Trading Forex and FX in Singapore

Hi Traders, another week, another surprise. Or maybe it is not a surprise after all for some of you. Lately, there has been these 5 words that have got investors and traders got caught unawares, these words are “the market is bottoming out”! OMG, what? Are they out of their minds? Or maybe it is a spoof to encourage investors or traders to put money into the financial system to bail themselves out, have you thought of that? Lately, the fall of oil has caused the dollar to strengthen a bit, and the so-called economists states that the financial system is working it’s way out now. What? Did I hear myself wrong? LOL, oil price is a political issue, or to be precise, geopolitical. Oil price will not see a cheap at $40 ever again, it will remain at a $100 area. Today, I am going to show you some simple technical analysis based on the Dow Jones Industrial Index, it is so simple and accurate, let’s just pull out the weekly chart…..

You would have already read my previous post on the Dow Jones and where the index will be heading. Well, what do you know, it has all been played out as expected. The Dow Jones Index bounces off nicely from the gartley and Head and Shoulders area at 11,000 . Then it moves it’s way up to a strong resistance and came back down again. The short bull is only a pullback, nothing much. Next Dow Jones may move back down to the 11,000 area. If this time Dow Jones don’t hold at 11,000 , then I am afraid it will crash down to 10,000 . Traders, listen up, weekly chart is some pretty powerful stuff, don’t neglect it. The higher the time frame, the more powerful it is going to be.

Say this after me out loud “I am a trader that trades with discretion, I am a discretion trader. I don’t rely heavily on indicators, I only look at price action as price action tells me the whole picture.”

Trade Well

Hi Traders, have you seen the gold price lately? I hope that will not give you a heart attack. I have wrote previously that the $771 is a very very important support, if gold price ever break this support it will be a gone case. But let me shine some light in this gloomy picture. Let us now pull out the Weekly chart of gold price….

I see a Butterfly pattern, this butterfly chart pattern is a price reversal  chart pattern, which means it’s bullish! And I see price touching nicely on the 150 MA (moving average), and it is sitting nicely on our very very important support of $771! With these 3 confluences, there is a strong possibility that gold price will pull back from this recent free fall.

But how much will it go? I would say it will hit a strong resistance at $845 and price will hesitate to penetrate that area. If I am still in the trade, I will sell on strength and sit on the sidelines, as the market is highly volatile.

What if the gold price is so bearish that it ignores the butterfly pattern? Then I think the next stop will be $720 area, this is where the next level of the butterfly pattern stops, which is also where gold price will touch the 365 MA moving average. So now you are facing 2 confluences here.

Lately, gold price has been reacting heavily on the oil price sentiments. You can see it by looking at the reaction of the Dow Jones. When the Dow Jones Industrial Index is moving south, the Dollar is still holding strong. But the oil is sliding, so is gold. In a normal environment, the Dollar correlates with Dow Jones, but lately it does not, which means the Dollar is taking cue from the oil price, and thus the strengthening of the Dollar pushes the Gold further downwards south. In trading, you must not just rely just on Technical analysis alone, you need to read more on news and fundamentals on the market environment to have a feel of the market as a whole. As you know that the world’s market is related, whether it’s commodities, forex, index or stocks; this is call Intermarket Analysis. I hope this is not too much, but in the future, I will share a bit on intermarket analysis, and that is all for now.

Trade Well

ps. View all my posts on spot gold trading, learn how I profit from them, study them…..

Spot gold trading 1

Spot gold trading 2

Spot gold trading 3

Spot gold trading 4

Spot gold trading 5

Spot gold trading 6

Hi Traders, hope you guys are trading correctly, do not rely heavily on indicators, trade with discretion and price action tells you the whole story. If you are not having any success in trading forex lately, I suggest you go and read my 78 Essential Forex Strategies, or read my previous posts and have a feel of how I trade the forex markets. I am not saying that I am the only one that trades correcty, what I am saying is that you can learn some stuffs here, or you can incorporate it into your own trading strategy. Enough said, today we are talking about EUR/AUD. From my chart analysis, I see this currency pair euraud is bearish. Let’s analyze the chart together, pull out the Weekly chart first…..

Wow!!! what do you see? I see a very NICE chart pattern here. See the 3 candlesticks on the HI, it seems to me the market is having a hard time punching through 1.7370 zone. See how the price gets rejected strongly after hitting that area. You can also see 3 Strong Strong rejection candle, you can call it the Inverted hammer candlestick, but down here everyone knows that it’s a price rejection candlestick. It is so so bearish, and what do you look for in such market environments? Yes, that’s correct, you are looking to sell. You can see that we are doing a Top-Down approach chart analysis, this top-down chart analysis was made famous by Alexander Elder called the Triple-Screen Trading. But why buy the book and spend days learning it when you can drop by here anytime and learn for free?! LOL….. Oka, we have settled the Weekly chart and we are looking for a SELL, let’s pull out theDaily Chart now…..

