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2ndSkiesForex

Understanding Price Action by Chris Capre

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What Is Price Action?

 

Before I begin discussing various price action strategies, methods and tools for reading and trading price action, I must begin with a working definition of 'what is price action'. From this broad working definition of price action, I will then talk about how it relates to order flow and the relationship between price action and order flow.

 

By explaining these basic premises which form the root of my approach to trading price action, I will be able to further explore price action trading in my follow up articles.

 

A Broad Definition of Price Action

 

The broadest working definition of price action would be to define it as 'Price's movement over time'. Unfortunately, this is vague by itself, so I will expand this definition by saying 'on any timeframe'.

 

Technically, this means that on a tick chart, if the price of the AUD/USD moves from 1.1000 to 1.1001, this one pip adjustment in price is a working example of price action. So in its’ rawest form, price action = price's movements over time on any time frame.

 

These various price fluctuations will look different based on what time compression (time frame) you are using when looking at price action on any instrument.

 

What Is Order Flow?

 

Order flow is a general term which refers to the transactions (buying or selling) that cause the price of an instrument to fluctuate.

 

Any transaction, whether it be a market order, a buy limit order, buy stop order, etc., is an order or transaction.

 

All of these transactions on a daily basis refer to the order flow in the market, or the flow of orders, so this is what I am referring to when I talk about order flow on a basic level.

 

Price Action and Relationship to Order Flow

 

The bottom line is price does not move unless there are transactions or orders in the market to buy/sell the pair at whatever price the institution or trader wants to. Thus, all price movements and price action are the result of order flow. It does not matter if a participant bought or sold the EUR/USD because of a fundamental event, such as Ben Bernanke telling the market he is keeping interest rates on hold till 2014. None of that is why price moves. Price moves simply because of the transactions that are executed in the market. Because of this - price action is really the offspring of order flow.

 

Many things can affect price action and how it manifests, such as;

 

-The total liquidity available in the market for that instrument

-The total number of buying and selling orders executed in the market

-The volume (size of the position) of each buying and selling order executed in the market

 

But ultimately, when there is a balance between the buyers and sellers in terms of orders, the market will have no directional bias. This creates a range-bound environment for price action.

 

However, when there is an imbalance in the order flow between the buyers and sellers, this will create a directional bias in the price action, and it is this balance or imbalance we should be learning to read in the price action because it will communicate to us the directional bias, along with where the institutional players are likely getting in and out of the market.

 

Thus, trading price action is not about trading simple patterns, like pin bars, inside bars, and just responding to the pattern. That leaves you totally un-empowered because there will be times when trading pin bars are optimal, and where they will fail miserably. Your success as a trader to use price action patterns successfully will be in your ability to read the price action and understand what it is communicating.

 

Just some basics of what can be gleaned from learning to read price action are;

 

-Speed of buying and selling

-When a trend is likely to continue or reverse

-Key locations institutions are entering and exiting the market

-Optimal places to put your entries, stops and limits

-Whether your price action signal is likely to succeed or fail

and more...

 

Thus, it is critical to learn how to read the price action and order flow behind it.

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..... . Thus, all price movements and price action are the result of order flow......

 

But ultimately, when there is a balance between the buyers and sellers in terms of orders, the market will have no directional bias. This creates a range-bound environment for price action....

 

Range-bound zones most times are caused by an imbalance as well. One side holding the other back. Once the weaker side folds price moves out of the range.

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Thank you Skies for this important aspect of trading and understanding it. Hope you will expand more on this subject and get valuable comments/explanations from others on this forum. I hope that those who will comment -ve or see no value stay away.

 

One Q on speed of Price action . many times such an action is so directional that getting an entry is difficult ..and it happens so fast over a period of 15-20 -30 mins that it becomes a matter of faith to pull the trigger and hope for the best ... once the move is over there will be some pull-back but by then the entry is a bit iffy and reward way too small.

 

Would appreciate your thoughts on such an intense P/A ...

 

 

Thank you

 

 

Pat

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Range-bound zones most times are caused by an imbalance as well. One side holding the other back. Once the weaker side folds price moves out of the range.

