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Sunday, May 31, 2015

Daily analysis of major pairs for June 1, 2015

The EUR/JPY experienced a nice bullish run last week, moving upwards from the demand zone at 133.50 and going far above the demand zone at 136.00. This movement of roughly 300 pips has resulted in a clear Bullish Confirmation Pattern in the chart, and this is a situation that could continue this week, for the outlook is already bullish.   

EUR/USD: The dominant bias here remains bearish, irrespective of a formidable rally in the context of the downtrend, which occurred last week. This price action would be taken as a short-selling opportunity unless the resistance line at 1.1100 is overcome.


USD/CHF: This market first went upwards last week, but the gains made by the bulls were forfeited because of the perceived stamina in the CHF. Should the CHF continue its strength, the bearish correction may continue, which may eventually invalidate the current bullish bias.  

GBP/USD: The Cable dropped by 200 pips last week, closing below the distribution territory at 1.5300. It is not logical to go long in this market unless the distribution territories at 1.5500 and 1.5550 are overcome to the upside – something that would require a very strong rally.

USD/JPY: This pair is also bullish and the price may continue its upwards journey as long as the JPY is weak. The price moved upwards by 250 pips last week, closing above the demand level at 124.00. Although the pair consolidated around the end of the last week, there should probably be a breakout to the upside, enabling the price to reach supply levels at 124.50 and 125.00 this week. The outlook on most JPY pairs for this month is bullish.

EUR/JPY: The EUR/JPY experienced a nice bullish run last week, moving upwards from the demand zone at 133.50 and going far above the demand zone at 136.00. This movement of roughly 300 pips has resulted in a clear Bullish Confirmation Pattern in the chart, and this is a situation that could continue this week, for the outlook is already bullish.  

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

Monthly Technical Reviews on Gold and Silver (June 2015)

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold has been trending downwards recently, going below the supply level at 1199.00. The bias on the market is bearish, as efforts to push the price upwards have been invariably scuttled. Price consolidated for most part of the last week, and there could soon be a breakout to the upside or to the downside. The breakout to the downside is more likely; and price could reach the demand levels at 1174.00 and 1154.00 this month. However, the possibility of a breakout to the upside cannot also be ruled out. Should this occur, price may reach for the supply levels at 1217.00 and 1219.00 this month.    


SILVER (XAGUSD)
Dominant Bias: Bearish    
Silver is also a bear market, plus there is a palpable consolidation in the market. The market consolidated for most part of the last week, and it is possible that the consolidation would continue for some time. Nevertheless, there is bound to be a breakout toward the north or the south. The probability of the price going seriously south is higher than the probability of it going north. When the price goes further south, the Bearish Confirmation Pattern in the market would become more conspicuous. Price could also go seriously north, and it could result in a clean bullish bias, especially when the supply zone at 17.5000 is broken to the upside.   




What Super Traders Don’t Want You To Know: Super Traders

Saturday, May 30, 2015

Weekly Trading Forecasts on Major Pairs (June 1 - 5, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD dropped below the support line at 1.0850 last week, but it could not stay below that line. From there, price rallied by over 150 pips, testing the resistance line at 1.1000. The overall bias remains bearish and it would be so, unless price is able to breach the resistance lines at 1.1100 and 1.1200 to the upside; a feat that would not be easy for bulls to achieve because the current bearish outlook may last longer than imagined. Without the aforementioned resistance lines being breached to the upside, any upwards bounces (like the current one) would be taken as short-selling opportunities.      

USDCHF
Dominant bias: Bullish  
This pair first went upwards last week, moving above the resistance level at 0.9500. However, as it was mentioned last time in May 25 – 29 forecasts, CHF gained considerable stamina and this halted further upwards movement on USDCHF. This is what is partly responsible for the visible bearish correction in this market. The stamina in CHF can also be seen on other CHF pairs(for example, check GBPCHF, CHFJPY, NZDCHF etc.). Though bulls forfeited the gains they made last week, the overall outlook is still bullish. The bullish outlook would be rendered useless as soon as the support level at 0.9300 is breached to the downside, and the possibility of this happening is strong, especially if CHF maintains its current stamina.  

GBPUSD
Dominant bias: Bearish
This is a weak market: price went downwards by 200 pips last week. It is currently illogical to seek long positions here until price actions justify that. It is possible that Cable will rally in the month of June, but until then, the current bias is bearish.  

USDJPY
Dominant bias: Bullish    
Since May 18, 2015, this currency trading instrument has moved upwards by 450 pips. This has caused a clean Bullish Confirmation Pattern in the market, and thus, further upwards movement is possible, largely as Yen continues to be weak. On Friday, May 29, 2015, price closed above the demand level at 124.00. The possible targets for this week are situated at the supply levels of 124.50 and 125.50.  

EURJPY
Dominant bias: Bullish
This interesting cross has assumed a strong northwards push, moving north from around the demand zone at 133.00 and going near the supply zone at 136.50. More northwards movement is expected this week, which could cause bulls to gain another 200 pips. Generally, the outlook on JPY pairs is bullish for the month of June 2015, though there might be a few exceptions.    

This forecast is concluded with the quote below:

“There are abundant opportunities to make a profit in the markets, but you need to work hard and diligently to find them. It can be done. There are many traders who make profits day after day. The decision you have to make, however, is whether you want to sit on the sidelines and say, "It couldn't be done," or jump in, resolute and confident, and work tirelessly until you achieve enduring financial success.” – Joe Ross


 What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Friday, May 29, 2015

48-hour Movement Trader – Part 1

A Rule-based Swing Trading Method

“This reminds me of the way many professionals trade. They are not looking to "shoot the moon." They have set objectives and they exit when those objectives are reached. Doing so takes discipline and self-control, two ingredients needed by every trader who desires to become successful in this business.” – Joe Ross


It is possible for every trader to achieve her/his aims in the markets (provided that their expectations are realistic) if they use the right trading system with the right risk control. Many have made it in other areas of human endeavors, but they still need to grapple with the markets. You personal trading experience can be improved, however. The trading world is a sphere of activity that requires excellent trading skills. Besides, and seriously, speculation needs blatant approach to generate constant, decent gains in any market type. This article will show you how you can use a trading system to trade with an utmost determination, powerful approach and the correct information.


