Get started

Forexsignals

What America Does with Its Money ? 🇺🇸 Decoding America's Spending: A Deep Dive into Government Finances This topic has been on the horizon for a while, and I think many new traders will be pleased to see it so LFG Just like a business, the government has its own financial records : 💰 Money comes in (primarily from taxes) 💸 Money goes out (to fund a variety of programs) With an expected gross domestic product (GDP) of nearly $29 trillion in 2024, the US remains the world’s largest economy, surpassing China’s $18.5 trillion. However, the US government isn’t exactly profitable. In fact, it’s been consistently running a growing deficit, raising concerns about its long-term financial stability. As a general election approaches, it's more important than ever to understand how the US generates and spends its money. So, let’s dive into the details Here’s a quick overview: - Revenue: A deep dive into taxes - Spending: Powering the nation - Bottom Line: Operating costs & the deficit - National Debt: A mounting challenge - The Future: America's financial outlook 1. Revenue: A Deep Dive into Taxes The US government operates on an enormous scale, and like any large organization, it requires a consistent stream of income to stay functional. However, unlike businesses that sell products or services, the government generates revenue primarily through taxes and fees In fiscal year 2023, the federal government collected an astounding $4.4 trillion So, where does all of this money come from? Let’s take a closer look: 👥 Individual Income Taxes:Nearly 50% of the government’s total revenue comes from individuals. Every time you receive a paycheck, a portion is automatically sent to Uncle Sam. This also includes taxes on capital gains from investments. 🏦 Social Security and Medicare Taxes: About 36% of revenue is generated from these taxes, which support programs like Social Security and Medicare for retirees and older adults. It’s a system where current workers help fund benefits for those who have already retired. 🏢 Corporate Income Taxes:Around 10% of the total revenue comes from businesses, which contribute a portion of their profits to the federal government. This is reflected in the income tax provisions that companies report. 🧩 Other Revenue:The remaining ~4% is sourced from various channels such as excise taxes (extra charges on goods like alcohol and tobacco), estate taxes, customs duties, and even fees collected from national park visits. 2. Spending: Powering the Nation Now that we’ve seen how money flows into the US Treasury, it’s time to explore the exciting part figuring out how it’s spent. The US government faces the enormous responsibility of keeping the country functioning, covering everything from national defense to healthcare and infrastructure. And that demands a massive amount of spending In fiscal year 2023, the federal government's net cost was $7.9 trillion, which is almost as large as the combined GDP of Germany and Japan the world’s third and fourth largest economies! -Outlays vs. Net Cost:In FY23, total outlays (the actual cash spent) reached $6.1 trillion. Outlays refer to the cash disbursements, while the net cost also includes accrual-based accounting adjustments, such as changes in the future value of federal employee retirement benefits. Who’s Deciding Where the Money Goes So, how does the government determine how to allocate all this money? It’s a balancing act involving both the President and Congress: -The President’s Proposal: The President begins the process by proposing a budget, outlining spending priorities based on requests from federal agencies. Think of it as a wish list—with a lot of extra zeros. -House and Senate Role:Next, the House and Senate Budget Committees take over. They review the President’s proposal, make adjustments, and ultimately create the final spending bills. This process involves hearings, debates, and a fair amount of political negotiation. Types of Spending -Mandatory Spending:These are legally required expenses, like Social Security and Medicare, which make up a significant portion of the budget. These costs rise over time, particularly as the population ages -Discretionary Spending:This is the part of the budget where the President and Congress decide how much to allocate to areas like defense, education, and more. In FY23, discretionary spending accounted for roughly 28% of total outlays, and it involves a yearly struggle as various departments compete for funding. -Supplemental Spending: In cases of emergency, Congress can pass additional funding outside the normal budget cycle, as it did for the COVID-19 pandemic in 2020. Where the Money Goes Now, let's dive deeper into the specific areas where all that spending is directed: -🏥 Healthcare Heavyweight:The Department of Health and Human Services commands the largest portion of spending, making up 22% of the net cost. This reflects the huge outlays for healthcare programs like Medicare and Medicaid. -👵 Social Safety Net:Programs like Veterans Affairs and the Social Security Administration also require significant funding, together accounting for 18% of the budget. This demonstrates the high priority placed on supporting veterans and retirees. -🫡 Defense and Security:The Department of Defense, tasked with ensuring national security, takes up 13% of government spending! -💸 The Interest Burden: A growing share of the budget is going toward paying interest on the national debt, consuming 9% of total spending. In FY23, government outlays represented 22% of the US economy (GDP). Over the past decade, this figure has remained slightly above 20%, excluding the exceptional impact of the COVID-19 pandemic. 3. Bottom Line: Operating Cost & Deficit When government expenditures exceed its revenue, a budget deficit occurs In FY23, the U.S. government recorded a $1.7 trillion deficit (revenue minus outlays). Here’s a breakdown of two key financial terms: -Net Operating Cost:This includes all costs incurred by the government, even if the payments haven’t been made yet. In FY23, the net operating cost was $3.4 trillion -Budget Deficit:This is a narrower measure, focusing only on the cash difference between revenue and outlays. As mentioned, the FY23 budget deficit stood at $1.7 trillion Both of these financial measures reveal a government consistently spending beyond its means—a pattern that has persisted for decades. In fact, over the past 50 years, the U.S. federal budget has only seen a surplus four times, with the most recent one occurring in 2001. 4. National Debt: A Mounting Challenge So, how does the government continue operating despite being in the red? It borrows money, mainly by issuing Treasury bonds, bills, and other securities. This borrowing adds to the national debt, which has grown into a major concern for the country’s economic outlook. As of September 2024, the national debt has reached a staggering $36 trillion. To put that in perspective, it's as if every person in the US owes over $100,000! Every time the government spends more than it earns, the shortfall is added to the national debt, which, in turn, increases the interest payments that need to be made in the future. Why the Debt Keeps Growing ? Several factors contribute to the relentless increase of the national debt: -Persistent Deficits:For decades, the government has continuously spent more than it collects in revenue, leading to ongoing debt accumulation. -Wars and Economic Crises: Significant events such as wars (like those in Iraq and Afghanistan) and economic crises (including the 2008 recession and the COVID-19 pandemic) often necessitate large government expenditures, further escalating the debt. -Tax Cuts and Spending Increases: Policy decisions that either reduce government revenue (through tax cuts) or increase spending (by introducing new programs or expanding existing ones) also play a role in growing the debt. The national debt presents a complicated issue without straightforward solutions. It requires balancing essential funding for programs and services while ensuring the nation’s long-term financial health. 