You’ve probably heard this phrase a lot of times and you haven’t manage to understand it. Also, even though you manage to understand, you don’t really find a way to apply it, so your actions will evolve for the better. Today we’ll cover this topic related to market psychology and mindset of trading and hopefully, you will be able to get what this is all about. We must say from the start that thinking outside of the box is a skill that can be practiced with time, so don’t worry if you are not able to master it right now. Crowd behavior and its bad consequences The Forex market is formed of a large number of people – a crowd and the way it evolves over is … [Read More...]

The trading strategy a forex trader chooses can be a defining tool for the future positive performance. This material had been designed for beginning forex traders that are searching for an effective trading strategy. What we need to mention from the start is that this strategy, like any other one, should be tested first. Forex trading demo account is a must, especially if you are at the beginning and you need to develop those skills required for you to generate consistent returns. So, without further a due, let’s jump into the actual strategy that we want to talk about. False breakout trading strategy False breakouts happen many times in the forex markets, simply because support and resistance levels are not like a line in the sand. They … [Read More...]

The Canadian Dollar has been trading under pressure as tariffs could weigh on the currency. The Bank of Canada delivered the widely expected lack of change, leaving the setting for the overnight rate at 1.25%. While higher rates over time remain implied by their economic outlook, they repeated that they will be cautious in considering future policy adjustments. Their views on recent developments were largely balanced, but with a notable mention of the growing uncertainty to Canada’s outlook posed by trade policy. The markets projection is for two more rate increases this year, in July and October, leaving a 1.75% setting by year-end. The crucial final paragraph of the announcement was little changed relative to January. The repeat of “further rate hikes likely but … [Read More...]

For those of you that heard about Jesse Livermore, you will find a little weird the analogy with forex trading. However, his methodology was focused on the technical aspects of price and that is why you may find some useful information which could be applied to trading. If you really want to learn more about him, we recommend the book “How to trade in stocks”. It is very short to read, but it really contains a lot of interesting and valuable points. Source:https://kingworldnews.com Briefings about Jesse Livermore He is regarded by many as one of the greatest speculators of all times. He made and lost fortunes at the beginning of the twentieth century. During the great crash of 1929, he made around 100 million US dollars, … [Read More...]

We won’t talk about any strategy or economic subject this time. Instead, we want to focus on something that is more like a psychological skill professional and successful traders manage to develop over time. It is in their mindset to have this approach and we’ll talk about it in a few seconds. What we are going to discuss won’t make you a millionaire in the next few months (sorry, if you were hoping that), but it will definitely help you be more prosperous and be more abundant. How ordinary traders approach forex trading If you have been trading for at least a few months, you are now able to spot some patterns in your behavior, which repeat themselves over and over again. The main thing that characterizes … [Read More...]

EURUSD chart analysis: The candlestick chart of EURUSD shows an outside range day Wednesday, suggesting a move to the upside after the recent weakness of the EURUSD price. The RSI also rose, as did volume, adding conviction to the signal. EURUSD chart bullish after outside range day The EURUSD chart is looking bullish after an outside range day Wednesday, when the high was higher than Tuesday, the low was lower and the close was higher. EURUSD Price Chart, Daily Timeframe (October 5 – November 29, 2018) Chart by IG The EURUSD price has been falling since it hit a high of 1.1816 on September 24 so the chart pattern can be seen as a likely predictor of a trend change higher rather than as a continuation signal. Moreover, as the chart … [Read More...]

73% of Traders are Net-long Bitcoin: Retail trader data shows 73.6% of traders are net-long with the ratio of traders long to short at 2.78 to 1. The number of traders net-long is 4.4% lower than yesterday and 3.5% higher from last week, while the number of traders net-short is 4.7% higher than yesterday and 7.2% higher from last week. Be sure to check out our Bitcoin Trading Guide if you’re new to cryptocurrencies! Bitcoin Sentiment Suggest Prices May Rise We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current… [Read More...]

NZD/USD Technical Strategy: 0.6785 New Zealand Dollar bounce cut short at familiar resistance level RSI divergence suggests that a double top may be in in the works Short position remains in play absent clear bullish invalidation See our free trading guide to help build confidence in your NZD/USD trading strategy! The New Zealand Dollar has returned to challenge resistance in the 0.6851-84 area after a foray to the downside was cut short below the 0.68 figure. A nominally higher high has been set but confirmation of a break on a daily closing basis is conspicuously absent (at least for now) and negative RSI divergence warns of ebbing upside momentum. A reversal downward from here sees initial trend line support at 0.6795, with a break below making a compelling argument … [Read More...]

USD/BRL Technical Strategy: PENDING Short USD/BRL may be forming a Head and Shoulders topping pattern Brazilian politics are likely the biggest factor leading BRL charge Decline may accelerate after daily close below neckline support See our free guide to learn how to use economic news in your trading strategy! The Brazilian Real has been losing major ground against the US Dollar since the start of the year. However, a convincing Head and Shoulders pattern – a setup likely inspired by Brazilian politics – appears to have emerged and may indicate a bearish reversal for the pair. The recent tumultuous election that saw the firebrand Social Liberal Party Leader Jair Bolsonaro rise to power boosted the local currency. This in large part has to do with … [Read More...]

ASX 200 Technical Analysis Talking Points: The ASX 200 remains in retreat However, this month’s significant lows seem to be holding Their fate could be an important directional clue Get live, interactive coverage of all major Australian economic data at the DailyFX Webinars The ASX 200’s retreat from the key 6000 level has stalled at an interesting point whose fate could be crucial for near-term direction. Having topped that psychologically important point back in May of this year, the Sydney stock benchmark went on to add another 400 points or so, taking it up in August to peaks not seen for more than ten years. However it has since retreated back under 6,000 and then shed yet another 400 points, giving us about as much room between current levels and 6000 as there… [Read More...]

Gold price reversal testing October trendline resistance- constructive above 1205 Check out our 3Q projections in our Free DailyFX Gold Trading Forecasts Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT Gold has rallied more than 2.7% off the monthly lows with price now testing resistance at the October trendline. These are the updated targets and invalidation levels that matter on the XAU/USD charts. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more. New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide Gold Daily Price Chart (XAU/USD) Technical Outlook: In our last Gold Technical Outlook our ‘bottom line’ stated that we were, “looking for evidence / constructive price action to suggest this week’s… [Read More...]