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BITCOIN: we might see $52k really soonThe price has been heavily rejecting the crucial $40k area of support. As it can be inferred from the graphical illustration, the price has formed a nice double bottom on the same zone of support, and the recent bullish candles area pretty powerful, indicating buyers' dominance. If we draw a long descending trendline form the ATH, we can observe that the price has broken out of it and is now ready to fly like a rocket. If the price manages to break and retest the $45.7k area of resistance, we can expect a push into the $52k area. What do you think, family? Can the price keep pushing to the upside or bearish moves are not over yet?
BITSTAMP:BTCUSDLong
by Investroy
114
GOLD (XAU/USD): detailed breakdown and explanation In the previous analysis for GOLD, we had mentioned that the price is most likely to visit the area of the ascending trendline that aligns with 50% Fibonacci level once again, before continuing its moves to the upside. As it can be seen from the graphical illustration, a nice bullish hammer candlestick pattern was formed earlier, as the price nicely rejected the area of 0.5 Fibonacci retracement. We are now expecting for the price to keep rising all the way up and reach the zone of $1877. Happy trading, everyone!
OANDA:XAUUSDLong
by Investroy
37
Common Chart Indicators: Part IHey, traders! In this series, we’re going to cover some common chart indicators available for general market. To keep it simple and easy to read, there will be several parts to this educational post. We’re really hope you enjoy it, so let’s get started! Bollinger Bands are a technical indicator created by John Bollinger that is used to determine market volatility and identify "overbought" or "oversold" scenarios. A quick recap would be that there are typically 2 lines in this indicator, that get close together when market is non-directional and if you see them spreading apart that means that there is something volatility building up. There is also a 3rd line representing the middle line which just an SMA (usually a 20). Think of this indicator as a dynamic support and resistance where the price tends to come back to the middle line. Keltner Channels is a volatility indicator created by Chester Keltner, a grain trader, in his 1960 book How To Make Money in Commodities. Linda Raschke later produced an updated version in the 1980s. Linda's Keltner Channel, which is more often used, is quite similar to Bollinger Bands in that it has three lines as well. In a Keltner Channel, however, the central line is an Exponential Moving Average (EMA), while the two outer lines are based on the Average True Range (ATR) rather than standard deviations (SD). The Keltner Channel contracts and expands with volatility, although not as much as the Bollinger Bands, because it is derived from the ATR, which is a volatility indicator. Keltner Channels are used to set trading entry and exit points. What exactly is MACD? Moving Average Convergence Divergence (MACD) is an abbreviation for Moving Average Convergence Divergence. This technical indicator is a technique for identifying moving averages that indicate a new trend, whether bullish or negative. After all, finding a trend is a key priority in trading because that is where the greatest money is produced. A MACD chart normally has three numbers that are used to establish the parameters. The first is the number of periods that the faster-moving average is calculated across. The number of periods utilized in the slower moving average is the second factor. The number of bars utilized to construct the moving average of the difference between the faster and slower moving averages is the third factor.
BITSTAMP:BTCUSDEducation
by Investroy
9
Correlation of Different Markets with Forex: CheatsheetOne of the biggest things you should understand as a trader is prices don’t just go up and down (well, maybe on a really small timeframe they’re more chaotic). They’re usually backed by some actions, data and things happening in other markets. This all creates general economic tendencies. But how do we know what affects dollar/currency pair and how? Well, here is a quick cheat sheet for that case. More importantly with an explanation of why. 😊 USD and Gold (negative) Investors prefer to abandon the dollar in favor of gold during times of economic uncertainty. Gold, unlike other assets, retains its inherent worth. Gold and NZD/USD (positive) New Zealand (number 25) is a major gold producer. Gold and AUD/USD (positive) Australia is the world's third-largest gold producer, exporting around $5 billion worth of gold each year. Gold and USD/CAD (negative) Canada is the world's fifth-largest gold producer. When the price of gold rises, the pair tends to fall (CAD is bought). Gold and USD/CHF (negative) Gold backs up more than a quarter of Switzerland's reserves. As gold prices rise, the pair falls (CHF is bought). Oil and USD/CAD (negative) Canada is one of the world's top five oil producers. It exports 5..5 million barrels of oil per day to the United States. As oil prices rise, the pair falls. Bond Yields and USD (positive) Higher bond returns attract greater investment to a country's economy. This makes its native currency more appealing than the currency of another economy, resulting in lower bond yields. Here it’s more about looking out for bond differences between countries. For instance, if bond difference between UK and United States goes down, this will cause GBPUSD fall as well. Gold and EURUSD (positive) Because gold and the euro are both considered "anti-dollars," if gold prices rise, the EUR/USD may rise as well. USD and Stock Market (depends on the market situation, mostly positive) So, here is a little weird one. Strong stock market is an indicator of a strong economy. So as company gets stronger -> stock price goes up -> attracting more international investors to step in, who have to get local currency in order to buy a local stock -> this cases dump of other currency in favor of the currency we’re intending to buy the stocks with (in our case USD). Seems easy? On the other side, people from the local economy dump their dollar/bond holdings to acquire more stocks weaking the currency itself. That’s why it’s a complicated love story. This correlation is quite different depending on the volumes for both cases. Enjoy, family! But keep in mind that these tendencies change to some extent as the world economy shifts/develops. Make sure to always stay updated and observe on your own.
