On February 16th EURUSD found a top and since then has been trading strongly to the downside, especially from March highs when pair turned lower into a new five-wave impulsive reaction. An impulse is a five-wave development that indicates the direction of the trend and in our case this is to the bearish side. Now as we look closer, we can see price specifically in...
Cause and effect. That's all that you really need to know. Always ask yourself, 'which area started the move that caused a long term key level to break?' What is this important? Because it shows a clear supply and demand imbalance at that price. It shows that there is interest at this specific zone, at which, there is likely to be unfilled pending orders, as...
First of all, this is a long-term investing style, if you are not that kind of person then it’s not for you. Let’s say you can spare $500 a month. By allowing dollar cost averaging into just 3 index funds, $300 into one that holds total US stock market, $100 into once that hold foreign stock market and $100 into one that hold US bonds – you can say you hold...
Upper chart shows the US$Index, the lower one the EURUSD. Many divergences took place (extreme on one not confirmed on the other one). That's why 91.92 on the $Index is currently important. There is a potential bullish divergence with EURUSD having made a lower low recently, not confirmed yet on the Index. The breach of 91.92 would give a more durable tone to the...
What is the Dollar Index? The U.S. Dollar Index is a geometrically-averaged calculation of six currencies weighted against the U.S. dollar Which currencies are included in the U.S. Dollar Index? The U.S. Dollar Index contains six component currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. What is the Formula...
Learn with the Lex van Dam Trading Academy on TradingView! www.tradingview.com Featured in our Trading Club, 4th July Our checklist provides a systematic process that fellow hedge fund managers and traders employ to analyse markets, from which the biggest trading decisions are made. We use similar versions to analyse major currencies, stock markets and...
One of the strongest setups are the ones that are being formed by the dual time frame momentum. By using multiple time frames you will be able to create a high probability setup. Key rule is: Large/High time frame for trend and Small/Low time frame for your entry. Personally I mostly I like to hold short term positions, so I use the daily time frame for the trend...
Money makes money . It's an age-old saying, probably because it's generally true. But starting out as a retail trader can be daunting and at times, frustrating. It takes time to build up a sizable account big enough to allow us to take the leap from trading part time, to full time trading. Something that has kept me motivated over the years is an excel...
Hello world! I've been thinking about writing my story for a while now and finally decided to go ahead with! When I turned 19, it was the first time when my saving account has hit $100,000. The first thing that I did was to invest all my savings into stocks. Back in 2012-2013 I made about 20% profit + all the savings I had during the year. Before the oil...
DISCLAIMER: Hi everyone, I'm new to trading and this is just a log book for me on applying everything that I have learned and continue to learn as I go along. That being said, I do not advise you to base your trading on these "ideas". Last week I published a small "idea" for a quick scalp on the CADJPY. I noticed an uptrend that I didnt expect to go past a...
Friends, A with lessons and demonstrations offered over the past 24 hours (See $USDTRY, $NZDJPY, ... etc), here is another pair worth looking into, not so much from the perspective of a pending geometric completion, but as an example of developing a contingency plan. Here, we are contemplating a short (green scare representing a conservative, prudent...
What is the Bund? The Bund is the German 10-Year Treasury bill, also known as a government bond. A holder of a bond is a creditor, and the issuer of a bond is called a borrower or debtor. When the price of the Bund increases, the yield received on that bond decreases and vice versa. What is the relationship between Bund and EURUSD? Why is this relationship...
Here on the GBPUSD im getting closer to my short orders being filled and the butterfly pattern completing. stops for me go just above the 1.414 ext and target is the .382 retrace of the A to D-leg. Butterfly rules: 1= Atleast a .786 retrace of the X to A- leg but cannot break X. 2= Atleast a .382 retrace of the A to B-leg and can go past .382 just cannot break...
I hope it helps those like me who have trouble finding the balance in analyzing these ratios. This ratios are mostly suggested from tradeempowered professionals. (at least supposed)
USD/JPY - H1 - 2618 Trade Explained Having had a double top and now approaching a retracement back into the 61.8% Fib level, we can now look for reasons to short the USD. Unlike patterns we can't just place BUY or SELL orders in advanced. Once we have completed the rules of engagement below, we are looking for confluence within a certain area that all...
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It's not a trading idea, more of a a history lesson :-) Today while browsing the web I stumbled upon a well known story how Soros and his friends heavily shorted the Pound in 1992 and forced the government into surrender, pocketing more than a billion USD of gains. For the British Pound, this can largely be viewed as a black swan event - however, if we look at...