The Underlying Market Actions
We have often experienced long, smooth upward pushes punctuated by violent pullbacks, brought about by some fundamental events across the globe. Should this be a surprise to us? Not at all, especially when we delve deeper into an aspect of the dynamics of the markets. Market studies have revealed that that the seriousness of market metamorphosis could be decided by the pressure on the market. During a serious movement, pressure gains momentum with it. If the transaction pressure is weighed relative to the market volatility, ‘elusive’ fact concerning the easy moves of the instrument turns conspicuous. If the transaction pressure is weighed relative to the market movement, more fact about the easy moves may be derived. Intensifying moves in an equilibrium territory may portend a probably exponential rise in price pressure. On the same weight, moves that become less intensified may portend a counter-trend rise in pressure. It should have been noted that expanding pressure brings with it a more colossal directional move. Still, a speculator ought not to deprecate the seemingly refractory nature of the financial markets. The most crucial issue to comprehend about the market pressure is that it is not just the pressure itself the concerned analysts are particular about. With any given market move a significantly erroneous notion is thinking that there exists a bear for each bull, and therefore the market pressure is ineffectual. If this were true, the markets would be caught in a dangerously protracted consolidation. The markets are propelled by the avarice and fright of the bulls and bears. Thus the transaction pressure and market movements are factors that make us see the realities of price dynamics. Consider buying/selling pressure as a lopsided attempt plus the market action as the aftermath of the attempt. If bears are inclined to smooth their orders at all cost there might be propensity to do so at the bid rather than sit back at the offer. In case the purchasing need is scantily situated beneath the price then the markets would be propelled towards the downside till the bears get satisfied or not be inclined to go after market moves any further to the downside. Alternatively, if bulls are inclined to act they may purchase the offer and not sit on the bid. If bulls are more inclined and there is not much resistance atop the price, the market may be seen moving up till the bulls are satisfied or not be inclined to go after the markets to the upside.

How thankful we can be that helpful analysts have always given us insights into the markets!  They show us how to be the best traders we can be and how to get the most out of our trading activities. Money and risk management protect us from harmful and vain pursuits in trading, they liberate us from the fear of uncertainties and leads us to true peace of mind in the markets. They give meaning to our trading life and proffer a marvelous goal of victory.


The Strategy Entries and Exits
It is imperative to stick to the rules of this trading method. Most market speculators are speculating on a retail basis, if you do not let your loss run, you would avoid surprises that have had adverse effect on most traders’ portfolios (this is what has made some traders to quit trading). You would need to do only what will benefit you in trading, and stop doing what cannot pay you in the long run. According to Sam Seiden, the one thing Vegas does, however, that brings them consistent riches is that they do not change their rules when they lose. They know they are going to lose money every day but at the end of the day, they almost always come out ahead with profits. They have a system that tilts the odds in their favor so they know that all they have to do is stick to the plan and they will profit. Imagine if they became emotional and changed the rules each time they lost. If they did that, they would not enjoy the profits that they do. If a system is abandoned, it will not be useful to the trader. If it is not useful to the trader, it will not give any signals or generate results.

As far as this method is concerned, small position sizing is auspicious. For instance, you can formulate a trading technique that can be used by others with 25% - 45% returns per annum with not more than 15% roll-downs. Conversely, if you would handle a portfolio and be a kind of more daring, you could increase your position sizing so that your proportional gains can also increase; providing that you are comfortable with that and can remain unperturbed during severe roll-downs.  If we are not willing to think about risk control, we may be surprised when a trade goes negative. We simply need to keep on trading whenever a setup meets our entry criteria. If we think about risk, then we can control a loss if it comes. You do not need to do hedging with this trading method. In an unpredictable market – a long trade loses, and later a short trade loses, buy again, negativity/hedge the GBPUSD with 70-pip stop each, only for the long position to be stopped out after the short position was initially stopped out. From our own experience we know that with the right tools, trading plan and the right system, we will probably fail without the discipline to follow our plan. It is virtually impossible to become a successful trader without it. Emotional battle that will take place in our head when we are not disciplined is better imagined.


The Simple Moving Average (SMA) and the Relative Strength Index (RSI) are for this strategy. Currency pairs and crosses that tend to trend well have been chosen for this method. The privilege to analyze the markets seriously for a long period of time enables us to benefit from market movements in a unique way. The price movement will be so conspicuous and familiar to us.

The article is ended by the quote below:

“One of the biggest mistakes traders make is trying to force their trading system on to a market that is not moving in the expected manner.” – Steve Ruffley

NB: This article was originally written by Azeez Mustapha, and published in Futures Magazine. It is reproduced here with permission from Futures Magazine. The quotes used here are not part of the original article. 




What Super Traders Don’t Want You To Know: Super Traders

Wednesday, May 27, 2015

Plus500 Drops Like a Stone

Plus500 stock (LSE:PLUS) has dropped like a stone following several months of consolidation phase. What is in the market is essentially a breakout in the favor of the bears, and the bias may continue as the price drops further south.

The recent consolidation phase made the price move primarily between the Trendlines: a serious break upwards or downwards would signal a great movement in the favor of the bulls or the bears. In the end, the price broke downwards below the lower Trendline. The RSI period 14 also dropped below the level 50, into the oversold region.

