Tuesday, May 31, 2016

U.S Dollar Index Future l Forex Technical Outlook

Dollar Index Outlook and Direction for the month of June2016

Previously:- Dollar Index Future Long Term View

U.S Dollar Index broader outlook, which would cover major currencies like Pound, Euro,Usd/Cad and Usd/jpy

Gbp/usd Intraday Bias of Gbp/usd remains neutral to bearish as today's price seems strong enough for the bias to turn short term bearish and I am watching for a breach of 1.4450 support for a move towards 1.4331.

Speaking of direction in Gbp/usd, which is in strong downtrend on weekly and monthly time-frames but seems to recover well on daily and shorter time frames, but It could turnout to be a small correction of higher time frames.

As I have mention in the chart that price has Fakeout previous two highs and went straight in to supply and that high prove to be vital to cap the bull rally (which seems to be strong enough) as there was a serious buyers trap just above the previous high and today's price action has covered all the buy stops and that minor rally to 1.4650 turned out to be the biggest of buyer's trap pound has offer just recently. I have witness such Price Action in Pound in recent months and those trap rallies really pick momentum going into big impact release like ECB policy decision, as Further stimulus package announce by Mr. Draghi can really put panic in usd bears, so strong rallies can be seen by U.S dollar bulls .

Previously Reason of recent Gold Futures Prices short ralliy

Technical Outlook For the Pound

I will cover the outlook of the Major currencies covered under U.S Dollar Index for the Month of June 2016. Direction outlook for the pound has turned bearish again but I need further Confirmation of the trend as I am still waiting for the lows of 1.4450 to be breached for a move towards possible 1.4045.

You can expect choppy or sideways Price Action for couple of sessions, but still my sell order would remain intact till the weekend and we have still three more days till the market close on Friday and have enough room for the order to click and If things goes right we can surely sees one or couple of the Target get achieved, bearing in mind the volatility to pick up due to high impact release to be scheduled during weekend.

Gbp/usd pending sell stop @1.4450 stops 1.4510
Tg First 1.4310
Tg second 1.4215
Tg Third 1.4090

Eur/USD outlook for the short to medium term is neutral to bearish as We have seen the pair has rejected once again from the highs and has not stopped yet and I would wait and watch If price tests the 1.1060 area in the coming days .

Speaking of direction of Eur/usd, Pair has compressed to the top and recent rejection from the overall supply look strong but recent support around 1.1050-90 area, seems to be holding the pair for too long, but it is understood when High impact release like ECB policy decision is scheduled to be released on Thursday, and Market wanted the view of Mr. Draghi if he is dovish about more stimulus and Gdp forecast for the remaining of the year, would certainly move the pair and there won't be any choppiness for sure.

How to use Open Interest beyond swings on Chart

I prepare this video specially for the newbies and this video is must to watch and part of our Forex Trading Course For beginners, and covers how to use open interest beyond the ultimate swings specially when strong trend reverses immediately.

Recent Rise in U.S Dollar Index and fall in Silver Prices are quite similar to the video mentioned below which has cover most part of my trading techniques, which I used over the years and have edge over other fellow traders.
If I got enough requests then I would post my recent trade of Silver Futures, which I use in the following recommended manner and short Silver Future around 17.75 and my target is 15.60 area.


Trade Watch Pair Gbp/usd


Trade Update Stop out at break even Price went in favor for around 70 pips, but rally strongly after NFP released.

Monday, May 30, 2016

U.S Dollar Index-- DXY long Term View

U.S Dollar Index-- long Term View Sentiment Bullish

The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,and it is the most traded currency against all other currencies because USDX is also termed as International Currency and often used as reserves by countries

Usd Dollar Index Weighted Value against other Major Currencies

It is a weighted geometric mean of the dollar's value relative to other select currencies:
*Euro (EUR), 57.6% weight
*Japanese yen (JPY) 13.6% weight
*Pound sterling (GBP), 11.9% weight
*Canadian dollar (CAD), 9.1% weight
*Swedish krona (SEK), 4.2% weight
*Swiss franc (CHF) 3.6% weight

U.S Dollar Index is made up of 6 Currencies, (eventually 24 because 19 of the European Countries who have adopted Euro as their common currency) plus the other major countries like Japan, Sweden, Switzerland and Great Britain and their common currencies.

As mentioned in the above Example with the 19 countries, euro has make up a big chunk of U.S Dollar Index(57.6%), and the next is Japanese yen which is not a big surprise as Japan (13.6%)is also one of the biggest Economies of the world and rest 30% weight of U.S Dollar Index is shared by other four.

