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Sep 23 2010
Friday, September 17, 2010
MIDDAY UPDATE
ELLIOTT WAVE PRINCIPLE COUNT
Using my
Elliott Wave Blog fundamentals can give us an edge on predicting future movement of the financial markets.
The Dow continued to follow the EWP forecast with a strong thrust from the triangle. The overnight session saw the futures really soar higher, I'm sure raising some concern for the bears. But although thrusts from triangles are very strong and sharp moves which we saw in overnight trading, they are also completely reversed to at least the apex of the triangle rather quickly which is what we saw early this morning in the US session. The structure in the Dow is no different. The only problem here for the bears is that since reaching the near the apex of its triangle it has failed to continue lower. A break below wave a of the triangle at 10,526 would be a really good sign that the top is in.
The setup here is nice if today's highs can remain intact. The triangle and resultant thrust higher and reversal lends itself to a top being in right now. As long as today's highs remain intact we can say with confidence that a top is in place that could be quite significant when we get to next week. If today's highs are broken, it means wave v of C of (ii) is subdividing higher. But that still shouldn't last long or go much higher from current levels anyway.
Yesterday I mentioned that the S&P Small Cap index made a slight new low but that it was unconfirmed by the Russell 2000 small cap index. I suggested that it can be viewed as bullish in some cases since there was a non-confirmation in place. But I argued that within the current context of the market at this time, I felt the S&P Small Cap was actually leading the market lower, and the break to a new low all by itself was actually a bearish sign. Well today the Russell 2000 also made a slight new low, confirming the S&P Small Cap index's new low yesterday. So as long as their highs on the week remain intact, this could be a fairly bearish development the market is signaling to us very quietly.
And to follow up on the stochastics "wedge" I mentioned yesterday, you can see on the hoursly stochastics chart that the wedging continued on the hourly Dow chart but has recently turned down to attempt to break out of the wedge formation. The S&P stochastics, are even more bearish as they've been trending down with lower highs for the past several hours.
And lastly, on the S&P 4hr chart you can see the MACD "squeeze" is on. The moving averages are about to cross down and it's causing the histogram (in blue bars) in the middle of the indicator to get squeezed. This suggests that the larger timeframes are now trying to turn down as well. And even though prices remain elevated and we've had several higher closes this week, momentum indicators are continuing to drag down.
I'm a bit disappointed in today's action in that I thought it would be a bit more eventful. I'm not sure we'll get any big swooshing move to the downside today, but if today's highs can hold into the weekend, it would still be a very good sign going into early next week for the bears. So if nothing today, we just have to wait...
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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Sep 23 2010
Each and every month there are more than five hundred Economic news announcements coming out of a diversity of nations. Yet just a select few are worth watching and trading, because no more than a choice few move the currency market with any consistency. In addition to that being aware of how to decipher the data is a ability that will likely on your own takes years to learn. By years of studying other pro forex trading strategies, in addition to developing my personal forex trading techniques, I at this time observe and forex trade the major
forex market news in a real-time fx fx trade room where I call real-time fx trades.
Day trading major live forex news events in this market can be one of the most worthwhile varieties of day trading. In addition to that, it merely takes a extremely insignificant quantity of time. The forex market is able to move greater than a hundred pips in seconds! A lot of forex traders simply stay away from the forex market news releases because of that increase in volume, and without a forex education in day trading major economic news releases I would advocate doing the same! Nevertheless, with the proper forex day trading education, trading
live forex news can be very rewarding. In addition to that you gain a more in depth comprehension of every countries current financial condition.
Well how will it work a person may inquire? For every forex news announcement, also known as an economic indicator there is an expectation or prediction of the forex market news. When the real fx news deviates or is different from expectations the forex market moves fast to regulate for that surprise. Huge surprises in the actual figure are able to even create trends that continue for days or longer. Now each indicator has its personal level of importance and with a countries existing monetary situation that intensity of magnitude can adjust and this is something I discuss in the live forex trading room as well. Above all day trading forex news opens up another avenue for making earnings in the forex marketplace. It also allows people with limited time schedules to be able to know when there is a possible news trade going to happen, and therefore are able to plan around scheduled live fx news events.
If you are searching for a new avenue of day trading the fx market or purely just getting interested in this market, live forex news trading in our
forex day trading room is a wonderful place to learn. In addition to that I additionally run day trading sessions from 1:30-4:00AM Est as well as 7:30-10:00AM Eastern where I also instruct my day trading strategies in addition to call out my precise entries and exits within the live market. This is not merely a live forex room where live forex day trades will be called, rather it is your full blown real-time forex tutoring room. If you are fascinated in day trading the news or trading short term strategies in general then take our ten day trial to our live forex room and join us!
Sep 23 2010
There are numerous strategies to profit inside the foreign currency. A lot of traders love to take advantage of essential evaluation. These currency exchange traders favor to think about
essential fundamentals inside the currency forex market and deal inside the guidance how the essential fundamentals manage to lead. Even so many other traders opt to make use of technical evaluation. Individuals who opt to do business with this method usually work with particular technical signs for example the the MACD, Relative Strength Indicator (RSI), and also many other oscillators. Even though I'm a supporter of both ways of thinking I have to confess that I have a preference for
fx hedging. Let us take yet another check into this kind of section of trading with regards to the currency market trading.
