Bites Of Trading Knowledge For New TOP Traders #13 (short read)Bites Of Trading Knowledge For New TOP Traders #13
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What is Bitcoin and from where did it originate? -
Bitcoin is a digital form of a medium of exchange with no central bank control which issues fiat currencies. Instead, the financial system involving bitcoin is managed by thousands of computers distributed around the world, a decentralized ledger, where anyone can participate by downloading open-source software and connecting to the ecosystem.
The invention and implementation of bitcoin is credited to the person or persons known Satoshi Nakamoto in 2009. The white paper “Bitcoin: A Peer-to-Peer Electronic Cash System“ states that bitcoin was to be, “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
What is the Blockchain? -
The Blockchain is a decentralized ledger that is append-only meaning that data can only be added to it. Once information is added, it is extremely difficult to modify or delete it. The Blockchain enforces this by including a pointer to the previous Block in every subsequent Block.
The pointer is a Hash of the previous block. Hashing involves passing data through a one-way function to produce a unique Fingerprint of the input. If the input is modified even slightly, the Fingerprint will look completely different. Since the Blocks are linked in a Chain, there is no way for someone to edit an old entry without invalidating the Blocks that follow, allowing a secure structure.
What is Mining? -
Mining is the process in which transactions between users are verified and added to the decentralized ledger. The process of mining bitcoin is responsible for introducing new coins into the existing circulating supply and is one of the key elements that allows bitcoin to work within the peer-to-peer decentralized network, without the need for a third party central authority.
What Is a Blockchain Consensus Algorithm? -
A consensus algorithm is a mechanism that allows users or machines to coordinate the agreement of what is a valid block in the Blockchain in a distributed setting. It needs to ensure that all participants in the system can agree on a single source of truth. Types of consensus algorithms include Proof of Work (PoW) and Proof of Stake (PoS).
What is Proof of Work? -
Proof of Work (PoW) is a mechanism for preventing the same bitcoin funds from being spent more than once. Proof of Work consists of a consensus algorithm which is a protocol that sets out the conditions for what makes a block in the Blockchain valid. It ensures the security and integrity of bitcoin’s distributed ledger.
RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS -
Common application of financial market instruments for managing risk and opportunities.
Alternatives: Correlation in Futures
Investors could allocate a portion of their portfolio to establish a managed futures position and use market correlations to determine alternative markets to enter that meet their account size and risk parameters.
For example, the Asia Tech 30 Index when charted against bitcoin shows a positive correlation between the two markets. Traders or investors may have interest in gaining exposure to bitcoin, but due to their smaller account size, may prefer to participate in a market that is correlated and fits their capital limitations. In this case, the Micro Asia Tech 30 futures contract could be a viable alternative to trading bitcoin with its lower margin requirements.
TRADDICTIV · Research Team
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Disclaimer:
We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
SDX1! trade ideas
USD Dollar forming double top?#usddollar, 15th Key reversal bar, next Insurance bar indication for short dollar. 105.55-60 resistance level for previous fall. High probability to hold this support to form double top. price may go rise up a little to catch stop losses of short traders. Target is 103.00.
U.S. Dollar Index Futures (DX1!), H4 Potential for Bullish contType : Bullish Momentum
Resistance : 105.580
Pivot: 103.520
Support : 102.780
Preferred Case: On the H4, price expected to bounce off the ichimoku cloud support which supports our bullish bias that price will rise from our pivot at 103.520 in line with the swing low support and 50% Fibonacci retracement to the 1st resistance at 105.580 in line with the 61.8% fibonacci projection and horizontal swing high resistance.
Alternative scenario: Alternatively, price may break through pivot structure and drop to the 1st support at 102.780 in line with the pullback support and 61.8% Fibonacci retracement .
Fundamentals: As US Banks come back from the holiday, the DXY is expected to break out of the current consolidation to form a directional bias. Although there is no major news for the US today, the economic uncertainty continues, therefore expect to see increased volatility in the DXY .
U.S. Dollar Index Futures (DX1!), H4 Potential for Bullish contType : Bullish Momentum
Resistance : 105.580
Pivot: 103.520
Support : 102.780
Preferred Case: On the H4, price expected to bounce off the ichimoku cloud support which supports our bullish bias that price will rise from our pivot at 103.520 in line with the swing low support and 50% Fibonacci retracement to the 1st resistance at 105.580 in line with the 61.8% fibonacci projection and horizontal swing high resistance.
Alternative scenario: Alternatively, price may break through pivot structure and drop to the 1st support at 102.780 in line with the pullback support and 61.8% Fibonacci retracement.
Fundamentals: As US Banks come back from the holiday, the DXY is expected to break out of the current consolidation to form a directional bias. Although there is no major news for the US today, the economic uncertainty continues, therefore expect to see increased volatility in the DXY.
DollarPeople know what the Fed is going to do. We've heat peak inflation. And those inflation expectations will start to come down, and Fed will be tightening into a slowing economy. You'll see bond yields dip lower, and the dollar index will soften.
Technical the chart looks weaker and lower. WE should expect a long duration of loser $, this is not a day-week or month trend. The trend has turned and will soften over a long period of time.
Shorting the dollar is the best protection.
DX1! - Dollar Index looks creepyOK, that's creepy to me.
