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I am a forex trader. My forex experience started 6 years ago when I invested my 500 dollars in the forex market. After losing all of the initial sum I reconsidered my trading and developed a succesful trend trading system. That's when I became profitable. I came back to forex market with a... More
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  • Brief Forex Pairs Analysis

    Monday has come and new week in financial markets has begun. As I am more interested in Forex market than in any other market I want to look a little at some of my favorite Forex pairs and share my expectations with you regarding them. Firstly, I want to say that I expect Euro and Pound corrections this week and a rebound in Japanese Yen.

    eur/usd analysis: the pair seems to be in an asymmetrical triangle at the moment. It is now staying above most recent breakout level of 1.3250 and tries to get to 1.3500 level. It looks like it is going to visit 1.3150 before going upwards.

    gbp/usd analysis: Pound has been very weak for a week. I expect the weakness to disappear this week. gbp/usd is now at a very important support level and I bet it is going to hold. I have intentions of buying the pair near its current support when I see clear signs of reversal. They could be bullish candles or 123 reversal pattern.

    gbp/jpy analysis: We could be in the process of a big asymmetrical triangle formation in the pair. For that to come true gbp/jpy has to visit 140.50 level. That would be the second point for a lower triangle side. Then a push upwards is expected. However, looking at longer term charts one could see that support is constantly bombarded. We see less and less upwards action and more and more sideways action. Expect lower prices soon.

    eur/jpy analysis: Euro has been making lower highs and lower lows on 1 hour chart. From my perspective eur/jpy should see 118.65 level sooner rather than later. Selling daily highs seems the best way to trade the pair for now.

    eur/gbp analysis: The pair is clearly headed to 0.8500 area. That will probably be the last point. The pair will collapse like a rock from there in the same fashion as it has been climbing.

    See also: Japanese Yen outlook

    Jan 21 2:52 PM | Link | Comment!
  • Eur/Aud Outlook

    Most traders like trading major currencies such as eur/usd, eur/jpy or gbp/usd and they do neglect crosses. I am personally convinced that crosses can often give you bigger opportunities than majors as they can make much bigger moves than most of the majors due to the fact that a lot of investors, speculators and simply traders trade majors and a handful of folks trade crosses. In my opinion eur/aud is one of the best crosses as it forms spectacular moves. Look back to 2012 to see that. What is my outlook for the pair?

    I have a feeling (feelings are not very good for trading) that investing community will come back to problems in Europe and continue shorting Euro as they did for the most part of 2011 and the first half of 2012. As the Bank of Australia clearly stated that they have no intentions of cutting interest rates anymore it leads us to a conclusion that eur/aud is one of the best pairs to short Euro. It is also good not only because the pair can collapse, but also that you can make good interest holding your short position in the pair for a long time.

    Even if the currency pair fails to collapse you can expect it to stay in wide ranges of around 700 pips (1.2180-1.2810) and trade huge swings between these areas. You simply have to sell at the top and buy at the bottom of the indicated range. It would be wise to wait for some signs of a reversal before you jump into a trade. It is good to know something about reversal patterns that might help you to implement your technical trades.

    For more see: eur/aud outlook

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 04 10:06 AM | Link | Comment!
  • Problems That One Might Have By Following Forex Signals

    In the post I want to share a few thoughts regarding following Forex signals. I know that those who come to Forex market and seeing that it is not easy at all to make money they are tempted to start searching for Forex signal providers, because they are not sure if they ever be able to make money trading themselves. The problem is not whether you are going to find one or not. The problem that you have to solve is to ask yourself whether you want to become a better trader or you want others to make decisions on your behalf. If you choose to follow signals you will hardly ever be able to become a successful trader.

    How can you? If every trade you make you follow somebody else's advice and strategy! These are not your trading decisions. These are signals provider's decisions. To tell the truth I believe following somebody else's advice will weaken your chances to make good trading decisions on your own. Those guys that provide signals do their homework, chart analysis, fundamental studies and etc. So should you if you want to be better in Forex. Trading, losing, making profits is part of the game to gaining perfection in trading. You learn from your own experience. Well, you can from others too, but that is hardly the case.

    Who is responsible if you lose everything? Well, you can blame the signal provider. He will probably try to prove that you did something wrong. What if he decides to stop giving the services? What happens then? Would you try to find another one or start investing in your own education? I am convinced it does not take so much time to create your trading systems and style as most people imagine. Even if it does, it is worthwhile for you will gain priceless education and if you are successful you will be more than happy.

    In the process you will find what kind of trader you are: day trader, swing trader or trend trader. You will also decide whether you want to continue speculating or decide to invest. You will find out a lot of things. I do think that trading psychology, risk management and a good trading system are the backbone of successful trading. And you, you alone will have to achieve it on your own. So, the choice is yours. Have a nice day.

    Best Forex trading system.

    Aug 16 7:31 PM | Link | Comment!
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