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Lewisglasgow

AUD/NZD - Bearish SharkHello traders, it appears AUD/NZD is now completing a bearish shark pattern on the 4h chart. This is an excellent opportunity with a potential 200+ pip return! The measurements for a valid shark are detailed below. C: 1.13 - 1.618 D: 1.618 - 2.24 Final X to D: 0.886 - 1.13 I'm seeing signs of divergence, confirming the reversal at 1.07200. To further validate this move I have been watching AUD/JPY for two months and it is now ready to sell (chart shown below). I hope you all have a great week of trading :)
Short
by LewisGlasgow
14
Intermarket Analysis for BeginnersWhat is Intermarket Analysis? Intermarket analysis is a relationship, or a measurable correlation between four major asset classes: stocks, bonds, commodities and currencies. The majority of forex traders assume that currency markets move in isolation from all the other capital markets... This is entirely wrong as the foreign exchange market underlies every other market in the world, thus creating a complex network of intermarket relationships which dictate the ultimate flow of capital from one market to another. Understanding these relationships can help you determine the stage of the investing cycle, select the best performing sectors and avoid the worst. It is an extremely valuable tool for long-term analysis! The relationship we are focusing today is the between USOIL and USD/CAD. Why does this relationship exist? Trends in commodities and the U.S. Dollar tend to be negatively correlated, this intermarket relationship implies that if the U.S. Dollar has been falling recently, that fact is seen as bullish for commodity prices (as shown on the chart). The price of oil and the value of the Canadian Dollar tend to be positively correlated. This relationship is due to Canada’s status as one of the world’s top oil exporters, selling roughly two million barrels of oil each day to the United States alone. Rising oil prices will therefore tend to reduce the USD/CAD exchange rate as the Canadian Dollar strengthens. You can clearly see from looking at the chart below that a long-term intermarket relationship is present, one which is negatively correlated. To round off this post I truly hope this explained the use of intermarket analysis, there are numerous relationships which you can exploit and use to benefit your own trading. I am available via private message for any questions you may have.
Education
by LewisGlasgow
10
USD/CHF - Bullish 5-0 & Reciprocal AB=CDHello traders, it appears USD/CHF is now forming a reciprocal AB=CD within the CD leg of a bullish 5-0 on the daily chart. The formation of the reciprocal AB=CD is regularly flipped in this situation, starting with A at the C point of the 5-0 pattern but I'd like to see the outcome of this setup! The measurements for a valid 5-0 pattern are detailed below. B: 1.13 - 1.618 C: 1.618 - 2.24 D: 0.50 This is an excellent opportunity with a potential 400+ pip return! I hope you all have a great week :)
Long
by LewisGlasgow
8
GBP/JPY - Market DirectionToday we're taking a look at the future market direction of GBP/JPY on the daily chart. Following up from my prediction 2 months ago which resulted in an 800 pip move (chart shown below), I'm now adding to my long term view on this currency pair. I'm expecting price to continue the bullish trend and create a higher high in the market at 156.000 which will complete a bearish shark pattern (chart shown below). If you have any additional analysis feel free to leave it in the comments.
