Something Interesting in Financial Video April 2014 - page 5
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Press review
newdigital, 2014.04.12 18:47
GBP/USD forecast for the week of April 14, 2014, Technical AnalysisThe GBP/USD pair broke higher during the week, but as you can see pulled back to the 1.68 handle. That to us is the area that we need to get above in order to start buying again, as we feel that the market will go to the 1.70 handle without too many issues. However, we also recognize that the 1.65 level is supportive, and as a result we should find a supportive candles down there to start buying as well. We are bullish of the British pound in general.
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Press review
newdigital, 2014.04.12 18:49
EUR/USD forecast for the week of April 14, 2014, Technical AnalysisThe EUR/USD pair rose during the week, breaking above the 1.38 level handily. However, we need to get above the 1.3950 level, and for that matter the 1.40 level in order to feel comfortable enough to start buying and holding onto the position. If we do that though, it would break above a downtrend line from the monthly timeframe, which of course would be a massive bullish sign in a market that has been actually in a downtrend since the financial crisis began. Granted, we’ve had long moves up and down, but if you look at the monthly charts, you will see that we are in fact in a downtrend.
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newdigital, 2014.04.15 07:49
Trading the News: U.K. Consumer Price Index (based on dailyfx article)
Slowing inflation in the U.K. may spur a larger correction in the GBP/USD as it allows the Bank of England (BoE) to retain its highly accommodative policy stance for an extended period of time.
What’s Expected:
Why Is This Event Important:
The BoE may further delay its exit strategy in an effort to address the ongoing slack in the U.K. economy, but Governor Mark Carney may show a greater willingness to normalize monetary policy sooner rather than later as the central bank anticipates a stronger recovery in 2014.
Easing input prices paired with the slowdown in private sector credit may prompt businesses to offer discounted prices to U.K. households, and a weaker-than-expected inflation print may generate a larger pullback in the GBP/USD as it raises the BoE’s scope to retain its highly accommodative policy stance for an extended period of time.
Nevertheless, the resilience in household consumption along with the pickup in wage may encourage U.K. firms to raise consumer prices, and a stronger-than-expected CPI print may heighten the bullish sentiment surrounding the British Pound as it fuels interest rate expectations.
How To Trade This Event Risk
Bearish GBP Trade: U.K. CPI Slows to 1.6% or Lower
- Need red, five-minute candle following the release to consider a short British Pound trade
- If market reaction favors selling sterling, short GBPUSD with two separate position
- Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward
- Move stop to entry on remaining position once initial target is hit, set reasonable limit
Bullish GBP Trade: Headline & Core U.K. Inflation Exceeds Market Expectations- Need green, five-minute candle to favor a long GBPUSD trade
- Implement same setup as the bearish British Pound trade, just in opposite direction
Potential Price Targets For The ReleaseGBP/USD Weekly
GBP/USD H4
February 2014 U.K. Consumer Price Index
GBPUSD M5 : 24 pips price movement by GBP - CPI news event :
The YoY figure for U.K. CPI came in at 1.7% as expected and the MoM figure at 0.5%. The Pound saw a move to the upside that was quickly retraced, but the GBPUSD pair ended the day up 45 pips from the release. As for insight into this print, if we do see CPI come in under market expectation it is likely that we may see GBP weakness. This may be especially pronounced in the context of a possible double top and resurgence of USD strength post-Retail Sales that came in better than expected on Monday morning in NY.
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newdigital, 2014.04.15 12:57
Forex Trading Video: EURUSD Drops and GBPUSD At-Risk On Monetary Policy Focus
The strong risk aversion of the last two weeks was on a weak footing to start this new trading period. In its absence, we find rate speculation more than capable of taking its place. Responding to a very clear threat, the Euro dropped Monday against all of its major counterparts. Clearly unnerved by the currency's strength, ECB President Draghi upgraded his threat to forcibly drive the Euro down via monetary policy channels. Ahead, we will see whether the US Dollar and Pound will exploit the unfavorable position of their counterpart or join it with important inflation readings. The risk theme is still in play, but our attention must now be split with interest rate speculation. We look at both drivers and their trade implications in today's Trading Video.
EURUSD and GBPUSD Trade Setups May Need to Wait
Short-term ranges are more appropriate trade opportunities than major breakouts and trend development into the end of the week. Past the half-way point of the week, we have seen the risk aversion momentum from last week stall, most of the major event risk go by and Friday's market holiday liquidity drain move another day closer. Short-term setups with clear technical levels tend to outperform in these circumstances. As for the growing medium-term opportunities in pairs like EURUSD and GBPUSD, we need to prepare for the tech/fundamentals/market conditions stars to align. We discuss both immediate options and bigger setups a little further out in today's Trading Video.
Ichimoku Trading for Beginners
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Indicators: Ichimoku Cloud
newdigital, 2013.11.25 12:23
Ichimoku Cloud (based on The Definitive Guide to Trading Trends with Ichimoku Cloud article)
Many traders are asked what indicator they would wish to never do without. The answer has never wavered as there is one indicator that clearly illustrates the current trend, helps you time entries, displays support and resistance, clarifies momentum, and shows you when a trend has likely reversed. That indicator is Ichimoku Kinko Hyo or more casually known as Ichimoku.
Ichimoku is a technical or chart indicator that is also a trend trading system in and of itself. The creator of the indicator, Goichi Hosada, introduced Ichimoku as a “one glance” indicator so that in a few seconds you are able to determine whether a tradable trend is present or if you should wait for a better set-up on a specific pair.
