Cable coils near lows ahead of Fed and BoE rate decisions
It’s a big week for Cable (GBP/USD) as both the Federal Reserve and the Bank of England are set to make crucial rate decisions.
The action begins on Wednesday with Fed Chair Jay Powell widely anticipated to keep rates unchanged at 5.5%.
On Thursday, attention shifts to Andrew Bailey's announcement at...
FTSE 100 Technical Outlook
In prior technical outlooks, we highlighted the importance of staying alert in sleepy markets, and last Thursday’s developments on the FTSE 100 serve as a prime illustration of this principle.
Having spent the first half of the week coiled and consolidating, the FTSE burst into life on Thursday – breaking and closing above multiple...
Tesla Gap Higher on Supercomputer Boost
Tesla's share price gapped higher on Monday after investment bank, Morgan Stanely said Tesla’s supercomputer, known as Dojo had the potential to boost its market cap by $600 billion.
Dojo's production began in July, and Tesla plans to invest over $1 billion in it by next year. The supercomputer could create new markets...
Welcome to our Power Patterns series in which we teach you how to trade some of the most powerful price patterns which occur on any timeframe in every market.
When it comes to powerful price patterns, the bearish engulfing pattern is right at the top of the list. It provides traders with a clear and decisive signal that sellers have taken control of the...
Cable pulls back to key resistance
Cable (GBP/USD) has been staircasing lower since mid-July and carving out a powerful downtrend on the 4hr candle chart (below).
A key characteristic of this downtrend has been repeated moves down into the lower Keltner channel followed by pullbacks to the 20-day exponential moving average (EMA).
Recent price action has seen...
Overview
Last week’s price action saw gold break and close below the small ascending channel which had formed during the final week of August.
The bearish channel breakdown was a scenario we mapped out in last week’s gold game plan.
A key catalyst behind the move lower in gold was a resurgent U.S. dollar with the dollar index (DXY) hitting highs not seen since...
FTSE 100 Technical Outlook
This week's FTSE price action illustrates traders' sensitivity to interest rate expectations on both sides of the Atlantic.
On Tuesday, the FTSE experienced a post-bank holiday rebound, driven by weaker U.S. job numbers that were perceived to alleviate pressure on the Fed to raise interest rates further. Notably, Tuesday's rally...
Is Nvidia Finally Topping Out?
Nvidia, the chip manufacturer, has unquestionably been the standout stock of the year, driven by the increasing demand for its 'supercomputer' chips that are playing a key role in the AI revolution.
The company's shares have experienced a remarkable uptrend, surging by an impressive 227% year-to-date. However, we are starting to...
Welcome to Part 2 of our 7-part Power Patterns series. In this series, we'll be equipping you with the skills to trade some of the most powerful price patterns which occur on any timeframe in every market.
This week’s pattern, the ascending triangle can often precede fast and powerful breakouts. A strong understanding of this pattern is essential for any trader...
EUR/USD Breaks Support as Bear Channel Continues
EUR/USD has been carving out a series of lower swing highs and lower swing lows on the daily candle chart (below) – creating a bearish descending channel.
Last Friday’s better than expected nonfarm payrolls has seen a resumption of U.S. dollar strength and caused EUR/USD to move lower from the top of the...
Overview
Gold is currently tracking higher within a small ascending channel – fuelled by the anticipation that the Federal Reserve will halt its interest rate hikes. This expectation is rooted in a series of underwhelming U.S. economic indicators, suggesting constrained potential for additional rate hikes.
Nevertheless, the unexpectedly robust nonfarm payroll...
FTSE 100 Technical Outlook
This week's FTSE price action illustrates traders' sensitivity to interest rate expectations on both sides of the Atlantic.
On Tuesday, the FTSE experienced a post-bank holiday rebound, driven by weaker U.S. job numbers that were perceived to alleviate pressure on the Fed to raise interest rates further. Notably, Tuesday's rally...
NZD/USD forms bearish pin-bar at key resistance
Yesterday’s price action saw NZD/USD form a bearish pin-bar reversal pattern at a key area of resistance. Let’s look at the quality of this sell signal…
Earlier this week, the U.S. dollar had weakened across the board after August’s ADP employment report revealed lower job creation than expected, and the second...
Welcome to our Power Patterns series in which we teach you how to trade some of the most powerful price patterns which occur on any timeframe in every market.
This week’s pattern, the fakeout is beautifully simple and has the power to be highly effective. It has stood the test of time and should be a key part of any price action traders arsenal.
We’ll teach...
What is RSI?
The Relative Strength Index (RSI) is a widely used indicator used by traders in technical analysis that evaluates the strength of a financial instrument’s price movement over a given period. It measures the speed and change of price fluctuation on a scale of 0 to 100, providing insights into overbought or oversold conditions, as well as potential...
What is scalping?
Scalp trading, also known as scalping, is a popular trading strategy characterised by relatively short time periods between the opening and closing of a trade.
Scalping is the shortest-term style of day trading that specialises in profiting from small changes in the price of assets. Its name derives from the way its goals are achieved – by...
Causes of overconfidence bias
In order to define overconfidence bias, it is important to understand some of the causes. These could include:
Doubt avoidance. Very often, people don’t like moments of ambiguity or doubt. Overconfidence could work as a solution, with the overconfident person feeling confident in their abilities to feel sure, even in a situation...
Yesterday, spot gold in the US session initially declined to the $1924 level but later stabilized and witnessed a strong rebound. The market experienced a breakthrough and touched the $1950 mark, ultimately closing at a strong $1960. The daily candle indicated a bottoming out and a subsequent upward movement. Although there was a temporary dip below the $1930...
