Category: Forex Videos

Forex Video Section

This section delivers educational videos on Forex and cryptocurrency topics to the highest standard.

we will cover one trading lesson per video starting with basic themes such as charting to more advanced and critical themes.

Money management and position sizing, psychology, and trading system design are among the topics covered.

Forex Videos

Fundamental Analysis For Novices Markit Manufacturing PMI!

Post author By Keiran
Post date 10 June, 2020
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https://youtu.be/lZ9hYU72_RE

Fundamental Analysis For Novices Markit Manufacturing PMI

Welcome to the educational video on fundamental analysis, and this one is about, Markit manufacturing PMI.
The PMI element is the Purchasing Managers’ Index and is compiled by IHS Markit for over 40 major economies throughout the world. The information is updated month on month and released subject to an embargo at certain times, depending on the country.

And so if you are keeping an eye on your economic calendar, you would expect to see something like this for Markit Manufacturing PMI’s.

So the first one due on Monday, June 1st, is Spain.

The bar on this type of calendar shows the impact the news release will have in the financial markets, pertaining to the economic conditions of the country and as a part of the Eurozone, where Spain shares the common currency.

And then we have the previous month’s release, which was 30.8, the consensus by market analysts for this month’s figure, which is 38.1.

And when the figure is released at 7:15 a.m in Europe, the actual number will appear here.
The PMI, which stands for the purchasing managers index, is a snapshot of business conditions in the manufacturing sector for each country. Manufacturing is a huge component of a country’s gross domestic product, and therefore provides a picture of the overall economic conditions and financial health of a nation, in this case, Spain.

Generally speaking, a result above 50 signals bullish sentiment for the Euro, whereas a result below 50 is seen as bearish. Obviously, Spain is only one of 19 countries that use the Euro and one of 27 Eurozone member states, and because its economy is small in relation to some of the other country’s it has a lower impact.

Here we can see that the impact bar is higher for Germany because it has a larger economy than Spain, and therefore its relevance is greater because Germany contributes more to the Eurozone coffers.

Similarly, the impact for Great Britain is of high importance.

And when it comes to the United States, the PMI is very widely anticipated because it has a huge impact on the American economy and also because the US Dollar is the dominant currency in the world.
In the United States, this data is collated by a company called the Institute for Supply Management, or ISM and where they measure the manufacturing activity of more than 300 manufacturing firms across the USA, and where the monthly report, which is also referred to as the ISM Manufacturing Index, is announced on the first business day of each month, in line with most other countries, and where a reading below 50 suggests a contraction in manufacturing and where a number above 50 suggests expansion and where a reading of 50 means no change.

So how to trade the market manufacturing PMI and the ISM manufacturing index. Remember, we are looking for numbers above or below 50 and where above 50 is bullish and good for an economy, in which case you might expect to see a country’s currency exchange rate getting stronger. Conversely, numbers below 50 indicate a contraction in manufacturing for that country, and therefore this is a bearish number, and you might expect to see that country’s currency exchange rate move lower.

You will very likely find extreme volatility when the PMI numbers are released and are completely out of line with the market consensus. Markets do not like shocks, and when they occur, it creates market volatility.

Tags Education, Forex, Forex pmi, Fundamental Analysis, trading

Forex Videos

Forex Fundamentals! How Unemployment Rate Affects The Market!

Post author By Keiran
Post date 5 June, 2020
No Comments on Forex Fundamentals! How Unemployment Rate Affects The Market!

https://youtu.be/6fEV40VF-j0

How Unemployment Rate Affects the FOREX Market

Though many have heard of the unemployment rate, only a few actually know how it all works and why it’s important for forex and currency traders to know all about it. The unemployment rate is incredibly important, as it reveals the current state of a nation’s economy.

What Is the Unemployment Rate?

The unemployment rate represents the percentage of people without a job in a given country’s workforce. The people accounted for here are still willing as well as able to work at a job, even though they are unable to find employment.
The unemployment rate a lagging indicator when it comes to the economy, meaning that it changes after the economic state of a given country has already changed. However, the unemployment rate doesn’t have to be a lagging indicator when translated to the FOREX markets. News and reports of a change in the unemployment rate could cause market volatility as it indicates the state of the economy.

Unemployment Rates and the Forex Market

The unemployment rate of a country shouldn’t be ignored by the traders. There are two common examples of how the unemployment rate can be looked at and what it means for the currency prices.

Rate is higher than predicted

If the unemployment rate comes out to be higher than the predictions, the government will have to stimulate the depressed economy by creating new jobs. Let’s use the US as an example. In this case, the Federal Reserve will have to lower the federal funds rate. If this fails in stimulating the economy, then the Federal Government will have to employ fiscal policy measures, such as hiring people for public works projects or stimulating demand with unemployment benefits.
When the unemployment rate rises, it negatively impacts the USD, most likely triggering a bearish turn.

Rate is lower than predicted

When the unemployment rate is lower than expected, the economy will encounter more workers that earn income as well as more consumption expenditure. This could lead to inflation, causing interest rates to rise. A drop in the unemployment rate is a positive occurrence for both the economy and the FOREX market, as the currency will most likely increase in value.

Tags Forex, Fundamental Analysis, Unemployment Rate

Forex Videos

Forex – Predicting Interest Rate Changes For Maximising Profit!

Post author By Keiran
Post date 4 June, 2020
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https://youtu.be/fc6avVXTjhY

Predicting Interest Rate Changes to Improve FOREX Profits

One of the biggest factors influencing the foreign exchange market is interest rate changes that are made by some of the eight global central banks.
These changes are acting as indirect responses to other economic indicators, and they can potentially move the market sharply and immediately. As surprise rate changes almost always have a great impact on traders, understanding how to react to or even predict these volatile moves can lead to higher profits.

How Rates Are Calculated

Each central bank’s board of directors has control over the monetary policy of its country. This includes control over the short-term interest rate at which banks borrow from one another. Central banks often hike rates in order to curb their inflation, while they cut rates to encourage lending as well as to inject money into the economy.

Typically, the Central bank will decide what to do by examining the most relevant economic indicators; such as:

The Consumer Price Index
Consumer spending
Employment levels
Housing market
Subprime market

Predicting Central Bank interest Rates

A trader can estimate the rate change range by examining these indicators themselves. Typically, as the aforementioned indicators improve, the rates will need to be raised or (if the change is small) to stay at the same level. On the other hand, any significant drops in these indicators should be a sign of a possible rate cut to encourage borrowing.

Major announcements are another way central bank leaders can let people know how the rates will change. Whenever a board of directors from any central bank is scheduled to talk publicly, the news on how the particular Central bank views the current economic position will be revealed.

Traders can also estimate rates by averaging forecasts made by financial institutions, though this estimate would be second-hand and, therefore, less reliable.

Surprise Rate Changes

No matter how calculated a trader is, Central banks can, without any prior notice, deliver a surprise rate change. However, this may not be such a bad thing as the effect on the market is sharp, immediate, and most notably:

PREDICTABLE.
If there is a rate hike, the currency will almost always appreciate. Traders should act quickly and buy the currency as soon as possible. On the other hand, interest rate cuts indicate a currency going down in price, and traders should sell or short. Trading trend reversals is also a viable strategy, as the market will most likely overextend while performing a sudden and intense move.

Tags Forex, Fundamental Analysis, Interest Rates, trading

Forex Videos

Gold VS Fiat currencies – What You Should Be Doing!

Post author By Keiran
Post date 4 June, 2020
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https://youtu.be/Cqni5scYfvM

Gold vs. Fiat currencies – What to do?

Gold markets have rallied quite a bit during the trading session on Friday. The rally was most likely caused by people that want to preserve their holdings since they find the situation around the world concerning. On top of that, central banks are running their printing presses at full tilt, bringing even more uncertainty to the market. Ultimately, everything suggests that we should see fiat currencies slowly get devalued.
The gold market, on the other hand, is the natural place to go looking to protect your holdings from value drops.

Looking at the chart, even though gold looks quite bullish, the resistance between the $1740 level and the $1760 level might pose a problem. If gold can break above this area, then the market is most likely going towards the $1800 level without many stops. Ultimately, the $1800 level itself is significant resistance, so breaking above it and establishing support would mean much for the future of gold. With all of the various concerns all around the world when it comes to global trade, the pandemic as well as constant fiat printing, it is hard to imagine a scenario where gold doesn’t rise over the long term against the US dollar.

The fiat currency market will have to seek equilibrium and find what the right price is for all the pairs as countries dealt with the global problems differently. This, in turn, affected their economies and currencies differently. Fundamental analysis should be at the forefront of FOREX analysis at the moment.

Tags fiat, Forex, Gold

Forex Videos

Using CPI Data To Increase Your Win Ratio In Forex

Post author By Keiran
Post date 1 June, 2020
No Comments on Using CPI Data To Increase Your Win Ratio In Forex

https://youtu.be/vfeoi_PZPYk

Fundamental Analysis For Novices Consumer Price Index (CPI)

Consumer Price Index (CPI) measures the changes in the price of goods and services
purchased by consumers.
Each month the data is released into the financial market by the various economic and not for profit organizations. In Germany, for example, the information is provided by the Federal Statistical Office, Germany.
So what is the Consumer Price Index, which is also referred to as CPI?

This is what you would expect to see on your calendar. The section highlighted is for the Germany CPI figure. The data is the average price measurement change for all goods and services which were bought by households in any given country, in this case, Germany, for consumption purposes.
CPI is considered to be very important because it is the main indicator to measure inflation and fluctuations in buying trends. The higher the unit measurement reading, the more it is considered positive (or Bullish) for the Euro, and if the unit measurement is a low reading, it is considered negative (or bearish).

Here we can see that the data has been added after the embargo release.

We simply follow the corresponding data to the event log at the top of the page, and we can see the actual released number, in this case, 0.6%, and do the same across the data field to see what the previous release was and also what the market expected. When the released data falls out of line with market expectations, you might find extra volatility kicking in to the Euro currency as traders adjust their trading books accordingly.

In the case of the Eurozone of which Germany is a member state, the information is also added to the Eurozone CPI in which is called the Harmonized Index for Consumer Price Index, or HICP.

This information is collated by the Statistics Office of the European Union and is released at the same time as one of the member states’ data but after all member states have reported.
The cumulative effect or the HIPC is then used by the governing council of the Eurozone area to define and assess overall price stability as a whole. When trading this data, look for inconsistencies in the consensus and the actual figure. An unexpected lower number would be seen as bad for the Euro while the opposite applies for a higher than expected number.

Tags CPI, Education, Forex, Fundamental Analysis, trading

Forex Videos

Forex & Gross Domestic Product – How To Trade Fundamentals!

Post author By Keiran
Post date 29 May, 2020
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https://youtu.be/wA6eHzLN678

Fundamental Analysis For Novices Gross Domestic Product

Gross Domestic Product, which is commonly referred to as GDP, is one of the most important features of fundamental analysis.
New traders often skip fundamental analysis, preferring to learn a few technical analysis setups and hoping they will be able to ‘wing it’ and make money that way.

However, fundamental analysis is just as important, if not more so, than being able to learn to trade simply by looking at setups on a chart. At the very least, the two go hand in hand, and it is thoroughly recommended that new traders learn both sides to trading.

So what is Gross Domestic Product or GDP, and how should it be applied to trading currency pairs within the forex arena?
Quite simply, GDP is a measurement of a country’s financial health. It usually fluctuates from month to month and is updated by way of released economic data each month for market analysts and traders to view and where the results will likely affect how its currency exchange rate moves up and down against other currencies in the Forex market. This will, therefore, potentially impact on your trades, with regard to opened trades or those in the process of being opened. And so it is imperative that you learn about the GDP for both currencies – remember they are always traded in pairs – that you are trading, or thinking of trading. This also means that you must be aware of when these monthly data releases are happening.

What aspects make up GDP?

You will find GDP release information on your economic calendar, and it will provide you with the anticipated levels of GDP and show you the importance. So here we can see that German GDP YOY – or year on year came in at – 1.9% and had a market level of importance at medium but where the quarter on quarter figure came in at -2.2% and was considered as very important as it shows how Germany is coping during the pandemic.

GDP is updated then compared month by month, then quarterly and annually. It is based on the monetary value of goods which are produced and sold and services which are provided. Some of these goods and services will be sold within the country, and some will be exported.
But the consumption of these is referred to as consumer spending. GDP also takes into account investment into the country and government spending. It then takes the total value of all exports and deducts imports, and what is left is known as real GDP. This figure can then be further divided on a per capita basis or per individual, and all of this gives an overall picture of the financial health of a nation.

How to trade with GDP data

Essentially, if a country’s monthly GDP data is released as per market expectations, the fundamentals

should already be in the price action. That is to say, there should not be any shock factor, and price action movement should, theoretically, continue with technical analysis.
If the GDP comes in weaker than expected, it would be bad for an economy, and therefore, the price action of that country’s currency should weaken against any counter currency being traded.

If the GDP is better than the market forecast, the country’s currency should strengthen.
Ironically, we are in the most difficult of times currently, with a lot of countries’ GDP being decimated by the Coronavirus. So how does this impact on a country’s currency? At the moment, investors are trying to find ways of looking at how governments are handling the crisis and what level of money they are leveling at their country’s to prop them up and help individuals and companies to stave off bankruptcy. And therefore, this form of fundamental analysis has never been so fraught with danger in regard to using it to trade currencies. It is probably better to stay on the sidelines during these types of news releases until such time as some normality has returned to the world. But, GDP – especially if it comes in at an unexpected level – will always be a market mover, so be warned.

Tags Forex, Fundamental Analysis, GDP, trading

Forex Videos

The Forex BCI Indicator! Step Up Your Trade Game!

Post author By Keiran
Post date 28 May, 2020
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https://youtu.be/ojFfu-y8dO8

Fundamental Analysis For Novices Business Climate Indicator

Welcome to the educational video where in this session, we will be looking at Fundamental Analysis For Novices!

The Business Climate Indicator or BCI

So what is it, and how does it affect currency trading? Trading is a multifaceted and multi-layered business machine. Now just because the majority of new forex traders hardly ever bother with fundamental analysis, which, incidentally, is why over 70% fail, in institutional trading, traders will look closely at all fundamental indicators, of which the BCI is an important one. These institutions also have professional economists and analysts looking at this kind of data and relaying their findings to the trading desk, who will act on the views of the analysts. In essence, you are up against these teams when you trade, so it is better to be knowledgeable on such subjects in order to more fully understand price action.

Manufacturing is the process of taking raw materials, substances, and components and turning these into finished products that can be sold in the marketplace, both at home and abroad. There are many ways that analysts look at the health of a nation, but the BCI is a key barometer. It looks at the development conditions of the manufacturing sector.
In the Euro area, a sample of 23 thousand companies representing all sectors within manufacturing, including automotive vehicles and parts, planes, trains, transportation equipment, machinery, electrical sector, chemicals. Energy, construction, food industry, textiles, and consumer goods. Millions of people are employed in this sector.
Each month respondents are asked, during a brief prearranged phone call, five key questions: the number of new orders, for domestic and export consumption, production volumes, their inventories for the last three months, and their outlook for production volumes. The respondents are also asked if the situation has improved, deteriorated, or remained the same.
The results are converted into a unit measurement and released to the market at set times, subject to an embargo.

In the combined Eurozone BCI, numbers above 0 suggest increased confidence in near future business performance, and numbers below 0 indicate pessimism towards future performance. The minus numbers in this chart reflect the devastating effect that the coronavirus pandemic has had on manufacturing recently.
So, how to use this information when trading currencies. Quite simply, the worse the number, the worse the economic outlook for a country. However, keep an eye out for the release of this information in your economic calendar. And note, that the eurozone comprises 27 countries all releasing their individual BCI each month, and where 19 countries are using the Euro as their currency. Therefore, If you see sharp, unexpected moves in the BCI release, wait for the big guns to set trend direction and then jump on it according to your own trading methodology.

Tags BCI indicator, Forex, Technical Analysis, trading

Forex Videos

Forex! Maximise Profits With The Correct Pairs!

Post author By Keiran
Post date 28 May, 2020
No Comments on Forex! Maximise Profits With The Correct Pairs!

https://youtu.be/8CZwRnUjWD0

Reducing risks by choosing the right pair to trade

If you could walk into a casino and you knew for a fact that the next spin of the roulette wheel would throw up a black, you’d bet your house on it. Obviously, that knowledge isn’t possible, and so, as traders, we do the next best thing. We use our knowledge and skills to set tip the odds in our favor while trading currencies.
One of the biggest problems here is that, depending on the time frame, you prefer to trade with, knowing exactly where exchange rate price action is going to turn in your favor can be difficult and somewhat challenging, especially when you factor in news events and also unexpected market turbulence caused by rumors and unexpected announcements by policymakers. All very inconvenient if any such event should turn your trade against you.

You only have to take a look at this daily chart of the GBPUSD pair to realize that within a daily short space of time, the exchange rate has been up to a high of 1.35100 in January 2020 to a low of 1.1400 in March 2020. Without tight stop losses in place, these types of swings, assuming you were the wrong way around and bought the pair at 1.35 and did not incorporate a tight stop loss can be account killers for many retail traders. And the hope of seeing a return to those levels could be a very long way away for the rest especially as the Pound is susceptible to trade talks with the European Union and where the negotiations are up against a tight timeline and need to be concluded by the end of this year.

Let’s turn our attention to the NZDAUD pair. If you think about it, the two countries are in close proximity, and they are very similar in that they are heavily reliant on exporting their goods and services, mostly commodities and with large trade deals with China. And so their economies are similar.

This means that to a large extent, their currencies remain in fairly tight ranges, although all currency pairs are prone to turbulence from time to time, especially when it comes to setting interest rates. But if we look a little closer at this 4-hour chart, the pair has been trading in a narrow range of not more than 250 ips since the beginning of April. This allows a little more flexibility with stop losses and also, for traders in Europe, or the USA, there are less likely to be any shocks with regard to economic data releases, or unexpected policymaker decisions because most of this will have come out during the Asian session when these countries are in full flow during their business hours.

So, bear this in mind. It is great to be on the right side of a 500 pip move, but it can be a whole lot stressful just bagging a few pips here and there in a pair that is trading within a narrow range and should not, in theory, break out unexpectedly during different time zones of their own.

Tags Forex, trading

Forex Videos

Types For Noobs! How To Apply Our Free Signals & Make Money For Free

Post author By Keiran
Post date 22 May, 2020
No Comments on Types For Noobs! How To Apply Our Free Signals & Make Money For Free

https://youtu.be/EWBpjoLl-Q0

How to apply Forex Academy trade signals to your own trading account?

Ok, you have seen the Forex Academy signals table and the incredible success our professional Traders are enjoying, and you want to start copying some of the trades onto your own account, but you are a novice trader and a little bit unsure what to do next.

This presentation is designed to assist you with such tasks. Let’s take a look at a couple of examples of how you can go about applying the trades from the signals table on to your own trading account.

Let’s drill down into this pending order for the US dollar CAD trade at the top of the table.

We can presume that you have clicked onto the Method tab to have a look at the traders’ technical analysis and overview; you agreed with the sentiments and decide that you want to take this trade on by applying the price entry, take profit, and stop-loss on to your own trading platform.

The most common trading platform which is offered by the majority of brokers is the Metatrader mt4 platform, and so we assume that you are using this platform, in which case you should open it up and select the US dollar CAD chart. You don’t have to add technical analysis.

Click on the New Order tab, and an order box will pop up onto your screen.

Click onto the symbol drawdown panel to select the US dollar CAD asset.

The price will then change to the current exchange rate for this pair.
If this was an instant execution, you would simply sell-by market or buy the market by clicking on the relevant price paddles, which are colored red and blue.

However, this is a pending order which we need to select from the type of trade drop-down menu.

Let’s quickly remind ourselves of the trade we are copying. this is a Sell-limit pending order of the US dollar Cad pair, with an order to sell the pair at some point in the future with no specified cancellation date at an exchange rate of 1.41526 with a stop loss of 1.42126 and a take profit of
1.40926. This represents Minus 60 pips or plus 60 pips, where the risk to reward has a ratio of 1:1. So for every unit traded in a standard lot of 1.0, which equals 10 units of the base currency traded, you would win or lose $600. Or if traded with a mini lot equal to 0.1 unit of volume you would win or lose $60 and if you were trading in micro-lots of 0.01 units of volume you would win or lose $6

We now take this information and add it to our order box. Firstly you will need to put in the volume of currency you want to trade. Here we have added a volume of 0.10 units, which equates to around about $1 for every pip in movement.
We then complete the stop loss box by entering in the exchange rate 1.42126, the take profit at

1.40926, and then in the pending order section itself, click on the sell limit for the type of pending order. Enter an exchange rate of 1.41526.

Then simply click on the place tab, and if the server accepts your trade, it will be confirmed by three lines popping up on to your chart. One is the sell limit order with the volume you have chosen at the exchange rate at which the trade will be executed if the price reaches it at some certain point. The second will be the level at which the trade will be stopped out should it move against you, and the setup fail. And the third line is the take profit where the trade will close out if price action moves to this exchange rate level should the trade have been opened having gone to plan.

