Noob Currency Trader: 08/20/18

Monday, August 20, 2018

CryptoCurrency News: China Zheshang Bank Issues Securities Worth $66 Million on Blockchain

One of the largest privately held commercial banks in China has completed the issuance of securities worth $66 million via blockchain.

via CoinDesk

CryptoCurrency News: Tron's BitTorrent Acquisition Triggers String of Employee Exits

At least five BitTorrent employees have left BitTorrent due to disagreements related to its acquisition by Tron founder Justin Sun.

via CoinDesk

CryptoCurrency News: US Government Grants $800K to Blockchain Researchers

Researchers at the University of California–San Diego will receive more than $800,000 to develop a distributed ledger to store scientific data.

via CoinDesk

[FOREX TIP] Trading the Harmonic Patterns Effectively

Chart Pattern Analysis is an important skill to acquire especially if you want to be a serious and profitable trader. While it may seem that other sexier Technical Tools may be more effective, Chart Pattern Analysis remains leaps and bounds ahead because it allows any serious trader to be predictive and to anticipate rather than react to market movement. Basically there are just 2 main types of patterns. We can just safely classify them as Continuation pattern or Reversal Pattern.

Why Are Chart Pattern Analysis Reliable?

In the history of market prices, it’s all about supply vs demand and at times, the market may act with an extreme sentiment and that’s usually down to extreme Fear or greed. Market movements have historically moved only in 3 patterns. Basically the market moves

Up
Down
Sideways

In those movement, we might see a trend, consolidation and perhaps a re-trend or then reversal. This kind of movement is universal in ALL financial instruments. In the sideway movements, Forex pairs will experience a tighter range. And it is this ranging behavior we are able to observe repeating chart patterns.

Trading the Harmonic Patterns Effectively

There have been a lot written on the Harmonic Patterns and the last thing I want to do is to go rambling on the same thing that you can read elsewhere. So let’s not waste anytime here…

In the modern Harmonic Patterns, there is the same 5 point movement that makes the market more predictive. This was the original pattern created by H.M. Gartley. In later years, Larry Pesavento greatly improved the Gartley Patterns by incorporating the ever green Fibonacci ratios to the original Gartley Patterns. And then Scott Carney came along and adding more variation to the already reliable Gartley Patterns and it was when Crab, Bat, Shark, and 5-0, brought the entire Harmonic Pattern to life.

So what started as the Gartley Pattern evolved to what we have today as the Harmonic Pattern with the addition of Crab, Bat, Shark and 5-0. The main concept of Harmonic Patterns is the relationship of time and price movements, which shares the same concept as the Fibonacci Ratio. In case you do not know, the Fibonacci Ratio is a powerful theory that identifies key support and resistance points in the market. While many Fibonacci Experts like to believe that the Ratios work well in any market and any time frame, we personally feel that it works best in higher timeframes.

Examples of Gartley Pattern

To draw a Gartley Pattern, we will need Five Points. While it may look complicated at first, it’s really not…when you connect the 5 price points. These 5 price points are usually the pivot points or turning points in the market.

Bullish Gartley Pattern

The Gartley Pattern should resemble either a “M” or “W”. Usually the M will be the Bullish pattern and the W will be the bearish chart pattern. The Bearish Gartley Pattern usually looks like a W with X as the starting point moving to the pivot turning point of A and a rebound to B. The Bears will push it down to a higher C before the Bulls making one last bullish attempt to D (which has to be lower than X). At D, this is when you and I decide if we want to pull the trigger.

Bearish Gartley Pattern

X is the starting point moving to the high of A. Then the retracement to B and another upward attempt to C before another retracement to D. D is where the trigger will be. An ideal Gartley Pattern should have 5 key pivot points that should include 2 retracement and 2 rebound swings that “coincidentally” coincides with Fibonacci Ratios. The center of the Gartley Pattern is B and the trigger point to buy or sell is D.

Harmonic Pattern Recognition Software

Harmonic Patterns are reliable chart pattern analysis that haven been around for almost 100 years now. This is a time tested trading approach that exploits repeating price patterns. It greatly serves traders who can recognize this chart pattern. However, these charts patterns are not visible to the newer traders. Usually traders with experienced are able to find these Harmonic Patterns consistently.

The Good news is that we now have created Harmonic Patter Recognition software that scans the market across 34 Forex Pairs for the best trading opportunity based on Harmonic Patterns as they happen. And it’s across several different time frames too. Can you imagine the kind of power this Harmonic Pattern Recognition Software provides to the retail traders?

