GBPUSD - At the end of last week GU traded to lows of 1.32 on the brexit vote, before retracing substantially to 1.39 by the end of the day. - GU retraced 600-700pips after the brexit event IMO solely as investors took profit from their shorts (which causes buying) - thus there was no structural reason for GU recovering e.g. it was that 1.32 had mispriced GU...
Indicators to check BEFORE GBP Shorting for confirmation I also suggest using two other key pieces of information BEFORE shorting GBP. 1. Use USDJPY as a measure of market risk appetite and stability - As you can see below UJ has traded with a tight 38pip range vs GBP$ at 180pips. Therefore we can use UJ as a measure of stability and risk appetite: 1)...
Thought id put a piece out as my guide for the week for how to trade the 23rd UK EU Referendum vote. IMO the first rule and most important is - DONT TRADE THE VOTE. Trying to guess the answer is like trying to win the lottery, so instead i advise taking a position on the volatility , as volatility doesnt discriminate, it trades both ways. Trading the...
We had the best possible outcome for FOMC's Rate decision and Fed Yellens speech which was neutral IMO as expected, with the Economic Projections being dovish, downgrading the projected rate hike cycle. We now look to BOJ. Trading strategy: LONG USDJPY (possibly short also GBPJPY for longer term investors or investors that want to hedge against a hawkish...
In the first 2 hours of trading UJ managed to carve 30 pips lower to 106.3 but since then UJ has edged higher to 106.8 highs (atm 106.7). Whether we will hit the target at 105. im not sure, the starting data has been mixed. Whilst we ticked lower 40 pips which was a good sign, we quickly pulled back all of them and $yen is now trading 50 pips up from the lows -...
Google C-Class shares i am bullish over the 6-12m, hence I am buying any 5-10% pull backs from highs. Goog has been moving sideways but i think it has just started a cycle higher, in which it is about to make a higher low at 715 before moving up again to 750+ 715-750 is a 5% move hence i am interesting in buying at this price with reward skewed something 1.5:1...
Though id post as just one example, perhaps the most obvious, that shows how heavily the JPY is considered a risk-off asset and to show the clearly, since the SPX is a risk-on asset, that the JPY is negatively correlated with the SPX. In times of market fear/ uncertainty, YEN is sought out, just like bonds and gold, as a safe heaven asset. The theory behind this...
as you can see below 8/12 months of the time the JPY is heavily negatively correlated with the spx, normally between 80-90%, there also is a pattern, that the JPY/SPX stayd negatively correlated for 8 months before turning positively correlated for about 4 months, this cycle continues unbroken below.. as we can see by the red correlation being above 0, The...
somethings not right - All time low volume too, JPY booming, Bonds rallying - low liquidity is artificially driving the market up??? The market will tank soon... the financial conditions are gonna tighten like post 2009 this bull move isnt backed by non-risk assets in true bull markets we see 3 things 1. Low GOLD 2. LOW JPY 3. Low US Bonds today we only see 1....
If that next order block doesn't hold The Dollar looks likes it could be pushing for another leg up, reaching for liquidity just above 96.40 if it gets there. Could be looking at some divergence on the way up. Waiting for the Sell signal. Also, if you notice the times of all the arrows, do not think that is just coincidence do you? Institutional Order programs...
This is what I'm looking at for BTCUSD3M on OKcoin. We have the area 360-365 which is a +OB, nice confluence with FIB OTE. We recently made two pretty much equal lows.We should have liquidity below, people who got in at +-360 and moved there stops below these recent lows are an easy target for the MM/woodchipper. If we hit this area and trade away from it...
The chart explains itself, EURGBP-0.07% went up and it seems that it's now forming a sell model. I think it will be going for the weekly liquidity.
Generally speaking, I like earnings plays that will have juice in them with a defined risk setup (e.g., iron condors). This ordinarily means that some of the lower priced fare on the plate just won't produce enough juice for me to bother with unless I open up the floor to using undefined risk strategies like short strangles, which ties up buying power I like to...
As a small time trader I have no problems with liquidity, so I've been thinking why not take advantage of that and that is this idea. This is my thoughts the morning of Aug 27,2015 So oil companies are down we know that but last night we had a big up move in oil and that would cause short covering today. As of the close last night I had no positions to benefit...
The rapid decline in price was caused by NY traders flushing out stops on long positions and filling their own orders. Price has bounced off this order block a few times so it could still hold stong.
NY is flushing out stops and getting orders in, potential pips to be had in a long position.
USD/JPY has slowly been inching higher towards 8 year highs with recent sentiment pertaining towards both the USD as well as the JPY. With anticipation towards USD interest rates later this year, traders are attempting to "front run" the FED in order to gain competitive pricing per the infamous "carry trade". However, strength of the JPY has also seemed to have...
We can see the rally retracement already exhausted. Fibonacci rally near reaching 261.8 / strong critical resistant there. XAUUSD looking for high liquidity at level 1222 something. Wait for some momentum after the price reaching 1222 +- and target to 161.8 short fibonacci. I choose to go short at 1222 level. You?