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In this session James will walk you through two of the most effective harmonic patterns: the 1 – 2 – 1 and the 5 – 0 pattern. These are advanced harmonic patterns that utilise a combination of Fibonacci ratios, symmetry and market structure to highlight patterns which, can offer powerful entry to the market points to help you enter into trends effectively and capture important reversals.

Why should you attend?

  • Learn about the effective implementation of advanced harmonic patterns.
  • Understand the importance of highlighting patterns and entry points to supplement your trading.
  • Find out how to identify where market reversals may be occurring.
  • And more!

Don’t miss the chance to begin using harmonic patterns effectively. Enhance your technical analysis trading skills with Orbex.

Attendance for this webinar is free, but registration is required.

The post Harmonic Patterns – The 1-2-1 and 5-0 Patterns appeared first on Orbex Forex Trading Blog.

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Trading is a profession that demands extreme control over the mind. After all, precious money is involved, which could be lost in the blink of an eye. As much as trading depends on strategies, efficient and faster platforms and risk management; trading psychology is also an important aspect here.

Forex investors drive market activity; hence trading psychology also affects and is affected by the market. Every day, trader perceptions change, based on developments all around the world. Market sentiment is driven by such trader perceptions and emotions.

Common Emotions that Affect Trading Decisions

It is not that emotions are always harmful, but they should not get in the way of logical reasoning, or negatively impact one’s analytical skills. Markets see a range of emotions every day, such as:

  • Fear: Bad news or repeated losses can instill fear in even the most experienced trader, which is normal. Traders who are new to the market also experience fear due to their lack of experience. Some traders place stop loss orders too close to the opening price, as a result of which one sells out their position too early. Fear could also keep traders in a position for longer than required. Although it sounds ridiculous, some traders have fears about making money too. Either they become wary about expanding out of their comfort zone or fear that their money could be taken away by taxes.

  • Greed: Money and greed often go hand in hand. That is basic human nature. Investors often hang on to winning positions for a long time, which gets them blown out of a position. Greed also results in overtrading, sometimes beyond the maximum risk limits and time frames.

  • Euphoria: A series of successful trades is good, but what happens when it leads to over confidence? A feeling that could cause a trader to believe that they can’t lose or that there are no errors in the methods they follow can be dangerous.

  • Revenge: A series of huge losses can lead to anger. Overtrading comes next, to wreak vengeance. The market is a culmination of so many factors that there are no guarantees here. Such an emotion is self-sabotage.

The ability to understand the markets and identify patterns and trends is important for traders, but so is the ability to control these emotions.

Ability to Follow a Proven Method

Consistently profitable traders find an edge and repeatedly exploit it. They do not act randomly but follow a fixed path that has proven successful in the past. There is no place for impulsive decisions in the market, if you want to survive. If one strategy is proving to be a waste of time, you must design another strategy, taking all factors into account, which brings us to the final point.

Awareness is the Key

We cannot stress enough the importance of getting the facts straight. Assessing the global economy and its stability, keeping track of central banks and press releases, looking out for reports of large companies making deals that could create a breakout trend, focusing on a currency pair that is consistently performing well and so on. These are some of the factors you should be aware of, and those who do, possess the attributes of a good trader.

The post Trading Psychology Basics: What You Need to Know appeared first on Orbex Forex Trading Blog.

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Dow managed to head for advance wave from support zone 23500-600 where managed to print 24765 high yesterday

As we see over the chart, market may head for trading zone inside the triangle where as long as market continue holding trades below 24950 another drop wave toward 23500-600 zone will be expected

Above 24950 more advance will be expected with resistance levels at 25380 and 25530

  Support Resistance
Level 1 24250 24900-50
Level 2 23850 25380
Level 3 23500-600 25530

The post Dow Jones 2018-02-13 appeared first on Orbex Forex Trading Blog.

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As we advised last week

Intraday Levels showing resistance level at 1332 where as long as market holding below more drop will be expected toward 1294-96 zone

From support zone 1294-96 will expect another advance wave toward 1330-35 and 1350 zone

Above 1335 more advance toward 1350-55 will be expected

Below 1292 more drop toward 1261 will be expected

  Support Resistance
Level 1 1317 1332-35
Level 2 1307 1350-55
Level 3 1294 1370-75

The post Gold 2018-02-13 appeared first on Orbex Forex Trading Blog.

