Friday, May 29, 2015

Australian Dollar Update Imbalance Spotted

Australian dollar update Hi, I have just recently discuss about Imbalance and then came up weekly chart of Euro Dollar

Australian dollar levels and spotted Imbalance




Australian dollar weekly chart has spotted a beautiful area of Imbalance and we have just recently open shorts from 77 cents area and that tells us that we can really get a ride untill price finds another support to rally counter trend and rally against the main trend.

What is Imbalance and How to define a trend with its help

<head> <title> Imbalance and How to spot it Its really being a point of concern to How to find a trend and How to maintain a discipline and look to bring some consistency in Trading. Well, this article is just going to help you find some crucial areas on weekly chart where you can afford to risk a certain amount of money and can really find a point where you can really enjoy your entry point and bag good risk reward ratio.

Example of Imbalance In Euro Weekly Chart


Now, we discuss what is Imbalance. Imbalance is what create trends and balance creates ranges between buyers and sellers. Now you might has idea what is Imbalance. Imbalance from a point to another point could be rallying and rejecting untill we find another level where strong buyers of sellers hunting for taking their profits and setting up for next moves.
As It is stated in the chart that Market start a new trend from high and fall sharply untill it found a support but then every rally is followed by sharp rally in the opposite direction and that is strong point we need to know.

Point is that we have to find an area where market start a new trend and rally against and then create a Imabalance which could be tested in future and resume the larger trend which is short term bullish and that's what has happened exactly.

Decision Points In Trading

Decision Making In Forex Welcome Traders

The point and topic of discussion today is How we find "Decision Points", in Forex. We all know that this currency market is driven by fear and we have some strong decision points which tells you about the history and price respect those areas and Market use to trap after collection Breakout Buying or selling orders. But the point here is how we can pinpoint those areas where market has taken a final decision and look to rally.

Decision Point taken In Gbp/usd Chart



Chart above shows us that Decision was taken after strong rally from bottom but it was taken at a very crucial resistance which had already cap the market

There was real chances that market fade away from this Breakout But demand was very strong and it rise from Historic Lows(Strong point as Historic Lows could be target of current rally)

Market could still easy fade away and start falling in the direction it was falling earlier and resume the trend but that decision was strong and market really ignore that in the first attempt and consumed the supply in the second

Market use to pause at crucial resistance making room for next moves or just sit here for days or even weeks but As I told you decision was made to breakout and when you see such breakouts after strong capped areas You need to start watching the charts as I mention in the text on chart.

Friday, May 22, 2015

Usd/cad at crucial resistance l Strong Reason for rejection

Trend reversal points Supply and demand trading








I will surely be trading this Usd/cad possible reversal which could give us seriously pips if reverse from this range-bound breakout and reacting to levels.

Because of the facts we have upper supply box at the top of price action and we have some strong Fakeout Bars which is still the strong supply to breach but the below separation point is strong enough to react to the lower boundaries marked and If My projection is right we could see a strong bearish momentum to reach the lower low and breach and strong bull trend could reverse completely.

I have market all the strong points on charts and this could lead to a very low risk entry but still we need confirmation and I would like to see one more test of the strong demand and then I will trade if price manage to breach that area and reverse to test the resistance once again giving me confirmation that price is  coming back to take the buy orders.

How I pick Short term Top in Euro

How to pick tops IN currencies With Fakeout Bars

Euro Reversal Chart



Hi, It has been quite a while since I have explained the technical portion of How I Pick short to medium term reversals with relation to Background.

Today I picked up a classic Euro reversal chart, Although I pick that chart up yesterday for entry but I was waiting for strong rallies through demand levels as It already happened once but today was the day for me to enjoy the free falling Euro.
As a trader one must show patience to this type of scenarios as there is always short covering in strong downtrends and Once you saw new trend maturing then You must raise your hands and have enough experience to pick your part of profits.

Picking up tops and bottoms rely totally on what background and prior price action telling you and what are crucial levels and How price behaves at those levels as Most of the strong moves faded out quickly if trend is about to resume and ignore those moves quickly.

I never favor going short at top and long at bottom untill I see few failures in the trend prior to recent Price Action. But If you can't buy low and sell high and always wait for a pullback then You must think again what are the chances that you get good risk reward and How you can increase your profit factor, Even If you are making money consistently.

Euro is the most traded currency throughout the world and all the banks have reserves to buy and get a chance to sell at higher prices and supply and demand just give you hint when they looking to sell.

Dollar enjoy the ride against all G10 Currencies today, It often happens with strong trends as we just need a glimpse of triggering and Euro pause was also strong clue that market is expecting too much out of Economic data which did not met the expectations and hence price reverses.