While there may be occasional northwards bounces in the market, the strong downtrend is expected to continue within the next several months.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Iofina May Fall Below the Supply Level at 20

Iofina shares (LSE:IOF) have been showing some propensity to go south. Recently, the market conditions have been choppy as the bulls and the bears continue to struggle for supremacy.

4 EMAs are used for the analysis (the color that stands for each EMA is shown at the top left part of the chart). The EMA 200 shows that the overall trend is bearish and this view cannot change unless the price crosses the EMA 200 to the upside.

Intraday and swing traders who go for short-term movements and price swings could find the market attractive. In addition, the current price action shows that the price may fall further southwards, falling below the supply level at 20.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Sunday, May 24, 2015

Daily analysis of major pairs for May 25, 2015

The USD/JPY moved upward by 200 pips last week. The upwards journey started at the demand level of 119.50 and it has gone beyond the demand level at 121.50. This bullish journey has put an end to the recent protracted equilibrium phase in the market: the price would continue its journey upwards as long as the USD is strong.  

EUR/USD: A drop of over 420 pips last week has established the weakness on the EUR/USD. There is now a Bearish Confirmation Pattern in the market: the price would go further downwards this week, testing the support lines at 1.0950 and 1.0900. More intense bearish pressure could even take the price beyond these support lines.


USD/CHF: This pair has turned bullish. The price trended upwards from the support level at 0.9150, testing the resistance level at 0.9450. That is a movement of 300 pips, and further northward journey is possible. The only challenge to this expectation is a possible stamina in the CHF.  

GBP/USD: On the Cable, the last week was characterized by serious battle between the bulls and the bears, but at the end of the week, the bears gained upper hands. However, the recent bullish bias would be violated only when the accumulation territory at 1.5400 is breached to the downside. The bullish bias is seriously threatened – it would be invalid only after the aforementioned accumulation territory is violated.

USD/JPY: The USD/JPY moved upward by 200 pips last week. The upwards journey started at the demand level of 119.50 and it has gone beyond the demand level at 121.50. This bullish journey has put an end to the recent protracted equilibrium phase in the market: the price would continue its journey upwards as long as the USD is strong. 

EUR/JPY: The fate of this cross would continue to be determined largely by whatever happens to the Euro. The current weakness in the market is caused by the weakness in the Euro itself, and things have already turned bearish - a trend that could be sustained this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

Saturday, May 23, 2015

Weekly Trading Forecasts on Major Pairs (May 25 - 29, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair dropped by 430 pips last week, leading to a Bearish Confirmation Pattern in the chart.
The price has already tested the support line at 1.1000, and it could test it once again, possibly breaking it to the downside. The support lines at 1.0900 and 1.0850 are the probable targets for this week, especially with the continuation of the current bearish bias.     

USDCHF
Dominant bias: Bullish  
The strength in the USD has enabled this pair to go upwards from the support level at 0.9150, reaching the resistance level at 0.9450. This is a movement of about 300 pips and there is a possibility that price would continue its upwards journey, on the condition that CHF does not become strong enough to make this difficult. Strength in CHF has been expected since last week, and it is something that could happen this week, affecting other CHF pairs as well.    

GBPUSD
Dominant bias: Bullish
The current price action on Cable is a threat to the recent bullish trend. In fact, as soon as the accumulation territory at 1.5400 is breached to the downside, the recent bullish trend would be render completely useless. Further weakness may cause price to test the accumulation territories at 1.5350 and 1.5300. However, this does that mean that bulls would not make attempts to push price towards the distribution territories at 1.5600 and 1.5650.

USDJPY
Dominant bias: Bullish    
USDJPY broke upwards significantly – an event that was long anticipated during the recent protracted consolidation phase in the market. A break above the demand level at 120.50 shows that the consolidation phase is over, and from there, price moved further north, testing the supply level at 121.50 (even breaching it to the upside). More bullish movement is probable this week, and the bullish bias would be valid as long as the demand level at 120.50 is not broken to the downside.

EURJPY
Dominant bias: Bearish
The movement of this cross is now largely determined by whatever happens to Euro; hence the present weakness of the cross. Price dropped by over 250 pips last week, in spite of some sideways movement along the way. The cross has closed below the supply zone at 134.00, and the next target could be the demand zone at 133.00.   

This forecast is concluded with the quote below:


“Michael [Marcus] taught me one thing that was incredibly important... He taught me that you could make a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it.” - Bruce Kovner (a billionaire trading veteran), not used


  
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Wednesday, May 20, 2015

Stanley Druckenmiller: Making Huge Killings in the Markets

INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 5

“I had done alright at school and was regarded in my earlier profession as a clever and steady worker, but nothing of this was of any use in trading.” – Tomorton (Source: Trade2win.com)

Name: Stanley Druckenmiller
Country: USA
Date of birth: June 14, 1953
Profession: Super trader and philanthropist

Career
A son of a chemical engineer, Stanley Druckenmiller was born in Pittsburgh, Pennsylvania, USA, into a middle class family. He got his BA in English and Economics at Bowdoin College (1975). He started a PhD program in Economics at the University of Michigan, but he didn’t finish the program because he was offered a job at Pittsburgh National Bank.  He started his own company - Duquesne Capital Management – in 1981.

He also had some working experience in various capacities, including working for George Soros. He stopped working for Soros in the year 2000. He’s featured in Jack Schwager’s book titled: “The New Market Wizards.”

