Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Many of you know that I have a back ground in Stock Car racing. The more I think about it, the more I see similarities that racing and trading the markets have in common. Particularly that they both require intense focus.

 

I was thinking back on my racing days and I remembered a statement that my crew chief made to me. That statement not only gave me the edge in racing but virtually in every other venture that I was a part of. Are you ready for that magic set of words? Well, I think it would be prudent for me to explain a few things first.

 

You see, in racing, you are rewarded for being fast, having cautious aggressiveness and being the most consistent; in addition, everything is measured in fractions of seconds.... In some cases the decisions you make, or don't make for that matter, could injure you or even worse, could be fatal. When you hear these words that I am going to share with you, it may not make sense at first but experienced individuals know how important this is. OKAY, are you ready?

 

My crew chief said to me, "Jeff, if you want to go fast you have to slow way down." Now you can just imagine the confusion on my face when I was told this. I think my exact response was, "Huh?" He went on to explain to me that to be fast, you need to slow down in the corners so that you can set up the car for the exit. Most people drive off in a corner and man handle the car and as a result, they have a poor exit. By simply rolling into the corner rather than driving 100% into the corner, you will have more momentum in the majority of the track, which is in the straight away. I finally began to understand this concept and since then, I have applied it to many things in my life.

 

So, here is the big question... How does this apply to trading the markets? Many people that are embarking on a new career want the experience of success," YESTERDAY"! They "rev up" their trading account and go full-speed into the corner not giving any consideration to consistency. They don't even know what their car has under the hood. They start buying and selling stocks as if they were selling tickets to a Broadway show. No strategy, no plan, just pure adrenalin and emotion.

 

Most new traders feel that if you are in the trading business, you should be trading; not sitting and waiting. Unfortunately, a very high percentage of new traders never make a proper exit off the corner. Man handling their trading eventually causes them to end up in the wall, and I don't mean Wall Street. If they would just learn how to roll into the corner (paper trade) and set their car up for the exit (proper education FIRST) they would learn how to pass the majority of people down the straight away.

 

I had a conversation once with racing legend Bill Elliot who has gone down in history as one of the most winning drivers on the NASCAR circuit. This is basically what he told me: "Jeff, if you were to paint a line around the track where your front tires are tracking, the goal would be to only focus on hitting your marks." He went on to say "Sloppiness or inconsistency of your line around the track is one of the most damaging things a racer can do."

 

That made so much sense to me the more I thought about it. So many people spend so much time looking for the better way around or a better system that they lose the peril and momentum of consistency. By the time they find their "line" (the Holy Grail that does not exist) they have already used up their equipment. You do not need to trade 20 or even 100 trades per day to be a trader. The professionals ARE NOT TRADING the majority of the time, they are just following their line (only taking their setups and not looking for the newest and "better way" to make a lot of money in the markets.)

 

The sooner you learn and understand that taking less trades with more consistent setups is really the only way to achieve financial rewards in day-trading, the sooner you will be on your way to consistent profits.

 

Jeff Yates

Contributing Editor

Interactive Trading Room Moderator

Gap, Intra-Day and Swing Trading Specialist

Instructor and Traders Coach

editorface_jeffyates_blank.gif

Share this post


Link to post
Share on other sites

" If they would just learn how to roll into the corner (paper trade) and set their car up for the exit (proper education FIRST) they would learn how to pass the majority of people down the straight away."

 

I agree in part, I have spent time on the track myself and understand the concept of "slow in/fast out" and "throwaway corners".

 

But paper trading isn't the same as "seat time".

 

Proper education is a matter of opinion when it comes to trading. I have been trading since the 1970s using paper charts and reading ticker tape. The traditional trading education is full of myths and concepts. Those who teach about reality are few and far between. That's why I get so much "heat" on trading forums because I expose the myths and concepts for what they are!

Share this post


Link to post
Share on other sites
Many of you know that I have a back ground in Stock Car racing. The more I think about it, the more I see similarities that racing and trading the markets have in common. Particularly that they both require intense focus.

 

I was thinking back on my racing days and I remembered a statement that my crew chief made to me. That statement not only gave me the edge in racing but virtually in every other venture that I was a part of. Are you ready for that magic set of words? Well, I think it would be prudent for me to explain a few things first.

