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When I began learning about the trading using technical analysis over 20-years ago I filtered through much of the same information you are. I examined the use of trendlines, moving averages, countless indicators and other types of technical measures. All of which were supposed to define a trend, signal changes of a trend or turning points within those trends. What I found is that nothing worked with any consistently and there were too many variables. Especially flawed are the concepts of overbought and oversold, which I will convince you of.

 

Whether you are a stock, commodity or currency trader, at some point you have been lead to believe that by using price oscillators like Stochastic, RSI, Williams %r or the many others you will be able to determine turning points in those tradable instruments. The idea with these is that they can measure the price action and determine when those prices have become overbought (moved too high) or oversold (moved too low). When a signal is given prices will then reverse.

 

Once you've learned this and their ability to signal turns has been instilled in your beliefs of what is possible, you have been setup to fail. It's not your fault since those that teach the use of these indicators in trading courses will show you how well they worked in the past. Of course, real-time experience will show you how often it doesn't work. Let's look at a couple of examples

 

Before we do that, if you have not read the article I wrote called Bringing Common Sense to Trading. In it you will learn how to trade prices action that has moved too far too fast.

 

GetChart.aspx?PlayID=65839

 

In the above chart of Google (GOOG), once prices began their move higher there weren't any pullbacks of significance. While conventional thinking would suggest that prices would or should pullback it didn't happen. You see, overbought is a flawed concept that does work and it will limit what you believe is possible. There is a meaning to the word of course, but it has no real existence in the markets. When buyers are in control and there is little to no price resistance to the left prices can move higher and higher regardless of the overbought belief. It is obvious from the chart above, what is overbought can become more overbought and then move even higher.

 

GetChart.aspx?PlayID=65840

 

If you still have any doubt that the idea of overbought or oversold is flawed, this chart should take care of it. As Research in Motion (RIMM) started its decline there was never a point where it was overbought within the decline, which is still intact. I know that we can make some oscillator with some setting show an overbought signal at the Pristine Sell Setup (PSS). However, that would setup another limiting belief that it may work in the future or on another stock or currency. FA Get About It.

 

At this point, RIMM could be oversold at zero, but look at this chart. From the high, it fell 20 points and no bounce and then another 20 and nothing. It fell about 50 points before being able to move up and form that PSS! Is that when some oscillator read oversold? There is no oversold or that it has moved too far lower when big money institutions are overloaded and caught. In addition, when there is no significant price support to the left (a Pristine Price Void), the odds are extremely high that the decline is going to continue until the Void is closed.

 

If you are reading this you are passionate to learn about trading and failure is not an option. You are in search of the truth in technical analysis; same as I was. I found it and it isn't in the accepted, over-taught indicator based methods. The truth is in keeping it simple and understanding the messages within the price action. This is the same for day-trading, swing-trading or long-term investing and the same for FOREX, Stocks or E-minis.

 

If you have a trading screen full of indicators I am sure that you have been affected by the plague that infects everyone wanting to learn trading based on chart reading. Consider what I've shown you and remove them, read my other article Bringing Common Sense to Trading and the light will start to come on.

 

All the best,

 

 

Greg Capra

President & CEO

Pristine Capital Holdings, Inc.

pristine-logo-small.jpg

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It is easy to show big trends in the PAST, where OB/OS indicators seemingly fail, but the reality is that it simply isn't true. The FACTS are that despite what you might hear from a firm that heavily markets trading courses at fairly high prices, and teaching incredibly basic stuff, the FACTS are that the two trends above can be perfectly defined by the use of OB/OS oscillators if one uses some lateral thinking. And one can quite easily get on board also via the same OB/OS indicators and ride the tend quite nicely. The big difference is that when, in the vast majority of cases, these big trends don't take place for most markets, the use of OB/OS oscillators will absolutely kill any traditional basic trend following approach.

 

So the lesson is, don't always believe what you read, and especially so when coming from a person who also happens to sell trading courses.

 

I don't market anything, but simply make comments based on 30 years experience. Is 30 > 20? Does it mean anything? Who knows. LOL

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The intent and outline of the brief article is sound enough. It's just that his English is unclear. Depending on spell checkers is no help for errors of context or simply saying the opposite of what is meant. A copy reader would probably pick up the errors and a kindly reader would ignore them. A sloppy reader, unfortunately, would assume the writer means what the text states. And that would be unfortunate.