In August 2010, he retired from trading public money when he closed his hedge fund:  Duquesne Capital Management. He said that the constant effort to generated decent profits for his investors was taking toll on his emotional health. He did so because he felt he wasn’t making enough profits for his investors, for he thought that it was difficult to make profits when handling huge sums of money. Prior to this time, his fund was generating yearly profits of about 30% for 30 consecutive years, although there was a recent year in which a loss of only 5% was generated. Needless to say, the loss was recovered. By the time he closed his hedge fund, that fund was worth over $12 billion.

Undoubtedly, Stanley is one of the best funds managers that have ever lived on this planet. He got a salary of $260 million in the year 2008. At the time of writing this piece, Stanley was worth over $3 billion. He’s a philanthropist who assists the causes he believes in.


Insights:
  1. Money shouldn’t be your number one goal. Your number one goal should be trading mastery, though money is simply one of the rewards that will follow. Don’t see trading as a means to get rich quickly, but a means to improve a rare skill, a skill that will make you stand out of millions of people who simply sit down doing nothing, blaming others for their predicament. Speculation is one of the remaining doors to succeed in the present world of unequal opportunities and dismal economic situations. It’s one of the rare opportunities that allow you to start with almost nothing and end up being rich in the end. But remember that money isn’t everything. Even if you spend all your life chasing money, you can’t be the richest person in the world, and you’ll eventually discover that there are other things in life that are more important than money. So you need a balanced view of trading. There are other ways to attain happiness apart from one’s net worth. Having money without these essential qualities in life will make you a miserable millionaire/billionaire.

  1. Sure, it’s possible to attain success in the markets. Stanley’s compound returns of 30% per annum for 30 years are an evidence of this fact. Wise people agree with this fact and see the hypothesis of efficient market as rubbish. We aren’t saying that success is easy, but we say that it’s possible despite the fact that it’s hard to achieve and sustain. Traders who believe in efficient market are indeed failures and losing traders who’ve given up. They simply use efficient market theory to justify their permanent failure. Yale professor Robert J. Shiller concluded that, the efficient market hypothesis is one of the most remarkable errors in the history of economic thought. Really, many known and unknown traders have been making consistent profits for decades. Success needs conscientiousness and diligence. Nothing good comes easily. For you to become a successful trader, you need to work hard. Stanley Druckenmiller admitted that he worked hard, for the markets took much of his time, resources and energy. You just need to continue to work hard at doing the right thing so that you can stay on top of the game.

  1. Success in life requires serious effort and doggedness. You can’t be a successful market speculator if you hate trading. The love you have for the market will surely give you an advantage over those who hate the market. After much hard work, you’ll find trading easier, more rewarding, fulfilling, exciting and life transforming.

  1. Stanley likes to use a top-down approach when speculating, doing so conscientiously. Don’t trade or continue trading when you’re feeling bad. Good mood has a big role to play in your success. Stanley stopped managing other people’s money when he felt he could no longer deliver. That doesn’t mean he stopped trading, for he’s still managing his own money privately.

  1. It’s a good thing for you to know how to change your mind when a position isn’t going as envisaged. Cut your loss. You may be correct about your prediction and still lose money. You see, doing the right thing doesn’t always make you look smart; until in the long run.

  1. When you know there’s no reason not to enter a trade (all your entry criteria have been met), trade with confidence. When you’re right in your prediction, try to maximize your gain from the opportunity.

  1. Position sizing is important in trading. This is the biggest determinant of the magnitude of your profits and losses, plus whether your objectives will be met.

Conclusion: We stay on in the game of speculation because we love it – just as some professionals in other fields of human endeavors. Those who love their calling don’t retire until some circumstances beyond their control force them to do so. 

This piece is concluded with a quote from Stanley:

“The way to build long-term returns is through preservation of capital and home runs.”



What Super Traders Don’t Want You To Know: Super Traders

Tuesday, May 19, 2015

Tern Consolidates to the Upside

Tern shares (LSE:TERN) are consolidating to the upside and this may eventually result in an upward break which may enable the price to accelerate further upwards.

In the chart, the ADX period 14 is around the level 20, confirming the consolidation phase. However, the DM+ is above the DM-, proving that the bulls have upper hands in the ongoing consolidation. The MACD default parameters, has both its histogram and signal lines above the zero line. The bulls have upper hands indeed. What we have in the chart is a kind of a confirmation of a bullish signal (sort of): so it is logical to conclude that when a breakout does occur here, it would be in favor of the bulls.

It cannot be said when the breakout would actually occur on Tern, but when it happens, the resistance levels at 15.00 and 20.00 would be reached this year

This forecast is ended by the quote below:

“If the risk of a worst case scenario is minimal – as it should be – it alleviates the stress of the situation and makes it much easier to make sound decisions.” – Darrin Donnelly

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


Renew Holdings Makes for the Sky

Renew Holdings stock (LSE:RNWH) has really made for the sky and there is still a lot of energy in the stock, fueled by the bulls’ determination to push the price further higher.

The price is far above the EMA 21 and the Williams’ % Range period 20 is around the overbought region. This means that the stock is very strong and, despite occasional pullbacks along the way, it may attain the distribution territories at 350.00 and 400.00 eventually.

The best action to take here is to go long.

This forecast is ended by the quote below:

“One of the biggest lessons I learned during my trading education was to never make assumptions. Everything that we see on the news or even on a price chart is the result of something that has already happened. Our job as traders and investors is to analyse what has happened so as to give us an idea of what may happen next.” – Sam Evans

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders

Sunday, May 17, 2015

Daily analysis of major pairs for May 18, 2015

The USD/CHF dropped last week, testing the support level at 0.9100. The outlook on this market is bearish for this week, especially in the face of the current strength in the EUR/USD (which would keep the USD/CHF under selling pressure). Another factor is that the CHF could be strengthened this week.