 

You see, in racing, you are rewarded for being fast, having cautious aggressiveness and being the most consistent; in addition, everything is measured in fractions of seconds.... In some cases the decisions you make, or don't make for that matter, could injure you or even worse, could be fatal. When you hear these words that I am going to share with you, it may not make sense at first but experienced individuals know how important this is. OKAY, are you ready?

 

My crew chief said to me, "Jeff, if you want to go fast you have to slow way down." Now you can just imagine the confusion on my face when I was told this. I think my exact response was, "Huh?" He went on to explain to me that to be fast, you need to slow down in the corners so that you can set up the car for the exit. Most people drive off in a corner and man handle the car and as a result, they have a poor exit. By simply rolling into the corner rather than driving 100% into the corner, you will have more momentum in the majority of the track, which is in the straight away. I finally began to understand this concept and since then, I have applied it to many things in my life.

 

So, here is the big question... How does this apply to trading the markets? Many people that are embarking on a new career want the experience of success," YESTERDAY"! They "rev up" their trading account and go full-speed into the corner not giving any consideration to consistency. They don't even know what their car has under the hood. They start buying and selling stocks as if they were selling tickets to a Broadway show. No strategy, no plan, just pure adrenalin and emotion.

 

Most new traders feel that if you are in the trading business, you should be trading; not sitting and waiting. Unfortunately, a very high percentage of new traders never make a proper exit off the corner. Man handling their trading eventually causes them to end up in the wall, and I don't mean Wall Street. If they would just learn how to roll into the corner (paper trade) and set their car up for the exit (proper education FIRST) they would learn how to pass the majority of people down the straight away.

 

I had a conversation once with racing legend Bill Elliot who has gone down in history as one of the most winning drivers on the NASCAR circuit. This is basically what he told me: "Jeff, if you were to paint a line around the track where your front tires are tracking, the goal would be to only focus on hitting your marks." He went on to say "Sloppiness or inconsistency of your line around the track is one of the most damaging things a racer can do."

 

That made so much sense to me the more I thought about it. So many people spend so much time looking for the better way around or a better system that they lose the peril and momentum of consistency. By the time they find their "line" (the Holy Grail that does not exist) they have already used up their equipment. You do not need to trade 20 or even 100 trades per day to be a trader. The professionals ARE NOT TRADING the majority of the time, they are just following their line (only taking their setups and not looking for the newest and "better way" to make a lot of money in the markets.)

 

The sooner you learn and understand that taking less trades with more consistent setups is really the only way to achieve financial rewards in day-trading, the sooner you will be on your way to consistent profits.

 

Jeff Yates

Contributing Editor

Interactive Trading Room Moderator

Gap, Intra-Day and Swing Trading Specialist

Instructor and Traders Coach

editorface_jeffyates_blank.gif

 

What you say has merit Jeff. But for guys like me who spend 2 years following a "successful: make that 2 successful traders/moderators in a trading room trying to get what they are doing, and then find that what they are doing doesnt have a positive expectancy anymore, you will either over trade to find out what the heck went wrong, or.....quit and just paper trade till you find out how to make a winning system again. I did both and sometimes that winning system can take years to come up with again. You know so many people talk about what kind of money you need to have as a starting bankroll in trading. No one talks about the bigger expense........the money you need to survive and pay your bills until you become a winner(at least on paper.) Now what I say should scare some guys but, when I started daytrading 5 years ago, I was on my way to be able to retire at 55. Now Im 53 and Im in worse shape now. Not from losing money, but from not trading and HAVING the discipline to paper trade. Well, paper trading doesn't pay the rent! Lately I've seen for the first time several articles all over the web with this title: Is every system destined to fail? I am now wondering that myself. Lets think, if in the bull run we have had these last 3 years which may not come again in another 15 years, if you cant make a living just being long stocks in today's bullish trend, maybe you never will. Sorry, reality sometimes hurts. Yet for me as a day trader the volatility we had in the 2003-2008 era was much better for me even though it wreaked havoc for most peoples accounts. Makes me think a republican in the white house is better for traders. Now I have people like my sister who dont even know what an ETF is, that are making a fortune in her 401k mutual funds and think buy and hold must be the magic way, while I sit on the sidelines paper trading. Its really frustrating. Anyone else going thru this? BTW....for swing traders who hold 2 days to 6 months, this market is like taking candy from a baby. Sadly, I switched from equities to Forex to take a break in the last year, and we all know forex has slowed to a crawl for day traders these last 2 months. I will also say this...the best and brightest traders from Market Wizards fame, 70% of them could not make a living in todays equity climate. It was a different world in the 90's. The markets were cycling differently. Anyone agree?