From the context the author appears to be an English native speaker. If he's not, then I would not like to be harsh, though even then the text should go past a sense checker.

Examples:

"When I began learning about the trading using technical analysis over 20-years ago I filtered through much of the same information you are."

"Before we do that, if you have not read the article I wrote called Bringing Common Sense to Trading. In it you will learn how to trade prices action that has moved too far too fast."

"In the above chart of Google (GOOG), once prices began their move higher there weren't any pullbacks of significance. While conventional thinking would suggest that prices would or should pullback it didn't happen. You see, overbought is a flawed concept that does work and it will limit what you believe is possible."

By sloppy writing, the intent is lost. Omitting a "not" is no help on the road to enlightenment.

And just as an aside, the "overbought" and "oversold" indicators are not usually assumed to be trustworthy on their own, needing confirmation. A stock can be oversold achingly long and overbought seemingly forever. The slopes of hope stretch to infinity and the wall of worry has no limits...our cash and patience do.

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Where are the failed oscillators on the charts?

 

 

It is easy to show big trends in the PAST, where OB/OS indicators seemingly fail, but the reality is that it simply isn't true. The FACTS are that despite what you might hear from a firm that heavily markets trading courses at fairly high prices, and teaching incredibly basic stuff, the FACTS are that the two trends above can be perfectly defined by the use of OB/OS oscillators if one uses some lateral thinking. And one can quite easily get on board also via the same OB/OS indicators and ride the tend quite nicely. The big difference is that when, in the vast majority of cases, these big trends don't take place for most markets, the use of OB/OS oscillators will absolutely kill any traditional basic trend following approach.

 

So the lesson is, don't always believe what you read, and especially so when coming from a person who also happens to sell trading courses.

 

I don't market anything, but simply make comments based on 30 years experience. Is 30 > 20? Does it mean anything? Who knows. LOL

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Hi Greg

Would you include Volume as an indicator?

regards

bobc

 

Bobcollet, volume isn't an indicator like MACD and alike that attempts to intepert the direction or tuning points of the price action. Volume tells us the magnatude of interest at the time or the lack thereof.

 

So volume is a secondary piece of information in addition to price, not an indicator. Of course, there are volume indicators like On Balance Volume. Like price indicators, volume indicators are redundate. Looking at a simple chart with price and volume is enough.

 

Greg

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Bobcollet, volume isn't an indicator like MACD and alike that attempts to intepert the direction or tuning points of the price action. Volume tells us the magnatude of interest at the time or the lack thereof.

 

So volume is a secondary piece of information in addition to price, not an indicator. Of course, there are volume indicators like On Balance Volume. Like price indicators, volume indicators are redundate. Looking at a simple chart with price and volume is enough.

 

Greg

 

Volume isn't an indicator like MACD, but it is an indicator that can be used nonetheless, as can price and time.

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Especially flawed are the concepts of overbought and oversold, which I will convince you of.

 

Greg, all your article has suceeded in doing here is demonstrating that you have little idea of what you're talking about . . .

 

On the chart you show GOOG is clearly in an uptrend (whether you use MAs, trendlines, swing charting - nobody would really argue with this), so why on earth would you try and use an OB reading to short it, hmm?

 

What you need to do is use an OS reading to BUY THE PULLBACKS. I've marked these on a chart below, along with failed rallies in a downtrend, which is where you short on OB. You'll also need an oscillator with a responsive setting - a 2-Period RSI or a 6-Period CCI, for instance.

 

There you go - you just learned how to use oscillators to trade with the trend - and I didn't charge you a thing!

 

Regards,

 

BlueHorseshoe

5aa7114c8f7af_GOOGRe-Visited.gif.99ea63300113709255a6596816acd4db.gif

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It's very difficult to determine when price will turn in the opposite direction. If if were easy, everyone would get into trading, and everyone would make money. It's like a casino; if everyone made money at the casino, they would be open for one day, then go out of business, or quickly find a way to put the odds overwhelmingly in their favor.

 

Price moves very quickly to new levels, making it difficult to react in time. This leaves the trader with two basic choices:

 

  • Enter an order at a target price in advance, and hope for the best.
  • Try to time the order point, and hope you can react fast enough.