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As we see over our previous chart and as we advised yesterday

Market back to underdrop pressure as market sustain trades below resistance 61.25

Market managed to print high 60.80 yesterday before market back to drop movement 

As we explained before a trading zone may occur between support 57.25 and resistance 61.25

Below 57.25 more drop toward 54.90 may hit the market

While above 61.25 more advance toward 64.00 zone may be expected

  Support Resistance
Level 1 58.00 61.25
Level 2 57.25 62.10
Level 3 55.80 63.60

The post Oil (F) 2018-02-13 appeared first on Orbex Forex Trading Blog.

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USDJPY managed to fell below 108.00 where market closing from testing support 107.35 zone as we advsed before

From this zone 107.30 market may head for rebound correction toward 109.80 zone before the downtrend pressure back again as we see over the chart

Below 107.30 market may enter new downtrend wave as we explained before where 105.80 and 104.50 may become a possible targets 

  Support Resistance
Level 1 107.30 108.00
Level 2 105.80 108.80
Level 3 104.50 109.80

The post USDJPY 2018-02-13 appeared first on Orbex Forex Trading Blog.

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As we see over our previus chart and as we advised yesterday

GBPUSD managed to break above 1.3885 which may stretch the rebound correction toward 1.4040-60 zone

Market may head for trading zone between 1.3835 and 1.4065

Intraday Levels showing first support at 1.3875 where as long as market holding above more advance toward 1.4040-60 zone will be expected

Below 1.3765 market may head for farther drop toward 1.3620-60 zone

  Support Resistance
Level 1 1.3875 1.3985
Level 2 1.3835 1.4065
Level 3 1.3765 1.4150

The post GBPUSD 2018-02-13 appeared first on Orbex Forex Trading Blog.

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Euro managed to back to advance wave as market managed to hold tradse above support 1.2165-1.2200 as we advised before

Intraday Levels showing resistance at 1.2340-50 where as long as market holding below the chance for another drop to re-tets 1.2165-1.2200 support zone is available

Above 1.2350 with daily close above it will give the wave for another advance toward 1.2490 zone as we see over the chart

  Support Resistance
Level 1 1.2250-60 1.2340-50
Level 2 1.2165-1.2200 1.2435
Level 3 1.2070-80 1.2490

The post EURUSD 2018-02-13 appeared first on Orbex Forex Trading Blog.

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The oil market remains under pressure this week following the latest report, where OPEC raises oil supply forecast stating it expects supply to surge over 2018. While the group acknowledges that oil demand is set to rise over the year, it expected rising US output to cause a disproportionate rise in oil supply.

The latest OPEC report showed that production among the group was little changed over January as the group continues to keep a limit on output, as it struggles to counter the level of over supply in the market. Despite the groups efforts, Iraq, which is one of the main members, raised its output over January.

As OPEC raises oil supply forecast, production among the 14 member group is predicted to grow at around 1.4 million barrels per day, an increase of 250k barrels per day from the estimate given in the prior monthly report. Referring to producers outside of OPEC, the group expects this output to rise to 59.3 million barrels per year, up by 320k barrels from its last forecast.

US Oil Production Accounts For Over 50% of Supply

In terms of the breakdown of these forecast revisions, the US now accounts for over half of the supply figures, as OPEC raises oil supply forecast for 2018 by 150k barrels per day. Indeed, the latest government issued data reveals that US oil production topped more than 10 million barrels per day in November 2017, making it a bigger producer than Saudi Arabia, the top OPEC producer.

The OPEC report notes that “According to the most recent assessment, the steady oil price recovery since summer 2017 and renewed interest in growth opportunities has led to oil majors catching up in terms of exploration activity this year, both in the shale industry and offshore deep water”.

In terms of demand, OPEC noted that it now forecasts global demand to rise by around 1.6 million barrels per day, up over 60k barrels a day from the last forecast, putting total global oil consumption just shy of 100 million barrels per day in 2018 at 98.6 million barrels a day.

