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XAU/USD: a detailed chart breakdown and the next targetFirstly, taking a look at the WEEKLY timeframe chart, we can clearly observe how the price has reached a key level of resistance that lines up with the upper boundary of the descending channel plotted on the graph. At the same time, the same level aligns with the 0.618 Fibonacci retracement level. Zooming into lower timeframe charts, we can add extra confluences and identify how the price is forming a nice top around the local zone. With our Stop Loss level above the freshly formed top and the Target Profit at the zone of support shown on the graph, we look forward to launching SELL positions. Have an incredible trading week, family!
FOREXCOM:XAUUSDShort
by Investroy
14
EUR/USD: fasten your seatbelts. We are on our way to JupiterUpdating the previous EUR/USD where we received many controversial comments from people not accounting for the current fundamentals. Yes, from the technical perspective, things looked bearish. However, the price proved many people wrong by spiking above the sideways-moving rectangular box and re-testing the upper boundary of it. Moreover, as portrayed on the chart, the descending trendline that is connecting the previous tops was also violated. These factors give us enough confidence that the price will keep rising and reach the two targets set on the graph.
Long
by Investroy
51
EUR/USD: detailed analysis. A major reversal is on the wayAs it can be inferred from the current price development, the price is ranging within the borders of a sideways-moving rectangular box. While from the higher timeframe perspective it looks like the price is testing the area of a previous support later turned into resistance, the bullish pressure, the DXY, the correlated pairs, the economic factors make us believe that the sentiment of the market is rather bullish than bearish. Thus, we are keeping a close eye and looking into entering long positions and aiming for the two target plotted on the chart
Long
by Investroy
36
USD/JPY: multiple confluences are lining up for a “BUY” positionAs it can be inferred from the intraday timeframes, a nice ascending channel has been formed and the price has rejected the lower boundary of it. The same lower barrier nicely lines up with the area of previous resistance later turned support that is plotted on the graph. We are expecting for the price to keep rising and reach the area of resistance that aligns with the upper barrier of the channel as illustrated on the chart.
Long
by Investroy
15
USD/CAD: watch this dump happenThe massive ascending channel is still in play and it makes the price action look absolutely magnificent. The 1.294 key zone has been nicely rejected and a massive bearish candle has been printed. This alone (and a bit of intuition) gives us enough confidence that the price will keep plummeting to the downside and reach the area of the lower boundary of the channel illustrated on the graph and potentially drop even below that and visit the area of support plotted on the chart.
Short
by Investroy
8
USD/JPY: bullish moves will most likely continueThe price has been in a bullish rally for almost the whole duration of the year. And from the look of it, it will keep growing as long as the JPY remains weak against other currencies. Looking at the current price action, it can be clearly inferred that the price has nicely bounced off the level of previous resistance that has turned into support. At the same time, the same zone nicely lines up with the 0.618 Fibonacci retracement level. Thus, we are pretty positive that the price will keep growing and reach the area of resistance indicated on the graph
Long
by Investroy
18
USD/CHF: descending channel formed. Where to aim for?As it can be observed from the H8 timeframe chart of USD/CHF, by re-testing the area of the previous Higher High, the price has given us enough confidence that the overall sentiment of this pair remains bullish. Moreover, a nice descending channel has been formed and the price is currently sitting at the lower barrier of it. The same lower barrier nicely lines up with the area of previous resistance later turned support as indicated on the graph. Based on the confluences mentioned above, we are pretty positive that the price will keep pumping to the upside and reach the target indicated on the graph.
Long
by Investroy
9
GBP/JPY: detailed chart breakdown. Where are we headed next?On the 13th of May, the price visited the area of the previous resistance that later turned into support (in other words, the previous Higher High) and nicely bounced off it, giving us enough confidence that the sentiment of the market remains bullish. More to it, taking a look at the current price action, we can observe that a sideways-moving range has been formed and some serious candle wicks have rejected the lower barrier of this range. Now, we are expecting for the price to keep rising and reach the upper boundary of the range as indicated on the graph.
Long
by Investroy
8
EUR/USD: more drop inbound or is it enough?The price is consolidating and possibly forming a top at the area of the upper boundary of the formed descending channel. The question is, will the price be able to reject this zone and drop, or the EUR will gain strength and start impulsing to the upside. Either way, we do not predict, we react. Although our current bias is bearish, we will closely monitor the price action round this level before making our decision. If the price manages to reject this zone, we are gonna look for short positions. On the contrary, if the price manages to spike above this level, we will change our bias and look for potential long positions upon some confirmations.