 

Both choices have serious flaws, putting the trader at a severe disadvantage no matter what you do. If price always moved very slowly, that could be seen as a lack of opportunity to the trader. In order to make money, there needs to be price movement. So either way, there are disadvantages. If price moves fast, it poses challenges. If price moves very slow, there is less opportunity within that time frame.

 

So what's the better choice? Try to enter orders very quickly, or guess at target levels and enter the order in advance?

 

It was pointed out that the price pauses after each price level, and at that point a decision needs to be made. During that price pause, there is plenty of time to exit, lock in profit, and try to decide if the trend will continue or not.

 

If you exit, and re-enter in the same direction, then the trade goes against you, at least you've locked in some profit. You may loose money on the next trade, but hopefully, overall you won't loose. If you can somehow break even on the bad trades, or not loose to much, that's half the battle.

 

If you react too fast, and get a bad entry, then a fast reaction time is not an advantage. A fast reaction can be either bad or good. If you try to act very fast, but fail to analyze the situation because you didn't have enough time, it's basically just trading randomly. You might get lucky, you might not.

 

No matter what perspective you take in your strategy, there are advantages and disadvantages. Good decisions need to be made that put the odds in your favor. I'm not saying that I do that. I'm speaking from experiencing and knowing how stupid I can be.

 

One mistake I make, is that I take profit, then immediately get back in a position at a better price without having time to analyze whether it was a good decision or not. Locking in the profit, and getting back in at a better price isn't the mistake, that's fine. The problem is that I'm just 'Rolling the Dice', acting on a hunch, and taking a chance. Later, I can look at my charts and see what I should have done, but I have the luxury of time 'after the fact'.

 

I need to take advantage of those sideways price pauses as a way to have enough time to make a good decision.

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I've been hoping that someone would post one of these oscillators and explain how it/they would tell you what to do or not do in real time. Absent that, there's no advantage over a simple diagonal line, so why bother?

 

Db

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Volume isn't an indicator like MACD, but it is an indicator that can be used nonetheless, as can price and time.

 

Neither volume nor price are indicators in the traditionally-accepted technical analysis definition of "indicator". Volume and price exist outside the trader. They require no settings. They require no calculations. They do not owe their existence to a formula. Price "indicates" that a transaction has taken place. Volume "indicates" how many. This does not make them "indicators" as the term is normally used by a trader.

 

Db

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I've been hoping that someone would post one of these oscillators and explain how it/they would tell you what to do or not do in real time. Absent that, there's no advantage over a simple diagonal line, so why bother?

 

Db

 

Hi Db,

 

My post above explains one way in which oscillators can be helpful. I suspect that the reason you don't pull up a chart and look at this yourself is that you've already decided that this sort of thing doesn't work . . .

 

As for realtime - when I traded like this and tried to discuss a position with you in real time earlier this year, you didn't seem too interested.

 

The chart below shows what happens when something like this works out well. If the trend is up buy OS pullbacks, if the trend is down sell OB rallies. If you can do this without an oscillator to define OB/OS or an indicator to define trend, then that's all good too.

 

BlueHorseshoe

Osc.thumb.gif.a1464ab6d349845f4f9d3e827f6e331c.gif

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Hi Db,

 

My post above explains one way in which oscillators can be helpful. I suspect that the reason you don't pull up a chart and look at this yourself is that you've already decided that this sort of thing doesn't work . . .

 

I don't pull up a chart and look at this myself because I'm interested in how those who claim that oscillators work so well in RT use them. It's one thing to say OSCILLATORS WORK and another to apply one to a chart and show how it would work.

 

As for realtime - when I traded like this and tried to discuss a position with you in real time earlier this year, you didn't seem too interested.

 

I wasn't uninterested, but it wasn't RT, nor was it a Wyckoff trade, so I saw no reason to pursue it.

 

The chart below shows what happens when something like this works out well. If the trend is up buy OS pullbacks, if the trend is down sell OB rallies. If you can do this without an oscillator to define OB/OS or an indicator to define trend, then that's all good too.

 

BlueHorseshoe

 

Or one could simply apply a demand line and make one entry at the beginning and one exit at the end. Without knowing the exact entries and exits using the oscillator, and the commission schedule, it's impossible to say which would the more profitable. But the once in-once out (without considering pyramiding) would be close to being as profitable and would carry only one commission. So what's the point of all that trading?

