This strategy had a stellar run in Q3, so the bar has been set pretty high for Q4. Did it finish 2021 strong? Here are the numbers! If this is the first time you’re reading about this strategy, I suggest you take a look at the system rules before reading on. Also, this version makes use of an adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY. Note that I’m assuming 1% risk per position in crunching the percentage gains and losses. Here’s the tally for USD/JPY: This pair caught…
Author: forextrder
As a trader, understanding the price action retracement entry is essential for successful trading. It is one of the best trading strategies that can help you to maximize your profits while minimizing your losses. In this article, we will explore the six price action retracement entry types that every trader should know.IntroductionBefore diving into the various price action retracement entry types, it is important to understand what price action retracement is. Price action retracement refers to the temporary reversal of an established trend. It occurs when the price temporarily moves against the trend before continuing its original direction.1. Fibonacci Retracement…
UK Economy Contracts in July This morning, the spotlight was on the UK GDP report. Recent UK economic indicators, such as retail sales and services sector PMI numbers, indicated a deteriorating macroeconomic environment. The UK economy contracted by 0.5% in July versus 0.5% growth in June. Economists forecast the economy to contract by 0.2%. Significantly, the July GDP Report aligned with the BoE plans to leave interest rates unchanged. According to the Office for National Statistics, All three main sectors reported contractions. Service sector output declined by 0.5%, the main contributor to the fall in the headline GDP number. In…
Euro Vs US Dollar, Japanese Yen, British Pound – Outlook:EUR/USD looks deeply oversold as it tests strong support.EUR/GBP is attempting to break above a minor resistance; EUR/JPY looks heavy.What is the outlook and the key levels to watch in key Euro crosses? Recommended by Manish Jaradi How to Trade EUR/USD The euro looks deeply oversold and could be set to recoup some of the recent losses against some of its peers ahead of the US Federal Reserve’s interest rate decision. How sustainable the bounce turns out to be remains a question.Hawkish comments from several ECB officials are supporting the single…
Crude Oil, WTI, Brent, Saudi Arabia, China, Aramco, Fed, EIA, API, Backwardation – Talking PointsCrude oil jumped to print fresh highs again yesterdayWorries over China appear to be being ignored for nowThe oil market structure might be supportive of higher WTI Recommended by Daniel McCarthy Understanding the Core Fundamentals of Oil Trading Crude oil made another 10-month high overnight despite some reservations about the outlook for China’s economy and central banks’ tight monetary policy. Nonetheless, the underlying market structure appears intact for now.The Brent futures contract touched US$ 94.95 bbl and the WTI contract hit US$ 91.36 bbl.Yesterday at the…
The Power Trend MT4 Indicator is a versatile tool that operates based on the principles of trend-following and momentum. Source link
What is CFD trading? CFDs are derivative financial instruments. These ‘Contracts for Difference’ are priced according to the underlying financial instruments they represent. The broad categories of CFDs include stocks, commodities, indices, forex, and cryptocurrencies. Pretty much any financial instrument that can be traded in the market is available in this particular format. With CFD trading, you can speculate on the future price movements of assets. One of two outcomes is possible: The price of the asset can rise over time, or the price of the asset can fall over time. With CFD trading, you agree to exchange the difference in the…
Foreign exchange, commonly known as Forex, is a decentralized market where currencies are traded globally. The forex market has a turnover of over $6.6 trillion per day, making it the largest financial market globally. Successful trading requires the use of technical indicators, which are tools used to identify market trends and entry/exit points. In this article, we will be discussing the best Forex indicators for successful trading.IntroductionTrading in the forex market requires a lot of research and analysis. One of the most important aspects of trading is technical analysis, which involves the use of indicators to help identify market trends…
In this article, we will delve into the intricacies of the Renko Charts MT4 Indicator, exploring its features, benefits, and how it can empower traders Source link
