Get started

USD

What exactly is FOMC? What is FOMC, and what does it do? FOMC stands for Federal Open Market Committee. It's a group of people who work for the US government and makes decisions about the country's money. They decide how much money should be in circulation and how much it should cost to borrow money. How does FOMC affect the forex market? FOMC's decisions can affect the forex market because they can change the value of the US dollar compared to other currencies. For example, suppose FOMC raises interest rates. In that case, it can make the US dollar more attractive than other currencies, increasing the exchange rate. If they lower interest rates, it can make the US dollar less attractive, which can decrease the exchange rate. What is the FOMC statement, and why is it essential for the forex market? The FOMC statement is a document that FOMC releases after each meeting. It explains what the FOMC members talked about and what they decided to do with interest rates and the economy. This statement is essential for the forex market because it helps investors and traders decide what to do with their money. They might buy or sell different currencies based on the FOMC statement. How does FOMC affect currency exchange rates? FOMC can affect currency exchange rates by changing the value of the US dollar compared to other currencies. If FOMC raises interest rates, it can make the US dollar more attractive than other currencies, increasing the exchange rate. If they lower interest rates, it can make the US dollar less attractive, which can decrease the exchange rate. Why do traders pay attention to FOMC meetings? Traders pay attention to FOMC meetings and the FOMC statement because it can give them an idea of what might happen to the US dollar and other currencies. They might make trades based on what they think will happen after the FOMC meeting. For example, if they believe the FOMC will raise interest rates, they might buy US dollars because they think the exchange rate will increase. NOT FINANCIAL ADVICE DISCLAIMER The trading related ideas posted by OlympusLabs are for educational and informational purposes only and should not be considered as financial advice. Trading in financial markets involves a high degree of risk, and individuals should carefully consider their investment objectives, financial situation, and risk tolerance before making any trading decisions based on our ideas. We are not a licensed financial advisor or professional, and the information we are providing is based on our personal experience and research. We make no guarantees or promises regarding the accuracy, completeness, or reliability of the information provided, and users should do their own research and analysis before making any trades. Users should be aware that trading involves significant risk, and there is no guarantee of profit. Any trading strategy may result in losses, and individuals should be prepared to accept those risks. OlympusLabs and its affiliates are not responsible for any losses or damages that may result from the use of our trading related ideas or the information provided on our platform. Users should seek the advice of a licensed financial advisor or professional if they have any doubts or concerns about their investment strategies.
TVC:DXYEducation
by OlympusLab
SMART MONEY CONCEPTS #1: LIQUIDITY THEORYHi everyone! As you all should know by now, I mainly use smart-money concepts to enter into my trades. Today I will be talking about the concept of liquidity and how to capitalise on it. Looking at the graph, there are 4 main types of liquidity that I use and as stated in the chart, I will normally look for entries off the liquidity grab zones or liquidity hotspots as I would describe. Make sure to backtest and forward test into your chart data to identify which type of liquidity are the most prevalent. There are many many different forms to liquidity zones and knowing when a liquidity grab occur can be a very profitable strategy.
OANDA:XAUUSDEducation
by Jon_Jones_Junior
3
Trading EUR/USD with Moving Averages and Price ActionA simple way to trade EUR/USD is by taking advantage of its tendency to retest the 200-period moving average on the hourly chart. To do this, wait for the currency pair to move away significantly from the 200-period moving average and show signs of overbought or oversold conditions with two peaks or troughs, along with divergence. This presents an opportunity to enter a trade in the direction of the moving average. To execute this strategy, first, identify the 200-period moving average on the hourly chart of the EUR/USD pair. Next, monitor the price action to look for significant deviations from the moving average with clear signs of overbought or oversold conditions. This may include the formation of two peaks or troughs with divergence in the price action. Once you have identified these conditions, consider entering a trade in the direction of the moving average. For instance, if the price is significantly above the moving average and shows signs of overbought conditions, consider entering a short trade. On the other hand, if the price is significantly below the moving average and shows signs of oversold conditions, consider entering a long trade. In summary, this strategy involves identifying overbought or oversold conditions in the EUR/USD pair, along with divergence and two peaks or troughs, as it moves away from the 200-period moving average. This can help you identify trading opportunities in the direction of the moving average. ----------------------------------------------- Share your feedback in the comments and demonstrate your support by liking the tutorial. Please follow if you're interested in more tutorials like this. Your support is highly valued!
