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ma5 breakout trading setup - Earlier last week we posted some basic MA5 setup action and how effective it is in gold setups. Today we show you how a simple trading setup that you can use to draw strong levels and how to trade with them. Support and resistance can be drawn in many ways and often traders find what works for them and use that method. This is a method we use to create strong levels of support and resistance lines that get respected well in trading gold. We draw a line where the MA5 average creates a turn angle. We then wait to see how this level is challenged and broken. When the ma5 average line breaks this level, we wait for a 1H candle to close after, as confirmation of the challenge being broken. We can then place an entry on the next candle opening or from a reversal and target a capture of 200 pips or some of our experienced traders will target exit at the next level. If this is over 1000 pips then we use strong money management techniques to baby sit the trade. As the weeks go by we will start to build on these trading setups. Please support my team here to provide more knowledge on this platform. We have a strong reputation in the trading world but new to sharing on this platform. support us with follows and likes so we can build on sharing our setups with you.
OANDA:XAUUSDEducation
by Goldviewfx
3
McGinley Dynamic IndicatorMcGinley Dynamic Indicator: It was invented by John R. McGinley. It would automatically adjust itself in relation to the speed of the market. This future can be very helpful as it is sometimes difficult to choose the right period for the MA. It also helps to account for the gap that often exists between prices and moving average lines. Can't be used as a single indicator and we need to combine this with other indicators or another McGinley indicator. Price actions respect moving averages because so many traders use them in their strategies. Because of the formula, the Dynamic Line speeds up in down markets and moves more slowly in uptrends. One wants to be quick to sell in a down market, yet ride an up-market as long as possible.
Education
by apadanaforex
DIVERGENCE IS CONVERGENCE ✅There are several main ways to work on the stock exchange in trading. Technical analysis, for example, is recognized as effective and is used by almost all market participants. But the disputes about indicator analysis do not stop for a long time. Some traders talk about the backwardness of the method because trading operations are performed faster every day. Others build successful strategies based on one or more indicators. Still, others combine two methods to find successful market entries and get an effective tool for making money on the stock exchange. Divergence is often used for this, which will be discussed below. 🔴What is divergence Divergence is one of the strongest signals that indicator analysis can demonstrate. To obtain it, one of the possible oscillators is used. The divergence conditions are that the curve of the price chart diverges from the indicator data. For example, with an uptrend, the price continues to move up, while the oscillator shows a decrease in the interest of the main participants of the trading system. In this case, we should expect a change in the direction of the price. Such a change does not always mean a new trend. Sometimes it can be a normal correction or price fluctuation. To determine the exact forecast, the methods of technical analysis of divergence are used. The result largely depends on the timeframe, sometimes on the support and resistance levels. ⚠️There is also an opposite process — convergence when the price of an asset decreases, and the indicator shows growth. This process is called convergence. Both signals are used in the Forex market, but they are known collectively as "divergence". There are bullish and bearish divergences in the Forex market. In addition, divergence is divided into three types: 1️⃣Classic divergence. 2️⃣Hidden divergence. 3️⃣Extended divergence. ❗️To successfully trade currency pairs on Forex, taking into account divergence, you need to learn how to correctly read information from the market. A combination of indicators and fundamentals of technical analysis will help in this. Divergence plays an important role, so its indicators cannot be ignored. ❤️ Please, support our work with like & comment! ❤️
BITFINEX:BTCUSDEducation
by SignalProvider
15
What type of trader are you? Please comment belowHello friends, Today I thought in helping you understand different Forex Trader Types and probably you can identify yourself in which category you fit in so you know how to approach the market each day. There are 6 type of traders as far as I know: 1. News or Fundamental Traders ✅Fundamental traders focuses on Fundamental events that may potentially drive the market in a particular direction, causing spikes in a certain direction. ❇️This type of trading will be best for individual traders who likes to keep up with world events that can cause spikes in the market and seek to take advantage of these spikes that can last for a short period of time ranging from few seconds to 15 minutes. ✅This type of trading can be extremely risky as the market can change direction very fast which can cause a trader loosing his/her entire funds, but with good trading skills and experience this type of trading can be very rewarding and offers fast returns. ✅Fundamental Traders would seek to trade the Non-Farm Payroll data, employment figures, elections, CPI