Should the trade you are looking at copying require a different type of pending order this can be found in the order type drop-down box and will include buy limit, sell limit, buy stop and sell stop orders.

Different types of pending orders are buy-limit, where a trader expects that the current exchange rate will fall lower before continuing in an upward trend, In which case he would use a buy limit order to enter a trade at a lower point than the current exchange rate.
Or the trader would use a buy stop order to enter a trade which is above the current exchange rate, and where he or she might use such an order anticipating that an upward trend would continue.

Conversely, a trader would use a sell limit pending order if they thought that the exchange rate was going to move slightly higher before reversing into a downward trend. This provides them with the possibility of gaining some extra pips. Or they use a sell stop order where they presume the exchange rate will move lower than where it is currently.
Other trading platforms have similar trade order systems, and so if you are not using the MT4, you will just need to research a little to find the trade execution setups.

To calculate your risk, most platforms, including the MT4 offer a cross-hair feature which you can drag onto your chart and by clicking on the current price exchange rate, or anywhere else, you can drag the cross-hair to any level on your chart, and it will show you the number of pips that you might lose or gain. In this example we can see that should a trade be executed at the current exchange rate the level to the stop loss we have chosen by the introduction of the red line is 127 pips away, and where one pip typically will equate to one US dollar with a volume of 0.10 units traded.

On that basis, if we were to go short on this pair at the current exchange rate with the current stop loss in place, we would have lost $127 should the pair have moved up to our stop loss. We can also simply drag the cross-hair lower to calculate possible winnings in pip amount values too.

Tags Forex, Forex Academy, Forex Signals, Trade Setup, trading

Forex Videos

Elliot Wave Education In Forex – Trading With Confidence!

Post author By Keiran
Post date 22 May, 2020
No Comments on Elliot Wave Education In Forex – Trading With Confidence!

https://youtu.be/HW64xScAuYI

Elliot Wave Theory

This video is an example of a wave counting case when the movement starts from a different level to the lowest point of the movement recorded in the price chart.

The following chart corresponds to the cross Euro Pound in its hourly timeframe.

Different techniques of technical analysis teach that the price should be analyzed from the lowest point to the highest level, or vice versa. However, in Elliott’s wave theory, an impulsive, or corrective movement, does not always start or end at the lowest level shown on the price chart.

In this example, we see that the price comes from a bearish movement, which ends with an aggressive fall. However, this did not end at level 0.82758, but ended at level 0.82767, from where we observed that the euro pound cross initiated an impulsive sequence in five waves, which developed an extended third wave, also shows the advance on a fourth wave which is longer in time than the second wave and this impulsive sequence ended on January 14, 2020.

Now we will see the internal structure of the extended third wave. Here we see the first wave, the second, third, fourth, fifth. The degree of the sequence would correspond to Subminuette in green.

Remember that both colors and grades are used for convenience for analysis purposes. Elliott, when he developed his wave theory, he never pointed out an obligation of a time range with a specific degree. The important thing in wave counting is the existing order in the analysis process.

We have already seen the third extended wave, now we see the principle of alternation between the corrective waves, from the graph we see that wave 2 is a simple correction and the fourth is a complex correction.

In the fourth wave, we see that its structure corresponds to a triangular formation, and we see its internal segments a, b, c, d, and e, and here we can observe the initiation of impulsive movement in 5 waves belonging to the fifth wave.

The start of the fifth wave is validated once the price breaks the b-d triangle guideline. Likewise, the upward movement of the fifth wave is considered finished after the low rupture of the upward guideline that joins waves 2 and 4.

This corrective sequence should correspond to a corrective process of a similar degree to this training that began on December 13, 2019. However, for the purposes of this analysis, we will only analyze the impulsive structure.

Another detail that we must take into account in the impulsive structure is related to the extended third wave, which has a particularity that we can observe in this case. When the share price goes back beyond 38.2% of Fibonacci, the price warns us that the momentum bullish is running out, and it is very likely that the price will not exceed the previous maximum. In this case, we see that the price exceeded the maximum of wave 3 for only 4 pips reaching the level 0.85959.

Tags Elliot wave, Forex, Price Action, Technical Analysis, trading

Forex Videos

The Dow Jones Bull Trap! Don’t Get Caught Buyers!

Post author By Keiran
Post date 19 May, 2020
No Comments on The Dow Jones Bull Trap! Don’t Get Caught Buyers!

https://youtu.be/tDwa_ll_zJc

Dow Jones Index – Bull Trap

A bull trap is a misleading signal which tells financial traders that an asset, which has recently fallen, has reversed and is currently heading upwards, when in fact, the asset will continue to decline. Thus trapping buyers who went long, often at the top of the rebound, only to go on to suffer losses when the asset crashes.
We may well find ourselves in such a situation with the Dow Jones Index currently.

This is a daily chart of the Dow Jones index, and we can see that after a record-breaking run during February 2020, when the American economy was flying high, it crashed to a low of 18.200 just a few weeks later after the outbreak of Covid-19 as the US shut down its economy to protect citizens. This is the first time their economy has been closed down by Government consent.

The Federal Reserve threw money at the economy in the form of reducing interest rates and massive rounds of financial relief packages worth over $3 trillion, so far, and yet still with the majority of the economy flatlining, the Dow Jones Index rallied to a recent high of 24.900. This was effectively a massive bull run during a slump. It caught a lot of investors off guard, many who were selling stocks and shares seem to have sold out too soon during the first crash down to 18.200. But will those investors who started buying again after that low now suffer as the index falls lower, or will we continue to see momentum to the upside?

The issue for investors, as the Dow sits at 23.650 level, is that Banks are not paying dividends to investors this year as they try to shore up losses caused by the pandemic. This makes bank stock highly unattractive to traditional investors who would previously buy such stocks while accepting the risk of a potential fall in stock value while receiving dividend payments. They were happy to ride out any financial storms while waiting for better times ahead after the economy recovers and thus a return in the share price.
However, this crisis is not the same as the financial crisis in 2008, where investors such as Warren Buffet piled in through his investment vehicle, Berkshire Hathaway, to pick the stock up cheaply looking for long term growth. Boy, did he do well when the economy went on to surge higher?

However, Berkshire Hathaway has suffered heavy losses in this current crash, having lost an estimated $50 billion, and Mr. Buffet claims to have made a mistake in buying airline stocks and has just sold 84% of his stake in Goldman Sachs, the darling of the Wall Street investment banks. Could the writing be on the wall for US stocks now? He said that while the trains had come off the tracks in 2008, they are currently in the sidings in this event.

So, with over 20 million currently unemployed, GDP at -4.8% for March, manufacturing down, Government debt growing, and with 1.5 million cases of Covid-19 and almost 90 thousand poor souls having lost their lives, what on earth seems so attractive about buying US stocks right now?
The simple truth is that there are more buyers than sellers right now, many investors believing that the economy will bounce back quickly after similar health crises, such as Ebola, Sars Bird Flu, and Zika, where there were crashes in stocks but where they quickly recovered. And also where firms and

executives of those firms have bought their own stock on the dip lower. Some economists believe there will be a V-shaped recovery: a quick fall and a quick recovery. This sort of talk causes F.O.M.O or fear of missing out, a very big reason why we see such rallies, as they pile in buying up stock believing that the worst is over.

This is the number one reason that stocks are getting bought while the news is getting worse. But the elephant in the room is Covid-19 is still an unknown disease and the moment markets hear of second waves they will drop stocks like hot potatoes. There will highly come a time, very shortly, which will be the straw that broke the camel’s back, bringing the current bull run to a crashing end. And that will confirm what we see as a bull trap.

Tags Bull Trap, Dow Jones, Forex, Fundamental Analysis, Stocks, Technical Analysis, Trade Setup, trading

Forex Videos

Everything You Need To Know About The Forex Market Right Now!

Post author By Keiran
Post date 12 May, 2020
No Comments on Everything You Need To Know About The Forex Market Right Now!

https://youtu.be/_Nb5gUsoRys

When the fundamentals lag behind the technicals

In recent weeks you will have noticed that the financial markets are in complete turmoil, with extreme volatility in all sectors, but especially in the oil markets more recently, and where stock markets seem to be propped up by hope more than fundamentals; after all, many indices have been rallying while the world economies have ground to a halt. And where volatility has also spilled over into the currency market.

At the end of March 2020, we saw huge moves in currency pairs including a spike in cable, which only a few short weeks ago was trading at 1:14 and yet has recently spiked up to 1.2640, and where fundamentals for the British economy do not support this huge increase in the value of the pound.

So what is going on? Well, one thing is for sure, British economic data releases are not really showing the true extent of the fallout of the Covid-19 pandemic yet. And so, the fundamentals are lagging the technicals. In other words, the markets are being driven by technical analysis rather than fundamental analysis, in some circumstances.
Something that has stuck out like a sore thumb with regard to fundamentals lagging technicals is the USDCAD pair’s recent choppy price action. Let’s drill down in a little more detail to try and establish what is going on.

Before we do that, let’s take a look at the West Texas Intermediate or WTI, price action chart of the last 12-months. WTI is the benchmark for crude oil, and from 2019 to 2020, the price of a barrel of crude oil ranged between $50 to $66. West Texas Intermediate is a specific grade of crude that is used around the world and is seen as a benchmark in pricing oil.

In this chart, we can see that in the same 12-period, USDCAD ranged between 1.2966 to 1.3575. Obviously, this was just before the virus pandemic. But in case you didn’t know, Canada is the fourth-largest producer and fourth-largest exporter of oil in the world, with 96% of Canada’s oil exports going to the United States.
Production and exportation of all products, including gas and electricity in Canada, contributed to around 170 billion in Canadian Dollars to it’s 1.8 trillion dollars of gross domestic product, which equates to around about 10% of GDP. And so oil is big business in Canada. And anything that upsets the production and exportation of oil will have a dramatic effect on Canada’s gross domestic product, and a spillover will, of course, be the value of the Canadian dollar, where we would expect price action volatility.
In fact, Canada has huge reserves of crude oil in Alberta’s Oil Sands and large deposits off the coast of Atlantic Canada. Oil is such a big business here, including exploration, drilling, production, field processing, as well as storing and the transportation of oil.

The Canadian dollar is sometimes referred to as the Loonie because of the loon bird, as depicted on the Canadian $1 coin. The Canadian dollar is one of the major currency pairs. It is widely traded in the financial markets and has been subject to extreme volatility during the current crisis.
However, we have also noticed that the USDCAD price action has become out of kilter recently, and this can be attributed to price action falling out of line with fundamental analysis and where traders have been preferring to trade on the basis of technical analysis. But be warned, fundamental reasons will catch up eventually and make the relevant corrections.
let’s set out our reasoning behind this theory:

In this daily chart of the USDCAD, pair we can see that the price action, which had previously been contained within the 1.2966 to 1.3575 area, has spiked higher to reach a multi-year high at 1.4664 on the 19th March 2020. There are several reasons for this, including the perceived Covid-19 related hit to the Canadian economy, which affected and devalued the Canadian dollar.

But if we take a look at this chart of WTI, we can also see that the 2019 to 2020 price of a barrel of crude oil range of $50 to $66 has spiked lower to $21 per barrel and therefore this would have been the main contributor for the Canadian dollar spiking higher because traders envisaged that the low price of oil, which is attributed to a global slowdown and a lack of demand, would devalue the Canadian dollar and that is exactly what happened; Oil price lower, Canadian Dollar value lower.

Let’s move forward to 30th April where the price of oil has continued to collapse, at one point going into negative territory to – $40 a barrel for WTI for May’s futures contract, which is the first time in history that this has ever happened. But at this point, we can see that price has somewhat recovered to $11 dollars per barrel. And we might, therefore, expect that the Canadian dollar has also weakened.

However, on the same day of the oil low, 30th April, the Canadian dollar has rallied higher in value, with the USDCAD showing a low of 1.3843, its highest level in six weeks. Before moving higher again to 1.4100 where it currently sits.
While some of the increase in the value could have been attributed to the oil price coming off of its low, especially the minus figures, on hopes of a fuel demand recovery, the prospects of further economic stimulus by the Canadian government, and the gradual reopening of western economies, we can be in no doubt that there has been a lag in fundamental analysis, and where traders have preferred to move with technical analysis, during the period of 19th March to 30th April.
However even if things began to get back to normal, this is going to be an extremely long process, and yet many oil-producing countries such as Saudi Arabia and Russia keep pumping out oil in a high volume regardless of the slowdown in global economic growth and where the

surplus of oil in storage all around the world is not likely to be consumed until 2022, according to some analysts.
Therefore no matter what type of recovery we see, and it won’t be rapid until there is a cure for Covid-19, on the basis of supply and demand, we will see low oil prices for a long time to come. Therefore we should expect the US dollar CAD to continue to rise, perhaps to previous highs of $1.46, as the fundamentals catch up with the technicals.

Tags Forex, fundamentals, Technical, trading

Forex Videos

The Free Forex Academy Signal Service! Over £18,000 made already! Part Two!

Post author By Keiran
Post date 7 May, 2020
No Comments on The Free Forex Academy Signal Service! Over £18,000 made already! Part Two!

https://youtu.be/NPZAWNX2EFw

How You Can Make Money Using Forex.Academy’s Free Trading Signals Service – PART 2

Welcome to how can you make money using forex academies free trading signals service part 2. By connecting to the Forex.Academy website and clicking the tab for our Free Trading Signals Service, you will find this page.
If you haven’t seen part one, please do so because we go into great detail about the usability of the trading signals page, including the various types of the assets being traded, the types of trade setups, and details of the professional traders involved in the signals.
In this presentation we will be looking at how the signals service can help you, the trader, whether you are a novice trader or a seasoned professional, there is something here for you in this superb free signal service.

So for argument’s sake, let’s say you are a complete novice forex trader, and you have looked at the forex space and decided that you would like to take advantage of this 5 trillion dollars per day turnover business machine, which is totally recession-proof. You have a couple of options, one you can go to the trouble of learning every aspect of the forex market, including everything that you will need to know about fundamental and technical analysis, which is no mean feat because there is just so much to learn in order to become a proficient and profitable currency trader. That said, all the educational tools that you will need can be found absolutely free of charge on the Forex Academy website.

You also have the option of using a copy or mirror trading platform, where you link your forex account to a trader based on the scrutiny you have done regarding his/her track record. However, most traders will not give you a biography, and hardly any of them will speak to you directly regarding their trading approach and methodology. Also, there will be a monthly subscription cost to the mirror platform, and also a separate fee-based subscription to the trader. While you may be able to see his/her performance track record, you will not be able to analyze their trade setups, because he or she will very likely not provide that information to you. In effect, you are blindly trusting them to make you money.

Alternatively, you can use the forex Academy trading signals service, which is totally free, And where you get to choose the type of asset which is traded, from a basket of currencies and bitcoins.

And where you are provided with a biography of each trader, including their professional status within the forex market, both past, and present. And where you can find details of the trade, including the name of the asset being traded, the technical analysis name for the trade setup, up-to-date visual technical analysis charts of the setups, and a written description of the fundamental and technical analysis behind each and every trade. Our professional traders only use technical and fundamental analysis setups that are widely used in the forex trading community in order to offer you reliable trading signals.

Trades will either be instant execution or pending orders and where you will be able to keep an eye on the trade table as and when these opportunities are presented, in which case you can pick and choose which trade to copy on your own trading platform. Having looked at the technical set up that the trader has uploaded in the method section, you then simply add stop loss and take profit

levels, or make adjustments to them based on your own risk preferences, and you then copy the entry price bearing in mind that if it is an instant execution you might miss a few pips unless you are monitoring the table continually. However, you would be more likely to get in at the beginning of the trade by copying pending orders such as this buy stop order.
If you would like to be notified by a free subscription service of every single trade set up, you can open up an account with eagle FX, by visiting their website www.eaglefx.com, who are our partners in this venture, and where you will benefit from high leverage and full, STP/ECN, processing which means you will have zero trading conflict with this reliable and respected broker.

Another benefit of having an account with the EagleFX is that you will also be notified automatically of key FX levels, which act as magnets for price action in the spot forex market. You can also find details of these on the forex academy website by clicking on the market update tab and scrolling down to FX options.
So, as you can see, if you are a novice trader, you have the ability to research the trade, and if you like it, you can copy them onto your own platform having confidence in the expertise of the professional trader who set the trade signal up in the first place. This will help you to grow as a trader, as you steadily learn more about trading via this unique option.
Of course, it might be that you are a seasoned trader and hence you are still happy with the methods that you find on our trade table, and perhaps you want to spend a little less time looking at setups yourself, in which case you can copy our free signals in order for you to enjoy that lifestyle choice.

Please also keep an eye out for the relevant marketplace for ‘Signal Academy’ Android and IOS trading signals apps, which we are developing and which will be available to download soon.

Tags Forex, Forex Signals, Trade Setup, trading

Forex Signals Forex Videos

The Free Forex Academy Signal Service! Over £18,000 made already!

Post author By Keiran
Post date 6 May, 2020
No Comments on The Free Forex Academy Signal Service! Over £18,000 made already!

https://youtu.be/2CIchjrSgV0

How You Can Make Money Using Forex.Academy’s Free Trading Signals Service – PART 1

The Forex.Academy’s Free Trading Signals Service. What is it and how can it help you?

Forex.Academy has recently launched its free trading signals service which can be found under
the Signals tab on the Forex.academy website.

The webpage lists many open and pending orders relating to trades in several assets, from currency pairs, gold, and bitcoin.

And the trades are managed by professional traders, some who have come from an institutional background, having trading with institutional size deal tickets running into $ billions. Biographies of each trader will be added to the technical analysis for every trade and you will be able to access this information to help you decide which trades to copy. You wont be disappointed. These guys really know their stuff.

Each individual trade is listed on the table, and comprises of several components parts, including: Insert 1: The date the trade was listed: Insert 2: The type of order, which could be an instant execution, or spot trade, or a limit order including a buy limit or stop buy order or a sell limit or stop sell order, Insert 3: the type of asset, which could be a number of major or cross FX pairs and gold and bitcoin. Insert 4: the method where the each trader gives a detailed analysis of the thinking behind each trade, which, incidentally, most other signal providers do not offer, and where we will come back later in this video to take a more detailed look, Insert 5: the entry price for the trade, Insert 6: the stop loss for the trade, Insert 7 : the take profit level, Insert 8, The risk to reward level, Insert 9: the price level at close; Insert 10:
The closing date and time, if applicable and insert 11: the amount of pips won or lost or in the event of an open trade the fluctuating level of pips in play.
Now lets drill down a little further into the trade methodology as promised earlier.

The platform has a cool feature called the method, it allows total scrutiny of all trades by third parties, such as yourself, who want to know about the thinking and methodology behind the set-up of each trade. This is not about tossing a coin and hoping for the best, it’s about incorporating all the methods and techniques which are employed and incorporated by professional traders and institutions which have a high for this type of technical and fundamental analysis, which tend to offer a high success rate.

And so in this spot EURUSD trade, the trader had based his assumption that the pair should move lower and entered a short position as an instant execution trade at the exchange rate of 1.0798 with a stop loss of 1.0838 and a take profit target level of 1.0758 with a risk to reward ratio of 1.00 and where the trade was manually closed out on the 23rd 04 2020 at 12:06 PM with a profit of 23.8 pips. This tells us that the price action was reversing and unlikely to achieve its target exchange rate at 1.0758 and therefore the trader decided to close out. Followers would have the same option, and remember, this is about making money, and that markets can change direction and things can therefore change.

So let’s now click on the Method tab, and drill down further into the trading methodology behind this trade. Now you will be presented with a detailed analysis of this train set up. In this instance, the trader is Ali.B, who has elected to use a technical and fundamental analysis approach, based on a symmetrical

triangle breakout and while preferring the 4-hour time frame. Ali has incorporated several support and resistance levels, and has keenly observed that price action was forming a squeeze, and that a symmetrical triangle breakout had occurred and this was the set-up that he had incorporated as the backbone of this trade.
Ali provides detailed clarification from a fundamental basis, which is backed up by cool headed technical analysis.

By scrolling down we can see that more detailed information has been provided and where copy traders can also calculate what their profit and loss would likely be in the trade was allowed to go all the way to the targets and stop levels, based on the incorporation of using a standard or micro lots for those who decide to copy the signals.

This is the trading signals service table in a nutshell, it’s completely transparent, fully detailed, easy to follow with trades that can be copied by others, including new traders, or even experienced ones with a limited amount of time to set up their own trades, or those who wish to supplement their trading portfolios.
So what is the catch I hear you say? Other signal providers want to charge me a monthly subscription fee, often quite expensive, so there must be a catch or there must be something wrong with this service. Well just because it’s free, it doesn’t devalue the product and Insert J
just look at the success story so far, in just a few weeks our team of professional traders, many who will be trading these setups themselves, with their own funds, has bagged a very impressive amount of pips won of 1841.41, and that equates to $18,410 less fees and spreads for traders who copied all these signals with risking one standard lot size, and even a still impressive $1,841 less fees and spreads while risking a mini lot. All with a win to lose ratio currently running at over 65%.
As for the trading signals service being free; well it is all a part of the commitment by the owners and team here at Forex.Academy to offer free professional, comprehensive educational and related services within the world of financial trading.