If you’ve been trading in foreign currency exchange market for this while you're possibly knowledgeable about the word hedging, in case you are not familiar with this keyword then it is advisable to look at its as a method where to lessen your risk within trading. It doesn't matter what your trading technique is it is usually significant as a Trader to know the numerous methods for hedging the currency exchange.
There are numerous strategies to hedge your trades but that may be beyond the range of the post. Just remember if you hedge your trades then it comes with an upside or a downside to it. If you're looking to reduce your risk by hedging than you may not stand to lose approximately other traders may. But, you have to pay for your brokerage service cost for each and every trade and when the sum of pips are irrelevant than it may not assist you over time. My great recommendation is always to look for a technique for trading which works for you and do not ever, in no way use a real income til you have first paper traded your system.
If you are included in foreign currency hedging and/or using other ways of thinking based on this market, you should possess a good bit of Currency trading application available to you. It is suggested that you buy Currency trading application providing you with consistent and reliable trading information.
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Sep 22 2010
Forex News Trading, or Fundamental News Trading, is a primary driver of currency forex market movements. Forex market is driven by high-impact news events, by understanding how to take advantage of such events, you'll be able to enhance your profitability and avoid many costly mistakes. Many novice day traders arrive at a rude awakening realizing the benefit regarding news events only having seen a wonderfully profitable trade transform into a big loss in a matter of seconds, whereas experienced traders amplify their daily profits in a very consistent manner, almost like clockwork… (as a matter of fact, most high-impact news releases are scheduled simultaneously every month, so yes, like clockwork.)
Forex News Trading, to put it succinctly, is actually gaining from market volatility in the event of a surprise. Nearly all high impact news events have aForecast, or Consensus Number, and that is usually the average number based on a survey of economists, usually made by news agencies such as Reuters or Bloomberg. This Forecast number, represents the market overall is expecting the Actual release to be; therefore, in the event theActual Release turns out to be different than the Forecast, we've got a surprise in the market… Since Forex trading is actually Futures Trading of currencies, market speculators will price inside the surprise immediately toward the surprise, and build a possibility for traders to make some pips.
News Surprise Factor, Deviation
So that they can trade these news events successfully and profitably, traders must give attention to high-impact news releases with good probability of A) Moving the Market and B) Predictable Reaction .
Moving the Market: Because there are literally hundreds of news events scheduled round the calendar month, it is very important trade the high impact ones which are in all likelihood to move the market. Don't spend your time on ALL news events since they might or may not move the market, and since Forex market is sometimes sentiment driven, lesser news reports probably won't have enough effects to counter the predominant pre-market trend.
Predicatable Reaction: Primarily based on historical reaction, high impact news events will normally go a certain amount of pips (or points) if the surprise difference from the consensus number to the actual release is by a certain deviation. As an example, if the UK Retail Sales Consensus is at .5% and we are looking for a Deviation of .6%, we’ll BUY GBP/USD if we get a 1.1% release and SELL GBP/USD if we get a -.1% release.
Therefore, as Fundamental
Forex Traders, we always select the proper news releases to trade, wait for the right deviation, and for the appropriate amount of pips in profit.
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Sep 22 2010
There's a widespread misconception in the CFD industry that commission rates on DMA CFDs are higher than on their Market Made cousins, in this informative article we will dispel this myth and help you understand the differences between Direct Market Access (DMA) and Market Made CFDs and why this is a popular fallacy amongst traders and investors.
If you're a CFD trader you'll likely already know that there are two kinds of CFDs, DMA and Market Made, the primary difference being that when buying and selling using a DMA CFD provider your orders flow directly into the underlying market whereas when using the Market Made type your orders are accepted at the discretion of the CFD broker and may not always flow onto the market. Most Market Makers essentially run a book aggregating all of their client’s positions and hedging any resultant outstanding amounts.
The general misconception of pricing has occurred due to the fact that DMA CFD providers incur a fee to hedge their trades. Many people think that due to this additional hedging cost DMA CFDs are more costly to trade, however this is not the situation. With the advent of electronic order routing DMA execution costs have decreased significantly. DMA cost reductions have been largely due to providers competing for market share and the rebates provided by the exchanges to high turnover market participants. With DMA Costs down to 1bps or less it is not surprising that many CFD market makers are nowadays also offering DMA CFDs and hedging risk on their market made book more often.
The eventual beneficiaries of lower hedging fees are the end clients of the CFD provider. As hedging cost decrease your DMA CFD broker is able to pass on these cost reductions to their clients, meaning that today retail traders are able to day trade and scalp DMA CFDs relatively cheaply.
With no real difference in commission charges between buying and selling
DMA CFDs or trading Market Made CFDs it is not surprising that DMA CFDs are gaining in popularity amongst retail traders and professional investors alike. Some
DMA CFD providers are even offering commission rates that are less than those offered by their market made cousins, pioneering a path for the new wave of CFD trader.
Of course you should at all times remember that there are advantages and drawbacks of both
CFD varieties, it is important to decide which variety is more suitable to your style of investing. You should also remember that buying and selling CFDs can be risky if you do not use proper money management techniques to manage your risk. You can find numerous articles on money management on line, it is always recommended to read these guides before trading CFDs.
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