Short
by Investroy
32
GOLD (XAU/USD): long-term projection. Where are we headed next?By taking a look at the Weekly timeframe chart of Gold, it can be observed that the price has nicely bounced off the area of the 2020-2022 Low that serves as a crucial area of support. It can also be inferred that a massive sideways-moving range has been formed and the price has rejected the lower barrier of it. Zooming into lower timeframe charts, we can notice that an ascending channel has been formed and the lower boundary of it has been rejected. At the moment, the price is slowly approaching the zone of the previous Lower Low and we are expecting for a pullback to happen before bullish moves continue. Thus, we are gonna closely monitor the price action and wait for some more bullish confirmations around the major zone of support portrayed on the chart before we enter long-term BUY positions and target the upper barrier of the rectangular range.
OANDA:XAUUSDLong
by Investroy
14
"Stop it, Picasso! Trading should be kept simple."Quick question: which of the two illustrations portrayed on the graph do you enjoy more? If your preference is the one on the right, then you should have definitely continued the legacy of the Renaissance era artists. On the contrary, if you prefer the one on the left-hand side of the screen, let’s become friends. Starting with the portrait (let’s put it that way) on the left, we can observe how everyhting is illustrated in a crystal clear way. Firstly, no indicators have been used, which makes it easier for us to read the chart. Second, it has been shown that with as few as 2-3 confluences, a trade has been executed. On the opposite side of the road, we have the portrait which is depicted on the right side of the screen. We can see how blurry, messed up and confusing it all looks. Two random EMA’s crossing each other, ABCD patterns, Elliott Waves, tens of thousands of Fibonacci retracement levels, random Support&Resistance levels and many other indicators have been added into the chart with zero purpose. Yes, indicators could and should be used as confluences. However, by adding tens of indicators into your charts, you are not beating the market. Just like in real life, everything should be utilised in moderation. The purpose of this idea is not trying to damage the reputation of indicator trading, but to show that pure price action will always be the king. Many beginning traders get tricked into believing that by adding multiple indicators into their charts, they will have a high win rate, a successful trading journey, long-term profitability. Little do they know that many indicators contradict to each other and perplex novices into entering random positions. Of course, as we always say, if it works for you, then go for it. Chart analysis is only a part of your trading plan. There is also psychology, risk management, discipline and so forth.
BITSTAMP:BTCUSDEducation
by Investroy
47
USD/CAD: the bearish moves will most likely resume The idea from the previous week pretty much remains the same. After having nicely rejected the upper boundary of the ascending channel illustrated on the graph, the price action has given us enough confidence that the bearish moves will most likely continue till the lower barrier of the formed channel is reached. At the moment, the price has nicely corrected the impulsive bearish candle that was printed last week. A very nice top is being formed and we are eyeing to enter SELL positions once enough confirmations are provided. Happy new trading week, family!
Short
by Investroy
51
EUR/GBP: time to drop it like it's hotAs it can be observed from the graphical illustration, after breaking out of the ascending channel plotted on the graph, the price has pushed up to re-test the broken level that lines up with the 0.618 Fibonacci retracement level. From the looks of the current price action, the price is forming a top around the local level of resistance and charging up for bearish moves. We are looking into entering short positions and aiming for the level of support indicated on the chart.
Short
by Investroy
22
This is why patient traders are profitable and consistent"Cut the losers only, let the winners run". One of the quotes that are pretty popular among beginning and experienced traders. Sounds pretty simple, but let's take a look at it in practice. On the left-hand side, we have illustrated the recent trading history of a patient trader, and on the right side, that of an impatient one. Taking a close look at the recent trades of the patient trader, we can observe that he has a solid trading plan, rock-solid psychology and discipline, and a very good risk management plan. Out of 5 trades, he has only won 3 of them. But due to the fact that he risks only 1% of his trading capital per trade and sets realistically-positive Take Profit levels that vary depending on the market, he makes really appetising returns. On the contrary, the impatient trader has everything to fail. If we take a look at the recent trade history, we can notice that this trader neither has a well-defined risk management strategy nor any discipline or patience (well, the name says it all). There is a common misconception in the world of trading that states: "the higher your win rate is, the more profitable you will be in the markets". This statement is absurd and totally incorrect. No matter how high your win rate is, if you are not risk tolerant and you put all of your eggs in the same basket, you will be far away from reaching the doors of consistency and profitability. To add, patience and a strong psychology are heavily linked and cannot exist without each other. Hence, once you teach your mental state the importance of the ability of sitting on your hands and waiting, your trading journey will head towards the correct direction. Enjoy the read! Investroy.