Education
by Candlestick_OB
2
Rates Obsession - a pro interest rates set-up on TradingView Interest rate pricing has a huge effect across many financial markets at present – the correlation between short-term rates, rates volatility and the USD is certainly evident. However, with such a big window for increased volatility in interest rates pricing, as traders try and price the prospect of a 25bp or 50bp hike at the 22 March FOMC, as well as peak fed funds pricing, could increased pricing result in a big move in the USD and NAS100? In the video, we look at how we can look at the fed funds curve and understand ‘what is priced in’ – we look at how to measure the degree of cuts priced in for a specific period of time, and how to look at implied volatility in bond markets – and, why it is important for FX and index traders? Interest rates and short-term US Treasury bonds are the first derivative and so many markets take their direction from these inputs - hopefully, this gives some understanding of how you can use TradingView more effectively to assess these inputs.
TVC:US05YEducation
by Pepperstone
4
January EffectHello guys! Have you ever heard of the "January effect"? It's a pattern that has been observed in financial markets where the prices of small cap stocks tend to go up in the month of January. Some people think this happens because of tax-loss selling (when investors sell stocks that aren't doing well in order to reduce their tax burden) or because more people are interested in buying small cap stocks at the start of a new year. It's important to remember that the January effect isn't a sure thing and shouldn't be the only reason you make investment decisions. What do you think about this effect?
Editors' picks
BLACKBULL:US30Education
by m_maia14
10
The Best Time to Buy an AssetThe passing of time often creates one of two things. It can create Wealth or it can create Regret. For instance… Many people will say, I wish I bought real estate, crypto, stocks, etc. at certain times…then I’d be rich. We are all pretty good at looking backward and saying, “What if?”. With Investing, the two most common reasons people miss opportunities are because they aren’t paying attention or aren’t prepared…and usually, it’s both. The best thing to do is: 📌 Get Educated with proper knowledge 📌 Analyze different factors and Research on them 📌 Create a plan/strategy and start working on it
Education
by FortuneAI
WHAT IS A PIP AND HOW TO MEASURE IT?WHAT IS A PIP? The pips is the unit with which we measure the price movement of a pair. Example: If the USD/MXN pair is used. If the dollar is worth 20.7 and rises to 20.8, it is said to rise to 1 cent but in FOREX it is not measured with cents, it is measured with pips. The price of the USD/MXN chart has 3 extra decimal places 20.8 000 those 3 extra decimal places are what the pips are measured with: the pip is the fourth number after the point . If the price changes from 20.8100 to 20.80101 the price moves 1 pips, if the price moves from 20.80100 to 20.80110 the price moves 10 pips and if the price moves from 20.80100 to 20.80300 the price moves 200 pips. Pips are calculated differently depending on the pair, pairs with Japanese YEN and pairs WITHOUT Japanese YEN PAIRS WITH YEN
Education
by Ed_Ale
2
Golden Advice from Takashi Kotegawa🎥Takashi Kotegawa turned around $12K to $200M in just 8 years and reached a net worth of a whopping $ 1.8B from trading in his bedroom🍻 When I met Stocks Genius Takashi a few years ago, he gave me one of the best trading advice👇🏻 Trade with small size while learning Only risk 1% of your account size each trade Master one setup Find a solid mentor Journal your trades and study your data Follow your plan consistently regardless of the outcome Take Trading decisions as unemotionally as possible Focus on these points, instead of focusing on goals like: I want to make 5K or 10K a month🍻
Education
by FortuneAI
Fall of USD as Global Reserve CurrencyIf you give someone a button to print money, they will press it 1,400 years ago the Roman republic inflated its currency until its empire collapsed USD used to be backed by gold, but that ended in 1971 This allowed governments to print endless money Hyperinflation is just a matter of time The US government learned to overspend and print the difference The debt is now $31 trillion and $100 trillion in liabilities The only way out is printing more money But destroying the savings and hard-earned tax money of citizens Global reserve currencies change every 90 years So, Monetary Switch is inevitable Checkout Venezuela's 2013- mid-2020 Inflation data The paper that is used to print a dollar is not actually worth a dollar. The paper does not have value, it simply represents the value. It is not money because it holds no individual value. To take it a step further, dollars are actually the OPPOSITE of value. Dollars are debt. A dollar is a PROMISE to pay back debt. The U.S. is over a trillion dollars in debt. A trillion is “1” followed by 12 zeros. It’s a thousand billion. A trillion seconds is 32,000 years. A stack of $1 bills would be 68,000 miles high. So how do we pay back such monumental debt? Taxes. It’s painful, but it’s obvious. So, the dollar is the PROMISE of the U.S. government to pay back over a trillion dollars of debt by taxing its citizens. And, to kick you while you are down, the debt is still growing. The dollar is actually debt. That is why the smart rich don’t work for dollars, they work for assets like BTC and GOLD Thank You for Reading. Like and Share!