 

Hello SunTrader,

 

As a whole, range bound markets would be a balance in the order flow at that point in time. Its two sides agreeing upon a general value and as long as neither side takes a more dominant stance, then the range will hold.

 

However, there will be micro moments inside the range where one side will exhibit strength until it reaches the other end of the range whereby it will test the other players strength.

 

There are some circumstances whereby a range will be the result of slightly more dominant order flow from one side or the other - usually this occurs after a strong trend, when there is profit taking, but not much of an entrance of players from the other side.

 

Then this would be the result of an imbalance - albeit a lesser one.

 

But as a whole, if there is a balance, there will be no directional flow or very little. When the imbalance gets strong enough, then a direction will dominate.

 

But yes, there can be times where a range is the result of an imbalance, just less often for most ranges.

 

Good comments though.

 

Kind Regards,

Chris

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Thank you Skies for this important aspect of trading and understanding it. Hope you will expand more on this subject and get valuable comments/explanations from others on this forum. I hope that those who will comment -ve or see no value stay away.

One Q on speed of Price action . many times such an action is so directional that getting an entry is difficult ..and it happens so fast over a period of 15-20 -30 mins that it becomes a matter of faith to pull the trigger and hope for the best ... once the move is over there will be some pull-back but by then the entry is a bit iffy and reward way too small.

Would appreciate your thoughts on such an intense P/A ...

Thank you

Pat

 

Hello Pat,

 

Thanks for the kind words - am glad you liked the article.

 

Yes, I will definitely be expanding on this subject quite soon - this was just the beginning to introduce the base concepts of how I approach price action.

 

In regards to your Q - the speed of price action can definitely be read - I use the impulsive vs. corrective methodology for reading this which is a base model for how I read and trade price action. Its the base of the pyramid of information for me. With time, practice, experience and the right tools, these can be easily read in real time and be easy to enter.

 

I actually teach a lot of tools to read the order flow, learn when it is exhausted or over-extended, when to look for a pullback, when to trade on a break and how to capture the with-trend moves. These can all be learned but if you watch the video-link on understanding price action impulsive vs. corrective moves, you'll find it much easier to trade the right edge as you have tools to anticipate the future trend, along with finding the best entries.

 

Once these rules and techniques are learned, it's no longer a matter of faith to pull the trigger, but a matter of experience.

 

Hope this helps.

 

Kind Regards,

Chris

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But yes, there can be times where a range is the result of an imbalance, just less often for most ranges....

Disagree.

 

Market hits support multiple times then rebounds and moves higher.

 

Was there an imbalance? To me obviously not. The bears weren't strong enough to break support.

 

Next instance market hits support multiple but then finally breaks,

 

Was there an imbalance? To me anyway obviously yes. The bulls weren't strong enough to hold back the bears to maintain support and rally price.

 

The trick is to know beforehand, which I can do only part of the time.

 

But which way price moves out of a rangebound period says who was stronger, in the backround, before moving it the other direction.

 

My :2c: for what its worth.

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Hello Sun Trader,

 

There will be times when a range is the product of an imbalance, and times when it is the product of a balance between the buyers and sellers. Depending upon the environment, it can be either.

 

For example, the NZDUSD on the daily chart was in a range for over two months just before it broke it in mid April. This was no doubt the result of a balance between buyers and sellers for it to persist this long. There is no way it could have remained in such a tight range for that long without there being a balance between the buyers and sellers. If there wasn't, and the imbalance was strong enough, it would have taken a direction. But it didn't - hence the balance between the two forces.

 

But, if we are in a strong trending environment, lets say an uptrend, and the market starts to consolidate for several hours, or a day or two, this could be the result of;

1) a redistribution between the buyers and sellers

2) profit taking on the buyers, but no real sellers entering the market

3) running into strong sellers who can equal or match the buyers strength

 

There are many reasons why this could be. The 1st example represents going from a large imbalance between the buyers and sellers to a lesser imbalance between the buyers and sellers. Although there is a greater presence of balance, on an overall basis, there is still an imbalance.