Before we break down the components of the indicator in a clear and relatable manner, there are a few helpful things to understand. Ichimoku can be used in both rising and falling markets and can be used in all time frames for any liquid trading instrument. The only time to not use Ichimoku is when no clear trend is present.
Always Start With the Cloud
The cloud is composed of two dynamic lines that are meant to serve multiple functions. However, the primary purpose of the cloud is to help you identify the trend of current price in relation to past price action. Given that protecting your capital is the main battle every trader must face, the cloud helps you to place stops and recognize when you should be bullish or bearish. Many traders will focus on candlesticks or price action analysis around the cloud to see if a decisive reversal or continuation pattern is taking shape.
In the simplest terms, traders who utilize Ichimoku should look for buying entries when price is above the cloud. When price is below the cloud, traders should be looking for temporary corrections higher to enter a sell order in the direction of the trend. The cloud is the cornerstone of all Ichimoku analysis and as such it is the most vital aspect to the indicator.
Time Entries with the Trigger & Base Line
Once you have built a bias of whether to look for buy or sell signals with the cloud, you can then turn to the two unique moving averages provided by Ichimoku. The fast moving average is a 9 period moving average and the slow moving average is a 26 period moving average by default. What is unique about these moving averages is that unlike their western counterparts, the calculation is built on mid-prices as opposed to closing prices. I often refer to the fast moving average as the trigger line and the slow moving average as the base line.
The Ichimoku components are introduced in a specific order because that is how you should analyze or trade the market. Once you’ve confirmed the trend by recognizing price as being below or above the cloud, you can move to the moving averages. If price is above the cloud and the trigger crosses above the base line you have the makings of a buy signal. If price is below the cloud and the trigger crosses below the base line you have the makings of a sell signal.
Confirm Entries with the Mysterious Lagging Line
In addition to the mystery of the cloud, the lagging line often confuses traders. This shouldn’t be the case as it’s a very simple line that is the close of the current candle pushed back 26 periods. When studying Ichimoku, I found that this line was considered by most traditional Japanese traders who utilize mainly Ichimoku as one of the most important components of the indicator.
Once price has broken above or below the cloud and the trigger line is crossing the base line with the trend, you can look to the lagging line as confirmation. The lagging line can best confirm the trade by breaking either above the cloud in a new uptrend or below the cloud in a developing downtrend. Looking above, you can see that the trend often gathers steam nicely after the lagging line breaks through the cloud. Another benefit of using the lagging line as a confirmation indicator is that the lagging line can build patience and discipline in your trading because you won’t be chasing the initial thrust but rather waiting for the correction to play out before entering in the direction of the overall trend.
Trading With Ichimoku Checklist
Now that you know the components of Ichimoku here is a checklist that you can print off or use to keep the main components of this dynamic trend following system:
Ichimoku Checklist:
1.Where is Price in Relation to the Cloud?
2. Is price consistently on one side of the cloud or is price whipping around on both sides consistently?
3. Which level of the Ichimoku would like to use to place your stop?
A Simple Day Trading Strategy by Markus Heitkoetter : " In this video I am presenting a simple day trading strategy using Bollinger Bands and MACD."
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Something Interesting to Read April 2014
newdigital, 2014.04.09 17:18
The Complete Guide to Day Trading: A Practical Manual From a Professional Day Trading Coach
by Markus Heitkoetter
Do you want to be a day trader? Every day, millions of dollars change hands in the markets, presenting the perfect opportunity for people just like you to make significant money and profits through the art of day trading.
But here's the question: is day trading right for you? And, if it is, how do you get started?
In his new three-part guide, professional day trading coach Markus Heitkoetter lays out a simple, proven system for trading success. From the basic essentials of trading to the actual process of making money in the markets, he'll cover it all.
Loaded with easy-to-use information, proven and reliable strategies and guidelines, and a practical hands-on approach to the industry, The Complete Guide to Day Trading is your own personal manual to success in the markets.
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Press review
newdigital, 2014.04.18 10:45
Trading Video: Liquidity Delays EURUSD, GBPJPY, Yen Setups
Great trading opportunity lies ahead, but expectations must be reasonable for when and where we can act. The final trading day of this week will be drained of liquidity due to the observation of a market holiday for many regions, and the subsequent conditions curb the necessary developments we need to instigate the seismic shift that we are inevitably heading towards. In today's trading video, we discuss why short-term trade setups are ill-advised but why medium-term setups for the likes of EURUSD, GBPUSD and others offer considerable opportunity.
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Press review
newdigital, 2014.04.19 16:49
Nikkei forecast for the week of April 21, 2014, Technical AnalysisThe Nikkei had a good week, climbing from the ¥14,000 level to close at ¥14,500 roughly. With that, we feel that the market continues to go higher, and that the selloff recently has merely offered another buying opportunity and suggests that we are probably going to head to roughly ¥16,000 given enough time. We are bullish of the Nikkei, and do think that eventually the uptrend continues itself as there are far to be reasons the think that the Bank of Japan will continue to support the stock market in Tokyo.
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Press review
newdigital, 2014.04.19 16:52
DAX forecast for the week of April 21, 2014, Technical AnalysisThe DAX initially fell during the week, but found enough support below the €9200 level to turn things back around. If that’s the case, it appears that the market has found enough bullish orders to push back above the €9400 level. Now that we’ve cleared the €9400 level, we feel that the market heads to the €9700 level. That level is fairly resistive, but once we get above there we feel that this market eventually heads to the €10,000 level, which is our longer-term target for this market place.