Federal Reserve 7/29

Federal Reserve Chairman Jerome Powell is leading his colleagues to cut interest rates this week for the first time since 2008, even though the economy looks healthy, partly because it isn't behaving as expected.
Both inflation and market-determined interest rates are still lower than some of their models would have forecast, given years of strong hiring and solid economic growth.
These developments suggest that Fed officials haven't been providing as much support to the economy as they had thought, even though their benchmark rate is low by historical standards.
Moreover, some officials believe the rate needs to be even lower now to provide an extra cushion amid a darkening global outlook clouded by trade policy uncertainty.
Fed leaders see tighter linkages than in the past between the U.S. and global economies and think domestic rates can't rise much higher above those in other advanced economies, which have much lower or even negative rates.
Their thinking marks a shift from recent years when they were raising the rate from near zero because their models held that falling unemployment would eventually fuel rising inflation. They wanted to move proactively to keep price pressures in check and prevent asset bubbles from forming.

Trade Alerts

The Forexmentor Live! interactive training in trading Forex includes unlimited access to the live trading classroom, detailed tutorial videos used in trading client accounts, a step-by-step guide to the LPT Method, technical analysis, detailed presentations throughout the day, live Trade Alerts, access to Professional Fund Managers, access to live news feeds in real time and so much more.

USD/INR chart 7/25

Symbol : USDINR

Direction : Identified time : 2019-07-25 15:32 BST Breakout price : 69.048 Forecast price : 69.12415 Forecast pips : 761 Probability : 61.59 %

Pattern : Falling Wedge Interval : 30 Min Pattern : Resistance Interval : 30 Min

EUR/CAD chart 7/25

Symbol : EURCAD

Direction : Identified time : 2019-07-25 15:00 BST Breakout price : 1.47009 Forecast price : 1.47226 Forecast pips : 22 Probability : 63.29 %

Pattern : Channel Down Interval : 60 Min Pattern : Resistance Interval : 60 Min

GBP/USD

The pound traded lower from opening levels during the Asian morning, but failed to take out yesterday’s one-week low in the aftermath of Boris Johnson winning the Tory Party leadership race by a large margin. Today could be the fourth consecutive down-day in a row for GBP/USD, the longest stretch since mid-June. The next possible technical support level could be found at the downward-sloping trendline drawn from the May 23 low, which is about 1.2363 today. GBP/USD is currently trading at 1.2430.

 

RSI indicator

 RSI indicator to use it as an indicator to help identify whether trend would continue or if the supply and demand zones were strong enough to hold. While discussing the indicator in detail most traders decided to apply it to the broad markets to see if it had any use as a market trend predictor. This is the modified indicator did prove its worth. As with any technical indicator, the RSI should be used as a confirming indicator, not a decision making tool.  Price and supply and demand should be the only thing you use for your decisions to enter or exit the markets. The RSI offered both positive and negative divergence signals to warn of trend changes

Sterling falls against the dollar 7/22

 Sterling falls against the dollar and the euro as currency markets continue to eye the possibility of the U.K. crashing out of the EU with no deal at the end of October, though the potential barriers to that limit losses. Spread-betting firm IG says markets are facing up to the fact that a no-deal Brexit can't be ruled out, though Parliament clearly opposes such an event, making an extension of the Oct. 31 exit deadline more likely. "Boris Johnson is likely to win the Tory leadership contest, and with just three months until the deadline, he's unlikely to find any means to avoid either taking the U.K. out without a deal, or going against his word to extend the deadline

Forex programming software

The programming software does work and has been used for years by some of the most profitable traders. It removes the volatility in low volume currency trading and is more the norm than not which greatly reduces the risk in longer term trades. Paying for a newsletter service only makes sense if you want to make more winning trades. It saves the forex trader a great deal of time from trying to decide when to place a trade and is well worth the money spent. Economic factors and news are what changes in a country’s currency valuation. When such economic conditions such as a budget deficit or surplus is reported within a country, there will be reactions in the forex market and values will be reflected on currencies. Other news may include inflation trends, and the general economic growth of the country. Coach's Corner Premium is an interactive training service designed to help Forex traders attain Forex trading mastery via video courses, daily analysis videos, weekly webinars and interaction with mentors and other traders.

Facebook faced questioning on Tuesday

On Monday, Treasury Secretary Steven Mnuchin raised national security concerns about Libra and said people in the past had tried to use cryptocurrencies for illegal means.
Facebook faced questioning on Tuesday from U.S. senators, who said they don't trust the company to operate a global cryptocurrency. That is partly because there isn't a clear regulatory framework for digital assets. Democratic Sen. Sherrod Brown compared Facebook to a "toddler who has gotten his hands on a book of matches."
Ethan Hou, a 30-year-old cryptocurrency trader in Taiwan, said he woke up in the middle of the night to follow the Senate hearing and the market reaction. He said he sold some of his bitcoin holdings and expects more downside in the short term.
"Watching the grilling that Facebook was getting from Congress, there is a lot of negative sentiment around the market," he said. Mr. Hou said he is broadly optimistic about the future of bitcoin and other cryptocurrencies, given Facebook managed to get large companies including Mastercard Inc. and PayPal Holdings Inc. to back its plans for Libra.
Others remain skeptical of the benefits Libra could bring for users.

