Welcome to this two-part series on Harmonics! In this first instalment, we'll delve into the foundational concept of the Measured Move using the ABCD pattern. Understanding this essential structure lays the groundwork for precise trading decisions based on harmonic principles.
Introducing the ABCD Pattern
Price action in any market and on all timeframes tends...
BoJ's Persistent Ultra-Loose Policy
As anticipated, the Bank of Japan upheld its loose monetary policy, waiting for signs of potential wage increases to stabilise inflation around 2%. This decision dashed hopes for an immediate end of negative interest rates, maintaining the dovish policy stance.
Governor Kazuo Ueda acknowledged positive trends in prices and...
Building upon the foundational understanding of Fibonacci retracements and extensions explored in Part 1 (Fibonacci: The Fundamentals), this sequel ventures into the world of advanced Fibonacci patterns.
We introduce the two best known advanced Fibonacci patterns; the Gartley and Cypher. We break the patterns down into their essential components, teach you how...
Tesla: Coiled Tightly as Breakout Looms
Tesla's stock is resembling a tightly wound Tesla coil, reflecting the market's struggle to resolve its current equilibrium.
In recent months, Tesla’s share price has been contained beneath a descending trendline which has mapped the lower swing highs from the July peak (see daily candle chart below).
However, despite...
Monitoring EUR/USD’s Retracement
For traders attuned to Fibonacci levels, EUR/USD has emerged as an intriguing market to watch.
The rally observed between October and November halted at the 61.8% retracement level from the summer sell-off. In recent weeks, EUR/USD has retraced part of that October-November surge, hitting the pivotal 50% mark after a strong...
U.S. Non-Farm Payrolls Preview
With the imminent release of the U.S. non-farm payrolls data scheduled for today at 1:30 pm (UK time), let's assess the market's expectations and positioning for this pivotal economic report.
Expectations:
Wednesday's ADP Non-Farm Unemployment Change data fell short of projections at 103k versus the anticipated 130k. This sets...
Applying Nature's Harmony to Financial Markets
From flower petals to far away galaxies, the Fibonacci pattern is found across the natural world.
Fibonacci patterns are derived from the Fibonacci number sequence where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, and so forth.
Some traders believe the Fibonacci sequence and its...
The spot gold market surged overnight, targeting crucial resistance levels, but signs of rejection have surfaced as profit-taking and short selling emerge.
Weekly Candle Chart Analysis
A broader view on the weekly candle chart reveals a key area of resistance: the spike highs in August 2020, March 2022, and May 2023 converge at similar price points, forming...
Welcome to the conclusive part of our Strategy Smarts series, a set of practical trading templates expanding on concepts from our previous Day Traders Toolbox and Power Patterns series.
In this final instalment, we introduce the concept of 3-Step Confluent Zones designed to add some precision, discipline, and consistency into your trade entries.
I....
As the dust settles from a brutal earnings season which has seen stocks heavily punished for missing growth forecasts, we’re going to look at three UK stocks which bucked the trend and beat the market.
Associated British Foods (ABF)
ABF’s share price surged to new trend highs following the announcement of a surprise special dividend, a £500 million share...
Weak Dollar and Global Tensions Fuel Gold's Recent Rally
Gold prices surged to a six-month high recently, driven by growing confidence that the US Federal Reserve won't raise interest rates further.
The precious metal benefited from a declining dollar, which has dropped over 3% against various currencies this month. Weaker US economic data added to the...
With U.S. traders tucking into their Thanksgiving turkey, we’re going to shine a spotlight on UK stocks. We will run through the key levels to watch on the FTSE 100 and take a look at sector strength and weakness.
FTSE funnelled between VWAP’s
When analysing the FTSE’s price chart, the first and most important observation to make is its range-bound market...
Welcome to our four-part Strategy Smarts series designed to give you some practical trading templates which build on the concepts outlined in our Day Traders Toolbox and Power Patterns series.
In Part 3, Playing the Range we look at strategies for tackling choppy, rangebound markets. These are markets with plenty of noise and randomness – markets that can chop...
Nvidia (NVDA): Q3 earnings released after New York close on Tuesday 21st November.
Riding the AI Wave to New Heights
Nvidia's upcoming earnings release is poised to be a seismic event in the tech world, and the anticipation is palpable.
The chip maker has been riding the crest of the AI wave, catapulting its share price to stratospheric heights, hitting...
The US dollar weakened notably following the latest CPI data, showing a larger-than-expected dip to 3.2% in October. This decline, the first in four months, sparked a surge in AUD/USD on Tuesday, pushing prices back into a crucial resistance zone established since August (see daily candle chart below).
Wednesday’s price action saw AUD/USD briefly break above the...
Welcome to our four-part Strategy Smarts series designed to give you some practical trading templates which build on the concepts outlined in our Day Traders Toolbox and Power Patterns series.
Today’s piece centres around Trend Days ; what they are, how to spot them early and most importantly, how to trade them consistently.
The Trend Day: A Day That Can...
Apple Inc (AAPL)
Strong Services Offset China Concerns
Apple's share price has rallied since the release of their recent financial results on 2nd November, despite certain concerns over growth in China.
One key driver behind the rally is the stellar performance of Apple's services segment. The robust growth in services, highlighted by impressive numbers...
Over the past month, EUR/USD has been in 'mean reversion mode,' characterised by price consolidation within a turbulent ascending channel. The erratic and unpredictable nature of this price channel reflects the mixed signals emanating from the ECB:
In a recent newspaper interview, ECB Vice President Luis de Guindos stated, "we are not there yet" in response to...
