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XAUUSD - Long Signal $2300/ozGold is beginning to trend downward as the dollar shows a slight uptick in strength at the outset of the EUR/LON session. While the dollar index remains within the range of 105 to 106, a breakthrough above 106.100 or 106.200 could signal further gains for the USD in the upcoming wave. However, it's worth noting that we've been witnessing high timeframe consolidation for some time now. Personally, I'm eager for a significant uptrend in gold (XAU) before any subsequent strengthening of the dollar prompts a downward correction once more. The $2300 mark stands as a notable point of convergence in this scenario.
FX:XAUUSDLong
by Trade_Simple_FX
1
MarketBreakdown | GBPUSD, USDCAD, USDCHF, EURNZD Here are the updates & outlook for multiple instruments in my watch list. 1️⃣ #GBPUSD daily time frame 🇬🇧🇺🇸 The market is trading in a bearish trend on a daily. After the price updated the low, we see quite an extended correctional movement. The pair is currently approaching a key horizontal resistance. The next bearish wave may initiate from the underlined structure. 2️⃣ #USDCAD daily time frame 🇺🇸🇨🇦 Trading in a strong bullish trend, the price formed a falling wedge pattern. We see a test of a key support at the moment. Our strong bullish confirmation will be a bullish breakout of the resistance of the wedge and a candle close above. It may trigger a strong bullish reaction. 3️⃣ #USDCHF daily time frame 🇺🇸🇨🇭 The pair is trading in a strong bullish trend within a huge rising wedge pattern. The price is currently stuck around a key horizontal daily resistance. Its bullish breakout will be our strong confirmation to buy. 4️⃣#EURNZD daily time frame 🇪🇺🇳🇿 The price formed a head and shoulders pattern. We see a breakout attempt of its neckline at the moment. A daily candle close below that will give us a strong bearish signal. A bearish movement will most likely continue then. Do you agree with my market breakdown? ❤️Please, support my work with like, thank you!❤️
Short
by VasilyTrader
1
USDJPY - Strongest uptrend.In my opinion USDJPY may be the best pair to trade for the rest of this year. I was looking at the performance of every major trading pairs from last year, and USDJPY is indeed the pair out of all to have the clearest trend consistency. I've seen how it's been acting all crazy and risky with all the big spikes lately, but that's just the side effects of being the strongest trading pair. I will expect USDJPY to move up at least 1000 pips up until the end of this year if it continues to move up at this rate. Of course the course can break and violate all structures that I've marked, but then it just has to be adjusted over time but as of right now it is most likely to have reactions of these lines that I've marked, because I marked major tops and bottoms, and just dragged them back even further into the past so that they line up with at least three other possible validated tops and bottoms. Keep grinding and keep your heads up. Good luck and high hopes for y'all traders!
Long
by CyberFxTrader
EURUSDHello everyone and welcome to the weekly TOP-DOWN analysis. The week was not the most active in terms of position accumulation, but at the same time, it was quite informative. 1D - The daily timeframe continues to be in a short context. The first problematic zone was completely covered, but we did not receive the expected reaction and continued the long movement, overlapping the FVG. The main problematic zone is the FVG formed on April 10 during the news. I believe that after partially overlapping it, we will continue the short movement towards the lower targets.
