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| USD INDEX
The U.S. dollar index has been trading within a major long-term ranging pattern, as shown on the weekly chart above. The index has been moving among a giant pennant-like formation, fluctuating among its support and resistance levels.
The latest peak in July was a retest to the top of the formation, however the index failed to follow through, retreating back and breaking below the latest swing low of the wave at 81.16 which was the initial trend reversal signal. Meanwhile, the index has settled back below the cluster of long term 6-month moving averages (high, low and close).
During the past weeks, we have seen a retest of the this broken low at 81.16 and the cluster of averages, which provided a potential bearish setup as the index may be in the process of resuming the bearish wave that started from the top of the pennant.
Accordingly, if a bearish move follows, that will complete forming the right shoulder for a possible Head and Shoulders pattern, as shown on chart. A continuation below the neckline of the projected pattern currently around 78.80 would be a major bearish signal, and clears the way towards the bottom of the pennant currently around 74.00 areas.
The suggested bearish scenario will remain valid so long as 82.85 level is intact.
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Friday, 28 December 2012
U.S. Dollar Index
Thursday, 20 December 2012
Trading Strategy till New Year Holidays: For Scalpers!
Most Pairs have entered into "RANGE/CONSOLIDATION". So plz try to SELL the Range High
and Buy the Range Low.
Good Luck!
and Buy the Range Low.
Good Luck!
Wednesday, 19 December 2012
Upcoming Holidays & Market
TREND FORECAST will now be updated by the 1st week Jan 2013. Market Volume is light and not recommended for Trend Traders. However, Scalpers can make money trading in the direction of the main trend.
We will use this time to post important Trade Setups on the larger Time Frames for Forex, OIL, GOLD, SP500.
Tuesday, 18 December 2012
Monday, 17 December 2012
Friday, 14 December 2012
Thursday, 13 December 2012
Over Heated Market
There will be no Trend Forecast for today as market seems to be overheated and needs to cool down before taking an entry.
Caution: Trade at your own risk.
Caution: Trade at your own risk.
Wednesday, 12 December 2012
Tuesday, 11 December 2012
UK & US Session Trend Forecast
NOTE: Due to upcoming holidays, volume has started to decrease and daily movement of pairs (ATR) is squeezing as well. Range Setups would be most effective in this kind of market.
Monday, 10 December 2012
Friday, 7 December 2012
Thursday, 6 December 2012
Wednesday, 5 December 2012
The Right Trade Size!
Here are the two aspects you’ll need to answer before determining appropriate trade size:
- Percent risk you’re willing to accept per trade –We recommend less than 2%
- Where do you want your stop in terms of pips
Percent risk you’re willing to accept
This will have nothing to do with the market and everything to do with your account balance. You determine your risk, not the market. Your money management system will tell you where to get out of every trade. We recommend you limit your risk per trade to less than 2% of your account equity. Noting this before you enter a trade is being proactive and will prevent you from increasing your exposure based on how good a set up looks to you. All good traders look to limit risk and most poor traders neglect this.
Many good traders will keep a trade journal that will have their current account equity updated and how much they should risk on any one trade. Our $10,000 account example with the 2% max trade risk tells us that before we look at the charts, we are only willing to lose $200 on a single trade. For most traders, this relieves stress by itself.
Converting that risk into Trade Size
Now that we know how much is at risk, we next decide the best trade size for us based on our pip based exit. Here is a simple formula to use to determine your trade size:
Proper Trade Size Formula:
Your three inputs will be your account balance, what percentage you want to risk, and the number of pips you are willing to allow the market to go against you before you exit the trade.
Account balanceX% risked / stop loss distance in pips = maximum value per pip
Using our example above and plugging into the formula, here are the three inputs.
Account balance = $10,000
Percent Risk = 2%
Stop loss distance = 100 pips
Plugging them into the formula:
$10,000 X 2% / 100 pips = $2 per pip (or 0.2 lot size) approx.
Tuesday, 4 December 2012
GOLD Update- Wave Analysis & Targets
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XAUUSD – Spot Gold trading range
The spot gold market has been trapped in a range between $1750.00 resistance and $1705.00 support for the last few weeks now. Price showed some rejection of $1705.00 support late last week and if you take a look at the 4 hour chart there were a couple of pin bars that formed showing rejection of that level last week. If price remains buoyant above $1705.00 early this week, we could see a move higher back towards the trading range resistance at $1750.00. Whereas a move back below $1705.00 would open the door up for larger losses.
The spot gold market has been trapped in a range between $1750.00 resistance and $1705.00 support for the last few weeks now. Price showed some rejection of $1705.00 support late last week and if you take a look at the 4 hour chart there were a couple of pin bars that formed showing rejection of that level last week. If price remains buoyant above $1705.00 early this week, we could see a move higher back towards the trading range resistance at $1750.00. Whereas a move back below $1705.00 would open the door up for larger losses.
Monday, 3 December 2012
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