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GBP/AUD upside ready for next week...Recently we have finally seen some rest bite for the pound after looming USD data. Other instruments are markets have also somewhat corrected and as we can see from GBP/AUD we are picking up some momentum to the upside with targets of 1.8400 for next week. Always follow your trading plan regarding entry, risk management, and trade management. The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations.
Long
by FTUKcom
4
Thematics Outlook The future is green and highly connected“We tell ourselves stories in order to live”, Joan Didion (writer and journalist). Thematic investing brings this notion to the fore. Avenues of investing aligned with megatrends are inherently predicated on visions of the future. But what makes thematic investing a lot more palatable than prophesising is that certain megatrends are already in motion. Thematic investors, therefore, need only observe the direction of the current and swim with the tide. The stories they tell themselves reveal what places they will witness along the way. But, of course, timing does matter and the bear market in 2022 has created an attractive entry point for long-term investors. Moreover, the investment industry now offers discerning investors ways to access differentiated themes aligned with unique megatrends. For investors, this means more stories to choose from and two themes appear especially interesting at the present juncture. The future is green – the inevitable energy transition Following 18 months of intense wrangling, the US has passed a $700 billion economic package deemed by many as a monumental step in tackling climate change. The bill includes $369 billion for climate action including tax credits for households to buy electric vehicles and support for renewable energy, carbon sequestration research, hydrogen power, and small-scale nuclear reactors1. Creating an energy sector that is both sustainable and sufficient will require major investment across all forms of clean energy including renewables, hydrogen, biofuels, hydro, and even nuclear. Most recently, the European parliament has moved to classify future investment in natural gas and, more notably, nuclear power as environmentally sustainable (under certain conditions) in a pivotal shift recognising the need for an ‘all of the above’ approach to phasing out fossil fuels. Low hanging fruit The energy sector accounts for around three quarters of global greenhouse gas emissions with road transportation accounting for the largest share at 11.9%2. It therefore makes sense to start where most progress can be made and can have the greatest impact. According to Bloomberg New Energy Finance’s Long Term Electric Vehicle (EV) Outlook 2022, the EV market represents an $82 trillion market opportunity between now and 2050 in a net zero scenario. This is on account of not just the vehicles but the ecosystem of industries surrounding them, which includes battery technology, commodities, charging infrastructure, and recycling to name a few. No half measures The electrification of road transportation could create a 27% increase in electricity demand by 20503. It is therefore crucial that the electricity itself is also clean. Among renewables, offshore wind is all the rage right now - and for good reason. According to Wood Mackenzie, almost $1 trillion is expected to flow into the offshore wind market over the next decade, given its scalability. But more renewable power will also require more energy storage. Battery technology again comes into play. Lithium-ion batteries, effective for shorter duration storage, will be complemented by emerging longer duration storage technologies. This will ensure the energy supply is not only reliable for a few hours, but days and weeks. The future is highly connected – the ongoing digital transition According to Statista, the number of internet of things (IoT) connected devices worldwide rose from 8.6 billion in 2019 to 11.3 billion in 2021 and will likely reach 29.4 billion by 20304. The world is becoming increasingly connected, and there are many facets to it. Every cloud has a silver lining The world has shifted quickly from renting cassettes and DVDs to cloud-based streaming services which use artificial intelligence to offer a personalised experience. Video streaming is not just occupying our television screens. It dominates our mobile phone usage as well. According to Ericsson, global mobile data traffic has risen from 10.9 exabytes (EB) in 2017 to 90.4 EB in 2022 and expected to reach 282.8 EB by 2027 with video