Education
by FortuneAI
2
InvestMate|December the worst month for bulls on the US dollar🐻December statistically the weakest month for the US Dollar, a statistic since 2000 against the EUR/USD. Relative to statistics, December is the month in which EUR/USD gains the most. The average EUR/USD increase for the month is over 1.58%. This year there is a really good chance that the rule could be confirmed. December statistically the weakest month for the US Dollar, a statistic since 2000 against the EUR/USD. Relative to statistics, December is the month in which EUR/USD gains the most. The average EUR/USD increase for the month is over 1.5% This year there is a really good chance that the rule could be confirmed Historically, the increases have been: 2000: +8% 2001: -0.37% 2002: +5.59% 2003: +5.04% 2004: +1.91% 2005: +0.44% 2006: -0.3% 2007: -0.3% 2008: +9.75% 2009: -4.48% 2010: +3.15% 2011: -3.62% 2012: +1.54% 2013: +1.43% 2014: -2.93% 2015: +2.84% 2016: -0.66% 2017: +0.85% 2018: +0.84% 2019: +1.8% 2020: +2.45% 2021: +0.4% 2022: ? Average: +1.589% 🚀If you appreciate my work and effort put into this post then I encourage you to leave a like and give a follow on my profile.🚀
Education
by InvestMate
1
The USD 'smile' model - explaining the USD rallyWhen we think of the USD, and what drives capital, the USD ‘smile’ theory is an interesting and logical model to conceptualise the fundamental drivers of price action. The basic principle is we can think more strategically about the regime that drives the USD, and this has consequences for price, and by extension commodities and other second-order derivatives of the USD. • Left-hand side – the focus here is risk aversion across broad financial markets – this could be driven by several factors, including an increased recession risk and geopolitics – but increased market stress and the USD will typically attract buyers. Conversely, a risk rally will see capital flow out of the USD • Right-hand side – the US exceptionalism story – in some capacity the idea of TINA rings true here – that being, ‘There is No Alternative - where investors see the US as having the most resilient economy and considered to be the most attractive investment destination • The middle section sets a focus on a regime of synchronized global growth/contraction – essentially in a synchronized global growth upturn, perhaps with rising liquidity, we typically see bearish trends in the USD and clear outperformance in cyclical currencies, such as the AUD, NZD, and NOK USD drivers into October ‘22 As we see on the daily, the USD rallied throughout 2022 peaking in September and October, with both the left- and right-hand sides of the ‘Smile’ working concurrently for the USD. This is a rarity, but can be a potent force, especially given this time around we went through a regime shift from zero interest rates and QE to rapid rate hikes. A deeper dive as to the left-hand drivers, we saw fears of a global slowdown and economic contraction driving capital into the safety of the USD – Looking at correlation analysis, we see the USD has been unequivocally negatively correlated with the S&P500, providing a strong and unrivalled hedge against equity drawdown – the fact that cash-like assets (I’ve used 1-month swaps) in the US pay some of the highest rates meant traders achieved compelling levels of ‘carry’ or income – in effect, funds are still paid to play defence. On the right-hand side, fears of a deeper economic contraction in China, Europe, and the UK, certainly on a relative basis, again saw the USD outperform. We can also see that while inflation rose aggressively in most DM countries, we also seen dovish pivots from the BoE, ECB, and RBA, and yet the Fed have kept a consistent tone – well, at least Jay Powell has. A USD decline After the US CPI report (10 Nov) we saw the USD take a dive, stopping just shy of the 200-day MA – on one hand, the right side of the ‘Smile’ becoming less USD positive – where rate hikes were priced out and the terminal expectation of the fed funds rate fell to 4.87% (from north of 5%). We can also see the mid-part of the ‘Smile’ worked against the USD - We saw China looking less bad, with its plans to allow property developers easier access to capital, amid a multi-step