unit platform presentation

Saxo Capital Markets (Australia) Pty Ltd

TRADING WORKSHOP TECHNICAL ANALYSIS AND SAXOTRADER PLATFORM

ABN: 32 110 128 286 AFSL: 280372

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DISCLAIMER

This presentation is provided by Saxo Capital Markets (Australia) Pty Ltd („Saxo Capital Markets‟) (ABN 32 110 128

286) (AFSL 280372) for your general information and education purposes only, and all reasonable efforts have been

made to ensure that any information and commentary are accurate and up-to-date. The presentation is updated

from time to time but may not always be up-to-date in every respect and no responsibility is accepted for any loss

arising from inaccurate or incomplete information, however caused. Saxo Capital Markets makes no warranty as to

the accuracy, completeness, merchantability or fitness for any purpose, of the information contained in the

presentation or as to the results obtained by any person from the use of any information or investment product

mentioned throughout this presentation. Saxo Capital Markets does not warrant that all technical aspects and

functions of its platforms are explained during this presentation.

None of the information contained herein constitutes an offer to purchase or sell a financial instrument, or to make

any investments. Saxo Capital Markets does not take into account your personal investment objectives or financial

situation and makes no representation and assumes no liability to the accuracy or completeness of the information

nor for any loss arising from any investment based on a recommendation, forecast or other information supplied by

any employee of Saxo Capital Markets, third party, or otherwise. All expressions of opinion are subject to change

without notice. Any opinions made may be personal to the author and may not reflect the opinions of Saxo Capital

Markets.

You should carefully consider whether trading in any financial product is appropriate for you based on your

financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly

greater risk than non-geared investments. As such, you could gain and lose large amounts of money. You may

sustain losses in excess of the monies you initially deposit to maintain any positions in leveraged products. Always

ensure that you fully understand these risks before trading.

Always refer to Saxo Capital Markets Combined Financial Services Guide & Product Disclosure Statement available

via www.saxomarkets.com.au. Please also consider whether acquiring or continuing to hold these products is

suitable for you, prior to opening an account.

http://www.saxomarkets.com.au/







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ABOUT SAXO BANK & SAXO CAPITAL MARKETS

A fully EU-regulated Danish investment bank

founded in 1992 by Kim Fournais and Lars Seier

Christensen.

Specialises in online trading and investment,

servicing retail clients, corporations and

financial institutions.

A leading presence in online trading due to

client service, competitive pricing and industry-

leading trading platforms.

Enables private investors and institutional

clients to trade FX, CFDs, ETFs, Stocks, Futures,

Options and other derivatives via multi-award

winning online trading platforms.

Close client relationships enable tailor-made

investment consultancy services.

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SAXO OFFICES AROUND THE WORLD

\\ PANAMA \\ BELGIUM \\ FRANCE \\ THE NETHERLANDS \\ SWITZERLAND \\ ITALY \\ CZECH REPUBLIC \\ UK \\ DENMARK \\ CYPRUS \\ RUSSIA \\ DUBAI

\\ GREECE \\ HONG KONG \\ JAPAN \\ SINGAPORE \\ URUGUAY \\ SPAIN \\ POLAND \\ SOUTH AFRICA \\ TURKEY \\ AUSTRALIA \\ INDIA

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Employees > 1300

Spoken Languages 40

Offices 25 countries

No. of FX trades per day 170,000

Daily average turnover 100 billion DKK equiv. 20 billion AUD

No. of countries with retail clients 190

No. of specialised and integrated trading platforms 3

SaxoTrader languages 25

Financial instruments more than 30,000

FACTS ABOUT SAXO BANK & SAXO CAPITAL MARKETS

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The High-Net-Worth Investor

Institutional investor or a client

with significant investable assets.

Requires expert personal service.

Expertise and a documented track

record are required.

Operates off-line and emphasises

the importance of dedicated

service and relationship

management.

The Self-directed Investor

Less risk appetite than the

Trader.

Needs access to investor

information and analysis before

investment decisions are taken.

Online and information

oriented.

Requires a full-service concept.

The Sophisticated Trader

An expert in one or more

financial products.

Online oriented and interested in

the broad product suite and tools

provided in the SaxoTrader.

Demanding client and requires

knowledgeable service.

The Self-directed Trader

Online oriented.

Interested in a broad financial

product suite that enables full

self-service.

Price sensitive.

