EURUSD ANALYSIS - SHORT

SHORT UNDER 0.9920

TP:0.9842

SL:0.9920

Technical: Trend+channel

Fundamental: Economic news.

Money management:

Position sizing

Good Luck!

#eurusd

#technical

#fundamental

#moneymanagement

Trading Spikes in FOREX market

 Some of you may have been confused with the price action after yesterday's US inflation report.

As explained the reason for a stronger US dollar is that traders now expect the central bank to increase the interest rates more and more to fight inflation which makes USD more attractive.

Many of you probably are searching to find the best trading setup for a situation like this.

I am talking about FOREX mainly. (We do not have any in our portfolio at this stage )

My suggestion is, do not trade big price actions on short time frames like 5 min. It is better to look at daily or at least 4H charts.

Be careful, if you look at any FOREX chart for USD pairs on 5min or 4h at this time you will see a big outstanding candle in favor of the USD but if you wait for confirmation on daily charts then you can enter the market safely.

The candle at this stage is not a spike it is mostly a big candle with no or small shadow. If you look at longer time frames and observe them for a few days depending on the next fundamental news you may see spikes with shadows. You should wait for the candle after the one with a shadow and if that is in opposite direction then open a trade. By doing this you have waited enough for the first part of the volatility and you have entered a trade safely.

Yes, you may think that you could enter at the bottom of the candle before you see the shadow or the next candle to have more profit. My suggestion is to stay safe and ignore that profit.

AO - Awesome Oscillator

In this video, I am explaining how to use AO to enter and exit a trade. Keep this in mind. Don't rush. If you do not see the opportunity just don't open a trade and wait for the best entry point possible. FOMO is not for analysers!

Price Channel Trading Strategy

Characteristics:

• Channels are banded current trend-following indicators. 
• Similar to other indicators they lagging.
• They have an upper and a lower line.
• Upper and lower bands are at equal distance from a middle line. 
• The area between upper and lower lines is the channel. 

Signals:

• The upper or lower line breakouts.
• The upper and lower lines bounce backs.

Channels can be seen in trendy or sideways markets.

Different types of channels will be discussed in other videos like:

Donchain Channels

Keltner Channels

Fibonacci channels

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Vertical Horizontal Filter

 

I normally do not use this indicator for signals. Instead I am using this to recognise the trend as a confirmation for my signals.

• Rising values confirms continuation of a trend. (Uptrend or downtrend)
• Falling values indicate a ranging market.
• High values: Potentially end of a trend.
• Low values: Maybe start of a trend.

A volatility indicator can help you in interpreting this indicator as in a more volatile market the range will be wider!

Ultimate Oscillator

 

Buying Pressure (BP) = Current Close – Minimum (Current Low or Previous Close)

 

Ultimate Oscillator = 100 x [(4 x Cycle1) + (2 x Cycle2) + Cycle3] / (4 + 2 + 1)

 

Calculation

If:

·         Cycle 1=7

·         Cycle 2=14

·         Cycle 3=28

Then:

Ultimate Oscillator = 100 x [(4 x Average7) + (2 x Average14) + Average28] / (4 + 2 + 1)

 

Overbought and oversold signals:

In an uptrend:

Buy when the indicator rise above oversold line.

In a downtrend:

Sell when the indicator falls below the overbought line.

Divergence signals:

Buy signal normally at the end of a downtrend: Wait for the bullish divergence in the market. This means, the price should make a lower low, but the indicator should display a higher low.

Sell signal normally at the end of an uptrend: Wait for the bearish divergence. This means, the price should make a higher high, but the indicator should display a lower high.

Time Series Forecast Indicator (TSF)

 The Time Series Forecast tries to calculate a best-fit line over a specified time period using Linear Regression. This line is then plotted forward for a user-defined time period.

I use this in an identical way as I use 2 moving average indicators.

So the same setups will be used here. You can watch the video for how to use moving averages here .

The advantages of using TSFs over MAs are:

1. Moving average has more delays.
2. TFS also tries to forecast the price.

Price Oscillator Strategy

The Price Oscillator uses two moving averages.

 ✔ One shorter-period, and one longer-period. 

✔ When 2 MAs cross each other the PO reads 0. 

The Price Oscillator technical indicator can show overbought and oversold areas. 

Strategy: Only go long in an uptrend. Only go short in a downtrend 

Uptrend strategy: Look for an oversold situation to open a buy position. Close when get to overbought then close some more when crossing back to the zero line.

 Downtrend strategy: Look for an overbought situation to open a sell position. Close when get to oversold then close some more when crossing back to the zero line.

Pretty Good Oscillator Indicator

In a Downtrend: Only sell 1. At the end of the overbought area 2. Add when crossing below 0 line 3. Add at the start of Oversold In an Uptrend: Only buy 1. At the end of the oversold area 2. Add when crossing above 0 line 3. Add at the start of overbought Indicator Settings Period 28 Overbought 2 Oversold -2 Your Capital is at Risk. This is only an educational video.

Moving Average Strategies

In this video, I explained the following. What is MA? What different types of MA are out there? Strategies and combination with other patterns.

Median Price Indicator

Median Price is very simple indicator which plots mid-point range for each period.

Lowest Low Value

The Lowest Low-Value indicator plots the lowest low price over a specific period. 

Previously on my other video called "Highest High-Value Indicator (HHV)" I explained how we can combine HHV with MA. (Link is provided below)

On this video, I am explaining how to use both LLV and HHV indicators combined with ATR to confirm trading signals.

HHV and LLV are very reliable in the trendy market, so it is wise to only use them when we have high ATR readings.

Intraday Momentum Index (IMI)

The Intraday Momentum Index (IMI) combines candlestick analysis with the RSI. It takes into account the open and close price over the course of the day. Technical analysts can use the IMI to find overbought or oversold conditions. Please consider the following: ✔There will be more false signals in volatile markets and market collapse. ✔Use SLs ✔This is good to add to the existing Cryptocurrency positions at a deep.

High Minus Low indicator (HML)

 Recognise the volatile market.

Figure out the trend direction.

Open your new positions.

HML indicator simply plots the difference between high and low.

High readings mean we are in a trendy market.

Low readings mean we are moving sideways in a range.

My strategy:

✔Combine this with a volume indicator (Like Accumulation/Distribution Indicator)

✔High reading HML and increasing volume mean we are in an uptrend.

✔High reading HML and decreasing volume mean we are in a downtrend.

For the link to the video, please click here!

Important events for today #GBP #EUR

Yesterdays Corney's speech wasn't that much interesting.

Today we have 2 important events happening for GBP and one for EUR.
Let's see if these events can influence the GBP and EUR pairs.

At 15:30(GMT+8)📢  EUR ECB President Draghi Speaks in Frankfurt.
We can expect High volatility after Draghi's speech

At 16:30(GMT+8)👀 GBP Consumer Price Index (YoY) (APR) Normally High volatility after the results (Forcasted 2.2% Vs Previous 1.9%)
At 16:30(GMT +8)👀 GBP Core Consumer Price Index (YoY) (APR) Again High impact (Forecasted1.9% Previous1.8%)

Depending on what Draghi says and what will be the result of GBP events we can guess the price movements. At this stage we can only manage our accounts to not getting surprises.

Pairs from my portfolio that may affect by these events:
 #EURUSD #EURAUD  #EURGBP #GBPCAD  #GBPUSD and #EURJPY