One thing that we must kept in mind that you don't need extra skills to trade U.S Dollar Index as You just need to look at sentiment, swings and opportunity to time your trade and If you are having problem accessing situations then U.S Dollar Index can surely give you idea about the direction and things to come and hence you can avoid choppy Market situations. U.S Dollar Index is directly related with U.S GDP and long term bank policy decisions.

Federation Chairman Mr. Ben Bernanke, Apply Quantitative easing or extended stimulus after 2008 Market Crash, For Few years and hence it really stem the U.S Dollar again its counterpart to strengthen economy and print money to put that money in to economy and offer employment opportunities and stimulus package to buy back negative yield bonds and hence strengthening banks and provide them more liquidity or funds to run bank system smoothly.

There are also some interesting facts that when Euro moves, which really moves US dollar index because Euro covers the most portion of USDX, and because USDX is so heavily influenced by the euro, traders have looked to trade Euro as the highest portion of the Currency Volume throughout globally.

How we can use US Index In Trading Currencies

I hope you have got the slightest Idea, "How you can use US Index in your trading?"

If not, you will soon get an idea, as we all know that most of the widely traded currency pairs include the U.S Dollar. IF you still wandering then U.S Dollar based Currencies are Eur/Usd, Gbp/Usd, Usd/jpy, Usd/Chf and Aud/Usd, Usd/Cad

Well, hold your trigger finger and you’ll soon find out! We all know that most of the widely traded currency pairs include the U.S. dollar. If you don’t know, some that include the U.S. dollar are EUR/USD, GBP/USD, USD/CHF, USD/JPY, and USD/CAD.

So, In broader terms If you trade any of these pairs, the U.S index move and if you dont, the US Index will still give you an idea of how weak or strong the U.S Index around the world. In fact, when the market sentiment of U.S dollar is unclear, U.S Index provides you better picture.

As we all know US Index comprised of more than 50% of weighted value of Euro, Euro/Usd chart can be exactly inverse of U.S Dollar Index.

Technical Analyze of USD/jpy

U.S dollar is on the Radar Since there have been talks of Fed Rate Hike and it has picked up since the first rate hike in the last December and hence I always recommend staying long instead of just waiting for things to happen or most of the moves have been finished when the action is performed.

US dollar future to dominate pound exchange rate in coming futureI would like prices of pound sterling to remain in long bearish mode and it could even turn out to be best run of Us dollar future against single currency of U.K. also referred as british pound.

US dollar update 4th October 2016.

US dollar bulls very cautious ahead of NFP data I have seen lot of bull rallies of US dollar fake about the recent range and I would like to see this failure again and would look to see the reaction at the low of range again.

Sunday, May 29, 2016

Trading Gold Futures Contracts

Weekly Outlook for Gold Futures Gold Futures

What does Gold Futures contract means

Gold Future contract is a legally binding agreement for delivery of gold in the future at a agree-upon price. These type of Gold Futures contracts are standardized by Gold Futures exchange as to quantity, quality, time and place of delivery i.e physical delivery will be with the difference between the Gold Future price at the time of contract and actual price at the time of delivery.

Market Participants facilitate trading without Physical delivery of Gold Futures

Market participants or hedgers use these type of contracts as a way to manage their purchase or sale of physical with providing speculators or investors with an opportunity to participate in the markets and trade Gold Futures without any physical backing, but only with agreed upon the price with a difference of opening and closing of a trade of Gold Futures.

Why Gold Futures or any Other Precious Metals Futures

There are few aspects that need to be cover and one of them is that Precious metals Gold Futures or Silver Futures are traded over centralized exchanges and because of the centralized exchanges, Gold or silver futures offers more financial leverage, flexibility and financial integrity than trading Gold Futures with the contracts. Let me emphasis on the point more that Financial leverage is the ability to trade and manage the high market value product like Gold Futures with a fraction of total value. Trading Futures contracts is done with performance margin. It requires considerably less capital that the physical market and because there is high leverage used in Currency Market and it provides speculators a higher risk/high return investment.

Bias of Gold Futures Remains on the downside-Technical outlook for the week May30-June3

Weekly outlook for Gold Futures as We can expect bit of choppy sessions in this week due to two huge release scheduled at the weekend and i.e ECB policy decisions and NFP data. We can see risk falling through if there is any unexpected policy decisions being made by ECB bank officials and followed by Big change in participation rate in coming event of NFP data which is scheduled to released this Friday and the last NFP report before then next FED meet scheduled to release later this month. Any change in Unemployment rate up or down would certainly put risk at glance and drive Gold Future prices with volatility.


