December 2012 Blog Posts (25)

Secret Trading Tip #7

Five Ways to Stay Focused In Scary Markets

In the fallout from the 2008 global financial crisis, there have been moments that have been driven by pure fear. These are the moments when it can be hard to maintain your composure and trade your plan. Unfortunately, these big days are the times when you need that composure the most. Here is a quick lesson in why it is important to keep focused in a scary market and how to achieve that…

EUR/USD: consolidation unfolding

Eurodollar has stopped rallying and is in a consolidation phase. Currently it is falling within its range and it will probably fall further to the range lows at about 1.3145. There is a possibility the consolidation will continue unfolding and then break higher, with 1.3500 providing the next upside target for the pair, alternatively deeper declines could see it fall to support at 1.3119.…

Merry Cliffmas

boy-disappointed-with-gift

 With Friday’s down market, the reality has sunk it that it may very well be left to Santa to find a few trillion in spending cuts. Volume was high with triple witching expiration, but the markets headed south after Boehner’s failed plan B Thursday night and then Congress’ departure for the holiday.

They will return on December 27th but this means that they have four days after the Christmas…

Secret Trading Tip #30

Advanced Technical Indicators - Bollinger Bands

Let's take another look at a more advanced technical tool - Bollinger Bands. These were developed by John Bollinger in the 1980s. In simple terms, they use a simple moving average and standard deviations to give a different perspective on potential highs and lows.

Bollinger Bands have a middle band and two outer bands.

The middle band shown on this indicator is a moving average,…

Dear Trader,

As you may be already aware FX trading is all about money management.  If you don't trade without a goal in mind, then you're guessing the market.  While guessing can sometimes be productive, it will not last longer.  Per our records so far this week we have beyond surpassed our weekly goal.  There's currently a USD/CHF trade alert which is positive around 40 pips.  On the other hand, we have gone 5 for 5 on trade alerts this week on 5 different pairs EUR/USD,…

EUR/USD: continuation higher

The trend up continues, strengthened by the break of the 1.3168 highs. Price is now also starting to breach the upper channel line of the current rally - a sign of surprising strength. It is also breaking above the weekly and monthly pivots clustered at 1.3258. If these fail then the next upside target might be 1.3485; any weakness, however, would be likely to return to the 1.3230-40 consolidation zone.…

EUR/USD: Technical Analysis

Eurodollar continues to consolidate in a pennant or triangle formation. It will probably eventually break higher, with a decisive move above the 1.3187 highs acting as confirmation, or possibly even 1.3195 for added safety. Then it should reach 1.3255 where the monthly and weekly pivots coincide. Obstacles below the pattern may impede downside, first at 1.3119 and then the consolidation zone between 1.3080 and 1.3110.…

No Deal

argument-cartoon



After the markets had closed last Friday, reports surfaced that House Speaker John Boehner went to the White House for a special meeting with president Obama.  Would a “fiscal cliff” deal be reached as Congress left for its Christmas break?



Over the weekend Congressional aides told reporters of the weekend meetings and what was said.  Mr. Boehner once again inched closer to what…

Secret Trading Tip #22

What is day trading?



Day trading is probably one of the most misunderstood labels in the industry. Some people might picture a random trader acting like a cowboy just buying and selling with pure abandon. Others might imagine a seasoned vet pouring over charts and analysis, looking for a chance to try to scoop up a few points here or there. Let’s set the record straight on what day trading does…

EUR/USD: Technical Analysis

Eurodollar has been going sideways today with no firm trend in either direction. There may be a double top price pattern visible on the hourly chart, with a neckline at 1.3055 and a downside target at 1.3015. The short-term trend is still up, however, and favours more upside but any bullish potential is capped by resistance form the monthly pivot at 1.3120.…

EUR/USD: Technical Analysis

The triangle on eurodollar on Monday ended up breaking out higher and fulfilling its 1.2975 target. It will now probably correct back in a final wave lower, perhaps to the 50-day MA at 1.2925, or maybe even to support at 1.2905. After that it is possible the up-trend will resume and target 1.3000 first and then probably between 1.3060-80 where an old trend-line may resist further gains.…

Worm in the Apple

apple worm

The financial wheel of misfortune landed on the Apple stock space Friday, even though the broad market ended up okay. Has the once sacred AAPL suddenly become the forbidden fruit?

After flirting with a closely watched area on the charts that analysts refer to as the "death cross," APPL has fallen from the tree as the stock's 50 day moving average is now below its 200 day moving average, and is off more than 23…