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CADJPY since the memorable night on January 2/3 this year, when flash crash on pairs with Jen led to the setting of a 2-year minimum at 76.75, moves in an upward trend and last week set a maximum this year 82.235.
CADJPY Weekly – an attempt to break the trend line proved to have failed
Last week notations (chart above) formed a candle with a large upper wick indicating the rejection of an upward trend line drawn from 2016 and 2018 minimum.
CADJPY H4 – breaking the local trend line can deepen the declines
Analyzing the four-hour chart we will notice that the price is approaching the local trend line since the beginning of February this year and its overcoming may lead to further drops to the nearest demand level of 83.65. The level that if overcome may negate the bearish scenario is the mentioned rejected 3-year trend line last week.
The AUDJPY in the second half of last month bounced dynamically from key support at 78.70. This resulted in the establishment of a higher high, and moreover, for several weeks, the quotations remained above the average EMA 10/20, which indicates the advantage of the demand side.
On the other hand, after switching to a 4-hour chart, we see a strong upward movement to the level of 83.03 and a subsequent correction, which took the form of a channel/flag. The flag is most often considered as a continuation formation. With the above scenario, the continuation of the upward movement can be expected after breaking the upper limit of the flag’s formation. Then the high on 83.03 will also be unveiled again.The next goals for increases are concentrated in the area covering the tops of swing from the period March – July this year. This zone is in the range 83.92 – 84.52.
All Forex traders knows price action trading system is one of the best way to find great trades in Forex market. Do you really think it’s easy to master the art of price action trading system? The simple answer is yes. However, due to some common mistakes most of the new price action traders fails to make money. They simply don’t understand the fact trading is has nothing to do with 100% precision. You need to follow the basic rules of investment business and trade with proper money management. Taking unnecessary risks in the retail trading industry is nothing but ruining your career. If you start following the rules strictly, you can easily become a successful Aussie trader within a short period of time. Today, we are going to high light four major mistake that every new price action trades make.
Ignoring the market trend
The majority of the price action traders thinks to counter trade the market. To be precise they want to ride a new trend. There is saying in the Forex market, the trend is your friend. So if you want to save your investment, it’s imperative you start following the market trend. Instead of analyzing the candlestick in the lower time frame try to focus on the daily time frame. Never think you will assess the strength of the market trend based on technical data only. Focus on the fundamental factors since it is one of the easiest ways to assess the economic performance of a certain country. Once you have spotted the market trend properly it’s time to wait in the sideline for the most reliable candlestick pattern. Never execute any trade unless you have a precise confirmation about a trade. It’s better to wait rather than losing money on low-quality trades.
Not having defined goal
Being a price action trader, you might get carried away by the winning edge. People don’t really understand why they should have defined goal in Forex market. They simply trade CFDs and think to earn tons of money. This is nothing but overtrading the market. You need to have a specific goal or else it will be really hard for you to make money in the long run. Always remember trading is nothing but finding the great trades at low-risk exposure. If necessary learn from the experienced traders but never take unnecessary risk to earn huge amount of money.be smart and take a rational decision when it comes to trading profession.
Trading with emotions
Following your emotions is normal at the initial stage. If you always stick to your emotions, trading is not for you. You have to lock your emotions in an iron cage and trade the market with logic. Forget about the short-term gain and focus on long-term return. Some of you might find it really hard to control your emotions are losing a few trades in a row. In such case, it’s better for you to take a small break and start your trading with a fresh mentality. Never try to trade the market when you are frustrated.
Always have a backup plan
Those who are trading the market as their full-time profession must have a six-month financial backup. No one knows about the result of a certain trade. At times you might have to lose money for a few months and there is nothing wrong with it. So, in such a case, you need to have a backup plan to support your family. No matter which trading strategy you follow, you must face consecutive losing trades in your career. Unless you are prepared for such situations, the chances are very high you will take excessive risk to recover the loss. This will eventually jeopardize your career. Try to trade the market in a stress-free environment so that making decisions becomes easier.
Businesses may look like a money-making machines to the majority of people. Especially those people who have a day job. They only see the shell of a business only. The hardcore center of toughness is never visible to them. In a business, you will have to manage a lot of things than in a day job. A whole company and its employees will be depending on you. In their day jobs, people just do the things their bosses tell them to do. In a business, you will have to play the role of a boss and make orders to the employees. You will also have to monitor their work. If there are no employees, you will have to maintain quality performance like in the trading business. However, the trading business does not respond to traders who have money targets on their minds. In the following article, we are going to talk about more of that.