Share this post


Link to post
Share on other sites
" If they would just learn how to roll into the corner (paper trade) and set their car up for the exit (proper education FIRST) they would learn how to pass the majority of people down the straight away."

 

I agree in part, I have spent time on the track myself and understand the concept of "slow in/fast out" and "throwaway corners".

 

But paper trading isn't the same as "seat time".

 

Proper education is a matter of opinion when it comes to trading. I have been trading since the 1970s using paper charts and reading ticker tape. The traditional trading education is full of myths and concepts. Those who teach about reality are few and far between. That's why I get so much "heat" on trading forums because I expose the myths and concepts for what they are!

 

I agree to the concept "paper trading isn't the same as seat time" I firmly believe paper trading to long never brings the reality of real money to the table. Its the emotional side of trading that we have to work through. I believe paper trading should be done but at some point you need to get on the track and experience the real world as well. I would just start with small shares and slowly bring the emotion up to speed. In time, you will be running your own race.

 

-Jeff

Share this post


Link to post
Share on other sites
I agree to the concept "paper trading isn't the same as seat time" I firmly believe paper trading to long never brings the reality of real money to the table. Its the emotional side of trading that we have to work through. I believe paper trading should be done but at some point you need to get on the track and experience the real world as well. I would just start with small shares and slowly bring the emotion up to speed. In time, you will be running your own race.

 

-Jeff

 

I have traded both Forex and stocks in both sim mode and a real account. For me, there is no difference. If anything, it is slightly harder to keep my self control in a sim acct because I can always rationalize that if I just triple up for this one play, I can get even for the week and if not, it's only sim anyway. Also paper trading losses make me more upset than real losses because I cant trade for real until I am out of losses in sim. Also the nonsense I hear about slippage and bad executions in real compared to sim, almost never, I mean never happen to me. I use FXCM as my Forex Broker and I get faster executions in both sim and real than with any broker I've dealt with in stocks. Besides.......when you use a strategy that allows you to place stop entry orders only,and take profits at a limit, you can take your time, not get stressed, suffer little or no slippage and enjoy yourself more than if you do everything manually. In fact, one of my final lessons in becoming a winning day or even swing trader has been, if you can use a method that allows you to set it and forget it, you will have less stress and less regrets than any system where you manually just buy with a mouse click! That lesson was worth a fortune for me. I should start a trade room based just on that method of entry/exit and I would bet I could make 33% of my students profitable.

Share this post


Link to post
Share on other sites
I have traded both Forex and stocks in both sim mode and a real account. For me, there is no difference. If anything, it is slightly harder to keep my self control in a sim acct because I can always rationalize that if I just triple up for this one play, I can get even for the week and if not, it's only sim anyway. Also paper trading losses make me more upset than real losses because I cant trade for real until I am out of losses in sim. Also the nonsense I hear about slippage and bad executions in real compared to sim, almost never, I mean never happen to me. I use FXCM as my Forex Broker and I get faster executions in both sim and real than with any broker I've dealt with in stocks. Besides.......when you use a strategy that allows you to place stop entry orders only,and take profits at a limit, you can take your time, not get stressed, suffer little or no slippage and enjoy yourself more than if you do everything manually. In fact, one of my final lessons in becoming a winning day or even swing trader has been, if you can use a method that allows you to set it and forget it, you will have less stress and less regrets than any system where you manually just buy with a mouse click! That lesson was worth a fortune for me. I should start a trade room based just on that method of entry/exit and I would bet I could make 33% of my students profitable.

 

Losing in sim bothers you more? That is purely gold. I can't wait to see what you post next. Hopefully, you do not grow up first.

Share this post


Link to post
Share on other sites
Losing in sim bothers you more? That is purely gold. I can't wait to see what you post next. Hopefully, you do not grow up first.