 

The 2nd example also represents still an imbalance, but a movement back towards balance from being highly imbalanced.

 

The 3rd example results in there being a balance in the forces on both sides. This could either create a range for a period of time when one side loses and it could be the bulls or the bears. This is not fixed. It could also result in a struggle between buyers to regain control, but failing to do so, and during a period of time, you'll see minor swings in control between the bulls and bears, but still an overall balance because neither can make ground.

 

Or the bears could simply take control, and this can either be done in a violent impulsive fashion, or from a series of lower highs and lower lows. But regardless, there are plenty of scenarios where ranges form from a balance between buyers and sellers, and the range will persist until one side tips the scales.

 

And, there will be times when ranges are the product of imbalances, but the result of a greater imbalance becoming a lesser imbalance.

 

So the answer is both/and, not one or the other.

 

Hopefully this makes sense but I can find plenty of price action environments where one or the other is true.

 

A good and open discussion though which I always enjoy.

 

Kind Regards,

Chris

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2ndskies (Chris), I will break precedent and say "job well done" on your site, videos, and post. Sure, there are a few things in your post that are not quite correct, like when you equate orders and transactions, but overall you seem a bit different from other vendors. I watched one of your videos, the 5/21 one where you post a real time aussie trade, which wound up not really working out. I respect much more a vendor who can post a losing trade, than those who never want to be on the record as being wrong. Also, if your bio is accurate, you have lots of experience which I respect. Kudos and welcome to TL.

 

Regarding "balance" which you two are discussing-- if the market, which is always two prices, moves, then it's accurate to say that this movement is caused by an imbalance of buyers and sellers at the market. Thus, it is also accurate to say that there is an imbalance at the low end of a range (more buying pressure), and at the high end of a range (more selling pressure). But if we extrapolate this principle, and consider "the market" to be the low and high of the range, instead of two individual prices, then conceptually the market, in this case, is balanced.

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2ndskies (Chris), I will break precedent and say "job well done" on your site, videos, and post. Sure, there are a few things in your post that are not quite correct, like when you equate orders and transactions, but overall you seem a bit different from other vendors. I watched one of your videos, the 5/21 one where you post a real time aussie trade, which wound up not really working out. I respect much more a vendor who can post a losing trade, than those who never want to be on the record as being wrong. Also, if your bio is accurate, you have lots of experience which I respect. Kudos and welcome to TL.

 

Regarding "balance" which you two are discussing-- if the market, which is always two prices, moves, then it's accurate to say that this movement is caused by an imbalance of buyers and sellers at the market. Thus, it is also accurate to say that there is an imbalance at the low end of a range (more buying pressure), and at the high end of a range (more selling pressure). But if we extrapolate this principle, and consider "the market" to be the low and high of the range, instead of two individual prices, then conceptually the market, in this case, is balanced.

 

Hello Josh,

 

Thanks for the kind words. I'm not intimidated about a loss or being wrong which is part of trading. It would be like Michael Jordan being upset about missing one basketball shot. Forget lamenting about it - grab the rebound and follow it up with a dunk!

 

It's important to present both aspects of trading - the good and bad experiences as they are part of the process all of us go through and have gone through.

 

In regards to the range, sure, in the micro aspects of the low and high end, there will be those temporary imbalances between the buyers and sellers which drives price inside the range.

 

But I consider the overall dominant structure at that time to be 'gestalt' of the market. Thus, the low and high end of the range that are being sustained - which as you and I both commented would be a 'balanced' market.

 

Its really an ebb and flow like the waves of the ocean between stronger levels of balance and imbalance, along with location (i.e. price) of those transactions which determine price movement, structure, speed of buying and selling, etc., and thus present opportunities to trade them via the price action. Yes, there are other factors, but these are some basic components.

 

This can definitely be learned to read with time, practice and effective tools, of which I will be writing about in the near future here.

 

Kind Regards,

Chris

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ALL YOU NEED TO KNOW ABOUT TRADING

 

* Price either goes up or down.