Think about qualitative trading performance
When the traders think about money making, their minds do nothing but think about profits. They forget about going sequentially for a trade. They try to make trades any time it seems suitable for making money. The concept of trading positions sizes does not come to mind. The risk management does not come to mind either. We can forget about stop-losses and take profits. All in all the traders does not approach the trades with the right intention. That kind of trading business does nothing but losses. After sometime when you will keep on managing you trading business like that, it will stay no more and you can lose hope for making any career in this profession.
Trade like businessman
All the successful Aussie traders have a strong mentality. They always trade the market like a businessman. Unlike the new traders, they don’t trade the market with emotions. CFD trading is nothing but the most sophisticated business in the world. If you fail to limit your risk exposure, you are going to lose money like the 90% of the traders. Learn about this profession and craft a simple trading strategy to make a consistent profit. Analyze your mistakes and come up with a great solution. Never stop learning new things since knowledge is the most powerful asset for a trader.
Your edge is the most important power
If you think about joining the trading business, your mind will have to know about the right thing for this business. That is called the trading edge (strategy). Form the start to the end of any trades you will follow your own trading edge. And that will be made by yourself. Because when we prepare something on our own, it gets the most welcome in our working process. With position sizes, money management and trading methods you will have to make the balanced trading plan for all the trades from your account. The more organized trading approach it is, the more you can handle the trading process very well. For all the traders in this world, this is really important to maintain quality with a good and overall trading strategy.
Money management is a must for safety
Like any other business, traders will also have to stay alert for the money losses. To do that, all of us will have to stay secure in our trading risk management. In fact, a whole money management plan should be made for the trading business. It will start from the whole trading capital and end with the risk management. According to the trading performance, traders will define the risks per trade and for all the trades. This will help with decent trading positions sizes and with the stop-losses and take-profits too. Then there will be no problem making profits with a small investment in the trading account.
EURUSD – After setting a maximum of 1.2555 in January this year, the pair moved until mid-April in a wide 300p consolidation and at the end of April overcome its lower limit and moved dynamically to the south. After reaching the level of 1.1500, it again started to move in consolidation, from which in August made a breakout ended with the establishment of a minimum of this year at 1.1295. On the last day of October, the pair again visited this level by creating double bottom formations (Chart D1). Such formations are usually a signal of change in the trend.
EURUSD Daily – a double bottom formation
When analyzing the H4 chart of the EURUSD pair, we will notice that since the end of September this year quotations are located quite accurately in a descending wedge, from which yesterday (07.11) there was a dynamic breakout thru the top. Currently, the price is moving towards the defeated resistance of the wedge, which is now a support.
It seems very likely that increases will be continued, and the level negating the upward scenario, i.e. in our case SL level, will be the demand zone starting at 1.1380. The goal for increases can be a round level of 1.1500. Macro data – today’s (18:00 GMT) FED meeting on which US interest rate decisions will be taken should also be taken into account. It is expected that there will be no interest rate hike, the message issued after the announcement of the decision may have more impact on the movement of this pair.
AUDUSD has been in a downward trend since the beginning of the year. Within 10 months the pair dropped 1,100p, setting last Friday at the level of 0.7020 minimum of the year. Friday’s candle covered completely the Thursday candle, creating the formation of the Engulfing Bar called also Outside Bar The direction in which the price leaves the formation may be the key to the fate of this pair.
AUDUSD Daily – divergence and bullish Engulfing (OBar)
Looking at the H4 chart, we can determine at the level of 0.7055 strong local support (green zone).
It seems that increases are very likely, which results from the confluence of events:
– Outside Bar is created by a bullish candle
– the OBar candle is at the same time a Pin Bar
– there is a divergence (+) on D1
I would look for an opportunity to open a buy order as close as possible to the green support zone if the price reaches it. The second option is the confirmed break out from the OBar formation. In any case, SL should be below the lower limit of the formation, which is also the minimum of this year 0.7020.
AUDUSD H4 – green zone can be a good level to join the growth
GBPCHF – The pair from mid-April this year moved in a bearish channel, which resistance and support were fairly well respected. At the end of September, the resistance of the channel was broken and the price moved quite dynamically north. The last session of the last week ended with a bearish candle covering the preceding one creating Outside Bar formations (bearish engulfing), which usually results in a correction during the upward movement.
On the enlarged chart day after day, two formations Price Action were created – Inside Bar created on Thursday and above mentioned Outside Bar.
The Friday candle slightly broke out of the IB, but the quotes returned to the interior of the formation, signalling that it could be a falsey.