Gold Futures

:: sell Gold Futures @1212 with stops around 1229.
::First Target 1200
::Second Target 1182

I always advice setting two pending orders and expiry is 48 hours. Close one order around 1200 and trail the rest around 1216 with risking 16 points to make another 16


Trade watch Gold Futures

After First Target was reached and profits were booked, waiting for the second target and stop out at break even of the second lot.

EMA Trading Strategy 200 EMA 50 EMA cross over l Built powerful system with EMA Crossover Strategy

Forex Trading Strategies-EMA Trading Strategy

One of the famous strategy that everybody should be aware of trading currency or any trading market is EMA trading strategy which is also know as "Moving Average Strategy", and the rules are simple when a particular period of EMA (Exponential Moving Average), cross other EMA of set period then we trade the cross in the direction of the price and we need to have some strict money management rules to trade any strategy and same rules applies to EMA trading strategy as well.

EMA trading system setup or Moving Average Crossover system

As we all know that every mechanical system is lagging but If we look in to the scenarios and apply few filters and look for overall sentiment then we can make any system as powerful as it can be and there are strict Forex Money Management rules that we need to follow while trading crossover.

Look at the following chart for example.

Forex trading systems

This is the Euro Dollar Chart of 20th June 2016, in which price is in strong bullish momentum after recent fall from the top but manage to cross the EMA period (35,20),and upward slope is solid and resistance turned out support is holding and that is what we should be looking to trade EMA Crossover strategy, in which price should test after cross and atleast make a new high in last 5 days, and today we saw a big opening up gap and price is looking to fill the gap and meantime testing the EMA as well, and If we see after testing Candle manage to close above the open and we set a pending buy limit 10 pips above the last candle high prices and set the stop 10 pips below the lower low of the signal candle, but make sure momentum does not fade out too much as there should not too much sideways movement after price has rallied high or even while price testing the EMA or support whatever suits the scenario.

Filters to be used in EMA Trading Strategy

***Price should make a new 5 days High and crossover should be strong

***Entry Should always be made at retest

***Price should never goes sideways after making a new 5 day high or while retesting EMA or Support or Resistance

***Entry Candle after retesting EMA or support or resistance should close above its open.

***Entry should be +/-10 pips above or below the low of Signal Candle and same rules stops should always be +/-10 pips of the same candle.

***Strict Forex Money Management Rules are the key to this cross over system and Risk to Reward should always be 1:2 or 1:3

Another Example of EMA Cross over strategy Gbp/jpy 20th June 2016

EMa strategy

We are here looking for another short setup in gbp/jpy which has managed to break below strong support zone and it also was the multi year low and we are still bearish to the pair till we get a strong weekly bullish candle signals the change in momentum.

However, we now need to see the chart if it fulfill all the necessary requirement that we mentioned in the above checklist as this went straight into the resistance and could be another trap if price manage to trade below the indecision candle.

200 Period EMA filters the Noise
Ema trading system, trend trading

Here is One EMA (200) period, which is used to filter the noise as it is the most used EMA world wide to see the slop of the trend up or down and IF 200 period EMA is flat, then there are lot of sideway movement can be expected, and one more thing I would like to mention here that in case of sudden reversals in overall large dominate trends, up or down price use to test 200 period EMA and use to reverse again after testing down the EMA.

There are numerous filters used with EMA throughout the world with success and one of the widely use filter is trendline and slope of EMA and trendline most probably filter the noise from the chart as it can only happens in strong trend, and trader use to target exotic pairs to trade EMA as usually they require less time to watch too many market data and spend tons of hours for setups. One thing is sure that there is no trend building up without Ema Crossover, but we have to decide which crossover we should use and what combinations we should use to make the system more powerful and hence worth using and making the system work for you in the long run.

Trade EMA with high low, ranges and breakouts and retests

EMA 200 Strategy,EMA Crossover system

The above Chart of Loonie tell us the power of 200 EMA cross over and we have to look for the slope and If it is too strong slop and we have ranges above or below, then we can have the idea while price reach and expect to react at EMA 200 period. EMA 200 is so powerful and IF you have knowledge and practice of low high, ranges and breakouts with support and resistance, then low risk entries can prove to be very strong risk reward opportunity.

In first case we have almost 2 months range, which make a new high and rejection from there made a strong base at 200 period EMA, as price went into tight channel while it test the EMA. And after price Rejects from 200 period EMA, it rallied. We can have the same scenario facing up in the next setup where we have tight ranges and rejection and price went into channel to test 200 period EMA and rejection from there price resume the trend and we can have large range or we can see large bearish trend resume from here and it could be very good opportunity IF we place the stops above the second rejection which was at S/R flip as well.