 

I don't see indicators as being the work of the devil. I just don't see the value of them.

 

Db

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Since I've asked for chart examples, I ought to provide one.

 

The black area encircles the timeframe used in BH's chart. Limiting oneself to that, a suggested entry is provided (the hinge is noted for those who know what it is; it is similar to a coil). There is no exit or further entry until the trend "ends", at the break of the demand line. The one earlier break of the demand line in March could be a prompt for an exit, but one could re-enter immediately thereafter and continue riding the trend.

 

Db

 

 

 

attachment.php?attachmentid=31687&stc=1&d=1349135251

5aa7114e88eaf_NQ100(Daily)20121001172930.thumb.png.775adda19b701856848ce9a019d7067c.png

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Neither volume nor price are indicators in the traditionally-accepted technical analysis definition of "indicator". Volume and price exist outside the trader. They require no settings. They require no calculations. They do not owe their existence to a formula. Price "indicates" that a transaction has taken place. Volume "indicates" how many. This does not make them "indicators" as the term is normally used by a trader.

 

Db

 

Wow! Deep! I will twist one up and read it again. Thanks.

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Hi Db,

 

Thanks for your reply.

 

I don't pull up a chart and look at this myself because I'm interested in how those who claim that oscillators work so well in RT use them. It's one thing to say OSCILLATORS WORK and another to apply one to a chart and show how it would work.

 

I would argue that if one is trading completely mechanically then these two things are essentially the same. What's more, if I could show that something rule-based worked very consistently it wouldn't really matter whether I personally was able to trade it effectively (I could be a complete psychological wreck who screws everything up).

 

If you're really interested then surely you can follow what I describe in realtime on a chart - all you need to do is have a glance at the end of each day and note any entries or exits.

 

Since I've asked for chart examples, I ought to provide one.

 

The black area encircles the timeframe used in BH's chart. Limiting oneself to that, a suggested entry is provided (the hinge is noted for those who know what it is; it is similar to a coil). There is no exit or further entry until the trend "ends", at the break of the demand line. The one earlier break of the demand line in March could be a prompt for an exit, but one could re-enter immediately thereafter and continue riding the trend.

 

This is very effective here when the market trends clearer (exactly the same could be said for what my chart shows), and is obviously a much cleaner and more cost efficient way to trade. But what happens when the trend is less obvious and the market becomes "choppy"? The mean reverting tendency of the ES is very well documented, and easily test-able. My experience is that what you show (a form of breakout/trend following) breaks down more significantly in trendless markets than does trading pullbacks. This is because the OB/OS part is more forgiving when one judges the trend incorrectly. See the chart.

 

A good example of this is the trade we discussed in the Wykoff thread. With the benefit of hindsight, you called the trend correctly, I called it incorrectly (so much for MAs!). However, whether I took the long or the short signals during those couple of months didn't really matter - I would have made money either way. Times of trend change are when this approach most notably fails.

 

I'm not trying to encourage/discourage anyone from whatever works for them, and personally I would trade without any indicators to support trading decisions if I thought that I could; what I don't like is when people get up on a pedestal (like the OP) and condemn something as useless just because they don't understand how to use it.

 

BlueHorseshoe

5aa7114ea9425_OscChoppy.thumb.gif.1ee03bc3cda614ce987cfb347bfe3733.gif

Edited by BlueHorseshoe

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I would argue that if one is trading completely mechanically then these two things are essentially the same. What's more, if I could show that something rule-based worked very consistently it wouldn't really matter whether I personally was able to trade it effectively (I could be a complete psychological wreck who screws everything up).

 

This position, however, is one of the chief criticisms of vendors, that they claim something is true without backing it up. Critics should be held to the same standard.

 

This is very effective here when the market trends clearer (exactly the same could be said for what my chart shows), and is obviously a much cleaner and more cost efficient way to trade. But what happens when the trend is less obvious and the market becomes "choppy"

 

None of this, however, is pertinent to the subject of the thread. The OP is addressing the usefulness/necessity of oscillators in trending markets, particularly with regard to the notions of overbought and oversold. You're the only participant to post a chart showing their potential usefulness. Whether or not they are in fact useful in real time, much less necessary, is another matter, and there are dozens of other threads that address this issue.