Join us for part 2 to find out how this brand new free service can help you.

Tags Crypto, Forex, Forex Signals, trading

Forex Videos

Forex Option Expiries Over $100,000,000 – The 10AM New York Cut part 2

Post author By Keiran
Post date 1 May, 2020
No Comments on Forex Option Expiries Over $100,000,000 – The 10AM New York Cut part 2

https://youtu.be/Z296E4uc1F4

Forex Option Expiries Over $100,000,000 – The 10 am New York Cut part 2

Hello everybody, and thank you for joining us for the daily FX expiries briefing video for the 10 am New York cut today.

If it is your first time with us, the FX currency options market runs in tandem with the spot FX market, but where traders typically place Call and Put trades on the future value of a currency exchange rate and these futures contracts typically run from 1 day to weeks, or months.
Each day we bring you details of the notable FX option expiries where they have an accumulative value of a minimum of $100M + and where quite often these institutional size expiries can act as a magnet for price action in the Spot FX arena leading up to the 10 am cut.

We will also plot the levels on to the relevant charts at the various exchange rates where there are due to expire, and also identify the levels which are in play, and where we believe there is a greater chance of the expiry maturing based on technical analysis at the time of writing, we will label them as hot, warm or cold.

So today we have Option Expires for the EURUSD Pair We have one notable expiry which is in play at 1.0820 for €557M and a Cold expiry which is out of play for €508M at 1.0980

Also, there are also Options expiring for USDJPY pair with a Hot expiry at 1.0750 for $3.2 B in USD value and a cold expiry at 1.0799 for $428M

There is one expiry for the GBPUSD at 1.2400 and is Hot for £291M

We also have a Hot expiry for the NZDUSD pair at 0.6050 for 352M In new Zealand dollar value.

Of the notable option expiries which we brought you yesterday: price action gravitated to the 107.00 level on USDJPY, just before the New York cut. We listed this as Hot
ERUGBP gravitated towards the 0.8700 level. We listed this as Hot too.
EURUSD had several options, and we listed 1.0820 as being Hot and where traders who purchased a Put, for this expiry level would have been in the money.

We suggest you take the levels and plot them onto your own trading charts and incorporate the information into your own trading methodology in order to use the information to your advantage.
Remember, the higher the amount, the larger the gravitational pull towards the exchange rate maturity at 10:00 am Eastern time.
For a detailed explanation of FX options and how they affect price action in the spot forex market, please follow the link to our educational video.

Tags Forex, Forex expiries options, trading

Forex Videos

Forex – Whats Driving The Price Of The Pound?

Post author By Keiran
Post date 30 April, 2020
No Comments on Forex – Whats Driving The Price Of The Pound?

What’s Driving The Pound? Helium?

The British Pound has been affected greatly by the Coronavirus outbreak. As per the slide of the GBPUSD daily chart, the 7-day period at the beginning of March saw price action collapse from a level of 1.32 to 1.14. However, it has had a phenomenal rebound up to current levels of 1.25, and so what has led this recovery? And is it sustainable?

First, we have to factor in that in the early stages of March, where Britain was hard hit by the coronavirus, and the government decided to close the bulk of the business sector down by putting the country into lockdown in order to try and curtail the effect of the coronavirus. It implemented financial strategies to inject capital into the markets in order to try and protect small to medium businesses, while also agreeing to make financial payments to individuals who were on lockdown. This has created a debt bubble.
The shock wave to the financial system was huge and sent the Pound crashing against counterparts and especially the dollar. But also at this time, the United States was in the early stages of the pandemic, and this would have influenced investors and currency traders to buy the dollar against the Pound.

However, during the later stages of March, we can see that price action is heavily supported around the 1.1400 and 1.1500 key levels, as the United States becomes more susceptible to the virus with increased numbers of people being infected there and as the death rate begins to rise.

Analysts will also argue that the huge amounts of dollars being injected into the markets by the Federal Reserve, their slashing of interest rates and their huge overnight repurchase program which effectively provides more stimulus has greatly helped liquidity in the financial markets where the UK is heavily dependent within its huge financial services sector, thus giving the Pound a lift. But from 1.1400 to 1.2500, in six days? Wow, who saw that coming. Not many traders and analysts I expect, especially with the country in lockdown, with increasing unemployment, businesses going to the wall, and Government debt growing exponentially while essentially propping up the country.

Now we have to factor into other critical components as to why the Pound is so elevated. Firstly we have the USA in a similar situation, where a majority of the industrial sector has also been shut down and where the majority of the population, excluding essential and key workers, have been put in lockdown. Of course, these workers do not contribute to the country’s gross domestic product, and as such, they make a negative contribution to GDP due to salaries and equipment that they need which all comes from the Federal Government, again, this bad for the US economy, and so we would expect a bounce in exchange rates to take some of this into consideration.

However, I suspect one of the key reasons that the GBPUSD exchange rate is elevated at the moment is because investors envisage that the British government will not be able to effectively negotiate the terms of the new trading agreement with the European Union where Britain’s transition period ends at the end of December 2020. Although this is enshrined in law, analysts and investors are predicting that the government will have to find a way to extend this period by 1 or 2 years, simply because the pandemic has meant the British companies are not in a position to effectively be able to implement any new trade deals that the government negotiates with the EU by December, thus forcing the government to extend the transition period. And this, of course, would mean that uncertainties surrounding negotiations will be pushed back, thus alleviating pressure on the Pound.

There is one more thing to consider, that the pandemic, which is forcing the global economy into recession is almost unprecedented on this scale, and where we see large swings in currency pairs such as we have seen in cable, where huge volumes of stop losses will have been incurred by vast amounts of traders and institutions, and often you will find in the circumstances volume begins to dry up in currency terms as investors stay on the sidelines, which causes high levels of volatility, and vacuums, where are traders, cannot predict levels of resistance and support, because there is a lack of historical technical analysis levels of support and resistance, which further fuels uncertainty.

Therefore we should expect more volatility in this pair. However, as price action consolidates, we will likely see more levels of support and resistance being observed by traders looking for signs that the pandemic is easing, before finding more clarity with regard to directional bias.

Tags Forex, trading

Forex Videos

The Stock market Bubble Is Real! Is It Time To Pull The Plug?

Post author By Keiran
Post date 30 April, 2020
No Comments on The Stock market Bubble Is Real! Is It Time To Pull The Plug?

https://youtu.be/SkzneKTz4nA

Are Stocks In A Helium Bubble?

During the fall of the Roman Empire, Romans of wealth, including high-level soldiers, melted down silver Roman coins because they could see the end of the empire coming. They were effectively converting out of cash and into a precious metal. They knew the value of silver, no matter what.

A few months ago, when the Covid-19 virus started to take hold in China and especially when it hit Italy, sharp investors bailed out of stock markets and converted their investments into US treasury bills and also cash. INSERT B: Shortly afterwards the main Stock indices crashed with the biggest hit to the Dow Jones 30, which tanked from above 29.000 to 18.200 at its low point. The Federal Reserve, along with other major Western governments, acted quickly and reduced interest rates and pumped as much money as possible into economies to try and limit the damage, where the majority of the world was in a state of lockdown, and all but essential business were closed. The global economy was flatlining, going into recession, and is currently facing the biggest economic disaster which this world has ever known.

And yet, in the last few weeks global indices, especially the Dow Jones, INSERT 1 S&P 500, the INSERT 2 German Dax and INSERT 3 the FTSE INSERT 4 have rebounded off of their lows and incredibly are in what can only be termed as a bull run. With no end in sight to the Covered-19 crisis and no cure on the horizon, and where economic production and gross domestic product are tanking, how can stock indices be riding on a high?

This can be down to a couple of reasons, f o m o: Fear of missing out, where investors are diving back and picking up what they see as cheap stocks under the old adage; buy at the bottom and sell at the top, and where Executives have also picked up stock in their own firms. Another reason can be put down to automatic trading algorithms which simply have no rationale when it comes to fundamentals, they have no empathy with people that are affected by this disease, they have no consideration of flatlining economies and negative GDP’s, they are simply programmed to buy and sell on whatever technical trading criteria the programmer sets.

The upshot is that a bubble has been created in these indices, where artificially inflated stocks are floating well above where they should be, in some kind of helium bubble. And we all know what happens to bubbles: they burst.
Stock markets, and the companies which are contained within, grow on consumer demand and while consumers are currently buying their necessities like food, medicine, electricity, gas; the basics, in other words, they certainly are not buying luxury items including cars, holidays abroad including airline flights, on cruise liners, or requiring hotels. And they are not going out to restaurants or cinemas, and they are not buying petrol for their cars because most of them are in lockdown. They aren’t moving house, and the financial services sector, in terms of lawyers and mortgage underwriters, are affected. And of course, all of this has a knock-on effect on those companies, which means they cannot grow, and which means that essentially their stock value should be crashing through the floor. And yet here we are in a bull run.

There is an old adage: the writing is on the wall, and when oil prices crashed this week and turned negative for the first time in history, it sent a chill through the spines of investors that told them that the financial markets were on borrowed time. While the oil market crash was said to be on a technicality, due to a futures contract for May which established that there was insufficient oil storage capacity, which sent oil prices to minus $40 Per barrel for West Texas Intermediate, and where we have seen a slight rebound in June contract prices, what do you think is going to happen when this maturity comes up.

There will still be an oversupply of oil in a marketplace that doesn’t need it because it’s in lockdown, there will still be a lack of storage capacity in a purpose-built facility such as Cushing, Oklahoma and around the world, so expect more jitters there. And of course, the longer the Covid-19 virus continues, the more likely that the stock market bull run is going to end with a flash bang wallop.
And of course, because all of the financial markets are so closely interconnected, we can only expect extreme volatility to spill over into the foreign exchange market.

Tags Forex, stock market bubble, Stocks, trading

Forex Options Forex Videos

Forex Option Expiries Over $100,000,000 – The 10AM New York Cut!

Post author By Keiran
Post date 28 April, 2020
No Comments on Forex Option Expiries Over $100,000,000 – The 10AM New York Cut!

https://youtu.be/sI0pNPnyYEo

FX Expiries 27 04 2020

Hello everybody, and thank you for joining us for the daily FX expiries briefing video for the 10 a.m. New York cut today.

So today we have Option Expires for the EURUSD Pair The levels are all in Euro amounts and are as follows:
• 1.0760 599m
• 1.0800 1.1bn
• 1.0820 504m

Also, there are also Options expiring for USDJPY pair!

The levels are all in US Dollar amounts:
USD/JPY: USD amounts

• 106.75 457m
• 107.00 1.2bn
• 107.50 874m
• 107.55 410m
• 107.60 668m
• 108.00 1.3bn
• 108.35 788m
• 108.40 521m
• 108.50 632m

Also, there are also Options expiring for EURGBP pair Just one key level which is in EURO amount

• 0.8700 775m

As stated, we have color-coded the levels on the chart from COLD WARM HOT with regard to the likelihood of the exchange rate reaching these levels at the 10 a.m. cut based on technical analysis at the time of writing.
We suggest you take the levels and plot them onto your own trading charts and incorporate the information into your own trading methodology in order to use the information to your advantage.

Remember, the higher the amount, the larger the gravitational pull towards the exchange rate maturity at 10:00 a.m. Eastern time.
For a detailed explanation of FX options and how they affect price action in the spot forex market, please follow the link to our educational video.

Tags Forex, Forex expiries options, fx options, Price Action, trading

Forex Options Forex Videos

Make Huge Profits With Our New Free Options Based Forex Price Target Tool

Post author By Keiran
Post date 28 April, 2020
No Comments on Make Huge Profits With Our New Free Options Based Forex Price Target Tool

https://youtu.be/HhJiaet2IJA

How do forex option expiries affect price action in the spot FX market?

In this video presentation, we are going to be looking at how forex option expiries affect price action in the spot FX market.
We will be exploring how forex options work, although we will not be concentrating too much on the technicalities of how they are traded because we are more interested in how FX options expiries can be of great benefit to traders in the spot FX arena.

So what are FX Options, and what is the significance of their expiries?
FX options are essentially another way of trading forex. In effect, they are different branches of the same entity. One is traded on the spot FX, thus known as the Spot FX market, which most of you will be familiar with, and the one we are discussing today is the Future’s FX Options market, where trades are made based upon the price of a currency exchange rate at some point in the future.

So what are FX options? Options traders purchase what is called a premium, which is a contract and which gives them the right, but not an obligation to buy or sell an FX currency exchange rate at a specified price. This exchange rate is called a strike. Typically these contracts will be purchased for a future date, typically days, weeks, or even months in advance and where the contract is purchased from a market maker, which is usually an institution that offers futures contracts trading, unlike banks and brokers which offer spreads in spot forex. Contracts expire on the date that the trader chose and always at 10:00 a.m. in New York, USA. This is known as the New York Cut.

If a trader wishes to purchase a premium, for a future date, for an FX Option, where he or she believes that a chosen currency pair’s exchange rate will be above that at the time of the purchase, he or she buys a Call Option. This is an option to buy. Alternatively, if the trader wishes to purchase a premium for an option where he or she believes that the future currency pair’s exchange rate would be below that at the time of the purchase, he or she buys a put option. This is an option to sell.

So how much does the premium contract cost a trader? This will vary depending on the size of the contract and also so how far the future currency exchange rate is from the current one and the length of the future expiry date. However, futures traders often prefer this type of exposure in the FX market because they take a long term view of where exchange rates will be. And rather than swing trade to these levels in the spot FX market, they prefer to pay the price or premium for the contract upfront, and this then becomes their risk and exposure, unlike spot FX traders whose level of risk fluctuates with price action.

How do options traders make money? If on the day of the maturity of the FX options contract at 10 a.m. for the New york cut the strike rate, or currency exchange rate, Is it at or above the exchange rate for a call option, or at or below the exchange rate for a put option, then the trader is known as being in the money. If a currency exchange rate is not hit, they are out of the money. If they are out of the money, the option expires, and the contract is worthless to the buyer, and he loses the premium.

If, however they are in the money, the buyer will get to exercise the option and create a position in the market. And the seller of the contract will be the counterparty in the ongoing trade. The seller of the contract also gets to keep the premium.

So who trades FX currency options? Anybody can trade FX options, but typically we will find institutions, high net worth individuals, forex traders looking to hedge positions, forward forex traders, speculators, exporters, banks, institutions, companies with exposure in the foreign exchange market generally.

So how do FX currency options affect the spot FX market? Interestingly, when FX options expiries accumulate into large amounts, typically $100 million +, we often find that these accumulated amounts at a set currency exchange rate have somewhat of a magnetic effect to spot FX Trader in the run-up to the 10 a.m. new york cut. Although these huge amounts of options expiring at a particular level occur on an almost daily basis, it does not definitely mean that price action pertaining to a particular pair will hit the strike rate. However, some of the traders who are involved in FX options will also use the Spot FX market to hedge some of their own positions, thus using the Spot market to try and move price to where they need it to be.
Also, these currency options expiry levels with the accumulated amounts are available via certain brokers and commentators before the expiries. Thus this publicly available information is used by Spot FX traders to keep an eye out in the market in the period leading up to the expiry. Remember, the larger the amount of the expiring contracts, the more it would seem that there is a gravitational pull towards these exchange rates.

Forex.Academy will be making these levels available to you, free of charge, and they can be accessed on the options drop-down menu of our home page. For your convenience, as and when option expiries become available almost each day, we will also plot them onto a chart, as per this slide, and you will be able to view them there for your convenience.

Tags Forex, Forex expiries options, Price Action, trading

Forex Videos

Forex & The Covid 19 Fundamentals! What & How You Need To Be Trading To Realise Huge Profits!

Post author By Keiran
Post date 27 April, 2020
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https://youtu.be/jMSp4k0cxPM

How Is Fundamental Analysis Affecting Forex During Covid-19

There is absolutely no doubt about it since the coronavirus took hold in Europe, the United Kingdom, and the USA, and to a degree at the height of the epidemic in China, where previously markets had shrugged off off the disease as being contained there, the way that markets are now observing fundamental analysis has been completely turned on its head.
Before the virus, the markets were doing very nicely, with record strong economic growth, particularly in the west, and definitely in the USA, which had hit a record for the lowest number of unemployment, and stock indices which were at all-time record highs, and where within a few weeks the country has flipped into a state of record amount of unemployment of over 16 million, and growing, and is facing the worst depression in U.S. history.

Naturally, the financial markets are in a state of pandemonium because this situation is almost unprecedented. Of course, we had the banking crisis in 2008, which sent shock waves through the financial markets, and we have had other virus outbreaks such as Sars, Avian Flu, Swine Flu, and Ebola, which all caused some degree of market turbulence, but nothing on the scale of what we are seeing at the moment.

Normally financial markets, including Forex, Oil, Gold, and Commodities, turn to stock market indices for guidance because they present a good gauge of economic activity. But of course, while most countries are in lockdown, the majority of business sectors are closed, and economies have essentially flatlined. And so GDP, a key area of fundamental analysis, is now useless. In fact, any economic data releases coming out of major western countries right now can only tell us varying degrees of catastrophic failings.
Where once currencies would rise and fall in exchange rates based upon strong data which only fluctuated in relatively small varying degrees, and where markets were able to predict such data releases within a narrow band of expectation, now analysts are gauging the value of one currency against the next on which country is suffering the fewest fatalities and sometimes this causes see-sawing of price action on an hour by hour and day by day basis.
As China slowly begins to come out of the virus and starts opening for business, we should not be surprised to see countries such as Australia and New Zealand, who export heavily into China, to be amongst the first countries to start to bounce back from the virus, especially as they are recording lower numbers deaths at the moment.

This would mean that their currencies strengthen against counterparts and we are seeing that against the U.S. Dollar right now, INSERT B, where 17-year lows of $0.5500 for AUDUSD pair, has recovered to $0.6360 and where the NZDUSD pair hit an eleven-year low of $0.5460 before recovering to $0.6025 currently.

While countries such as the USA, which was the last continent to be affected, are directly in an area of focus right now because of the exponential death rate and the fact that it is the largest economy on the planet. And although so it might end up being the most severely affected country, both in terms of people suffering and dying from the condition and also its economy taking a huge hit, in both unemployment and its GDP going into the minus territory, the thing that is stopping a complete stock market annihilation is the fact that the Federal Reserve acted quickly to slash interest rates and enter into one of the biggest quantitative easing programs in history in order to bolster the finances of small to large businesses across the United States, to try and stave off mass bankruptcies, and the offer of financial relief to the majority of its population.

This has helped us stock indices to bounce off their lows and steady themselves to a certain extent. And, surprisingly, the U.S. dollar index is actually higher than before the crisis. So are people now looking at the U.S. Dollar as being a safe haven currency? Probably. So what now? Well we know that for at least the next few months economic data coming out of Western countries is going to be bad with economies flatlining and grinding into negative territory across the board with gross domestic product tanking in each country
Also as we have seen in recent economic data releases coming from the United States, such as the weekly unemployment numbers, which are getting worse week on week, the markets are largely discounting this information, while betting that the U.S. economy will fare better than most in the long term once things start to recover. Therefore analysts are predicting that all western countries will record high levels of unemployment, and negative gross domestic product numbers, but the hope is that these will be short shocks and that as long as the virus is contained in a short period of time, those economies are likely to bounce back and grow strongly.
And so, the big question is how to trade the foreign exchange markets based on fundamental analysis? The best advice that we could give you is to expect the unexpected which you should do anyway, but even more so right now. Because we know that data numbers coming for all countries are going to be bad to horrendous, and some of the big players out there will completely be ignoring the data and strategize their forex trading based on technical analysis only, and that would be our advice to you too. Stay out of the market during times of economic data releases especially, reduce your trading size, and tighten your stop losses.

Tags Covid19, Forex, Fundamental Analysis, trading

Forex Videos

When Is It TimeTo Get Out Of A Forex Trend?

Post author By Keiran
Post date 24 April, 2020
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https://youtu.be/NeYEZ7K0G8w

When is a trend likely to end?

The one common thing that all traders have is the desire to enter a trade that turns into an extended rally and bags an awful lot of pips. In reality, it doesn’t often turn out like that. Trends run out of momentum, price action turns abruptly, sometimes without any clear indication as to why it happened. And Traders become frustrated with the number of stop-outs they have to endure while waiting for the profitable trades to materialize.

So what are the main reasons that trends end?

