The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. This article will look at the potentially higher probability forex trading opportunities of the bull flag pattern.
Learn to trade the bull flag pattern: Main talking points??
GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall healthand potential growth of a country.Consequently, greater volatility in the forex market is closely observed during the GDP release.
Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.
The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA).The MACD displays a MACD line (blue), signal line (red) and a histogram (green) - showing the difference between the MACD line and the signal line.
The MACD line is the difference between two exponentially levelled moving averages – usually 12 and 26-periods, whilst the signal line is generally a 9-period exponentially smoothed average of the MACD line.
These MACD lines waver in and around the zero line. This gives the MACD the characteristics of an oscillator giving overbought and oversold signals above and below the zero-line respectively.
The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Find out about the history of the Fed, its influence on USD and how to trade Fed monetary policy decisions.
It’s not uncommon for forex traders to approach trading with the aim of collecting ‘x’ many pips a day from the market. Some may even consider adopting a strategy that only makes X amount of pips per day. However, there are complications that arise from this approach and setting such unrealistic goals.
This article will answer the question: “how many pips per day?” and explore the best approach to using pips – considering market fluctuations which affect daily pip movements and how to capitalise on this with a solid trading strategy.
FOMO – Fear of Missing Out - is a relatively recent addition to the English language, but one that is intrinsic to our day-to-day lives. A true phenomenon of the modern digital age, FOMO affects 69% of millennials, but it can also have a significant bearing upon trading practices.
For instance, the feeling of missing out could lead to the entering of trades without enough thought, or to closing trades at inopportune moments because it’s what others seem to be doing. It can even cause traders to risk too much capital due to a lack of research, or the need to follow the herd. For some, the sense of FOMO created by seeing others succeed is only heightened by fast-paced markets and volatility; it feels like there is a lot to miss out on.
To help traders better understand the concept of FOMO in trading and why it happens, this article will identify potential triggers and how they can affect a day trader’s success. It will cover key examples and what a typical day...
A popular trading expression is "the trend is your friend." This expression has stood the test of time because trends are critically important to any trading plan. Forex trendlines can be seen in almost any charting analysis due to its usefulness and simplicity. This article provides traders with an in-depth guide on what trendlines are, how to draw them and how to apply this when trading.
The US Dollar steadied against the Singapore Dollar following losses since July. USD/SGD was unable to clear the 78.6% Fibonacci retracement level at 1.3753. That reinforced the price as key support. Meanwhile, the pair was unable to hold a close under the 100-day Simple Moving Average (SMA). Still, the near-term downtrend remains in play. A breakout under these key support levels would expose the May low at 1.3660. Otherwise, a turn higher and above the 50-day line could open the door to revisiting the July peak.
Chart Created in TradingView
The US Dollar extended losses against the Thai Baht. However, USD/THB left behind a couple of signals that the near-term downtrend is losing steam. The first is a Hammer candlestick pattern. This is a sign of indecision as prices tested the 50-day SMA. The latter also held, reinforcing the dominant uptrend. A confirmatory close under the line would undermine the Hammer and open the door to extending losses. That would place...
- Oil prices finished last week by setting a fresh six-month-low, testing below the $87.50 level. After a bounce on Monday sellers came back in this morning to temper the move. The big question now is whether bulls can press through a major zone of prior support-turned-resistance sitting overhead. The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
The unexpected deceleration in US inflation rates in July is weighing down US Treasury yields and cutting down Fed rate hike odds in the near-term. The odds of a 75-bps rate hike in September have dipped back below 50%, where they had been for the past several days in the wake of the blowout July US jobs report. The knock-on effect in financial markets has been a weaker US Dollar, with the DXY Index breaking below multi-month uptrend support and USD/JPY rates turning lower towards the August lows.
The drop by the DXY Index has seen the bullish outside engulfing bar/key reversal low taken out, suggesting that the recent bullish impulse has failed. Concurrent with the break of the uptrend from the late-March and late-May swing lows, there is growing technical evidence that a near-term top has been carved out. Momentum is turning bearish quickly. The DXY Index is below its daily 5-, 8-, 13-, and 21-EMAs, which are aligning in bearish sequential order. Daily MACD is...
- July U.S. inflation was unchanged month-over-month, well below consensus estimates calling for a 0.2% increase. Compared to one year ago, headline CPI eased to 8.5%, versus 8.7% expectedCore CPI advanced 0.3% on a seasonally adjusted basis and 5.9% in the last 12 monthsWeakening inflationary pressures are encouraging, but may not be enough to trigger a Fed’s monetary policy pivot in the near term
- German inflation moderates but food prices rise higher in the euro zoneEUR/USD and EUR/GBP technical analysis ahead of US CPIRisk events: US CPI, PPI and Uni of Michigan consumer sentiment data
Cable is largely unchanged after yesterday’s close as markets remain apprehensive ahead of U.S. inflation data later today (see economic calendar below). With nothing scheduled for the UK today, CPI takes center stage with expectations at 8.7%. After reviewing the Cleveland Fed’s nowcast data, many economists are looking for an actual issue around the 9% mark which could see the dollar bid post-CPI. Last week’s stellar NFP print did not reveal itself in dollar price action and a upside surprise could definitely help dollar bulls claw back some lost gains this week.
GBP/USD ECONOMIC CALENDAR
Source: DailyFX Economic Calendar
The stock market often reacts quickly to interest rate changes – certainly more quickly than many other areas of the economy, which may take up to 12 months to catch up. This can mean many opportunities for traders who analyze stock markets, both when buying and holding or employing a shorter-term speculative approach.
Interest rates and stock prices are closely linked: In this article, we will discuss interest rates in general before moving on to explore the overall impact they can have on stocks, and how to incorporate this information into analysis.
What is the NFP?
The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.
NFP releases generally cause large movements in the forex market. The NFP data is normally released on the first Friday of every month at 8:30 AM ET. This article will explain the role NFPs play in economics and how to apply NFP release data to a forex trading strategy.
Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. This article will cover the following key areas about psychological levels and round numbers in forex trading:
Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic, which is problematic when making trading decisions.
So what is FOMO in trading? It’s the fear traders get when they think they might be missing out on big opportunities, or that other traders are more successful. Traders who understand FOMO, where it comes from and how they react to it are in a strong position to tackle it at its root cause: the innermost workings of their own mind.
This article will help you get to grips with your FOMO, offering solutions to stop it in its tracks – or even to prevent it from arising in the first place.
Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Being aware of these errors, can help traders become more efficient in their forex trading. Although all traders make trading mistakes regardless of experience, understanding the logic behind these mistakes may limit the snowball effect of trading impediments. This article will outline the top ten trading mistakes and ways to overcome them. These mistakes are part of a constant learning process whereby traders need habitually familiarise themselves with them to avoid repeat wrongdoings.
The video included highlights six trading mistakes, however there will be more covered in the article below. It is important to note that trading comes with the inevitability of loss, but these may be minimised with the exclusion of human error/mistakes.
Prior to committing to forex trading, consider...
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