guide to unwind its Covid zero policy, presumably after the ‘Two Sessions’ sitting in March 2023. There has been a less bad feel towards Europe, with EU Nat Gas prices falling from €342 to €100 – EU data, more broadly, held up and Italian BTP spreads were contained vs German bunds. A USD turn – but can it last? Since the lows in the USD (I’ve used the USD index / USDX as my proxy) on 15 Nov we’ve seen a reasonable counter-rally back above 107 – the technicians will argue the USD was oversold and due a bounce anyhow. However, if we think about the news flow and how it relates to the ‘smile’ theory, we’ve seen the emergence of increased uncertainty on China’s Covid plans – Korean 20-day exports fell 16.7%, while Taiwanese exports fell 6.3% YoY. Crude and copper have shown us the way, but traders are expressing a view of a global growth slowdown, which of course favours USD strength. The news flows may change as we head into what will be a big December by way of event risk– bad US data will impact the right-hand side of the smile and weaken the USD, especially if the US labour market shows real signs of cooling and core CPI undershoots again. Should US data hold up, but Chinese and EU data deteriorates, well that’s USD positive, especially if we see an equity drawdown. I’ve not seen a momentum USD buy signal on the longer-time frames yet – however, with terminal fed funds pricing above 5%, which we consider that to be fair, it feels like global growth is probably the factor that will drive the USD into year-end. The smile could be a good guide to think about the USD direction.
PEPPERSTONE:USDXEducation
by Pepperstone
Educational Series - Smart Money Concepts ( Liquidity )Hi there guys! I will be doing a short tutorial on Smart Money Concept's liquidity. What is it? - Liquidity acts as a driver to move the market in a specific price range. - We can find liquidity in areas where many people place stop losses and buy/sell stops. - Market makers will manipulate the price in order to break through these obvious zones and seize the liquidity. How to look for them - You will be looking for areas where price are of relative equal highs/lows. - Areas where price has not gone to swept the "stop losses" Why is it useful? - Helps to forecast where price might potentially head to - Potential areas for take profits upon clearing of liquidity - Avoid placing your stop loss at liquidity areas It takes some time to learn how to spot liquidity. If you do enjoy this tutorial, feel free to follow me and boost this post! :) Regards, Chen Yongjin
OANDA:XAUUSDEducation
by DogeStonks
4
November FOMC preview – where the risk to markets resides Time – 3 Nov 5am AEDT / 6PM GMT (Jay Powell speaks at 05:30 AEDT) Central bank meetings are just so important to sentiment and market structure – when we’re trading a major market theme, such as inflation and rising interest rates, this is the market’s chance to mark-to-market policy changes and how the collective in the bank guide our expectations for future meetings ahead. For traders, notably for those who have exposures sensitive to policy changes, they simply must assess the potential for big volatility, which could affect their positions – our job is to recognise the propensity for sizeable movement, the skew in the outcome distribution and if our stop placement is too close/far from the market. Do we reduce, exit or in some cases even initiate positions? For others, the central bank meeting will shape the trading environment and the market structure they work in - not just for that trading session, but for the following days ahead. Consider day traders who work within a specific timeframe and need to assess if price action constitutes a trending day, and therefore they look more closely at momentum strategies. Or is it more of a choppy, sideways, range-bound day, and therefore looking more readily at intra-day mean reversion strategies? ‘Environment recognition’ is key for day traders and scalpers and edge comes from being able to identify the regime we’re in – perhaps through the application of market profile, VWAP, Bollinger Band strategies (to name a few), as well as good old fashion price action. An overview of the November FOMC meeting As we know event risk