Marketprofile
BCDBTC Volume Analysis Prediction 04/08/2019Finally we have activity on the market, volatility increases, that's a good signs.
After several growth candles we saw sharp reactions from the resistance zone 0269-0275.
It is obvious that in this area there is interest from the big seller.
After the last rise, the price could not even reach this area and began to form slow downward structure.
Buy: area 0217-0219 (with confirmation)
Take Profit1: 0236
Take Profit2: 0253
Take Profit3: 0269
Buy: 0236 (after true breakout)
Take Profit1: 0253
Take Profit2: 0263
Take Profit3: 0275
Stop Loss 1-2%
Priority: Bear
EURUSD Volume clusterRight now i waiting for long trade on EURUSD. Because of nice buying acvivity confirmation with Volume cluster.
In the picture is marked three volume cluster.. For my long trade i dont choose the last one around 1.11960.
Much more better price level for long trade is volume cluster near 1.1230, because of buying activity.
Other confirmation for my long trade is Daily BIG GREEN candle on EURUSD..
Happy trading
Dale
NZDCAD Volume clustersHere is the most significant levels for this week on NZDCAD.
I expected on this levels oportunity go short.
Both of this level is based on volume accumulation setup.
From price level 0.9247 followed strong sell off, this is why i expected that strong sellers will be fight about this price.
Happy trading
Dale
Correlation EURUSD VS. USDCHFHere is my two yestarday´s levels from my Members area. ( Both ended up in profit )
Let me explain my how correlation between EURUSD and USDCHF works and how you can look at the charts.
EURUSD and USDCHF are negatively correlated (correlation almost -100%). If USDCHF falls, then EURUSD should rise. If EURUSD rises, USDCHF should fall.
This means that in similar areas there will be similar levels for trade.
HOW THIS CAN HELP ME IN TRADING?
If you consider some price level for trade make sure that is visible on other pair too... If will be significant area for long on EURUSD, make sure that there is a significant area for short trade on USDCHF too!
If there is, then you will be more likely to have a successful trade.
Happy trading
Dale
AUDCHF uptrend = waiting for pullbackRight now from point A to B can see pretty nice uptrend, For that reason i looking strong volume cluster.
Suitable one is near zone around 0.7064.
After this nice accumulation pretty strong buying activity take over.
I hope so after pullback to this area will be strong buyers will defend their long positions.
EURUSD break outAfter consoludation finally EURUSD made breakout down... There is nice to see initiation of strong sellers who push the market down. Move down is around 65 pips... So strong move for find out good point for my daily short_1.
So here is the mean reason for this short :
1. Trend setup
2. Daily Point of control
3. break out fro consoludation
Happy trading
Dale
NZDCAD S/R zones Here is nice S/R zones for this week. It will be depent how the market will be react on this zone. I hope Short 1 because from this point staret nice sell off around 800 pips down!! So BIG move down .. This is reason why i will watch reaction for my short. Volume profile let me know that in the market is still Strong sellers...
Financial Market Introduction 101SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY
Financial Market Introduction 101
a) Market participants
Market Participants include those parties that are involved in the operations of investment
companies. Their control in the market is necessary and they should be well aware of the
changes in the market.
1. Brokers and dealers handle trade activities between the buyers and sellers of currencies by
charging a fee. They are the crucial part of the FOREX market, which acts as a medium
between buyers and sellers.
2. Investment advisers are individuals who provide investment advice to investors by
issuing reports regarding the analysis of investment securities.
3. The investor is one of the main participants of the financial market as funds are allocated
to them as a capital to gain financial returns in future.