This is a screenshot of the GBPUSD pair on a 1-hour time frame. Firstly we note the extended rally of 483 pips to the upside. The rally ends at the end of the US trading session, Where us Traders will have no doubt taken their profits before the end of the session. And we’re at the start of the Asian session price action begins to fall lower. In fact, it falls 200 pips and where this trend finishes due to the US retail sales economic data figure which was released at 1:30 GMT on the 15th of April and which was – 8.7% month-on-month, and where this very poor number was seen as a fallout from the coronavirus pandemic.

Price action then turns north, where we have another rally to the upside of 138 pips and which runs out of steam at the end of the European session and part way into the US session.

Here we have a 1-hour chart of the US dollar to Swedish Krona, or USDSEK, The first trend we see is a 220 pip move to the downside, which would have been considered as oversold and where price action is reversed in a classic v-shape reversal pattern.
Price action consolidates before falling again and fading into a consolidation phase before we see a bullish trend up to a key level of resistance and where that key level is 10.000.
The next trend is lower, where we can see a lot of tails, both of the bullish and bearish candlesticks, which usually means that there is uncertainty in the market. And eventually, price action moves higher up to and above the previous key level of resistance and where this reversal is a classic v-shape reversal pattern.

Another common reason for trends to end is areas where price action stalled and reversed previously, such as this low, and previous low, which is also known as a double bottom, or an area of support.

Or areas such as double tops, where traders see that price has previously been an area of resistance and where the price will be rejected multiple times as the area is seen as a barrier.

In this example, we can see that the trend is reversed on three occasions at very similar areas of resistance and where after the third move, higher price action aggressively gets sold.
These are the types of trend fade-outs and reversals that you will regularly see on charts. But where else might you expect to see trends end? Well, there are many different reasons that trends end, but the most common reasons are time zone change over, because of technical analysis such as signs the pair is overbought or oversold or just prior to or just after an economic data release, or perhaps because of profit-taking after price action begins to fade. It might be due to the run-up to a key policymaker speech, or in the aftermath of a key policy maker’s speech. Or a reversal in price subsequent to an economic data release, an emergency or unplanned data release, or even because of rumors circulating in the market.

It might also be because of unexpected events in another financial sector, including oil or the stock market, or perhaps there are not enough buyers or sellers to maintain the momentum.
A classic sign of the end of a trend is when price action begins to consolidate into a sideways motion, and you might see this during lulls in the market or at the end of the Asian, European, or US sessions.

Traders buy and sell a pair based on their trading portfolio requirements, if they trade for large institutions, or perhaps as speculators or because their balance sheet requirements have a need to add or sell off a particular currency. Maybe they have import and export requirements. They may have just seen a good trend and jumped on it, but when their session came to an end, they closed out their interest and took their profits. The bottom line is that we never know when the balance of buyers or sellers is dominating the price action, which in turn results in price action shifting one way to the other. But technical analysis is usually a very good tool to be able to determine when price action trends are coming to an end. So keep an eye out for long tails, the possible reversal in price action, small candlesticks, consolidation, sharp v-shaped reversal patterns, time zone sessions coming to an end, or beginning. And be very careful with regard to entering a trend that has gone on for a considerable number of pips, especially in the hundreds, because if you are not correct, you could see a sharp price action reversal leaving you looking at a financial loss making the trade.

Tags Forex, Forex trends, Technical Analysis, trading

Forex Videos

How Do Forex Option Expiries Effect Price Action In The Spot FX Market – Forex Academy Shows You

Post author By Keiran
Post date 23 April, 2020
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https://youtu.be/Noc_v1bRSBU

How do forex option expiries affect price action in the spot FX market

In this video presentation, we are going to be looking at how Forex option expiries affect price action in the spot FX market.
We will be exploring how forex options work, although we will not be concentrating too much on the technicalities of how they are traded because we are more interested in how FX options expiries can be of great benefit to traders in the spot FX arena.

So what are FX Options, and what is the significance of their expiries?

FX options is essentially another way of trading forex. In effect, they are different branches of the same entity. One is traded on the spot FX, thus known as the Spot FX market, which most of you will be familiar with, and the one we are discussing today is the Future’s FX Options market, where trades are made based upon the price of a currency exchange rate at some point in the future.

So what are FX options?

Options traders purchase what is called a premium, which is a contract and which gives them the right, but not an obligation to buy or sell an FX currency exchange rate at a specified price. This exchange rate is called a strike.
Typically these contracts will be purchased for a future date, typically days, weeks, or even months in advance and where the contract is purchased from a market maker, which is usually an institution that offers futures contracts trading, unlike banks and brokers which offer spreads in spot forex. Contracts expire on the date that the trader chose and always at 10:00 a.m. in New York, USA. This is known as the New York Cut.

So how much does the premium contract cost a trader?

This will vary depending on the size of the contract and also so how far the future currency exchange rate is from the current one and the length of the future expiry date. However, futures traders often prefer this type of exposure in the FX market because they take a long term view of where exchange rates will be. And rather than swing trade to these levels in the spot FX market, they prefer to pay the price or premium for the contract upfront, and this then becomes their risk and exposure, unlike spot FX traders whose level of risk fluctuates with price action.

How do options traders make money?

If on the day of the maturity of the FX options contract at 10 a.m. for the New york cut the strike rate, or currency exchange rate, Is it at or above the exchange rate for a call option, or at or below the exchange rate for a put option, then the trader is known as being in the money. If a currency exchange rate is not hit, they are out of the money. If they are out of the money, the option expires, and the contract is worthless to the buyer, and he loses the premium.

So who trades FX currency options?

Anybody can trade FX options, but typically we will find institutions, high net worth individuals, forex traders looking to hedge positions, forward forex traders, speculators, exporters, banks, institutions, companies with exposure in the foreign exchange market generally.
Insert G: So, how does FX currency options affect the spot FX market? Interestingly, when FX options expiries accumulate into large amounts, typically $100 million +, we often find that these accumulated amounts at a set currency exchange rate have somewhat of a magnetic effect to spot FX Trader in the run up to the 10 a.m. new york cut.

Although these huge amounts of options expiring at a particular level occur on an almost daily basis, it does not definitely mean that price action pertaining to a particular pair will hit the strike rate. However, some of the traders who are involved in FX options will also use the Spot FX market to hedge some of their own positions, thus using the Spot market to try and move price to where they need it to be.

Also, these currency options expiry levels with the accumulated amounts are available via certain brokers and commentators before the expiries. Thus this publicly available information is used by Spot FX traders to keep an eye out in the market in the period leading up to the expiry. Remember, the larger the amount of the expiring contracts, the more it would seem that there is a gravitational pull towards these exchange rates.

Tags Forex, forex option expiries, Forex options, trading

Forex Videos

The Information On Oil You Need To Know! WTF!

Post author By Keiran
Post date 22 April, 2020
No Comments on The Information On Oil You Need To Know! WTF!

https://youtu.be/bKPL2ZojDWw

What’s happening with oil prices?

Crude oil, which is sold by the barrel in the future’s market where buyers take delivery on a monthly basis, reached a peak of $65 per barrel just a few weeks ago.

The May contract, which expires today 21st of April 2020, had been hovering around the $20 per barrel level yesterday for one of the producers, West Texas Intermediate, or WTI. However, it became increasingly apparent that buyers for this contract were hard to come by because of a lack of storage facilities. And when the Chicago Mercantile Exchange or CME issued a warning statement yesterday that it was possible for oil prices to go into negative territory, it sent a shock through the oil markets.
While producers remained extremely eager to sell and buyers were left standing on the sidelines, and with just hours remaining until the May contract expired, panic selling set in and, as we can see on the graph, the price of a barrel of WTI, fell through zero into minus territory. And where this had happened for only the first time in the history of the crude oil market.

We can also see on the chart that the price did recover some upside to just over $1 per barrel, but where it currently hovers slightly underneath zero at around – $2 per barrel at the moment. This price action in crude oil is unprecedented, and, as I mentioned previously, has never happened before. So what exactly is going on, and what does this tell us about the oil and financial markets in general?

First, we need to take a step back just a few short weeks ago when the world was hit by the Covid-19 pandemic. People all over the world remain in lockdown, businesses are closed, the airline industry has almost flatlined, cars are off the road because nobody is going anywhere. And every one of these sectors uses by-products of oil in the form of petrol, diesel, gasoline, jet fuel, cooking oils, lubricants, plastics, etc. Springtime has hit the west, and with the warmer weather, we need less heating oil.
An old adage springs to mind, and has never been more appropriate: supply and demand: we have too much supply and too little demand. I think it’s safe to say that we just don’t need oil right now.

Storage facilities, including Cushing in Oklahoma in the United States, are at almost 80% capacity of barrels of oil, which are only trickling out to refineries, which are also busting to overflow with the by-products that they have produced including petrol and diesel, etc.
All the time I’m big oil-producing countries such as Saudi Arabia and Russia, the USA and others keep pumping out oil, in defiance of nations asking them to ease production and where the governing body, OPEC, seems not to have enough clout to force countries such as the belligerent Russia to do so.

However, when prices of oil go into negative territory, which many of us have never even considered before, a sudden realization occurs, that producers of oil, which falls into negative pricing during a futures contract, are forced to pay buyers to take oil off of their hands at the market rate. This will be extremely painful for oil producers, who are producing a product which they cannot store because of a lack of storage facilities, and where they are hiring – at great expense – barges, and cargo ships and huge tankers, many of which are languishing in ports and offshore while waiting to go into ports to be

offloaded, and which becomes a further expense to producers. Surely now the writing’s on the wall, and that the longer this pandemic goes on, the less oil we are going to need, and therefore we should expect production to fall even further.
But is there an underline message here? Well yes, this kind of unprecedented crash in a major financial sector, albeit a blip, will send out warning signs to investors that the financial markets remain extremely unstable during the virus pandemic, and that the longer this goes on for we should expect volatility to spill over into other markets such as stocks, currencies – and especially where those countries are producers and exporters of oil, is the United States, Canada, Russia Saudi Arabia, and oil, and of course markets will be keeping a close eye on future oil contract expires.

Tags Education, Forex, Oil, trading

Forex Videos

Forex Price Action Noise! How To Analyse Timeframes!

Post author By Keiran
Post date 21 April, 2020
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https://youtu.be/5e2eicwenQQ

aThe Problem With Price Action Noise

In forex trading, a term that is used quite often in technical analysis is market or price action ‘noise.’ Quite often, we find that price action in Any Given currency pair spends an awful lot of time sideways or consolidation motion. Or where price action seems to be rising and falling in small increments, but where these moves tend to form the basis of a trend. However, the lower you go on a time frame and especially with regard to the 1-minute and 5-minutes time frame, the more difficult it becomes in ascertaining exactly where the trend is going, whether it be a part of a bullish move or a bearish move or if it is a part of a consolidation phase.

Insert A: This is a section of price action on a 5-minute chart of the USDCAD pair. We have added two vertical bars because this is the period that we want to drill down on a little bit more.

Insert B: This is the same section, but we have added 2 points on the charts at position a and b, and where the interest rate differential is 64 pips. That is to say, had you gone short at position a the maximum you would have made had you got out at position B would have been 64 pips less your spread. And of course had you bought the pair at position A and still being in the trade at position B you would have been offside by 64, pips plus your spread.

Insert C: In this section, we have added our own channel, where we can see a lot of rise and fall and tight consolidation in periods where the price is contracting within the range, but this in itself would become difficult to trade, especially if looking for trends.

Insert D, Now scalpers, while incorporating technical tools such as statistics, might argue that a few pips could be made here and there possibly based on highs with higher highs and lower lows, etc.

Insert E, But this type of technical analysis can quickly fall out of kilter in areas such as where we have highlighted we suddenly have a lower or high which is followed by buy a higher low, where we would need a lower low in order for the pair to remain in a bearish price pattern.

Insert F. This is also complicated in the area where we have highlighted where we see candles grouped together, which are both bullish and bearish and where several are more wick than candle telling traders that neither bulls nor the bears have this pair under control at this time. This is market noise. And while such noise can be seen in all time frames, the trick is to move up to a higher one to find out where directional bias might be heading.

Insert G. However if we moved to a higher time frame, such as the 1-hour time frame here and again, look at the price action within the two horizontal lines we get some more clarity about what is really happening to this pair over the time period which we have highlighted.

Insert H, And here we can see that the price action is consolidating after a rally to the upside and where we have a V-shaped potential reversal pattern within our highlighted area.
There is an old saying which I’m sure you’ve heard of that sometimes you can’t see the wood for the trees. Well, this is a perfectly good example, where in order to avoid the noise of the lower time frames, we must always look to the higher time frames to try and ascertain what the general bias is, even if you prefer to trade the lower ones.

Tags Forex, Price Action, Time Frames, timeframe, trading

Forex Videos

Forex Chart Hopping! How To Be More Consistent

Post author By Keiran
Post date 20 April, 2020
No Comments on Forex Chart Hopping! How To Be More Consistent

https://youtu.be/Qzyn-trrxgo

The Danger Of Chart Hopping

One of the biggest areas where new traders fall down is chart hopping.
They flip flop from one chart to another looking for the opportunity which will give them a chance to bag a couple of hundred pips

without fully appreciating all of the dynamics involved in technical analysis.
They think they spot a trend and jump right in and execute a trade, thinking only of the money they could make. They often make the mistake of buying at the top of the market or selling at the bottom. Think they may have spotted a trend, and perhaps they have, or it might be that some news has just come out, and they make a split second impulsive decision to buy or sell a currency pair simply based on what they’ve seen or heard.
And although they may indeed have spotted a nice trend, it could be that that trend is about to stop dead in its tracks and about to turn.
Such traders will not even bother to implement the most basic of technical analysis. It’s trading on a wing and a prayer and is tantamount to gambling.
No matter how much you think or believe that a currency pair may or may be trending, in any given direction, do not execute a trade until you have backed up your theory with tried and tested technical analysis methodology.

So when are trends likely to end? Why do trends finish reverse or go into periods of consolidation? Typically trends will start to fade and finish at the end of trading sessions, such at the end of the Asian, European or US sessions, where those traders had been buying or selling a pair based on their trading needs or beliefs pertaining to market conditions or possibly due to their balance sheet requirements or even because they are influenced due to their own country’s import and export requirements. They may have just seen a good trend and jumped on it, but when their session came to the end, they closed out their interest and took their profits.
Or it might be that they are rebalancing their portfolios by getting in and out of positions to cover market volatility in Risk on and Risk off scenarios. And where the sentiments of one session, which is ending may be completely different to the sentiment of those traders coming into a new session in a new country where they have their own various sets of requirements and beliefs about where currencies should be in relation to one another.
Of course, it could just be that trends fade for no apparent reason. It might come at the end of a 15- minute candlestick or an hourly or daily candle, which is enough to tip the balance and reverse a trend. Or it might be that a currency pair is deemed to be overbought or oversold due to technical analysis. Impending economic data releases is also another time when trains can stop for no apparent reason, or around the times when key policymakers are due to make policy statements or speeches.

One critical mistake is where traders will hop on a trend, which is absolutely great if they have done their homework and all the above mitigating circumstances are taken into consideration, but may not have factored in that perhaps a currency pair has already moved a couple of hundred pips in which case it is

quite dangerous to jump on and expect that trend to continue without some kind of pullback.
So our advice is: do not make impulsive trades based on hopping from one chart to the next. Always do your technical analysis research and make sure your timing is correct and that you have considered all of the above before you execute each trade.

Tags Forex, Technical Analysis, trading

Forex Videos

Is The Stochastic Oscillator The Key To Making Money In Forex Or Is It Loosing You Money?

Post author By Keiran
Post date 18 April, 2020
No Comments on Is The Stochastic Oscillator The Key To Making Money In Forex Or Is It Loosing You Money?

https://youtu.be/0PM1Fh9d-wI

-Stochastic Oscillator, Friend or Foe ?

Insert A, The stochastic oscillator is used in technical analysis and was invented by George Lane in the late 1950s. The indicator measures the opening price of a financially traded asset and compares it to the closing price over a predetermined period of time. Because the data uses historical calculations and plots them in the form of two moving averages, the k-line, and the D-line, this is considered to be a lagging momentum indicator. The actual mathematical complications for the tool are very complex, and we will not be going into them in this session. The basic and generally widely used settings for the stochastic oscillator will automatically be set by your broker at 5 3 3. More experienced Traders are able to adjust the settings to their preference. However, we will be leaving them at the standard settings, and that way, we will be very much going with the crowd as it were in this example.

Insert B, The stochastic oscillator is widely used by professional traders and will be offered on almost every trading platform. It can simply be dragged straight onto your trading chart and will sit at the bottom, as in our example.

Insert C: The basic principle is that the Kline which is calculated over a slightly longer time period than the D line and when both of these lines are above the 80% Overbought line, the currency pair is considered to be overbought, and when the K and D lines are below the 20 % oversold line, the pair is said to be oversold.

Insert D, traders look for the ‘k’ and D lines to have been above the 80% line in the overbought area and then dipped below the 80% line where the K-line has crossed over the d line, at which point they will go short on the currency pair.

Insert E, Conversely, traders look for the K and D lines to have been below the 20% oversold line, and where the K-line has crossed above the D-line, they use this as a signal to buy a currency pair.
One of the biggest areas that new Traders falling into a trap is that they take the stochastic signal has been gospel and trade it accordingly and then wonder why they are losing money.
And so, is the stochastic indicator a friend or foe? First, we have to remember that all indicators, and especially lagging indicators, are just that: indicators. They are an indication that the market, in this example, might be overbought and ready to turn lower, or that the market is oversold and it might be ready to move higher.
Let’s drill down a little bit more by going back to our 4-hour chart of the EURUSD pair. The longer the time frame, the more likely, the longer trend will become apparent, and that’s where the more pips will be realized, and of course, that translates into more money-making opportunities.

Insert F: By drawing a vertical line at position A, we can follow that down and see that the stochastic k and D lines have both moved above the 80% overbought area, and that’s the k-line has crossed below the d line, and both lines have moved below the 80% overbought line. This is represented by the price action which has been falling.

Insert G: Traders who sold the pair on this signal and stayed in the trade would have seen an overall pip movement in their favor of 390 pips, which is huge. The stochastic was a true friend at this point.

Insert H, However traders who abandoned the trade as soon as the stochastic became oversold, as per the example on your screen now at position B, because the K & D lines in the oversold area under the 20% line and where the k-line has crossed above the d line, they would have been extremely disappointed as the market continued to trend lower. While they would have made around 40 pips, they would have lost out on 350.
But one of the biggest problems we find with new traders is that they will buy a currency pair in a situation like this, where their trade goes immediately against them and falls
hitting them with losses of over 350 pics on this occasion because they have not supported their trade with a stop loss, due to poor risk management. In this example, the stochastic indicator would have been a foe.

Insert I, Let’s return to our chart at position C, we can see that the stochastic is oversold, and more importantly, it is staying or remaining very close to the oversold 20% line as the market trends for lower.
And so the lesson here is that if the market is overbought, it does not necessarily mean that it will automatically fall, and which is clear from how example today if a pear is oversold, it does not necessarily mean that they will turn around and move higher.
So remember indicators are simply an indication that something might happen and not that it definitely will happen. Incorporate good risk management and money protecting tools such as stop losses in your trading plan. Learn to use price action as the definitive trendsetter, while incorporating other technical indicators to more reliably established entry points for your trades. And what is most important, which I’m sure you’ve heard many times, is to let the trend be your friend and I never trade against it.

Tags Forex, Stochastic Oscillator, Technical Analysis, trading

Forex Videos

Mastery Of Forex Candlesticks In 5 Minutes

Post author By Keiran
Post date 15 April, 2020
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Become An Expert On Candlesticks In 3 Minutes

This video is the beginner’s guide to candlesticks,
where we will teach you what a candlestick is, and identify its basic properties.

Insert B:

Candlesticks are one of the more preferred methods of showing the price of a currency pair in technical analysis.

Insert C Bar charts

Insert D

line charts are also used by traders but are somewhat more simplified versions of expressing price action as a visual representation on a screen.

See Insert B! Each candlestick tells a story of where price has been and where it is likely to go during the particular time frame that it is viewed upon. It is, therefore, essential that new Forex
traders learn how to read them because they are applicable in every currency pair that you may wish to trade.

The shape and size of a candlestick, and the color, will help you to determine if a trend in either direction is in play, or if a trend has stalled and is about to reverse, or the amount of volume being traded, which will tell you you the interest from participants at any given time, and this, of course, will help you chose your entry into a trade and of course your exit, either with a profit or as defined by a stop loss.

Insert E, Candlesticks can be the color of your preferred choice. In this example, we are using a blue candlestick to denote price ascending and a red candlestick to denote price falling. There are three parts that make up a candlestick.

Insert F, the open price.

Insert G, the closing price.

Insert H and the wicks, which are also known as shadows, and which will appear on the majority of candlesticks.

Insert I

candlesticks will turn blue if the price of a currency pair moves above the exchange rate price when the candlestick first opened.

Insert J

and the candlestick will turn red if the exchange rate moves lower after the candlestick form opens.