seldom gets more important than an FOMC meeting, so this is a risk we need to manage. Trading these tier 1 events takes skill like no other – we must react to the statement, but then 30 minutes later we react to individual words and nuance in the press conference from chair Jay Powell. It’s always the high frequency algo’s that recognise the keywords first and we mortals are left trying to react according. Even once the presser has finished and the dust has settled, quite often we see the ensuing Fed members speaking over the coming week giving their own personal view, and often when we’ve seen violent moves on the day, they will walk back any extreme reaction. The first move is not always the right move. To some, this lively backdrop, especially when we consider reduced liquidity can be nirvana-type conditions. To others, this is the environment where they have no edge and see it best to stand aside and let price do its thing. A hawkish ‘step down’ on the cards We’ve been treated to a roller coaster in Fed ‘pivot’ expectations - Ranging from a WSJ article of an impending ‘step down’ in the pace of hikes starting at the December meeting. To dovish turns from the RBA, ECB and BoC – however, the Fed are their own boss and they see US labour market data that has been solid (as donated by the Employment Cost Index and JOLTS report) – US 5-year inflation expectations are rising and next week’s US core CPI print will likely be close to unchanged at 6.6% YoY - it seems highly unlikely that the Fed will want to promote a positive reaction in risky assets, and the risks to markets in my mind are skewed to a hawkish reaction – equity up, bond yields and the USD lower. In the Fed’s view, putting the US into a recession is still a lesser evil than not tackling entrenched price pressures. While traders would fall off their chair if the Fed didn’t hike by 75bp at this meeting, it’s the guidance for future meetings which is where we get a reaction in markets. We are likely to hear that the pace of hikes in the future will fall to a more conventional pace – this is the ‘step down’ many have focused on. But this narrative will be accompanied by strong conditionality, and the statement will be about giving the Fed maximum flexibility and optionality for the December meeting – that call will be fully data-dependent. So, consider there is a lot of information between now and the 14 December FOMC meeting – we have 2 non-farm payrolls reports, the Oct CPI print (11 Oct) and the midterm elections. It’s no wonder the market is pricing 62bp of hikes for that meeting and hedging their bets of a 50 or 75bp hike – it's this pricing for the Dec FOMC meeting which I think is key for markets. Rates Review – we see market pricing for the Nov FOMC meeting at 75bp – then a step to 62bp in the Dec meeting. The holy trinity – the three markets to drive cross-asset volatility Pricing for the December FOMC meeting So part of the reaction will be seen in the pricing for the Dec FOMC meeting which currently sits at 4.41% – traders can see this on TradingView by typing ‘100-ZQF2023’ into the navigator. A dovish reaction would be to see this headed below 4.4%, where we would expect the USD to sell off and gold and equities to rally. A push towards 4.50% would see USDJPY push towards 150 and EURUSD through 0.9800. Terminal fed funds rates pricing We also look at the terminal rates pricing – this is the peak of market expectations for where the Fed can take rates, which currently sit in the May to June 2023 period at 5% – we can type in ‘100-ZQK2023’ into the navigator. A firm break above 5% would send risk lower. US 2-year Treasury I also look at US real rates and 2yr Treasuries (US02Y) closely as a driver for risk assets – If yields rise then we should see the NAS100 and gold fall and the USD spike, especially if we take out the 21 Oct high of 4.63% – conversely if yields fall/price rise then the USD will likely fall. As always around key events, the reaction in markets is a function of: • The outcome vs Expectations • Positioning • Hedging activity • Liquidity My own view is the risks are skewed for a hawkish reaction – USD higher, but I will recognise the moves in rates suggests the market is largely positioned for this outcome.