On this long term chart we see that price respects the Pitchfork very nicely. But that's not creepy, that's what I see day in and out.
But here it comes: IF this is a monster Bull Flag we see in the grey shaded area, the USD will explode to the upside in the comming months. That means, that with the higher and higher inflation in the US, daily goods become even more expensive, and at the same time, exporting becomes harder and harder.
Now, to stay competitive to the world with exports, the governments usually intervene by manipulating the currency down.
BUT now we face a huge problem:
The FED has printetd money endlessly...billions and billions, and that caused the mess, the inflation. Yes, it's not the Virus, it's the "Cocain" for the gamblers that was printed.
So, what would be necessery to manipulate the USD down? Printing money? But, they should STOP printing money so that the inflation can be tamed. Oh..ough..I think someone is trapped very, very bad.
I have no clue how this kneel could be unwinded without kinda reset, or the hard but efficient way of Paul Volker. It would be equivalent to the very, very bad headache after the furiousest party ever celebrated. (borrowed from Maverick Of Wallstreet on YT).
Oh, yes, you're right: The wealthiest got the party, the headache is for the crowd.
1.20 is the mark so far.
Cheers...
USD DOLLAR suspect bearish for 102#USDDOLLAR, usd dollar monthly key reversal bar made a new high closed off the low. weekly bar 16th-20th May formed two bar reversal for bearishness ahead. 13th May daily bar is a key reversal bar confirmed with next bar down a insurance bar. 104.40-70 supply area for short. stop loss above 105.10 which is 13th May high.
US Dollar Index Futures (DX1!), H1 Potential for Bullish riseType : Bullish Rise
Resistance : 103.960
Pivot: 102.925
Support : 102.240
Preferred Case: On the H1, price is moving above the ichimoku cloud and along the ascending trendline which supports our bullish bias that price will rise from the pivot at 102.925 where the swing low support is to the 1st resistance at 103.960 in line with the swing high resistance, 127.2% fibonacci extension and 100% fibonacci projection
Alternative scenario: Alternatively, price may break pivot structure and drop to the 1st support at 102.240 in line with the overlap support and 78.6% fibonacci projection.
Fundamentals: The CPI is forecast to rise by 0.7 percent from the previous month's 0.3 percent, but this is unlikely to affect the two 50-basis-point rate rises already factored in for June and July. This gives us a weak bullish view for the US Dollar Index Futures.
Bull FlagLong entry level is 102.65 with a confirmed Uptrend. Flags are a neutral pattern until trendline is broken with a confirmed trend in that direction.
Possible stop below a trendline of the flag or where you see support.
Possible target 1 is larger white type. Target 2 in smaller white type if target one is surpassed. If target 2 is passed, Targets 3 in even smaller white type.
RSI is set on 80. The Alligator indicator is tangled which represents consolidation.
Resistance level above price.
No recommendation.
Bites Of Trading Knowledge For New TOP Traders #12 (short read)Bites Of Trading Knowledge For New TOP Traders #12
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What is Hedging? -
Hedging is the action taken through the use of a financial instrument to minimize the loss or risk of the loss of value of an asset due to adverse asset price movements.
Who are Hedgers? -
Hedgers are market participants such as commodity producers who want to lock in selling prices of commodities they produce, or food manufacturers who want to lock in buying prices of raw materials purchased.
Market participants also include financial institutions handling financial assets and use derivative products such as futures to manage the risk of a portfolio of financial assets.
What is the difference between Physically Delivered vs Cash Settled Futures Contracts? -
Physical delivery is a term in a futures contract which requires the actual underlying asset to be “physically delivered” upon the specified delivery date, rather than being traded out with an offsetting contract.
Cash settled futures on the other hand allows for the net cash amount to be paid or received on the settlement date of the futures contract.
Futures exchanges may offer both types of contracts to market participants who have different purposes for trading futures contracts.
RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS -
Common application of financial market instruments for managing risk and opportunities.
Diversification: Correlation in Futures
Investors could allocate a portion of their portfolio to establish a managed futures position to deliver non-correlated results under most market conditions, which may serve as a risk mediator within an overall portfolio. This may deliver lower relative returns during periods of price stability. However, during periods of market stress, managed futures could outperform the broad market.
For example, the Asia Tech 30 index which has no Thai companies as a component stock would not be expected to have any Thai Baht (USDTHB) currency exposure and which could be included in a managed futures portfolio at times where there is no or low correlation between the two markets and could be used as a hedge during times of negative correlation.
Diversification: Portfolio Focused on Asset Returns
Individual investors who have a portfolio of foreign stocks will have a return that is composed of the return of the foreign currency-denominated stock plus the change in currency exchange rates. Therefore, investing abroad means having exposure to two different sources of risk and return made up of the underlying asset and the exchange rate.
For a long-term investor, the focus on return-generating assets may be the priority rather than returns from currency exchange rates. This could imply removing currency risk through a clearly defined hedging strategy process initially and then adding back currency exposure at a later stage if it is determined that currency exposures could improve a portfolio’s return. Investors would need to analyze their expected returns with and without currency exposures and determine their net currency exposure that they would like to remove. U.S. Dollar based portfolios could use futures contracts such as the Mini US Dollar Index ® Futures to hedge a basket of foreign stocks denominated in their respective domestic currencies.
TRADDICTIV · Research Team
--------
Disclaimer:
We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.