European Markets Start the Week Upward

European equity markets start the week up as  the US and China are making progress in their negotiations, said US Treasury Secretary Steven Mnuchin. Furthermore, European stock markets moved higher at the start of the session, taking advantage of the latest encouraging signs on the evolution of Sino-US trade negotiations and the global economic situation. The Empire State manufacturing indicator rebounded stronger than expected on Monday. A trade agreement thus appears very close between the first two world economic powers.

In addition, companies have generally delivered better than expected results since the start of the earnings season, but forecasts remain mixed, like IBM or Netflix.

Investors are on the lookout for any signal that confirms the recovery in March or on the contrary would strengthen the fear of recession.

Investors will be watching the US corporate earnings season, including Citigroup and Goldman Sachs on Monday.In Europe, a series of important economic indicators is expected this week with the PMI culminating Thursday. On Tuesday, the main European economic meetings are the British job market (10:30) and the Zew index of economic sentiment in Germany (11am). In the United States, the session will be punctuated by the figures of industrial production (15:15), a Robert Kaplan speech of the Fed (20h) and the results of companies: Bank of America, Blackrock, J & J and United Health before the opening as well as Netflix and IBM after closing.

The rise of the euro to more than $ 1.17 does not benefit metals in the commodities market. Brent’s barrel also sank at $ 71 after hitting a high since early November at nearly $ 72.

Optimizing MACD-Stochastic Setting to Boost Your Profit

The Moving Average Convergence Divergence (MACD) is a fundamentally flawless tools/indicator and extremely basic to identify changes in determining the support-resistance. Aside from this, MACD additionally perceived as less flawless considering the lagging reaction. This is the motivation behind why a significant number of traders include different instruments in their framework to tune up their gains. One tool that usually included is Stochastic oscillator (SO). By joining both SO and MACD, it is feasible for someone to acquire better decision making a supportive system that is progressively proficient, dependable and presenting a few difficulties to elucidate.

 

The system underneath is disclosing how to join MACD and Stochastic to enable your trading gains to a higher level:

 

The MA Convergence Divergence (MACD) Setting

The MACD is an indicator/tool that consists of two moving lines that measure the currency pair price momentum. The momentum itself is clarified as the elements of support (it doesn’t mind in the event that you don’t get it. Our goal is to get the setting, right?). The two bends are actually lines delineating exponential MA (the default setting is 12 and 26 sessions). Their gaps as well as the cross of two lines—primary and signal—can foresee changes in course of support-resistance. The momentum begins when the gap between the two bends is expanding, as it were the energy increments and affirms the trend/pattern. At the point when the bends shrink and afterward cross one another, the force is decreased and a change of trend is suggested.

To make it simpler to peruse these errors, it is conceivable to utilize an outline that appears as a solitary line: the MACD oscillator. It communicates the contrasts between two main-signal lines by subtracting the 26-last-candlestick MA to 12-last-candlestick MA. This is usually called convergence-divergence. The 9- last-candlestick EMA is sometimes included as flag line, and each time the oscillator line crosses over that 9-period EMA, it is considered as long position. For selling position, it works vice versa.

 

The Stochastic Oscillator (SO) Setting

SO is an indicator/tool that analyzes the price of a determined time to its pattern (high-low price) over various periods. It has been viewed as evidence that in case of an uptrend, the closing is close to their highest price, while on a downtrend, it close for the most part nearer to their lowest. A signal is given at whatever point %K of the SO crosses %D—a moving average of three periods of %K.

Definitely, the formula takes the form of a curve, framed by two limits. The upper limit—commonly used level is—80% or more above this, the price is believed as overbought and therefore likely falling. In an inverse way as to a lower limit, 20% and beneath, currency price looks attentively oversold and so is likely to climb up.

 

Using MACD-SO Double-Crossover to Maximize Your Profit
A bullish-starting MACD corresponds to a bend that goes above the mid-line (usually depicted as green histograms) and a bullish-starting SO is the point at which the %K goes over the %D (blue part of the graph—this color might be different among platforms). The mix of the two tools/indicators, in other words, the “Double-Crossover” strategy is a powerful tool of price raising. In addition, for the downtrend, the rule goes in the opposite way. The perfect timing for opening position is when the histogram of MACD passes the mid-line a bit after the Stochastic. This can be considered an affirmation. Otherwise, it is a high opportunity to the move to create a bogus caution.
This Double-Crossover procedure allows people to improve a better market/order position even when in trending or reversal situation. Nonetheless, traders need to find a blend of times to consider. The MACD dependably give a late flag contrasted with stochastic. Once, it acts as confirmation of stochastic while in other time traders might be late to enter the market. Especially when the sideways condition happens.

Feeling Trading, Trade Your Feeling, Feel Your Profit

Starting today I will upload articles about predictions of currency movements. Each article contains predictions based on technical readings of certain currencies. Each article will be included in the “Feeling Trading” series.