PEPPERSTONE:USDXEducation
by Pepperstone
2
GOVERNMENT BONDS YIELD. INVERTED CURVEWhat are GOVERNMENT BONDS YIELD? Bonds are Fixed Income instruments that allow investors to anticipate the flow of funds they will receive. What does an inverted yield curve mean? Put simply, this means that short-term US debt is more profitable than long-term debt. Economic theory says that in a “normal” situation, long-term lending should be more profitable than short-term lending. An inverted yield curve occurs when the yield on short-term bonds (US03MY, US06MY, US01Y) is greater than the yield on longer-term bonds (US30Y, US20Y) . This is bad for the economy and worse if it is the United States because it means that they are relying on the economy in the short term since the "normal" thing is that long-term bonds give better yields. Some economists and analysts see in this situation an indicator that a next economic crisis is coming, either in the form of a slowdown in GDP or even a recession.
TVC:US30YEducation
by Ed_Ale
📚Learn More💰Earn More - Inverse Head and Shoulders in UNIUSD📚 LEARN MORE 💰 EARN MORE Inverse Head and Shoulders Definition: A head and shoulders pattern is also a trend reversal formation. It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder). A “Neckline” is drawn by connecting the highest points of the two Peaks. Neckline resistance does not need to be strictly horizontal. This illustrates that the downward trend is coming to an end. When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal. The pattern is confirmed once the price breaches the neckline resistance. In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY: we put an entry order above the neckline. TARGET : We can also calculate a target by measuring the lowest point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Forex trader? Now, It's your turn! Be sure to leave a comment let us know how you see this opportunity and forecast. Trade well, ❤️ ForecastCity English Support Team ❤️
Education
by ForecastCity_World
2
Inflation & Interest Rate Series / Dollar and Gold I have started this inflation and interest rate series, in our last video, we discussed "Inverted Yield". Today will be discussing the relationship between: . Inflation . Interest rate . Dollar and . Gold Today's Content: • Why with higher interest rates, it strengthens the USD • Is USD the strongest currency? If not, then who? • Strategy to counter inflation • Interest rate higher, but a lower USD? Dollar Index: . Measure the value of the dollar against a basket of six foreign currencies. . These are: the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona. . With the increase of money supply over the decades, it causes currencies dilution. When currencies weaken, inflation follows. COMEX Gold 0.1 = US$10 1.0 = US$100 10 points = US$1,000 Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
Editors' picks
ICEUS:DX1!Education
by konhow
7
📚Learn More💰Earn More - Inverse Head and Shoulders in NEARUSD📚 LEARN MORE 💰 EARN MORE Inverse Head and Shoulders Definition: A head and shoulders pattern is also a trend reversal formation. It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder). A “Neckline” is drawn by connecting the highest points of the two Peaks. Neckline resistance does not need to be strictly horizontal. This illustrates that the downward trend is coming to an end. When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal. The pattern is confirmed once the price breaches the neckline resistance. In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY : we put an entry order above the neckline. TARGET : We can also calculate a target by measuring the lowest point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Forex trader? Now, It's your turn! Be sure to leave a comment let us know how you see this opportunity and forecast. Trade well, ❤️ ForecastCity English Support Team ❤️
Education
by ForecastCity_World
8
USD/CHF -8/9/2022-• Triangle pattern explained + measurement method • On the weekly chart, while ago, a triangle formation can be seen • Breakout can be either way • In the above case, the breakout was to the upside, supported by strong fundamentals in favor of the dollar • Traders should wait for a successful breakout before placing any trade • Breakout was confirmed by several bars above the upper trend line resistance • Buy order is placed upon the breakout, and the measurement method is applied for profit taking • What is the measurement method? • It is the distance between the lowest point in the triangle and the first high, the widest distance in other words • In this case, the length is 700 pips, so we project this distance from the breakout point • We get the target around parity, which was reached accurately at a later stage
Education
by RamziAbouAbdallah-CMT