How we can use EMA 20,50,200 with Bollinger bands and Other indicators Step to step guidlines on how we can use EMA's of different value for day trading and for swing trading with the help of different indicators like RSI,Bollinger bands and Stochastic oscillator.

Here in this forex market there are several powerful trading system based on several indicators but ema forex trading strategy is vastly used and is included in almost every Forex strategy. If you are good at controlling risk and have patience to wait for entries on higher time frames then it is the nest way to use ema to filter trend and wait retest of ema and specially if it is a confluence or any fibonacci number or strong demand areas.

How to choose best Forex Trading Strategies l Forex Secrets

Forex Trading Strategies- Beginners Forex Trading Course

Over years, there are millions of Forex Trading Strategies have been invented and used successfully and best part is that without caring about what the fundamental impact would be over the coming days, those strategies give results in longer terms, and this is the best part of trading with Technical Analysis that You don't care what impact news would have and how much movement it is possible, but still there is lot of noise and selection of time frames filter the noise and whenever you choose any system or mechanical method to predict the future price, You need to have the complete knowledge of every time-frame from monthly to five minute chart as it will clear most of the doubts creeping out of your mind. However, with time retail traders develop the different methods of predicting the future price and they use it to predict any market currency, future, metal or energy.

In this section I would probably discuss the best methods to predict the Future price of any currency pair, but it should be completely tested over time and targets to make the best use of any system as it will enable you to understand drawbacks and sentiment which works best for the system you use. .

Most Famous and best strategies to Trade Forex

***EMA Trading Strategy

EMA trading Strategy is most simple and famous and the best choice for comers to predict the market movement and It is probably the first one to tell you that pullback is over and Trend is about to resume. yes, this is the best way to trade EMA that You look out for pullbacks rather than looking for reversals. Take a look at EMA trading Strategy

***Fibonacci strategy to predict market movement

Fibonacci method has been used by bunch of traders and professionals that are using Elliott wave to predict the future price and pattern of five impulsive and three corrective waves provide lot of accuracy and early warning to call the bottom and top, but this post is not about Elliot wave as I have easiest way to use Fibonacci with combination of RSI to give you best strategy to trade trend and with the strategy, You can never miss an early entry to multi-week trend and with only 20-30 pips of stops. Check how you can use Fibonacci Method to improve Trading Results.

Friday, May 27, 2016

Can we really make a living out of Forex

Currency trading for a living or as full time Job

Hi,Its been quite a choppy price Action again through the week due to lack of high impact news and it never works for a trader to plan any trading activity when there is lack of participation from a group of traders whether bulls or bears. Forex Trading is somewhat different from Stock Trading and you need to learn different price Action Techniques which you use in stock trading to make living out of Forex. Definitely, there are immense opportunities, but need to remain selective in your approach while Trading Forex and make it work for you and make a living out of Forex Trading.

Forex for a living, Forex Secrets

Things you must need to know If you want to make a living out of Forex

First question that comes to mind of every trader who want to make a living out of Forex is How much capital do he/she needs to invest to make a substantial profit and rely on Forex to make a living. It is really important to know that amount of capital a trader can invest can totally rate their ability to make a living from trading. In fact, capital plays a vital role in making decision and large capital can offer great returns. A trader's skills to access size when condition does suits the style one adopt is really separates a skilled trader from other novice or amateur trader.

Also Read:-- My Best Trade Recommendations


How to Rate a Forex Trader Performance

Trust of the fact is that Trader's performance is dependent on various factors. One of the main factor that a trader who want to trade Forex for a living is the control and the ability to analyze market, but what does we do as a beginner is to invest small capital and dream of making millions in short span of time. So, where does a trader look to rely on circumstances which are unlikely to occur, whether one accumulate profits and compound it over time, still you have to use leverage to take unnecessary risks to build their account in short time or pressure of making a definite amount If you rely on Forex For a living and they dream of making 10 times or even double their accounts in a month or two .

Forex Leverage a double edge sword

Leverage is one tool which offers high reward couple with high risk as well. So, If you don't learn the technique of money management correctly, the benefits of leverage won't really work for you at all. Leverage does allow a trader to take large positions but leverage is not dealt with the care that it should be. On an average day trader look to make 10-20 pips a day on $1000 account and try to make $2000 quickly, may work for a shorter period, but in long run one should learn to adopt few rules and learn to build their account slowly if one want to make a living out of Forex. As the account grows the trader may be able to make a living off the trading, but attempting to make a living off a small account will surely more likely result in increased risks, excessive use of leverage would more often resulted in excessive losses.