Maybe people will ask a lot, why am I trading based on a feeling? Previously I need to emphasize here that what I say with feeling trading is actually not really doing currency buying/selling transactions based solely on feeling. Instead, I use several technical indicators to analyze and make decisions.

What indicators do I use to analyze currency movements before I trade? The first and foremost is the stochastic oscillator. I am a big fan of the stochastic indicator, the indicator found by Dr. George Lane in the late of 1950s. This indicator, in my opinion, is a very reliable indicator and can be used to determine the limit of price movements in a trend. In fact, with a few proper modifications, this indicator can be used to determine entry and exit positions in both short, medium and long trends.

The second indicator that I use is the Moving Average. Indeed, this indicator should be the first indicator that must be added to my list. This indicator can show us the current trend. For traders who like to follow the trend, this indicator is very useful. However, because it is always late in following price movements, I put this indicator in the second number on my list. I use this indicator solely to see what the trend is happening now. However, as a retail trader with not too large equity, the best for us is not to fight the current trend.

The third indicator that I have never left in each of my trades is Fibonacci Retracement. After the Stochastic Oscillator, this is my number two favorite indicator. I get many benefits when determining which price points I should use as an entry position and profit target. (Note: I never use Stop Loss. Sounds absurd, yes to some traders? But next time I will explain why I don’t like using SL). Fibonacci retracement is known for its effectiveness in determining price support and resistance levels on a trend.

The last indicator I use is the Camarilla Pivot and Support / Resistance. This indicator is a cost indicator that is not a default indicator — which is included with the MetaTrader installation. This indicator is just an additional indicator. I added this indicator after some time using (only) three other indicators that I explained earlier. Camarilla Pivot (I call it so to shorten), I only use it to recognize extreme support and resistance levels which are sometimes difficult to estimate by using a Fibonacci retracement – especially when prices move very wide and exceed the daily range of the currency.

In the end, this is actually not merely trading with feeling like gambling. Conversely, this is technical trading which is also not merely technical as a robot. This is technical trading that uses certain considerations so that any indications that are read on the graph do not necessarily translate raw.

How is the performance? So far so good in my opinion. With an income of no less than 2% every day, it feels enough to support me and my family. Greetings!

Why Daily Forex Trading is Favorable?

When novices get into forex trading business, they likely to think that it is easy to make maximum profits by spending a minimum amount of time. However, these type of trader quickly become chart/market obsessed and spend a notably large amount of time watching for price fluctuations, thus—in some case—leaving their family and professional lives behind. We will see in this article how to manage your business while maintaining a normal life and free time. Please note this presumable advice, it is better to get off the market more than losing your beautiful life instead.

For those who are beginners of this foreign exchange (forex) market, it is advisable to always stick to far longer-term charts such as daily or even weekly. Even if this category of trading is not reserved for beginners, it suits them better because it allows continuing one’s personal activities and at the same time to keep their “me time” as well.

The advantages of daily chart trading compared to the shorter time frame is explained in follows:

  • Less volatile and Easy to be Analysed. By keeping daily or weekly charts with your trading activities you will avoid sudden fluctuations in intra-day charts and be able to predict the market trend far more accurately.
  • Keep Your Life Healthy Psychologically. A trader who based on daily and weekly charts allows themselves to keep their current lifestyle. Indeed, you only have to look at the charts once a day—especially at the end of the day (even you can switch it any time that suit your schedule) to place your entry order and to manage your investments. By this means, no necessities to keep your nose glued to the computer screen.
  • Once in a while set up, and “everything” will be okay. By adopting the daily trading method, new-bee can still keep their jobs and thus maintain a normal life. Indeed, thanks to it that you place your orders once a day and then continue whatever activities you will do next. There is indeed no reason to monitor the market all day long—only checked it once in a while if you like—if you have correctly placed your “take profit” and “stop loss” orders.
  • Once again, Simple and Easy. Last advantage of daily trading method is because of its simplicity and ease. Indeed, these kind of charts are much more reasonable than very fast intra-day charts especially when you have not mastered your trading system out of your head. Traders can, indeed, take a longer time to think before embarking on the entry of transaction or leaving the market.

In the nutshell, the daily or weekly trading method is ideal for a beginner since it allows you to practice trading activities without becoming a real “geek” who does not let go of his control screens. An ideal practice in short to maintain a personal and professional life.

Is Trading Using a Smartphone Preferable?

You might get advertisements from brokers where they provide a platform that works well on smartphones. Yet, does trading from a smartphone really make you closer to profits throughout the day? Or vice versa, this method will only make you sink with the inevitable losses?

Here’s our view as a market player who has been playing for a long time, both by using a personal computer (PC) as well as a smartphone. The article below may become additional information thus you will easily consider whether it’s necessary to install a trading platform to your smartphone.