and GDP. 2. Scalpers ✅Scalpers are traders that focuses on holding positions for a short period of time from few seconds to a few minutes. ✅This type of trading requires a trader to sit on computer the whole day or during the time when the market is very volatile to take advantage of the small movements in the market to be able to make profit. ✅A trader may be inclined to take so many trades, making smaller profits each time to be able to make good return at the end of the day. 3. Day Trader ✅Day trader is more less like a scalper, taking short positions during the day and making sure that all positions are closed before the end of the day to stay away from negative news events, market gaps or widening of spread. ✅A day trader should be alert to changes in market direction and manage his positions swiftly and accordingly. 4. Swing Trader ✅Swing traders can hold positions for some couple of days and up to perhaps a couple of weeks. ✅Traders of this type analyses the market and take advantage of changes in trend direction and catch a trend while it is still fresh and ride this trend for a longer period of time before closing positions. ✅They would not be required to sit on computer the whole day. Rather, they would analyse, calculate the cost and take the position and they will only get back to computer after some couple of hours or another day to monitor the movement. ✅This type of trading is good for those that hold other businesses or jobs as they can make time for other activities to be done. 5. Position Traders ✅Positions traders hold trades for longer periods of time ranging from a several weeks to years. ✅For this type of trading patience is required to be able to hold trades for that long and a trader should have a very good knowledge about what moves currencies in a long term. ✅That also means that swap charges will be a lot and as a position trader he should put that into consideration before taking a long term position. 6. EA, Algorithmic Trader ✅These type of traders rely more or solely on computer algorithm programs to make buy and sell decisions for them. The EA also known as Expert Advisor may place trades on behalf of the trader and even closing trades when in profit. ✅Although the EA performs most of the work, a trader should also have basic knowledge of trading to be able to gain some measure of success from this type of trading. Why is it important to trade in your local currency? ✅It can save you from a lot of calculations. When you trade in a currency which is not your local currency, your mind processes so much information to convert every number to your local currency. Your mind will be tired at the end of the day and you will begin making unplanned trades. ✅I watched a video on this topic recently and this fellow mentioned the same thing that I always thought, when you trade in a currency which is not your own, you wouldn't respect money. For example, $50 US dollar would look smaller if you are a trader living and using South African Rand. You may want to wait for more to be satisfied as the number 50 may look smaller in the eyes. But if we convert USD50 to South African Rand it would be R725.38 today and for many that would be a 4 days wage. ✅Many traders, especially new ones in the Forex industry, they really do not know what they want and how to go about making things work out consistently for them, they only think if they keep buying and selling eventually they can hit a million dollar and get away from the financial distress and poverty. Probably that is how the Forex Market is perceived, that giant casino that makes people rich and such way of thinking can destroy one's life and everything he acquired for years. The most important thing here is to respect money, knowing that it is very hard to obtain. As we respect it in our homes, hiding it from our siblings or relatives, we should respect it on the MT5 or MT4. Money is like Gold in our days, if you really want to know how important money is, get a spade and go dig for Gold. I wish I could write more, but I feel like I have written more already and some people may find this boring to read. Please hit that like button if you learned something from here. Feel free to comment below what you have learned or the type of trader you are. Many Good wishes for you, Forexintelligence AKA the Sniper:)
FX:NAS100Education
by Forexintelligence_NA
10
Trend Reversal Patterns📈📉 1️⃣ Pattern head and shoulders After the pattern has become visible, namely, the right shoulder is visible, the trader needs to wait for the breakout of the neckline. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it is better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertically from the maximum of the head to the neckline) and postpone it until the breakout point. 2️⃣ Inverted head and shoulders pattern Occurs in a downtrend and foreshadows an uptrend. The rules for working on a figure are similar to the previous ones. It should be noted that "head and shoulders" in its pure form is very rare. Be careful! 3️⃣ Double Bottom Pattern After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 4️⃣ Double Top pattern A double top is like a double bottom. The only difference is that this pattern is reversed and occurs in uptrends. The number of extrema in a pattern can be not only double, but also triple. But the rules of work will be the same for everyone - enter the breakout, postpone the target to the height of the figure and wait for it to be fulfilled. 5️⃣ Diamond We measure the height and wait for the breakdown. If there is a breakout, then the target of the price movement will be the height of the pattern from the breakout point. 6️⃣ Cup and handle Trades are opened when the "handle" is broken upwards. The target is the height of the formation. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