Trade Setups and Trade Diary for the Next Week
Trading for living

I would cover more points in the coming weeks and months which would clear all the thoughts of preparing yourself If you want to make a living out of Forex and post of the articles to tell whether You can really rely on Forex for living.

Tuesday, May 24, 2016

Pound is still bullish of all the major Currencies True Trend

How to find trending Currencies pairs

Its been quite sessions all the way this week amid lack of participation of strong holders, but Pound dollar is exception to the as it is trading with clear swings up and down. I found this pair to found some hurdles ahead of 1.4610-25 area, but when it is clear we certainly keep an eye on 1.4661. Chart explains that pound certainly found some bulk orders at previous area of demand and supply zones and it often happens when a pair like "Sterling", can't hold it too much in choppy market conditions and there is always happening something that really can fuel bulls and bears to participate.

Also read :--- How to make a living out of Trading

Entry long was offered at 1.4485 low with minimum risk and hence it was well worthy to test 1.4600, hence I got in and out early because bit of downside rally to test can be seen and if 1.4661 is cleared then it would clear the hurdle to clear the supply and higher prices can be seen.

Clean set of orders in bullish market

I always enjoy clear swings and set of demand and supply to make me feel that how much risk can be taken to see if price manage to test the high of supply and that's why I always watch 95% of the time and take action only 5% of time and I really enjoy such trades which falls for true demand and supply with complete new set of orders and Cash flow at the start of sessions, specially if it is one of the active sessions.

Also watch:- How I was sure of Rise in Gbp/usd

Sunday, May 22, 2016

Trading supply and demand approach and Reaction at Crucial tests

Trading price actions tests of sell-off and reaction Price action techniques

It has been a treat to keep updating the blogs and thanks for the requests at youtube channels and also in emails . This post is all about how we manage to trade higher time frames tests and approach. As you all know Price is Fractal and We all look for historical monthly and weekly charts to better analyze our trade entries and look for better areas to put our stops and maximize our profit targets. But Indeed, If you every know what is market is about to do or react you don't really need to use stops at all or even few pips even at higher time frames because market set pending orders during test at pin point levels and It could be psychological tests barrier like 50,00 or it could be at strong supply tests.

It is a fact that during the free fall or news price did not manage to collect all the orders that it need so that is why sometime we see facts that market recover in seconds when news is released and price start to cover.

What happen in such Cases, Price recovered and test the origin of the fall and see If market reacts to it or If price has engulf the crucial support or demand we do really see a reaction when it gets to the origin of the move.


I was asked same question several times about one of my video post at youtube channel and It has really forced me to come up with a solution which is easily understood and help you manage and decide your trades accordingly.

Some pairs rise after consumption of supply immediately and fall after there is no buyers left and all the demand buckets gets filled or you have seen enough evidence of Distribution Phase or few traps after the completion of distribution phase. As these levels are easy to spot when a uptrend collapse and hints us the end of phase.

But Currency trading is somewhat different from Stocks and Indexes as there are trends does seems to stay there forever till they are finally signs of reversal seen on monthly and higher time frames and the above example is just a an small example that long term downtrend is about to resume and it can also called "redistribution", and in the example shown above is simple approach of supply and rejection and rise to "QM level", when price engulfs the demand and approach the supply again.

Then what you need to do while see such scenario set pending orders and set stops because market is going to test the next decision point if found pending orders on those areas.

Thursday, May 19, 2016

How to separate Frustration and Emotions from your trading.

Frustration often is result of Expectations

We all learn several techniques as a Trader, even we use same in stock, commodity and Forex or Future market, and those strategies have been used by traders since the inception of Trading, but why then they have been so successful and why we are not and the shocking answer is Frustration which brings emotions in trading that really destroy every mindset or change it for a while. Frustration can really of several type as not understanding the market price action or poorly time trade without knowing the result or reward of that trade making mistakes which could easily be avoided. Reason of raising this matter is the case that has happened to me just recently where I was stopped twice of my pound sterling trade and succeed only once but that does not patter. IF we buy and sell at the same place then It really frustrate your mind as all those several years spend in trading can really be of no use.