Taking into account this combination of formations, a lot shows that it is a preview of possible falls. It is worth looking at the development of the situation on this pair and in the case of a successful IB test from below and the appearance of a maximum on the MACD try to go short where the upper limit IB can serve as a level for SL.
USDJPY H4 – the trend line when broken can initiate declines
USDJPY – Last week I wrote about this pair in the context of the expected downward correction. The predictions become a fact, and since then the quotes have already dropped by 80p. The declines reached the line of the short-term upward trend, lasting since the beginning of September, which was a natural support for this pair.
Currently, on the D1 chart, the maximum on the MACD appeared and the indicator started to decrease, which may indicate that the correction will last for some time, and the quotations in the case of effectively overcoming this trend line may fall to the next support at 112.75-85. However, always remember that since March this year it is in a long-term strong upward trend and if the support is defended, the price may return to increases.
You will find detailed description of strategy PA+MACD on this site :
USDJPY Daily – the pair is close to a strong supply area
USDJPY – moves in an upward trend since the end of March this year when the pair set the minimum at 104.55. Yesterday’s session ended at 114.55 which was the record of this year, giving an increase of 1000p in 6 months. On the Daily chart, we see that the price reached the important supply zone 114.55-114.75, at which the price has already rebounded several times.
When we look at the H4 chart, we can see favourable conditions for a bearish divergence, if the closing of the current H4 candle will be accompanied by the creation of the MACD maximum. It is worth observing the development of events on this pair, especially when the next H4 candles will close. If this maximum arises, we can expect a downward correction, for which the nearest level of support will be the local growth trend line currently in the area of 113.50.
Before making the decision to open the order, you should keep in mind tomorrow’s payrolls, which can completely change the situation on the chart negating our, only a technical, approach to this pair. From the fundamental perspective, US bonds go up and there is a significant difference in their favour compared to Japanese papers, which prompts the market to convert JPY into USD.
Trading business is one of the most popular professions on this planet. In some market, you have to trade with currencies around the world. Or some places, you get a chance to play with a precious metal like gold. Among all of the trading marketplace, Forex is the most popular. Because it has the most amount of transection’s throne. Almost all of you might know that because who does not like knowing about money. But, there are some good things that might interest you to join this marketplace. We are going to highlight some of the key facts about the trading industry. So all jokes aside, let’s get on with this article and increase our brain with some knowledge about Forex.
The price change is highly predictable
Almost all the trading marketplace have the same system to work with. You have to look at the situation of your preferred market and trade when you think it is the right time. But, comparing to other marketplaces, this one is far more predictable for any retail traders. It is easier to find out how a particular price chart will behave in the future. And for help, there are more tools for your help too. Like the pickup or resistance levels. This technique helps to understand when you should trade or not. Moreover, there is another tool to help you with understanding the possible price trends in any situation. Like these, you will be able to make many skeptical decisions in this marketplace.
Impact of economic news
Economics news plays a great role in the price movement of currency pairs. Those who are involved in the CFD trading industry for a long period of time the proper way to assess the fundamental data. Many people in Australia often take the professional trading course as it allows them to make more money by trading the high impact news. For instance, during the event of NFP news, the market becomes extremely volatile and the majority of the new traders loses a significant portion of their investment. But this is not the case for the professional traders. The professional traders are one step ahead and they know the proper way to manage their funds prior to such news release. So never trade the market based on technical data only. Learn to trade with fundamental data as it will improve your.
Equal opportunity while rising and falling
In this marketplace, you get the opportunity of buying or selling trades. Whatever the condition may be, this system will never change in the process. You can use your strategies and trading plan to find out when to open a trade and how to open one. Going both ways gives the diversity in decision making for any traders. It may seem silly for a new person in the trading business, but you can buy or sell trades while opening one. And either way, you will get the same chance of making profits. As the market is always changing upwards or downwards, you will have a great opportunity for making profits while opening a trade. All you have to do is be an effective thinker about your trades.
No constraints on the trading number
This marketplace has very fewer constraints for any retail traders, especially in the number of trades. Traders can trade as many time they want. Even there are categories for those who trade too frequently. They are called scalpers. Those type or trades multiple times a day. Then there is a day trader. They keep their trades open for about a day. And the other trading method (swing trading and position trading) are with bigger timeframe like a week and few months accordingly. If you feel safe with small-time trades like scalping, you can execute as many trades as you want. There is no limit for any trader in this marketplace. So, you can continue in this marketplace without any worry.