* No one knows what will happen next.

* Keep losses small and let winners run.

* POSITION SIZE = RISK / STOP LOSS.

* The reason you entered has no bearing on the outcome of your trade.

* You can control the size of your loss (skill) but you can't control the size of your win (luck).

* You need to know when to pick up your chips and cash them in.

 

Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)

 

You cannot control the probabilities of wining or losing.

 

You cannot control your average win size.

 

The only part of the equation that you can control is your average loss size.

 

PRICE ACTION

 

Now, 2 patterns of market behavior happen on a regular basis:

 

1) the price breaks to new high's (or low's)

 

2) the price reverses from new high's (or low's)

 

They happen regardless of time frame .

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.” - H. Rearden

 

1) Price will either breakout of the high, low or both of the previous bar

 

2) Price will not breakout of the previous bar.

 

You cannot reduce it any further. Anything else complicates the issue.

 

ENTERING A TRADE

 

You either decide to:

 

1) Wait and do not enter a trade

 

2) Trade a breakout

 

3) Trade a reversal.

 

Those are your ONLY 3 options.

 

That is all you need to know about trading.

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ALL YOU NEED TO KNOW ABOUT TRADING

 

* Price either goes up or down.

* No one knows what will happen next.

* Keep losses small and let winners run.

* POSITION SIZE = RISK / STOP LOSS.

* The reason you entered has no bearing on the outcome of your trade.

* You can control the size of your loss (skill) but you can't control the size of your win (luck).

* You need to know when to pick up your chips and cash them in.

 

Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)

 

You cannot control the probabilities of wining or losing.

 

You cannot control your average win size.

 

The only part of the equation that you can control is your average loss size.

 

PRICE ACTION

 

Now, 2 patterns of market behavior happen on a regular basis:

 

1) the price breaks to new high's (or low's)

 

2) the price reverses from new high's (or low's)

 

They happen regardless of time frame .

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.” - H. Rearden

 

1) Price will either breakout of the high, low or both of the previous bar

 

2) Price will not breakout of the previous bar.

 

You cannot reduce it any further. Anything else complicates the issue.

 

ENTERING A TRADE

 

You either decide to:

 

1) Wait and do not enter a trade

 

2) Trade a breakout

 

3) Trade a reversal.

 

Those are your ONLY 3 options.

 

That is all you need to know about trading.

 

Very well put. I was amazed at how people really go all out to interpret all these wonderful chart patterns and other visual "special effects," yet the most basic, linear part of price per unit volume totally escapes the majority of traders. I suppose the best place to hide something is in plain sight.

 

This is why my APAMI move indicator will be such a breath of fresh air. The focus is solely on qualifying just what is price action in a way that allows a trader to clearly define a trend (higher high or lower low) and then make a choice.

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Very well put. I was amazed at how people really go all out to interpret all these wonderful chart patterns and other visual "special effects," yet the most basic, linear part of price per unit volume totally escapes the majority of traders. I suppose the best place to hide something is in plain sight.

 

This is why my APAMI move indicator will be such a breath of fresh air. The focus is solely on qualifying just what is price action in a way that allows a trader to clearly define a trend (higher high or lower low) and then make a choice.

 

Hello 4EverMaAT,

 

I think it would be more appropriate to start your own thread on the APAMI indicator,n as opposed to starting a conversation of it here where the discussion is about this article and contents in particular.

 

If you have something you want to promote or discuss - no problem, just start your own thread instead of jumping into anothers where the intention is to discuss the contents of this article.

 

Kind Regards,

Chris

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ALL YOU NEED TO KNOW ABOUT TRADING

...

 

PRICE ACTION

 

Now, 2 patterns of market behavior happen on a regular basis:

 

1) the price breaks to new high's (or low's)

2) the price reverses from new high's (or low's)

...

1) Price will either breakout of the high, low or both of the previous bar

2) Price will not breakout of the previous bar.

 

You cannot reduce it any further. Anything else complicates the issue.

