The Trump administration seemed to have a cuddly relation with Canada while bashing Mexico on trade. This has probably changed. According to reports, the Trump administration is set to announce a retroactive tax on lumber. President Donald Trump said that Canada treated the US unfairly and took advantage. He recently complained about the mistreatment of Wisconsin’s dairy [...]
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EURNZD had a huge adjustment to start the week. Yesterday the price produced an ideal Pinbar Daily candle. Moreover, today’s price action has been bullish so far. By looking at the H1 chart, it seems that the chart would offer long entry with excellent risk and reward ratio. Let us have a look at the H1 chart of EURNZD….
As we see on the chart, that the price had an adjustment. Yesterday’s initial movement was bearish. However, the price then went up and ended up by producing a Daily Pin bar candle. Today, we had some solid bullish H1 candles. The game plan to trade on this chart would be, we wait for the price to make new higher high first (I assume it would be around 1.55750). Then, the price should make some correction. If we get a 15 M breakout at today’s higher high after the correction, then we buy the pair.
Let us have a look at the summary of the trade
The recommended pattern is an ABC pattern. We need to make sure that we take the entry after corrections. The price would have the good enough liquidity to move fast towards the North once we get the breakout. However, if the pace of the price movement is slow, do not lose patience. Be with the trade and wait for the price to go all the way to the recommended Take profit level.
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: EURNZD Free Forex Trading Signals – 25th April 2017
The post EURNZD Free Forex Trading Signals – 25th April 2017 appeared first on Advanced Forex Strategies.
Buy Low and Sell High Using Range Trading Forex Strategy
Range trading is a simple strategy that can be used on almost any financial product although this article is mainly directed to currency pair trading. Range trading is pretty much just as is sounds, find the range that a product regularly trades in, buy low sell high in the case of a long order and sell high buy back low with a short order.
The indicators below will be very helpful when figuring out when to buy and sell in your range keeping in mind that the price dictates where the indicators move, not the other way around. You may find it easier and more comfortable to trade a product that you are somewhat familiar with like your home currency. Staying close to home will also keep your trading costs down and likely allow for more leverage.
Stochastic Oscillator (5, 3, 3)
The Stochastic Oscillator compares the price at which a security closed relative to the range of the price over a certain period of time using two lines. The first of the two lines is called %K representing closing price and the second %D represents a moving average of the closing price. The oscillator has a full range from 0 to 100. Leaving values set by default will be fine, but you should edit the indicator and set an upper level of 80 and a lower level of 20. When the oscillator goes over the level of 80, it is considered to be overbought. It is considered oversold when dropping below the level of 20. Generally, values will increase as the 80 level is breached and continue to rally while above this level. The oscillator leaving the overbought area and dropping back below the 80 level is an indication that the price may have reached a ceiling and start to fall. The same concept holds true for when the oscillator drops below the 20 level into the oversold area which represents a declining value. A return above the 20 level suggests that the price may start to increase.
Relative Strength Index (RSI) and divergence
The Relative Strength Index is an oscillator that follows the value of the financial product being traded. The RSI oscillator has a full range from 0 to 100. It will most likely have a default 14 day period which is fine, but the indicator should be edited to include an upper level of 70 and a lower level of 30. When the RSI oscillator goes above the 70 level, it is overbought. It is oversold when dropping below the 30 level. A level of more than 70 may have a continued rally until the level turns downward and returns below 70 suggesting a possible end to the rally. A level of less than 30 may have a continued decline until the level rises and goes back above 30 suggesting a possible bottom.
A divergence occurs when and new high or low in price is not also a new high or low in the Stochastic Oscillator and/or Relative Strength Index. Value of the financial product may have a correction and follow in the direction of the RSI. To make this indication of a coming price drop stronger, look for the RSI level to drop below the level of the closest valley or low level. Divergence in CCI is much the same in that a new high price is not expressed as a new high level in the CCI suggesting a coming price correction.
ADX and Commodity Channel Index Indicator
The Commodity Channel Index is a measurement of the amount of deviation between the current price of the financial product and the average price. This oscillator does not have a full range but is centered on a value of 0. When setting up CCI, the indicator needs to be edited to show a high level of +100 and a low level of -100. Between these two levels is a channel with 0 at the center representing the average price. A high level of CCI, which would be considered to be anything above +100, means that the current price is high as compared to the average price for the product. A low level of CCI being anything below the level of -100 would be stating that the current price is low as compared to the average price.
This trend indicator is based on a 14 day period comparing two direction indicators, the positive direction indicator (+DI) and the negative direction indicator (-DI). The Average Directional Movement Index shows the strength of price movement while the positive direction indicator (+DI) and the negative direction indicator (-DI) show the direction of price movement.
While it is possible to trade on technical analysis alone, it is really only half of the story. A great deal of the fluctuation in value that you are tracking with the technical analysis was caused by the release of information, reports and statistics relevant to your product and the countries involved. Economic news releases from the relevant statistics agencies from your country are essential to making good profits in currency pair trading just as financial reports and news updates are crucial to trading public company stocks. All statistics agencies have release calendars for important upcoming reports. For currency pairs, economic reports on GDP, trade balance, unemployment and income are a few critical reports that affect prices greatly. Find the agencies that release key economic numbers relevant to your product, bookmark them and be waiting anxiously minutes before their release. Find the analysts’ projections or forecasts on what the numbers should be before they are released. If the real numbers are better than the analysts forecast then prices will increase immediately, just as they will decrease if expectations are not met as real numbers are released.
Consider using a practice account for any new trading strategies before risking your money. Foreign exchange products are highly leveraged and often very volatile. Never invest money that you cannot afford to lose!
The post Buy Low and Sell High Using Range Trading Forex Strategy appeared first on Advanced Forex Strategies.
Pollsters are not resting after their success with predicting the results of the first round of the French presidential elections. Both the average of opinion polls and the exit polls foresaw the results of the first four candidates in an amazing accuracy. Daily opinion polls show a clear picture: Emmanuel Macron will be the next [...]
The post French elections: polls show Macron at 60-61% over Le Pen appeared first on Forex Crunch.
Germany’s No. 1 Think-tank was expected to show a minuscule advance in business confidence: 112.5 points in April after 112.3 in March. The Expectations component was predicted to tick up from 105.7 to 106 and the Current Assessment measure was projected to slide from 119.3 to 119.2. EUR/USD was trading just under 1.0850 ahead of the [...]
The post German IFO Business Climate beats with 112.9 appeared first on Forex Crunch.
EUR/USD is trading at 1.08037 in the morning after Macron topped the first round of the French elections. The mainstream candidate is expected to beat extreme-right Le Pen in the second round by a wide margin. The initial reaction was a leap in EUR/USD, which reached a 5-month high and traded around 1.0930 at one point. [...]
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