First Thing to Consider: Freedom of use a.k.a Flexibility

Trading in your hand, that’s the jargon that is usually used by brokers to attract you. That’s right, you will find it easier to make transactions on the trading market simply with the application at your fingertips. There is no need to look for a power outlet for your laptop, or internet for your connection. You might just have to do a few touches on your mobile screen and your transaction is executed.

For flexibility, of course, trading using a smartphone is much better than a notebook or PC.

The Second: Screen Dimensions

For some people, it is rather difficult to do an analysis from smartphone screens that tend to be narrow. It is not easy to read numbers or interpret lines formed by indicators. In addition, in our experience, the screen ratio is also very influential on the appearance of the trading platform. You may not believe it, but we have experienced that the angle and slope of the line tend to be different between the screen of the smartphone and PC.

For our business, we tend to choose a PC or notebook screen. However, the wider the screen will make it easier for us to read. Notebook / PC wins in this matter.

Last but not Least: Features

It must be admitted that the development of the trading platform on smartphones is not as sophisticated and up-to-date as its compatriots in Windows-based or Apple-based computers. Lots of features are trimmed or intentionally not to be developed for the Android or IOS platforms. Of course, this is also related to the hardware that has different capabilities and performance.

For fans of the custom indicators, it will be difficult to implement their strategies on the smartphone screen. Conversely, for those who only base their trading system on the default indicator of the application, it is certainly not a big problem.

Regarding the third thing, we prefer to give a plus on a computer-based platform.

Conclusion

In the nutshell, for those of you who really do not need a lot of supporting features and are more concerned with the speed of execution, the choice of trading using an Android or IOS based platform is certainly an attractive choice. However, for those of you who like details and various supporting features, we recommend that you stay on a computer-based platform.

The rest, keep in mind that the longer you are exposed to charts and markets, the greater the risk of losing your money. For this, we still recommend … as far as possible avoid excessive trading.

The Euro Weighs on the Trend – Keeping Position to Maximize Profit

European equity markets are falling early in the session as the euro continues to rise to more than $ 1.20 in the aftermath of the European Central Bank meeting. Mario Draghi vaguely mentioned a slowdown in asset purchases, which was enough to boost the growth of the single currency.

In addition, European stock markets are picking up on their momentum at the start of the yesterday session, investors are still rather confident as the US Congress and the White House have reached an agreement to raise the US federal debt ceiling for three months. This makes continuation of positive sentiment to Eurozone.

China, book and boreholes

At the economic level, China’s foreign trade figures for August were mixed. Imports jumped 13.3% but exports slowed significantly with 5.5% growth. The pound sterling rose slightly as manufacturing output grew 0.5% in July in the UK, better than expected. On the other side of the Atlantic, investors will pay close attention to the monthly report on employment in Canada (2.30 pm), a speech by a member of the US Federal Reserve (2:45 pm), inventories of wholesalers in the United States (4 pm) and the weekly evolution of the number of oil drilling in North America (19h).

Reference rates down

In the bond markets, benchmark rates continue to decline. The yield on the 10-year Bund returned 0.3% for the first time since June. In the United States, the 10-year Treasury yields only 2.02%, the lowest since the election victory of Donald Trump last November.

EUR-JPY is Facing Correction Stage, Waiting for Next Signal of Buying Stance

EUR-JPY, in general, has entered a mature trend area, even for certain times it is already in an overbought condition. The short-term trend is bullish. It can be said that the conditions for holding back buy must be taken seriously.

But don’t rush to sell. See also analysis for longer-term trends. For your information, the medium-term trend is neutral, according to our internal technical team. Even though it seems that the stochastic is over-bought, the MACI is over-bought, please remember that the area above level 80 means a strong bullish trend as well.

We see that consolidation conditions are taking place. This means that there may be a correction, but we see that the corrections that occur are limited. Short-term players may be interested in releasing some of their positions as profit-taking actions. You can also buy short to quote a few pips, but we tend to think that the trend will still rise again.

The conclusion we can take, we will still hold long positions for a few moments and see if there will be another resistance break-out. Since the breakout of 122.75, the EUR-JPY currency pair was evolving in a relatively neutral short-term trend, but the recent rise in the Euro currency pairs has allowed the currency pair to reach the target of the medium-term trend that has become bullish recently. In the case of a break-up, the trend and turnaround could be confirmed.

Our suggestion is to watch if the RSI line can break 70 level line trough from above. If it doesn’t so, then buying stance is confirmed. Remember as well that Stoch-osc sometimes stays above 80 level for several days meaning that strong bullish condition is taking place.

Resistance: 127.54
Next resistance: 136.00

Gold is Signaling Buy (wait on Short Sell) in Uptrend Market

Our analysis of the 4H Gold chart shows that there is still a chance of an expanding long term trend (uptrend). Despite of that possibility, in the short term it appears that there is a tendency for prices to fall.