TVC:DXYEducation
by Investroy
13
GOLD (XAU/USD): more upside movements en routeThe price is currently sitting at an important level of resistance. The last few DAILY timeframe candlesticks are indicating a massive bullish pressure. As or right now, it is a bit difficult to predict whether there is a possibility for the price to drop till the 50% Fibonacci level before continuing its powerful bullish movements. However, we will keep monitoring the price action and look for more confirmations before going long and aiming for the target level indicated on the graphical illustration. Happy trading, everyone!
OANDA:XAUUSDLong
by Investroy
21
USD/CHF: detailed chart breakdown and next targetTo begin with, the sentiment of the market is bearish. Massive bearish candles have been printed and the price has been dropping dramatically. As a rule of thumb, after an impulsive move, a correctional move should take place. The price is currently sitting on a major level of support and we can see some signs of a short-term bullish reversal. We are expecting for the price to keep rising on the short-run and reach the area of resistance illustrated on the chart that lines up with 50% Fibonacci retracement level. From there, we will be looking forward for the price to form a nice top, before we go short and aim for the targets depicted on the graph.
Short
by Investroy
10
EUR/USD: is it finally time for big moves?The price of EURUSD has been ranging within the borders of a formed ascending triangle for the past few consecutive weeks. It can be observed that bullish pressure has stepped into the market and is trying to drive the price higher to the upside. Only if the price manages to break the crucial zone of resistance and re-test it, we are gonna be aiming towards opening LONG positions and targeting the 1.153 zone of resistance, which previously acted as an important area of support. Have a great trade, everyone!
Long
by Investroy
25
EUR/GBP: massive channel still holds strongThe price of EG has been ranging within the borders of a downtrending channel for the past few consecutive months. As it can be inferred from the current situation, the price is rejecting the lower boundary of the formed channel and forming a nice bottom. After enough confirmations have been provided, we will look forward to opening LONG positions and aiming for the upper boundary of the channel that lines up with 0.848 zone of previous support turned resistance.
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Long
by Investroy
38
USD/CAD: where are we headed next?To start with, the sentiment of the market is bearish. A nice downtrending channel has been formed and the price is at the lower boundary of it. We can expect the price to keep growing on the short-term and complete the re-test of the broken zone of support and visit the area of the upper boundary of the created channel before continuing its downside movements. We are gonna wait for a nice bottom to be formed before we set our target at the resistance line of the formed range. The long-term target profit will be set at the 1.23 zone of crucial support. Happy trading, family!
Short
by Investroy
8
Why did I fail?How many traders do you think ask this question to themselves? Well, if we dig deeper into statistics, we’ll see that #1 reason differentiating successful traders from the rest 90%+ is proper use of margin and leverage. For every $50,000 in their account, most experienced forex traders and money managers trade one standard lot. If they traded a mini account, this indicates that for every $5,000 in their account, they trade one mini lot. Allow it to soak in for a couple of moments. Why do less experienced forex traders believe they can win by trading 100K standard lots with a $2,000 account or 10K micro lots with $250 if professionals trade like this? Never open a "regular account" with only $2,000 or a "micro account" with $250, no matter what the forex brokers tell you. Some even enable you to start an account for as little as $25! The number one reason rookie traders fail is because they are undercapitalized from the start and have a poor understanding of how leverage works. However, this all also goes back to our previous lessons on figuring out what type of trader you are. For instance, we’re slightly more aggressive (and as our SL are usually extremely tight), we stick with 1% (which still allows us to open 2 lots for 50.000$). However, if you have hard time monitoring the trade or prefer to have more “breathing room” for a trade, consider 1 lot for 100.000$ of your trading capital. All the best and stay safe, fam!
BITSTAMP:BTCUSDEducation
by Investroy
6
Quality vs QuantityThis has been an ongoing battle between generations of traders and we’re here to provide some insight and let you choose between what type of a trader you would like to be. When it comes to trading, there appears to be a lot of misunderstanding on both sides about the Quality versus Quantity Debate. Because this is such a crucial topic for a trader, we've been meaning to write about it for a while, so now is the moment to dispel some of the misconceptions, misinformation, and misunderstanding. Let’s go ahead with some common arguments: 1) It is less stressful and more accurate to trade greater time periods. 2) Anything less than a one-hour chart is merely noise. 3) Trading smaller time periods leads to excessive trading and analysis. Statement #1 is 90% true. Usually, it’s easier to observe big economical trends on larger timeframes. You’re pretty much becoming an investor at that point. However, with more risk we usually tend to have more reward. IF executed properly, more trades on a smaller timeframe should yield more pips? Not exactly! The market reality is different. Overall, it’s a good rule of thumb to stay open-minded and capitalize on market moving both directions, but it’s also easy to get caught in this battle. Our advice for newbies here, try to aim for less trades for the same overall reward. Statement #2 is also kind of true. Except sometimes, it’s a useful noise. One-hour charts and lower are extremely useful for proper entries. On larger timeframes 20-25 pips don’t matter, but over time they add up. Think of it as a casino. They only have 3-4% edge over players, but if you spin the roulette 10.000 times, this difference will be useful. Pay attention to our entries and rank your past trade on a scale of 1-10. Statement #3 is 50% true. DON’T analyze charts on M15, with all the honesty and not to offend anybody, you have to be a psycho or a genius to see a pattern through all those extreme outliers. If you have that 20/20 vision, good for you, but keep in mind that structures on M15 are completely unreliable, so in the long run, failure is inevitable. On the chart itself you can see the visual difference between the “Trader A” and “Trade B”. Which one would you like to be yourself?
BITSTAMP:BTCUSDEducation
by Investroy
15