Sigma Forex Technical Analysis

Technical Analysis

Technical analysis is the study of market action, primarily through the use the movement of charts for the purpose of forecasting future price trends movement.
Technicians use technical indicators, chart patterns & technical strategies to forecast the next movement of the chart & compare it with the previous the run the trade in that base of comparison.

Types Of Charts

What are charts?

A chart or graph is a type of information graphic or graphic organizer that represents tabular numeric data and/or functions that it is a graph of the price movements of a given security over a given time period, sometimes along with volume data.
Charts are often used to make it easier to understand large quantities of data and the relationship between different parts of the data.
Certain types of charts are more useful for presenting a given data set than others.
The charts are one of the main interests at Sigma.
Charts are a statistically noticeably technical analysis tool for a trader that wants to carry out successful trading.
Currency charts bring clearly a single period of time and that period could range from one minute to one month to several years.
Charts are the main tool that technical analysts use in order to plot data and predict prices.

According to the above chart,
Y axis represents prices
X axis represent period which can be customized within that range: M1, M5, M15, M30, H1, H4, D1, W1 and MN where M is minuets, H is hours, D is days, W is week and MN is months.
The fluctuations in the chart based on the demand & supply in the market & for that the technical analysis made to predict the next events by using different indicators.
Most of traders use daily charts & intraday date to forecast short-term price movements.
Most of investors use weekly & monthly charts to forecast long-term price movements.
Others might use combination between short-term & long-term charts.

What are support, resistance & trend?

Support: is the price level at which demand is strong enough to prevent the price from declining further.
Resistance: is the price level at which selling is strong enough to prevent the price from rising further.
- There is no support without resistance & there is no fixed support or fixed resistance in which each support can be a resistance next period by breaking prices below a support level, the broken support level can turn into resistance & Visa versa.
- It’s very difficult to predict the next support or next resistance

Trend: A trend line is a straight line that connects two or more price points and then extends into the future to act as line support or resistance. There are three cases
Uptrend: is a connection between two or more low prices in which the second price must be higher tan the first price (It acts as support line).
Downtrend: Is a connection between two or more high prices in which the second must be lower than the first price (It act as resistance line).

What are types of charts?
There are three types of charts in Sigma platform:
1) Bar Chart: It’s a style of chart used by some technical analysts where the top of the vertical line indicates the highest price a security traded at during the day, and the bottom represents the lowest price. The closing price is displayed on the right side of the bar, and the opening price is shown on the left side of the bar. A single bar like the one below represents one day of trading.

2) Line chart: It’s a style of charts created by connecting series of points together in a line.
It’s the most popular chart but has less use by the technical analytics.

This chart does not show what happened during the time unit selected by the viewer, only closing rates for such time intervals. The line chart is a simple tool for setting support and resistance levels.

3) Candlestick Chart: It’s the oldest types of charts developed in the 18th century by legendary Japanese rice trader Homma Munehisa, this style of charting is very popular due to the level of ease in reading and understanding the graphs.
Each candlestick includes the open, high, low, and close, of the timeframe, and also shows the direction (upward or downward), and the range of the timeframe.
Below are examples of candlesticks and a definition for each candlestick component:

Practice Competition with SigmaForex

Practice Competition

Sigma Forex Ultimate Forex Monthly Champion

Interested clients who wish to take part in this competition shall send a request via email at

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Attached with the following information:

• Full name
• Phone number
• Current valid passport or government issued photo ID

It begins at the beginning of each month.

After recieving your request we will provide you with further details and with your Practice account login information which will be used in the trading contest.

Also you have to download Sigma Forex Platform to login with the account number and password after receiving them.

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In each contest you will recieve $ 5'000 as balance with 100:1 as leverage

There will be 5 prizes awarded each contest for the participants that managed at least 30 Standard lots:

For More Details about contest rules contact us at

If at any time you need assistance please click on the Live Chat button on the right hand side and our customer support staff will help you through the process.

Sigma Services

As a professional online trading service Sigma strives to give an eminent beyond comparison of professional and individualized trading services, Sigma also provides several facilities for all kinds of traders.

Sigma helps private and institutional clients achieve their trading goals by offering an inclusive forex trading package, along with the state-of-art trading platform, real-time news and wireless access. We relegate to meeting and exceeding our customers' expectations with the utmost professionalism and integrity.

Sigma provides appropriate services satisfying the needs of all business partners’ specified requirements. A client's profit is our success and a client's loss is a significant call of action for us, we consider every client as a special case and a partner.

Sigma's Customer Support is our business core, as we provide 24/7 customer support. We keep in touch with all our clients to make sure that we are on the right pass.

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Forex Vs. Options | SigmaForex

Forex Vs. Options

Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security. For example, buying a call option provides the right to buy a specified quantity of a security at a set strike price at some time on or before expiration, while buying a put option provides the right to sell. Upon the option holder's choice to exercise the option, the party who sold, or wrote, the option must fulfill the terms of the contract.