WOW! It’s another Inverted hammer candlestick or price rejection candlestick. It seems like it is getting more bearish as we peak in further. The Green line you see on the Daily Chart is a Tom DeMark Trendline, I only use it for confirmation of trades. How it works is that it uses the previous 2 highest hi or lowest lo to define a trendline. And I can see that the price has broken down from Tom DeMark Trendline, and the highest possible cause for the price action is to pull back towards the Tom DeMark Trendline and continue it’s course southwards.Okay, now we have a bearish confirmation on the Weekly chart, another bearish confluence on the Daily Chart. Now let’s look at the H4 Chart…..

Well well well. It is an old school Head and Shoulders chart pattern. Now we have a convergence of 3 bearish confluences on the weekly, daily and H4 chart! I will definitely be looking into selling this currency pair. But please do not jump in and enter a trade just by this chart patterns. Wait or the right shoulder to form on the H4, meaning wait for the price to make a swing hi, then it will qualify as a right shoulder of the head and shoulder pattern. And you should also wait for a strong sell signal on the candlestick before making a trade. Yes, you may think that this is boring, and this is how professionals trade the forex markets. If you are looking for some excitement, you can do scalp the market, which I don’t recommend you doing that as I don’t believe in scalping. Scalping to me is gambling. Okay traders, that’s all for now, I will bring in more trades so that everyone can join me in my trading journey.

Trade Well

Hi Traders, have you been shocked at the recent free fall of gold price?! It is really too fast too furious. The selling off of gold is too extreme, it may mean that investors are lacking interest in Gold. Another reason for this fall of the gold price is the recent rise of the Dollar. Gold investors are just shunning gold itself, even with the rise of oil price due to the fighting between Georgia and Russia, has not hold up gold price in its support. Historically, when oil price rise, so will gold, they correlate. Let’s look at the weekly chart of gold

Look how bearish and shocking the fall is. The chart looks awful! The next support will be $770 confluence of the 150MA and the previous support. If this support is broken, I say good luck to those who are holding gold. The gold price has even broke through the Head and Shoulders completion zone. This is too fast. The only hope right now is to wait for a signal on $770, pray that it holds.

Trade Well

Some links below for previous posts on gold trading, study them

Spot gold trading 1

Spot gold trading 2

Spot gold trading 3

Spot gold trading 4

Spot gold trading 5

Spot gold trading 6

Hi Traders, here’s another gold story. And oh, if you missed my gold trading signals I told everyone to sell on $960 and $990, go back to my previous posts to see how it is possible to trade gold using technical analysis. Is it the time to buy gold again? Let’s see the daily gold chart…..

Did you see a Head and Shoulders pattern? Yes, it is the Head and Shoulders reversal pattern! To complete the formation (and I think it is going to), the gold price has to go down to $839, There is another good support and resistance at $845. You will also see price coming down to hit the 365MA moving average. So traders, if you think that gold is going to $2500 like the gold bugs said, this may be your chance. But please don’t just jump into the trade based on my technical analysis, do your own homework, be responsible for your own actions. Even though I have made some good profit on gold, but you must know that when gold rises, US$ falls, so it is actually a hedge against the dollar. Unless you buy a substantial amount of hold, you will not see much gains due to the falling dollar. Also watch out for the sales charge, fees and hidden costs when trading gold or gold instruments.

Below are links on spot gold trading, study them

Spot gold trading 1

Spot gold trading 2

Spot gold trading 3

Spot gold trading 4

Spot gold trading 5

Spot gold trading 6

Hi Traders, have you seen the Dow Jones lately? Well just as I have wrote on my previous post, the Dow Jones formed a Head and Shoulders pattern on the weekly chart. And now, looks what has happened? Let’s take a look at the Dow Jones weekly chart…..

See what happens? The Dow Jones Index has completed it’s Head and Shoulders formation, it is finished, it is done!!! So what’s next? Is the Dow Jones going to rally? As traders, you will notice that the Dow Jones and USD/JPT correlates, so you may want to know what’s Dow Jones is doing and make that part of your intelligence in your trading. Now let’s move further, look at the Daily chart of Dow Jones Index …..