Use communities and other

online discussion groups to assist

in determining the next trade to

make.

Sophisticated

Traders

High-Net-Worth Investors

Self-directed Traders

Self-directed

Investors

FACTS ABOUT SAXO BANK & SAXO CAPITAL MARKETS

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Trading Strategies: Technical Analysis vs

Fundamental Analysis


Attempts to understand and predict the intrinsic value of stocks (or a financial

instrument) based on an in-depth analysis of various economic, financial,

qualitative, and quantitative factors.

Observes numerous elements that affect stock prices such as sales, price to

earnings (P/E) ratio, profits, earnings per share (EPS), as well as macroeconomic

and industry specific factors.

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Trading Strategies: Technical Analysis vs


Technical Analysis

Is an analysis methodology for forecasting the direction of prices through the study

of past market data, primarily price, pattern and volume.

Technical analysis doesn‟t consider fundamental factors such as supply and demand

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Trading Strategies: Identifying a trend

Uptrend:

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Downtrend:

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Long term uptrend:

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When a trend is broken:

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When a trend is broken:

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Horizontal Support & Resistance

During 2006, the EUR/USD bounced back and forth between a support level at

about 1.2500 and a resistance level at about 1.2900

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Diagonal Support & Resistance

Diagonal support and resistance levels can be more difficult to identify when you

are just getting started. However, diagonal support and resistance levels are

usually the most important levels when you are analyzing a currency pair that is

trending. Remember, you want to find trending currency pairs because it is much

easier to make profitable trades when a currency pair is trending

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Price Patterns

Price patterns are chart formations that provide insight into what forex traders are

thinking and feeling at various price levels. Learning to recognize various price

patterns gives you an advantage over traders who a re only using fundamentals or

technical indicators. Imagine having the ability to precisely identify trade entry

points as a currency pair breaks out and the ability to accurately project how far a

currency pair is going to move once it has broken out and started moving. Price

patterns give you this ability.

Price patterns are divided into the following two categories:

1. Continuation Patterns; &

2. Reversal Patterns

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Continuation Patterns

Forex traders continually ask themselves the question, “Can this trend continue?”.

Deciding whether to enter a new trade in the middle of a trend or whether to exit

the trade you are currently in and take your profits is difficult. You can never know

if a currency pair is going to turn around and start moving in the opposite

direction.

Continuation patterns give you advanced warning when a currency pair is likely to

resume its trend after a short consolidation period and how far the currency pair is

likely to move in that direction. Of course, continuation patterns are not infallible,

but they do put the odds of success in your favour

There are 4 major price continuation patterns:

1. Pennants

2. Flags

3. Wedges

4. Triangles

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Continuation Patterns: Pennants

Pennants are continuation patterns that form as the price of a currency pair moves

into a tighter and tighter consolidation range. Pennants can be either bullish or

bearish, depending on what the trend was before the pennant began to form. If a

currency pair was in an up trend before the pennant began to form, it is a bullish

continuation pattern. If a currency pair was in a down trend before the pennant

began to form, it is a bearish continuation pattern. Pennants usually form over

shorter periods of time.

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Continuation Patterns: Pennants

Pennants all have the following five characteristics:

Resistance level (A) — down - trending level of resistance that is converging with

the support level

Support level (B) — up - trending level of support that is converging with the

resistance level

Flag pole (C) — the trend preceding the formation of the pennant. The flag pole

spans the distance from the beginning of the trend to the highest point of the

pennant (bullish pennant), or the flag pole spans the distance from the beginning

of the trend to the lowest point of the pennant (bearish pennant).

Breakout point (D) — the point at which the currency pair breaks up above the

down - trending level of resistance (bullish pennant), or the point at which the

currency pair breaks down below the up - trending level of support (bearish

pennant).

Price projection (E) — the price to which the currency pair will most likely fall

after it has broken out of the pennant formation (bearish pennant), or the price to

which the currency pair will most likely r

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Continuation Patterns: Triangles

Triangles are continuation patterns that form as the price of a currency pair hits a

flat level of support or resistance and begins moving into a tighter and tighter

consolidation range. Triangles can be either bullish or bearish, depending on what

the trend was before the wedge began to form. If a currency pair was in an up

trend before the triangle began to form, it is a bullish continuation pattern. If a

currency pair was in a down trend before the triangle began to form, it is a bearish

continuation pat tern. Triangles usually form over longer periods of time..