11
Trading Basics | Your Main Trading Time Frame ⏳ Hey traders, You frequently ask me what is the most important time frame to analyze and follow. And even though I must admit that multiple time frames must be taken into consideration for successful trading like weekly/daily/4h/1h. Among them, there is the one that is universally considered to be principal. That is a daily time frame. There are a lot of reasons why so many traders rely on a daily time frame: 1️⃣ - Daily time frame shows a global market trend at the same time reflecting a mid-term and short-term perspective letting the trader catch trend following moves and spot early reversal signs. 2️⃣ - Covering multiple perspectives, daily time frame is the foundation of the majority of the trading strategies being the main source of key levels & pattern analysis. 3️⃣ - Daily time filters out news events that happened during the trading day. It shows the composite reaction of the market participants to all the data posted in the economic calendar. 4️⃣ - Daily time frame reflects all trading sessions. Within one single candle, we see the outcome of the Asian, London, and New York Sessions. 5️⃣ - Daily candle filters out all the noise from lower time frames & intraday price fluctuations and sudden spikes & rejections. 6️⃣ - Covering all the trading sessions, daily time frame mirrors the activities of big players like hedge funds and banks. Showing us the flow & direction of big money. ⚠️Being so important for analysis, do not neglect other time frames. The most accurate trading decision can be made only relying on a combination of intraday and daily time frames. What is your favorite time frame to trade? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
26
Stop loss is your enemy? One of the most common misconceptions in trading is that your STOP LOSS is your ENEMY. But in fact, the opposite is true. Stop loss is your best friend There will always be losing trades because they are part of the trading system. You cannot avoid them, but you can CONTROL the losses. Stop Loss is a defense mechanism designed to get you out of the market at the PRESERVED PRICE and LOSS that you planned. Exiting a stop loss certainly doesn't make you a bad trader. When a trade goes against you, you are the most vulnerable in terms of irrationality and emotional instability. SL (Stop Loss) exists to get you out of the market safely and securely before your emotions get the better of you and further damage your account balance. Most newcomers to the market make the same mistakes ... Always increase the SL size, add more positions at a loss, and risk most of their accounts for a few trades. Always adhere to 1-3% RISK PER TRANSACTION. The key to the game is longevity. By understanding that your SL is your savior, you can release the emotional tension of a losing trade and instead maintain maximum clarity on your charts to quickly move away from PRE-CALCULATED losses as a simple part of the process. With the right RISK / PROFIT RATIO and adherence to the RISK principles of 1-3%, you can get more losing trades than profitable ones, but at the same time remain a profitable trader 💰 Your worst feeling is greed. Keep your losses minimal and you will quickly find that your trading will improve tenfold by simply exiting the market when it no longer matches your preconceptions and plans. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
9
RISK MANAGEMENT + PATIENCE = SUCCESS Hello everyone! In this idea, I will try to warn you against the wrong approach to trading. As you know, 95% of retail traders hold their losing positions for too long in the market, but at the same time cut profits before the trade reaches its potential. That is, a trader, being in unprofitable positions, is ready to sit out huge drawdowns -50% ..- 70% ..- 100% of the deposit, but at the same time, with a profitable trade, he is ready to close the profit with a yield of + 1% with trembling hands. It is a common trait of a retail trader to be constantly at war with the market. The fastest way to drain your deposit is to fight against trades that are going against you. 95% of traders fall into the trap by increasing their stop loss on an open trade or, even worse, adding even more positions to a trade that goes against them, sincerely hoping that the market is about to turn around and go in their direction. Successful traders do the opposite. Taking the risk per trade of 1-2%, they minimize their losses in unprofitable scenarios by closing by stop loss. But in the case of profitable trades, they take MORE profit than they initially risk. In this case, a profitable trader may have more losing trades than positive ones, but he will still be in profit. Take the emotion out of your trade and let price hit your stop loss where you set it. Thus, your losses do not exceed the threshold of the planned risk, allowing your profitable positions (with a good risk: reward ratio) to override any that did not work in your favor. Cut your losses and let your profits grow ❤️ Please, support our work with like & comment! ❤️
Education
by SignalProvider
9
