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Wednesday, September 14, 2016

Summer Ranges Maybe Over Soon



It is no big secret that price action during summers tend to be range bound rather than trend driven. This summer was no exception. Major currencies as well as crosses were range bound. gbp/usd has been in 700 pip range (not a small one) since July, result of post Brexit consolidation after a huge collapse. As we have BOE coming out with interest rate decision tomorrow we may see the pair consolidate around 1.3100 area. Next week FED interest rate decision may send gbp/usd either back to support of 1.2800 or to 1.3500 and beyond that to 1.4000 or even 1.5000 level. 


eur/usd, on the other hand stayed in much smaller range of about 500 pips, July and August range being only 400 pips. After FED releases its’ interest rate decision the pair will most likely gain direction and either drop to 1.0500 or rise to 1.1700. The most likely scenario is that it will revisit the lows of 1.0500 before going upwards. A rare, but a possible case would be for the pair to keep dropping and reaching 2000 lows of 0.8200. That would have made a full bullish and bearish cycle of eur/usd. Seven years of rise and seven years of going back to the exact spot where Euro started its’ ascend. 

If we look at the gold chart we can also see that it has been caged in a range for a number of months. One thing is clear that the commodity is in an uptrend after correcting downwards for a few years. At the moment, technical analysts and traders can spot a bullish flag forming on 8 hour and a daily chart, meaning that we may see a breakout upwards sooner rather than later. 

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Friday, March 18, 2016

Big Moves After Narrowing Range



Markets have a few distinctive states that they fall into and stay till other state develops. One of the most popular ones is a range. Traders take advantage of that by trading support and resistance in a range. One of the best patterns in a range is a narrowing range. It may come in the form of a triangle or a rectangle. It will always end in a strong move. One can use it to make nice cash by simply placing buy stop orders above the most recent high and a sell stop below the most recent low. 

The example below of eur/usd pair clearly shows that. You may see how the pair went into a range mode after a strong move and in a period of three days stayed in a range. A catalyst for the breakout upwards occurred this Wednesday when FED came out with interest rate decision. US dollar collapsed across the board. The rally netted around 200 pips and the amount may increase if the pair keeps on rising the last day of the week. 

Remember, narrowing range is a good opportunity to take breakout trades and make a lot of pips as a result.
If you want to trade patterns like these I recommend opening anaccount with Etoro and start trading. Good luck.


Wednesday, August 26, 2015

Best Signal Trader Systems



As I wrote in my SignalTrader Review, this is one of the best services in the Forex industry that provides automated Forex (commodities, indexes) signals. In this post I just want to look through the best systems that they offer. 

They have put all best performing ones on their front page and you can analyze each one of them by clicking you mouse any spot on a specific strategy. 

STARTUSING SIGNAL TRADER NOW


For example, I click on SignalWave and a new more detailed window describing the system appears.

SignalWave system screenshot


You can see what the profit is, start date, initial balance, markets the strategy trades, way of trading (robotic), trading frequency, Trading type (technical and fundamental) trading style (intraday and swing) and the instrument. You also can find full description of the strategy on the right. 

So, you can click on any system you want to look through and see how it works.
If you want to follow any of the strategy, just follow the steps:

How to start using the signals

STARTUSING SIGNAL TRADER NOW