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Showing posts from August, 2024

How blockchain is changing the current banking landscape?

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  The banking industry plays the role of intermediary in the global economy by managing and coordinating the financial system through its internal bookkeeping system. Since that type of bookkeeping data is not made available to the general public, it only forces the public to trust the banking system and its aging infrastructure. Blockchain technology has the potential to disrupt the global money markets and even reshape the entire banking industry by outlawing middlemen, and can replace traditional banking with systems that are easily accessible, borderless and transparent without the need for trust. Blockchain has the advantage of enabling faster and less costly transactions, setting access to capital, establishing greater data security, and smoothing compliance by executing trust-less protocols through smart contracts. In addition, given the innovative nature of blockchain, entirely new ways of interacting between financial components have the potential to give rise to entirely new

A Concise Guide to the Parabolic Indicator

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  What is the Parabolic Indicator? Technical analyst J. Welles Wilder Jr. developed the parabolic Stop and Reverse (SAR) indicator in the late 1970s. He first mentioned these and other popular indicators such as the Relative Strength Indicator (RSI) in his book New Concepts in Technical Trading Systems. In fact, Wilder calls this method the “Parabolic Time/Price System” and the concept of SAR is as follows: “SAR” stands for ‘Stop and Reverse’ and is generally the point at which long positions exit and short positions enter (and vice versa). To this day, the system is commonly referred to as a “parabolic indicator” and is often used as a tool to identify market trends and potential reversal points. Although Wilder manually calculated many of the technical analysis (TA) indicators at the time, they are now incorporated into multi-digital trading systems and charting software. As a result, these techniques no longer require manual calculation and are relatively simple to use. How does it

What is Stochastic RSI?

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  The Stochastic Relative Strength Index, abbreviated as StochRSI, is a technical analysis indicator used to determine whether an asset is overbought or oversold, and also to determine the current market dynamics. As the name suggests, the StochRSI is a derivative of the Standard Relative Strength Index (RSI) and is therefore considered to be an index capable of measuring indices. It is an oscillator that fluctuates above and below the center line. StochRSI was originally described in a 1994 book entitled The NewTechnical Trader by Stanley Kroll and Tushar Chande. It is often used by stock traders and is also applicable to other trading environments such as the forex and cryptocurrency markets. How does StochRSI work? The StochRSI is generated from the standard RSI by applying the Stochastic Oscillator Generation formula.The generated result is a single numeric rating that oscillates up and down around the center line (0.5) over a value range of 0–1. However, a modified version of the

Explanation of Moving Averages

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  Technical analysis (TA) is not a new concept in the world of trading and investing. From traditional portfolios to cryptocurrencies such as Bitcoin and Ether, TA indicators are used with one simple goal in mind: to utilize the available data to make smarter decisions and get better results. As markets have become more complex, hundreds of different types of TA indicators have emerged over the past few decades, few of which have achieved the popularity and consistency of moving averages (MAs). While there are many different types of moving averages, their fundamental goal is to improve the clarity of trading charts by smoothing out the graphics to create an easily recognizable trend indicator. Because these moving averages rely on past data, they are recognized as lagging or trend following indicators. Nonetheless, these moving average indicators can still be effective in removing noise and help determine the direction of the market. Different types of moving averages The various type