Long
by LewisGlasgow
10
NZD/USD - Price StructureHello traders, following up from my previous post on NZD/USD with a three drives pattern (shown below). I would like to highlight the price structure on the daily chart which further validates the move lower! If you check out my updates on the idea above I have explained the best areas to jump in on this long term move. We may encounter a bounce off the trendline around 0.70000. I'm still holding my position from last week with my stop loss in profit. Safe trading everyone :)
Short
by LewisGlasgow
10
Foundation of Successful TradingThe Three A's It is a known statistic that over 90% of traders fail and I covered the three main reasons why in my previous educational post (shown below). Now that you know the main reasons why traders fail, it's time to lay the foundation for successful trading. This can be structured and defined by something I call the three A's. #1: Approach Firstly, identify your personal goals and align them with your trading. This is your "preparation step" You need to define your approach, how are you going to trade the market? Use the following checklist as a guide. 1.What is your trading personality/style? 2.Identify which timeframes you will focus on. 3.How will you analyse the market? 4.Develop/follow a trading strategy. 5. Back-test, back-test and back-test. 6. Create your trading plan (including risk management rules). #2: Attitude You now know what to expect from your system. …BUT 90% of trading is psychological Your attitude and mentality towards investing is absolutely key to ensuring your success as a trader. Here are the key components. 1. Realistic expectations. 2. Paitience. 3. Discipline. 4. Commitment. 5. Focus. 6. Emotional control. #3: Application Your final step... Application. At this point, you have put in all of the groundwork and now everything needs to be put into motion. …And for most traders this is where it all goes wrong. Use the following checklist as a guide. 1. Focus on your own trading. 2. Demo before live. 3. Plan your trade, trade your plan. 4. Once consistently profitable, go live. 5. Keep your emotions in check. 6. On-going risk control. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
3
Three Reasons Why Most Traders FailThree Reasons Why Most Traders Fail Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to break down three reasons why most traders fail! Traders Fail?! Yes most do, it is believed over 90% of new traders fail (this is an ongoing debate) but why is that? I personally believe it comes down to these three reasons. 1. Trading without a plan The very first step in achieving success is to create and follow a trading plan , one that is specific to your personality, lifestyle and goals. …BUT Many new traders try to rush the process and simply do not plan for success. “If you fail to plan, you are planning to fail”. - Benjamin Franklin A successful trader works within a well-structured plan, just like a business. Every plan should include trading related goals, a trading strategy and risk management rules. You need to be extremely disciplined when trading and follow your trading plan down to a T. 2. Emotionally Dictated Trading As you may know 90% of trading is purely psychological and I firmly believe this is the main reason why so many traders fail. Allowing adrenaline, fear, elation or greed to compromise their analytical ability. Traders who make emotional based decisions show indecisiveness, close positions too early and do not follow their trading plan ... *FACE PALM* Experiencing a consecutive series of losing positions will test your patience and confidence. Many traders will never overcome their inherent emotional biases, therefor you should seek to understand the range of emotions you may experience as an investor and how it affects your interactions within the market. You can learn what emotions you may face by checking out my idea "The 14 Stages of Investor Emotions". 3. Over Sizing Positions Traders should put as much focus on risk and money management as they do on developing strategy. Over sizing positions is nothing new, I see it all of the time with new and amateur traders. They cannot help themselves and want to trade big, they want the lottery win! ...BUT As you all know seeking out a lottery win in the forex market ends in disaster, accounts end up blown and dreams shattered. At this point many individuals give up and decide trading isn't for them or it doesn't work. The most effective way to deal with this problem is to lower the leverage and risk a maximum of 2% per trade. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
1
AUD/CHF - Bounce or Break?Interesting setup on the daily chart for AUD/CHF with a potential breakout, price has been trading within this area since early 2015. We have just broken out of a rising wedge to the upside (as apposed to the downside) and we're now approaching a major level of resistance, the question is will we see a bounce or break? I'll be looking for additional analysis to capitalise on this move either way :) Please feel free to leave your opinion below.
by LewisGlasgow
5
DXY - Price StructureDuring November 2016 the U.S Dollar broke out and closed above an extremely important resistance level and since then price has returned to that exact level, raising a lot of questions in terms of analysis going forward. Straight away you can see price was been stuck in consolidation since the beginning of 2015. Testing support and resistance multiple times within that 2 year time period, struggling to breakout until November! Now that we are trading above the resistance level and 200 EMA I would consider a bullish U.S Dollar short term... Pay close attention to this price structure throughout 2017.
TVC:DXY
by LewisGlasgow
4
A Simple Lesson in Risk ManagementUtilising a Risk to Reward Ratio How many of you obsess over an 80% profitability rate? You may feel the need to be right all the time and cannot accept a large amount of losing trades. OR You may think in order to become a profitable trader you need to win more than you lose. Well it's time to put that aside. You do not need to have a high profit/loss ratio or profitability rate to become a profitable trader, you can be right just 50% of the time (as shown on the chart) and still make an excellent profit by utilising a strict risk to reward ratio when trading. You can actually have a profitability rate of 40% with a 1:2 risk to reward ratio and still be in profit! The higher your risk to reward ratio the less you need to be right, many professionals use a minimum of 1:3 meaning they will risk 100 pips to make 300 pips. I personally use a minimum risk to reward ratio of 1:2... But in order for you to do the same, it has to align with your trading strategy. Do not set unrealistic profit targets in which you will not achieve! To round off this post I truly hope this explained the positive effects of applying a strict risk to reward ratio in your own trading. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
17