 

Only those over age 45 or 50 could understand the wisdom. You see, when you lose in sim, you are losing "time" which is a far, far greater commodity than money. (Unless you are blowing up huge accounts.) When I suffer a loss in a live account it means I still have the confidence I am in a winning system or I would not be in live mode! When you are still young and foolish(as 95% of us are) you put money and winning always first. So you wind up the sucker. You wind up giving away many years of your time to get someone else's money. The wise man is happy to give a lot of his money with no guarantees, so he will have so many more years to know how to earn,enjoy and accumulate more of it over his life time. Didnt Uncle Walter teach you the old saw, when 2 men meet, and one has a lot of money and one has a lot of time, the younger man winds up with the older mans amount of time, and the older man winds up with the others money!

 

When you are 50, most of us would gladly empty our bank account to be 21 again. But no one who is 21 and poor would take the wealthy mans account and be 50 years old. This is just the warm-up,son. It gets a lot, lot more painful as you head towards 60. Spirituality is not for everyone.

Share this post


Link to post
Share on other sites
Only those over age 45 or 50 could understand the wisdom. You see, when you lose in sim, you are losing "time" which is a far, far greater commodity than money. (Unless you are blowing up huge accounts.) When I suffer a loss in a live account it means I still have the confidence I am in a winning system or I would not be in live mode! When you are still young and foolish(as 95% of us are) you put money and winning always first. So you wind up the sucker. You wind up giving away many years of your time to get someone else's money. The wise man is happy to give a lot of his money with no guarantees, so he will have so many more years to know how to earn,enjoy and accumulate more of it over his life time. Didnt Uncle Walter teach you the old saw, when 2 men meet, and one has a lot of money and one has a lot of time, the younger man winds up with the older mans amount of time, and the older man winds up with the others money!

 

When you are 50, most of us would gladly empty our bank account to be 21 again. But no one who is 21 and poor would take the wealthy mans account and be 50 years old. This is just the warm-up,son. It gets a lot, lot more painful as you head towards 60. Spirituality is not for everyone.

 

Interesting response. I am over both age 45 and 50. I personally have no desire to be 21 or 26 again. I am only interested in what tomorrow brings.

 

I hate losing live, do not trade sim, but if I did trade sim, I honestly would not care if I lost. Time is very valuable, but in the market money is king. Your success in the market is measured directly by how much money you have made and not by how much time you have saved.

 

Spirituality is for those who have more time than things to do with their time. If you are concerned about wasting time, you shouldn't concern yourself with spirituality.

Share this post


Link to post
Share on other sites

So with regard to trading less....for me the concept is valid....now how you implement it is really where the rubber meets the road...

 

For me, it is a relatively easy to work it out....I know in advance where entries are likely to occur, also I keep good records and finally I know what my system is likely to produce per each time period....that is due primarily to the fact that I have done my homework, in contrast to the majority of folks who seek out chat rooms, advisories, and other resources where the primary service is to tell them when to buy and when to sell....YOU SEE?

 

So there are a couple of things to say about this thread...first as with most of the things Pristine reprentatives post, the basic premise is valid....the real question is can they provide some practical alternative, and will there be enough demand from the populace...

 

Frankly I doubt it....and I think the folks at pristine know that....they are here for other reasons.

 

As I've said before they ask good questions....and suggest valid concepts but never provide much substance after that......in other words its a promotional article....nothing wrong with that.

 

There's a simple way to trade less (and more efficiently)....but you have to be willing to do the work....I'll be showing students how to do this after I show them how to identify high probability entries...first things first.

