks to the internet more and more people are able to reap the profits of the currency market with global Forex trading. This is a market that trades as over US$1 trillion a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.

From New Zealand, to Australia, to Asia, the Middle East, Europe and America, Forex Markets are open twenty-four hours a day. All the major markets, including London, New York, and Tokyo are part of it. Of course the United Kingdom and the United States account for over fifty percent of the turnover. When the time of day comes for all the major markets to overlap, trading can get pretty heavy.Besides the major markets there are also five main currencies that are a part of Foreign exchange Markets. These currencies include the United States Dollar (USD), the Euro (EUR), Japanese yen (JPY), British Pound (GBP) and the Swiss Franc (CHF). Each of these is traded in what are called pairs. In this particular market they are also called crosses, in what is known in the Forex Markets as the 'spot' market. A lot of this market is determined by supply and demand of certain major currencies and how they affect the current world market and its situations.

The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive.

Sigma devotes serious effort to serve the emerging retail segment of the Forex community. Its commitment to providing an excellent customer service, innovative currency trading technology, and dealing practices, establishes Sigma as a notable force that traders look forward to for an advanced Forex charting, Forex news, and fund safety.

Customers funds deposited with Sigma, are held and maintained separately in separated trading accounts at our partner banks. Sigma also provides its customers a variety of account plans, and services to choose from when creating or adjusting a profile.

The professionals at Sigma are dedicated to providing the guidance you need to accomplish your investment objectives.

Bollinger Bands with ADX | Sigma Forex Strategy

Bollinger Bands with ADX:

Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time.
Using ADX with Bollinger Bands over 20 days period of time give strong signals:

Signal to buy:
When the price below the lower band of Bollinger (20, 2) & DI+ over DI-, ADX line cross 20 level, ADX and DI+ rising and DI- falling.
Signal to buy:
When the price above the upper band of Bollinger (20, 2) & ADX line cross 20 levels and rising where DI+ falling and DI- rising.

A dedicated Partner Services team supports Sigma partners with a full range of account management services.
- Daily P&L, credits, commission allocation, etc.
- Account funding, transfers, allocations, etc.
- Customer on-boarding.

• Introducing Broker.

• Money Manager.

• White Label.

RSI, ADX with Parabolic SAR | Sigma Forex Strategy

RSI, ADX with Parabolic SAR

The three where developed by J Welles Wilder, using RSI, ADX and Parabolic SAR for average 14 days will show great signals in entering the orders & closing them.

Signal to buy:
1- When RSI cross 30 level and rising up
2- SAR dots below the price chart
3- DI+ over DI-, ADX line cross 20 level, ADX and DI+ rising and DI- falling.

Exit when SAR dots make a cross with the price chart & ADX moving below 30 from above while above +DI and –DI

Signal to sell:
1- When RSI cross 70 level & falling down
2- SAR dots over the price chart
3- ADX line cross 20 levels and rising where DI+ falling and DI- rising.
Exit when SAR dots make a cross with price chart & ADX moving below 30 from above
& above +DI and –DI

Sigma helps a various groups of partners around the world to enlarge their business and expand the full
potential of the Forex market.

Sigma’s services include:

• Introducing Brokers: Join our IB network and receive compensation for directing new clients to Sigma.
• Money Managers: Full service trading capabilities, plus dedicated account management, client fund
  administration and reporting.
• White Labels: White Label Program helps fitted firms set up an online presence in the Forex industry
  quickly and cost effectively.

MACD with RSI | Sigma Forex Strategy

MACD with RSI:

The MACD proves most effective in wide-swinging trading markets.
Crossovers: the basic MACD trading rule is to sell when the MACD falls below its signal line.
Average Convergence/Divergence rises above its signal line.
It is also popular to buy/sell when the MACD goes above/below zero.
Overbought/oversold conditions: The MACD is also useful as an overbought/oversold indicator.
When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels.
Divergence: An indication that an end to the current trend may be near occurs when the MACD diverges from the security. A bullish divergence occurs when the Moving Average Convergence/Divergence indicator is making new highs while prices fail to reach new highs.
A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. Both of these divergences are most significant when they occur at relatively overbought/oversold levels.
Zero Line Crossovers: A crossing of the MACD line up through zero (the centerline) is interpreted as bullish, or down through zero as bearish.
Some analysts choose to buy or sell when the MACD goes above or below zero.
The RSI indicator ranges in value from 0 to 100, with numbers above 70 indicating overbought conditions and fewer than 30 indicating oversold

Signals to buy:
When the MACD rises above the Signal line & above Zero
When the RSI rises above 30
Signal to sell:
When the MACD falls below the Signal line & below zero
When the RSI below 70

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In order to register for a practice account, please Download Sigma Forex Platform and open new account as illustrated below and you will have unlimited access to our Platform for the next 30-days.

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