The successful trader

The successful trader has an intimate understanding of the delicate balance between emotional intelligence, managing emotional volatility through protocols, routines and habits and tracking the mechanical data of the markets. They focus on doing the "right" things habitually  following trading plans, rules, money management and position sizing  as if their life depended upon it  and their trading life does depend upon it.

Risk Management

 Your Forex trading system or program should be well though out in your trading system. Forex traders will be exposed to steep losses or taking poor Forex positions if they do not follow a strict set of guidelines. You should have  exact points and an effective strategy for exiting a Forex trade. Traders should not find themselves holding a Forex pair position in the Forex markets for long period unless you are taking weekly positions. You need to know it is important that your strategy for exiting a Forex trade once that trade has become profitable.
Risk Management is protecting gains on your FX trades. You need to know what your exit strategy is, this is an element of risk management. When a forex trade is in the money, the Forex trader need to manage the money with correct stop loss orders. The worst thing a the trader can do is allow a profitable position to reverse and become a losing position. When looking at any system for use in your currency trading, you must ensure that your risk management is in place on your currency trades. If risk management is not present then you are at risk to keep having losing trades.
 

How To Trade Forex Using Support and Resistance Levels

Oil prices

Oil prices edged higher on Friday and were on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East.
However, an International Energy Agency (IEA) forecast for a global oil surplus capped the gains. The agency on Friday predicted that surging U.S. oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months.

How to trade with pivot points

Traders need to learn that the more trading information they learn  is that while indicators and oscillators can help in making good trades, they can’t be used as primary decision making tools but help in the trading process. These tools don’t know anything about supply and demand areas on your charts. However they do up the chances of making a good trade. They are mathematically generated lines on your chart. The math is always correct. Thus that  leads to profits or losses in your trading account is the question most new traders need to think about.
The support and resistance of pivot points may help to identify or even strengthen supply and demand zones found in your charts. The pivot point itself is simply the previous day’s high + the previous day’s low + the previous day’s close divided by three. This pivot point can act as a support or resistance level for price and can be applied to equities. This time is figured at the five pm closing of the exchange.
By using this pivot point number and some additional mathematical calculations, we can derive several additional support and resistance numbers. In fact, there are calculations for four support and resistance levels. We can use these pivot support and resistance as possible entry and target points for trading.Although the main use for the pivot points is intraday charting, you could plug in the weekly or even the monthly high, low, and close to determine the future support and resistance for swing and position trading.

Professional Techniques For Short-Term Currency Trading

GBPCHF

Symbol : GBPCHF

Direction : Identified time : 2019-07-08 20:00 EDT Breakout price : 1.24417 Forecast price : 1.24863 Forecast pips : 45 Probability : 57.64 %

Pattern : Triangle Interval : 240 Min Pattern : Resistance Interval : 240 Min

Crude prices 7/8

Crude prices are likely to struggle at the start of the week as Iran seems ready to seek nuclear talks with European nations and as global economic uncertainty continue to hamper the demand outlook for oil.  Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease.  While the diplomatic pathway between Iran and the US seems closed, it certainly is open with Europe and that could be positive for bringing stability to the Middle East.  In what is likely a political posturing move, Iran appears set to abandon the uranium enrichment levels agreed to in the 2015 nuclear deal.  Sunday was the end of a 60-day deadline Iran issued European nations for delivering some relief from the US sanctions.  Iran reportedly is ready to issue a two-month extension, a move that should highlight they really want to work something out with Europe. 

This is how smart traders become successful

Remember that any trader should only trade with money that you can afford to lose. If you are scared to lose then you should not be trading, so when you have proven to yourself that you can make winning trades eighty percent of the time then you can increase the amount you put at risk. If in your trading you are always trying to get back to break even then you need to step back and see what you are doing wrong. Has something else has appeared that you never saw the first time you started to trade. Did you let emotions take over and not make the trade, were you distorted by the greed of making more money or the fear of losing on the trade.
 You need to change your thinking and you will be a smart investor, because if you always do what you've always done you will fall into that losing pattern again.  You need to go back to look at the trade setup again and see why it was a bad trade. What could you have done better to analyze when to enter the trade. This is how smart traders become successful and keep taking money from the new traders. You haven't put a stop loss in and the price action makes a sudden and dramatic move and you start chasing a losing trade hoping to get back to break even. You must change your thinking to break the pattern and become a smart trader and investor.

The most powerful patterns for Forex traders

Credit spreads 7/2

 Credit spreads are pricing in much optimism again, risking a widening if there is no agreement after the U.S. and China agreed to resume trade negotiations at the G-20 summit last weekend, LBBW analysts say in a webinar. Credit spreads have narrowed following European Central Bank President Mario Draghi's speech in June in Sintra, Portugal, where he signaled at more easing measures, they say. This narrowing trend was supported by the G-20 meeting and enabled credit spreads to almost fully recover from a widening course occurring since early May. LBBW says. "Since we see economic headwinds for 2020, we expect the [credit] spreads to tend to widen in the coming months," LBBW says.