Edited by steve46

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date : 12th December 2019. Lagarde prepares ECB debut – 12th December 2019.   Policy unchanged Projections unlikely to change much Clues about review sought Style in focus Presiding over her first presser of the European Central Bank today, Lagarde is expected to confirm once again the current policy setting, giving time to ECB to focus on the planned review of its overall policy framework.Final Eurozone GDP and PMI readings broadly supported this neutral picture, while the confidence that a deep recession can be avoided is strengthening (Figure 1) despite the fact that German manufacturing and production numbers still look weak. The exports and the overall trade are actually holding up much better than expected, which together with still strong labour markets is underpinning hopes the net exports and consumption will continue to support growth not just in Germany.Figure 1 : December German ZEW investor confidence outcome, end the year firmly in positive territory at the highest level since February 2018.As there is nothing in the data really to challenge the ECB’s overall policy stance, the focus firstly turns into the tone and presentation style that President Lagarde will have. The “risk” is that the presser will be equally uneventful as her testimony before the European Parliament. Lagarde’s team building exercise seems to have worked and at least in public there has been a pretty consistent message since she took over, which is very likely to be confirmed today. Additionally it will be interesting to see whether she will back fully Draghi’s package.Citi Bank: All key interest rates will likely be left unchanged, and the forward guidance reaffirmed. The main interest at this meeting will be the new Eurosystem staff projections, extended to 2022, to gauge whether the September package will be sufficient to bring inflation back into line with the ECB’s target over the forecast horizon. If not, investors’ attention will quickly turn to the ECB’s toolbox and what instruments the Governing Council would be willing to use and when, in order to defend its credibility in the absence of large fiscal support. The upcoming strategic review of monetary policy will also likely be the focus of many questions.Hence as reported by Citi, other than Lagarde’s style, ECB projections could also monopolize the attention. Even though, the ECB remains ready to act again and tweak all its measures if necessary, it has already done a lot and now needs to keep an eye on the side effects of the very expansionary monetary policy, while politicians need to do their bit to support the economy.The central bank won’t be reducing the degree of stimulus any time soon with many analysts supporting that this will continue until mid-2020 unless there is a major change in circumstance.Central bankers will be conducting a comprehensive review of the policy framework, however, with a special focus on the inflation target. A more symmetric definition, which stresses that the ECB can see through lengthy inflation overshoots as well as periods of too low headline rates is likely to come in the first quarter of next year. The inclusion of owner-occupied housing costs into the HICP number also remains a challenge especially as house prices are rising rapidly in some centres, also thanks to the low interest rate environment.Bund yields have nudged higher over the past week, but the German 10-year so far failed to move lastingly above -0.3%. Uncertainty on trade and Brexit are keeping a lid on yields, although there is the risk that if things go the way markets want and a phase one trade deal is confirmed and in the UK PM Johnson gets his majority, there could be a sharp rise in yields, if markets price out further easing and start to look ahead to central banks removing some of the stimulus.However this is far away for now, while central bankers are not looking eager to add further easing.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.
    • USDJPY Remains Biased To The Downside   USDJPY faces further price weakness despite its price hesitation on Tuesday. On the upside, resistance comes in at 109.00 level. Above this level will turn attention to the 109.50 level. Further out, we expect a possible move towards the 110.00 level on a break of that area, A cut through here will open the door for more gain towards the 110.50. On the downside, support lies at the 108.00 level where a break will target the 107.50 level. Below that level will turn focus to the 107.00 level and then lower towards the 106.50 level. On the whole, USDJPY faces further downside threats.        
    • Sterling Advances Barely Hours To UK Elections As Latest Poll Predicts Conservatives Win In just two days from now, a major event that will set the trend for the currency market for the year 2020, the UK elections will be held. In the face of a Brexit extension, UK prime minister had pushed for an earlier election in the hopes of having a majority conservatives win in the parliament which will make the Brexit deal pass through easily. As the clock ticks, with barely less than 48 hours to this epochal event, the newest poll by Survation conducted for ITV’s good morning Britain show predicts a Boris Johnson win by 14 pts. ahead of Jeremy Corbyn‘s Labour party. The Brexit deal seemed to give the conservatives an edge as it accounted for 32% of the vote decision while NHS gave Labour party a slight edge. On the overall, a majority vote of 42% was predicted for the conservatives while Labour had 28%. Market Reaction as the Clock Ticks Optimism looms in the market as the prediction of a conservatives win will ease Britain’s exit from Europe by January 31 deadline. The EUR/GBP pair continued to fall till the early hours of today breaking the 0.8411 trend line targeting the 0.8149 resistance level. GBP/USD pair rebounded to consolidate briefly