A reading of the Stochastic Oscillator marker demonstrates a decent quality among purchase and sell. Stoch-Os is starting to rise again in the lower part of the indicator windows. The same thing is indicated by the RSI indicator. The line is touching the lower level and make a move above. This is also confirmed by the MACD indicator which indicates that the signal is still in neutral condition. Even the histogram is still below the zero level, it is not quite far from the level and remember that the leght of the histogram is shorter from some periods before.

In our conclusion, overall Gold is trending up, and the previous breakout of 1261.80 has been confirmed as this level is now support. Despite a new high point of short-term trend, the return of the ounce of gold on this support sends a possible neutralization of the global trend. However, a bearish break in this support could signal a downward trend.

buy-gold-14-jun-2017

Gold expected to rise after short fallThis is a kind of tricky situation when thader should always aware. Our advice for trading Gold, traders should be cautious about the limited decline in gold prices. Given the possibility of a trend price increase, we recommend a TP that is not too large. Open buy position when it start to rise near the support level.

Support: $ 1261.80

Next support: $ 1246

Tight Range Due to the Lack of High-impact Sentiment

Friday is regarded by currency traders as the reversal day. It is often that market gone to sideways on on Friday. Quite a lot of events on the trading floor happened today (24/3), but few are expected to have a significant impact on prices. We will not see much movement in the market due to the lack of high-impact sentiment. For traders with character scalper, this would be a distinct advantage. Conversely, for the “news trader” this day is a day when they are virtually deserted. See all events happened today in the figure below. And the trading signal will follow in the next section.

Free Forex Signal
For traders who need it, I gave the signal for free to you (the effective trading time on Monday (3/24/2017) at 09.00 until Tuesday (7/25/2017) morning at 03.00 GMT + 7):

GBP/USD
Buy Stop : 1.2524
Sell Stop : 1.2475
EUR/USD
Buy Stop : 1.0792
Sell Stop : 1.0761
AUD/USD
Buy Stop : 0.7653
Sell Stop : 0.7621
USD/CHF
Buy Stop : 0.9960
Sell Stop : 0.9926

 

UPDATE 12:00 pm: The movement of GBP / USD at 1-hour chart is seen to be in a correction phase. The scenario is if the area around 1.24637 – 1.24890 confirms a buy signal is found, then it can open up the possibility of GBP / USD moved up to the range of 1.25047 – 1.25300. Be careful if it turns GBP / USD manages to break support at 1.24637 because it could potentially push the GBP / USD dropped to the range of 1.24480 – 1.24227.

New Zealand’s Trade Balance, February 2017

New Zealand’s Trade Balance, February 2017

Thursday (March 23, 2017) The market floor is quite busy today. There are many events that happened today which gives a considerable impact to the market. Some news events are worth waiting for, among others, the Official Cash Rate (NZD), RBNZ Rate Statement (NZD), Retail Sales m / m (GBP), Unemployment Claims (USD), Fed Chair Yellen Speaks (USD).

Above news release is considered a factor driving the market is quite strong. In addition to such news, some news that should be considered is the MPC Member Broadbent Speaks (GBP), Long Term Refinancing Operation (EUR), New Home Sales (USD) Speaks FOMC Member Kashkari (USD).

This country relies on the results of agricultural products and processed food for export, while its imports are limited to energy, machinery, textiles and plastics. The NZ main trading partners are Australia, China, US, European and Japan. The income from the results of international trade is very important for the economy of New Zealand.

This indicator measures the amount of the total value of imports minus exports in a period of one month compared to the similar period in the previous year (year over year or y / y). On the off chance that all out fares volume is more prominent than all out imports esteem, the exchange balance has an excess, and the other way around on the off chance that the estimation of all out imports is more prominent than fares, at that point exchange encounters a shortfall. An exchange surplus will expand the interest for the NZD money.

New Zealand’s trade in January again experienced a deficit of NZD 284.72 million (y / y), far lower than the forecast that the deficit of NZD 3.00 million and also lower than December’s deficit of NZD 36.22 million. In January 2017 y / y exports rose 0.3% to NZD 3.91 billion due to increased sales of dairy and butter products, while imports y / y rose 8.0% to NZD 4.19 billion.

For February 2017, it is estimated that New Zealand’s trade will be a surplus of NZD 160.00 million. A higher than expected surplus number will tend to cause NZD to strengthen.

 

GBP/USD

Buy Stop : 1.2491

Sell Stop : 1.2466

 

EUR/USD

Buy Stop : 1.0803

Sell Stop : 1.0775

 

AUD/USD

Buy Stop : 0.7686

Sell Stop : 0.7650

 

USD/CHF

Buy Stop : 0.9940

Sell Stop : 0.9908