 

Db

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The OP is addressing the usefulness/necessity of oscillators in trending markets, particularly with regard to the notions of overbought and oversold.

 

I disagree with this actually. I think the OP "cherry picks" trending markets to try and demonstrate the uselessness of such indicators when they are employed to try and pick tops and bottoms in longer term trends. I regard this as a mis-use of such indicators (or certainly one that defies common sense).

 

BlueHorseshoe

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I think the OP "cherry picks" trending markets to try and demonstrate the uselessness of such indicators when they are employed to try and pick tops and bottoms in longer term trends. I regard this as a mis-use of such indicators (or certainly one that defies common sense).

 

So does the OP. Re-read his second and third paragraphs.

 

Db

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Since I've asked for chart examples, I ought to provide one.

 

The black area encircles the timeframe used in BH's chart. Limiting oneself to that, a suggested entry is provided (the hinge is noted for those who know what it is; it is similar to a coil). There is no exit or further entry until the trend "ends", at the break of the demand line. The one earlier break of the demand line in March could be a prompt for an exit, but one could re-enter immediately thereafter and continue riding the trend.

 

Db

 

 

 

attachment.php?attachmentid=31687&stc=1&d=1349135251

 

Hi Mr Horseshoes

Every morning I pray to Charty.He's the God of the trader.

And I ask for a nice trending chart like the second part of this chart.

And every day I get the first part , the choppy part.

You are correct..... cherry picking

kind regards

bobc

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why is everyone against picking the best cherries? they taste the best..why would a trader pick a half green cherry just to be statistically correct? all you have to do is have a mechanism that identifies the best cherries....:)

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Guest OILFXPRO
why is everyone against picking the best cherries? they taste the best..why would a trader pick a half green cherry just to be statistically correct? all you have to do is have a mechanism that identifies the best cherries....:)

 

They give certainty to their beliefs , and believe it even more.