The concept of trend lines, support and resistance Today, I am going to explain the concept of trend lines, support and resistance. Above is the weekly chart of the EUR/USD, period between 2017 and 2022. The resistance or support level is where the price gets rejected at least twice. After that, traders can draw a line connecting those swing highs/lows, which later turn to be the resistance or support. This line can be horizontal or sloping, thus called trend line. A trend line connecting 2 lower highs or more is called descending and considered a resistance. A trend line connecting 2 higher lows or more is called ascending and considered support. Broken resistance becomes a support level and vice versa. Let's take the example chart above and explain the drawings for a better understanding: 1) In January 2017, EUR/USD bottomed at 1.0350 and has been trading above that level since then, until 2022. In the current year, the pair tested the mentioned price more than twice and bounced again. But eventually, sellers were able to break through this support, which later on in July, turned to be a resistance. Buyers tried to break through that level but failed to do so, and the price kept on going further down. 2) During the pandemic in March 2020, demand for safe assets surged, causing the Euro to trade as low as 1.0630 where buyers were met and made a quick rebound. In 2022, the Russia-Ukraine war has put a huge pressure on the EUR/USD, resulting in a strong bearish move. Sellers were able to break the 1.0630 level successfully, which later turned to a resistance level. 3) I highlighted the main 3 parallel trend lines/channels throughout the 2018-2022 period 1: A very clear lower highs/lower lows pattern indicating a bearish trend. 2: Once the 1.0630 support was met, buyers were able to create a higher highs/higher lows pattern indicating a bullish trend reversal. 3: However, in summer 2021, the pattern was broken and we started to notice trend exhaustion indicated by a failure to make higher highs and the market entered a bearish trend again inside a descending channel till present. I hope the drawings and explanations are clear. Will be happy to answer any question. Thank you
Education
by RamziAbouAbdallah-CMT
Learn What is U.S. Dollar Index (DXY) 💵💲 Hey traders, I share my analysis, signals and forecasts on Dollar Index occasionally. Quite often I receive questions from you asking me to explain what exactly that index means and why it is so important. Dollar Index (DXY) is a measure of the value of the United States Dollar against a weighted basket of major currencies. This basket consists of 6 following currencies: 🇪🇺Euro (EUR) - 57.6% share 🇯🇵Japanese yen (JPY) - 13.6% share 🇬🇧Pound sterling (GBP) - 11.9% share 🇨🇦Canadian dollar (CAD) - 9.1% share 🇸🇪Swedish krona (SEK) - 4.2% share 🇨🇭Swiss franc (CHF) - 3.6% share The selection of the following basket of currencies and their weight is determined by the significance of a trading partnership between the countries. The index value is calculated with the formula: USDX = 50.14348112 × EURUSD ^ -0.576 × USDJPY ^ 0.136 × GBPUSD ^ -0.119 × USDCAD ^ 0.091 × USDSEK ^ 0.042 × USDCHF ^ 0.036 The index was launched in 1973 and had an initial value of 100. When the U.S.D is gaining strength against the above-mentioned currencies, the index is growing, while its weakness against them leads to a decline of the index value. To conclude, the Dollar Index reflects a fair value of the Dollar and its dominance in global markets. Its analysis may help to make more accurate predictions of the future direction of the dollar related instruments. Do you analyze DXY? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
How To Make Your Trading Plan In 7 Steps !How To Make Your Trading Plan In 7 Steps ! ➡️ Choose The Correct Time Frame All traders know what time frames are, but few know that each time frame has a specific way of working. Time frames from 15 minutes to 60 minutes fall under the name of day trading, meaning that all deals will be closed on the same day, whether with profit or loss, and traders call it the name "Scalping" On the other hand, there is a time frame from 4 hours to the daily frame, which are considered long deals and traders call them “swing” Time frames higher than the daily are considered investment centers and are not suitable for small capitals —————————————————— ➡️ Risk Management Most traders make a fatal mistake, which is not choosing a risk ratio for each trade, and this exposes the entire account to a loss. The best traders in the world believe that the reasonable risk ratio is between 1% to 3% for each trade. —————————————————— ➡️ Conditions You Must Choose Between " Ranging " Or " Trending " —————————————————— ➡️ Markets In Stock Markets We Have 4 Market ,, - First One Is Option Option or binary options is a currency, commodities and stock market that simulates the same conditions as the real markets, but you can set a time for the transaction and bet on the direction within a minute or two and you can win up to 90% of the bet amount, but in the event of a loss, you lose the entire bet amount and some believe that The option market has a lot of suspicions and scams - Second Type Is Equity - Third Type Is Futures - Forth Type Is Forex - Fifth Market Is Crypto Currency —————————————————— ➡️ Type Of Your Entries - Pull Back - Break Out - Cross Over —————————————————— ➡️ How To Put Your Stop And Targets ? —————————————————— Print It And Don't Forget Any One From The 7 Steps To Be Successful Trader ❤️❤️