Short
by yes_pls_max
WHAT ARE THE DIFFERENT TYPES OF STABLECOINS?👋 Hello everyone, today we will be discussing stablecoins, which currently have a market capitalization of around $160 billion. Those who are not very familiar with cryptocurrencies often use stablecoins for various purposes such as making payments, storing money in a stable currency as an alternative to the US dollar, and for international transactions as well. However, stablecoins actually have a wide range of potential uses beyond these basic functions. In this post, you will learn about the different types of stablecoins available in the market. 💎 DIFFERENT TYPES OF STABLECOINS, THEIR APPLICATIONS, AND POTENTIAL RISKS The type of stablecoin and its purpose are typically defined by the developer, who also establishes the asset to which it is pegged, and creates the system for issuing and burning coins. Stablecoins that are listed on the top 20 exchanges globally in terms of capitalization are the ones that garner the most interest. 💎 SECURED BY FIAT WITH A PEG TO A SPECIFIC CURRENCY Binding can be done in various currencies such as USD, EUR, and others. One of the most well-known coins for binding is Tether. According to its developers, the coin is fully backed by real currency, stocks, bonds, and low-risk assets. ⚠️ However, there are risks involved with backing. For instance, Tether has faced challenges with verifying its backing. The company was not forthcoming in providing all necessary information to auditors. As a result, there are doubts about whether the security can serve as a protection fund in times of unexpected events. In another example, the second largest USDC stablecoin pegged to the USD fell below 87 cents in early March 2023. This drop was widely attributed to the bankruptcy of Silicon Valley Bank, where the startup had held approximately $3.3 billion in collateral. While the situation has since been stabilized, the potential for another bank failure to affect the value of a stablecoin remains a concern. 💎 SECURED BY A SPECIFIC ASSET One example of this is the PAXG coin, which is backed by physical gold. This means that the value of the coin is directly linked to the price of gold, eliminating the need for complicated stock market investments or futures trading. By simply purchasing the coin, you can potentially earn money. ⚠️ However, there are risks involved, particularly regarding security. The price of PAXG is not determined by traditional supply and demand forces, as it is tied to the value of gold regardless of the number of tokens in circulation. The algorithm controls the number of tokens, but there is uncertainty about whether the startup behind the coin will fulfill its obligations in case of unforeseen circumstances. 💎 ALGORITHMIC STABLECOINS One of the most complex models of operation to comprehend is the concept of stablecoins. These digital currencies are built on computer code, which is essentially an algorithm that governs the creation and destruction of coins. There are primarily two types of algorithmic stablecoins 1️⃣ The first type operates without any external backing. When the price of the stablecoin rises, the algorithm mints more coins. Conversely, when the price drops, it burns existing coins. This mechanism seems logical from an economic perspective, but it becomes problematic during times of crisis when everyone rushes to convert their virtual coins into real money. ⚠️ There are inherent risks associated with algorithmic stablecoins as they lack any physical backing. When you purchase stablecoins by providing USD, the developers may use the funds as they see fit. You can only expect to retrieve your investments if someone else injects more USD into the system. The story of Do Kwon and his Luna stablecoin serves as a cautionary tale of such a pyramid scheme. 2️⃣ The second type of algorithmic stablecoins introduces a more sophisticated concept, exemplified by the workings of DAI created by the startup MakerDAO. The innovative approach involves a redundant reservation system, where the responsibility of securing the collateral lies with the user rather than the developers. Each user can mint a DAI coin, pegged to the value of 1 USD, by locking up another cryptocurrency as collateral in excess of 100%. This surplus serves as a safety net in case the value of the pledged cryptocurrency experiences a significant drop, potentially by 50% or more. If the value of the collateral falls below the 100% threshold, the investor's position is automatically liquidated. Notably, developers have no control over the issuance of DAI, with the stability of its price reliant on the collateral provided by users. ⚠️ Despite the innovative approach, there are inherent risks involved. A sudden decrease in the value of the collateral cryptocurrency can result in standard "slippages", where users not only lose their collateral asset but are left with a stablecoin experiencing a drastic devaluation from 1 USD to just a few cents. 💎 WRAPPERD STABLECOINS One popular example is Wrapped Bitcoin (WBTC). Bitcoin and Ethereum are the two largest platforms, but they are not compatible with each other. Developers who deploy startups on Ethereum find that their users also work with BTC as a reliable investment tool. WBTC was created as an intermediary to bridge this gap. The coin is deployed on the Ethereum network and is tied to WBTC in a 1:1 ratio. ⚠️ However, there are risks involved in using WBTC. As it belongs to people, there is a lack of decentralization. Only the portion of WBTC that is in demand is secured, leading to a smaller capitalization compared to bitcoin. The extent to which this network can be trusted is a complex question that requires careful consideration. ✅ CONCLUSION Stablecoins are an effective asset when utilized as a medium of exchange rather than as an investment, unlike gold-backed coins which function more as an investment tool. These coins provide protection against price fluctuations as they are linked to a stable asset. However, they still carry similar risks to altcoins such as detachment from the collateral, a decrease in the collateral's book value, and potential fraud by developers. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
1
Usdchf confirm buy & enter exit levels read the caption In the bigger picture, price actions from 0.8332 medium term bottom as tentatively seen as developing into a corrective pattern to the down trend from 1.0146 (2022 high). Further rise would be seen as long as 0.8884 resistance turned support holds. But upside should be limited by 0.9243 resistance, at least on first attempt. However, decisive break of 0.9242 will argue that the trend has already reversed and turn medium term outlook bullish
Long
by Mrsam36
USDJPY: Key Resistance Ahead 🇺🇸🇯🇵 This bullish rally on USDJPY is absolutely crazy. This week, we saw an exceptional growth. Analyzing the historical price action, I see 2 significant resistances ahead: 160.0 - 160.5 is the resistance based on a price action of 1990th. 164.1 - 164.5 is the resistance based on a price action of 1986th. I believe that we may see a bearish reaction from one of those structures and the price will stop growing there. ❤️Please, support my work with like, thank you!❤️
Short
by VasilyTrader
4
BTC Analysis (27th April 2024) Crypto Analysis (27th April 2024) BTCUSD Analysis On the 4 hour timeframe, price action has swept the buyside liquidity and created a bearish Change of Character, leaving behind a large 4 hour bearish FVG. Price retraced into the fvg, respected it and continued to create a 4 hour Bearish BOS. Dropping to the 1 hour timeframe, price has created a 1 hour Bearish unmitigated orderblock we can look to take sells from if bearish confirmations shows after testing the OB. Else, if price decides to break past the bearish OB, we can capitalise on a break and retest to continue higher.