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    • Date : 25th November 2021. Market Update – November 25 – Solid US data lifts USD, Stocks, & Yields. USD (USDIndex 96.70) holds on at 16-mth highs; Strong set of US data yesterday GDP (2.1%) up a tick but missed by a tick, Claims (199k) at 52-yr low, PCE (0.4% m/m & 4.1% y/y), in-line & largest since Jan.1991, along with a big beat (5.9%) for GDP Price index, Durable Goods (0.5%) in-line, Personal Spending (1.3%) a big beat, Personal Income (0.5%) a beat, Trade balance a big beat (14.6%) on strong Exports, Inventories (-2.2%) a big miss, but shows demand is strong. Consumer Sentiment a beat and New Home Sales flat (745K) and missed. Stocks & Yields pushed higher, Oil held onto gains and Gold tested 3-week lows.   The FOMC Minutes showed (1) there could be a faster taper than the $15bn/mth currently planned, (2) Inflation could indeed be “persistent” (3) Clear division over 2022/23 rate hike cycle, Doves hold sway for now. US Yields 10yr trades at 1.644%, down from yesterday’s 1.694% high. Equities – Gains into the Holiday USA500 +10.76 (0.23%) at 4701 – USA500.F trades higher at 4713. USOil – peaked at $78.53 Inventories +1.0 vs -1.7 weakened prices – now at $77.65 Gold found a floor at 1782, but struggles to recoup $1800 at $1790. FX markets – EURUSD now 1.1216, having broken 1.1200, USDJPY now 115.36, from 115.50 & Cable back to 1.3350 from 1.3315 yesterday. Overnight – JPY PPI (1.0%) hit a 10-yr high, German GDP and consumer confidence both missed (1.7% vs 1.8% and -1.6% vs -1.0%) respectively. European Open – December 10-yr Bund future up 16 ticks, while US futures are slightly in the red. Bunds already outperformed yesterday, as EZ spreads widened in the wake of hawkish leaning ECB comments & confirmation that German finance ministry will go to the liberal FDP, which likely means more resistance to debt mutualisation across the EZ & more pressure on ECB to limit asset purchases. DAX & FTSE 100 futures are currently up 0.4% & 0.3% respectively & US futures are posting gains of 0.3-0.4%, suggesting markets are coping quite well with the prospect of less accommodative policies. Indeed, it seems to an extent that they welcome the CB’s acknowledgement that inflation risks could be less temporary than previously thought. Today – ECB Minutes, ECB’s Elderson, Schnabel, Lagarde and BOE’s Bailey Biggest FX Mover @ (07:30 GMT) CADJPY (0.20%) The rally from Tuesday’s low under 90.00 has been sustained with 91.25 being tested earlier today. MAs aligned higher, MACD signal line & histogram rising & over 0 line, RSI 61, H1 ATR 0.077, Daily ATR 0.707. 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 : 24th November 2021. Market Update – November 24 – USD & Yields Higher, Stocks Mixed, Oil Recovers. Trading Leveraged Products is risky USD (USDIndex 96.50) holds on at highs; EM currencies under particular pressure. (TRY lost 15% after Erdogan refused a rate rise). RBNZ raised rates but NZD fell (like the last time they raised rates!) JPY Inflation 2 ticks better than expected. USDJPY at January 2017 levels around 115.00. PMI data better across the globe, Stocks mixed in US & Asia, Yields bid, Oil recovered significantly and Gold pressured by yields. Biden invites Taiwan to its “Summit for Democracy”, WHO talks of additional 700k Covid deaths across Europe (Slovakia latest to talk lockdowns). US Yields 10yr trades at 1.667%, down from yesterday’s 1.684% high. Equities Mixed. Musk sold more stock, Banks & Oil majors lead. USA500 +7.76 (0.17%) at 4690 – USA500.F trades lower at 4684. USOil – rallied over 3% to $78.20 highs despite global strategic reserves being sold to cool prices. Gold found a floor at 1782, but struggles to recoup $1800 at $1790. FX markets – EURUSD down to 1.1245, USDJPY over 115.23, earlier now at 114.88 & Cable back to 1.3375. European Open – December 10-yr Bund future up 26 ticks, US futures also broadly higher. RBNZ delivered expected rate hike & markets seem to be scaling back fears of escalating inflation as even dovish leaning BoE & ECB members highlight risk of second round effects. ECB VP Guindos highlighted overnight that the drivers of inflation are becoming more structural, which adds to signals that the CB is finally ready to start reining in stimulus. DAX & FTSE 100 futures currently up 0.3% & 0.2% respectively. Today – Big data day ahead of Thanksgiving Weekend. – German Ifo, US Weekly Claims GDP, PCE, Durables, FOMC Mins. & ECB speak Biggest FX Mover @ (07:30 GMT) NZDJPY (-0.77%) RBNZ in-line but Dovish, sank from breach of 80.00 yesterday to 79.24, and 79.40 now. Faster MAs aligned lower, MACD signal line & histogram falling & below 0 line, RSI 35 & weak, Stochs OS. H1 ATR 0.17, Daily ATR 0.70. 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.
    • EURUSD HOVERS NEAR MULTI-MONTH LOW, UNDER 1.1250 LEVEL   EURUSD Price Analysis – November 24 Throughout the session, the EURUSD pair remained on the losing side and was last seen moving with considerable losses around the 1.1250-36 level. The announcement that the White House has opted to reappoint incumbent Fed Chair Jerome Powell for a second term sparked the recent strong dip. The spot is trading at 1.1253 at the time of writing, down 0.25 percent on the day. Key Levels Resistance Levels: 1.1525, 1.1422, 1.1300 Support Levels: 1.1200, 1. 1150, 1.1100 EURUSD Long term Trend: Bearish EURUSD has sunk to fresh multi-day lows, as seen on the daily chart, after extending the recent breach beneath the moving averages 5 around the 1.1300 level. This exposes the possibility of a deeper pullback and a re-test of the psychological support around 1.1200. Under the 1.1200 level, the euro’s underlying bullish attitude is in jeopardy. Overall, the EURUSD stays bearish while trading under the major horizontal support turned resistance and significant level at 1.1422. A breakout of the 1.1300 level, on the other hand, would aim for the 1.1350 level on the way to the 1.1400 zones. The fall of the 1.1200 zones, in the alternative scenario, is viewed as a bearish continuation indicator. EURUSD Short term Trend: Bearish The risk is weighted to the negative on the 4-hour chart, as the pair is developing below the firmly bearish 5 and 13 moving averages. Technical indicators have shifted to the downside, with negative levels. However, in the present scenario, the RSI has not yet reached oversold territory, allowing for more selling. On the upside, a break over the modest resistance level of 1.1300 might shift the intraday bias to neutral. On the downside, the 1.1200 zones provide initial support. The next important level of support is around the 1.1150 mark. If there are any more losses, the 1.1100 extension level of the low decline may be tested. Source: https://learn2.trade 
