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Wednesday, March 21, 2018

Big Money is in Big Moves


That was the idea that famous speculator Jesse Livermore realized and the idea helped him to make millions in stocks and commodities trading both on the long and short (buying and selling) side. According to his own words when he day traded he failed to see the big picture and the prevailing trends in the market. When he realized that he should follow trend, he stopped losing money and started making it regularly.

The good news is that big moves happen almost every week. We call those swings. Trends are longer term moves that happen one or two times per year, while swings do happen every week, both as directional and correctional moves. If you look at the chart of gbp/usd below you can see that the pair has been in a range for some time, but within the range there were plenty of swings every week that you could play on the long and sort side. On the 25th of January the pair was mostly in downward swings with some correctional swings. You would have made more money selling correctional rallies than buying dips in a downtrend. However as moves lasted from 5 to 10 business days with the help of trendlines, key price points, resistance points, key reversal days (Fridays and Mondays) you would have made money trading either direction.


My point is that you need to see bigger picture: from one to three months. Then you will be able to see those key resistance and support points where reversals typically take place and place buy or sell orders respectively. You may measure number of pips from one peak to another to calculate possible reversal point in a downtrend in order to take a position and number of pips from one bottom to another in order to guess a reversal point and initiate a buy order in an uptrend.

These weekly swings help you not to get lost in daily fluctuations and to see bigger picture more clearly. Seeing it you would probably trade less, but more profitably and on each trade make more money. Good luck.


Further reading: 


Disclaimer


Financial markets carry a high level of risk. Investor can lose all his money trading them. You should not invest money that you can’t afford to lose. Information on this blog is for information purposes and should not be regarded as an advice to invest. 





Wednesday, March 14, 2018

gbp/usd buying opportunities


It is obvious that gbp/usd has been in a long term trend (over a year) and the best type of playing the pair was buying of dips. It has been moving up in waves over a year and I believe we are going to see another cycle up. To tell the truth the first wave up in a bullish move is about to end. If you look at the chart you can see that the pair found its bottom on the first of March and made two strong moves up. I expect it to run some 50-100 pips more from a current level before reversing and a leg down next week.


I marked support and resistance levels on the chart. You can play both waves, but the trend is up now. I expect the pair to reach previous top of 1.4350 by the end of the month and possibly move higher later in the year, provided price action confirm bullish trend continuation pattern.

There is some chance of the pair going sideways and forming a narrowing range, but I favor the pair moving up in waves, the way it went down from the 25th of January. So, there are hundreds of pips to be claimed and a lot of money earned. I have positions in gbp/usd and gbp/jpy opened expecting them to close tomorrow or Friday and wait for another opportunity to buy.

If you want to try trading currencies, gold and other commodities as well as securities eToro company is the best broker I know.
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Disclaimer

Financial markets carry a high level of risk. Investor can lose all his money trading them. You should not invest money that you can’t afford to lose. Information on this blog is for information purposes and should not be regarded as an advice to invest.




Monday, March 5, 2018

Oil long trade opened


Oil has been in a modest uptrend for over a year and you may see that the best way to trade it was to buy on dips. In the end of January oil experienced a 9 dollar corrective move. However, it did bounce off 58 level and made another impulsive wave up. It then made another tumble down, but did stay above support forming two large candle pins on a daily chart at 60$.

This tells me that the commodity is going to revisit it’s this year high quite soon and I initiated a long trade at 61.20 level just when the oil slipped below short term support (today’s lows). I have take profit target at 65$ and stop 59.95. If my target is hit I would make three times more than I lose if price reverses and goes down below 59.95.


I am not going to open any buy (long) trades after that, but intend to watch the commodity carefully as trade wars, US shale market will have bearish consequences for oil and it may tumble some 20-30 dollars this year.

I do expect lots of huge moves this year in oil, gold and currencies with both trend continuations and reversals in mind.

If you want to trade for yourself and make money I would recommend eToro broker, who is one of the best in the industry.

