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Sunday, April 9, 2017

[FOREX TIP] AUDCAD Free Forex Trading Signals – 10th April 2017

AUDCAD has been bearish on the H4 chart. The price has been making lower lows. The price is on consolidation. If we see a breakout, then selling the pair would get us green pips. Let us have a look at the H4 chart of AUDCAD…

 

AUDCAD Free Forex Trading Signals – 10th April 2017

As we see that, the pair has been bearish from 1.02400. It came down up to 1.00230. Then, the pair is on consolidation. The level of 1.00630 has been the level of resistance. We have had a bearish H4 candle already from that level. If we get an H1 break at 1.00230, then the pair would go towards the South. There is enough room for the pair to go and make new lower lows.

Let us have a look at the summary of the trade

  • Sell Stop Order: 1.00230
  • Stop Loss Level: 1.00630
  • Take Profit Target: 0.99850

Here we are actually waiting for a breakout at 1.00000. This is a “Big round number”. In the Forex market, “Big round number” plays an important role. Traders set their Stop loss or Take profit by keeping this in mind. Thus, it is not an easy thing to get a breakout at a “Big round number”. However, if a breakout does happen, it normally is a big breakout. Let us assume that we get the breakout and make profit on it as per our trade setup. However, one thing we have to make sure here that the breakout is a solid breakout without any sort of confusion.

You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.

We hope that you enjoy our Free Forex Trading Signal today: AUDCAD Free Forex Trading Signals – 10th April 2017

The post AUDCAD Free Forex Trading Signals – 10th April 2017 appeared first on Advanced Forex Strategies.



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[FOREX NEWS] AUD/USD trading at the lowest since January – is it about to plunge?

The Australian dollar started the week extending the trend that it experienced in the previous one. And that trend is to the downside. AUD/USD is trading at 0.7490, under the round level of 0.75. The trough so far has been 0.7478. The pair last traded at these levels back on January 17th, when it was enjoying [...]

The post AUD/USD trading at the lowest since January – is it about to plunge? appeared first on Forex Crunch.



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[FOREX TIP] Trading Forex with Indicators – Forex Moving Averages

Trading forex with indicators is a little like joining dots and making money when a few lines cross. Simple, straightforward and very transparent, Forex moving averages are the most widely used and arguably the best, forex indicators. These popular indicators are used in conjunction with forex candlesticks to gauge the direction of a current trend, be it up or down. If you have a good idea of which way the market is going, you have a good chance of profits.

Forex Moving Averages

Forex moving averages are the perfect way to start your forex trading career and winning pips. Currency trading strategy (note: not strategies) because it can be used as a stand-alone trading system. With so many methods around it is easy to get lost in the crowd, lose focus and get distracted, the reason so many fail at forex trading. Get the basics right and the rest will follow. Find what works, duplicate the success then refine, repeat and grow.

Why Use Forex Moving Averages?

Forex moving averages fall into the ‘technical analysis’ banner or forex charting. At school, I asked a teacher if the exam was hard. He said “No it’s easy…If you know the answers.” Once you have an idea of how a chart works it won’t take long to familiarize yourself with a chart and know exactly what’s going on. The forex moving averages are plotted over a very simple forex candlestick chart and help you identify trends, the direction the market is likely to move so you can pick the most profitable entry and exit points. Trading forex with indicators is about picking the most likely trades to profit. You earn your forex pips by knowing the best times to enter and exit, all determined by these very simple averages.

So, what are Moving Averages?

The two most popular (or arguably best forex indicators) are the ‘Simple Moving Average’ and ‘Exponential Moving Average’. Your forex charting software will work out the averages, understanding the key difference will help you in choosing the right indicator for your trading personality.

Simple Moving Averages (SMA):

Once you break the phrase down, you’ll be kicking yourself at how easy it is to understand. Forex traders generally work with a favorite time period, from 1 hour to several days. Say you are working on an hourly basis and you want to plot an 8 point chart. You collect the last 8 closing points (i.e. one for each hour you have traded), add them together and divide by 8. That gives you the average. Some would call this the mean. Now the ‘moving’ part. This means that the average is calculated on a rolling basis. It’s easier to explain with this example:

Yesterday: 1 2 3 4 5 6 7 8

Today: 2 3 4 5 6 7 8 9

Tomorrow: 3 4 5 6 7 8 9 10

Yesterday’s SMA was an average of the price points 1 – 8. Today we have a new price point 9. We are working on an 8 point period so we calculate today’s average using the prices 2 – 9 and lose 1. Tomorrow we have another point (10) so we have to lose point 2 is we are using an 8-period moving average. A typical forex price chart can look very erratic and forex candlesticks can obscure the pattern further. The moving average gives a smoothed graph that is plotted on top of the forex chart, alongside the Japanese candlesticks.

It is worth noting, you can use any time periods you like, for example, a 5 hour or 200 days. The greater the period used, the greater the smoothing. There are advantages and disadvantages to this. Most traders will use a combination of forex moving averages before opening or close a trade. Since we are using historical data, it is worth noting that moving averages are ‘lag indicators’ and follow the actual period the greater the responsiveness of the graph and the close it is to the actual price line.

Exponential Moving Averages (EMA):

An exponential moving average is a variation of the simple moving average. An SMA gives each price point the same weighting. If you are working on an 8 period SMA it would assume that the 1st price and the 8th price were equally important. Most Forex Traders give extra weight to recent prices, they are more concerned with the now. Using the same example above, the 8th price point would be more important than the 1st. By given it ‘more weight’ the Exponential Forex Moving Average line is more responsive to price changes. This means you can identify trading opportunities quicker and act faster. The downside is that you are subject to false alarms if you act too quickly.