Insert K

A blue candlestick is also known as a bullish candlestick, and a red one is known as a bearish candlestick. As mentioned previously, your broker may give you the option to change the candlestick’s colors, and this isn’t important, as long as you know which color represents the bullish or bearish direction.
Re-insert B, No matter which time frame you chose to trade on, be it a 5 minute, 15-minute, 1-hour, or daily, the candlestick will remain open for the duration of that specific time period.

Insert L

the candlestick will provide you with information on the first price traded on opening and then price direction during the particular time frame for which it is currently open. In this example, we have chosen the 5 minute time frame. And so, each candlestick will remain open for 5 minutes each. When closed it can also provide a host of information regarding the historical price action, including the last price traded for that candle, and which then can be used in conjunction with previous candlesticks to determine price direction and specifically trend formations, the end of a trend and possible reversals in price action. This is the key information that traders require to successfully utilize candlesticks in their technical analysis.

Insert M

In the context of a real chart, we have two examples, one of a bullish or blue candlestick where we can see where the price opened during the five-minute period and where it eventually closed. And also the second bearish red candlestick, showing where that opened and eventually closed.

Insert N

Initially, the price of a candlestick may change colors several times during the time frame, but the key information is left after the time frame has ended. However, the wicks or shadows, tells the trader that at some time during the time frame price may have gone above all below the initial open. Therefore, the wicks tell the trader the complete range of price action during any given time frame.

Insert O

As a general rule of thumb, a new candlestick will open at the exchange rate, where the previous candlestick closed. Gaps can appear in volatile sessions and also sometimes when there has been a break in trading, such as after the weekend break.

The beauty about candlesticks is that forex market professionals all rely on certain formations which are well recognized and offer reliable entry points into the forex market because of the high probability that certain shapes or groups of patterns of candlesticks, which repeat themselves time after time and tells traders about the state of a particular currency pair and how it is performing and whether or not there will be a reversal in price action or if a trend is forming.

So how do we use candlesticks to trade Forex? Well, we are always looking for high probability setups because it is this which differentiates traders from gamblers, and if we know that certain candlestick formations offer a high probability of future directional bias, it will be in our favor to incorporate them into our training methodology.

Insert Q

Here are just a few candlesticks that traders look out for, the spinning top, the Doji, the Hanging Man, the hammer, and the shooting star. All of these are firm favorites and offer reliable information to traders about future potential price direction.

Reading candlesticks is like reading a story, and they should always be read from left to right on your chart in order to tell you where price has been, and whether it is faltering in any particular direction. It can tell you if the market is flat or if the market is extremely volatile, and it can predict with a high degree of accuracy future price direction. Understand your candlesticks and use them like a detective, by analyzing them in great detail and using them to tell you what is happening currently with regard to price action and where to enter and exit your trades.

Tags Forex, Technical Analysis, trading

Forex Videos

Forex! Mastering Trading The Major Pairs!

Post author By Keiran
Post date 14 April, 2020
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https://youtu.be/JK2lCykUA7g

Top Facts You Need To Know Before Trading Major Currency Pairs

Insert A: In this video presentation, we will be looking at trading the major currency pairs. Like all currencies which are trading in pairs, the major currencies are traded against the US dollar.
The quotes are the same as other currency pairs, but because the major currency pairs are more popular, this means there is more volume going through when they are traded than other currency pairs, and we, therefore, tend to find that the spreads are tighter on the majors.
Before we look at which of the pairs are considered the major currencies, we should just establish what a currency pair is. All financial traders look to speculate on the changing value of a particular asset, for example, precious metals such as gold and silver and stocks and shares.

The only difference in forex trading is that you are speculating on the value of one currency against another. And this is where the value of the first currency is expressed in units against the value of the second. These units are known as the exchange rate, and the exchange rate moves up and down and is measured in pips.

Insert B: If the Euro is being valued against the US dollar, the current exchange rate is 1.09, where 1 Euro is equal to $1 dollar and nine cents. Easy enough. The best way to learn how to gauge currencies and their value against one another is to open a demo account and spend some time looking at screen charts and seeing how currencies are quoted against each other. You can even play some trades at no risk to see how the spreads differ and look at historical price action of the pairs while experimenting with some of the many technical analysis tools which are available to help try and determine future price direction. This is the safest way to learn how to trade using virtual money in real market conditions.

Insert C: Let’s look at some examples now to learn how to read major currency pairs. This is one of the most commonly used trading platforms; it’s called the MetaTrader MT4 and is widely available via most brokers.
On the left of the screen, we can see the market watch section, which is home to all the currency pairs that your broker will offer you. We have highlighted one pair, which is one of the most widely traded major currency pair, the EURUSD, by clicking on the pair in the market watch window, we can open a trading chart and drag it onto our screen which we have done here.

Insert D, each currency is denoted by its three-letter ISO, Which stands for International organization for standardization.

Insert E, The following ISO’s makeup the major currency pairs, so JPY for the Japanese yen GBP for the British pound, USD for the United States dollar, CHF for the Swiss franc, EUR for the Euro, cad for the Canadian dollar, AUD for the Australian dollar, NZD for the New Zealand dollar, and finally SEK for the Swedish krona.

Insert F, If we believed next fundamental reasons such as the European Union was about to increase their interest rates, which might be attractive to investors in Euros, we might expect that the Euro would rise in value you against the US dollar, as in this example, and where we would execute a buy trade in the hope that the Euro would rise in value against the dollar in which case we would make money.

Insert G, If only, on the other hand, we expected that the US Federal Reserve was going to increase their interest rates, which would be attractive for investors to then buy dollars, we might expect the price to fall all in this pair, in which case we would sell it.

There are a whole host of different reasons why currencies rise and fall against each other as well as economic conditions such as the strength of a country’s economy. There are technical reasons as well, and whereby traders use a system called technical analysis to tell them when the price of a pair might move higher or lower, and this would be based on factors including a currency being overbought or oversold.
Therefore traders bet against these exchange rate fluctuations where each movement is measured in pip value and where traders bet and amounts in value against the rise and fall of the exchange rate. So if a retail trader betted that the exchange rate would move up 10 pips and they bet $1 per pip, and they were correct, they would make $10. However, if the market moved down and therefore against them by 10 pips, they would lose $10 and so on.
When the unit value of the dollar is higher than an equal unit of a counter currency, the US dollar will be quoted first, such as the USD JPY pair. However, currency values can go from parity to inverted, but we’re typically the format will remain the same. The first quoted currency ISO is called the base currency. In this example, that’s the US dollar, and whereby the second currency is the quote currency.

Base currencies can be quoted as quote currencies on other pairs and vice versa, depending on which pairs are traded. Remember, currency pairs form the largest amount of volume going through the market at any given time, and this means there is a great deal of liquidity in these pairs. And liquidity and volume mean price movement. And movement means opportunities to make money trading Forex.
It is no coincidence that the major currencies belong to those countries which are amongst the richest on our planet. This means that they have a high gross domestic product due to the amount of goods and services which they provide across the world, and which has made them wealthy. Investors, traders, and providers of goods and services are continually driving exchange rate fluctuations, and this is why the best training opportunities are available on the major currency pairs.

Tags Education, Forex, Forex Majors, trading

Forex Videos

Forex Education Scams – Know the Signs! Get A Real Education Free

Post author By Keiran
Post date 13 April, 2020
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Forex Education Platforms: A Route To Income Or A Get Rich Quick Scam?

There is an old saying in the United Kingdom: Where there is muck, there is brass. Essentially, what that means is that in any aspect of our lives, no matter how grimy, there are money-making opportunities to be made. And when the forex space opened up to retail traders after the advent of the internet, one huge area opened up regarding forex education, and where so-called experts, with very little experience of how the forex market operates, decided to set themselves up as educational gurus in order to exploit would-be traders looking to make a successful go at making money in Forex.

Be warned, if you have across people offering to teach you how to trade Forex, where they tell you that you will make a truckload of cash or fast cars, perhaps showing themselves in their luxury plane, or maybe sunning themselves in a far off exotic location, it is highly likely they are scammers looking to sell you a get rich scheme with very little substance behind it.

A great deal of these so-called forex educators make their money by getting you to subscribe to their educational platforms, where they might offer you a few videos, where you can see almost identical ones for free on YouTube, and in any case, have very little backbone to them, and where often these will be trading strategies that they guarantee will make you money, and in fact, most of them will fail.

The majority of these scammers set themselves up on platforms such as Instagram, Facebook, Twitter, and the like, while relying on the pictures of their so-called wealth made from their success as forex traders in order to subdue and entice you. When, in fact, they tend to be skilled marketers, but poor traders.

In fact, the forex space is littered with many types of fraudsters. One of the biggest areas where scammers made money was in binary options, where traders were asked to bet on the rise and fall of the forex market via binary options platforms, over certain time periods which were typically anything from 1- minute up to one hour, but where the prices were manipulated on the platforms, which operated almost like a casino, where the house always won. Regulators clamped down on this very quickly and shut them down.
Weigh more and more people ripping off newbie traders by offering them comprehensive educational experiences and where most of the information provided is inadequate or not at all comprehensive, in which case could we expect that the educational space will soon become regulated? It seems to be gathering a lot of interest in a space that is beginning to resemble the Wild West.

One thing is for sure, here at Forex Academy, we will not ask you to pay for the educational material which we provide on this website. What’s more, we offer a comprehensive educational experience and cover all the aspects that you need to be a proficient trader. And the people that write our educational material and present it to you are market professionals, some of them having come from an institutional background in the forex space. And so you can rest assured that the educational material we provide is professional, and comes with a wealth of real market experience behind it.
Forex is not a get rich scheme; there are no shortcuts to becoming a successful trader; it takes time, effort, and practice.

Tags Forex, trading

Forex Videos

How To Trade Bitcoin Futures Price Gaps! 95% Assured Strategy Part 3 of 3

Post author By Keiran
Post date 11 April, 2020
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https://youtu.be/pGdV54OAZt8

Trading Bitcoin Futures Gaps – part 3/3

The last part of the Bitcoin futures price gap trading is dedicated to the types of gaps and what they represent. Not all gaps are the same, and knowing which one is which will help with using them for trading.

Types of gaps

There are four types of price gaps, and while they might look alike, they are all traded differently. It is essential for traders to differentiate between them.

Breakaway gap

These gaps occur when the price makes a strong and sharp directional move from the consolidation area. This type of gap is particularly powerful when combining it with clear patterns such as trading ranges and patterns (that we covered in previous videos). A breakaway gap that is followed by a significant volume increase is a sign of a strong trend. This gap is somewhat unlikely to be filled, at least in the short term. A low volume move is more likely to see the price returning to the area it was previously in. To sum it up, breakaway gaps are not the best for trading as they are less likely to be filled than some other types of gaps.

Common gap

Also known as area gaps, temporary gaps, and pattern gaps, they are most often seen in sideways moving markets. They are almost always filled, but the problem is that they offer very little information in regards to what price will do after this occurs.

Exhaustion gap

This type of gap is mostly viewed as a signal for trend reversals. They occur around the end of a price pattern, signaling a final attempt to hit new highs or lows. These gaps occur in markets with rapid upswings or downswings, often on a large move up or down. They are usually preceded by a heavy spike in volume. These are the gaps with the biggest likelihood of being filled.

Measuring Gap

Also known as runaway or continuation gaps, they occur in the middle of a price pattern. They are considered a signal that buyers or sellers are flocking and trading in the same direction. Measuring gaps will not occur during consolidation periods. They occur only during rapid price upswings or downswings. These gaps are not normally filled for quite some time as the push in one direction is too strong.

Mistakes when trading Bitcoin price gaps

Common mistake traders make when using gaps to trade Bitcoin is confusing exhaustion gaps with measuring gaps. This can cause a trader to position himself in such a way that they will miss significant gains that occur in the last half of an uptrend. Exhaustion and measuring gaps are quite different as they predict moves in completely opposite directions.

Keeping track of volume can help with finding the clue for distinguishing measuring gaps from exhaustion gaps. A noticeable heavy volume would suggest an exhaustion gap, while the lack of heavy volume would indicate a measuring gap is happening. It is also important to note that the filling of the gap rarely stops as there are no immediate support or resistance areas within it.

Tags Bitcoin futures, Crypto, Crypto Trading, price gaps, trading

Forex Videos

Dominating Price Action! Making You A Better Trader

Post author By Keiran
Post date 10 April, 2020
No Comments on Dominating Price Action! Making You A Better Trader

https://youtu.be/74YhTiN17OU

Dominate Price Action To Amplify Your Trading Arsenal

In this video presentation, we will be looking at price action. If you want to be a successful forex trader, you need to understand what price action is. If we had to strip forex training down to 1 single most important feature, then price action would be it. Today we are going to show you how it is applied in forex trading.
All areas of the financial markets capture the movements of any specific asset, including Forex, on a chart and where this is recorded historically. These movements can be represented as candlesticks, line charts, or bar graphs, And can be observed over varying time periods from 1-minute or 5-minute time frames, all the way up to monthly charts. This data reflects the beliefs of market participants at any given time, whether they are human or algorithm-based traders, which is shown on the charts in the form of price action.

Price action is the methodology of applying all your decisions from a price chart while adhering to some basic trading principles. Price action is often called naked trading because traders rely on the price itself in order to denote when to enter and exit trades. However, by adding a couple of moving averages and some support and resistance lines, it becomes much more easy to identify key levels of support and resistance to trade around. Ideally, as a trader, we want to try and identify tops, bottoms, and trends. And this methodology is an extremely important feature in identifying these key areas.

A couple of old adages come to mind which lends themselves very nicely to forex trading: the first one is that sometimes you can’t see the wood for the trees, and where that can be applied to Forex in so far as sometimes traders overload their screens with technical tools and they cannot really clearly identify what is happening with the price action because they are too focused on too many technical tools. And the other adage is sometimes less is more, and that applies for the same reason: by stripping away technical tools, we can only rely on price action itself, which is a key leading indicator in its own right. While in this example of the EURUSD pair, we can quite safely say that during this period of the 1-hour chart, the general trend was to the downside, but how can we pick this out by utilizing price action itself?

Example B, the Price action of a pair is in continuous motion apart from interruptions during the weekends. Otherwise, price is consolidating or moving in a sidewards direction, or it is trending higher or lower. As traders, we should be looking at what is happening with price action at any given time and then try to establish if the price is trending, or if it is in a period of consolidation, or even a pullback before a trend continuation.
Price action alone can help us determine these areas, but by adding a couple of visual supports such as some trend Lines, it just makes it more easily identifiable. For this example, we have just added two very simple lines that help us to more clearly identify levels of support and resistance. Here we can see a period of consolidation, which is qualified by price action touching, or is very close to touching at least two areas of support and resistance, which are clearly identifiable such as drawn onto our chart.
One thing is for sure that price action will breach this area at some future point. This is a key area of interest for traders.

Example C, Here we can see that the support line has been breached by a strong bearish candlestick. Traders will jump on this opportunity to go short on the pair at this point.

Example D, We subsequently see another area of consolidation and a further breach to the downside, and where traders would expect that a downtrend is in process, and they would be looking for opportunities to go short.
Whilst stochastics, MACD, and moving averages are widely used throughout the trading community, many traders feel that price alone can be relied on for identifying trade opportunities, and certainly, these couple of examples would support that.
But of course, as cautious traders, we like to stack the odds in our favor, and if that means adding a couple of extra visual technical tools that will help us well, what’s the harm in that?

Example E, Here, for example, we have added a simple 30 period moving average. Notice how the price action tends to bounce lower off of this line, while price action continues in its trend lower.

Example F, I know the world price continues to consolidate and punches lower through support lines and where support lines become lines of resistance, but all the while price is bouncing lower from the 30-period ma.

Example G, Price action also throws up another favorite for traders: highs with lower highs and lows with lower lows which identify a downtrend, and where the opposite would apply for an uptrend, where they would be looking for highs with subsequently higher highs and lows with subsequent higher lows. But again, these key areas are clearly evident on the screen, even with price action alone.

Example H, Price action Traders will also observe higher time frames, in this example, we are looking at a 4-hour chart of the EURUSD pair, traders try and establish what is going on with price action on the longer time frames because this will filter through to the lower time frames and where they will look for opportunities to jump on the overall trend should there be one.
Price action becomes repetitive, and this is because human nature in trading tells us that certain things are likely to happen at certain levels, typically key levels or round numbers, and if these things are recurring on a regular basis, human emotion would suggest that they are likely to continue to recur and therefore trading sometimes becomes a self-fulfilling prophecy where certain price action events, in the absence of fundamental reasons, is likely to continue in this vein. Price action levels become significant because market participants give significance to them.

In summarising price action who is the most significant aspect of Forex trading, and where by just using the minimum amount of technical tools you can more easily see areas of price consolidation, within resistance and support levels, and when these areas are breached we may see a continuation in price action in the direction of the breach, and by incorporating a simple moving average it can more easily help us to identify a trend. And that these very basic mechanisms are highly favored by professional and institutional traders.

Tags Forex, Price Action, Technical Analysis, trading

Forex Videos

Forex Timeframes & Trading Windows – Which To Choose!

Post author By Keiran
Post date 8 April, 2020
No Comments on Forex Timeframes & Trading Windows – Which To Choose!

https://youtu.be/j9EPrTRVg6s

Time frames And Trading Windows Tricks – Maximize Opportunities With Overlap

In this video presentation, we are going to be looking at time frames and trading windows. Although these two subjects are separate by looking at them together, we hope you will see the importance of combining them in one section.

When it comes to time frames, new traders are often confused about which time frames to trade and why. So let’s look at three different types of time frames and traders who prefer to use them.

You will most likely be trading on a short-term, medium-term, or long term time frame, depending on your preferences, including your strategy, lifestyle, and the size of your trading account. Everybody is different, and some traders may use a one-time frame or a combination of all three.

But this can cause a lot of confusion for new traders when they begin to develop their trading strategy. Many new Traders tend to want to be in and out of a trade very quickly, which means they fall into the group known as scalpers and tend to use 1-minute and 5-minute time frames.

Other traders tend to want to look for longer-term trends, but do not want their trades to roll over from one day to the next, in which case they might prefer to use 15-minute to 1-hour time frames, and these are known as intraday traders, and larger professionals, including institutional traders, will have a longer-term view and look at 4 hour time frames up to daily, weekly and even monthly time frames. These are commonly referred to as swing traders.
Scalpers team to only use 1-minute and 5-minute they might only be in a trade for 1 to 2 minutes. Whereas day traders might be in a trade all day long, and institutional long-term or swing traders might be in a trade for days, weeks, months, or even years.

One of the reasons why trading can be inherently difficult is because all of these traders have different ideas about where the price of a pair is heading based on the various time frames that are used by the various groups of time frames, and therefore the majority of them will all be trading at odds with each other, not only within their own time frame but the other time frames as well.

No matter what time frame you choose to use, it is always advisable to look at the longer-term time frames before you place a trade and then filter down to the time frame that you want to use because a great deal of price action sentiment can be gained from doing so. This is the only way that you will be able to see if trends are developing and trade accordingly. You may have heard of the phrase let the trains be your friend, well this is the best way to find a trend, by looking at a higher time frame than the one you want to use and then filter down once you have established what is happening to price action overall.

Example A. Traders can look to the higher time frame, such as the daily or weekly charts.

Example B. In order to establish what is happening with price action and to find out if trends are available or forming and then simply move down to their preferred time frame. By doing this, they will also be able to more clearly see prominent support and resistance areas which may be being observed by institutional traders, because, after all, this is where the real money is. Institutional traders are the ones that move the market. And so it is always advisable to know what they are doing at the higher time frames.

In summary, the type of time frame that you choose is dependent on the type of trader that you want to be, whether it is a quick in and out scalper style, or perhaps to take a longer longer-term view. But however, you trade it is always advisable to look at other time frames especially, especially longer-term ones than your preferred time frame, in order to help you pick your trade entry more easily.

Next, we are going to look at trading sessions. The forex market is broken up into major trading sessions.

Example C. The Sydney session, the Tokyo session, the London session, which includes Frankfurt and a New York session. The forex market is open between 10 p.m. Sunday evening GMT and runs all the way through until 10 p, GMT on Friday, non-stop. However, the main centers will typically open at around 7 a.m. their time and finish at around 5 p.m. In other words, business hours. And where we can see on the graph that some of the sessions overlap.
That more centers overlap means that there are more players in the forex market at that time, and this means extra volume and liquidity and, therefore, greater moves in price action or potentially happen during these overlaps.

In summary, the best times I’m two trees are when two sessions overlap, and most volume and liquidity is provided during the London session, which includes Frankfurt and is also known as the European session, and where this overlaps with New York. This is the time of most activity. Generally speaking, in the forex market. Please remember to adjust your trading to reflect the seasonal changes due to daylight saving hours. The middle of the week tends to be the busiest because this is where we find more economic data releases normally. These affect market volatility.

With the worst times to trade being Sundays and Fridays, especially after the US session, public holidays where markets are thin, and volume is low, which means spreads will be at their widest, and during major news events where the markets can be extremely volatile.