EUR/USD: The EUR/USD moved upwards by 300 pips last week; rising from the support line at 1.1150 and closing around the resistance line at 1.1450.   There is a possibility that the price would go further upwards this week, as the bulls target the resistance lines at 1.1500 and 1.1550.


USD/CHF: The USD/CHF dropped last week, testing the support level at 0.9100. The outlook on this market is bearish for this week, especially in the face of the current strength in the EUR/USD (which would keep the USD/CHF under selling pressure). Another factor is that the CHF could be strengthened this week. This would also have effects on CHF pairs.

GBP/USD: The optimism and positive sentiments emanating from the UK are the reasons why the Cable remains strong. As long as the price stays above the accumulation territory at 1.5600, there cannot be a serious threat to the existing bullish bias. The bulls may target the distribution territories at 1.5850 and 1.5900 this week. 

USD/JPY: Swing and position traders would do well to stay away from this market, which has essentially been consolidating for several weeks in a row. The price oscillates between the demand level at 118.50 and the supply level at 120.50. It is only a break beyond any of the aforementioned demand and supply levels that would probably result in a clean directional bias.

EUR/JPY: From the demand zone at 133.50, this cross journeyed upwards by over 300 pips, closing at 136.60 on Friday, May 15, 2015. The next movement of the price would be determined by the conditions of the EUR itself; but right now, there is a clear Bullish Confirmation Pattern in the market.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

Weekly Trading Forecasts on Major Pairs (May 18 - 22, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
Against all odds and contrary expectations, EURUSD went further upwards last week. From around the support line at 1.1150, price went upwards towards the resistance line 1.1450 (a movement of at least, 300 pips). The next targets for the bulls are located at the resistance lines at 1.1500 and 1.1550. In the meantime, any bearish corrections in the market would be taken as opportunities to buy long when things are on sale and in the context of an uptrend.     

USDCHF
Dominant bias: Bearish
The existing bearish bias, owing to the weakness of USD, and further expectation of considerable stamina in CHF this week, would help keep USDCHF under selling pressure. The support level at 0.9100 was tested last week: it could be tested and breached to the downside this week, as price targets further support lines at 0.9050 and 0.9000. The possible strength in CHF would also have impact on other CHF pairs.   

GBPUSD
Dominant bias: Bullish
Cable continues to meander its way upwards, as positive sentiment and optimism behind the currency keeps on having bullish effects. This week, certain fundamental figures emanating from the UK would have a noteworthy impact on the Cable (plus other GBP pairs as well). Should the bullish outlook continue to hold out, the distribution territories at 1.5800 and 1.5900 would be attained this week. Please note the distribution territory at 1.5800 was tried last week.

USDJPY
Dominant bias: Bearish     
This is currently not a market in which buyer should hold onto their long positions for too long. In fact, the market is only great for intraday traders and scalpers, as it was mentioned last week.  Upswings and downswings would continue to be transitory as price oscillates between the demand level at 118.50 and the supply level at 120.50. A break below that demand level or above that supply level could result in a strong directional movement.

EURJPY
Dominant bias: Bullish
The Bullish Confirmation Pattern on this cross shall continue to exist as long as there is strength in EUR. This week, the direction on the EURJPY cross would be determined largely by what happens to EUR, and therefore the supply zones at 137.00 and 138.00 are being targeted by the bulls. On the other hands, the demand zones at 135.00 and 134.00 are being watched, for they should try to obstruct the efforts of the bears.   

This forecast is concluded with the quote below:


“One of the many terrific things about being a profitable (self-employed!) trader is the fact that you can do what you want with your time… Successful traders are technically their own boss.” - Rick Wright


  
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Wednesday, May 13, 2015

Why Trade?

“Markets are simply the markets. They move up, down and sideways with or without you. I don’t believe they are out to get you or give you anything. They just do what they like. Your job, if you want to succeed, is to assess conditions and align with trends.” – Mike Melissinos

Why trade? Have you ever asked yourself a question like this? If so, you aren’t alone. True, when it comes to trading, some people say: “I’m too busy to trade.” “Trading is too hard.” “I’m wary of the risk in trading.” Success isn’t an easy thing in all areas of life; including trading.  Many people have heard about trading and they’re yet to start trading because they think it’d be difficult for them to succeed.  But others take a different view. They welcome the opportunities to face the challenges trading offers.

Perpetual success is possible in the markets. Truth is truth no matter who speaks it.

You can decide to start practicing with demos and then go live, with the hope of attaining eventual financial freedom. Or you can decide to let your life and survival be determined by your employer, who probably sees you as a minion that can be discarded and replaced at will. This is how most employers see their employees; or how do you think your employer sees you?

Successful traders are ordinary human beings like you. But unlike many people who want to remain in their comfort zone, maintaining perpetual oblivion, some decided to get their feet wet. When they saw that trading is full of obstacles, they put in the necessary effort to become profitable and their effort ultimately paid off.

As a successful trader, a friend of yours may come for help, and it’s nice if you can offer help. But, sometimes the best way to assist a friend is to help him realize that he can help himself.

“I slowly came round to the understanding that being smart was not always the best characteristics to be a good trader. The main things I did was to understand
how I felt most comfortable trading and stick to that, as long as it made me money it didn’t have to be the smartest, best or even most respected trading system… It was all about the profit and loss (P&L).” – Steve Ruffley (Source: TRADERS’ February/March 2015)



What Super Traders Don’t Want You To Know: Super Traders

Tuesday, May 12, 2015

President Energy at a Critical Point

President Energy stock (LSE:PPC) is really at a critical point. This is a point in which the stock does not go either upwards or downwards, consolidating since the beginning of 2015.  A breakout to the upside or the downside is expected soon on this market.