Disclaimer

Financial markets carry a high level of risk. Investor can lose all his money trading them. You should not invest money that you can’t afford to lose. Information on this blog is for information purposes and should not be regarded as an advice to invest.





Wednesday, February 28, 2018

Bitcoin in a downtrend, but the trend might change soon


I know there are a lot of cryptocurrency lovers out there and I don’t mind analyzing and even trading it myself. It is obvious that Bitcoin and most other cryptos were in a downtrend mode since the middle of December. The move down was very dramatic erasing a lot of profits by correcting about 67 percent. It is quite a magic number as the move down represents the third level of Fibonacci retracement. In most cases securities resume their trends when the number is hit.


Looking at current price action you might see that after the crypto hit 5860 level it bounced really hard indicating there is some strong buying in the area and possibly indicating that the downtrend can be over. Therefore, I assume a move up may resume any time soon and Bitcoin will revisit 20 000 level sooner rather than later, possibly by the end of this year.

Technically speaking I expect a move up in a zig zag way (wave up, wave down with higher highs and lower lows). There will probably be a bottoming process now till the crypto stand firmly on both feet, so to speak and we may see it revisiting 5900 level again, before making another rally. Any move down is probably a good opportunity to buy and buying on dips will be a good strategy.

So, to sum up, I expect Bitcoin to resume its trend and excellent opportunities might be ahead of us soon.

If you want to trade Bitcoin and other cryptocurrencies I recommend Etoro broker, which is one of the best in the industry.
Good luck in trading.

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.


Friday, August 25, 2017

Start using eToro copy system

eToro is a social investment company that is radically different from most Forex brokers in a sense that it has been developed with a purpose to create an investment community where one trader can copy another one.

Everybody is an investor and can attract followers/copiers

You can open an account with a few hundred bucks and become a leading investor or can be a follower and copy those who are popular investors and make money for themselves and for others. The higher the percentage you make the more reliable you become as a trader and if your risk score is low you can attract huge followers and copiers. If you do not want to trade yourself, then you can be a copier or a follower. A follower just gets info about all the trades a specific trader makes, but does not commit any capital to that trader.

A copier copies actual trades and if the trader makes money, so does the copier. Of course, if the trader loses money, so does the copier. You can start and stop copying any investor any time you want.

How to start/stop copying

That is easy. You simply click on the icon of the investor and on the top right size of the screen there is a blue sign ‘Copy’. You press it and a window will open. It will ask what amount you want to allocate for copying. The minimum is 100$, but you can allocate more. You can then choose when to stop copying the trader. Default settings are ‘if the copy value drops more than 40 percent’. You can change that to whatever amount you want. If the losses reach that level you will automatically stop copying that trader. Of course, you can manually stop copying or pause copying any trader at any time you want. It is recommended not to interfere with the trades, but you can also close positions that are open or modify stops. So, you are fully in charge, despite the fact you are copying all the trades the investor is making.

How to choose who to copy


It is your choice entirely, but there is a list of popular investors and on your platform (on the left) you can push a button ‘Copy people’ and you will get a default version of popular investors with specific settings: country, market they invest in, gain at least (10%) and during last 12 months. Again you can modify those settings and choose people from a specific country or any part of the world, choose those who have the biggest gain in 12 or 6 or 3 months. You should also look at risk category, the higher the category the higher the risks the investor is taking, the lower the category the lower the risks the investor is taking. Do thorough analyses before you decide who to copy and if you want to be copied be sure you trade great, do not risk much and after a few months you will be considered as a candidate to become a popular investor. But about that next time. 

START TRADING OR FOLLOWING SUCCESSFUL TRADERS NOW


Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Thursday, August 3, 2017

Trade cryptocurrencies with Etoro

Cryptocurrencies have taken investment community by the storm.

What is a cryptocurrency?

The term might be relatively new to an average trader or investor, but basically it is a  currency in which encryption is used for generation and transfer of funds and that is done outside of central bank regulation system.

So, we may say that cryptocurrency is an alternative currency and a financial instrument that can be used for investment and also for purchases and payments across the world. Of course, it is not accepted as a universal payment method everywhere, but the popularity of payments using cryptos is getting more and more popular.

