How to find Imbalance on a chart-- Supply and demand Indicator

It has been quite a busy week but at the end of the week as it happen mostly on last trading Friday of the month and last day of the week, currencies starts moving erotically and usd/cad was no different.

But what different has happen as it was on the cards and when you spot smart money around you can expect movement in every correlated or non-correlated assets class pair and as Canadian dollar is directly correlated with Crude, whose downside pressure was on the move suddenly we see profit taking and GDP numbers from US and Canadian Area was surprising factor in the overall context and hence strong movement was already witness on the chart.

Ways to find Imbalance on the Chart

As you all might wonder, what is imbalance and I have stated it so many times in my blog Articles that strong trend reversals out of nowhere and then minor bull bear fight to move the price is the "Imbalance", area on the chart and we all must eye such locations and canadian dollar recent up down movement was a great clue of something will give away at some point and today was the day.

IF you see the chart clearly I have mention two areas where strong set of orders are seen after price make a new high and fail to hold on those highs are first clue of collecting all the buy orders against the big sell orders and this week new multi month high was no different as price engulf that with pressure and after that you just have to find the approach to supply and QM area to short and where risk to reward should be atleast 5-6 times but pair has fallen more than 150 pips so that rewards was never expected.

How to Master the Art of Swing & Scalping Trading Techniques in Forex

Its has been a struggle for new traders to how to choose from swing trading and scalping as short term risks are always better for them to get small profits and build their accounts and they try using lot of indicators and expert advisors to see the results if it suits their trading style and yet it never did they never been able to admit that there is no such path of success that leads to shortest way to get there and scalping is such an illusion that traders find themelves very difficult to get out of those short term money making techniques.

How to use selective approach and be versatile in Forex

As a young trader, everyone use to try everything, atleast for first few years and it has been happening to everyone of us, not to every 2 or 3 out of 10 traders but 9 out of 10 traders using same techniques and mistakes over the years, but technology has changes and everything is made available so easily these days, but choice and control depends on traders as it always been the case.

But how and when is always the biggest question arising out of minds. So, lets start this journey with few checklists that we always need to be aware of while picking up choices between swing trading and scalping.

To start off, scalping is a technique which we use to trade to pick up small profits by entering a suitable pairs for several times a day .let's say scalp euro for 10 pips with stop 3-5 pips and do that 3 to 4 times a day and you succeed half of the times. So risking 5x4=20 to make 10x4=40 which means reward should always be 2 times or more.

In the process mentioned above even If you win half of the times you still make 20 pips and even if you loss three you still loose only 5 pips for the day and it is easy to recover next day and hope you win 3 out of 4 and that process continues and you start to believe in yourself that slowly and surely you can built such techniques and from time to time apply filters to make these scalping technique much improved and easy to use to identify setup to make a sound living out of Forex.

That statement tells us the importance of money management skills that we use to implement in our trading no matter what strategy we use and no matter which trading style we adopt but now the question is which strategy is so powerful that help us identify the direction and pinpoint stops and profit target that we can use the entire day or even a single session on day to day basis.

Simple answer here is adaptability and our accessing power tells us pairs that are trending and for this we should not be limited to a single cross and pick multiple pairs that are trending and find trade locations which tells us the probable profit potential.

Simply pick gbp/jpy and pairs which trend strongly everyday and yen paris hardly offers extended choppiness and are best to use while swing trading and necessary tools you need to pick up trend with entry and exits are being discussed in details below.

Necessary Tools to pick for Swing Trading

You can pick any indicator for scalping and for this purpose I pick bollinger bands, RSI and fibonacci.(settings are not important as you can use default platform settings)

Trade Diary for the week july 2016 l Gold Future Euro Exchange rate.

It quite a busy outing altogether for currency traders with risk on and demand for safe heaven this month and I still would expect situation to remain subdued for the risk on trades.

Trade Ideas for the Gold Futures

I posted two posts on gold future updates around 1380 and 1332 and both the conditions were fulfilled and price is now in PA zone and I would expect price to remain volatile and react to recent new supply and I would expect the rejection and towards the target around 1305 area

[Also Watch :- Recent Articles on Gold futures ]

Euro dollar trading FOMC Statement

Euro dollar is moving in narrow range and trading just around the range low ahead of 1.0900 support and I would like to keep an eye if there is any rejection from that support and price manage to stay above 1.1050 for a move towards the range high and then possible new direction to new high above the range.

With recent Price Action and FOMC statement due to release next week, I would like to see price reacts to support and we can see bullish price Action in Euro, but still price action is very bearish and I would post an article after the report will be published and Euro is surely to find direction after the report as there is not a lot happening from ECB, and traders are really looking for Fed officials comments for the direction in Euro exchange Rate.

This week is full of fundamental analysis with focus shift on FOMC statement as talks of September hike is really putting risk on as after what happened after "Brexit" referendum has put lot of pressure on Federation and If there is any report telling that of shifting the rate hike to next quarter would really put pressure on U.S dollar and it can retreat from recent levels and Australian dollar would be bought from the recent levels but due to recent talk of Rate cut and recent price action can dilute the comment and we can see price don't react as expected.

Focus is shift on next RBA meeting next week

Trading such scenarios is quite profitable when Price Compressed to supply and rejection are followed by choppy and sideways price action as Pair look for direction ahead of strong fundamentals report and If expectations are not met price usually lack supports and bearish pressure is quite imminent.

Chart

Canadian dollar is all set for new direction as we saw a break above recent range and retreat from these levels but Price has strong support as mention in the blue boxes in the chart and If price manage to break below these areas then I would like to see the approach towards the supply and I would still maintain my bearish outlook for the canadian dollar towards my next target 1.2630.

How to trade Rejection in Forex with recent price action in Canadian dollar

Price has manage to react to the strong areas and rejections are quite volatile and this confirms that new high would probably show the same momentum as it has show in recent weeks.

[Also watch:- How I manage to Pick bearish Price Action In Gold Futures ]

Comex Gold bulls facing headwinds around 1344- Trading Gold Futures

Hi, Quite a while since I update the blog and the reason being quite a dull and choppy price action and now I am watching gold for the past 7 days or so and recent price action facing headwinds If we see a rejection of 1342-45 area, and this bearish rally would continue towards 1295, which is I think strong handle and there would be a decent fight between bulls and bearish to protect this area, but for the time being focus has shifted towards 1345 area and below 1327 which I think need to be cleared first and then we can see more bearish price action to follow through next week.

Rallies followed by Reversals

We do need to understand the overall structure before we can make any decision in trading

Reason I am quite skeptical about this Gold future rally is that Whenever we have strong liquidation break to the upside, we have seen substantial selling interest which increase with minor rallies and Whenever we see price approach a particular supply or demand area after clearing opposite demand aka supply, we see price tend to behave dramatically when It finally gets to the origin of the move and this time we already have a retest where we see compression towards 1345 area, followed by rally towards 1310 area, and recent rally is strong from the lows but I doubt whether It will continue.

Trade alert Australian dollar possible push towards 0.7714 l Trading employment data

Trading Australian employment data - Forex News Trading

Hi, i will update the text later