I see n Ascending Triangle pattern forming. As traders, we know that the highest probability for the price to breakout will be the upper level. So Let’s assume the price will breakout 11,715 , on the way up, I see a Gartley pattern formed at 11,952, this is where the price will hesitate or reverse. There is another area 12,300 where another Gartley is found, but I will stick o the 11,952 , as 12,000 will be another major psychological resistance. The Gartley I am talking about is a bearish gartley, so it will be major bearish.

Another way to look at the Dow Jones index direction on the ascending triangle will be, breakout to the lower trendline, make a slight pull back, and continue it’s journey downwards.

So, either way, it is Bearish! My take on the sub-prime credit crunch mess is definitely not over. Consumer credit will be the next major wave to hit the Dow Jones. So for investments sake, I will still hold my cash first, look for a consolidation and do some shopping. Whatever it is, it is still important to do your own due dilligence, read up on financial magazines, that will give you a rough idea on where the market is heading.

Trade Well

Hi fx traders, here is another essential forex trading strategy, eat and sleep on it, memorize them, you will trade successfully.

51. Most traders beginning in forex will always want to be the grand master in the game. But this is not a game, it’s the world’s major league, yes that’s right, you are up against George Soros and many people alike that are far more smarter than you, and they have hundreds of analysts crunching the numbers for them. So when you just started out, strive to only make 20 pips per day, then stay out of the market. Switch off the computer, go and read and do more research on forex, tomorrow will be just another day. This is a business, not a game machine, you don’t put in your money and think that this is a jackpot.

52. Spend more time on Hourly Chart and most of your time on the 15min Chart.

53. Before you get into any currency and start trading, look into the Hourly chart and determine the direction of the market. Try to find what it’s going to be at the beginning of a new session.

54. Only look at the 5 min Chart when you really need to see what is happening behind the 15 min Chart. Especially when you see a very long candlestick breached a certain support or resistance and you have no idea what is happening. Take a peek at the 5 min Chart , what is the candlestick telling you? Is the price reversing? This will not be reflected on the 15 min chart.

55. Never stay in the 5 min chart, lots of whipsaw, lots of noise. You will be confuse.

Be sure to study the rest of my 78 essential forex stragtegy, click on my previous posts…..

Hi Traders, Got some good news for all of you if you have listened to me carefully. Did you monitor the currency pair NZD/USD ? If you did, you would have made a 100 pips and be rewarded for your due diligence. If you have not, don’t worry, the forex market will always be there tomorrow and the day after. Lets look at the daily chart nzd/usd …..

Don’t you thnk that is simply beautiful?! The price hit the gartley pattern where I have marked and it just came right down, price just couldn’t go further. The gartley zone also converge with the 150 MA and previous support and resistance. Look at my previous post on nzd/usd (Click here gartley pattern) if you are not convinced. After studying my previous post you would have known that this is how a professional should trade, not by chasing signals but must be able to analyse the chart and foresee where the price is heading. Well, all these needs lots of practice and patience, but the most important thing is, it works!

After price went all the way down, I look to a doji amd previous support and resistance for and exit to close my positions.  That is a 115 pips in my account for my hard work on monitoring this currency pair, waiting for it to give me a signal to enter my trade.If you want to trade successfully, study my previous posts, you will have an idea on how I trade, do your due diligence, nothing comes free! Trade Well

Hi Traders, thank you for these days that you guys have supported my bog. I have started this blog for a mere 4 months and I have some great overwhelming response from everywhere in the world! So far, 1,436 people has been subscribed to my blog; and I have been working pretty hard to provide everyone with the most updated forex set-up and signals to look out for. Through the set-ups, our fellow traders will learn how to trade professionally, as oppose to chasing from forex systems to forex strategies wasting time, energy and hard-earned money. I hope to put up more informative articles and reveal more of my trading secrets in days to come. But for the time being….. Trade Well

(Click my previous posts to learn how to trade)

Hi Traders, I hope you have done something to your gold after you read my posts. Here is another signal you may want to take note of. In H4 chart of Eur/Usd, I have spotted a Head and Shoulders pattern, which is bearish. Head and shoulders chart pattern is a very common chart pattern widely known by traders around the world. The more popular a chart pattern is to the world, more people will take notice of it, and the higher probability of it doing it’s course. Now let’s look at the EUR/USD h4 chart…..

What do you see? Yes, it is indeed a head and shoulders pattern formed on h4 eur/usd chart. How do you project the price? Simply join the 2 neckline of the head and shoulders pattern, measure the height of the head to the middle of the line you have just drawn, and move it down. The price projected area should be 1.5680 - 1.5700.

I will not enter the trade now, but will wait for further confirmation of signals. I will wait for price to go to the neckline and look for a price signal. Ok traders, that’s all for today, check back here often for price signals alerts, or click on my previous posts to learn how I trade. Trade Well