 

ENTERING A TRADE

 

You either decide to:

 

1) Wait and do not enter a trade

2) Trade a breakout

3) Trade a reversal.

 

Those are your ONLY 3 options.

That is all you need to know about trading.

 

This seems incomplete. Within PA are patterns that can be used to predict future price movement with a probablity greater than chance - how else would rats get their cheese? ;)

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That is all you need to know about trading.

 

It might be nice to know what the trend is in the timeframe you're trading. Why? Better probability of a winning trade and a greater profit. simple.

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    • Date : 26th October 2021. Market Update – October 26 – Bonds and stocks rallied to start the week. USD (USDIndex 93.89) – first rate hike was pushed up to June, with two quarter point tightenings priced in for 2022. Wall Street firmed too on the back of strong earnings with more new record highs on the USA500 and the USA30. Also underpinning sentiment are expectations that the fiscal package will make it out of Congress. Fed Chair Powell warned that inflation could be higher and more persistent than previously expected. US Yields – 10yr backed up 0.9 bp overnight to 1.64%. Equities mixed – USA100 paced the advances though, climbing 0.9% amid support from the slip in yields – 4582. USA100 bounced to 15602. Facebook reported mixed third quarter earnings on Monday, slightly missing revenue estimates but continuing to grow its user base. FB +2%. TSLA (+12.6%) joins the$1 trillion market cap group after 11 yrs – took AMZN 22 yrs. It’s bigger than the combined value of the next 9 biggest car makers but it sells less than 1% of world car sales. Elon Mush added $36BN to his net wealth yesterday alone. UBS beats on revenue – but sales are mixed. USOil holds up again on supply concerns & trades close to 7-year highs at $82.50. Gold spiked at $1808. FX markets – EURUSD 1.1600, Cable bounced 1.3778, USDJPY – reversed from 113.97 highs to PP at 113.86. European Open The December 10-year Bund future is down -20 ticks at 168.45, underperforming versus US futures, although in cash markets the US 10-year rate is down from overnight highs, but still up 0.4 bp at 1.63%, as a 0.5% gain in the USA100 is leading US stock futures higher. GER30 and UK100 are posting gains of 0.2% and 0.1% at the moment, after a somewhat mixed session across Asia. Today – Upcoming central bank decisions will remain in focus, with ECB and BoJ set to announce their decisions on Thursday. Earnings: Microsoft, Alphabet, Visa, Eli Lilly, Novartis, Twitter, General electric, UBS, Robinhood. Today’s economic calendar will be of interest as well, and features October consumer confidence and September new home sales. Biggest FX Mover @ (06:30 GMT) NZDJPY (-0.28%) Reversed overnight gains from 81.88 high tp currently 81.50 area. Faster MAs, RSI & Stochastic turned lower, while in contrast MACD signal line & histogram keep rising, implying to a potential limited pullback. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 25th October 2021. Market Update – October 25 – Big Earnings Week Ahead, USD Cooler. USD (USDIndex 93.50) cools a tad & again tests 4-wk low (93.44). PMIs biased to the upside as Powell talked taper but no rate rises yet, Democrats narrowed their differences on the $3.5b infra bill & Yellen talked new taxes. Yields hold up, Equities mixed Friday, FUTS down. Big week for Earnings – Oil up again on supply concerns, gold back to $1800. Evergrande – Restarted 10 building projects over weekend, announced move away from real estate towards EV production. US Yields (10yr closed higher at 1.665) & – now 1.6500% Equities mixed – USA500 -4.88 (-0.11%) at 4544 (NASDAQ –0.82%) – Big movers – SNAP -26.59% & INTEL -11.68%; Big Earnings misses, FB -5.05%, GOOGL & AMZN –3%, TSLA +1.75% – USA500.F back to 4540. Asian equities weaker. USOil up again on supply concerns & trades close to 7-year highs at $83.00 Gold very volatile Friday ($1782-$1813-$1793 on close) Back to pivot at $1800 now. FX