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Reversal Patterns

Forex traders continually ask themselves the question, “Can the trend continue?”.

Deciding whether a trend is over and if it is time to trade against the previous

trend is difficult. You can never know if a currency pair is going to turn around and

start moving in the opposite direction.

Reversal patterns give you advanced warning when a currency pair is likely to turn

around and begin a new trend and how far the currency pair is likely to move in

the opposite direction. Of course, reversal patterns are not infallible, but they do

put the odds of success in your favour

There are 4 major price reversal patterns:

1. Double tops / bottoms

2. Triple tops / bottoms

3. Head-and-shoulder top/bottoms

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Reversal Patterns: Double Tops & Bottoms / Triple Tops & Bottoms

Double tops/bottoms are reversal patterns that form as the price of a currency pair

hits a support or resistance level two times before the currency pair turns around

and moves in the opposite direction . Double tops are bearish reversal patterns and

double bottoms are bullish reversal patterns. If a currency pair is in an up trend, it

will form a double top. If a currency pair is in a down trend, it will form a double

bottom. Double tops/bottoms usually form over longer periods of time

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Trading Strategies: Fibonacci

Fibonacci

Fibonacci analysis is the study of identifying potential support and resistance levels

in the future based on past price trends and reversals. Fibonacci analysis is based

on the mathematical discoveries of Leonardo Pisano — also known as Fibonacci. He

is credited with discovering a sequence of numbers that now bears his name: the

Fibonacci sequence. The Fibonacci sequence is a series of numbers that progresses

as follows, 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55.... To arrive at each subsequent

number in the sequence, you simply sum the two preceding numbers in the

sequence. For example, to find the number that follows 55 in the sequence, you

add 55 + 34 (the two preceding numbers in the sequence). The sum of 55 + 34 is

89. This is the next number in the sequence. What intrigued Fibonacci about this

sequence was not the numbers themselves but rather the relationships among the

numbers, or the ratios created by various numbers in the sequence. Perhaps the

most important ratio is 1.618— also known as the golden ratio, or golden mean.

The golden ratio and the other ratios that exist within the Fibonacci sequence

represent the natural ebb and flow of life. They also apply to the natural ebb and

flow of the forex market.

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Fibonacci retracement

When a currency pair reverses trend, forex traders naturally want to know how far

the pair is most likely to move in its new direction. Fibonacci retracement levels

can help. Certain Fibonacci ratios are useful when you are trying to determine how

far a currency pair is going to retrace, or move against, a previous trend. The

ratios you will be using in your forex trading will help you find the following

retracement levels:

61.8 percent — Thislevel is found by dividing a number in the Fibonacci

sequence by the number immediately following it in the sequence (55 ÷ 89

= 61.8%).

38.2 percent — This level is found by dividing a number in the Fibonacci

sequence by the second number following it in t he sequence (34 ÷ 89 =

38.2%).

23.6 percent — This level is found by dividing a number in the Fibonacci

sequence by the third number following it in the sequence (21 ÷ 89 = 23.6%)

You will also use three other levels in your retracement analysis.

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While the following levels are not calculated using numbers within the Fibonacci

sequence, they are based on the Fibonacci levels above:

50 percent — This level is determined by finding the middle between 61.8

percent and 38.2 percent ((61.8% + 38.2%) ÷ 2 = 50%).

76.4 percent — This level is determined by finding the distance from 38.2

percent and 23.6 percent (38.2% - 23.6% = 14.6%) and adding it to 61.8

percent (61.8% + 14.6% = 76.4%).

100 percent — This level is determined simply by finding where the previous

trend began Determining all six Fibonacci retracement levels provides you

with potential support and resistance levels you can use in your forex trading

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Trading Strategies: Examples

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Saxo Capital Markets is one of the few

online brokers who offers access to

more than 23,000 different financial

instruments.

SAXOTRADER

SAXOWEBTRADER

SAXOTRADER APPS

MULTI-ASSET PLATFORM

MULTI-PRODUCT OFFERING

Saxo Capital Markets is a specialised and

integrated trading platforms.

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Market Orders

Limit Orders

Stop Orders/Stop Limit Orders

Stop if Bid / Stop if Offered

Trailing Stop

All offered with IF DONE and OCO capabilities

ORDER TYPES

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QUESTIONS

THANK YOU &

GOOD LUCK WITH THE TRADING GAME !!

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