BINANCE:BTCUSDShort
by CallistoFX
EUR/USD Update: Assessing Bullish Momentum and Risk FactorsAs the new trading week kicks off, the EUR/USD pair finds itself in a sideways movement, hovering around the 1.0660 mark. Last week, market participants witnessed a potential bullish momentum, sparked by several technical signals indicating a shift in sentiment. One notable signal was the recognition of a bullish impulse originating from the 78.6% Fibonacci retracement levels, coupled with oversold conditions observed in stochastic indicators. This convergence of technical indicators often suggests a potential reversal or continuation of a trend. Adding to the bullish case, a Gartley formation and divergence patterns were also identified, further bolstering the optimism among traders. However, amidst these technical signals, the absence of significant economic data releases leaves the pair vulnerable to fluctuations in risk sentiment. The valuation of the US Dollar (USD) could be influenced by market perception of risk, particularly as traders await key economic indicators scheduled for release later in the week. Tomorrow's agenda includes crucial economic data from the United States, notably the Flash Manufacturing PMI, Flash Services PMI, New Home Sales, and the Richmond Manufacturing Index. These releases have the potential to sway market sentiment and dictate the direction of the USD. Furthermore, the performance of US stock index futures provides insights into market sentiment. Futures indicate a positive opening for Wall Street, with gains ranging between 0.3% and 0.5%. A continuation of this positive momentum on Wall Street could exert downward pressure on the USD, consequently supporting further upside potential for the EUR/USD pair. Beyond economic data releases, market participants will also keep an eye on developments in Europe. The European Commission is set to release preliminary Consumer Confidence data for April, offering insights into the sentiment among European consumers. Additionally, European Central Bank (ECB) President Christine Lagarde is scheduled to deliver a speech during American trading hours, potentially providing clues about the ECB's monetary policy stance and its impact on the Euro. In conclusion, the EUR/USD pair navigates a consolidation phase near 1.0660, buoyed by technical signals indicating a possible bullish reversal. However, the pair remains sensitive to shifts in risk sentiment and awaits crucial economic data releases to determine its next directional move. With eyes on both sides of the Atlantic, traders brace themselves for a week filled with potential market-moving events.
Long
by FOREXN1
3
BOJ to boost the yen this Friday? In addition to the eagerly awaited US data slated for release this week, investors will be keeping a close eye on the Bank of Japan's interest rate decision scheduled for Friday. Market expectations lean towards the BOJ maintaining its current rate settings during Friday's announcement. However, analysts and investors will scrutinize the central bank's commentary for insights into its stance on inflation, as well as indicators like consumption and wages. A recent forecast from the Japan Center for Economic Research suggests that a majority of economists anticipate at least one more rate hike from the BOJ before year end. Some market observers speculate that the BOJ's next rate adjustment could be influenced by the depreciation of the yen. However, Bank of Japan Governor Kazuo Ueda has dismissed this speculation, asserting that this won't directly dictate the central bank's monetary policy decisions. Ueda remains optimistic about wage growth prospects and hints at the possibility of another rate hike if trend inflation shows signs of reaching their projected level. While we may not see a rate hike this Friday, Deutsche Bank does speculate that BoJ might be able to support the Yen by either removing its JGB purchasing guidelines from its statement or revising them to enhance the flexibility of its purchasing operations
by BlackBull_Markets
GBPAUD - Downside Range BreakoutI've been monitoring this pair for quite some time as its been ranging since February of this year. After a failed breakout attempt in early April, it looks like price is making another attempt at this week's open. I don't really have a strong directional bias with this pair as it's been in quite a whipsaw pattern for the past couple of months. I'd drop down to the hourly timeframe to plan out my entry and a strong move to 2x ATR would be a good closure target.