KNOW WHEN TO STOP TRADING🛑 A trader who is in a bad mood should think about taking a break. The easiest way to determine when a BREAK from trading is needed is to first assess your current emotional state and performance. - Do you constantly close the trades couple of seconds/minutes after you opened them, chaning your mind? - Do you spend all day "burning" your eyes, watching charts to find patterns just for the sake of making money fast? - Are you deviating from your trading plan? - Are you taking more risks than usual? If you answered "YES" to at least one of these questions, then it's time to stop. Always let the market give you the conditions for trading. Build your analysis = Follow your trading plan & strategy and let the market do what it needs to do. Never get into the market at random or into the first pattern you come across. You will often notice that the pattern is not the best trading condition. When you find yourself violating strict risk management and trading plan, take a step back and understand what may be causing your irrational decision-making. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
13
TRADING HIERARCHY | KNOW WHAT MATTERS THE MOST ⚠️❗ Hey traders, I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regards to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis totally neglecting trading psychology and risk management. Learning different trading strategies I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading I finally saw a glimmer of hope. Reading dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
44
Analyst and Trader. What are the differences? The main difference between an Analyst and a Trader is in their main goals. For an analyst, the main goal is to determine the future price and write articles. Most analysts give a double trend direction in their forecasts, as they worry about their incorrect forecast, and hedge in case of their mistake. For a trader, the main goal is to MAKE a PROFIT when working in the market. At the same time, the direction of the trend is a secondary goal, since you can also make a profit by scalping when the trend does not matter much. Each trader has his approach to trading and his trading strategy. One trader opens a long position to earn money on the growth of quotations, but at the same time, another trader opens a short position on the same instrument to earn money when the price drops. PROFIT is the main priority for the trader. The analyst can show alternative options for the development of events, leaving the trader to make a responsible decision about actions in one or another option. At the same time, the Analyst does not risk anything - neither his money nor his reputation, since TWO OPPOSITE scenarios insure him from making a mistake. As a rule, 65% of analysts do not trade themselves, but only write analytical articles and make forecasts. A few facts about the analyst and trader: Analyst: - collects information and analyzes the market situation - writes analytical articles - makes forecasts (usually in two directions, for safety) - probably trades/invests by himself according to his forecasts Trader: - determines the direction for a potential transaction - performs risk calculation and installation of a protective order (stop loss) - performs trading operations on the market to make a profit - manages and accompanies the position from the beginning to the end And who do you think you are? An analyst or a trader? ❤️ Please, support our work with like & comment! ❤️
BITFINEX:BTCUSDEducation
by SignalProvider
7
POW Edge Reversal is HERE 🚀🚀🚀🚀🚀🚀🚀We've been sharing ideas on this strategy for quite some time now as part of our 'forward testing' approach and log. In this video, I run through the strategy, how it works and how it can help. Everything we do at POW is based on 'proof it works' - this is no different and you'll see this in the data I run through for you. Any questions about gaining access please drop me a DM on here. This just shows how powerful Pine script is - to automate a strategy and confirm you have an edge in the market. Removing stress, decisions, overwhelm and all of the emotional struggles trading can bring. Let me know in the comments what you think please - be nice right 😅? Please scroll through some of my previous ideas to see some trades in action. Regards Darren
Education
by pow_removetheguesswork
7
5 Important Candle Patterns that You Need to Know 5 most important candlesticks to know! Simplicity is the key to a positive result, and many traders ignore the simplicity of using these 5 MAIN candle patterns and the importance of each of them, as well as what they are. Many traders complicate everything and make trading more complicated than necessary. Using only these 5 candle patterns together with other basics of technical analysis is all you need to successfully make money in the market! Learn to read the market like a book, read candles-it's like reading words on a page. Candlesticks are the language of the market, and to understand the market, we must be fluent in the language of the markets. Knowing exactly where to find and trade these 5 candle patterns can change your trading forever. Candlesticks combined with other methods of applying technical analysis can be incredibly powerful in understanding where financial markets can go. It is important to remember that candlestick patterns are a physical representation of human psychology and decisions made in the market. Think deeper. The candles that you see on your charts, actually give you clear signs of what the dominant side (buyers or sellers) wants to do next. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by SignalProvider
41