There is a story circulating in internet how a developer of the currency paid 10 thousand bitcoins for two pizzas in 2010. Now, 10 thousand bitcoins would be worth 20 million US dollars. Wow! If you look at a chart of Bitcoin you will see that the price of the security increased 5 times over the last year. Another wow! You never know what can happen with your investments. Obviously, you can lose too, but there is a tendency with new financial instruments that are traded in the market to increase hundred times, sometimes thousand times in value.
( From 500 to 3000 in just one year)


Today, these crypto currencies surely record bigger changes than most financial instruments and present opportunities as well as risks, but there hardly re any secure investments nowadays, that would guarantee you safe profits year in and year out.

If you got interested and would want to try trading cryptos I would recommend using Etoro trading platform. They are currently offering 6 cryptos: XRP, LTC, ETHEREUM, ETC, DASH  and finally BTC or Bitcoin.


Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Sunday, July 30, 2017

Oil and Gold to form intermediate top

Both oil and gold have been in a mild uptrend for over a year now moving up and down in waves. It has been a time where you would have made more money by buying the commodities than selling them. However, if you are intermediate or short term trader you might see that playing on both sides would have been a good choice. Looking purely technically you can spot waves on both commodities. Taking that into account I will state that we will probably see gold and oil turn around in August and start trending down. I expect oil to top at around 50.00 this week and gold possibly too at 1270-1275 level.

If you look at gold chart below you can see three finished peaks. However, the second and the third peak are at about the same price level (the third is some 30 cents higher). Then you will spot a lower low formed and a rally right after it. I assume we will now see another leg down, that will take us lower to 1195-1180 level. I expect the fourth peak to be finished this week. I have intentions to short gold when I see strong selling on my short term hourly charts.



The same is true with oil. Oil chart actually more resembles head and shoulders pattern. You can spot around 5 technical peaks in the chart, with the last two peaks being lower than previous two ones. This leads me to a conclusion that another peak in oil is due any time soon. I actually think 50 level is the mark and oil may form its first leg down this week. Again, I intend to be a seller when I see strong selling coming on hourly charts.


At some point both commodities will pick up and start trending up, because the world geopolitical and economical situation does not look rosy at all, but for the time being, technical analysis tells me to be on the short side.

If you want to trade commodities, currencies, stocks, indexes and cryptocurrencies with a reliable broker, look no further, Etoro is your best option. 




Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.


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.

TRADE GOLD, OIL AND CURRENCIES ON eTORO NOW


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. 


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.
START COPYING POPULAR INVESTORS ON eTORO NOW


Wednesday, August 12, 2015

Gold to go higher



It is obvious that gold has been battered in the last couple of months. However, most recent price action suggests that gold may rebound in the nearest future. In fact, the recovery has already started. I want you to look at the chart below to see for yourself. From 20th of July to 10th of August, 2015 gold has been in bottoming process. The last low on the 20th of July was quickly rejected as price crashed dramatically and then rose suddenly. 

TRADE GOLD, OIL AND CURRENCIES ON eTORO NOW

In the next couple of weeks a process that traders call “accumulation process” occurred. You can see how price tried to test previous lows on at least 5 separate occasions and failed. Each time buying pressure came and price rose. On the other hand, price was also rejected at resistance. You can see how the range was “squeezed” during these couple of weeks. Narrowing range is a strong indicator that a break will occur sooner rather than later. It often presents the best opportunities for trading a breakout.

Most breaks fail and I would strongly advise against trading them. However, when you see a narrowing range it is one of those rare situations when breaks turn out to be true rather than false. This type of situation happened on the 10th of August when price eventually broke the narrowing range and now is rising up in waves. 

Just by measuring the base of the narrowing range pattern I assume that the minimum target for the move is around 1143 level (classical technical analysis count). Of course, price may go well beyond that and it is really difficult to say where exactly the rise will be over. However, a technical trader would at least try for the minimum target. Buying on dips seems to be the best strategy now if initial “buy on a break” strategy was not implemented. 







Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.