Education
by Fx_Vanguard
Most Popular Types Of Candles How to Read Candlestick charts? Candlestick charts were originated in Japan over 100 years before the West had developed the bar charts and point-and-figure charts. In the 1700s, a Japanese man known as Homma discovered that as there was a link between price and the supply and demand of rice, the markets also were strongly influenced by the emotions of traders. A daily candlestick charts shows the security’s open, high, low, and close price for the day. The candlestick’s wide or rectangle part is called the “real body” which shows the link between opening and closing prices. This real body shows the price range between the open and close of that day’s trading. When the real body is filled, black or red then it means that the close is lower than the open and is known as the bearish candle. It shows that the prices opened, the bears pushed the prices down and closed lower than the opening price. If the real body is empty, white or green then it means that the close was higher than the open known as the bullish candle. It shows that the prices opened, the bulls pushed the prices up and closed higher than the opening price. The thin vertical lines above and below the real body is knowns as the wicks or shadows which represents the high and low prices of the trading session. --------------------------------------- 1- Hammer Candle Hammer is a single candlestick pattern that is formed at the end of a downtrend and signals a bullish reversal. The real body of this candle is small and is located at the top with a lower shadow which should be more than twice the real body. This candlestick chart pattern has no or little upper shadow. The psychology behind this candle formation is that the prices opened, and sellers pushed down the prices. Suddenly the buyers came into the market and pushed the prices up and closed the trading session more than the opening price. This resulted in the formation of bullish pattern and signifies that buyers are back in the market and downtrend may end. Traders can enter a long position if next day a bullish candle is formed and can place a stop-loss at the low of Hammer. ----------------------------------------- 2- Hanging Man Hanging Man is a single candlestick pattern which is formed at the end of an uptrend and signals bearish reversal. The real body of this candle is small and is located at the top with a lower shadow which should be more than the twice of the real body. This candlestick pattern has no or little upper shadow. The psychology behind this candle formation is that the prices opened and seller pushed down the prices. Suddenly the buyers came into the market and pushed the prices up but were unsuccessful in doing so as the prices closed below the opening price. This resulted in the formation of bearish pattern and signifies that seller are back in the market and uptrend may end. Traders can enter a short position if next day a bearish candle is formed and can place a stop-loss at the high of Hanging Man. ----------------------------------------- 3- Three White Soldiers The Three White Soldiers is a multiple candlestick pattern that is formed after a downtrend indicating a bullish reversal. These candlestick charts are made of three long bullish bodies which do not have long shadows and are open within the real body of the previous candle in the pattern. ----------------------------------------- 4- Inverted Hammer An Inverted Hammer is formed at the end of the downtrend and gives a bullish reversal signal. In this candlestick, the real body is located at the end and there is a long upper shadow. It is the inverse of the Hammer Candlestick pattern. This pattern is formed when the opening and closing prices are near to each other and the upper shadow should be more than twice the real body. ---------------------------------------- 5- Piercing Pattern Piercing pattern is a multiple candlestick chart pattern formed after a downtrend indicating a bullish reversal. Two candles form it, the first candle being a bearish candle which indicates the continuation of the downtrend. The second candle is a bullish candle which opens the gap down but closes more than 50% of the real body of the previous candle, which shows that the bulls are back in the market and a bullish reversal is going to take place. Traders can enter a long position if the next day a bullish candle is formed and can place a stop-loss at the low of the second candle. ---------------------------------------- 6- White Marubozu The White Marubozu is a single candlestick pattern that is formed after a downtrend indicating a bullish reversal. This candlestick has a long bullish body with no upper or lower shadows which shows that the bulls are exerting buying pressure and the markets may turn bullish. At the formation of this candle, the sellers should be caution and close their shorting position. Don't Forget To Like And Follow To Next Part
OANDA:XAUUSDEducation
by Fx_Vanguard