markets – EURUSD 1.1650, Cable 1.3770, & USDJPY – (after a strong day on Friday (113.40 low) now at 113.60. Week Ahead Earnings from 5 x tech giants (FB today), plus major European Banks. Policy meetings from the ECB, BoJ & BOC, economic data includes US Q3 GDP & PCE. Plenty of CB speak, the UK Budget and month end too. European Open December 10-yr Bund future up 23 ticks at 168.51. DAX & FTSE 100 futures up 0.15% & 0.25% respectively. Inflation risks remained in focus as oil prices continue to climb higher while bottlenecks in supply chains lead to rising cost pressures. The combination already weighed on manufacturing PMIs last week & are likely to also depress the German Ifo confidence reading today ahead of Thursday’s ECB meeting. Fed Chair Powell signalled on Friday that inflation could stay higher for longer & that the taper is coming. ECB by contrast has pushed decisions on PEPP & APP back to the December meeting, which means this week’s ECB will be watched mainly for signals from Lagarde at the press conference. TToday – German IFO and BoE’s Tenreyro. Earnings: Michelin, Facebook, Restaurant Brands. HSBC surprises with 74% rise in Q3 profit and $2bln buyback. Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.45%) Recovering from a strong day run fro JPY last week. Up from 84.50 tlow on Friday to test 85.00 now. Faster MAs aligned higher, MACD signal line & histogram rising, RSI 51 & neutral. H1 ATR 0.189, Daily ATR 0.817. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 21st October 2021. Market Update – October 21 – Stocks & USD slip on big Earnings Day. USD (USDIndex 93.55) cools a tad and again tests 2-week low (93.47) Yields stronger again, Equities closed up, but FUTS are down (Nikkei -2% on stronger YEN and Yuan). Big day for Earnings – TESLA beat but revenue numbers disappointed some. Oil up on drawdown. Evergrande – Bad News $1.7bn sale of 51% of HK unit to Hopson OFF, $1.7bn sale of HK HQ OFF, $83.5m coupon default triggers tomorrow. Good News $260m bond coupon, extended by 3 mths US Yields (10yr closed higher at 1.63) & – now 1.6533% Equities moved ground higher USA500 +16 (+0.74%) at 4536 (NASDAQ –0.05%) – Big movers – Verizon +2.41% & ABBT +3.3% (PayPal – 4.91%) – USA500.F back to 4500. Asian equities weaker. New VIX contract at +1.49% at 19.60 USOil up on drawdown n strong demand at $82.00 after EIA inventories showed -400K vs build of 2.1m Gold holds at 4-day highs – $1785 FX markets – a recovering USD – EURUSD 1.1646, Cable down from 1.3830+ to 1.3800, & USDJPY – off 4-year highs and pivots at 114.00. European Open The December 10-year Bund future is down -16 ticks, US futures are also in the red. DAX and FTSE 100 futures are both down -0.45 and US futures are also in the red, with the NASDAQ underperforming again, after already closing slightly lower yesterday. Indices remain at high levels, but tapering concerns, the global energy rout and supply chain concerns are capping the outlook for global growth. Markets will continue to watch earnings reports and central bank comments, especially in the UK where officials clearly are laying the ground for an early lift off. Meanwhile the announcement of Weidmann’s departure has raised hopes that the ECB will push even more to circumvent the no-bailout clause permanently – after the end of PEPP, which already helped BTPs to outperform yesterday. Today – US Initial Jobless Claims, Philadelphia Fed Business Index, Existing Home Sales, EZ Consumer Confidence, EU Council Meeting, Fed’s Daly, Waller, RBA’s Lowe, Earnings: AT&T, Intel, American Airlines, Southwest Airlines, ABB, (bottleneck problems) Vivendi, Hermes, (beat) Pernod Ricard,(beat) Barclays, (Revenue big beat) Unilever (Sales miss). Biggest FX Mover @ (06:30 GMT) AUDJPY (-0.50%) Rejection of 86.25 this morning as Yen lifts after a very weak October. Faster MAs aligned lower, MACD signal line dips and & histogram slips significantly lower, RSI 40.00 off OS level, H1 ATR 0.189, Daily ATR 0.817. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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