The reasons behind OPEC’s upward revisions include consistent growth in global economic activity, increase demand for transportation fuels and a booming petrochemical industry which creates chemicals from the by-products of oil and gas.

The release of this OPEC report comes at an interesting time for the Oil market which has enjoyed a strong rally over much of the last year but has seen a sharp and sudden drop over the last few weeks.

Goldman Sachs Bearish on Oil

Investment bank Goldman Sachs believes that the recent high prices are unsustainable due to a number of factors, including the need for US producers to maintain discipline. Goldman Sachs believes that the failure of US producers to maintain discipline will deter investors from fully engaging in the sector, leading them to park capital elsewhere in other commodities.

Technical Perspective

With price having recently turned lower again, Oil is now back below the 2015 high around 62.42. While below this level, focus remains on further downside, with a test of the broken 2016 high around 55.42 the key area to watch. If this level can hold, we are likely to see another push higher, bringing the longer term resistance around 74.82 into focus.

The post Oil Under Pressure As OPEC Raises Oil Supply Forecast for 2018 appeared first on Orbex Forex Trading Blog.

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As we previously explored the differences between trading stocks and forex, let’s now look into the difference between Stocks and Stock CFDs. Many MT4 forex brokers offer trading in stocks. In some cases these are also marketed as stock trading. However, on closer observation, the stocks that you see on your trading platform are actually quite different from the stocks that you would trade at an exchange.

Contracts for difference or CFD for short, is a derivative product. The contract for difference allows traders and speculators to make use of the instrument in order to speculate on the price movement of the underlying instrument or security.

There are many different CFDs, ranging from stocks to stock indexes, bonds and many precious metals and commodities. The pricing of these CFDs are derived from the underlying cash market instruments.

For example, if you were to trade the stock CFD for Apple, you are trading the derivative instrument of the stock (Apple) whose price is derived from the actual price of Apple stocks traded at an exchange.

Main differences between stock CFD’s and stocks
  1. You do not own the actual shares when you trade CFDs
  2. With stock CFDs you can be long or short on the instrument
  3. Stock CFDs pricing is often marked up and also attracts overnight swap rates
  4. Stock CFDs entitles you to a credit or debit of the dividends (depending on your position)
  5. Stock CFDs are widely used as a hedging tool

Trading stock CFDs offers quite a few benefits, especially for those who do not have access to trading the stick directly or have limited capital. Stock CFDs or CFDs in general are leverage products. This is one of the main reasons why traders often prefer to trade stock CFDs for lack of other alternatives.

For example, if the share price for a stock is trading at $100, and you buy 10 shares, you would need to put up $10,000 in capital to purchase the stock. Whereas, if you were to buy the same stock as a contract for difference you would have to put up just $200 at 1:50 leverage.

This makes is very easy for the average speculator to pick up the stock CFDs rather than the stock itself. There is not much difference in the pricing between the stock CFD and the actual stock price itself. However, you can expect a mark up on the prices. A CFD is usually marked up higher by a few ticks or cents and the spread (the difference between the bid and ask price) which is also comparatively higher than the actual stock.

When you trade stock CFDs you do not own the actual shares of the stocks that you are trading. This is one big difference between the stock CFD and the actual stock itself. However, if the stock pays dividends, you do get paid these dividends as well.

Another factor that makes stock CFDs different from stocks is the fact that you can be long or short on the CFD. This is not easily possible when you trade stocks. Short selling stocks requires a bit of nack and is also considered unethical in some aspects. You can of course sell your shares you if actually own them, but short selling in the stocks is difficult compared to going short on the stock CFD’s.

In some cases, investors who have a long position in a stock can look to the CFD markets in order to hedge their long positions in the cash markets.

When trading stock CFD’s traders should also note that an overnight rate is applied to the position. This can depend on the stock that you are holding and the direction that you are in. In most cases, long positions in stock CFD’s attracts negative overnight or vice-versa. This is also referred to as a holding rate.

In conclusion, stock CFD’s have their own pros and cons. At the end of the day, it is up to the trader to know why they want to trade the stock CFD’s and whether it is the better solution compared to other ways of trading the underlying instrument.

The post Is stock CFD trading same as trading stocks? appeared first on Orbex Forex Trading Blog.

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