5. The Future: America’s Finances The road ahead is filled with challenges. The national debt continues to rise, with a debt-to-GDP ratio surpassing 100%, raising concerns about the nation's long-term economic stability and ability to fulfill financial commitments. According to the Department of the Treasury, the current fiscal trajectory is unsustainable. Projections based on existing policies show a persistent gap between expected revenue and spending. Without substantial policy reforms, the national debt is likely to keep increasing. Several factors will influence the future of America’s finances: -Economic Growth: A strong economy generates higher tax revenues, making it easier to manage the debt. Conversely, slower growth could worsen the deficit and increase the debt burden. -Interest Rates:Rising interest rates would elevate the cost of servicing the national debt, redirecting funds from other vital programs. -Inflation: Excessive government debt can contribute to inflation, diminishing the purchasing power of individuals and businesses. -Political Polarization: The significant partisan divide in U.S. politics complicates consensus-building on fiscal policy and the implementation of long-term solutions to address the debt. -Demographic Shifts: An aging population increases pressure on entitlement programs like Social Security and Medicare, leading to higher government spending and potentially widening the deficit. To tackle the challenges of growing debt and deficits, a combination of strategies is needed: -Controlling Spending:Identifying areas for budget cuts or finding more efficient methods to deliver government services. -Increasing Revenue:Exploring avenues for raising revenue through tax reforms or other means. -Fostering Economic Growth:Implementing policies that promote sustainable long-term economic growth and boost tax revenues. -Encouraging Bipartisan Cooperation:Seeking common ground across party lines to implement lasting fiscal reforms. The future of America’s finances remains uncertain, but one thing is clear: addressing the national debt and ensuring the nation’s long-term fiscal health will require tough decisions and a commitment to responsible financial management. What Can Be Done? It’s easy to feel overwhelmed by the scale of these challenges, but meaningful change often starts with informed citizens. As we head into a new election cycle, understanding how the US government manages its finances is more crucial than ever. So, what do you think should be America’s financial priorities? Should policymakers concentrate on cutting spending, raising taxes, or fostering economic growth?
TVC:DXYEducation
by moonypto
2
Fibonacci Retracement ExplainedWhat Are Fibonacci Retracement Levels? In simple terms, Fibonacci Retracement Levels are horizontal lines on a chart that represent price levels. These price levels help identify where support or resistance may likely occur on a chart. Each retracement level corresponds to a specific percentage, indicating how much of a pullback has taken place from a previous high or low. These percentages are derived from the Fibonacci sequence and include 23.6%, 38.2%, 61.8%, and 78.6%. Although not an official Fibonacci ratio, the 50% level is also commonly used. This indicator is useful because it can be drawn between a high and a low price point, creating levels that indicate potential retracement areas between those two prices. The basic Fibonacci Retracement amongst many trading platforms would normally look like this: While this is okay, I would recommend changing the settings to my suggested format to improve clarity and comprehension. The revised version would look like this: To copy this, the revised Fibonacci Retracement Settings are bellow: By doing this, it shows you the “Golden Zone.” This spot is considered one of the most important areas because price often pulls back into this zone right before “extending” in a bullish pattern. >>>>>NERDY INFO AHEAD<<<<< Calculating Fibonacci Retracement Levels The origin of the Fibonacci numbers is fascinating. They are based on something called the Golden Ratio. This is a sequence of numbers starting with zero and one. Then, keep adding the prior two numbers to get the third number. This will eventually produce a number string looking like this: • 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987...with the string continuing indefinitely. Fibonacci retracement levels are derived from the Fibonacci number sequence. As the sequence progresses, dividing one number by the next number yields 0.618, or 61.8% (233 divided by 377 gives you 0.618037. Divide a number by the second number to its right; the result is 0.382 or 38.2% (233 divided by 610 gives you 0.381967. All these ratios, apart from 50% (which is not officially part of the Fibonacci sequence), are calculated based on relationships within this number sequence. The golden ratio can be found in various places in nature as well. This includes spiral patterns of seashells (like nautilus shells), the arrangement of leaves on a plant stem, the petals of certain flowers, and the structure of pinecones; it's also often observed in art and architecture, such as in the proportions of the Mona Lisa and the Parthenon, where artists intentionally incorporated it for aesthetic appeal. Now, as you can tell, the Fibonacci isn’t just some lines and numbers someone made up. It’s in everything you encounter. It’s on charts. It’s in nature. It’s in geometry. It’s even in HUMAN DNA. Fibonacci Retracements vs. Fibonacci Extensions Remember when I said, “price often pulls back into this zone right before extending in a bullish pattern.” ??? That’s because Fibonacci Retracement, sometimes confused with Fibonacci Extension, is the act of price level pulling back to the Golden Zone. The Fibonacci Extension is when price level continues to move in a bullish pattern after pulling back to the Golden Zone. For example, if a stock goes from $10 to $20, then back to $13. The move from $20 to $13 is the retracement. If the price starts rallying again and goes to $30, that is the extension. Limitations of Using Fibonacci Retracement Levels While the retracement levels suggest potential areas for support or resistance, there’s no guarantee that the price will reverse to these levels. This is why traders often look for additional confirmation signals such as price action and patterns. A double bottom in this Golden Zone coupled with an RSI divergence is a very good indication the price will move after entering the Golden Zone. !!!Fun Fact!!! Fibonacci retracement levels were named after Italian mathematician Leonardo Pisano Bigollo, famously known as Leonardo Fibonacci. However, Fibonacci did not create the Fibonacci sequence. Instead, Fibonacci introduced these numbers to western Europe after learning about them from Indian merchants. Some scholars suggest Fibonacci retracement levels were formulated in ancient India between 700 BCE and 100 AD, while others estimate between 480-410 BCE.2 Cheers everyone!!! Happy Trading 😊
Education
by TaylorDeMario