4. A central bank is one of the monetary authority and it regulates the state's currency,
interest rates and money supply. Performance of the commercial banking system is also
overviewed by the Central bank of respective countries.
b) The Trading Market
Trading market is a place where trading of currency and securities are done. The market includes
brokers and investment experts who provide active services as traders on the basis of their
education and knowledge regarding the market. They take investment decisions on the basis of
different trading methodologies and data from past years to determine the most profitable
investment.
c) The Best Time to Trade
Best time during the year
Previous yearly records show that October and September are considered as the best months to
invest in the FOREX. The main reason is due to the price bumps, which usually arises during the
month of November and December, due to the seasonal changes.
Best time during the Month
The best time of the month to invest in the FOREX is during the first five and last five days of
the month. The fact was illustrated in research conducted by Professor Ogden’s, which
determines different types of investment return that are paid in the last first few days of the
month. This "regularity of payments" can enable the investors to generate profit on their
investments.
1. Municipal bonds interest payments are made up to 90%
2. 70% of corporate bonds principal payments
3. Preferred stock dividends are paid up to 65%
4. 45% of all common stock dividends.
d) Market Cycles
Market cycles are considered as the key to determining the maximum returns. The market cycle
can be divided into 4 phases:
Accumulation Phase
• The accumulation phase arises after the market decline and experienced traders start to buy
after figuring that the worst position of the market is ended.
• At this time period, currency price valuations are pretty enough that they can play an
essential role in profit generation. However, in this stage, prices are flattered and every seller
in the market knows that the buyer will get a healthy discount.
Mark-up Phase
• A Mark-up stage the market stability moves forward towards the higher market moves.
During this time media stories usually determine that the worst period of trading is over,
however, increase in unemployment can arise during this period.
• At the maturity of this phase, investors use bandwagon because of their fear regarding the
decrease in market prices. A bandwagon is a group including technicians who analyses the
market prices to recognise the changes in market direction and sentiment.
The Distribution Phase
• Within this time period, sellers dominate the market. The bullish market sentiments can
turn the market cycle towards the mixed sentiment. Prices in this phase stay locked,
which can last for some weeks and months.
• Even the timing models do not flash any signals to buy the currency. This phase can be
affected due to the bad economic news or adverse geopolitical event.
Mark-Down Phase
• This stage can be most painful for the investors, those who still hold their previous
FOREX reserve can get huge losses, as they would have to sell them even at the lower
prices at which they have bought the currency.
• However, this phase determines the buying signals to the early innovators, which can
enable them to generate returns in future once the prices got higher. This stage also
demonstrates that it is not the good period to sell the FOREX.
e) Days of the Week
1. Throughout the whole week, Monday is considered as most the best day to buy FOREX,
as the prices usually show a decline. A study conducted on "A Survey of the Monday
Effect Literature" reveals that decline in the prices can be the reason of bad news that was
released during the weekend.
2. Conversely, if Monday is considered as the best day to buy FOREX, Friday is determined
as the most feasible day to sell it. As it is better to sell the reserve before the weekend due
to changes of price decreases which can affect the profitability of investment, in case of
selling it at lower prices on Monday.
3. Heading towards Tuesday trading can flourish a little. The reason behind this fact is that
opinions are formed by the traders and they have started taking their positions in the
market. Therefore, this can make a good day for trading in the market.
4. Wednesday shows the same kind of trend in trading followed by Tuesday or usually
depicts bigger price moves and is considered as the second-best day of the week for
trading.
5. Thursday, it quickens. Thursday is considered as the days when huge profits can be made
by the investors. Investing in the right currency can enable the investor to generate huge
profits.
f) Hours of the Day
Trading in the morning time is not a good idea as market prices and volumes can change
roughly. It is assumed by experts that these are considered as volatile hours and several new
releases can affect the investment outcomes adversely.
However, trading in the middle of the day can be favourable for the investor, as prices mainly
remain stable during this time period. Several time frame analysis is utilised by the investor to
select the most appropriate time for trading.
g) Swing Approach
Swing-Traders analyses the swing chart within the day so that they can take advantage of
favourable price changes in the marketplace, and this affords them the benefit of not having to
watch markets continuously while they are trading. Once they find an opportunity in terms of
increase in FOREX prices, they place the currency on sale and then constantly keep a check on
the progress of the pricing.
