Windsorpedia

The London Interbank Offered Rate, ‘LIBOR’, is the average interest rate estimated by leading banks in London which would be applied to them as a charge if borrowing from other banks. The rates are calculated for ten currencies and 15 borrowing periods ranging from overnight to one year and are fixed on a daily basis by the British Bankers Association.[+]

Fibonacci retracement is a very popular tool used by traders to help identify “support” and “resistance” levels. It is based on the idea that markets will retrace a predictable portion of a price movement, after which they continue the move in the original direction of the current trend. The appearance of retracements can be recognized as ordinary price volatility.[+]

A “Retracement” is a price reversal within the trend of a financial instrument and is usually temporary therefore it does not indicate an actual change in the trend. Investors sometimes wonder whether the price correction of a financial instrument (decrease or increase) implies a trend reversal or just a retracement.[+]

Dow Theory is a form of technical analysis developed by Charles Dow in the late 19th century from his analysis of market price action. Although it has been around for 100 years, its basic components still remain valid in today’s volatile and technology driven markets. The 6 basic tenets of the theory are:[+]

Candlesticks are the Japanese equivalent of bar charts that display the relationship between the opening price, closing price, highest price and lowest price of a financial instrument. The relationship between the opening and closing price is considered vital information and indicates either buying or selling pressure. [+]

The Purchasing Managers Index (“PMI”) is an indicator that is calculated based on various surveys that give insight into business conditions including employment, production, new orders, prices, supplier deliveries and inventory levels. [+]

The Producer Price Index (“PPI”) is a leading indicator of consumer inflation. PPI measures the change in the price of finished goods and services sold by producers. Investors watch the PPI closely because of its ability to predict the Consumer Price Index (“CPI”). [+]

An Expert Advisor, commonly known as ‘EA’ is a program which is written specifically for the MetaTrader Platform.   The EA automatically submits trades to the platform depending on the strategy and parameters set when programmed.  Programmers often test EAs on historical or current market data in order to determine if the system is profitable or not, using the strategy tester. [+]

The Commodity Channel Index, also known as ‘CCI’, is a technical analysis tool, created by Donald Lambert to measure the variation of a financial instrument from the statistical mean.  The calculation of the CCI is based on the difference between the price of a financial instrument and its moving average (average time span of 20 days divided by the mean deviation of the price).  The values usually result in a range between +100 to -100. [+]

The International Monetary Fund (IMF) was created in December 1945 during the Great Depression when 29 countries signed the ‘Articles of Agreement’. Its initial goal was to stabilize exchange rates and to help reconstruct the world’s international payment system after World War II. [+]