Foreign exchange trading skills worth collecting (Part 2) Continuing from the previous article; 25. Observe the magnitude of market changes: When the market falls (rises) with the same small amount every day, it may be a signal of a rebound (fall). 26. The dense area is likely to form a support belt or pressure belt: The dense area can be regarded as an obstacle to slow down the market price fluctuations. Once the trading range is broken, the price will make progress. Generally speaking, the longer the trading range lasts, the greater the price movement after the breakout. 27. Significant price rises and falls are often accompanied by key reversals: When the price hits a new high on high trading volume, then falls and closes lower than the previous day, it is usually a reversal phenomenon in the uptrend. The reversal in the downtrend is that the price first goes down, then rebounds strongly on the same day, and finally closes at a higher closing price than the previous day. 28. Pay attention to the head and shoulders pattern: When a head and shoulders pattern is formed on the price chart, it is usually a signal of a big rise. The appearance of the head and shoulders will not be clear until the second shoulder rebounds or pulls back to the level. 29. Pay attention to the highest point of "M" and the lowest point of "W": When the market trend forms a large M on the price chart, it suggests that you can sell. When it forms a W, it suggests that the price will rise. 30. Buy and sell at three highs and three lows: When the market climbs to a peak for the second or third time, it is a bearish signal; otherwise, it is a bullish signal. 31. Observe changes in trading volume: When trading volume rises with price, it is a buy signal. When trading volume increases and prices fall, it is a sell signal, but when trading volume decreases, no matter how the price moves, it is a wait-and-see or expecting a reversal signal. 32. The amount of open contracts can also provide intelligence: If open contracts increase when prices rise, it is a buy signal, especially when trading volume increases at the same time. Conversely, if open contracts increase when prices fall and trading volume is large, it provides sell information. 33. Pay attention to the fact that things will turn around when they reach their extremes, and good times will come after bad times: when a rising trend is very strong, pay attention to the implicit downward trend and pay attention to negative factors at any time; when a falling trend is very weak, pay attention to the implicit recovery information, pay more attention to positive news, and beware of market reversals. 34. Carefully judge the news effect: first, judge the authenticity of the news; second, understand the timeliness of the news; third, analyze the importance of the news; and finally, study the indicative nature of the news. 35. Retire before the delivery period: Commodity prices will have relatively large fluctuations in the delivery month. Commodity trading novices should move to other commodities before this to avoid this additional risk. The potential profits during the delivery period should be sought by experienced spot market traders. 36. Buy and sell when the market breaks through the opening price: This is a good hint of price trends, especially after a major news report. A breakthrough in the opening price may indicate the trend of trading that day or in the next few days. If the market breaks through the upper limit of the opening price, buy; if the breakthrough point is at the lower limit of the opening price, sell. 37. Buy and sell at the previous day's closing price breakthrough point: Many successful traders use this rule to decide when to establish new contracts or increase contracts. It means buying only when the transaction price is higher than the previous day's closing price; or selling when the transaction price is lower than the previous day's closing price. 38. Buy and sell at the previous week's high and low price breakthrough points: This rule is similar to the daily rule mentioned above, but his high and low prices are predicted based on the high point of the week. When the market breaks through the highest point of the week, it is a buy signal; when the market breaks through the lowest point of the week, it is a sell signal. 39. Buy and sell at the previous month's high and low price breakthrough points: The longer you observe, the more market momentum your decision will be based on. Therefore, the price breakthrough point of each month is a stronger hint of price trend, which is more important for futures commodity traders or hedge traders to make or break. 40. Establish pyramid trading: When you add contracts, do not add more contracts than the first one. This is a dangerous trading technique because as long as the market reverses slightly, all your profits will be wiped out. In the inverted pyramid trading, the average cost is close to the market price, which will hurt you. 41. Be careful with stop loss orders: The use of stop loss orders is a simple self-discipline; it can help you stop losses automatically. An important factor is: when you place an order, you must also set a stop loss point at the same time. If you don’t do this, you will lose more money and increase your losses in vain. 42. The retracement in a bull market is not the same as the bear market: conversely, the rebound in the bear market is not a bull market. Most investors like to short in a bull market and believe that it will definitely retrace, and vice versa. Change the rhythm and learn to buy in the retracement in the bull market and short in the rebound of the bear market. You will get more profits. 43. Buy and sell when the price is out of the track: Some successful traders use this rule most often. They buy and sell when prices are out of the norm or beyond general expectations. If ordinary buyers and sellers believe that market prices are rising, but in fact they are not, it is usually a good sell signal, especially after important information is released. Successful traders will wait for the general public to lean to one side, and then choose the time to buy and sell in the opposite direction. 44. The market will always fluctuate in a narrow range after violent fluctuations: when the market stabilizes after a sharp rise or a heavy fall, you must observe when the actual buying or selling begins to increase steadily, so that you can understand whether the market is ready to start, and take the opportunity to get on the train and wait to earn a wave of market. 45. When the bulls are rampant, the rise will slow down: if the market is filled with strong bullish arrogance, the price will not rise easily. Why is this so? When everyone is bullish and enters the market to do more, who can buy again and push the market up? Therefore, the price can only continue to rise after the people who originally did more can't stand the price softening and exit the market. 46. ​​Buy and sell at the breakout points of rising and falling wedges: Any trend has its own process of brewing, generation, and development. When recorded on a chart, it will take on a certain shape. Once a certain pattern is formed, it usually has a considerable enlightenment effect on the future market development. Although it is not absolute, it has a high probability and has its reference value. 47. Don't buy and sell multiple commodities at the same time: If you try to pay attention to the pulse of many markets, that is, if you want to grasp the news of several markets at the same time, you will hurt yourself. Few people can succeed in both the stock index and the grain market at the same time because they are affected by irrelevant factors. 48. Don't add to the losing commodities: No matter how confident you are, don't add contracts to the commodities that have already lost money. If you do that, it shows that you can no longer keep up with the market, but some traders disagree with this rule and prefer to believe in a price averaging technology. 49. In a bear market, put aside the statistical reports: In a bear market, you must be able to ignore all the statistical figures and focus on the market trend. You must understand that the figures to be published reflect the past, not the future. The figures to be published in the future are the results of the present and the near future. 50. The market can only give you so much, so don't hold unrealistic expectations: Some operators always hope to make every penny in the market; trying to squeeze the last drop of profit in the market, the time and energy spent are not worth it; a fish is divided into three parts: the head, the body, and the tail, and the largest part is the body; the operator only needs to find a way to eat the fish meat, and leave the head and tail for others to eat. I hope it helps you. The rest will be updated in new articles. If you need it, you can check it on the homepage after following it.
