Forex and Trading News

May 19, 2012

In this video, Steve Nison talks about how to identify and respond to breakouts with candlesticks. In this video he talks about Momentum trading — going in the direction of the break out. We know that the candlesticks signals are great for reversals telling us the trend and potentially when it is going to turn. We could use the idea of candlesticks signals could be used as support or resistance, with that in mind he explains how to use candlesticks for momentum trading.

May 19, 2012

Dale Pinkert explains about Stop hunting with examples. He talks about finding where the buy and sell stops are located and instead of having our stops where they are likely to be hunted, he talks about capitalizing the event by placing our longs and shorts in the direction of stop hunting.

May 18, 2012

Jennifer Cordingley brings you the Midday Snapshot in this video, which reviews and analyzes the trading activity in relation to the actual market movement. Gradual downtrend was followed by a rise in the traders favourite pair — EUR/USD, which showed a price movement of 0.06%, measuring a volatility of 76 pips, trader’s sentiment is neutral: -11% short and traded volume is average: 14%. GBP/USD has a similar pattern measuring a volatility of 90 pips. Trading has been slower than usual with a price movement of 0.16%, trader’s sentiment is bearish: -24% short and the traded volume is low: -27%. USD/JPY dropped and the following uptrend cancelled the loss measuring a volatility of 28 pips, price movement of -0.08%, trader’s sentiment is neutral: 12% long and traded volume is extremely low: -53%. GBP/JPY trend shifted when the low of 124.64 was reached, measuring a volatility of 95 pips, price movement is 0.08%, trader’s sentiment is strongly bearish: -38% short and traded volume is extremely low: -60% low. EUR/JPY trend also shifted later in the session and the rate was back close to the opening level at midday, measuring a volatility of 81 pips, price movement is -0.02%, trader’s sentiment is bearish: -15% short and traded volume is extremely low: -55%.

May 18, 2012

Wayne McDonell, reviews some of the techniques he uses to trade and analyze the FX markets. There are thousands of indicators you can use with currency trading and which one should you be using. In this video he talks about general market forces and the short term price action and explains about the usage of moving averages to align with short term price action with medium term market forces, macd indicator to identify overbought and oversold, stochastics indicator and fibonacci retracement levels to spot support and resistance areas. He talks about looking at various timeframes to see the market from 1 min, 5 min upto daily chart and to find the market direction irrespective of the timeframe.

May 18, 2012

Gary Ender shows you how to use candlesticks with pivot points for better trading results. In this video he explains combining a method of candlestick patterns with pivot points using a 15 min chart. Pivot points are great tools for intraday trading. This method of combining candlesticks with pivot will give you a great indication of when you should place your trades.

May 18, 2012

Natalie Macdonald speaks about the support and resistance level report in this video. The support levels for EUR/USD pair are S1: 1.2660, S2: 1.2620 and S3: 1.2570. The resistance levels are R1: 1.2700, R2: 1.2730 and R3: 1.2780. EUR/USD pair is a trading in the range limited by R1 and S1. R2 leads in resistance with 7 confirmations. R1 and R3 have found 3 and 2 matches respectively. S1 sees 4 confirmations including price channel indicator lower line. S2 is a 12 months low with a total of 3 matches. S3 has a single confirmation. The support levels for GBP/USD pair are S1: 1.5730, S2: 1.5680 and S3: 1.5600. The resistance levels are R1: 1.5780, R2: 1.5820 and R3: 1.5970. GBP/USD pair has its closest levels between R1 and S1. R2 has 100 day Moving Average among its 4 matches. R3 has 3 confirmations including the 50 day Moving Average. R1 is backed by Price channel indicator lower line and one other study. S1, S2 and S3 have found a single match each and S3 is a 3 month low. The support levels for USD/JPY pair are S1: 79.40, S2: 79.90 and S3: 80.40. The resistance levels are R1: 79.10, R2: 78.70 and R3: 78.40. USD/JPY pair is currently between R1 and S1 levels. R2 is well confirmed with 18 matches including 100 day Moving Average and a phsycological level. R3 has 20 day Moving Average among its 10 confirmations R1 has found a single match. S1 is backed up by the 150 day Moving Average, price channel indicator lower line, Bollinger lower bands and 2 other models. S2 and S3 have single confirmation each. The support levels for USD/CHF pair are S1: 0.9460, S2: 0.9430 and S3: 0.9400. The resistance levels are R1: 0.9490, R2: 0.9550 and R3: 0.9590. USD/CHF pair is trading above S1 and below R1 levels. R1 is near the phsycological level, price channel indicator upper line and 4 other alternative studies. R3 is a 12 month high with total of 3 confirmations and R2 has found a single match. S2 leads in support with 6 coinfirmations, S1 has Bollinger upper band among its 5 matches and S3 sees 2 confirmations.