being the primary driver of this data binging Gartner forecasts that public cloud end user spending will grow by 20.4% in 2022 to 494.7 billion, up from 410.0 billion in 2021. This number will reach nearly $600 billion in 20235. Now, for end users sitting in their homes streaming content, movies, and TV shows, everything may be in the ‘cloud’. But for YouTube, Netflix, and Spotify this data needs to be physically stored somewhere. The explosion in data usage will require more data centres and ever-increasing internet speeds. For investors looking at cloud computing as a megatrend, the opportunity is not just in the software, but also the real estate that provides the necessary infrastructure. This megatrend is not optional If a business hastens to shift to the cloud, collect all the necessary user data to improve its service, but then bungles it all up by falling victim to a cyber-attack, the result could be catastrophic. More connectedness means more points of vulnerability for the nefarious types to exploit. Cybersecurity Ventures expect global annual cybercrime costs to reach $10.5 trillion by 2025, up from $3 trillion in 2015. As a consumer of any product or service, cybersecurity is something you never want to hear about. If everything is in order, nothing happens. But that is only possible if businesses ensure robust guardrails are in place. Cybersecurity, therefore, is a megatrend that is not optional, but mandatory. It is what makes a connected world sustainably possible. But what about the risks? Yes, further hawkishness from central banks could create more turbulence. Nevertheless, monetary policy shouldn’t alter the direction of travel. So, keep an eye on those inflation prints and the response from central banks. Deglobalisation can also pose a challenge, especially for the energy transition which depends on certain commodities. Supply chains span across the globe and a coordinated effort to tackle climate change would be more fruitful than a fragmented one. Conclusion The protagonists will change, the antagonists will change, and there will be unforeseen twists and turns. And for each investor, the plot may thicken somewhat differently. But the stories are underway. And now is an excellent time for investors to not only observe that the world is becoming greener and more connected but help drive the change they want to see. Sources 1 Source: Financial Times 8 August 2022. 2 Our World in Data based on 2020 figures. 3 Bloomberg New Energy Finance Long Term Electric Vehicle Outlook 2022. 4 Source: Statista in cooperation with Transforma Insights, May 2022. 5 Source: Gartner April 2022.
EURONEXT:CLE5G
by aneekaguptaWTE
Streamr broke wedge, now perhaps falling to strong suport.DATA/USDT broke its months falling wedge and is now falling to its strong support at around 0.022. Depending on the global crypto market (mostly BTC and ETH) it may reach this support. However, the RSI states DATA is heavily oversold at the moment. So, we might see a potential rise to reach the wedge again if other large caps stay stable. After DATA has stabilized, the next challenge is the 0.07 strong support. More on the practical use cases of this coin can be found on the streamr.network website. I believe that Streamr is still a gem waiting to be discovered by most people. The technology is sufficient in complexity and serves numerous use cases. With the new head of marketing Streamr may become one of the larger top-100 crypto's in the next bull-run. As biased as I am, because I love new innovative tech, this is my idea of the direction of the DATA coin.
by Pepelaar
How to make quick 40 pips in USDJPYSince the FED last week went from an ultra hawkish stance to a more data dependant one it is clear that US data will now become even more important and volatile for USD pairs and also for the whole market. And thats great news! It means we can now extract pips from the market every time there are important US news like for example the ISM manufacturing data today. If you want to participate you can enter to my group trough the link in my bio. For the ISM report yesterday it was really easy to get 30-40 pips out of USDJPY: 1. The ISM came better than expected with 52.7 vs. 52.1 consensus. -> go long USDJPY immediately 2. Algos drove USDJPY higher for 40 pips 3. Take profit immediately when the first impulse of the move weakens. 4. Market participants realize that the most important subcomponent of the ISM, -> prices paid <- , came much lower than expected (60.0 vs 75.0 consensus) 5. USDJPY falls all the way back again I made easy peasy 40 pips and so can you next time.
