Tuesday, June 20, 2017

Trading traps in the stock markets Supply and Demand

The next and most important point is that often times right above or below these new highs and lows are supply and demand levels which act as repellants to those new buyers or sellers.  If you look closely inside those larger time frame candles you will discover those pockets of buy and sell orders just waiting to get filled. This saying references the notion that when the market looks very good, this is usually when it blows up.  This is not limited to going long; shorts also find huge reversals to the upside just when the market looks as though it’s ready to fall off  and head down. You will see this time and again as the markets are full of traps that the unsuspecting new trader is prone to falling prey to. The cycles will be more stable on longer term charts, but knowing the cycle can assist you in your trading.  If you see price approaching a supply or demand level but the cycle is not indicating a top or bottom, the level may have a higher probability of breaking.  But if the cycle top or bottom is near, the levels are more likely to hold.

Tuesday, May 23, 2017

EUR/USD

Summary : Target Level : 1.1076
Target Period :
2 days

Analysis :
Channel Up identified at 23-May-00:00 2017 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.1076 within the next 2 days.

Resistance Levels :
( B ) 1.1264Last resistance turning point of Channel Up.

Support Levels
( A ) 1.1076Last support turning point of Channel Up.


Chart date range :
10-May-06:00 GMT-> 23-May-06:00 GMT
Data interval : 1 hour
RSI:34 Candles
MA:34 Candles

Monday, May 22, 2017

VIX Trading

The VIX is related to the S&P 500 if the 500 drops sharply the Vix futures tends to go up. Most of the time the same is true if the S&P 500 is going up the VIX futures tend to go down.  This is not always the case but more often then not this holds true. VIX futures have been offered on the CBOE Futures Exchange since 2004. Since the Chicago Board. Options Exchange (CBOE) introduced futures and, subsequently, options on its Volatility Index, or VIX. At a quoted price of $12.1, one VIX futures contract is worth $12,100. Settlement. CBOE VIX futures are cash-settled and so, unlike futures on commodities. The VIX futures are very different from other index futures in that there prices are determined by a cost of carry but rather the market anticipation of the thirty day overall implied volatility of the SPX options will be at the VIX futures expiration. Many time traders will see the VIX futures trading above the VIX index other times it will be below.
 
  This can be an indication of the market's fear or complacency about the overall market action in the months ahead. Traders need to be aware if they trade the VIX futures that it does not always move in the same direction as the VIX index. Yhe VIX fitures will move close to the S&P 500 futures cash index. VIX is traded on the CBOE futures exchange and one point is worth one thousand dollars and the mini tick is worth .05 or fifty dollars. Vix futures are related to the S&P 500 because of the vix index itself is based on the SPX option prices.

  They are also used to value options on the vix index even though those are cash settled. The VIX futures and VIX are settled on the same day. The Wednesday that is thirty days prior to the third Friday of the calendar month. One thing is for sure a trader needs to learn how to trade this type of index or he will quickly wipe out their trading account. At most brokerages you have to apply to trade this type of index. This type of futures trading is very speculative and is not for all investors. Traders need to learn how to do this type of trading

Tuesday, May 16, 2017

CAD/JPY

Summary : Target Level : 83.739
Target Period :
2 days

Analysis :
Channel Up identified at 15-May-08:00 2017 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 83.7390 within the next 2 days.

Supporting Indicators :
Upward sloping Moving Average

Resistance Levels :
( B ) 83.739Last resistance turning point of Channel Up.

Support Levels
( A ) 82.5475Last support turning point of Channel Up.


Chart date range :
26-Apr-08:00 GMT-> 16-May-08:00 GMT
Data interval : 4 hour
RSI:34 Candles
MA:34 Candles

Thursday, May 11, 2017

GBP/USD Chart

Summary : Target Level : 1.2988
Target Period :
2 days

Analysis :
Ascending Triangle identified at 11-May-04:00 2017 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 1.2988 within the next 2 days.

Resistance Levels :
( B ) 1.2988Last resistance turning point of Ascending Triangle.

Support Levels
( A ) 1.2927Last support turning point of Ascending Triangle.


Chart date range :
02-May-10:00 GMT-> 11-May-06:00 GMT
Data interval : 1 hour
RSI:34 Candles
MA:34 Candles

Wednesday, May 3, 2017

GBP/USD Chart

Summary : Target Level : 1.2965
Target Period :
3 days

Analysis :
Rising Wedge identified at 02-May-16:00 2017 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 1.2965 within the next 3 days.

Supporting Indicators :
Upward sloping Moving Average

Resistance Levels :
( B ) 1.2965Last resistance turning point of Rising Wedge.

Support Levels
( A ) 1.2865Last support turning point of Rising Wedge.


Chart date range :
10-Apr-08:00 GMT-> 03-May-08:00 GMT
Data interval : 4 hour
RSI:34 Candles
MA:34 Candles

Monday, April 17, 2017

EUR/USD

Summary : Target Level : 1.0678
Target Period :
3 days

Analysis :
Triangle identified at 17-Apr-04:00 2017 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 1.0678 within the next 3 days.

Resistance Levels :
( B ) 1.0678Last resistance turning point of Triangle.

Support Levels
( A ) 1.0603Last support turning point of Triangle.


Chart date range :
28-Mar-04:00 GMT-> 17-Apr-08:00 GMT
Data interval : 4 hour
RSI:34 Candles
MA:34 Candles