Pound bulls attack 1.4661 Crucial Turning pont

Forex Currency Trading Turning Points

Situation has completely changed in Pound dollar after I post yesterday that pound will look or a decline from 14580 but It has mange to break it with ease and manage to go close 1.4661 which is clear defining point between bulls and bears. But I would put on my bet on the bull side for a ride towards 1.5035, no matter what happens to Fed and BOE.



Could be the case of buy stops and sell stops stack orders

IF you watch the chart posted carefully above, then you can probably see that If price has managed to give sellers and buyers both any chance to dominate and When It is the case price is trying to consume all the supply to buy at best of the price, and If that is the case then price probably will become volatile and all the bulls and new cash flow will be punched into the market.

Wednesday, May 18, 2016

Pound Rise due to Brexit postive Report but headwinds Ahead of FOMC

Financial Market Traps Brexit Report Releases ahead of FOMC

We saw pound sideways movement through this Month of May after expecting Price to move ahead but it got trap in ranges till Today Brexit Poll Report shows Remain leads to 55/45, really pumps Pound bulls and pound Rise to as more than 150 pips from the daily lows and "Do We need to use our brains to know the Situation that why that move happened ahead of FOMC Report", may be We don't really are too serious about the unexpected even but that is seen on chart. Price Was due to bounce from lows and create new high and let trader guessing ahead of FOMC report.

If market manage to gather or pick all the buy orders in that move which took place after the Release of Employment and Earning Index From Britain, then this could be a biggest trap ahead of FOMC meeting. I can see a Trap waiting and FOMC Report has to be published with 6 hours from now, but Really maintain and staying above that breakout will really put lot of doubt in traders mind that consolidation breakout is looking quite bullish and positive data supporting that move and there is no chance of reversal. But You need to stay ahead and see who is in control, Bears can dominate and take the benefit of squeezing all buy orders and sell at the best price.

Trade pound dollar employment and earning data

Buy orders squeeze in Gbp Ahead of FOMC Report

> This Article might change the way you approach forex market completely. I will update the Article before the release of FOMC report to let you take benefit of this report.

Saturday, May 14, 2016

How to select Currency Pairs to trade Trending Or Sideways

Best Trending Currency Pairs

Since I have start trading Forex, It took me while to understand which pairs should I line up for the next week. So, I decided to target News calendar for that Purpose and see which Currency Pair has high impact releases to be Scheduled next week and then I decided to take with the trend entries only and upcoming reports should match with trend entry. But that did not work for me in the long run as I struggle to find out the reason why currency pairs reverse even after strong data in favor. Strong Release does move pairs but If that release brings risk aversion, then It can reverse totally, but Chart should be decisive enough for us to make crucial decision at such events.

Well, It is quite clear that only few major pairs dominate the market volume as it is prime choice of bunch of traders, and every strategy you built in may not suit every currency pair, because few currency pairs offer strong movements and volatility, they still might not be best one to trade at particular scenarios, specially at the time of release. Australian Dollar, Canadian Dollar, Eurodollar, Pound dollar and Dollar Yen are prefferrable choice for every trader to look for their profits but still there might be few correlated pairs that you can use to hedge positions but still You does need to see enough reason to trade the rest of the currency pairs that offer movement and are trending as well.

There are so many factors that influence the movement of a Currency Pairs event after positive data release that should offer strength and good enough to buy but still it moves lower and trade has to be close due to loss. Its a trader's responsibility to track which currency pair is dominating e.g Dollar has been dominate against pound since last year or so and When You expect couple of news can drive sterling higher or reverse the trade, then You should built several strategy that offer entries in trending market.

Let's be more decisive with the chart to clear Doubts raising in your mind

best currency pairs to trade

Pound Policy Statement and Inflation Report

These two reports were the highlights of previous week as Pound was moving sideways for extended period in expectation of this release and as You see in daily chart pair has already reverse and that bearish movement was quite significant and one should always look for short entries If trend start to reverse of a new high.

Let’s take the above scenario from another perspective:-

There is another perspective that You can take it from above example as you expect British pound to increase in Value, so you want to buy pound. But instead of just look to buy pound against the dollar, you search for the most suited pair to do it with. And after bit of search you find that Australian dollar has been the extremely weaker of all the currency pairs, and you decide that you will buy Strong Pound against Weak Australian Dollar and this works well If you would have been able to do that because it was weakest pair of all on that day.

That's How I find Trending Currency Pairs with Logic and timing


buying the weakest currency

In the example above, you might have get the idea How banks target different currency pairs at different scenarios and How just a big of understanding of the logic and overall context can offer you sense to buy best currency pairs in the trending market even with weak reports which is unexpected scenario but still quite profitable one if you manage to use bit of research and choose optimal currency pair.