Tags Forex, timeframe, trading, trading window

Forex Videos

Become A Better Forex Trader By Utilising The Economic calendar

Post author By Keiran
Post date 8 April, 2020
No Comments on Become A Better Forex Trader By Utilising The Economic calendar

https://youtu.be/39wMrQXLydI

https://youtu.be/39wMrQXLydI

Unlock The Hidden Secrets Of The Forex Economic Calendar

In this video presentation, we will be looking at the economic calendar pertaining to the forex market and how It can be extremely useful to traders who implement the knowledge in their fundamental analysis.

Example A, The economic calendar is a fundamental resource that tells traders about economic data releases, which are due to be released by governments or independent research establishments, which collate statistics pertaining to the economic activity of a country and whereby these statistics are released daily, weekly, or monthly. Such data varies in importance to the market from low risk to medium and high risk. The higher the risk, the greater potential for extra volatility impacting those associated currencies whose countries have released the data, and of course, this will likely affect every pair traded and even, on some occasions, have a knock-on effect on other currency pairs as markets adjust to risk sentiment post-release.
Economic calendars are widely available, and where most brokers will provide one. Here we are looking at the economic calendar as provided by the broker EagleFX.

Traders keep a careful eye out for the events in the economic calendar, which are scheduled for release because these events can help traders plan trades throughout the days, weeks, and months, depending on their style of trading. They use the released data to set up trades while also mitigating against risk.
The most keenly observed data releases and the ones which potentially cause the largest amount of volatility post-release are gross domestic product updates, interest rate decisions by central banks, and on the first Friday of each month nonfarm payrolls, which relate to unemployment in the United States.
Learning you to navigate the economic calendar will save you time. It is generally displayed in a linear fashion, on an hour by hour and day by day basis.

Example B, Information is key when trading currencies, and economic calendars are a fantastic tool to keep you informed of major news events in the diary and will potentially greatly enhance your trading.

Example C, In this example, we can see that on Tuesday, April 7th, the Royal Bank of Australia is to make an interest decision at 4.30 AM GMT and where the importance is signified by the red lines, which indicates this as a high-risk event. Traders will be keeping a close eye on the Australian dollar and associated currency pairs being traded against it leading up to and just after any announcement by The Royal Bank of Australia.

Example D, The flag beside the type of economic data release denotes the country that is releasing the data, in this case, Germany.

Example E, And the time of the release is usually on the left-hand side of the calendar. This is typically the time of the source of the release.

Example F, So here we can see that in this example, the Netherlands will be releasing its consumer price index year on year for March 2020 and where this information will be released as low importance and is not likely to affect market volatility.

Example G, In this example, the Japanese will be releasing leading economic index preliminary data for February and whereby this information is medium risk and Michael’s market volatility.

Example H, Another important feature of an Economic Calendar data release information which is highlighted here. The previously released data pertaining to the country in question is available on the calendar in the lead up to the current release, and also some brokers will show a market consensus of the data as suggested by various analysts who suggest what they believe the figure will actually be. Upon data release, the actual figure will be updated on the calendar in a timely fashion. The majority of data releases are subject to an embargo where institutions are not allowed to benefit from data, which could cause insider dealing in the markets. While all of this may seem slightly daunting to new traders, it is important that you understand the significance of fundamental data releases and how they will help you to become a better trader.

Example I, As you become more knowledgeable, you will learn how to filter out various parts of the economic calendar which you may deem as not so important, and these can be reduced to certain countries data releases, and therefore their currencies being emitted to your calendar or even filtering it down to only high-risk news events being shown on your calendar.

Example J, Here we have filtered out all currencies apart from the Great British pound and the United States dollar for our calendar for next week. This is a great option for traders who only trade the GBPUSD pair, also known as cable. The economic calendar is, therefore, a customizable tool for your convenience.
Failing to observe the release of economic events is inherently risky. If economic events happen and you are not aware of them, it could dramatically affect any open trades or trade ideas which you may be about to set in place.
Therefore it is vitally important that you incorporate the economic calendar into your daily trading routine. Make a habit of checking it in the morning, and in the evening, It will pay dividends in the long run.

Tags economic calendar, Forex, Fundamental Analysis, review

Forex Videos

Combine Fundamental &Technical Analysis To Master Forex

Post author By Keiran
Post date 6 April, 2020
No Comments on Combine Fundamental &Technical Analysis To Master Forex

Combine Fundamental & Technical Analysis To Master The Forex Market

In this video, we will be looking at combining fundamental and technical analysis, which are the yin and yang of forex trading. Professionals, including institutional traders, tend to take a balanced approach when incorporating fundamental and technical analysis into their trading. Whereas some professional traders will lean towards fundamental analysis and incorporate technicals into where they see price action going based on current or future economics. However, many retail traders tend to lean towards technical analysis.
Traders who wish to be more rounded need to take both of these into consideration in order to be more consistent, and this involves having a good knowledge base of both.

Fundamental data releases can offer us the directional bias when trading. As well as waiting for the release, markets will often anticipate price action direction leading up to an economic data release, especially if analysts believe the data is going to be above or below expectations. And therefore, it is important to try and second guess what the markets are expecting in the run-up to the release and then where price action will go once the data has been delivered into the market. For example, sometimes market data might be worse than expected by the markets, and yet price action goes in the reverse direction as you might expect. This is one of the reasons we see a lot of volatility surrounding high-level data releases, which is because people have varying opinions on the effects of the data.
However, traders are advised to play the probability game; i e., if the market data release is bad, we should expect bearish price action, and if the market data is good, we should expect bullish price action. If technical indicators subsequently work in line with the data, and in line with the fundamentals of the data release, then we should trade accordingly Having pinpointed an ideal entry. This way, we will be stacking the odds in our favor for a successful trade.
There are many ways to incorporate fundamental and technical analysis into your trading, but in this video, we will be looking at three methods.

Method 1, Involves breakout trading with fundamental analysis, which capitalizes on training when a section breaks outside of its trading range.

Example A, the catalyst for range breakouts is usually due to the release of market data news events And where such data causes extra volume to come into a particular currency pair yeah and push it outside of a consolidation range into new highs or new lows depending on the nature of the release. Because data releases can cause extra market volatility, it is always wise to air on the side of caution when trading around such events. Previous support and resistance levels can be breached, and a great deal of uncertainty can enter into the market, and at this time, it is always advisable to use tight stop losses.

Example B, Once our support or resistance line, is breached on an economic data release we can assume that the market has taken the data in one of two ways, and in this example, we have a dovish stance towards the Canadian dollar and whereby this particular pair, the USDCAD, has reacted in a bullish direction. Therefore we have bad economic data coming into the market about the Canadian economy, and this is supported by a price action breaching the line of resistance and where price action subsequently moves in an upward direction and whereby we should only be considering a buy trade.

By planning around data releases, we can look for technical breakouts, adjust positions accordingly incorporating tight stop losses, and even utilize the data release to leave us in a trade in order to maximize profits. Remember, the art of trading is to latch onto trends because that is where the most amount of pips are to be gained.

Method 2 combines range-bound trading with fundamental analysis.

Example C, Range bound trading involves identifying a trend with the use of a couple of simple Lines, which show us support and resistance levels and areas where the price is likely to bounce off of the support or resistance in order to maintain the price action range.

Traders use the support and resistance lines to buy at the support line in an ascending trend and to sell at the resistance line in a declining trend. Example D, This example shows a chart with a strong bearish trend.

We do not want any news data release to potentially adversely affect our descending trend and interfere with our profitable trade. Therefore, ideally, we would look to not have open trades surrounding data releases, especially if they are potentially of a high impact nature. Therefore precautions should be taken to avoid trading around high impact news events, but if you find yourself in an open and profitable trade with a looming data release, which might be of high impact in nature, we suggest you close the trade, or partially close the trade, or insert tight stop losses in order not to reverse the profits you have made on a successful range bound trade.

Method 3, Using oscillators with fundamental analysis. Example E, Oscillators are often used in technical analysis. They are often used to establish overbought or oversold conditions. Here, in this chart, we can see one such oscillator, the RSI, or relative strength indicator.

Example F, By incorporating oscillators such as the RSI, we are easily able to identify areas where price action might reverse having been oversold or overbought, and if these coincide with support and resistance lines on our chats, we must be aware of this and be prepared to take the necessary action. However, should these also coincide with new data releases, we should give them extra emphasis because even if the data goes in line with our chart, and yet our charts are telling us that the market is overbought or oversold, we could see conflicting price action.
Therefore please take all of these into consideration when setting up your next trade and consider adopting some of these methods into your trading strategy. Remember that new data releases, especially of a high-impact nature, can cause extreme market volatility.

Tags Forex, Fundamental Analysis, Technical Analysis, trading

Forex Videos

Forex Passive Income – Make Money In Your Sleep!

Post author By Keiran
Post date 3 April, 2020
No Comments on Forex Passive Income – Make Money In Your Sleep!

https://youtu.be/_gtxmUZBwI8

Passive Income In Forex Trading

Example A In this video, we will be looking at The process of making income in the forex market, It’s processes Methods for doing so and whether or not it is a viable method for you to increase your income, Including the risks involved in doing so.

Example B, So what is the difference between passive and active income? Active income is something where you might expect to earn money in regular employment, whereas passive income is irregularly made income, which requires little or no effort. In this context, it would mean that minimal effort is made by the trader in order to earn extra income outside of their normal job. Examples of passive income would be profits made from gambling, stock markets, Interest on investments, or capital gains are just some of the examples, where some definitions, especially with regard to taxation, will change from country to country.

Example C, Active income within the forex arena is where a trader will spend a long time looking at economic data while carefully assessing fundamentals and then checking technical patterns on charts before executing a trade in order to earn income.

Example D, Passive trading is where you want to make money in the forex market. But you do not actually want to go through the processes of learning everything about it and also spend time analyzing the markets via your charts, keeping on top of fundamental analysis. In this case, you may have to pay a third party a monthly fee. And unlike active traders, your trading will fit around your job and lifestyle.

Example E, Let’s look at the pros and cons of active vs. passive trading. Obviously, with passive income, the most important benefit is the amount of time you would have to commit to trading, which would be less than that of an active trader. However, this will often result in earning less money than an active trader. However, opting to spend less time monitoring your trades might expose you to extra risks. It might also be detrimental should you desire to follow a signal service that offered signals with timeframes that did not suit or fit in with your lifestyle. Unfortunately, the Forex Marina is often fitted with scam artists who operate Ponzi schemes and offer signals that are completely unreliable, and these should be avoided at all costs when considering passive trading.

Example F, So how can we earn money passive trading the forex market? One example is automated trading technology which is a trading robot that can be downloaded onto your computer and automatically places trades, setting its own stop losses and take profit levels. These are also known as EA’a or expert advisors. Some of them are very reliable, while some of them are not and you will need to do a lot of research before investing in the right EA for you. Banks and institutions are using these automated trading systems more and more and they are becoming extremely powerful tools with learning capabilities that adjust to various market conditions. It’s just a matter of finding one that suits your budget and expectations. And while the human brain can only analyze a few opportunities to trade during the day, a sophisticated algorithm can filter out profitable trades many many times each day, once a predetermined criterion has been met by the software program.

Example G, Of course, no matter which automated trading robot you decide to invest in, it will still need to be closely monitored. You would not want it to run away with itself losing you money. And while many people are skeptical about these automated trading robots, it is a statistical fact that over 75% of trades on the New York Stock Exchange are now made by these robots, and 70% of banks and institutions now opt for automated trading systems in Forex.
So if you are confident to take the next step and invest in an automated trading robot, we suggest that you carefully monitor it and make sure that it is operating within the perimeters that it was advertised to do and meet your criteria. It would also be a good idea for you to turn the EA robot off during times of high impact news, especially in the current climate where the COVID- 19 pandemics is sending trading shockwaves through the forex market on an almost hour-by-hour basis. Yet the trading robots are still in action while making money for their owners.
The accessibility of EA’s is now so Commonplace that even active Traders are able to program their own trading robots to open and close trades based on the parameters that they set. Some software developers will also work with you on a personal basis in order to develop such an algorithm once again that meets your criteria. This is certainly a growth area that he said to expand within the forex arena.

Example H, Next, we have copy trading. Again this is very suitable for passive traders where they simply subscribe to a copy trading service such as Signal-start or ETorror, and where their accounts can be automatically set to copy the trading accounts of traders who offer their services on their platform. In effect, every trade that they take on will be automatically copied onto your trading account, and where you will mirror their trades. If they win, you win, and if they lose, you lose. You can, however, adjust your risk parameters around their trading, and if they consistently make money, then you can increase your leverage to maximize your profits. The copy trading platforms offer a detailed trading history of their traders, and it is advisable to filter through each trader and seek out the one that is consistently making money while being risk-averse, and where this can be established by the level of drawdown that they are prepared to accept on their account. The lower the percentage of drawdown equals means the lower their risk tolerance is. You would typically pay a success fee to the copy trading platform, and perhaps a monthly fee and the trader will require a monthly fee also and sometimes this will be based on a percentage of winning trades and sometimes this will just be a monthly fee whether they make money or not, and sometimes this is a blended fee structure.

The example I, While this might seem like a perfect solution to a passive train, there are risk factors to consider. The forex market is fraught with risk, and again the current market climate pertaining to the COVID-19 pandemic is very relevant. Even Traders with an exceptional track record can make mistakes, and this could lead to your account being wiped out or even sending you into negative equity on your account if your trading platform does not protect you from this.

That might mean that they will be sending you an invoice for any monies that have been lost on your account due to a negative balance situation.
Therefore choose your trader carefully, as mentioned earlier, a few aggressive wins might give you peace of mind initially. Still, if this flips around into massive losses, it will adversely affect you, not only monetarily, but also psychologically as you tried to come to terms with losing money.

Example J, The next thing that passive traders utilize is forex trading signals. These services are offered via websites, text, and social media platforms. These forex signals are used by passive traders to enter trades based on the information that they receive or observe via one of these platforms and where they then manually use that information to place trades in the forex market.

While some signals are sent out by reliable, professional traders, many such service providers have little or no clue about the forex market, and some of these will be scams where they ask you to subscribe on a monthly fee-paying basis only to send you unreliable trading signals. Therefore do your homework about the signal provider, and if they charge a fee ask for a free initial trial, I’ll and watch for the reliability of the signals and only use them when you are able to ascertain that the information is consistently reliable.

Here at forex Academy, we offer a free signal service and where the signals are provided by professional traders and whereby we offer a detailed analysis with visual representations of why the trades have been taken, or in the case of pending orders why they should be taken. Most of these setups will be centered around professional and widely accepted and used technical analysis skills and sound fundamental analysis. And what is more, this service is offered absolutely free of charge.

In conclusion, passive income in the forex market is an extremely attractive option with many various ways to implement strategies such as copy trading, EA’s, and professional trading signals. And while there is a lot of research to do to establish which area is suitable for your lifestyle, after some detailed homework we are sure that you will find opportunities that suit you.

Tags Education, Forex, Passive Income, trading

Forex Videos

Is Forex Gambling? The Harsh Truth!

Post author By Keiran
Post date 2 April, 2020
No Comments on Is Forex Gambling? The Harsh Truth!

https://youtu.be/K2KtSnNdNwg

What Is Forex & Is It Not Just Gambling?

There has been an explosion in interest in forex trading since the advent of the retail Forex market, which opened up after the internet was born.

Example A, Much hype has been made of people making fortunes from forex trading in the retail space. So is it all true, or is it a fabrication, and is it really easy to make money trading Forex? Unfortunately, wherever there is money involved, there will always be fraud, and therefore you will find a lot of scams in the forex retail space within social media sites such as Youtube and Facebook and Instagram, etc. People upload videos onto YouTube telling you that they will help you make a fortune and then, of course, they want to be paid money for their education programs or perhaps trading on your behalf with your money, when in actual fact they are ill-equipped and do not care about making a profit for you, they are simply out for your subscription fee or investment funds.
And so the forex world may conjure up ideas of easy money and wealth, with flash cars, luxurious houses, jet-set lifestyles, and exotic holidays. That is the reality Far from the portrayal that many of these scammers would lead you to believe?
In truth, the forex market is a skilled profession. There is a steep learning curve to go through to understand how this industry works. It is a highly complex and extremely fluid marketplace, Where over 5 trillion dollars are traded every day and which is interconnected throughout the financial markets With other asset classes such as stocks bonds, precious metals commodities, and oil. You would not strip a car engine down if you had not been to college to learn about car mechanics and you would not attempt to build a house without first learning how to do so, and you would not try and operate on a human being without first learning all the processes, having been to university. And the forex market is exactly the same: you must learn about economics and the fundamentals surrounding the government’s financial policies of the countries whose currencies you wish to trade in. You will need to learn how to look at trading charts, in what is called technical analysis, to learn how currencies, which are always traded in pairs, are moving against each other, in order to successfully find the trends and trade them accordingly.

Therefore the effort that you put into accumulating the relevant knowledge is the only way that you will be able to successfully and consistently make money trading Forex. Once you have learnt everything that you need to be able to trade successfully, you will then need to backtest your results and forward test them on a demo account before you risk losing your hard-earned money trading in the marketplace for real. Therefore there is no quick fix strategy on how to make money trading; anything short of what is necessary means that you will simply be gambling. And the forex market can be deadly if you slip up.

So how does this market work? The Forex or FX market is an international exchange that is un-centralized, which means that nobody is in charge of it, and where currencies are bought and sold against each other in pairs. We are over 5 trillion dollars being traded from Monday to Friday, 24 hours a day. It is the most liquid business on the planet. There are specific windows when the volume is higher than at other times during the day, and these are the best x to seek out trans in currency pairs and where traders look to latch onto a trend because this is where the real money can be made due to the increased volume going through at these particular times.

Example B, Just like other commercial areas, fluctuations in currencies are largely driven by supply and demand. If you have too much of a product, it tends to be cheaper, and where a product is difficult to obtain, it becomes more expensive, and this can be true with currencies.

Example C, So when there is a surplus of a particular currency, it becomes cheaper to obtain And may fall against a particular counterpart currency.

Example D and the opposite is true when demand for a currency increases and there are fewer sellers, in which case the price of the currency will become more expensive against its counterpart currency, and the value of the currency will therefore rise.
So how do we apply this demand and supply scenario to the forex market? Each time a currency is bought, surplus demand is created within the market, which subsequently pushes the price of balance, and the price will rise.
And each time I currency is sold, a surplus supply is created. And this time the opposite is true, it throws the market price off balance and pushes the price down.

The Amount that the price moves up or down during these situations is dependent on the amount of volume going through at any particular time, and this fluctuates during the day, and where during those periods where extra volume is experienced during the busiest times of the trading day. Therefore the biggest likely market moving generators tend to be central banks, large financial institutions, large hedge funds, sovereign wealth funds, and whereby the retail sector has a much smaller impact on price fluctuations due to the fact that they only make up a very small part of the forex market.
These constant price fluctuations in the forex market are the main driver for how traders make money in trading. The economic events in the world are constantly changing, where government policymakers adjust their financial policies in relation to the swings in the fortune of their countries’ which affects their gross domestic product and whereby economic data releases, which come out on a weekly and monthly basis are the main drivers as to why there are consistent movements in price action pertaining to the balance of supply and demand for each currency.

Because currencies are always traded in pairs when trading, you are betting on the value of one currency against another moving up or down based on the underlying supply and demand for each currency.

Tags Forex, gambling, trading

Forex Videos

Win More Forex Trades With The Speculative Sentiment Index!

Post author By Keiran
Post date 31 March, 2020
No Comments on Win More Forex Trades With The Speculative Sentiment Index!

https://youtu.be/nYAvF4tj3UA

.Speculative Sentiment Index Index (SSI)

In this presentation, we will be looking at the speculative sentiment index and its significance in the forex market. If you have been researching some of the technical indicators that Traders use, such as the stochastic oscillator or perhaps the Bollinger bands or MACD, you will realize that the majority of them are lagging indicators. That is to say that the data they imprint on our computer screens are based on the previous or historical data, which it uses to plot the various graphs, moving averages and plot lines onto our charts.

Although this information, when carefully analyzed, helps us to determine to a great degree the potential future movements of price action, the very nature of such lagging indicators does not necessarily tell us what is happening at this very moment in time. Whereas price action, which is itself one of the only few leading indicators of price direction, does.
Although this does limit our trading ability to a certain extent, professional traders learn to marry the two together in order to tip the scales in their favor when it comes to pulling the trigger on trades.

Of course, the absolute perfect solution would be if we all traded the same way at the same time. This would be a perfect solution, but of course, it does not happen like this, because of the many different time frames being traded and the many different types of traders, from scalpers to intraday and swing to long term traders. But what if we could take a snapshot of what other traders are doing at any given time, and if we knew what they were doing, and if we could see statistically whether they were more long or more short on a particular pair, this would give us an added advantage, would it not?
This is exactly where the speculative sentiment index comes into play. It should be considered as a leading indicator, along with price action, and incorporated with your other technical tools to help you decide when to trade. So let’s take a look at how it works.