Short
by FinancialGamblR
SIMPLE STEPS IN CREATING A TRADING SYSTEMTrading system and strategy are often equated, but this is not quite right. Both a strategy and a trading system is a single algorithm of actions, including the process of searching for signals and opening trades. But strategy is often understood as following certain rules, while a trading system is a combination of technical, fundamental and psychological components. In other words, the creation of a trading system implies a combination of several strategies that work depending on the situation and their combination with external factors (emotions or news). 📊 CREATING A TRADING SYSTEM Creating a trading system is the basis of trading. No one prevents you from finding interesting strategies on the Internet, but a trading system is the very core that defines a trader's personality. After all, all people are different. A system is a set of rules, which takes into account the risk appetite, psychological qualities, and way of thinking. The market is influenced by hundreds of different variables, and in order not to drown in the flow of information, it is necessary to identify the basic path and the most influential factors. Building a trading system starts with choosing a narrow niche, which can/should then be gradually expanded. 📝 THE TRADING SYSTEM SHOULD ANSWER THE FOLLOWING QUESTIONS: • What is currently happening in the market? • What can happen in a fixed period of time? • How can a trader use the obtained information and forecast at the moment? There are several basic variants of price action, which most often form the basis of trading systems: 1️⃣ TREND FOLLOWING When it comes to trend following, the key is to pinpoint the start of a trend and monitor any corrections without mistaking them for a trend reversal. This strategy typically utilizes tools such as wave analysis, patterns, and support&resistance levels. Trend following strategies are commonly implemented on an intraday basis. 2️⃣ BREAKOUT OF RESISTANCE AND SUPPORT LEVELS The direction of the trend is not the key focus. What truly matters is the price breaking through significant levels. The primary challenge lies in distinguishing between a genuine breakout and a false one. 3️⃣ TRADING INSIDE THE CHANNEL This is an alternative to the second option. If the price does not break through the level, it returns to its average value. The main tools are the same levels, oscillators, channel indicators. Additionally, it is important to consider time allocation when creating a trading system. It is crucial to determine the timeframe that best suits your trading style and objectives. Different timeframes, such as intraday, mid-term, and long-term, offer various opportunities and challenges in the market. Understanding how to effectively allocate your time based on your chosen timeframe will help you make well-informed trading decisions: Intraday. Trades are opened and closed within the day with savings on swaps. They can also include scalping. But if scalping is a high-frequency exhausting trade, then intraday means strategies with the frequency of opening trades up to 3-5 per day. Mid-term. Can be held for several days, less often - several weeks. They have a strong dependence on the fundamental factor. Long-term. One of the investment options, providing for the creation of a diversified portfolio of different types of assets. ✔️ The trading system should also answer the following questions: Which asset optimally corresponds to individual preferences (level of average daily volatility, liquidity, winrate, principle of using leverage/margin percentage). What are the main parameters of the risk management system: risk level per one trade and for all open positions, lot calculation formula, etc. What timeframes and technical/fundamental analysis tools to use. What signals correspond to a successful point of opening a trade. At what moment to close trades. ✔️ All these points are obvious, but it is the lack of a clear plan that causes mistakes and panic. A trading system plan is a kind of "road map", which provides for: Different combinations of risk management system parameters. It is not necessary to stick to one risk control strategy. Sometimes an increase in risk is justified. Flexibility is important. Scenario in case of deviation of actual results of the trading system from statistical results (obtained during testing). Behavior in different emotional states. Sources of reliable information. Order of actions in case of force majeure. 📍 In conclusion , developing a trading system is essential for any trader looking to achieve success in the financial markets. A well-thought-out trading plan with a systematic approach helps traders make informed decisions, manage risks effectively, and stay disciplined in their approach. To trade without a plan is to hope for luck, and luck is not comparable with the theory of probability. Therefore, do not neglect the trading plan.
Education
by Lingrid
5