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NZDJPY

How to Catch a Trend? Deep Explanation on a Real SituationGood Morning traders! Interesting idea today regarding the NZD/JPY pair. This post is aimed to all the trend followers, since it implies a breakout of an interesting ceiling. This pair has been consolidating in the current retracement for more than two months, and we can already begin to see intentions of a breakout in the short term. Why do we say this? 🔸Since March 25, the minor trend is clearly bullish. This determines that there is an interesting demand, and it is possible that we will see a brekaout soon. The target of the potential movement is in the next Resistance zone, at 84,000. We determined this based on the analysis of the Weekly chart: 🔸Well, the above is just an analysis. The question is, how are we going to trade this movement? 🔸In the 4H chart we will plan the setup. It involves a corrective move in a throwback towards the broken zone, and then the corresponding momentum. It has a GREAT potential if it happens, since it can be a trade with a return greater than 4 or 5 times the risk assumed. Why are we trading this way? Because we are momentum traders and we look for trades that goes in the direction on the main trend. And how to catch a trend? This is a commonly asked question. As a breakout traders, we always look for clear impulses followed by corrective moves. After that, we will look for the new impulse in the direction of the main trend, using that corrective move to place our entry and stop loss level. Here are 5 examples of the last bullish trend: The first thing we will do is to position on the daily chart to show you all the corrections we saw on the chart. After that, we will decrease to the corresponding timeframe to be able to see the structure comfortably and detail how we would have traded it. We will use a very simple risk scheme, fixed 2: 1 R / R ratio in order to simplify the explanation. The entry point is at the breakout of the structure, and the stop loss below it.
Education
by ThinkingAntsOk
1
NZDJPY – Buyers has to break S1 to mark this trade more confidanWelcome to our Academy. We’re here to help you achieve what you have been looking for. Use our free analysis where you have everything you need for potencial trade ideas and profit. NZDJPY – Buyers has to break S1 to mark this trade more confidant Trend: Buy/ Neutral Support/Resistance: R3: 74.668 R2: 74.094 R1: 72.945 S1: 71.811 S2: 71.499 S3: 70.861 Price action: In this case scenario price is stuck at recent higher high level 72.65 and still will not prove perfect dirrection to break this level. This is why buyers has to break first resistance and hold above this level. After that, price can see potencial targets. At the moment price already bounced from suportical levels which giving us one more signal to see this pair more bullish then bearish. Potencial trade idea: Bulls targets: T1: 74.094 T2: 74.668 Bears targets: T1: 71.811 NOTE – We are trading NZDJPY via the preferred trading setups by EliteFxAcademy Disclaimer: Martin’s views on the Chart analysis is ment as a trading advice for education terms; Education terms include: trading consistency to everyone who is reading this blog; for every advance student and for every Elite student who is using this analysis for managing his equity by Elite strategy and custom indicator. This analysis is understandable and transparent for all Elite students. This is a free content which is based from Academy in term of transparency to support and following progress to everyone. We know that there is always possible way that market can pull you out even when you follow our analysis blog and advice for a trade. We don’t publish where you have to have your risk management – Stop Loss, because, it would not be fair to Elite members, who learned this techniques in our Elite course. Keywords: Elite strategy, Custom Indicator, Fundamental Analysis , Tehnical analysis, Price action, Advanced strategies, Trading Education Good trading! Elitefxacademy
Education
by EliteFxAcademy
NZDJPY – Buyers are close to reaching potencial targetsNZDJPY – Buyers are close to reaching potencial targets Trend: Strong Buy Support/Resistance: R2: 74.625 R1: 71.094 S1: 72.945 S2: 72.487 S3: 71.827 Price action: Following trending idea is headed to new buyers targets, if buyers are able to hold above level S1 and then keep momentum strong. In whole idean, sellers can attact right after market will open or buyers will continue to our previous targets we published before. Potencial trade idea: Bulls targets: T1: 71.094 T2: 74.625 Bears targets: T1: 71.827 NOTE – We are trading NZDJPY via the preferred trading setups by ELITEFXACADEMY Disclaimer: Martin’s views on the Chart analysis is ment as a trading advice for education terms; Education terms include: trading consistency to everyone who is reading this blog; for every advance student and for every Elite student who is using this analysis for managing his equity by Elite strategy and custom indicator. This analysis is understandable and transparent for all Elite students. This is a free content which is based from Academy in term of transparency to support and following progress to everyone. We know that there is always possible way that market can pull you out even when you follow our analysis blog and advice for a trade. We don’t publish where you have to have your risk management – Stop Loss, because, it would not be fair to Elite members, who learned this techniques in our Elite course. Keywords: Elite strategy, Custom Indicator, Fundamental Analysis , Tehnical analysis, Price action, Advanced strategies, Trading Education Good trading! Elitefxacademy
Education
by EliteFxAcademy