Example A, The speculative sentiment index or SSI is the accumulative trading positions data, which is captured in real-time by various brokers, as there is no central exchange.

Example B, The broker will then filter the information and offer it in graph format where each pair tells traders whether there are more buyers than sellers or vice versa. The information is provided as a ratio between the two groups.

Example C, If we know that there are more buyers or sellers on a particular currency pair that we are interested in trading, it can help to influence us either to take the trade or maybe even to wait on the sidelines. But one of the problems with the SSI is that the information will very likely differ from broker to broker, and from time frame to time frame, in which case it might be advisable for you to check two or three SSi’s on various brokers to help give you a clearer overall picture of which way price action is leaning.

Example D, Some SSiI’s provide more information than others. For example, you might expect to see the positioning, including the ratio of long to short.

Example E, The open interest

Example F, And the change between long and short positions

The more information, the better your decision-making processes will be.

Example G, Next we are going to look at how to use the SSI.

Example H, The positioning statement is one of the most utilized aspects of the SSI report.

Example I, Here we can see the numbers of traders who are long or short on a pair, and in this example, we can see that this broker offers the change in open interest, which is currently – 2.8% for the EURUSD pair. So for every one trader that is holding a long trade in this pair, there are 2.81 traders who are holding short positions. Any position that shows a minus in front of the number represents the number of short positions, while readings that are above zero represent the number of traders who are net long in the pair.

Although the SSI is a leading indicator, it is considered to be contrarian, that is to say, that the information that is supplied by the broker should be used to trade against the retail traders with currently open positions.

Example I, The rationale behind the contrarian aspect of this indicator using the 2.8% of EURUSD traders as an example who are short, means that eventually, the sellers will need to close those positions – by buying the pair to exit and because we know there is only one buyer for every 2.8 sellers, this position will eventually turn as the sellers close out their traders and leave a buying void behind them. And the opposite would apply if there were more buyers than sellers. To maximize the reversal potential of this indicator, it is advised to use it when there is a high ratio of change between the buyers and sellers.

Please remember to check SSI’s on a regular basis because some of them will be updated by the broker on a daily time frame basis, whereas some will update them once an hour or even every 20 minutes. It is important that if you decide to use this information to trade that it is as up-to-date as possible. Only then will it help you to determine whether a particular currency pair is bullish or bearish.

Tags Forex, SSI, Technical Analysis, trading

Forex Signals Forex Videos

Free Signal Service! Forex Academy Are Putting Our Money Where Our Mouth Is!

Post author By Keiran
Post date 30 March, 2020
1 Comment on Free Signal Service! Forex Academy Are Putting Our Money Where Our Mouth Is!

https://youtu.be/HONObvLNczg

Welcome to our Brand-new Live Signal Table!

In its effort to help traders learn while profiting from the Forex markets, Forex Academy is proud to offer its users our premium Live Signal table at an unbeatable price: 100 percent free!

The fact it is free to all who subscribed to our notification service does not mean ours is a C-quality service. We have a team of top traders who will continuously watch the market to deliver top-quality trade ideas for you. The resulting trades can be monitored live in our signals section, which will show you the current situation of live trades and the total pip count gained or lost by our traders.

Table guide

In the image, we can see the information provided:Date/time shows the Date and time when the trader created the signal. But that does not mean the signal is live. That will depend on the order type of the signal.

We can create several order types. These are shown in the Order Type column.

The different orders are the following:

Spot buy, Spot Sell: these two are market orders. In this case, the signal is live at the moment shown by the Date/Time column.

Buy Stop, Sell Stop: These are pending orders meaning the order is pending until the price reached the stop level. The price on a buy-stop order is placed above the current market level, whereas a Sell-Stop order is placed below the current market price. a Stop order is a usual way to capture a breakout.

Buy Limit, Sell Limit: These are also pending orders. In this case, a limit order intends to capture an entry at a pullback of the price. That means a buy limit order is usually below the current price, and a sell limit is above the current price.

To recap: If the order is spot, the signal becomes live immediately. If the order is pending, it is, well, pending, and it will be live at the moment the stop or limit condition is fulfilled.

The Asset column tells the information of the currency pair

The Method column will link to the article explaining the trade idea, which will describe the technical details and main levels. We also will include the risk per lot, mini- and micro-lot, so you can adapt the position size to your current trading account balance.

Then the table shows the price entry, stop-loss, and take profit levels. This will completely define the trade.

The R/R column is the Reward-to-risk ratio. This is a key metric for the long-term profitability of any system, and we like our signals to show ratios higher than one, preferably two or more. However, if the likelihood of the trade is high, we can present R/R of 1.

Price shows the current live price of the assets of the table. Closing Date/time will show the closing time of the trade. If the trade is closed, the price column will display its closing price. If the trade is still open, the field shows nothing.

The Pips column shows the total pips gained or lost.. If lost, the price box is red-colored. On assets with positive pips, the box is green-colored. The figures shown are updated in the current live trades. On closed trades, it shows the final pip count.

The Notifications

Our interested users can subscribe for notifications for free, as said earlier. The members of our subscription list will receive push notifications for the following events:

When a new signal is published

When a pending signal becomes live

When a stop-loss is hit, and the trade is closed

When the take-profit is hit, and the trade is closed

When we manually close the trade

How to subscribe

The subscription is quite simple. You don’t need to supply any information. Just click the notification bell located at the bottom right of the Signals page and you’re done. It will touch you every time there is a novelty in the Signals section, as mentioned earlier.

Do not doubt and subscribe!

Tags Forex Signals, trading

Forex Videos

Forex! How To Make Money During The Coronavirus At Home

Post author By Keiran
Post date 28 March, 2020
No Comments on Forex! How To Make Money During The Coronavirus At Home

https://youtu.be/Vy17E2-fues

How to earn a living during the Coronavirus while stuck in isolation

There is no shying away from the fact that we are currently living in unprecedented times. With governments across the world instructing businesses to close their doors, forcing people out of their jobs, as well as being ordered into self-isolation, which will leave many people facing huge debts, and many will go broke with some people losing their businesses and even their homes.

This is not fear-mongering; this is an absolute fact. The world is facing a global recession and a financial meltdown. And things will not improve until such time as the virus has been beaten and vaccines are made available. And because of the unknown nature of the virus and the fact that vaccines can take many months to bring to the market, the dilemma that faces the world is that this is too much of an unknown to be able to say when things will return to normal.
However people are adaptable and will search for opportunities to make a living, and the old adage “invention is the mother of necessity” springs to mind, and where people will reinvent themselves with new business opportunities and where because they will mostly be in isolation those opportunities can only arise online.
Therefore, isn’t it about time that you considered working in the forex industry? Because no matter what happens, the money markets continue to operate even during crises such as we are faced with at the moment.

The benefits of working in the forex industry are that you can set up a business quickly and with very little setup costs. Indeed, all you need is a decent computer and internet connection and then choose a broker who to trade currencies with, and whereby your initial outlay can be as little as $200 in order to start trading, although ideally, you would need to put up at least $1000 in order to be able to realistically begin to make a decent living.

The forex market is the largest financial market in the world and is open 24-hours a day five days a week and where anybody can participate. Even during this crisis many institutions and professional traders, all the way down to retail traders, make money by using chart patterns they see on their computer screens to tell them when currencies – which are always traded in pairs – are too high or too low against their counterparts and therefore may be ready to rise or fall. Traders simply bet on the rise or the fall in currency pairs in order to make a profit. Effective tools can be implemented to minimize losses.

The forex market is a global market and is not centralized, and therefore nobody owns it. Transaction costs are low, and here at Forex Academy, we have an abundance of educational material where you can learn all about trading in the forex market, and we can even show you how to open a risk free demo account to practice what you learn with us before you risk your money for real.

The many articles, posts, and videos have been written by professional financial traders who trade the markets even during these difficult times, and want to share their success with you so that you can have an opportunity during these dark times to learn how to successfully trade forex.

Tags Coronavirus, Forex, trading

Forex Videos

A Black Swan Event, No, It’s A Flock! – How To Trade During The Crisis!

Post author By Keiran
Post date 26 March, 2020
No Comments on A Black Swan Event, No, It’s A Flock! – How To Trade During The Crisis!

https://youtu.be/AdBu6tUPisM

A Black Swan Event, No, It’s A Flock

We are undoubtedly in the worst economic crash the global economy has seen since WW2, and the financial impact may be even more far-reaching. With the financial markets in turmoil and no end in sight, maybe we should pause and take a look at what’s happened over the last few weeks and see if it can give any pointers to future direction, especially within the forex space.
In January, in our video on How to guard your financial assets against the Coronavirus outbreak, we warned that stock indices across the globe would come under continued selling pressure. Although the virus was mostly contained to China, it wasn’t possible, at that time, to predict the terrible crash that we have seen. It was only really when the virus took hold of Italy and broke out in Hong Kong and South Korea, that market jitters forced investors to see the potential of this deadly outbreak and begin selling stocks. Nonetheless, anybody who heeded our advice may well have reduced their exposure to stocks and been financially better off as a result.

Example A

In our February video about How to trade the Australian Dollar and The Convid-19 Pandemic Black Swan Event, again, we called it correctly. With Australia heavily exposed in China, it was highly likely that the Aussie dollar came under extreme selling pressure against the Dollar and that is exactly what happened and where we have seen highs of 0.70 in AUDUSD to a sharp decline to 0.54

Example B

We also warned that New Zealand, whose GDP is heavily dependent on their exports into China, may find that their currencies come under selling pressure too. It has also seen a huge decline against the Dollar from 0.6750 to a low of 0.5490.

Example C

We warned that countries such as Japan and Switzerland would find that their currencies grew stronger due to their safe-haven status. And where USDJPY declined from 112.20 to a low of 101.00 initially, before reversing due to concerns about the virus on the GDP of Japan.

Example D

We saw USDCHF tumble from 0.9855 to a low of 0.9160 and warned that the Swiss National Bank would likely intervene in the markets to drive the value of their currency lower for export purposes. That is exactly what happened.
We also warned that all of this could only mean one thing for the US dollar: it’s directional bias will be to the upside. Again, that’s exactly what happened with the Dollar index at highs around the 102.00 level against the Forex Majors.

Example E

So where to from here? Well, let’s just take a look at the 1-hour chart of the GBPUSD chart from Friday, 20th March. The Arrows show that there was extreme price action, which amounted to over 1400 Pip swings in this pair for this one-day period. This is almost unprecedented in financial trading. It can only tell us that the markets are thinning in volume and leverage and that institutional traders will be largely standing on the sidelines because as the crisis deepens the UK government, just like other western governments, are closing down, albeit temporarily, businesses that produce gross domestic product income revenues. All of that income has suddenly evaporated and gone out of the window. We are now in a situation where governments are financially bailing out business sectors, and they are doing that through borrowing. The burden of the debt that will grow and grow, month after month, as the crisis continues, cannot be predicted, and in fact, the repercussions will be the basis of a secondary crisis which will emerge at the end of the epidemic, due to overburdening debt caused by a virus, while countries and their workforces get back to normal in order to reimburse governments’ coffers in the form of taxation.

And nobody can predict when this virus will be contained enough for the markets to steady themselves. It will only happen when good news emerges, and this does not look at all possible or likely in the short term.
Therefore as institutional and professional traders are waiting on the sidelines and reducing leverage, we would advise retail forex traders to also exert extreme caution in trading these markets while the current crisis persists.

Tags Black swan, Coronavirus, Education, Forex, trading

Forex Videos

How To Use A Hedging Strategy To Trade Double Tops and Bottoms

Post author By Keiran
Post date 25 March, 2020
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https://youtu.be/jwAY5ZSUwB0

How To Use A Hedging Strategy To Trade Double Tops and Bottoms

In this video, we are going to show you how to set up a hedging strategy to trade double tops and bottoms. The idea is to set up two trades simultaneously where one trade will act as an immediate execution trade, and where all the technicals are telling us that price action will go in a certain direction. And the second trade will act as an insurance policy should price action ignore our technical analysis setup, and in which case, we will then capture price action as it moves in the opposite direction.
In the following examples, we are looking for price action reversals, which will form the basis of our technical analysis; and therefore our belief is that we will be looking for price action to have peaked, or bottomed out, and then reverse. Our secondary trade, which will act as an insurance policy, will be set up on the basis that price action has simply pulled back and then continues in the direction of the original trend.
Before we move ahead with our setups, let’s quickly remind her selves of the kind of setup we are looking for a double top scenario.

Example A

Example A, shows us that for a double top formation we need a peak, followed by a pullback to what is referred to as a neckline which acts as a line of support, followed by a second peak which must be at the same exchange rate as the previous peak, and then confirmation of the double top pattern occurs once price action breaches the neckline for a second time.

Example B

Example B, The reverse is true for the double bottom scenario. We have a bottoming out of a pear followed by a reversal to a neckline, which acts as an area of resistance and where price action forms a second bottom at or around the same exchange rate as the previous bottom and then a reversal back to the neckline, which previously acted as an area of resistance and where price action punches through and this line which then acts as an area of support before we see a continuation in the reversal of price action, which confirms the double bottom pattern.

Example C

Example C, the following is how we set up the double top hedge. First of foremost, we need to wait for price action to pull away slightly from our second peak and go short at this point with a stop loss a couple of pips above whichever peak was the highest of the move. Should price action continue lower than our neckline, the double top formation will be confirmed, and we can ride the downward move. If price action reverses from the support line, this will confirm an area of consolidation in which case we can bring into play a protective stop out in front of our entry, and at least we will not have lost any money on this trade.

Example D

Example D, The hedging strategy set up is where we place a buy limit order a couple of pics above the stop loss from the first trade, with a slightly larger stop loss which must be a couple of pics below show the previous support or neckline, and in this case, we expect that price action will continue with the original upwards trend. For this trade, we must have a minimum target equal to the amount of pips that were lost in trade one in order to keep our profit and loss in check. However, naturally, we want to let the trade run on as much as possible.

Example E

Example E, In the double bottom hedging strategy, we will simply need to reverse the trade setup for the double top. In which case, we would go long as soon as price action reverses from our second bottom line. With a tight stop loss a few pips below the lowest point of both bottoms. If price action then goes on to reverse back from the neckline to form a third bottom, we can close the trade out with a small profit. But the double bottom confirmation pattern will be confirmed once the neckline is preached, and price action continues in an upward trend.

The hedging strategy consists of a sell limit order just below the stop loss of the first trade and where the stop loss for hedging strategy must be a couple of pics below the neckline.
This hedging strategy should be reserved for timeframes or 15-minutes, and above this is where we will find the most amount of pips to be made. This is not to be considered as a scalping strategy.

Tags double bottoms, Double tops, Forex, Hedging, Technical Analysis, trading

Forex Videos

Develop An Unbeatable Forex Trading Strategy – Round 1

Post author By Keiran
Post date 24 March, 2020
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https://youtu.be/876Pze0L6f8

Develop An Unbeatable Forex Trading Strategy

Example 1: In this session, we are going to be discussing trading strategy as this is something that new traders find difficult to develop and implement without deviation.

Any forex strategy should be a systematic step-by-step procedure for how and when to use specific tools when a sequence of analysis needs to be developed.
Typical components of any strategy should include the following:

Example 2: The types of analysis tools we will be using. Whether it’s technical, fundamental, or both, it is something that will always be personal and based on your preferences. Now, although preferences are important specific analysis tools will have a generally higher success rate, and you should take some time to learn out of your comfort zone to improve on your weaknesses. You should have a clear order setup before you as to when and how you apply these analysis tools.

Example 3: next, you will want to have a clear picture of the timeframes, and trading windows will need to use. It’s no good trading an unsocial trading window that encroaches on your sleep and day-to-day responsibilities, and in addition, we want to use the same timeframe to implement our analysis tools while considering the type of trader we want to become. For instance, scalpers will rarely use the daily time frame because they are looking for quick in and out trades based on the technical analysis of the lower time frames.
For the longer time frame Traders, it would be beneficial to scan through the pairs that you are interested in trading in order to ascertain the key levels of support and resistance enable to drill down using your technical tools to look for potential trade entries and exits.
No matter what type of trader you want to be, it is important to consider fundamental factors which might impact on your trading, or assist your decision-making such as economic data releases, interest rate decisions, and key political events. In which case, you want to keep an eye on the economic calendar for the day or even week ahead.
We want to establish what high probability trades are available based on our technical and fundamental analysis. When developing a trading strategy, we need to implement all of these features and stick to them rigidly in order to achieve consistent trading profitability. Should any part of the strategy fail for any reason, we will need to make adjustments accordingly in order to make the trading strategy more fail-proof.

Example 4: What types of orders will you be using. If you are unable to be available during the times where you would normally need to trigger a buy or sell, you must make use of pending orders. If you’re trading news and have plenty of time on your hands, you may want to enable one-click trading to quickly enter the market based on data releases. This will all factor into your larger plan, and you should write down every detail. The purpose of strategy development is to increase your probability of success through research, development, and application, just as any other commercial business would go through in their model.

Example 5: We can’t talk about developing a successful strategy without looking at risk management in great detail. Risk management is the key most important aspect of a financial traders toolbox. Trying to determine what your risk appetite is while training can initially be very difficult.

Example 6: You need to consider your available balance, the pair being traded, pip worth, lot size, and other factors. You should never be trading with money you actually need because this will play with your emotions and put enormous psychological pressure on your trading, especially when things are not going your way.
Those who consistently make money in forex trading might not necessarily have more winning trades than losing trades. A part of being a consistently winning trader is knowing when to let the losing trades go and exit quickly, with as little loss as possible, while optimizing those winning trades and letting them run on as long as possible, through careful trade management, in order to maximize the amount of pips to be one. This comes down to the risk to reward ratio and to accept losses in accordance with your strategy. And as well as accepting your profits in accordance with your training strategy. Remember, we are looking for a consistent strategy without deviation. A common mistake of new traders is to quickly take profits and let losing trades run. As a consequence of this, they need to accept a higher risk to reward ratio than professional traders. Professional Traders will typically use a set percentage of risk on every single trade. The larger the accounts size, the smaller the percentage of risk should be. For example, you could have a trade with a risk to reward ratio of 1 to 3, where one equates to 3% of your bank. You could think to take that 3% and split it into three entries. Those three entries may have varying profit levels.

Example 7: Let’s look at the strategy checklist and add any of these components to your own strategy if you have not done so already. Be patient, test your strategy on a demo account over a period of 2 to 3-months and tweak and adjust as necessary because if it doesn’t work on a demo account, it certainly will not work on a real money account.
Successful Traders will look at the amount of money they can lose as well as the money they can make. Do not fall into the same trap as many Traders and simply bury your head in the sand when you are needed in a losing trade. Stop losses are the best way to implement against trades that run away from you. Having a frugal mindset will protect you against losses and bad decision making.
In every trade that you enter, you must have two things on your mind: at what point do you get out if it becomes a losing trade and at what point do you get out of a winning trade.
One thing is for sure when trading, there will be trades that you get stopped out of, and they then turn around and become what would have been winning trades, there will be trades that you will be stopped out of, and they will continue to have moved against you, and you will be grateful for your stop loss, and there will be trades that you get out of having taken your profit, only for them to continue on for hundreds of more pips. This is all a part of trading. It is all about sticking to

your methodology and trading strategy, making money consistently, looking for the next set up, and fighting on. Do not dwell on losses, do not dwell on what might have been, simply carry on with your strategy and remember the old adage: if it ain’t broke don’t try and fix it.

Tags Education, Forex, Strategy, trading

Forex Videos

How To Profit From Double Top Formations In Forex

Post author By Keiran
Post date 23 March, 2020
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https://youtu.be/jG5AZIsp72o

How To Profit From Double Top Formations In Forex

In this presentation, we will be looking at the technical analysis chart pattern known as a double top. Being able to recognize this formation or pattern and the information it provides us with will help to trade more effectively.

Double top patterns one of the many pillars of technical trading structures and should be incorporated into your trading knowledge base. Double top identification and understanding can further enhance your technical analysis when trading the forex market,y helping us see more than just support and resistance levels.

Example A

So what exactly is a double top? It will include two high points within the market, which generally signify an impending bearish reversal. There will usually be a decline in price between two high points. After the first peak has formed, there will be a retracement to a certain degree, before another rally to the upside. The second peak usually forms at the same level or slightly below the first peak, although occasionally it might breach the level of the first peak before price action reverses.

Example B (OR EXAMPLE C)

Here we can see that after a rally to the upside to peak one, price action reverses to our line of support line, often called a neckline between the two peaks, before the second push higher to peak number 2, and where price action reverses from this area, suggesting unsustainable buying pressure and that we should expect a reversal. And where price action goes on to breach the previous level of support, with a strong bearish candlestick, this is confirmed as a double top formation. And where price action subsequently comes back after some brief consolidation, with mixed small shaped candlesticks suggesting a lack of direction and where the previous level of support becomes an area of resistance and hence the continuation downwards which adds to our belief and support for this technical setup.