EUR/USD AND EUR/JPY FORECASTEUR/USD will exhibit heightened sensitivity to the FOMC monetary policy announcement next weekThe Fed is expected to hold interest rates steady, but may signal one more hike for this year, creating a constructive backdrop for the U.S. dollarElsewhere, EUR/JPY appears to be carving out a falling wedge, a technical pattern that can have bullish implication for the underlying asset once confirmed Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter Most Read: Gold Prices Bounce Off Fibonacci Support, Attacks Cluster Resistance. What Now?EUR/USD OUTLOOKEUR/USD…
This wouldn’t be a Forex website if it didn’t have a good article about the classic pin bar pattern. Candlestick reversal signals are some of the most powerful and abundant signals used by price action traders – the most common of them being ‘The Pin Bar’. Pin bar trading is generally the backbone of most price action trading systems used in today’s Forex markets. I work with a different flavor of pin bar, which I call a Rejection candle – which provides more trading opportunities, and a more up to date, modernized view of the reversal pattern. First, let me talk about the…
Today we will be taking a look at the Average True Range indicator (ATR) and discuss why traders use it and why we’ve decided to keep it off the charts. What is the Average True Range? The idea behind average true range indicator has some merit to it. It generally comes bundled free with all the standard charting packages and a lot of professionals are using it as a tool to measure volatility. Originally it was created for the commodities market, which is subjected to much more volatile movements than Forex. Due to this increased volatility the commodities market often…
It’s that time again where we rip open another indicator and see how it ticks and try to convince you that they don’t work. It’s time to shake off the mentality that an indicator can show you reliable entry and exit signals. This time we have an indicator that is so boring it’s actually interesting. The Commodity Channel Index was developed by Donald Lambert and featured in the Commodities magazine back in 1980, yes it has been around for a while. Although this indicator was developed for the commodity markets, traders now use it in all financial instruments, including Forex trading.…
Welcome to another edition of the Indicator Autopsy where we do an autopsy on an indicator and then give it a funeral. We open it up and then examine what makes it tick before we show you how it is possible to trade without using the indicator. This week we are looking at the “Aroon” indicator. The Aroon was not built into the standard MT4 but may come included with more advanced charting software. However you can find a downloadable version of Aroon to include into your MT4 charting software if needed. So let’s see what makes its gears turn…
This week we are driving the scalpel into the Directional Movement Index indicator, generally known as DMI for short. In this article we are going to slice open the Directional Movement Index, find out what makes it so popular, how traders apply it to their market analysis and how we can achieve the same goal with indicator free price action trading. The DMI was invented by J. Welles Wilder, who also was the father of the popular ‘Relative Strength Index’ indicator. Wilder first published the concept of the DMI in “New Concepts in Technical Trading Systems”, ever since traders have…
Today we cut open the Average Directional Index, a well known tool in the indicator trading community. The Average Directional Index is abbreviated ADX for short. We are ripping open the Average Directional Index to discover what are the driving components inside this indicator that make it go. We will also discuss why traders may choose use it in their trading systems and how we can do better with price action trading techniques. But first, it’s important to know that the Average Directional Index is actually built on top of the DMI Indicator, so before we move on with the Average Directional…
Key Insights: Elon Musk’s deeper ties with the Dogecoin Foundation exposed. SEC v Ripple case heats up as the SEC responds to the Ripple opposition filing. The SEC v Coinbase case begins to draw greater interest as investors await the Court decision on the motion to dismiss. SEC v Ripple Appeal Update After the dust settled from the Ripple opposition filing to the SEC motion for interlocutory appeal, investors awaited the SEC’s Reply Memorandum. On Friday, the SEC issued their response to Ripple’s opposition filing. The SEC’s Reply Memorandum offers them the opportunity to rebut arguments presented in Ripple’s opposition…
GBP/USD Analysis and ChartsThe Bank of England is likely to raise rates by 25bps next Thursday.Will the BoE follow the trend of a ‘hike and hold’For all market-moving economic data and events, see the DailyFX Calendar Recommended by Nick Cawley How to Trade GBP/USD Next week’s Bank of England interest rate decision is likely to be a closer call than current market pricing suggests. Markets are looking for the BoE to raise interest rates by a quarter of a percent from 5.25% to 5.50%, a fresh 15-year high. It is unlikely that this decision will be unanimous as various voting…