GBP/NZD - LONG... Did you just get stopped out? Here's whyDid you just hand back over some money to the market after what you thought was a great entry? But why, that "support" looks fantastic? You might have thought;
Multiple touches in the past, strong zone.
Price created some nice bullish Price Action, it must be bouncing off the support.
We had a huge strong move up not too long ago.
This is accumulation within that strong move now is a good entry.
Lets enter and place our stops underneath that strong zone, surely price will fly!
All the banks and the big investors see is a nice zone full of stop losses, great liquidity for the taking. Why would the banks try and fill their massive orders at a worse price, when they can manipulate it downwards and gain a much much better entry.
Trade smarter not harder. Follow the big money in the markets. Wait until the liquidity (stops) have been cleared out, then enter!
BIG-W
THE TREND IS YOUR FRIEND... but don't trend trade!!As you have probably heard do not trade against the trend. I'm going to assume you know what this means but if you don't read the bottom paragraph first.
Trading with the trend is obviously much more beneficial to us, and its clear why we shouldn't go against it. But have you tried being a trend trader? Aka a person who tries to identify trends and rides these huge moves out and scales in along the way?
For starters markets range 90% of the time, so only in 10% of market conditions are you going to succeed. Assuming you don't miss the big move because of all the previous losers and break evens you had in ranging conditions which filled you full of self doubt.
There are people who successfully trend trade, and I ask myself why bother??? It is such a struggle, you have to go through so many loosing streaks and keep calm and collected until that big move comes and you're in on it. For me that is too much stress and too much of a strain on my brain.
Trade with the trend when there is one of course. Only buy if there is a clear uptrend and sell if there is a downtrend. But in my advice I would steer clear of trying to follow the trend orcatch these big moves; you'll get chopped up hard in between!
I like it simple. See where people just got wiped out by the banks and follow the big boys.
Do you want to join our gang Haha?
You stay classy San Diego.
***** Trading with the trend is only buying in an uptrend, and only selling in a downtrend, if you do not know what a trend is, message me or google "How to identify a trend in trading" *****
The next Big Short (predicting the next recession)Hi guys, I will be presenting a trade idea that is of a much larger scale. This trade idea involves predicting the next recession - something that is at the back of almost every investor's minds.
I will be proposing an open trade at 45.06, which is represented close to the fibonacci 0.786 level, a stop loss at the 51.94 level (which is close to the previous high), as well as a conservative take profit level at 40.22 as represented by the fibonacci 0.618 level as well as a second, more risky take profit at 20.51, which is represented by the previous low.
The reasons for the next recession can be summed up by the following statement: a bubble in the fixed income market.
1. Ultra low interest rates by government bonds push yield-hungry investors to corporate bonds, which offer a much higher yield.
2. This leads to the cost of borrowing to fall for these corporates, which in turn provides more capital for the companies to conduct share buybacks, thus artificially pushing the prices of stocks up (which is why we see the S&P 500 testing new highs despite cash flows out of the stock market and into cash and bonds being the highest since 2008)
3. Lesser transparency and covenants by these companies as there is inelasticity and a fall in bargaining power by lenders for corporate bonds.
4. The fallen angel risk as well as the credit downgrade risk has been rising and is at an abnormally high rate at the time of writing, reflecting that companies' debt to equity ratio is increasing.
It is only a matter of time that companies will start being unable to repay or refinance their debt, and this will be exacerbated by a mass sell-off of CLOs in the event of a fall in consumer sentiments in the bond market, therefore increasing companies' cost of borrowing and rendering them unable to refinance and repay their debts.
I am open to any criticism and I humbly accept that my opinion has many caveats. Do let me know if you guys have any opinions on this trade idea.
Cheers!
Description in, simple and understandable. If not that, what?Recently I witnessed myself some people being unaware of our financial situation, worldwide.
The TVC:SPX is very close to a BOOM! Mathematically proven, but again, that doesn't mean much nowdays. The benefit of the doubt and a load of other crazy things happening is not impossible. This scenario is most probable in my opinion and i'm very invested to it !
We are in the bring of a possibly disastrous situation that would leave the world shattered behind it.
So big that the world would demand change.You are all free to agree or disagree but know that I will support strongly my beliefs till I'm proven wrong.
Trying to educate myself I am more than happy to exchange educational ideas or thoughts and of course constructional feedback.
Anyone who wants can just come join us on this journey on our facebook page : www.facebook.com
British Pound on parity with the USD in long term? British Pound and the USD on parity? It could well be happening in the longterm as a big picture 3 wave structure to the downside stays in tact. The key levelis highlighted in blue. Should we break under this support we will have further confirmation that this setup can well play us. It will defenitly interesting to watch this pair over the next couple of session as Brexit uncertainty has increased recently.
BTC BIG MOVE SOON INC.Will it break to the upside or the downside? My opinion is that BTC is going to break to the downside. Because I reckon that healthy markets should retrace when it moves into a bubble or blow up top. When you look at the extrapolated move, it would make so much more sense. If BTC does heads towards the fib. golden retrace. $7500 region. Hopefully once it's reached, it will rocket up back to towards the moon. But the worst case bearish scenario is, that BTC heads towards $4700 region creating a higher low, before it goes towards the moon and perhaps even beyond. Good luck and be cautious!
BTC Big Picture - keep it simpleThis chart is intendedly not very technical to keep it simple. It presents a direction where we are heading pricewise. Keep in mind that there will be less bitcoin generated going forward and probably more bitcoins being lost and frozen forever. This and the fact that Bitcoin gains more significant as a store of value will help supporting the trend line.
Stamp, marketstructure severely damaged | Discounted pricesLooking to add to portfolio with a long term outlook. Cyan line is average (time * price) of measured period. I'm looking to scale in (pyramiding) just below diagonal cyan line (i.e. buying the stops of prev swing low of cycle high). Lineair undervaluation at orange targets.
Rare crossing : huge move?I've never seen such a pattern in the S4W Horizon indicator. It's really a very tight
crossing that is happening. I think it's an ignition point to something big to occur.
So based on my analysis, I won't be surprised to see an important bullish move.
But I think also there is a correction, unfortunately to occur at 3850 USD.
Right now the S4W Horizon indicator is still bullish, let's see if that micro-crossing
is talking for a big up move or for something else.
Right now, as I said, I don't have a clue, since it's new. but I think it's an important
moment that occurs since that crossing is showing up.
I can't tell more. Let's watch.
Don't take my words for granted, analyze, analyze, then trade at your own risks
PS: if you like my analysis, join to get more analysis. I like to be Liked too (like/2/B/Liked/2)
Big moves!With the action packed fundamental week following the Trump announcement to end the government shutdown, I feel we can see a nice exhaustion into a beautiful continuation pattern following the breakout late Friday. Aligning up with a key sentiment fib level we have a ton of confluence to take this 3:1 outstanding trade!