U.S Dollar Index-- DXY long Term View

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

Usd Dollar Index Weighted Value against other Major Currencies

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

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

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

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

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

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

How we can use US Index In Trading Currencies

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

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

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

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

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

Technical Analyze of USD/jpy

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

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

US dollar update 4th October 2016.

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

Trading Gold Futures Contracts

What does Gold Futures contract means

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

Market Participants facilitate trading without Physical delivery of Gold Futures

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

Why Gold Futures or any Other Precious Metals Futures

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

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

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

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

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

Trade watch Gold Futures

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

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

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

EMA trading system setup or Moving Average Crossover system

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

Look at the following chart for example.

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

Filters to be used in EMA Trading Strategy

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

***Entry Should always be made at retest

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

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

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

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

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

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

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

200 Period EMA filters the Noise

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

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

Trade EMA with high low, ranges and breakouts and retests

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

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

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

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

How to choose best Forex Trading Strategies l Forex Secrets

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

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

Most Famous and best strategies to Trade Forex

***EMA Trading Strategy

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

***Fibonacci strategy to predict market movement

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

Can we really make a living out of Forex

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

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

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

Also Read:-- My Best Trade Recommendations

How to Rate a Forex Trader Performance

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

Forex Leverage a double edge sword

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

Trade Setups and Trade Diary for the Next Week

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