Types of options:

Exchange traded options (also called "listed options") is a class of exchange traded derivatives. Exchange traded options have standardized contracts, and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Since the contracts are standardized, accurate pricing models are often available. Exchange traded options include:

1. Stock Options.
2. Commodity Options.
3. Bond options and other interest rate options.
4. Index (equity) Options.
5. Options on futures contracts.

Over-the-counter, or OTC options are traded between two private parties, and are not listed on an exchange. The terms of an OTC option are unrestricted and may be individually tailored to meet any business need. In general, at least one of the counterparties to an OTC option is a well-capitalized institution. Option types commonly traded over the counter include:

1) Interest rate options.
2) Currency cross rate options.
3) Options on swaps or swaptions.

Employee stock options are issued by a company to its employees as compensation.

Forex	Options
Largest and most liquid market in the world	Liquidity depends on underlying asset & expiry date
24-hour trading action for 5.5 days a week	Not 24-hour. Varying trading hours based on the exchanges
Easier to calculate stop beforehand	Difficult and unreliable to place stops on underlying asset
Minimum slippage and order errors	More room for slippage due to lack of liquidity
100:1 leverage on standard-sized accounts	Leverage depends on the type of option transaction you want to engage in. Selling Naked Calls or Puts generally requires a huge amount of margin
No commissions	Commissions on every trade
Most liquid market in the world	Limited liquidy
Limited risk, most forex brokers will automatically close your positions when your account balance goes to zero	It is possible to have a negative balance if you write an option
Instant executions, all-electronic market	Delayed fills possible

Money Manager

Elevate the quality of your trading, Money managers trading pooled or individual client funds benefit from Sigma’s trading and administrative tools and services.

With preferential rating access to Sigma’s research staff, sophisticated trading platform and reporting tools, Sigma’s money manager solution is one of the most competitive in the marketplace.

Sigma provides a dedicated team of account management specialists to provide ongoing back-office support, and help reduce your administrative responsibilities.

Highly developed trading platform

Our trading platform feature quality execution capabilities as well as advanced and easy-to-use order entry and position management tools, all in a secure friendly environment. A full suite of decision support tools, from charting to research, news and more, are also available to clients all for free.

Characteristic tools

Our proprietary tool offers money managers a comprehensive and efficient way to manage pooled customer funds and track portfolio performance. Accessible online, the system automatically journals percentages of your transactions from your Master account into your client's sub accounts at the close of each trade.

We also support the needs of money managers who wish to execute trades and place orders on a per account basis. Reporting capabilities are available directly within the application, as well as real-time margin and P&L.

Back-office support

Our Partner Services team is dedicated to providing full account management support to our money managers and your clients. Our customer support is 24 hours, customers may fund around the clock. Sigma’s Partner Services team is dedicated to providing Outstanding Compensation and full account management support.

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The Basic Theories with SigmaForex

• The Basic Theories

Purchasing Power Parity

The PPP theory states that exchange rates are determined by the relative prices of similar baskets of goods. Changes in inflation rates are expected to be offset by equal but opposite changes in the exchange rate. Take the classic example of hamburgers. If the burger costs $2.00 in the US and £1.00 in the UK, then according to PPP, the £-$ exchange rate must be 2 dollars per one British pound.

If the prevailing market exchange rate is $1.7 per British pound, then the pound is said to be undervalued and the dollar overvalued. The theory then postulates that the two currencies will eventually move towards the 2:1 relation.

PPP's major weakness is that it assumes goods are easily tradable, with no costs to trade such as tariffs, quotas or taxes. Another weakness is that it applies only for goods and ignores services, where room for differences in value is significant. Furthermore, there are several factors besides inflation and interest rate differentials impacting exchange rates, such as economic releases/reports, asset markets and political developments. There was little empirical evidence of the effectiveness of PPP prior to the 1990s. Thereafter, PPP was seen to have worked only in the long term (3-5 years) when prices eventually correct towards parity.

• Stop Order Execution

Volatile market conditions can result in prices gapping, which may prevent the execution of stop orders (sell stop, buy stop, stop loss) at the price you initially requested. However, our dealers strive to execute all stop orders at the price, or failing that, at the best attainable rate the market allows.

• Lot Types

Sigma Forex has generated an ultimate account type that allow you to trade Standard, Mini and Micro lot in the same account which is Sigma Account to make it more simple and easy for traders.

• Multi Currency Denomination

Sigma offers the ability to set-up accounts denominated in the following currencies:

• United States dollar (USD)
• Euro (EUR)
• Great Britain pound (GBP)
• Australian dollar (AUD)
• Swiss Frank (CHF)

There is no minimum deposit for opening an account, in order to review the spreads, pip value & margin requirement choose the required pair, leverage & the lot type.