OANDA:XAUUSDEducation
by Signalking
Bitcoin: How to Forecast the End of a Trend.The advance from Dec 2018 seems to be tracing an impulse pattern. Wave 1 is an impulse, wave 2 is a zigzag which neatly predicts flat wave 4 by guideline of alternation. The fifth wave appears to be tracing an impulse as well; an extension. It's probable that two minute degrees have reached completion at this stage and the market appears to be tracing out the third wave. So how do you forecast the target for wave 5? One way is to use an Elliott wave channel. Connect the end of wave 2 and 4. Draw a parallel line along the top of wave 3 to project wave 5 target. It is quite common for wave 5 to end upon reaching the upper boundary line of the channel In some cases, when wave 3 is uncommonly strong, almost vertical. Draw a parallel line using the top of wave 1 instead of wave 3. From experience, it's quite advantageous to draw the two upper boundary lines.
INDEX:BTCUSDEducation
by Aquanet_Market_Forecast
How to Confirm an Elliott Wave Count.Hello fellow traders, today I would like to show you how to apply a Kennedy Channeling technique (by Jeffrey Kennedy) to identify and confirm Elliott waves with more confidence. 1. Base Channel:- Wave 3 identification When wave 2 is complete, connect the origin of wave 1 and the end of wave 2. Draw a parallel line along the top of wave 1. As long as price action stays within this channel, you can consider price action corrective, probably wave C of a Zigzag. In a bullish trend, prices ought to break above the upper boundary line of this channel for wave 3 count to be acceptable. 2. Acceleration Channel:-Wave 4 identification. Connect the extreme of wave 1 and the top of wave 3. Draw a parallel line starting at the bottom of wave 2. Only after prices break through the lower boundary line of the acceleration channel, could you be convinced that wave 3 is over and wave 4 is unfolding. 3. Final Channel:- Wave 5 identification Connect the end of waves 2 and 4. Draw a parallel line along the top of wave 3 to project wave 5 target. It is quite common for wave 5 to terminate upon reaching the upper trendline of the final channel. That's all for today. Trade wisely!
Education
by Aquanet_Market_Forecast
Want to spot a turning point in trend before it happens?Want to spot a turning point in trend before it happens? Use Elliott wave parallel channel This chart shows the GBP/JPY currency pair using monthly candlesticks. The advance from Sep 2011 to June 2015 can be labeled as an impulse wave (A). From that high, the pair declined in three waves labeled as wave (B) of a Zigzag A-B-C correction with an expanding diagonal characteristic in the C wave position. As a rule, in a Zigzag rally, wave B notably terminates above the origin of wave A. When wave (C) advance of a zigzag rally is in operation, we can forecast where wave (C) might end. We can use Elliott wave channel projection by connecting the origin of wave (A) with the end of wave (B) and then drawing a parallel line from the end of wave (A). As a guideline, the resulting channel gives us a potential target for the wave (C) endpoint. Moreover, we can also use ratio analysis to improve the odds. As a guideline, in Zigzag formations, wave (C) commonly ends after traveling the same length as wave (A). Observe this level corresponds with the Elliott wave channel projection. This cluster of evidence hints at wave (C) advance from Mar 2020 is in late stages and that prices are approaching a major top.