If you think that you can greatly benefit from this Power Scanner, then click here to learn more.

The post Trading the Harmonic Patterns Effectively appeared first on Advanced Forex Strategies.

from Advanced Forex Strategies

CryptoCurrency News: Senior BitConnect Promotor Arrested by Indian Authorities

Former BitConnect India head Divyesh Darji was arrested at Indira Gandhi International Airport in New Delhi on Sunday.

via CoinDesk

CryptoCurrency News: Softbank, Baidu Lead $3 Million Funding for Ex-Googler's Crypto Startup

Atlas Protocol is getting initial backing from Softbank China Capital and BV (Baidu Venture), who are betting on onchain data as a marketing asset.

via CoinDesk

CryptoCurrency News: Crypto Exchanges Join Winklevoss Backed Self-Regulatory Group

Bitstamp, bitFlyer, Bittrex and Gemini launched a self-regulatory organization (SRO) for crypto exchanges on Monday.

via CoinDesk

CryptoCurrency News: Bakkt CEO: Crypto Trading Platform Won't Support Margin Trading

Two weeks after ICE introduced Bakkt, a new digital assets platform, the latter's CEO has set out to explain what the service will offer consumers.

via CoinDesk

CryptoCurrency News: Blockchain Enters 'Trough of Disillusionment' on Gartner's Hype Scale

Interest in blockchain technology is waning, research firm Gartner said in its latest "Hype Cycle for Emerging Technologies" report.

via CoinDesk

CryptoCurrency News: SEC Faces Thursday Deadline for ProShares Bitcoin ETF Decision

The SEC will approve or disapprove a rule change proposal to list the ProShares Bitcoin ETFs sometime this week.

via CoinDesk

CryptoCurrency News: Blockchain Firm to Raise $24 Billion for Electric Bus Upgrades in China

A blockchain and AI technology firm has scored a major deal to help provide the financing as China upgrades its buses to run on electricity.

via CoinDesk

CryptoCurrency News: District Judge Forms Blockchain Law Study Group in South Korea

A group of judges, lawmakers and industry experts in South Korea are forming a new law society to discuss legal issues surrounding blockchain.

via CoinDesk

CryptoCurrency News: Bitcoin's Lightning Network Is Getting Its Own Hacker Camp

Chaincode is launching a new "residency" in New York that will focus on helping developers build their own Lightning Network apps

via CoinDesk

CryptoCurrency News: SBI Holdings Again Invests in Crypto Exchange Under Scrutiny

SBI Holdings is making a new round of investment in a cryptocurrency exchange that's under increased scrutiny from the country's financial regulator.

via CoinDesk

CryptoCurrency News: Bitcoin Awaits Decisive Move as Price Range Tightens

Bitcoin's corrective rally from the recent low of $5,859 would resume on bull pennant breakout.

via CoinDesk

CryptoCurrency News: 21-Year-Old Trader Prosecuted Over Bitcoin Money Laundering

A cryptocurrency dealer is being prosecuted in the U.S. for allegedly committing 30 counts of money laundering involving bitcoin.

via CoinDesk

[FOREX TIP] EURGBP Price Action Analysis – 20th August 2018

EURGBP has been having a Bullish move on the H4 chart. Although the momentum has not been that strong, the price has kept making higher highs. Today’s first two H4 candles came out as corrective candles. There is a potential level of Support very nearby. If that level is held and it produces an H4 Bullish Engulfing Candle, then an H1 breakout at last Friday’s higher high would lead the price towards the North later today. Let us have a look at the H4 EURGBP chart.

EURGBP Price Action Analysis – 20th August 2018

The level of 0.89590 has the potential to be the level of Support here. Today’s price has been held by this level so far. Now it might be the time for the H4 chart to produce an H4 Bullish Engulfing Candle from the level. If we get an H1 breakout afterwards, then the price would go towards the level of 0.90050 without having that many pauses. Let us have a look at the summary of the trade…

Buy Stop Order: 0.89765
Stop Loss: 0.89590
Take Profit: 0.90050
Validity: 72 hours
Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable

It seems a good beginning to start this week. I say this because not too many pairs have started this week with “Gap”. We often see that Monday starts with huge Gap on many pairs. For the price action traders, it is a bummer. It gets tough; in fact impossible to read an intraday chart when it starts with a gap. When it occurs, we must wait to get a clearer picture of the price action.