TRADING THE INTRADAY TFs - 8 OPPORTUNITIES IN 1 DAY (MUST READ)I wish I could have posted this with the 5-minute timeframe because patterns appear clearer there, but to my realisation you actually cannot post something less than 15M, which does make sense, although Educational posts should be allowed to do that in my opinion. Anyway the purpose of this post is to basically demonstrate that intraday, or day-trading timeframes are also worth trading, given they fit your trading personality as well as having practiced well enough in order to trade them, because they are a totally different world. For some people these timeframes are way too fast so they rightfully choose not to trade them and instead stick with the higher ones, like the D, W, M etc. What is really frustrating though, is the fact that people who choose not to trade these timeframes, completely dismiss them saying that noone should trade them, because they are completely unreliable and un-tradeable. Now, it is true that these timeframes are harder to trade, and given their fast-paced nature they may seem as unreliable to some people but that does not mean that one cannot or should not trade them. Let's not forget about the fractal nature of the markets, and particularly speaking for Elliott Waves, which happens to be the core of my analysis. As taken from the book "...To say, the Dow Jones Industrial Average is in Minute Wave 'v' of Minor Wave '1' of Intermediate Wave (3) of Primary Wave '5' of Cycle Wave 'I' of Supercycle Wave (V), of the Grand Supercycle, is to identify a specific point along the progression of market history.." (Prechter and Frost, 1978). This chart demonstrates what was quoted above. Even though we are looking at the 15M timeframe something else is occurring in the 5M timeframe, just like something else is occurring in the W timeframe. The point I'm trying to make is the fact that whether it is the 5M, or 15m or even 1M does not constitute them invalid, or wrong or unreliable. Now looking at the chart we can see how valid patterns do form in the lower timeframes as well (again in the 5m it would have been much clearer but they can still be identified on the 15M) and had you been trading on that specific day you would have had 8 different opportunities to jump on a trade, even on a choppy sideways move like this one. Does it mean you should have taken all 8? No but my point is that opportunities do exist day in and day out, and day-trading is very plausible, given you have the right strategy and trading plan for yourself. Even if we take a simple example from other markets, consider Stocks, and particularly Penny Stocks (that are listed on the NYSE, ARCA & NASDAQ). I will not generalise or give this as a fact but judging from what I've seen the trading timeframes with those assets are mainly the 5-minute and 1-minute, which does make sense, because I don't know why one would want to buy and hold a penny stock. Concluding, I am not saying that one should just jump on the lower timeframes after reading this post and start trading them. It will take a lot of practice, and it's always wiser to master the higher timeframes, identify the patterns there and then scale down. But again trading these timeframes is very much possible. P.S I want to give my many thanks to @David_Giraldo, who has opened my eyes and made me realise that these timeframes are indeed tradeable, as I had also dismissed them from what I was hearing other people say. Go have check out his profile as you will learn a lot from him too. Bibliography: Prechter, R. and Frost, A. (1978). Elliott wave principle - A key to market behavior. 11th ed. Gainesville, Georgia USA: New Classics Library, p.28.
Education
by Aqua_Trader
6
Correlation Trading - How to Trade Forex With Little to No Risk!Tonight we did a live stream on YouTube offering an in-depth explanation of correlation trading. You can watch the stream back in its entirety here www.youtube.com Below will be a written explanation of correlation trading utilizing the AUDJPY vs. NZDJPY as the example: Correlation trading is an amazing way to add diversification to your trading portfolio and in your trade plan. You can continue your trading plan and strategy but take advantage of correlation trading opportunities as they arise to increase your ability to profit from the forex market. In correlation trading the objective is to find currency pairs that are highly correlated, meaning that when one pair moves in any given direction the other pair also moves in that same direction. A great example of this would be the AUDJPY vs. the NZDJPY. Over the past year the correlation between the two pairs has been very positive, 92% of the time over the past year the two pairs have been moving in sync with one another. This correlation can be confirmed by using the Oanda correlation chart: Once you have confirmed that you are looking at two pairs that are highly correlated to one another, you will want to then look into the charts and compare the price action over the past year. TradingView makes this very convenient with the ability to overlay charts. When we overlay the NZDJPY chart on the AUDJPY chart (candlesticks=AUDJPY, bars=NZDJPY) we can clearly see the times of the year when the two pairs were moving very much in sync and the times where the correlation cracked a bit and the two pairs moved oddly in opposing directions. It is during these times when the correlation cracks that provides us with the immensely profitable and essentially risk free trading opportunities. If you notice on the chart throughout the past year you will see highlighted in yellow boxes all of the times when the correlation has cracked and a gap has formed. We can look at these moments and estimate the average maximum gap in correlation and use this information to gauge when to take a correlation trade on this pair. You will notice every time the correlation has cracked and a gap in price action has formed, price inevitably moved back in correlation narrowing and even closing the gap You will also notice if you look back at the widest portion of the gap from every time there was a crack in correlation that it has been roughly anywhere between 400-500 pips . If we look at the second to most recent gap in correlation that we have labeled on the chart you will notice that at its widest point the gap in price was roughly 600 pips; the high being at 85.500 and the low being at 80.700. If we were watching this occur as it was happening and we noticed the gap in correlation approaching 400 pips and then 500 pips and then 600 pips, forming the widest gap in correlation all year, we could then look to take a correlation trade between these pairs. In this given example around 3/11/16 we would look to take equal positions of long NZDJPY and short AUDJPY banking on the fact that the gap in correlation should statistically, with 92% likelihood, narrow and potentially even close completely so that the two pairs are moving back in correlation with one another. You will see that if we did this we covered on 3/30/16 we would have netted ourselves a fruitful profit of 300 pips. Our short position in AUDJPY would have been down about 20 pips or so but our long in NZDJPY would have been up about 340 pips. This profit came with little to no direction risk because as one position goes against you the other statistically should go in your favor and if you are not netting a profit at any given moment your loss should be simnifically reduced as compared to what it would be if you were only holding the losing position.
Education
by UnknownUnicorn261897
13