While some wait for a breakout to the upside, a breakout to the downside is also a possibility, for the RSI period 14 is below the level 50.  When the price breaks out above the upper Trendline and the RSI period 14 is above the level 50, the price would be expected to go more upwards. When the price breaks out below the Trendline and the RSI period 14 is below the level 50, the price would be expected to go further south.

Whatever happens on the upside or the downside, there would be a movement of at least 1000 points on either side.

This forecast is ended by the quote below:

“Trading should be a repeatable process/system designed to make money, not to be “right.” - Markham Gross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


Emed Mining Assumed a Northward Journey

Emed  Mining shares (LSE:EMED) have assumed a northward journey in the context of a downtrend and it would require further northward attempt before the downtrend can become bullish.

4 EMAs are used for the analysis and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left part of the chart. The price is now above the EMA 10, 20, and 50, as they are sloping upwards, but there must be a Golden Cross (a scenario in which the price crosses the EMA 200 to the upside), before there can be a confirmation of a bullish bias.

Right now, what we see on Emed Mining is a rally in the context of a downtrend, which can give some bears opportunities to sell short when there is a rally in the context of a downtrend. However, when the EMA 200 is crossed to the upside, all the indicators in the chart would align themselves in support of the bulls.  

This forecast is ended by the quote below:

“I'm not suggesting that an optimistic attitude by itself is going to turn you into a super-trader. But it is a prerequisite. You have to cultivate a can-do attitude in this business. You have to be willing to sift through the hype and the get-rich-quick trading schemes until you find something that works for you.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders





Sunday, May 10, 2015

Trading Signals for EUR Pairs (May 11 – June 2, 2015)

EURUSD = Sell

EURCAD = Sell

EURAUD = Sell

EURNZD = Sell

EURJPY = Sell

EURCHF = Sell

EURGBP = Sell

NB: Every trade could be entered with a stop loss of 100 pips and a take profit of 200 pips. Only 0.5% is risked per trade. With an account balance of $20,000, a position size of 0.1 would be used (0.01 lots for each $2,000). The breakeven stop is set after about 70-pip profit is made. A trailing stop of 100 pips is set after over 170 pips have been gained. You need to use your technical analysis to know when to enter, since you may want to trade a pair only after your entry criteria have been met.


Disclaimer: Trading signals are provided for information purposes only and shouldn’t be construed as trading advice.


What Super Traders Don’t Want You To Know: Super Traders



Daily analysis of major pairs for May 11, 2015

This week, the event on the EUR/JPY cross would largely be determined by the strength in the EUR itself. Should EUR continue to maintain its stamina, the cross would continue its bullish journey, testing the supply zones at 136.00 and 136.50. Any significant weakness in the EUR would cause the cross to plummet.   

EUR/USD: This currency trading instrument will be a major determinant of the movement of the USD/CHF and the EUR/JPY this week. So keep a close watch on it.


USD/CHF: This pair is trying to make a rally in the context of an overall bearish bias. This week, the event on the pair would be dictated by what happens to the EUR/USD itself. Unless there is a vivid weakness in the EUR/USD, the present rally on the USD/CHF would result in nice opportunities for the bears to enter at short at better prices.

GBP/USD: The outlook for the Cable this week and this month is bearish – though the current bias is bullish. The current bullish bias is largely determined by the positive sentiment and optimism emanating from the UK. This bullish sentiment may continue to push the price further upwards, but any failure of the price to stay above the accumulation territories at 1.5250 and 1.5200 could result in a threat to the existing bias.

USD/JPY: The condition on the USD/JPY is now precarious, because the market is currently volatile, with upswings and downswings being short-term in nature. Position and swing traders may do well to stay away from this market until there is a protracted movement in one direction. Meanwhile, the market is favorable to scalpers and intraday traders.  

EUR/JPY: This week, the event on the EUR/JPY cross would largely be determined by the strength in the EUR itself. Should EUR continue to maintain its stamina, the cross would continue its bullish journey, testing the supply zones at 136.00 and 136.50. Any significant weakness in the EUR would cause the cross to plummet, testing the demand zones at 133.00 and 132.50.   


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

Saturday, May 9, 2015

Weekly Trading Forecasts on Major Pairs (May 11 - 15, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair made further bullish attempt last week, though the bears are trying hard to frustrate the attempts. The price is now above the support line at 1.1150. There are other support lines at 1.1100 and 1.1050, which should act in support of the current bias. Any movement below these support lines, especially the support line at 1.1050, would result in a beginning of a nice bearish outlook. There is a high probability that this pair may become weak this week or this month.    

USDCHF
Dominant bias: Bearish
USDCHF is now trying to rally in the context of a downtrend. Last week, price dived by over 200 pips, slamming into the support level at 0.9100, before rallying by up to 200 pips, closing at 0.9303. Unless there is a significant weakness in the EURUSD, this rally would turn out to be a temporary bullish effort, which may allow sellers to go short when the price is higher in the context of a downtrend. USD/CHF would remain under selling pressure as long as EURUSD is strong. Without a movement above the resistance level at 0.9500, this would remain a truly bearish market.

GBPUSD
Dominant bias: Bullish
Last week, Cable consolidated from Monday to Wednesday, but it broke upwards in favor of the bulls on Thursday. Price moved from the accumulation territory at 1.5200 to the distribution territory at 1.5500. This is a movement of at least, 300 pips, owing to optimism and positive sentiments behind GBP. Nevertheless, the outlook on this market is bearish for this month: a bearish movement can start this week or this month.

USDJPY
Dominant bias: Bullish     
One thing must be noted, this currency trading instrument is currently great only for scalpers and intraday traders. It is not currently great for swing and position traders, for the upswings and downswings in the market are short-term and erratic. The overall bias is, however, bullish and this may hold until Yen becomes seriously strong.