4 TIPS ON USING TECHNICAL INDICATORS 🤖🖥 Hey traders, Technical indicators are an essential part of technical analysis. With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that. Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them. #1️⃣ Do not overload your chart with indicators. There is a fallacy among so many traders: more indicators on the chart lead to an increase in trading performance. Following this statement, traders add dozens of technical indicators to their charts. The chart becomes not readable and messy. The trader gets lost and makes wrong trading decisions. Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators. #2️⃣ Learn what exactly the indicator shows The data derived from technical indicator must make sense to you. You must understand the logic behind its algorithm. You must know exactly what it shows to you. Confidence in your actions plays a key role in trading. During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence. You will be able to overcome negative trading periods only by being confident in your actions. Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times. #3️⃣ Use the indicators that compliment each other Many indicators are based on the same algorithms. Most of the time the only difference between them is a minor change in its input variables. For that reason, such indicators leave very similar clues. In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other, not show you the same thing. #4️⃣ Price action first! Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first. You must know the way to make predictions relying on a naked chart. The indicators must be applied as the confirmation signals only. They must support the trading strategy but not be its core. ❗️Remember that the indicators won't do all the work for you. Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools. Would you add some other tips in this list? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38
✨ The Dejavu Effect ✨What is Dejavu? Dejavu is a term used to describe a feeling that one has lived through the present situation before. How does this tie in with the markets? Technical analysis is based on patterns repeating itself over and over again. Technical analysts believe past trading activity and price action can be valuable indicators to future price movement. How can we prepare ourselves? Some of the ways we can prepare ourselves is by doing the following: - Learning patterns that reoccur over and over again such as bull flags, wedges etc. - Identifying candlestick formations and understand what they mean e.g. shooting star candles means there’s a possible trend reversal from bullish to bearish - Learning to identify structure levels where price can react in the future - Understanding fibonacci and learning how to use it effectively. [Once we’ve identified a possible market dejavu moment, what next? Following identification, the next step is confirming whether this is in fact a similar move to historic price movements. The types of confirmations that can be used are the following: - Trendline breakout - Fibonacci rejection - Lower timeframe patterns - Moving average strategies __________________________________________________ EURUSD - The Dejavu Effect 1. Bullish Correction. We identified a falling wedge which resulted in price moving higher. 2. Bear Correction. The bullish move was short lived with a bearish correction which resulted in… 3. Three Wave Falling Wedge. This falling wedge pushed price up to the double top region. 4. Ascending Correction. The move up to the double top could be monitored using an ascending trend line to monitor the correction. 5. Minor drop. Once price broke down, we had a minor drop. 6. Major drop. After another small correction we had a major drop. Notice how we didn’t specify whether we were talking about the Blue phase or Red red phase… Dejavu.
Education
by WicktatorFX
18
How do you trade with Correlation?How do you trade with Correlation? You can trade on forex pair correlations by identifying which currency pairs have a positive or negative correlation to each other. I have identified above the 3 main correlation pairs which correlate best with each other. In the conventional sense, you would open two of the same positions if the correlation was positive, or two opposing positions if the correlation was negative, for example when OIL increases in value, the Canadian Dollar tends to increase in value. This is because Canada is among the top 5 oil producing and exporting countries making them directly correlate. CHF & GOLD Correlation Both the Swiss Franc (CHF) and physical gold have acted as reserve 'currencies' thereby establishing a relationship between the gold price and Swiss Franc . Despite some differences, the Swiss Franc and the gold price are correlated and the similarities shared by the two can be clearly identified. This the Swiss National Bank has a huge amount of Gold Reserves and is one of the largest possessors of gold reserves worldwide. This also gives the Swiss Franc direct correlation with gold as the government passed a legislation that the Swiss Franc must be backed by gold . Why is it important Correlation is important when trading your strategy as you can manipulate the market and gain more confluences to confirm your entries. For example if you are focusing on the Canadian Dollar and can see a bullish trend and an entry point, OIL must also be bullish due to the correlation and you can confirm your analogy as you have analysed 2 correlating pairs which are both bullish .