Editors' picks
Education
by Aquanet_Market_Forecast
17
Mastering the Art of Trading Doji Candlesticks in Forex 📈🕯️ Mastering the Art of Trading Doji Candlesticks in Forex 📈🕯️ ✅Introduction ================= In the world of forex trading, the use of candlestick patterns is an essential tool for analyzing and predicting market movements. Among these patterns, the doji candlestick holds a special significance due to its potential to signal market reversals and trend continuations. In this article, we will explore the characteristics of doji candlesticks, their significance in forex trading, and strategies for effectively trading them. Formation of 2 doji candles on a daily time frame on GBPUSD after a retracement was a strong bullish signal. ✅Understanding the Doji Candlestick ===================================== The doji candlestick is characterized by its very small or non-existent body, indicating that the opening and closing prices are essentially the same. This results in the formation of a short or non-existent body, with long upper and lower wicks. The doji represents market indecision, signaling a potential reversal or continuation of the current trend. Doji candle helped me to predict a bearish reversal on USDJPY. ✅Trading Strategies with Doji Candlesticks ============================================== 1. Reversal Strategy: When a doji candle forms after a strong upward or downward trend, it can indicate market indecision and potential reversal. Traders can look for confirmation from other technical indicators or patterns to enter a trade in the opposite direction of the previous trend. Example: After a prolonged uptrend, a doji candle forms, indicating indecision. Traders can wait for a bearish confirmation candle, such as a bearish engulfing pattern, before entering a short trade. 2. Continuation Strategy: Sometimes, a doji candle can signify a brief pause in the current trend before continuing in the same direction. Traders can wait for a break above or below the high or low of the doji to confirm the continuation of the trend. Example: In a strong uptrend, a doji candle forms, indicating uncertainty. Traders can wait for a break above the high of the doji to enter a long trade, expecting the trend to continue. 3. Doji Patterns: Certain variations of the doji candle, such as the dragonfly doji, gravestone doji, or long-legged doji, carry their own specific implications based on their shape and position within the broader price action. Traders can develop specialized strategies based on these patterns. Combining key levels and doji gives even more powerful confirmation ✅Conclusion ================ In conclusion, mastering the art of trading doji candlesticks in forex requires a deep understanding of their characteristics and the ability to integrate them into effective trading strategies. By incorporating doji candlesticks into their arsenal of technical tools, traders can gain valuable insights into market sentiment and improve their decision-making process. By learning to recognize and interpret doji patterns, traders can enhance their ability to identify potential trend reversals and continuations, leading to more profitable trading outcomes. Incorporating the strategies outlined in this article, traders can leverage the power of doji candlesticks to gain an edge in their forex trading endeavors. Happy trading! 📊💰
OANDA:XAUUSDEducation
by AnabelSignals
2
AUD JPY Swing Buys Ask Me Live ($9K Banked)"Explore the intricacies of Forex trading with a focus on the AUD/JPY Buy Swing Position in my latest video - 'AUD JPY Fibonacci Entries Unveiled (Forex Trading).' 📈💹 Join me on a journey through the market nuances as I delve into the specific details of Fibonacci entries for this strategic swing position. In this comprehensive guide, I unveil the power of Fibonacci retracement levels in navigating the AUD/JPY market. Discover the secrets to identifying optimal entry points and enhancing your trading precision. Whether you're a seasoned trader seeking advanced strategies or a beginner aiming to grasp the fundamentals, this video is tailored to elevate your trading game. Don't miss the opportunity to fine-tune your skills and gain a competitive edge in the dynamic world of Forex trading. Subscribe, hit the notification bell, and let's master the markets together! 🌐✨ #ForexTrading #AUDJPY #FibonacciEntries #TradingStrategies #MarketAnalysis"
Education
by RB_T
Risk Management vs. Time ManagementHey! Have you been spending day thinking about mistakes you made and things you didn't do? Investors are knowingly comparing an exchanges to a casino. A gambler, losing, does not get up from the gambling table in the hope of winning back. He believes that the likelihood of winning increases with every lost bet. This phenomenon, called player mistake, is common among investors. The pioneers of the theory of behaviour finance Hersh Shifrin and Meyer Statman showed in 1985 that investors intuitively misjudge the likelihood of repeating random results - they hold unprofitable positions too long, hoping for a return in prices, and close profitable positions too quickly, fearing that the movement will end. The assertion that the market cannot fall for many sessions in a row is untenable. Short-term changes in asset prices are mostly random, notes analyst and author of several books on behaviour finance, James Montier, in his article Global equity strategy, gamblers fallacy. Tails does not become more probable after a series of heads, the coin has no memory - in the same way, the chances of success do not increase after a series of failures. The major problem in the trading when we trying to recoup from losses. Many people make this mistake over and over again. The reason of this mistake is the unwillingness to accept and calculate affordable losses and come to terms with the result, the wrong internal setting that you must end every trade and every trading session with a profit. But not every trade will be profitable. How can I avoid this mistake? 1. After loss trade, tell yourself: "Stop, I won't trade now, I will pause." 2. Analyze the failed trade and write it down. Thus, you will allow yourself to "cool down" and more intelligently approach the situation on the market. There will always be opportunities, don't be afraid to miss out on any movement and profits. 3. Calmly develop a new trading plan based on market changes. If according to the trading plan you need to enter, then enter and earn. Do not rush to enter the market immediately, because it is easy to enter, but it is difficult to exit, since it is no longer possible to change the initial price at which you entered. 4. Make sure you following your risk management and always trade with possibility to lose. Stay safe and good luck!