EURJPY
Dominant bias: Bullish
The fate of this cross is being determined by the strength of Euro. Should Euro become weak, the cross would plummet. Should Euro become strong, the cross would rally. There is a Bullish Confirmation Pattern in this market, which would be violated once the cross drops below the demand zone at 132.00.  

This forecast is concluded with the quote below:


“In order to consistently make money in the markets, traders need to learn how to identify an underlying trend and trade around it accordingly.” - Joey Fundora



What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html

Wednesday, May 6, 2015

Martin Zweig: One of the Most Successful Traders of the Last Century

INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 4

“It is easier to make money if you start with a good mentor: but mentors that make millions on their own and still accept to teach are really few in the industry.” - Dr. Emilio Tomasini

Name: Martin Zweig
Date of Birth: July 2, 1942, Cleveland, Ohio
Nationality: American
Profession: Stock investor, investment adviser and financial analyst

Career
In 1964, Martin took his first degree at Florida Wharton School of the University of Pennsylvania. In 1967, he obtained an MBA from University of Miami, and after that he got a Ph.D. in finance, from Michigan State University. That was in 1969. He also taught finance at some colleges. Immediately after obtaining his Ph.D., he created a popular market indicator called the puts/call ratio. Using a combination of technical and fundamental analyses, he started writing articles and predictions about the markets in Barron's magazine.

He founded his own small-scale market newsletters, the Zweig Forecast. For many years, his articles and predictions were noticeably accurate and thus, became popular. He appeared publicly on TV programs, and became more popular because of accurate timings of market movements. For example, On October 16, 1987, he predicted that the stock market would crash. On October 19, 1987, his prediction came to pass. No sooner had the oracle spoken than his prophecy came to pass. In 1986 he wrote a book titled “Winning on Wall Street.”

As a successful mutual funds manager, he was the chairman of Zweig-DiMenna Associates, Inc. Noted for his extravagant and lavish lifestyle; he owned the most expensive residence in the US at the time. In March 2013, the residence was worth $125 million. Towards the end of his life, he appeared less in public.

He died on February 18, 2013, on Fisher Island, Florida.

Insights:
  1. Martin’s dream to become a great trader and a millionaire began in his early teenage years. He bought his first stock at age 13 and vowed to become a millionaire in life. Whatever your age may be, you can make a decision right now to become a profitable trader.

  1. He was seriously inspired by a great trading legend – Jesse Livermore. He loved to read Edwin Lefèvre’s book, Reminiscences of a Stock Operator, a book about Jesse Livermore. Martin’s trading method was based on the inspiration he got from Jesse. His trading method also has some features that were similar to William O'Neil's highly successful CANSLIM investing method. Who’s your role model? Who’s the person that inspires you to greatness in trading?

  1. His trading method combined technical and fundamental analysis, including certain characteristics of the markets he was interested in. The trading approach worked for him.  In addition to this, he admitted that risk minimization and loss limitation are crucial to his trading method.

  1. According to Martin, people somehow think you must buy at the bottom and sell at the top to be successful in the market. That's nonsense. The idea is to buy when the probability is greatest that the market is going to advance.

  1. His book that was written in 1986, “Winning on Wall Street,” proved to be extremely helpful to investors who followed the advice in the book. They really won by following his trading ideas. As a result of this, he was featured in other books, like John Reese’s “The Guru Investor: How to Beat the Market Using History’s Best Investment Strategies.” Yes, if you’re successful enough, people will write about you.

Conclusion: In order to be a success, you’ll need to understand what make people fail. To appreciate how to attain everlasting success, you need to learn how traders’ careers can become short-lived. Many a person only wants to know how to become profitable in the markets, but you should be concerned about how to fail so that you can eventually avoid that and experience the opposite of failure. You should be aware of the factors that can kill your dreams as a trader and avoid those things as a plague.

This article is ended with a quote from Martin:

“I measure what's going on, and I adapt to it. I try to get my ego out of the way. The market is smarter than I am so I bend.”



What Super Traders Don’t Want You To Know: Super Traders


Tuesday, May 5, 2015

A Northward Breakout Expected on TomCo Energy

TomCo Energy shares (LSE:TOM) are expected to experience a breakout to the upside, which may happen this week or next. The volatile market has been making shallow but protracted bearish attempt, but there would soon be a breakout to the upside.

The ADX period 14 is not above the level 30, meaning that the momentum in the market is low. The DM+ is below the DM-, for this is a bear market.  As for the MACD default parameters, the signal lines and the histogram are blended with the zero line. This is an equilibrium market in which there would soon be a breakout in favor of the bulls. It  would eventually result in a Bullish Confirmation Pattern. As long as a dominant bias exists, it should be harnessed in our favor, for trading live money is different than trading virtual money.

Therefore, TomCo Energy may try the accumulation territory at 0.100, while the long-term targets are situated at the distribution territories at 1.000 and 2.000. Good signals are designed to be used defensively so that portfolios are kept safe in the face of the vagaries of the market.

This forecast is ended by the quote below:

“If you decide that you don't care about losing your job, then a job loss wouldn't matter to you. If you decide that a trading loss is just part of business as usual, then you won’t let the loss have a great impact on your emotions.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders




A Nice Trading Opportunity Emerges on New World Oil

New World Oil stock (LSE:NEW) has shown that a new trading opportunity would inevitably be generated soon, based on the current price action. This is an attractive market indeed.

For several months, the stock has been trending downwards, while also consolidating to the downside. The price is now under the EMA 21 and the Williams’ % Range period 20 is in the oversold region. In reality, this is a bear market which may go further downwards by up to 80 points, enabling the price to reach the great support level at 0.005. But…

There is a high probability that the price would break out soon; moving upwards gradually or significantly. A great opportunity has emerged for the bulls indeed. The coming bullish phase could hold out longer than expected, for the market can go upwards by thousands of points. When the market is strong, bearish signals would be bogus in most cases.