OANDA:XAUUSDEducation
by Pips-Collector
Without this, you will not become a profitable trader Yes, this is risk management. Without proper risk management, your trading strategy based on levels, indicators, patterns, etc.will not make any sense. Any trading strategy should be supported by strict risk management, where the maximum allowable losses per transaction and the risk ratio are observed:the profit is always more than 1/2. You don't have to be right in every trade. It's just that your profit in successful transactions should be greater than the losses in unprofitable transactions. This correct use of risk management will lead you to success. ____________ The example shows one of the real scenarios of any trading system where the rules of risk management are observed: Deposit of 10,000$ The risk per transaction is -1% (or -100$) Total trades: 4 profitable trades = +14% 10 losing trades = -10% Total: +4% (or + 400$) Even though only 30% of the total number of profitable transactions, we still have a profitable result. Learn risk management and become a consistently profitable trader. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
128
XAG/USD EVERY SUNDAY LIVE ZOOM ANALYSISThe gold & silver market is pushing significantly higher, following a significant miss in the U.S. labor market with fewer jobs created in August. Friday, the U.S. Labor Department said that 235,000 jobs were created last month. The data was weaker than expected as consensus forecasts called for jobs gains of 720,000. While the headline data saw a significant miss, the Labor Department included substantial revisions to its June and July numbers. June's employment numbers were revised up by 24,000 to 962,000 from the previous estimate of 938,000. Meanwhile, July's data was revised up to 1.053 million jobs compared to the initial estimate of 943,000. However, some economists note that the strong revisions are not enough to take the full sting out of the disappointing headline numbers. Meanwhile, the U.S. unemployment rate dropped to 5.2%, down from July's reading of 5.4%. The unemployment rate fell in line with expectations. The gold market has broken through critical near-term support levels in initial reaction to the weaker-than-expected employment data. December gold futures last traded at $1,827.10, up nearly 1% on the day. Not only was job growth weaker last month, but positive for gold, wage inflation continues to creep higher. The report said that wages rose 0.6% in August, up from July's 0.4% increase. Economists were expecting to see a 0.3% increase. A lot of focus had been placed on the August employment numbers. Many Federal Reserve officials noted that a strong number could prompt them to launch their plans to reduce their monthly bond purchases. However, some economists say the disappointing data could force the central bank to delay those plans. "This disappointing report will make it a closer call than we expected for a September tapering announcement from the Fed," said Katherine Judge, senior economist at CIBC. Paul Ashworth, chief U.S. economist at Capital Economics, said that the latest employment numbers puts the Federal Reserve in a very difficult position. He noted that the economic data shows the COVID-19 pandemic and the spreading Delta Variant is impacting the current recovery. “Even allowing for the fact that first estimates for August often disappoint on the downside, the extent of the slowdown in jobs growth all-but rules out any tapering announcement at this month's FOMC meeting and, if this weakness persists, then it could be pushed into early next year. XAG/USD EVERY SUNDAY LIVE ZOOM ANALYSIS UK 18:00
OANDA:XAGUSDEducation
by globalsymmetrygroup
1
XAU/USD - CHART ANALYSIS - NFP ! The gold market still has a path to $2,000 in the second half of the year as the precious metal is undervalued in a world awash with liquidity, according to the latest research from Bloomberg Intelligence (BI). In a report published Wednesday, Mike McGlone, senior commodity strategist at BI, said that within the metals complex, gold appears to have the most potential when compared to other assets like copper and aluminum. "Copper and aluminum are reaching upper range price caps, but we see gold as a discounted bull market with improving fundamental underpinnings," he said in the report. "The copper-to-gold ratio has reached the highest level in about seven years and a rare disparity vs. declining U.S. Treasury bond yields, which we expect will be resolved by a resumption of the precious metal outperforming the industrial. Looking at aluminum, McGlone said that tightening supply and demand fundamentals are helping to push prices to $3,000 per tonne; however, similar to copper's run to $10,000, he added that aluminum’s rally appears to be unstable. He said that the industrial metal complex faces some challenging near-term hurdles. "Supply elasticity is proving strong for copper, indicating headwinds for the industrial-metal sector, but ESG, electrification and decarbonization trends should maintain the group's upper hand vs. most other commodities, with the exception of precious metals," he said. "Among the most supply-constrained commodities, gold and silver have the relative advantage heading toward the end of 2021 of having experienced sharp corrections within more enduring bull markets, as we see it." While there is plenty of bullish sentiment surging through precious metals markets, gold prices continue to struggle to find consistent momentum. The precious metal is holding support above $1,800 an ounce, but it has been unable to push above $1,820 an ounce. December gold futures last traded at $1,810.80 an ounce, down 0.29% on the day.
OANDA:XAUUSDEducation
by globalsymmetrygroup