Long
by PrimeTrading
Risk:Reward Ratio. What is it?Risk to reward ratio. What is it? What does it mean and how do we use it? Now, if you made it to the point where you're here on TradingView, there's a good chance that you have heard about Risk to Reward ratio. Today, I want to dive into what it really means and how to actually utilize it. I see so many beginners missing out on huge profits and opportunities because of their risk reward ratio and I want to share my knowledge of this tool and how to actually use it in the future. Firstly, let's dive into what is the risk/reward ratio? The RR ratio is a tool that can accurately predict by expected returns based off of previous results. This tool measures how much reward you are estimated to gain based off of the dollar amount you risk. For example, if you have a risk to reward ratio of 1:3, it means for every $1 you risk, you will gain a return of $3 in the event of a positive trade. Using the same example in the FX market, let's say you're risking 10 pips on EURUSD, your take profit is at 30 pips. This means you gain 30 pips in the event of a win, lose 10 pips in the event of a loss, giving you a 1:3 risk/reward ratio. This is a very powerful tool because compared with the win rate and in correlation, you can actually predict based off of your previous results, you're expected returns on investment. Being able to predict what you're expected returns are are great way of giving you milestone targets, but also when you're looking at getting funded with prop firms, you also know what you are actually able to achieve in what time frame. Now, it goes without saying, the higher your risk to reward ratio, the less you need to win in order to maintain profitability. The opposite, the lower your risk reward ratio, the higher win rate is required to maintain profitability. But this is where we get into where I find beginners struggle. A lot of people will base their strategies on their risk/reward ratios, which is understandable if you're building the strategy from scratch. If you're using a prebuilt strategy or something that doesn't really correlate with risk/reward ratio. Then it makes it obsolete and just confusing. Going back to my first point, risk to reward ratio is a tool that you can use to estimate future potential returns based off of previous results. Let's say you have 100 trades worth of data. You can accurately have a look at what is your risk to reward ratio is and compare that with your win rate. From there you can make a decision whether or not that is a profitable strategy. On top of that, you can then start to look to improve either your win rate and risk to reward ratio, knowing that that is an area that needs improvement. When it comes to improving your risk to reward ratio, one thing that always grinds my gears with traders, is when they enter a trade, they'll set their stop loss and take profits based on their risk to reward ratio not based on the actual analytics of the trade. While I understand this and with some strategies, this can work. For most, they end up setting those take profits in areas that is just realistically is going to be really hard for the price to get to. What professionals do when trying to improve the risks of reward ratio is only take those setups where a good take profit is viable around that level of risk to reward. For example, in this chart, we are looking at buying the USDCAD over the next couple of weeks. We like this setup. We've had our entry signal and we're going to place a stop loss below that recent low, which was created early last week. We are not happy with our risk to reward ratio. We think we're leaving too much profit on the table and want to increase our overall results. So I'm only taking trades that have close to a three to one risk to reward ratio. But as you can see by this chart that dotted lines are areas of resistance which we are going to have to break in order to achieve that level of profitability. There are 5 different zones we are going to have to get through in order for my take profit to be hit, it is fair to say the odds are not in my favor. Now a beginner Trader will still enter this trade with the same take profit and the same stop loss and just hold on. The reason they'll do that is because they want the 1:3 risk reward ratio. They don't care where the profit target is. What matters is it is 3 times worth what they're risking. On the other hand, A professional trader will actually either let this trade go and not enter it, or look for another entry point later on on smaller timeframes to where you can fit that risk to reward ratio and you're not going to hit the high levels of resistance. To sum up what my point is, risk to reward ratio is a very powerful tool to understand what you are capable of the trader and also where you can improve. It is not a valid take profit selection strategy. Yes, it can definitely help with guidelines on where to set your take profit, but it should not be the sole reason your take profit is set at a certain price just because it is X amount whatever you are risking. Have a look at what the chart is telling you and what your analysis is telling you. Then, only take the trades which coincide with the risk to reward ratio. You want to achieve. I hope you enjoyed this insight and I hope it was beneficial to you. I recommend highly diving into your previous trading data. Have a look at your win rate. Have a look at your risk reward ratio and understand what your profitability expectation really is and base your future decisions off of that data. Have a fantastic trading we can I look forward to seeing your comments. - Jordon
FOREXCOM:XAUUSDEducation
by the5erstrading
5
DOW JONES WILL GO ABOVE 31800dow jones at 1 hr time frame looking bullish setup as per fixed range volume profile maay attemp above 31250 towards 32500 and that journy may trigger todayy evening with u.s. gdp data will come so if anything positive out come is coming then big rally will come and it may trigger our market expiry trending as well. its just a view and probablity so thats why we took this 33600 ce as btst if their is any chanses for gapup and shortcovering we will in that trend early with small risk as 12k is whole risk for just 4 lots lets see. DOWJONES SKILLING:DJ30
SKILLING:US30Long
by lonewolfcommunity
109% Mapped Short-Term For Streamr DatacoinHello my fellow cryptocurrency trader, another beautiful day today. Looking at Streamr Datacoin, one of the many low market capitalization altcoins, we have some interesting signals. While the big market capitalization altcoins printed a lower low after 12-May, the smaller ones are printing higher lows... Giving us a very important and revealing signals. It will all grow. We have an ascending triangle, bullish RSI with a break above EMA50. These are the signals, the rest is on the chart. Namaste.
Long
by AlanSantana
1