    • IS IT RATIONAL TO SETTLE FOR 10% RETURNS PER MONTH? “One of the secrets few know and fewer implement when it comes to trading success is that you have to really care about doing well. These days, I see a lot of traders not caring enough, not prioritizing learning about trading, and making pathetic weak-willed excuses.” – Chris T. Perfectionism – a bane of the trading world When people look for a solution to their trading problems, they tend to look for the solution in the wrong places, having the wrong mindset. One problem with most traders is perfectionism. For instance, we tend to go to those who promise us 50% to 100% per week or month. If someone gives an estimate of 5% profits per month, we would think that is too small. If an investment salesperson promises huge returns in a short period of time, we’re drawn to them. What if I tell you that 5% per month is good returns on your trading or investment, would you agree with me? Is 60% growth per annum not good enough? Many years ago, one of my mentors in the financial industry told me that, even 20% growth per annum is good. In schools, we tend to ridicule those who make average grades and praise those who make excellent grades. The same is true of the world of sports. Do you think great sports teams win all their matches always? No! But they do well over time. Are 10% gains per month too low? Now let me ask these questions: How much percentage do you earn on your savings account per annum? How much do you earn on your fixed deposit account per month? How many people can pay off their mortgages within one year? If you buy a bus, to use for commercial purposes, is it easy for you to recover your money in one year? Can you buy a property and sell it for 100% profit within 10 months? If you found a startup, how long do you think it would take you to start making profits? Please attempt to answer these questions yourself, based on real-life experiences. Now, back to the question that makes the last subheading: Are 10% gains per month too low? Why do we tend to be unrealistic and fallacious when it comes to online trading? Making 10% returns per month from Learn2.trade crypto signals One good thing about the margin trading of cryptos is that you can make money, both in bull and bear markets. You don’t make money only when the price is going up. If your timing and methodology are right, you can predict a downward movement or an upward movement and participate in them. Learn2.trade provides quality crypto signals to interested traders. Each signal comes with stop loss and take profit targets. Sometimes a trade is closed before the stop or the target is hit. We use 5 types of orders for the crypto signals. They are Instant Execution, also known as Market Execution, Buy Limit, Sell Limit, Buy Stop, and Sell Stop. Generating an average of 2 – 3 signals per day, we also use risk settings that are usually around 1% per trade and we attempt to gain more than we risk. As these signals are sent, we ensure that we also use them, practicing what we preach. Learn2.trade crypto signals – recent performances Please check the image below to peruse what has been made recently. You see can that we use stop loss, and use small lot sizes, relative to the size of the accounts. It just doesn’t make sense to bet too big on an individual trade. You can also see that we have both losses and profits. However, our average profits are bigger than average losses. That is the pedigree of a viable/ promising strategy: Make more money than you lose. Therefore, losses and drawdowns are also tightly controlled so that they don’t have significant effects on the account. These kinds of drawdowns are shallow, for recovery and eventual growth always happen. The markets are difficult but profitable Making consistent, regular profits from the market is hard, but success is possible. When the markets prove difficult, then we only need creative approaches. Markets will continue to prove uneasy and tough, but we will continue to make profits from them, no matter what. We target 10% profits per month, though we make more than this in most cases. 100% profits every 10 months is an enviable achievement. If 10% gains per month are compounded, the results in a few to several years will be amazing. Yes, you should be aware of the power of compounding. Join us today, in this journey of regular, monthly profits. Please see the image above, to know relevant metrics and figures of the recent results of the strategy behind the signals. You can join us here for, few free crypto signals per week: For Cryptos. Or you can hop in, and become our VIP right away, and enjoy all our crypto signals, up to 3 signals per day. Get access to the ability to make 10% or more per month. You can monitor our crypto signals trading performances here: L2T Crypto Signals on MyFxbook   Source: https://learn2.trade   
    • Yes trading currencies is much more risky than trading stocks, since they're not supported by central bank policy efforts but instead freely fluctuation in a very random fashion. Profits can create wrong impression that you learned how to trade but often it is just the product of pure luck. 
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