Please let us not forget that we need to manage our risk as we trade this stock. As one expert notes, in trading, entrepreneurship, and competitive sports are not easy. They require moving forward in the face of many small losses and rejections.

This forecast is ended by the quote below:

“Thus far our success has been based on a humble approach where we admit that we don’t know everything there is to know and we must always have an open mind to learn more and more. Success in investing comes from continuously learning and keeping an open mind.” – Mark Mobius

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Sunday, May 3, 2015

Monthly Technical Reviews on Gold and Silver (May 2015)

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold has been a highly volatile market, with upswings alternated by downswings. In spite of this high volatility, the bias remains bearish and the price has a high probability of going further south, reaching the support levels at 1160.00 and 1150.00 this month. However, this would not happen without visible efforts from the bulls, who would be doing all they can to prevent the southwards journey. Occasional rallies, which should be short-term in nature, should be expected this month. These rallies would offer sellers good opportunities to sell short when price rallies in a context of a downtrend. As long as the rallies do not take price above the resistance level at 1220.00, the bias would be considered bearish.


SILVER (XAGUSD)
Dominant Bias: Bearish    
Silver is also a bear market, though price is currently trying to go north (this is something that pales into insignificance when compared with the overall bearish bias). While a movement above the supply level at 16.5000 would result in a threat to the extant bearish outlook, things would not really go bullish until another supply level at 17.0000 is breached to the upside. Meanwhile, the demand levels at 15.5000 and 14.0000 are potential targets for the bears this month.



What Super Traders Don’t Want You To Know: Super Traders

Daily analysis of major pairs for May 4, 2015

The USD/JPY has been able to maintain its recent bullish signal. The bullish signal started on April 30, 2015, and the price has now crossed above the demand level at 120.00. The supply levels at 120.50 and 130.00 can also be tested, but one thing must be borne in mind; the market might tumble if Yen becomes strong.

EUR/USD: This pair moved upwards strongly in the most part of last week. The pair moved upward by at least 400 pips. While more bullish journey cannot be ruled out, this would depend on the Euro sustaining its stamina, because any weakness in the Euro may cause the market to tumble.


USD/CHF: As it happened last week, the movement on USD/CHF would largely be determined by what happens to the EUR/USD. As long as the latter is strong, the former would be weak. The price is currently below the resistance line at 0.9350, going towards the support line 0.9300 (which was tested last week and might be tested again).

GBP/USD: This market moved upwards by 300 pips last week, and it later fell by 300 pips. This means that all the bullish gain which was made last week has been forfeited. Any movement below the accumulation territory at 1.5000 would result in a bearish bias.

USD/JPY: The USD/JPY has been able to maintain its recent bullish signal. The bullish signal started on April 30, 2015, and the price has now crossed above the demand level at 120.00. The supply levels at 120.50 and 130.00 can also be tested, but one thing must be borne in mind; the market might tumble if Yen becomes strong.

EUR/JPY: On this cross, there has been an upward movement of 580 pips last week, which is enough to show that the bull has gotten lots of stamina. While the price still threatens to go further north (owing to the great stamina in the Euro), the trend my change any time in case the Euro becomes weak. 


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html

Saturday, May 2, 2015

Weekly Trading Forecasts on Major Pairs (May 4 - 8, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
Last week, this pair moved north by over 420 pips. Price moved above resistance lines at 1.1250 and later fell below it, closing just below the resistance line at 1.12000. While it is not impossible for EURUSD to reach the resistance lines at 1.1300 and 1.1350, the outlook for this week (and this month) is bearish. This means that EURUSD might go further higher, but the risk of the beginning of a downward trend is very high this week.   

USDCHF
Dominant bias: Bearish
This currency trading instrument has been under bearish pressure as a result of the strong bullish trend on EURUSD. Price broke through the resistance levels at 0.9400 and 0.9350 last week, testing the support level at 0.9300. This instrument will remain under bearish pressure as long as EURUSD is strong. However, any significant weakness in EURUSD will cause USDCHF to jump seriously upwards, enabling price to go upwards by at least, 200 pips this week.   

GBPUSD
Dominant bias: Bullish
GBPUSD moved upwards by 300 pips last week, and later fell by 300 pips. This means that the gains made by the bulls have been forfeited to the bears. Although the extant bias is still bullish, any movement below the accumulation territories at 1.5050 and 1.4950 will result in a clean bearish signal in the market. This week – and this month – the outlook on GBPUSD, including some GBP pairs, is bearish. This is also true of most popular pairs and crosses; save anti-cyclical currencies like USD and JPY.

USDJPY
Dominant bias: Bullish     
There is now a bullish signal in this market. The bullish signal started on April 30, 2015, and the price has now crossed above the demand level at 120.00. The supply levels at 120.50 and 130.00 can also be tested, but one thing must be borne in mind; the market might tumble if Yen becomes strong. This is because the outlook on JPY pairs for this week, including this month, is bearish. Welcome to the month of the bears!

EURJPY
Dominant bias: Bullish
This cross moved upwards by over 580 pips last week, due to the strength in Euro. EURJPY is known as one of the fastest moving among popular JPY pairs, hence the strong northward speed. Since the stamina in Euro can be depleted this week or next, EURJPY can begin a smooth journey to the south. Bulls, please take care.

This forecast is concluded with the quote below:

“I go with the flow of markets and manage risk along the way. Markets are like flowing water. It is better to use the flowing power in your favor than it is to work against it.” – Markham Gross



What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  
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