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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
Pound-Yen Bullish CrabAs price here enters consolidation before breaking either support or trend line, we have a crab formation completing at 138.1 as shown on the chart on the left. The chart on the right shows overall direction and activity surrounding the support area. If price reaches the D point in the middle of said area, we will see a bounce to our TP level at 140.5. Price will continue its momentum deeper into consolidation before a break. Remember and keep risk:reward a sound 1:3. Crab ratios AB: 0.382-0.618 BC: 0.382-0.886 CD: 2.24-3.618 XD: 1.618
Long
by KyleMcQuade
Bearish Bat Dollar-YenSeems like it's Bat Week this week! In this episode we have a small bearish number on the dollar-yen. A daily charts shows price has retraced as far back as 38.2% of the boom at the end of 2016 following DT's election triumph! A solid support level, price looks to be entering a possible ranging market, heading into consolidation before the recent retracement either reverses or continues. Our D leg on this pattern lands slightly below a resistance level where price has recently bounced. The harmonic dictates that price should bounce again at this level while remaining in consolidation. Price is currently only at the C-coordinate and this pattern may not even complete itself, however it's good to be aware that it's there. Stop loss above the previous high, TP at the pivot level in the middle of the potential range. Happy Trading! Bat Ratios AB: 0.382-0.5 BC: 0.382-0.886 CD: 1.618-2.618 XD: 0.886
Short
by KyleMcQuade
Bearish Bat Cad-FrankThe daily chart on the cad-frank hasn't trended well in recent times and is currently in a declining channel. Scaling down to the 1 hr chart, price has reached the top of that channel just short of the .886 retracement of the bearish bat. This is the ideal time to get in short with a stop loss just above the X coordinate. As per usual practice, indicators aren't used in determining price action, although it doesn't hurt to have a look at the Relative Strength Index where you believe price is approaching a potential reversal zone. RSI looks to be entering an overbought level, bringing a higher reversal probability. Bat Ratios AB: 0.382-0.5 BC: 0.382-0.886 CD: 1.618-2.618 XD: 0.886
Short
by KyleMcQuade
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
Bullish Bat Pound-AussieThis pair is once again testing a level of weekly support in the formation of a bullish bat. The D point is calculated just above this level so it may push past that point to retest the area, however, a considerate stop-loss shout allow for the move to breathe. This movement is coming coherently with a Bullish Gartley on the GBP/USD pair, adding to the solidarity of the price action *find link below* . The TP levels should be set at the 38.2% retracement level, and again at the 61.8% level. The candlestick following point C presses past the 0.886 retracement level but still closes below. Some say this renders a harmonic pattern invalid, but candlestick language confirms that price has therefore been rejected from that level. Exactly what we need! Bat Ratios AB: 0.382-0.5 BC: 0.382-0.886 CD: 1.618-2.618 XD: 0.886
Long
by KyleMcQuade
Bullish Bat Euro/LiraSince October this pair has entered into an aggressive uptrend! Price is moving in a bat formation, heading towards our PRZ. As per natural behaviour, price may enter slight consolidation at the PRZ before continuing with the original trend; I will be looking for an entry asap once the C-D wave is complete. 1st and 2nd Take Profit levels at 38.2% and 61.8% respectively of the distance from A-D. Stop loss slightly behind the X coordinate. Bat Ratios: AB: 0.382-0.5 BC: 0.382-0.886 CD: 1.618-2.618 XD: 0.886
Long
by KyleMcQuade
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
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