May 17, 2012

Natalie MacDonald brings you the Midday Snapshot in this video, which reviews and analyzes the trading activity in relation to the actual market movement. EUR/USD pair took a sharp slide all the way to the low of 1.2666 measuring a volatility of 84 pips, with price movement sharply down: -0.43%, trader’s sentiment is neutral—0% and traded volume is average: -18% short of the monthly average. Sharp downtrend makes profits likely for traders with short positions. Its bearish for the GBP/USD pair as well measuring a volatility of 108 pips, and the downtrend has resulted in a loss of 0.49% price movement, trader’s sentiment is neutral: -6% short and traded volume is average: 9%. Plenty of profit opportunities for bears, but losses are more likely for the bulls. USD/JPY took a slide but bounced back to cancel the loss. Trading has been passive measuring a volatility of 22 pips. Price movement is sharply down: -0.16%, trader’s sentiment is bearis: -34% short and the traded volume is extremely low: -57% low. GBP/JPY has been moving sharply lower from the early high of 128.00 measuring a volatility of 108 pips with price movement sharply down: -0.65%, trader’s sentiment is neutral: 3% long, and traded volume is extremely low: -59%. EUR/JPY has been trading passively measuring a volatility of 81 pips, with price movement sharply down: -0.59%, trader’s sentiment is neutral: 4% long and traded volume is extremely low: -43%. Profits are more likely for the bears as the rate has been moving sharply lower.

May 17, 2012

This is part 5 of the series. This video shows you tips and tricks (part 2) on how to  use the keyboard shortcuts like F12 and F11, functions like autoscroll feature of the chart and controls to quickly use the Metatrader 4 platform to your advantage.

May 17, 2012

Probably one of the most frequently used indicators in technical analysis is the simple moving average. The concept of a moving average shows that the average value of a pair’s closing price over a certain amount of time. As seen in the daily chart, the 100 Moving Average shows the average price of the last 100 days. This is significant because it can be used to spot momentum, trends and potential support and resistance. There are different ways to use the moving average. As seen in the daily chart a second moving average with value 25 is used to identify quicker momentum shifts. There are different moving averages that you can use. These are the simple moving averages. The other commonly used moving average is the exponential average.

May 17, 2012

This is a video from Martin Smith with the daily outlook from UFXMarkets. Wall street declines all around with the NASDAQ falling by 1.00%, DOW by 0.43% and S&P by 0.67%. The US Dollar however gained against the most of the majors as talks to form a Governement in Greece failed. In commodities, Gold fell by 0.18% closing at $1,540 an ounce. Crude also fell by 0.54% to close at $92.77 a barell, the lowest in 5 months. Trading below resistance of 1.2780 is keeping the momentum of EUR/USD negative with the pair positively testing the 1.2625 again. The RSI points to trend remaining bearish. Overall the pair traded with the low of 1.2680 and high of 1.2758. GBP/USD pair is maintaining resistance at 1.6060 pointing to bearish trend eventhough it might test the 1.5876 again. If the pair breaks down below this it may even reach 1.58 level. The AUD/USD pair will also continue its bearish trend if it maintains resistance at 0.9980 level. Breaking this level to cause it to test the support level at 0.9865.