BITSTAMP:BTCUSDEducation
by Investroy
29
EUR/USD: Picasso kind of art and the beauty of price actionLet's take a look at the incredible price action that we have on EUR/USD. First of all, living in the EU-zone, I am deeply saddened that EUR is melting like Carte D'Or ice cream in the middle of boiling La Côte d'Azur. However, being traders, bull or bear, we have an ability to benefit from every scenario. Taking a look at the DAILY timeframe chart, it can be inferred that a nice descending channel has been formed and the price is ranging within the borders of it. Zooming into lower timeframes, it can be observed that the price has nicely rejected the lower boundary of the channel, which gives us enough confidence that the price might keep growing. With the overall sentiment of the market being bearish and having considered the weakness of the EUR, we are only looking for short and middle-term long positions. The zone of the upper boundary of the descending channel looks like a potential Take Profit level. The fact that it nicely aligns with the zone of previous support later turned resistance that lines up with the 0.618 Fibonacci retracement level gives us enough confidence that this particular area might act as a zone of reversal. Happy new trading week, family!
Long
by Investroy
42
USD/CAD: interesting scenario. Massive drop pending?As it can be clearly observed from the higher-timeframe charts, the price of USD/CAD is trading within the barriers of the massive ascending channel. Last week, the price attempted to break above the upper boundary of the channel, but failed to do so, leaving a huge wick spike to the upside. Monitoring the LTF charts, we can notice that the price has printed some nice bearish candles and may potentially continue its bearish moves. We are closely observing the situation and waiting for the price to visit the 1.304 area of resistance and give it a "last kiss" before we look forward to executing SELL positions and aiming for the lower boundary of the channel as portrayed on the graph.
Short
by Investroy
16
BITCOIN (BTC/USD): simple and neat breakdown. Further drop soon?Let's have a look at the multi-timeframe chart analysis of Bitcoin. Firstly, taking a look at the Monthly timeframe chart, it can be noticed that the price is sitting on a key area of support. Logically, we should expect for the price to bounce from this zone and keep rising. However, looking at the previous few candles, it can be inferred that the bearish pressure is way too strong for a bullish reversal to happen any soon. Zooming into lower timeframe chart, we can observe that the price action looks magnificent, as accumulation+distribution phases keep taking place one after another. At the moment, we can see that the price is ranging in a sideways-moving rectangular box. The last time when that happened, the price continued dropping dramatically. Hence, we are expecting for the price to follow its historical movements and continue plummeting to the downside.
BITSTAMP:BTCUSDShort
by Investroy
62
EUR/GBP: middle-term correction time. Multiple confluencesAfter a breakout, we usually expect a re-test, right? As it can be noticed from the graph, the price has successfully broken out of the ascending channel plotted on the graph. Moreover, at the moment, the price has formed a nice bottom at the area of support shown on the chart. The recent spike below the local support has been able to grab liquidity and charge up for bullish moves. We are pretty sure that the price is gonna keep rising till the area of resistance that lines up with 0.618 Fibonacci retracement level as shown on the graphic.
Long
by Investroy
15
Unraveling the bitter truth about compounding in trading"I'll start with $100 and flip it to $10k" is one of the lies we tell ourselves when we first start trading. Although compounding can do some wonders, without realistic expectations and targets, you will not reach your goal. Illustrated on the chart, we can see a sincere and a deceitful statistical representation of a compounding system based on a year-long tracking. All numbers depicted in percentage-based returns are for example purposes. For both cases, we will have a $5000 beginning capital to work with. Looking at the left hand-side of the screen where the realistic statistics are, we can observe that the ROE (return on investment) numbers differ from one month to another. Some months result in a small loss, some are in deep profits and so on. Just like every single trade, every single month should result in the following: - A big win - A small win - A small loss - A breakeven On the contrary, looking at the table portrayed on the right side of the screen, we can see a blurry image of compounding. Expecting to make a fixed return of 10% every single month is nice, but unrealistic. No matter how well-backtested your trading strategy is, in the world of business and finance, nothing is 100%. Plus, there are several factors influencing our trading life: changing market conditions, negative impact of the surrounding environment on our everyday lives and so on. What we are trying to emphasise is that mentally and psychologically, it is impossible to make huge returns consistently on a monthly basis. The bottom line: have a trading plan that fits your lifestyle the most, be disciplined, risk-tolerant, cold-blooded. And most importantly do not rush the process, as good things come to those who wait.
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BITSTAMP:BTCUSDEducation
by Investroy
122