targeting 1.3381 resistance levels. Technical analysis within a 4-hour MACD shows that both pairs may likely touch down. CAD edged slightly higher advanced by USMCA news but yet to consolidate gains. The USD against a basket of five major currencies held steady awaiting FOMC’s minutes due out tomorrow. Against a basket of currencies, NZD’s dominance is the highest. Sterling also gained momentum firmed up by approaching UK elections. The safe-haven, the Japanese yen, and Swiss franc remain pressured as major events that will shape the market for 2020 are been anticipated. On the Asia side, significant market activity wasn’t recorded as most currency pairs held steady within a day’s range. In the Asian stock market, not so much activity was recorded being weakened by recently released Chinese PMI numbers. Most of the indexes closed a little lower while US stocks rose swiftly after Friday’s release of US non-farm payroll reports. The outcome of the December 15 deadline set by the US for the signing of a preliminary trade pact will determine the week’s direction and even further into the year 2020. Also due out later in the week is UK GDP figures and ZEW released out of Germany.
    • Date : 11th December 2019. FOMC Preview – 11th December 2019. FOMC Preview No policy changes or surprises are expected with today’s announcement (19:00 GMT) and Chair Powell’s press conference 30 minutes later. It will be interesting to see if, as expected, the voting is unanimous this time round. The FOMC members have expressed significant differences of opinion during 2019 as three rate cuts were implemented.  The apparent paradox of low unemployment and low inflation, the new “norm”. The two-digit unemployment rate (U-3) in November edged down to 3.53% from 3.56% in October, and a 3.52% cycle-low in September, all below the 3.58% prior cycle-low in April and a 4.00% rate at the beginning of the year. Current readings remain much lower than the 4.2% long-run unemployment rate projection noted in the September SEP, it is expected that this estimate will be trimmed today. Headline CPI rose 0.4% in October while the core index rose by 0.2%, for respective y/y gains of 1.8% and 2.3%, versus September figures of 1.7% and 2.4%. Today the November headline is expected to fall again to 0.2% and the core remains flat at 0.2% too. The Fed’s favoured inflation gauge, the PCE chain price measure, rose 1.3% y/y in October and expectations are for an uptick to 1.4% in November. The core PCE chain price measure rose 1.6% y/y in November, versus 1.7% in September, and expectations are for the pace to hold at 1.6% in November. The FOMC’s latest median estimates for 2019 inflation are 1.5% for the headline and 1.8% for the core. Hence, the focus will be on the Fed’s new quarterly forecasts, with expectations raised and likely to be mostly bullish results with a bump up in the median growth projection and a drop in the median dot to reflect a steady stance through 2020. However, the individual dots are likely to show both, forecasts for cuts and hikes. Chair Powell is expected to reiterate the US economy and policy are in a “good place,” (a phrase he has used a number of times lately) and could sound a little more upbeat after the strong jobs report. But, he will continue to warn of downside risks. The FOMC isn’t likely to announce any new measures on reserve management operations (QE?) or a repo facility. All steady into 2020 and beyond. USDIndex remains biased to the down side but has support around 97.40 and the 200-day moving average. A breach of this key support zone brings in 97.00 and the October low of 96.85. A break over 97.80 (the confluence of the 20 and 50-day moving averages) and 98.00 would be required before a re-test of the recent high at 98.50 could be considered. 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.
    • Bitcoin Cash (BCH) Holds At The Bottom, Is The Consolidation Ongoing?   Key Resistance Levels: $275, $300, $325 Key Support Levels: $200, $160, $120 BCH/USD Price Long-term Trend: Ranging Bitcoin Cash had been trading in the large price range between the levels of $200 and $240. Presently, the coin is now fluctuating at the bottom of the chart. In retrospect, the bulls break the $240 resistance line and reached a high of $310. The coin was resisted as BSH drops back to a range-bound zone. The bears tested the low at $200 but there was a pulled back. The pullback was a correction as the upward move was stopped at $227. BCH is trading between the low at $200 and $227. The bulls are now having difficulty to move upward because of the resistance at $227. Conversely, the bears have failed to break the low of $200. Daily Chart Indicators Reading: The Fibonacci tool indicates that the coin reverses at the 1.272 extension level. BCH will resume the downtrend if the downtrend line or the support line is broken below. The RSI period 14 level 35 is indicating that the price is falling. BCH/USD Medium-term bias: Ranging On the 4-hour chart, the coin is fluctuating between the levels of $200 and $220. The bulls tested and broke the $220 price level but fell back to the range-bound zone. The price is trading below the $227 resistance level; a break is being expected shortly. 4-hour Chart Indicators Reading The market is trading above the 20% range of the daily stochastic. This signifies that BCH is in a bullish momentum. The blue and red lines are trending horizontally indicating that price is fluctuating. General Outlook for Bitcoin Cash (BCH) Bitcoin Cash is still confined within the price range of $200 and $240. Presently, BCH is in a tight range; a break above $227 will move price to the high of $240. Nevertheless, a break below $200 may weaken the coin to a low of $160. Bitcoin Cash Trade Signal Instrument: BCHUSD Order: buy Entry price: $203 Stop: $175 Target: $241 Source: https://learn2.trade 
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.