Editors' picks
GEMINI:BTCUSDEducation
by ArShevelev
69
3 Types of Stop LossesToday’s topic is going to be on three types of stop losses . This is a very critical topic because stop losses come under the category of risk management. Risk management is such a pivotal, important and critical topic. Why? Because professional traders and investors, the first thing that they always do and constantly think about before they get into a trade or investment is not how much profit they’re going to make, it’s how much they can afford to lose. The only control that you have when you enter into a trade and you’re in the trade is the risk factor because most of us will not have the capital power to control that trade. It’s a collective pool of people’s thoughts and a lot of other factors that come in which then determines how the price moves in the market, especially how smart money enters the market actually. So in light of all of that, the real power that you have, the real control that you have is your risk management. How much you can afford to lose. In terms of that, we’re going to be looking at the three types of stop losses and how to stop your loss when the market does something which is not favourable to you and not in line with the direction of the trade that you are taking on. The first type is what we call the technical stop . This is the one most people will be familiar with. That’s where all your different kinds of stop losses come under: moving averages, channels, trend lines and so forth. All these are summarised under technical stop losses. Even if you use tier based stop losses, they come under technical stop losses. The second one is called a money stop . A money stop is basically one where you write in your rules, and this is how you execute a trade as well is that you say, for example, you enter a trade and it is going well in profit. You tell yourself to trail your stop loss to break even as soon as the trade is 3% in profit. You don’t care what the moving averages are or where the price pattern is whatsoever, you would just move your stop loss to break even. So that is purely based on money. That is called a money stop because the stop loss is adjusted according to your profits or your losses. Usually it’s to your profits – that’s when you trail and adjust your stop loss. The final one is the time stop . As you’ve already guessed, the time stop is based on time. Especially for intra-day trading it’s very important because you know certain times of the day volume is really high and other times of the day volume starts to dry up. So especially if you want to capture a certain percentage of move, you want to capture it before a certain time and you usually know that after 5pm or 6pm the volume usually dries up. Price movement is not really that much especially towards 9pm. So you can have a rule saying, for example, at 5pm or 6pm you’ll look at exiting a trade if it’s not reached an objective. If you’re a swing trader you start saying things like you know if it’s consolidating for 10-15 days in a row I will possibly exit out of the trade. So all that is basically based on time. Let me ask you a question. Out of all the three stops I’ve talked about: technical, money and time, what do you think is the strongest stop of them all? I think, if my guess is right as we have coached thousands of traders, most of them usually tell me it’s either the technical or the money stop. In fact, let me tell you Traders, the weakest one of them all is the money stop because there’s no basis for it. It’s just based on money and just trailing it. The strongest is the time stop because everything is determined on time and you’re time bound in everything that you do. If you look at daily activities: waking up, going to work, having meals, going to bed – your life is time bound. Here’s the final most critical point. If you actually want to make your risk management really strong, the trick is not to put emphasis on either one of them according to strength, but to make them sync with each other so that they can then adapt to market conditions. It’s basically a confluence of the types of stop losses that can help you to generate the rules which can adapt to market conditions. For example, when you start out if you put in your initial stop loss in a technical place and as time then moves by then you would then get more aggressive with your stop loss and as it’s nearing towards exit, if you’ve reached a certain profit potential as the market price is still hovering around, losing momentum, then you would then start to go into money stop. Money stop is especially useful if you’re in swing trading. For example, when we took the DOW Jones trade and we took that 2,000 point move on a mismatched strategy when it had already done 80% of the move we used a money stop because we don’t want to give back all that profit back to the market. So that’s when we start to us a money stop and a combination of time stop, initially starting with a technical. So that’s how you do it. Do have a good think about this because this is so critical Traders. If there’s only one thing you have total control of, it’s your stop loss, it’s your risk management. So contemplate this, revisit your strategy rules and see how you can optimise that for maximum performance of your strategy. I believe that you have really enjoyed this topic and have some amazing value from this. Until the next time, as we always say, stay disciplined, follow your trading plan and keep trading like a master .
Education
by masterthemarkets2010
Target Reached! AUDJPY ReviewPrice reversed nicely from the 96.84 level we forecasted and dropped all the way down to the support target. How did we manage to forecast this setup? Join Desmond as he breaks down the move. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
3 Key Entry Rules to Boost Your Trading PerformanceToday I want to share with you this topic: the 3 Entry Rules to Boost Your Trading Performance. Over the 20,000 traders that we have coached over the time via conferences and talks we’ve done all over the world, we have found one of the challenges that traders have is that they find themselves locked into a trade and then being stopped out when they enter into trade. So their entries are not really optimized or they are not getting the right timing for their entries. Sometimes they come during a coaching session; they say ‘Thiru, I need some help with my entry.’ So this topic, the 3 Entry Rules, can actually help you optimize your entry and overall improve your strategy performance. This is what we’re going to be looking at today in this video. The first one is what we call “ Time Frame Correlation ,” the short form abbreviation TFC. In TFC one thing you do have to remember when you’re correlating the different time frames is that you’ve got to remember three times. Some of you may be wondering ‘What do you mean by three times?’ What I mean is that for example if you are an intra-day trader trading on a shorter time frame, like a one hour time frame, then you need to be looking at three time frames at least altogether, so the one hour and each of the time frames has to be three times the one that you are trading on, three times or four times. Now let me explain by way of an example: If you are trading on a one hour time frame, then we are looking at maybe three to four hours (1 x 4 = 4 hours) and then after that, you want four times that, approximately that is a daily time frame, 16 hours is a daily time frame. What we’re looking at is to correlate the times frames before we take the trade. We are usually looking at three time frames and each time frame is three times each other. For example, if you are an end of day trader and you want to enter your position onto a four hour time frame then you can start to look at daily time frame and then three to four times that would be a weekly time frame as well that you’re looking at. Let me explain why this is important. For example, imagine this – you would have probably experienced this – in a one hour time frame it looks like it’s going down and you are thinking it is looking like a very good short sell as the direction is going further down. You put your entry over here and let’s say you put your stop loss over here and you’re good to go. Let’s say your target is somewhere around there. In the next hour the trade then triggers you in and starts to go towards your target, everything is well and rosy. You are happy, you’re in profit and you are thinking ‘it is only a matter of time before I reach my target.’ Then what happens? You know the usual thing, you would have experienced it if you have traded or if you are trading at the moment as well, it will start to reverse and where your stop loss is – let’s say other traders have their stop loss here as well – suddenly the market reverses and shoots up and takes up all the stops. I’m sure you have experienced this. Now why does that happen? It is because, if you imagine this is the one hour time frame, if you didn’t correlate between the other time frames – the four hour and the daily time frame – and let’s say the four hour and the daily time frame are in an up-trend, if that is the case, then what happens is that the orders that are inside the daily time frame are being filled by the brokers and therefore the market is reversing to fill them up on a higher time frame. This is what is happening and this is why sometimes you get these sharp reversal moves in the market. It is very critical that you correlate the time frames before you start to take your position on the one hour time frame. In fact, in the last live trading we did where we were teaching a strategy that we called “stops to cash,” what we usually do is we take contrarian move on a one hour time frame where it looks like a perfect short, where beginners and even intermediates are getting into short position, but we are looking at a contrarian position in terms of the one hour time frame but when you align it to the higher time frames, it’s just in line with the trend. That’s all we’re doing here. What we’re saying is when everybody’s stops are being taken out, we are actually converting it to cash according to this time frame correlation. I believe that concept is well clear and nice now. Definitely do consider putting that into your entry rules. The second entry rule we’re looking at is “ Indicators .” This is quite a critical one that you can put into your entry rules also to optimize your strategy performance. In terms of indicators, the usual common ones that we are looking at are Stochastic, RSI and for example CCI as well. These are familiar names, you have all heard of them. There are thousands of indicators, but the important thing is don’t just pick an indicator and just slam it onto the screen, but ask yourself what are you looking to achieve, what is the objective of your strategy? Then pick and choose your tools. For example, let’s say you’re driving your car and it starts to break down, you can’t just choose any old hammer or spanner. You have to analyze the problem first before choosing the tool that you want to use to repair the mistake or the fault on the car. It is the same thing here, as we are looking to optimize our strategy, we have to ask ourselves what is going to be the most efficient indicator to help me optimize my strategy performance and towards what objective? That is how you actually choose the indicator that you want to have on the screen in your strategy. The last one we are looking at is “ Price Action .” Price Action is very critical because most of our strategies use price action. It is the fastest of them all. Some things the price won’t be able to tell you and that’s when we use indicators because it involves a lot of calculations. With price actions you notice some really powerful bar patterns that give you an edge in the market and then using all these three factors together that can give you a very strong edge against all the other 99% traders. For example, price action patterns can start to look like the low test bar starts to come up over here and it’s starting to show a reversal pattern. Or even things on a daily time frame where we are looking at something like a down trend and it is starting to reverse – all those critical price action patterns that can give you and edge. So these three rules that’s I’ve just gone through with you right now can be so important to improving your whole strategy and your trading performance. On a final note, what I want you to remember is that just using them by themselves is not enough as Traders. But using them in a cumulative manner strengthens your edge so strongly in the market and also optimizes and maximizes your trading performance for consistent profits. I believe this has been very useful for you all and as we always say, til the next time stay disciplined, follow your trading plan and keep Trading like a Maste r.
Education
by masterthemarkets2010
Target reached! Crude Oil ReviewPrice bounced strongly above the 67.31 support level towards our take profit target - but how did we do it? Join Desmond in this analysis review where he covers the reason why this setup worked nicely. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:USOILEducation
by FXCM
Target Reached! XAGUSD ReviewPrice reversed strongly from our resistance level to the support level at 22.20. But how did it happen? Join Desmond in today's analysis review to have a quick recap on the elements that led to this strong reversal. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
FX:XAGUSDEducation
by FXCM
3 categories for Strategy RulesToday we’re going to be looking at three categories for strategy rules . This is very critical because the most important concept before we enter into a trade is to have it already pre-set in our mind where we’re going to enter and how we’re going to exit. It’s all got to be totally predetermined and you have to visualise your whole trade set-up, your trade management and your trade exit. All these three things must be very clear within you and you must already have spelled it out with clear rules so that’s its very clear in your mind. Clarity leads to conviction. Finally that gives you courage to pull through any kind of loss cluster or drawdowns. Let’s take a look at these three categories for strategy rules. The first one is about entry rules . These tie in with what your trade set-up should look like. So when should you enter a trade? The last thing you want to do Traders is to enter a trade just out of emotional impulse. Once you’ve entered a trade by emotional impulse, when you come out of it you’ll think ‘Oh no, why did I do that?’ and that hurts so many traders. Many of the over 20,000 traders that we’ve coached so far and talked to at seminars have told us that they’ve made this mistake. One of the ways to stop that and nip that mistake in the bud is by making the rules really clear and so straight forward that you know how to follow them and can repeat them again and again. The entry rules can be sub-categorised into pre-entry rules and post-entry rules. Pre-entry rules basically means before you enter the trade what are the criteria for you that must set-up for you to enter and then to trade that price or that instrument? If you do get stopped out, what are the rules for you to then re-enter back into that trade. Some tools that you can use to formulate your entry rules are: Price action – be very clear on how the price action should be before you enter into a trade. For example, if you want to buy into a position has there got to be two seller bars and one buyer bar or has there got to be some kind of momentum decline which you also need to quantify so that emotional trading doesn’t come in. That’s all to do with price action. Time frame correlation – as I have explained in other videos, if you’re an end of day trader you’ve got to correlate with a higher time frame. We usually recommend three time frames. Indicators – there are thousands of them and you’d know about them. Cycles and phases – you can incorporate rules about cycles and phases into your strategy. Support and resistance rules – where you can enter into the market based on supply and demand. News – think about how long before news comes out do you want to enter? For example, if news comes out in the next 30 minutes, do you want to enter a trade even before, say 30 or 40 minutes before news comes out? All these things you need to include in your entry rules and as good criteria you need to at least include three or four of them. We call it degrees of freedom and you need to have at least three to four of them, ideally four, minimum three in your strategy. Of course as I’ve mentioned before in other talks, you need to choose and mix and match these rules according to the concept and objective of your strategy. The second thing, after the entry rules, we’re looking at stop loss rules . Stop loss can be further sub-categorised into initial stop loss rules and trailing stop loss rules. Before you even enter the trade you should know where the stop loss is going to go which is the initial stop loss. Once you enter into the trade you need to then know how you’re going to manage your trade and then to trail that stop loss progressively. This is critical. You need to know this before you enter the trade. Finally, our target rules . Where are we going to get out, what is our target? In terms of target rules we’re looking at pre-target, that is, before we enter the trade we should already know where we’re going to get out. And the intra-target as well, for example, you might be familiar with the USD and Swiss Franc – it was crazy, a price shock as we call it, a price adverse move of 5000 pips in just one day. When price adverse shocks like that happen suddenly in the market, you must have plans to get out. That’s what we call intra-target rules. Those are the three categories that you definitely must have in your strategy rules so as to consistently execute and also to remove doubt and emotion you need to quantify those rules. That will really help towards your consistent execution. In summary, they are entry rules, stop loss rules and target rules. The objective of writing all those rules, Traders, is so that you really get clear in your mind how the trade should look. You should have predetermined everything and you should be able to visualise how everything should be before you get into the trade, while you are in the trade and how you should get out of the trade – trade entry, trade management and trade exit. I believe this has been very useful. Do some research on your strategies and you’ll clearly see how much clarity and conviction you’ll have in your strategy and how it will help you with your execution and strategy forms. Until the next time, as we always say, stay disciplined, follow your trading plan and keep Trading Like a Master.