Example D

On the flip side, we have the double

bottom formation. This setup is identical to the double top in its theory and execution of trading. However, it is simply in reverse, In which case the exact same rules apply, But it is simply the mirror image of the double top. In this case, we would expect a bullish signal once the neckline is broken.

Example E

So here, for example, we can see a push down in price action to our first bottom, before price reverses to the neckline, which acts as an area of resistance, and where price subsequently comes down again to our second bottom, and where price action again returns to the neckline and breaches it and where this prior area of resistance becomes an area of support, and where price action continues to the upside from.
So to sum up, we are looking for two peaks at a similar height and where price action reverses between them to a neckline or area of support, which subsequently becomes breached after reversing from the second peak.
Secondly, we should make sure that the peaks are not too small because we prefer them on larger time frames of 15 minutes or higher because that is where we would expect larger amounts of pips to be made from this successful trade setup. This type of setup should be used in conjunction with a stochastic or ma CD to support double top or double or bottom formation.

One of the biggest problems with technical trading is that sometimes these patterns appear obvious in hindsight and that quite often we will miss opportunities and of course this can be very frustrating when you are always missing the mark. These patterns appear on our chats and often can be difficult to decipher when the market is moving, and with the pressure of placing trades sometimes, we simply miss these setups. There are two ways of going about solving this problem, and both have their pros and cons. We can either anticipate the formation before it occurs or wait for confirmation to trade the potential reversal. This will always be down to your appetite for risk, your personality as a trader, and your competence at understanding the nature of the forex market. Reactive traders who are playing the safer game have the advantage of simply seeing the pattern occur and trading it accordingly with the downside to this, which is that part of the trade has already been missed. This can equate to larger potential stop losses and less pips being made as the move continues.

Traders who have gotten into the sell or buy during the second peak or bottom phase of the setup will enjoy the comfort of having tighter stop losses, which should be placed a few pips above or below the first peak or first bottom. And of course, they will be able to claim more pips.

As with anything in forex trading, these things are a matter of trial and error and consistency, and therefore practice and observation will pay dividends in the long run.

Tags double bottom, Double Top, Forex, Technical Analysis, trading

Forex Videos

Master The Forex Hedging Strategy With Head and Shoulders Formations!

Post author By Keiran
Post date 20 March, 2020
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https://youtu.be/DliViegCR5c

Hedging Strategy With the Head and Shoulders Formation

In this video, we are going to show you how to use money using a hedging strategy, which is a continuation in the series. On this occasion, we are going to be looking at the head and shoulders formation and try to take advantage of a price action reversal with this shape.
The trade is constructed in two parts with the idea of hedging, which is to maximize the potential for trading opportunities in either direction of price action. However, initially, we want to set the trade up with our tried and tested technical analysis methodology, and in the event that for some reason price decides to go against the chart, we will have a second opportunity to catch the move in the opposite direction. And so we will have trade one, which goes with technical analysis and trade two, which acts as an insurance policy in the event things do not go to plan.

Example A

Example A is a very typical chart pattern that traders see on their screens on a daily basis. This is the formation of a head and shoulders, where initially we have price action rising, followed by the head and shoulders formation and then price reversal.

Example B

Let’s drill down a little further in example B. Here we can see that price extended higher from the left- hand side of the chart where we subsequently have a peak formation, or the left shoulder, followed by a slight pullback in price and then a continuation higher, which forms the head, before we see another pullback and then another move higher where the price action completes the formation of the head and shoulders shape.
We can also see the neckline, which acts as an area of support that is qualified by price action bouncing off it on at least two occasions. Traders will keep a close eye else for the neckline to be breached, which will offer a high probability of price action reversal to the downside.

Example C

In example c, we are going to set up our first trade. We are going to go short when price action moves under the neckline, and place a stop loss a couple of pips above the highest point of the head. Technical analysis offers a high probability that the price action will continue lower from this point with this particular formation. We should be looking for price action to come down to at least the previous low of the initial move higher on the left-hand side of the chart.

Example D

Example D is our secondary trade setup. The insurance policy if you will. Should our first trade fail, and we get stopped out, we will have already set in place a limit order to buy the pair at or slightly above the stop loss of trade one, in order to capture what will be a continuation in price action to the upside. We must place a stop loss a couple of pips below the neckline, and we should be looking for price action to continue upwards and, at the very least, cover the loss of our first trade. This can be done by carefully managing the position. This type of setup is better suited to time frames of 15 minutes or above because we are looking for trends, and this is where the larger amount of pips will be found.

Tags Forex, Hedging, Technical Analysis, trading

Forex Videos

Master Forex Spreads Quickly To Increase Profits – Forex Tips & Tricks

Post author By Keiran
Post date 19 March, 2020
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https://youtu.be/chQ4WUok0DQ

Master Forex Spreads Quickly to Increase Profits

Today we are going to be looking at spreads in reference to the forex market and some of the points to remember when choosing a broker having carefully considered the trading spreads they offer and eventually helping you to decide which trades you make according to the tightest spreads available.

Example A

So, what is the spread? All foreign exchange currency trading is done in pairs are the prices for each pair and are quoted as currency exchange rates.

Example B

Prices are quoted in quote boxes similar to this one, where the relative value of one currency unit is termed in the units of the other currency in its pair. In this example, the British Pound is being quoted against the United States Dollar and is where each currency has a three-letter quote, so here it would be GBP USD.
To simplify this, the spread always reflects the price for buying the first currency of the pair, in this case, the Pound, with the second currency, in this case, the USD.

The exchange rate that is supplied to a trader willing to purchase a quote currency is called a BID, and it is the highest price that the currency pair could be bought at. The selling price of the quote currency is called the ASK, and it is the lowest price that a currency pair will be allowed for sale. The difference between the Ask and the Bid is termed as spread. Essentially, the reason for the existence of the spread is so that brokers can take a cut. It can be applied instead of charging fees on your close trade positions, although some brokers may charge a small commission separately after the trade is closed.

Spreads are typically measured in pips and measured using the fourth decimal place in a currency quotation. There different types of spreads available in forex trading with different brokers provide let’s take a look at these two examples to May better understand your options.

Example C

When choosing a broker, you will want to consider the types of spreads they offer typically. This will be a fixed spread, or it might be a variable spread. With the fixed spread, the difference between the Ask and the bid price remains constant during normal periods of activity in the trading day. This can, however, widen slightly at times of extreme volatility. Fixed spreads are phenomenal in terms of knowing where you are at all times. With this option, you can determine your costs before entering your trade. Therefore it allows you to have better foresight in terms of your finances. This type of spread is preferred by professional traders because it means that brokers cannot manipulate the spread in their own favor throughout the trading day.

Next, we have variable spreads. This type of spread does not remain constant. Spreads fluctuate in line with market conditions during the day and especially during high levels of volatility and are also affected by liquidity in the market. The benefit of having variable spreads is that sometimes the spreads can be much tighter than fixed spreads and are better suited to frequent traders, for example, scalpers and intraday traders.

Some brokers will offer kept variable spreads, and these can often be considered to be the best of both options depending on how high the cap is.

Tags Education, Forex, Spreads, trading

Forex Videos

Crazy Crypto Profits Using The Ichimoku Cloud Indicator – part 1

Post author By Keiran
Post date 18 March, 2020
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Trading crypto using Ichimoku Cloud – part 1/2

Ichimoku Kinko Hyo is a well-known indicator that seems complex to many traders but actually isn’t. Once you know how it works, it makes your crypto-trading decisions easier and faster. Mastering Ichimoku Cloud trading will really bring you one step closer to the main goal of trading, which is making high-probability decisions in a relatively short time span.
Ichimoku Cloud indicator – definition
Ichimoku Kinko Hyo is translated as the “one look equilibrium chart.” It was created with a specific purpose, which is to enable quicker decision making in trading. Ichimoku Cloud is one of the main indicators offered at websites such as TradingView.

Ichimoku Cloud lines – explained

The Senkou and Kumo
“Senkou span” represents the borders of the filled cloud, which is known as the “Kumo cloud.” This span is filled with green color when the market is bullish, while it is red in bearish markets.

Senkou lines represent major support/resistance areas, and they attract the price. Using these lines, traders set their entries, exits, and stops. However, they are mostly used as additional information alongside some other indicators.

The TK lines and Cross
The Ichimoku Cloud also consists of the Tenken and Kinjun lines, or “TK lines.” These are the balance lines, basically fast and slow MA’s.
As they are moving averages, traders will look for crosses when they search for trend reversals. Because of the names of these lines, the Cross is called “TK cross.” However, TK lines are also important, even when there is no cross in sight. They can signal that the price of a cryptocurrency is neither overpriced nor underpriced if the price sticks around them. On the other hand, if the price action happens very far from the TK lines, it shows that the price is way out of balance and that a pullback is likely. It is important to note that this indicator by itself is not a trigger to open positions expecting a pullback.

The Chinkou

The “Chinkou” span is an indicator that is a lagging one. It is used to confirm trend strength. When the Chinkou line is above the candles, it means that the market is strong. On the other hand, if the Chinkou crosses below candles, it’s a bearish market.

When there is strong action while the lagging line crosses the candles, the trend is slowly weakening and becoming undecided. This tells traders to look for a reversal.

Reading Ichimoku Cloud

Ichimoku cloud Bullish signals

In order to have a strong bullish signal, everything in this indicator must occur above the Kumo cloud, namely:

The price action has to remain above the Kumo cloud.

The Chinkou line has to stay above the Kumo
Tenken has to cross Kinjun above the Kumo – if this Cross occurs inside the Kumo, that’s only slightly bullish.

Ichimoku cloud Bearish signals

In order to have a strong bearish signal, simply reverse everything said about the bullish signals:
The price action occurs below Kumo
Tenken and Kinjun have to be crossing
The Chinoku line has to stay below the Kumo.
If none of these is happening yet, it most likely means that the market is undecided, sideways, or waiting for direction.

Check out part 2 of Trading Cryptocurrencies using the Ichimoku Cloud to learn about cryptocurrency setups using this indicator as well as to learn the popular indicators that get along with Ichimoku well.

Tags Forex, Ichimoku, Technical Analysis, trading

Forex Videos

Forex Scalping The 5 Minute Time Frame Like A Pro! Easy Money!

Post author By Keiran
Post date 17 March, 2020
No Comments on Forex Scalping The 5 Minute Time Frame Like A Pro! Easy Money!

https://youtu.be/5Lz9qTTzWRU

Scalping with the 5-minute time frame!

The methodology in this presentation is to use the 5-minute time frame on the EURUSD and the GBPUSD pairs during lulls in the market. Such lulls or quiet periods tend to occur after the American session and just before the Asians come to market. During the Asian market session traders typically tend to focus on domestic currencies that affect their own countries’ GDP, such as the yen and Australian and New Zealand Dollar. Therefore if the timing is correct, opportunities will present themselves to scalp or look for trades with expectations of only making or losing a few pips at a time in this type of scenario. Should trace spill over into the Asian session, financial institutions will be taking positions with our peers, and volatility will increase, but our technical analysis set up and tight stops should protect us from heavy losses.
And although present market conditions are extremely volatile due to the coronavirus, eventually, the markets will calm down, and opportunities will present themselves to try and make money in calmer markets with this methodology.

The first part of our setup is to observe periods in trading that have not been volatile in the run-up to the closing of the American session. We are looking for periods of consolidation and sideways trading in our two pairs, which should spill over into the Twilight Zone between the American session closing and the Asian session opening.
We want to keep our chart set up to a minimum with as little indicators as possible because they tend to be quite laggy on the 5-minute chart. Price action and Bollinger bands are the key behind this setup.

Example A

Example A shows the GBPUSD pair on a five-minute chart, and the period between our two vertical lines shows the time zone we are targeting specifically, and please note some brokers use different times on their charts, such as ours, which is two hours ahead of UK time.
First of all, we can see that price action has been very muted in the run-up to the time we are focused on, and should this be the case, there is no reason why you should not enter this trading methodology sooner, should you wish.

Example B

In example B, we have added the Bollinger bands with a period of 13 and deviation set at the standards default of 2.0.
The most critical parts of this setup is that the Bands must be moving sideways.

Example C

In example C, we can see that price action spikes outside of the Bands at position A, where we have gone short and placed a tight stop loss a couple of pips above the previous high as denoted by our Horizontal line. And when price touches the bottom of the Bollinger band, we need to exit the trade. If price begins to move higher inside the band, which it does at position C, we would enter a buy trade with a target of the upper band and with a stop loss a couple of pips below any low in this consolidation period. In which case, our exit would be at position D.
There are conservatively 15 pips within our highlighted period and a total of over 50 pips within this consolidation period, as presented on the chart as price tops and bottoms from the tops to the bottoms and back of the bands. Tight stops keep losses to a minimum with this setup.

Tags Forex, Scalping, trading

Forex Videos

Forex Hedging Using The Elliot Wave Setup – How To Win Trades Whatever The Outcome!

Post author By Keiran
Post date 16 March, 2020
No Comments on Forex Hedging Using The Elliot Wave Setup – How To Win Trades Whatever The Outcome!

https://youtu.be/WccXmygr8PA

Hedging using the Elliot Wave setup

Continuing with our hedging strategy series. Today we are going to look at setting up two trades. One Which involves using the Elliott wave Theory of technical analysis, and should this prove ineffective, we will also be setting up a secondary hedging, or insurance based trade, in the event that our first trade does not go according to technical analysis.

While hedging comes in many forms and strategies, the methodology behind this type of hedging is that we want to carefully set up a trade based on tried-and-tested technical analysis, and where, in this particular case, price action may be set for a sharp reversal, but turns unexpectedly, in which case we will be able to catch the move in the opposite direction. In which case theoretically we win no matter which way price moves. Therefore this strategy works best when markets have consolidated or reached highs or lows, which seem right for reversal or continuation in price action but where the consolidation squeeze should cause a burst in volume in either direction.

Example A

Example A, Let’s quickly remind ourselves of the theory of the Elliott Wave, which consists of an impulse wave that is usually composed of 5 sub-waves that move in the same direction followed by a corrective wave composed of three subways that move against the previous trend.

Example B

Example B, Here we can see the Elliot wave in action. After a consolidation period, we can see the Elliott wave as denoted by 1 2 3 4 5 6 pattern, with higher highs and higher lows and where we would expect price action to begin to fade with our three-part full pull back as denoted by the A B C technical pattern we have drawn as an estimation onto our chart.
Therefore, if the Elliot Wave theory holds true in this case at position A, we would see a decent in price action in line with our A B C expectation, and if not, we would expect a price action continuation up to position 7 in continuation of the original upward trend.

Example D

Example D, This is the first part of our hedging strategy in which case we are going to go shorts at position A, which represents her 50% pullback between position 6 and 5, and at which point should be the beginning of the three-wave counter move in the opposite direction of the trend upwards should the Elliott wave Theory hold at this point we will capture some decent down movement, especially if this setup is used on a 15 in 30 or 60 minutes chart.
We must set our stop loss at a couple of pips above position 5, which would mean that the Elliott wave theory has not held out on this occasion, and that price could be set in a continuation upwards of the original trend. However, should position 5 on your chart be a round number and what is also called a big figure number such as 1.3400 which you might see in the USDCAD pair, or 1.300 in the EURUSD pair at the time of writing, then price action might find this as a level of resistance and fall anyway. But as the theory would be negated, we would suggest you consider this and think about exiting the trade and waiting for another Elliot Wave set up. In either case, stop losses should not be more than 20-30 pips.

Example E

Example E is our hedging strategy. In the events that the Elliott wave fails and price action continuous, we must set a buy limit order a couple of pips above the previous trade’s stop loss in order to capture the move from position 6 to position 7 and beyond. If possible, we should monitor this move closely, because as an insurance policy, we need to at the very least make the same amount of pips.i.e. 20 to 30 that we lost in the first trade.

Tags elliot waves, Forex, Forex hedging, trading

Forex Videos

Forex Limit Order Hedging Strategy – Making Cash Hand Over Pip

Post author By Keiran
Post date 14 March, 2020
No Comments on Forex Limit Order Hedging Strategy – Making Cash Hand Over Pip

https://youtu.be/xvgFPr7FTdM

Limit Order Hedging strategy

This video continues in the series showing you how you can make money by using hedging strategies to take advantage of breakouts and reversals in the market, no matter what direction. And while there are many different styles of hedging strategies, in this series, we are focussing on a simple way to maximize opportunities while increasing the chance of profitability, no matter which way the market moves and if used correctly, you will be able to utilize this in your own methodology.
While the following is risky – just like all trading, we will show you how to keep setups tight, while implementing clear and precise technical analysis that professional traders use every day in the Forex market. This strategy consists of two parts, the initial trade, and a backup trade. We have eyed an opportunity with multi-month lows for the EURCHF pair.

Example A

Example A is a monthly chart of the EURCHF pair, and we can see that the Euro is falling heavily against the Swiss franc. This is due to the flight to safety, whereby the Swiss franc is seen as a safe-haven currency during the Coronavirus pandemic.

However, the Swiss National Bank will be very unhappy about their currency being so strong and are threatening to intervene in the money markets to correct this. We can also see from this chart that we are approaching lows that have not been visited for five years. Therefore with the threat looming of the Swiss National Bank intervention, and previous reversals from these levels, we can hypothesize that although the continuing risks of the virus are still prevalent, there could be an argument for imminent price action reversal, particularly because of the current strength of the Euro and where the EURUSD is currently riding high around the 1.13 level.

Example B

Let’s take another look at this chart as in example B. While we may see some further downside in the EURCHF pair, our particular area of focus will be on the key 1.03 level. Previously price action found support at this level for several months. We are going to look at putting in a buy limit at the 1.03 level, with a tight stop loss, which, if triggered, we will also implement an immediate sell limit order to target the 1.00 key psychological trading level, which is parity.

Example C

Example C is a one-hour chart of the EURCHF pair, and our setup for the first part of this trade. We have placed a buy limit at the key 1.03 level with a tight stop loss at the 1.0270 level and a profit target of the current trading range around the 1.0550 level.

Example D

Example D, Now let’s look at our backup or insurance trade in the event that price continues to fall in the pair. We want to to set up a sell limit order at the 1.0270 level which is our previous stop-loss, and this time we need a slightly wider stop loss on this new trade at 1.0310, in case the key 1.03 level is initially targeted from our entry, and where we believe it might possibly become an area of resistance before price action reverses again and where will be looking at a target of 1.000 or parity in the pair.
On the second trade, we should be looking to implement a protective profit stop at around 1.0240 level in order to, at the very least, cover the loss from our first trade.

Tags Forex, Forex hedging, trading

Forex Videos

Master Forex – Hedging Strategy Using Buy & Sell Limit Orders

Post author By Keiran
Post date 13 March, 2020
No Comments on Master Forex – Hedging Strategy Using Buy & Sell Limit Orders

https://youtu.be/td11yLQCTC8

Hedging strategy using buy and sell limit orders

This video is a follow on from Hedging – Making money no matter which way the market moves and Hedging Strategy Via The Ascending Pennant Chart Pattern.

The idea in this series is to incorporate a secondary backup, or insurance policy type trade, in order to maximize the possibilities of breakouts from well-known, tried, and trusted chart patterns that professional traders use. And these setups are better suited to the 15-minute, 30-minute, and 1-hour time frames, where you might expect a larger amount of pips to be made in a trending, or reversing market.

Example A

Example A is a 1-hour chart of the GBPUSD pair, but this set up works with any forex pair.

Example B

Example B shows that after an initial push higher, price action consolidates in a sideways move and this consolidation is confirmed by at least two attempts to push higher than a horizontal line of exchange rate where price action is rejected and which acts as a line of resistance and at least two pushes lower on a separate horizontal line of the exchange rate which was met with a line of support.
While this see-sawing between the resistance and support levels may continue for some time, one thing is for sure, that eventually, price action will either break to downside or break to the upside.

Example C

Now let’s look at Example C. This is where we will set up our first limit order. Firstly, price action appears to be fading to our support line, as defined by the green line. This fading of price action means that we are more likely, at this point, to see a breach of our support line and a continuation in price action in a downwards direction.
Therefore we have placed a sell limit order a couple of pips below the support line with a stop loss a couple of pips above the resistance line.

Example D

Now we must turn to example D, which is our secondary backup buy limit order, which we believe would be a good insurance policy should price action break the resistance line and move in an upward direction.
In this situation, we simply set our buy limit order a couple of pips above the line of resistance with a stop loss a couple of pips below the area of support.

The idea regarding our hedging strategy is to prime everything in readiness for where we believe the price action will go due to our technical analysis and also to set up a secondary trade in the reverse direction as a backup or insurance policy in case price action reverses in the opposite to the direction where we believe price action will go.
Obviously, it is possible that both trades could be executed and therefore we would advise that you keep an eye on the trade and should both trades be executed and where one triggers a stop loss, the profit target from the secondary trade should be at the very least the amount that was stopped out on the first trade, in order not to adversely affect your profit and loss.

Tags Forex, Forex hedging, trading