Friday, May 13, 2016

How to trade confidently in any global or domestic Market.

How to trade with confidence in any Market

Hi, readers, As I have stated in my previous articles that Trading Price Action is all about confidence, but Price Action does involve lot of logic and sense and it is never about doing what we are not suppose to do and by that I means taking choppy market into consideration and letting a loss run expecting that price will come back to your entry again and in expectation drag your too far and get loss more than you first anticipate and that what we all suppose to do what We never or ever should be doing.

trade forex with Confidence

Trading with psychological edge should be our first motive and that really put you far from the hurdle who trade for just profit and don't consider why a high probability setups is something we all have to look for rather than high frequency of volume which increases the chances of losses more than chance of winning. Volumes never brings profit as there is always a risk of giving back the profit your earn when you try too much out of Thin Market and specially when trading is So thin like this week and We must observe what price action should do after breakouts in such thin trading sessions.


Euro dollar technical

How I manage to Read the context in Price Action


I thought about taking few Price Action setups of Euro dollar several times this week, but really Price Action did not allow me to do so and hence I drop the Idea of taking any setup and watch if market offers any trap and failed breakout, and today I find out that breakout yesterday was a false trap and another trendline rejection would allow me lot less risky entry than I think of it at first sight, and that is how price action behave after the rejection top which was the base of the selling and because of the fact market compressed to decision point, there was good chance of rejection at trendline as most traders would set pending buy orders at trendlines and that was no exception and Price make a new low today and a setup which initially have few doubts but nothing after rejection as I made my mind to sell at close of rejecting Candle.


Also Read:- Watch How I Recommend Selling Euro After weak US Employment Data

So,a setup which was looking like breakout of choppy conditions again failed and market was free to fall after the rejection as chances of bounce were very often in such cases and risk was minimal to zero as We never look to drag the trade and set small stops and look to close when market find a new low with momentum.

Thursday, May 05, 2016

Euro Trading US Non Farm Payroll Data Sentiment Bearish

Euro Bearish Sentiment Pause before Non Farm payroll Data

First Friday of the Month is the much awaited one for Currency Traders as It has been the day for me as well since past 9 years or so, as I always wait for the weekly and monthly entries after the data is released.But any good figures this time will put more pressure on Fed and Jenett Yellen before the next meeting on June to consider rate hike and US unemployment is the biggest concern that US face before they start easing since a decade or so ago.


We have seen strong bullish momentum driving Euro to face resistance around 1.1610 handle and after that market Liquidate quite immensely, as you can expect bulls given away at the end of the month profit taking, and also take cautious measures in the Non Farm payroll week. Any good Forex trader will do that coz you never know how much risk can data bring to the market, any strong deviation up and down will drive the sentiment anywhere and I have seen NFP reverses the overall cycle trends as well. So, be prepare with your charts and let the storm settle down and wait cautiously for your entries and IF there is deviation I would bet on Usd/jpy bulls to drive usd/jpy higher.

Also Read :- Trading is all about buy low and sell high.

Euro dollar sentiment turns bearish again


I have manage to spot weakness in ongoing bullish momentum till the price reach 1.1600-20 area, because price has manage to liquidate immediately as it reached the previous resistance, even strong US data hit the market and support weakness of Dollar

It was one of the situations that the weaker group of all the participants known as retail traders were pushing the price up amid previous breakouts and as we all know If price Advertise higher without or very weak strong money participation, it liquidate immediately at those strong turning points as it happened in the case of Euro, and It could just be a start of downside rally which can extends towards 1.1050-10 area.


I recommend buying Usd/jpy after weak US Employment Data


Last Friday, Non-Farm-Payroll data was about to published and Before that release I manage to pick short term bottom in Usd/jpy and recommended buying around 106.85 Area, and price has not pause after that bull participation. You can see the chart as I will update the chart in my next post with weekly and daily levels to watch and I am very positive once again on this currency pair for a test of 111.40 area and There I will have to track the activity again, and let you what's ahead. Price is trading today around 108.90 Area, with strong support around 108.22 area.


Also Read :- How I manage to pick bottom in US Indexes.

Tuesday, May 03, 2016

Forex Trading is all about trading Zones not Candlesticks.

Candles lows and highs are only used for stop hunting

Forex Price Action is a unfold story, and its success and failure is also hidden till the time we find out ourselves, And the whole story move around the candlestick behavior,trendlines, patterns and fibonacci and specially when breakouts are due to news or some strong expectation prior to the release and other riskier events.