The approach has different optimal time frames, which include:
• Daily, and Weekly Charts
• 4 Hour, and 1 Hour charts......
Please let me know if you would like to know more
Happy trading :)
"In investing, what is comfortable is rarely profitable" Robert Arnott
Current markets statusS&P 500 opened two times BIG gap down (1.2%-1.3%) within the last 3 days! Something which has not happened neither during 2015 and 2016 corrections nor during XIV imploding in february this year. This is spectacular situation as neither of those gaps were completely filled. This signals that the downsloping trendline is indeed very strong. Moreover spoos have bounced today from fibonacci 76% retrac. This is pretty low for fibo standards. The trendline also hold very tightly. All of the major equities indices are below 200-SMAs
The plunge could not be stopped by companies reporting better than expected earnings. This also shows strong downward pressure. Comments from companies like TXN don't help either.
High Yield bond spreads gave up and went high which translates into de-risking mood probably.
Here I provide some totally not significant market members insights:
> Smart Money have been selling since february and now the move intensified,
> HFs fear of being closed down as they provided horrible results this year (now, they may have incentives to bet on eveything that moves even if it crawls losing even more money in the process) with their favourite FANG stocks dropping like a rock,
> speculative bets on treasuries are being squuezed out of the all-time low shorts (this will intesify rates moves downward)
PS. Traders are waiting for mysterious Plunge Protection Team to deliver them from evil as everything seems lost
Market Analysis - 11th October 2018831 points down on 10/10/2018 what a bearish day but basically September – November months are volatile times of the year. From my previous update the idea for a bearish move was floated that the candlestick pattern last week especially with the long upper shadow and the evening star reversal afterward. We had buying pressure but it all gave out there was no buying pressure yesterday after the market closed.
Futures are also down 269 points and with this indication if the opens on Thursday it is likely to open at 25250.
Market Expectations
Let go back to February 2018, look at the big candlestick, the gap down followed by a huge candlestick next day and a huge bullish candle afterwards. This may be the model in play this very time but I cannot confirm it just a trader’s hunch. See the rally in January 2018 to all time high of 26500, the freaking gap down and a big bearish 500 point trading session followed by a gap down opening at 25347 just like we are seeing now to close at 24345 almost a 1000points on 5th February 2018. Following this 5th February session was a bullish candle, a Doji and a bearish candle and then the buying demand kicks in when you see the lower shadow.
My hunch is that Thursday is going to be bearish but there are alternatives.
Idea here is there will be a gap down with a bearish trade down to support levels 24,800. There are 3 primary pivot areas at 24,800, 24,500 and 24,000. It is scary but looking at February 2018 this could be the model of fizzles and rallies. Note that since July 2018 we have had a 2500 points move in the DOW JONES suggesting it is over bought.
Few months into the future we will look back and see the strong support at 24,000 and resistance at 26500. At this point in time I cannot with specificity state any fundamental reason for this move, I think the market is overbought and traders are taking profit so as not to get caught like the February 2018 move.
My hunch is the general sentiment is bearish and this may continue today but you may see an engulfing candlestick bullish because of the market volatility. It is scary but in hindsight it won’t be.
However, If we however a bullish Thursday then Friday will be a continuation to the downside as the bearish move is not completed.
The oscillators depict a downside potential.
Stochastic is downside with 47.57 and 62.95 we need to get to around 20.
RSI is oversold and MACD is currently crossing down.
The Bollinger band is a bearish breakdown.
Support level CHFJPYPretty heavy volumes got accumulated around the 114.56 area. Then a really strong buy-on started. When the price makes it back to this level I expect a reaction, because those strong buyers are most likely to defend their buying positions and to push the price upper again. The biggest Volume in chart is your the biggest advantage before BIG players :-)