Education
by masterthemarkets2010
Target Reached! EURAUD ReviewPrice bounced perfectly from our confluence support level and reached our target. But how did it happen? Join Desmond as he reviews how we managed to forecast the reversal with such a high degree of accuracy. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
Target reached! GBPUSD ReviewPrice bounced off the 1.2683 support we identified and rose nicely to our take profit target at the 1.2832 level. In this review, we touch on why we used the 1.2832 level and not the swing high at 1.2850 - a lot of this is down to trade management and take profit placement. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
Target Reached! USDCHF ReviewPrice reversed beautifully from the sell entry level we forecasted at 0.8988 and has reached the take profit target of 0.8908. The important lesson here is to place your take profit before a key level (vs right at the key level). As you can see in this video, price touched the TP level and took off in the other direction - just missing this crucial bit of information would have been potentially costly. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘Name of third party provider). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Name of third party provider. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Forex Capital Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM EU LTD (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. FXCM Australia Pty. Limited (www.fxcm.com): ** Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com FXCM Markets LLC (www.fxcm.com): Losses can exceed deposits.
Education
by FXCM
10 MOST important bar patterns to profit trade Bar patterns are elegant tools for every trader who trades on Price Action signals. I present to you 10 bar patterns that you must know! These patterns are easily found on charts and allow for easy placement of stop loss and take profit. Reversal Bar Patterns 1. Reversal Bar 2. Key Reversal Bar 3. Exhaustion Bar 4. Pin Bar 5. Two-Bar Reversal 6. Three-Bar Reversal 7. Three Bar Pullback Volatility Bar Patterns 8. Inside Bar 9. Outside Bar 10. NR7 1. Reversal Bar The low of a bullish reversal bar is below the low of the previous bar, and the close is above the close of the previous bar. The high of a bearish reversal bar is above the high of the previous bar, and the close is below the close of the previous bar. Buy above a bullish reversal bar in an uptrend. Sell below a bearish reversal bar in a downtrend. 2. Key Reversal Bar A bullish key reversal bar opens below the low of the previous bar and closes above its high. A bearish key reversal bar opens above the high of the previous bar and closes below its low. By definition, key reversal bars open with a price gap. Since gaps on intra-day timeframes are rare, most key reversal bars are found on daily timeframes and higher. Buy above a bullish key reversal bar (if you are not sure, wait until the price closes above it, and only then buy). Sell below a bearish key reversal bar (if you are not sure, wait until the price closes below it, and only then sell). 3. Exhaustion Bar A bullish exhaustion bar opens with a downward gap. The price then moves up, and the bar closes near its high. A bearish exhaustion bar opens with an upward gap. The price then moves down, and the bar closes near its low. In both cases, the gap remains unfilled. Additionally, the exhaustion bar should form on high volume. Buy above a bullish exhaustion bar. Sell below a bearish exhaustion bar. 4. Pin Bar It has a long and distinct tail. In bullish pin bars, the lower tail occupies most of the bar. In bearish pin bars, the upper tail dominates. Buy above a bullish pin bar that bounces off a support level. Sell below a bearish pin bar that bounces off a resistance level. 5. Two-Bar Reversal The two-bar reversal pattern consists of two strong bars closing in opposite directions. The bullish version consists of a strong bearish bar followed by a strong bullish bar. The bearish version consists of a strong bullish bar followed by a strong bearish bar. In bullish reversals, buy above the highest point of the two-bar pattern. In bearish reversals, sell below the lowest point of the two-bar pattern. 6. Three-Bar Reversal The bullish pattern consists of the following three bars: 1. A bearish bar 2. A bar with a lower high and a lower low 3. A bullish bar with a higher low and a close above the high of the second bar The bearish pattern consists of the following three bars: 1. A bullish bar 2. A bar with a higher high and a lower low 3. A bearish bar with a lower high and a close below the low of the second bar Buy above the high of the last bar in a bullish pattern. Sell below the low of the last bar in a bearish pattern. 7. Three Bar Pullback Three consecutive bearish bars form a bullish three-bar pullback pattern, and three consecutive bullish bars form a bearish three-bar pullback pattern. In a bullish trend, wait for three consecutive bearish bars to form. Then buy above the next bullish bar. In a bearish trend, wait for three consecutive bullish bars to form. Then sell below the next bearish bar. 8. Inside Bar The inside bar must be completely within the range of the previous bar. In other words, the second bar must have a lower high and a higher low. Place bracket orders around this pattern to trade its breakout in either direction. (A buy order above its high and a sell order below its low. Once one order is filled, cancel the other.) Place only one order (either a buy or a sell) in accordance with the market trend. Wait for the breakout of the inside bar and trade its lack of follow-through. 9. Outside Bar The outside bar is the complete opposite of the inside bar. Its range must exceed the range of the previous bar, i.e. it has a higher high and a lower low. Wait for the breakout of the outside bar and open a position against the market movement. (Especially if the outside bars look like dojis or go against the trend.) Trade its breakout, especially when the outside bar closes near its top or bottom. 10. NR7 This pattern requires the presence of seven bars. If the last bar has the smallest range in the sequence of bars, then this is an NR7 pattern. As a reminder, the range of a bar is the difference between its high and low. Buy on the breakout of the high of the last bar, if the trend is upward. Sell on the breakout of the low of the last bar, if the trend is downward.
Education
by Hellena_Trade