A complete Forex Trading Strategy should be based on trading zones, not on candles, trendline or Fibonacci Patterns. I will give you simple examples that even though market behavior is natural and it is affected by Natural, climatic and political events but real trading behavior is based only on demand and supply of Available assets. So, How can you say the Trading signals should be based on lagging Indicators, Expert advisor and Candles. For me Candlesticks trading gives you a satisfaction or overall trend but no clues that it will keep going up or down in the same way it has gone right after the break.


Also watch:- How I trade Inverse Head & shoulder and grab 300 Pips

Strong Candles are only part of News or Risky Events

As I have stated above in my article that Forex Trading Strategies should be based on understanding and implementing the logic and context written there off and untill we find out the reason of trend is about to resume or collapse, we found ourselves in only loose loose situation, and our emotions and bias force us to take those trades which are based only on candles and trendlines.

We all sort of have same mindset to enter prior to release and key event in hope of missing some strong movements so we often found the strong moves low and depend on candles low or high to protect us, in case move went against us and we got shocks when that key event is released and market went totally against our prediction and we don't have option but to cut loss early or let the stop get hit and just watch it market doing it.


What we left with is spike and sideways movement most of the time and before next movement stop hunters secretly found that hidden stops below candles which is used without revision and mean and that is the big reason of our failure. I have come up with the thoughts of letting everybody know, novice or experienced that whenever you trade Forex Candlesticks look to see the closest zones and valid context and IF you don't see any of these just stop and look for the reaction after the move has happened.

Candles stops hunting after UK Manufacturing PMI data


Here I come up with most recent and strong example of stop hunting just prior to the release of key even of Britain, which effects the currency pair great Britain pound (GBP) and when that data hit the market pound was sold across the board heavily, and just few seconds prior to the release it was very strongly bid and strong cash flow was witness but it all faltered just after the release and market immensely liquidate throughout the day and follow up the next day as well.


Tuesday, 3rd of May 2016, Just prior to the release Pound was strongly bullish with recent trend picking up momentum from lows and was in full flow, and strong bullish candle to start off the session and usual break out of the prior day high was good enough to push for smart money and price was the best one to hit the supply and reverse and stops were hit both way around the candle and that is how market use to behave with candles and even with strong moves, I can show that only 10-15% of the time strong trends breakouts with strong candles succeed.

Forex Trading is all about patience and let your money tree grow

Forex is a money Machine that needs patience and Discipline

Every passionate Forex trader, who is passionate about its trading use to love its trading and at time he hates it as well. Let me be clear about that concept because trading is the most complicated thing that need to be as simple as it could be. By that I means that use of Indicator, use of excess knowledge, outsmart and disrespect senior traders is meant only to complicate things in your mind and also putting questions again up to you about that anything can go wrong by the word of mouth.


lets face the dark side of Forex trading which is there that it is not a get money Fast or get money quickly with the blink of an eye. There isn't any such things exists ever and those who claims is the only one who sell robots and selling such get rich quick schemes.

Investment should be based on long term


May be there are traders, who claims to make money daily or loosing daily, You never know but those who comes out with evidence that they make big money daily should be ignored as those systems and strategy might not suit everybody or you stress out more that you ever experience before. The truth of the fact is very bitter that If you are trying to make money quickly, no matter how smart you thing and how successful you have been, you will lose in the long run and If you are an exception to the rule than I wish you keep carrying on making money on daily basis and your luck never runs out.


However, for everyone else there is risk involves everytime for day trading. IF you get beat up and lose a fortune, never try for revenge trade to make up for your loses! Take a break from trading, have some rest and collect all pieces of puzzle again and re-think the strategies and then try again. For me, demo trading again for 6-12 months is much better options and Even If you want to trade real then $100 is again good to start and involve interest atleast even with micro lots, but it all depends on what you are comfortable with.
Also Read:- Why Candlesticks often used as stop Hunting by Strong Money holders

Silver Trading Strategy



I have been tracking silver since past few months, and there are times when it completely bullish and out of nowwhere price get headwinds and push after a break against the trend is quite vulnerable as it was with the trend. I would put up thoughts of how to trade silver in the weeks to come as I am eyeing a break of 17.10 area again and test of 16.40 will make sure that a top is finally placed but it completely based on how price action unfolds and during NFP weeks it could be deadly volatile and its dangerous to maintain balance with the Silver Future .


Chart would posted if we see a break of 17.40 area to see if price get pump up again and see the new bears attack the area of 16.40 area and opportunity would be tremendous again for a strong push downwards but so far it could be a test of previous high where price show decent reversal.

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