With strong hints of matured trends(one must go through the blog to see How to trade mature trends) we must wait for this type of day when lot of bank officials are due to speak and present their views on economies and give us hints of the things to come in the coming weeks or months as It often resume the earlier strong trends or give us a strong opportunity to trade pullbacks at higher or low prices.

Institutions and banks always obliged and triggered as they always look to sell when they don't see things improving in coming days and that is why avoiding lot of indicators can give you exact entry price as they often react late when trend is finished and has very little to offer and that is why I always look to react at importnat levels.

Eur/usd and usd/chf Update Strong Correlation

Hi Traders,
Its Quite a while since I have updated the blog after the Aud/jpy which was faded away by several attempts.

I have spotted the activity in Euro and Swiss Franc which are strongly correlated and it can be seen in charts of both the pairs.



Eur/usd chart Strong Breaks with Strong Engulfing pattern 


Correlation In Forex








Its quite visible that both of charts are quite similar and the activity in the both charts means that strong money is buying and selling them in the opposite directions and we need to find out area which can give us maximal reward after strong sideways movement .

I would recommend to take one entry and not use both because this will double your loss but if you still can manage both with the tight stop then strong movement can be spotted in both of them as origin is still quite far away from current levels.

Sunday, May 17, 2015

Aud/jpy Update Room for Trends is still there

Intraday trading supply and demand strategy  







As We have seen so many time Sellers pick up the trends and do tend to pick profits at crucial levels and then price is often continue to spike up till it found conditions to reverse

Chart of Aud/jpy is making same efforts after clearing strong supply areas and now testing them silently to test If there is enough demand for the price to continue its way up.

 I would really be watching this pair closely as more than potential trade is on the cards if Bulls attack this breakout level again. There is no clean demand but there still need to evade the supply it has.


Tuesday, May 12, 2015

Currency Trading Level by level and Few trades updates

Correlation in trading and Levels of Forex Trading Hi, Recently I have post few articles on few forex sites about currency correlation and what is level by level trading. I thought of only one thing while thinking of Correlation is that its all about global demand and when few pairs are strongly correlated then they move in tendum.

By moving synchronizing I mean to say is that Long term trends as Aussie and Loonie (Canadian Dollar), are strongly correlated as they are driven by global risk and if global economies are growing then demand of both the currencies are strong and vice-versa.

I don't really trade correlations or hedge both of them if they went against each other on a given day or a given week or month. But still we have to be sure what we are doing in trading because It is not recommend anywhere unless you are vastly experience and have good solid confirmations in the past the doing such acts can really bring money in long run.

So, Lets talk about trades updates and I have really got one strongly going my way but due to some busy schedule I get in late but still it was good enough when you are looking for direction and pairs went here and there looking for buyers and sellers. In the meantime One currency which was in strong demand that was Sterling and when there are strong swings and clear path sterling really moves a lot in a given day.

Parliamentary elections and BOE rate decisions and Hawkish comments really put a lot of steam behind the current sterling movement and my currently pick of gbp/jpy is the result of such strong pound movements across the board.

Gbp/jpy Trade Update.





As You have seen in the chart that all the move from low to high are completely synchronized level by level and when you have such clear swings telling you so many things than moves that test previous zone while compressing then there are lot of hints come together when you saw sudden spikes and no such great sell-off.



Recent, Move was a great example of Imbalance and when you trade according to you what market makers are eyeing then You must do one thing and that is look for Imbalance and that should not disappear and Every liquidation break in such strong breaks are often bought with strong demand.

Friday, May 01, 2015

Trade Update Usd/jpy

Usd/jpy usd 30 year bonds










Hi Traders,

Why I always love trading currencies than stock or future trading, because currency trading is the best way to predict the predetermined moves to levels as it is very easy to  spot  increasing demand.

Same rules are used to spot absorbing supply but there are different way we can use How price accumulate and How it is distributed. I will cover those two methods in my posts in coming days and weeks.

Chart that I have posted above is a perfect example of Rising demand  as we have witness some weak rally to demand  as Price use to Compress twice while it test the demand level and most importantly the spikes out of that demand area after few attempts at supply fail.

 Price not willing to fall as downside rally unfold

Demand levels usdjpy april 2015







As  you see in the chart that downside rally are slow to unfold and upside rally are more powerful and also price rise most often when it test the area and last spike from that areas was the most powerful and price really carry that spike to break above the supply area. Giving us lot of Intraday opportunities to go long as price establish new demand areas below that last spike.



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