Traders generally favor using the exponential moving averages to get their forex (fx) pips. Focused on getting pips, currency trading strategy will generally give greater importance (or weight) to recent prices. It is worth using both alongside each other to start with to find what works best for you (or perhaps a combination of both using different periods). Like the SMA, these are also lag indicators. Trading with forex indicators can be quickly and easily picked up and put into action. With as little as 10 minutes per day, you can check a price chart, plot your forex moving averages and decide if today is a profitable day to trade.

Remember it’s not about how often you trade; it’s about how profitable you trade.

 

 

The post Trading Forex with Indicators – Forex Moving Averages appeared first on Advanced Forex Strategies.



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[FOREX TIP] AUDUSD Weekly Forex Forecast – 10th to 14th April 2017

AUDUSD Weekly Forex Forecast – 10th to 14th April 2017

The AUDUSD technical pattern looks very weak and we should see more weakness. The weekly close below the big psychological figure 0.7500 can be an indication the AUDUSD is headed much lower. A break below the March low 0.7490 will extend the downside move. The first level of support comes in at 0.7400 from where we can expect again a bounce towards 0.7500. The stochastic indicator is in oversold territory which warns that we might see early in the week a bounce before the downside to prevail. On the upside, we can expect to find some kind of resistance at 0.7540.

The Australian economic calendar is full with risk events that can distort the market volatility. Wednesday we have as a proxy risk even the Chinese CPI inflation figures which can pose a threat to the AUDUSD exchange rate. Thursday we have the Australian Unemployment figure which is expected to come flat at 5.9%. Next on the line is the Chinese Trade balance which is expected to post a 76 billion in surplus.

Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast – 10th to 14th April 2017

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[FOREX TIP] USDCAD Weekly Forex Forecast – 10th to 14th April 2017

USDCAD Weekly Forex Forecast – 10th to 14th April 2017

The USDCAD technical pattern is making higher highs and higher lows which support the bullish view. The USDCAD sell offs are quickly bought and we might see another attempt to challenge the big psychological number 1.3500. The stochastic indicator is also moving higher which encourages us to believe we can even see a false breakout above the March high 1.3533 before any real correction to be seen.

We also have a busy Canadian economic calendar. Wednesday we have the BOC interest rate decision which is expected to hold monetary policy on hold and keep rates at 0.5%. The rate decision is followed by BOC press conference which will give traders more clues into what to expect on future rate decisions. On Friday we have the Good Friday holiday and all big financial centers will be close and the market liquidity will be subdued.

Previous USDCAD Weekly Forex Forecast

USDCAD Weekly Forex Forecast – 10th to 14th April 2017

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[FOREX TIP] GBPUSD Weekly Forex Forecast – 10th to 14th April 2017

GBPUSD Weekly Forex Forecast – 10th to 14th April 2017

The GBPUSD price action is trapped in what seems to be a consolidating market. As long as we can’t post a weekly close above the big psychological number 1.2500 we should expect further ranging activity. The first level of support comes in at 1.2350 from where we can see a bounce. On the upside, we only have as significant resistance level the 1.2500 figure, while a break above will expose the March high 1.2615. The stochastic indicator is already in oversold territory and a bounce is due sooner rather than later. The worse than expected NFP figures have failed to inspire dollar weakness, but coming week we can see a different story.

The UK economic calendar will bring some notable risk events. Tuesday we have the CPI inflation figures and based on the market consensus we should see a jump in the inflation expectation figures due to the lower pound exchange rate. While on Wednesday we have the UK Employment figures which we need to keep a close eye on. As a proxy risk event we have Janet Yellen speech on Monday which is due to speak at the University of Michigan. Audience questions expected.

Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast – 10th to 14th April 2017

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[FOREX TIP] Weekly Forex News Events for EURUSD – 10th to 14th April 2017

Weekly Forex News Events for EURUSD – 10th to 14th April 2017

EURUSD had another bearish week. This Forex pair was expected to have a volatile week because of scheduled news events in the last week. It really was. Friday’s NFP made the pair move with huge volatility. However, the next week would not be as volatile as it was in the last week. Nevertheless, we need to be careful about some news events in the next week. Let us have a look at the schedule of those news events.

Monday-10th April 2017

  • Fed Chair Yellen speaks

This is a high impact news event. Look at the timing of the news event. Traders normally take their entries by using short time frames around this time. Thus, they should be careful about this news event and make sure that they take their entries after the impact of the speech.

Wednesday-12th April 2017

  • Crude oil Inventories

This news event is going to create some volatility. Intra-day traders should use this news event as an opportunity. Any opened Intra-day positions befor this news event should be dealt with caution.

Thursday-13th April 2017

  • PPI m/m
  • Unemployment Claims

Both of them are high impact news events. However, Unemployment Claims data usually creates huge volatility as far as Intra-day charts are concerned. This week’s forecast number is 142K. On an average, the number of claim has been 145K for the last 4/5 weeks. Thus, this number might hurt the USD. If it really does, then EURUSD pair might get volatile. Traders should keep their eyes on this news event to find their opportunity after the news event.

Friday-14th April 2017

  • CPI m/m
  • Core CPI m/m
  • Core retail sales m/m
  • Retail sales m/m

These news events could create huge volatility on EURUSD. Since they are going to take place when the market is about to close for the week, so traders should make a plan to exit from their intra-day positions before these news events.

The post Weekly Forex News Events for EURUSD – 10th to 14th April 2017 appeared first on Advanced Forex Strategies.



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