candles

Which stock market sector is currently interesting due to its volatility

While long-term investors in physical shares are not too interested in volatility, CFD traders can make potentially very nice profits from it. However, equity markets are vast and it can happen that an interesting title slips through one’s fingers. This article will make sure that it doesn't happen.

What is volatility and how is it created

If you were to equate the words volatility and nervousness (or moodiness) you would not be far off the mark. Indeed, volatility is really a measure of nervousness in the markets and where there is nervousness, there is also uncertainty. Uncertainty in the markets can arise for many different reasons, but it usually happens before the release of important macroeconomic news (on our economic calendar), you can identify those by the three bulls' heads symbols) or during unexpected events with a major impact on a particular market sector or the geopolitical order of the world (nat

Polkadot (DOT) Explained - A Pinch Of Origins And History

Polkadot price to revisit $22 as DOT establishes a launchpad

FXStreet News FXStreet News 25.02.2022 16:18
Polkadot price retests the three-day demand zone, extending from $10.37 to $15.66, anticipating a bounce. A quick run-up would allow DOT to retest two hurdles - $15.97 and $22.23. A decisive close below $10.37 will invalidate the bullish thesis. Polkadot price has arrived at a stable support level after crashing violently and falling since November 2021. A retest of this level is likely to result in a swift bounce that triggers a quick uptrend. Polkadot price contemplates reversal Polkadot price has crashed 73% from its all-time high at $53.50 on November 9, 2021. This downswing has now arrived at the three-day demand zone, extending from $10.37 to $15.66. Investors can expect a quick relief rally to emerge as DOT bounces off this barrier. The altcoin will face the $18.01 hurdle after rallying roughly 12% from its opening price. Clearing this blockade is crucial to making a run for the $20 psychological level. There may be an outcome where DOT could set a local top here. However, if bulls band together, there could be an extension of the uptrend to $22.23. This move would constitute a 40% ascent from the current position - $16 and is likely where the local top will form for Polkadot price. DOT/USDT 3-day chart On the other hand, if Polkadot price fails to bounce off the $10.37 to $15.66 demand zone, it will explore lower levels. As long as DOT stays inside this area, the bullish outlook will not face any threats. A daily or a three-day candlestick close below $10.37, however, will invalidate the possibility of a bullish outlook and indicate that Polkadot price is likely to retest $10.09 or the subsequent barrier at $8.31.
The Put / Call Ratio - A Technique Used To Gauge Market Extremes

The Put / Call Ratio - A Technique Used To Gauge Market Extremes

Chris Vermeulen Chris Vermeulen 02.03.2022 21:32
Perhaps you’ve heard of the “Put / Call Ratio” (PCR) and been unsure of exactly what it is or when and how to use it.First, a quick review of what Calls and Puts are. Calls are option contracts that increase in value from a RISE in the price of the underlying stock or index. Puts are option contracts that increase in value from a DROP in the price of the underlying stock or index.Let’s jump in and see what’s “under the hood” and how we might use that to better inform our decision-making as traders and investors.What Is the Put / Call Ratio?The PCR is a contrarian indicator based on the idea that market participants tend to get too bearish or bullish shortly before a reversal is about to materialize. When the market is at a point of extreme bearishness, participants tend to buy more Puts than usual. Conversely, when the market is at a point of extreme bullishness, participants tend to buy more Calls than normal. Contrarian logic suggests that most participants tend to be wrong when the market is near inflection points.Mathematically the Put / Call Ratio is simply the number of Puts divided by the number of Calls. A value of 1 would indicate that the same number of Calls and Puts are being purchased. A value greater than 1 indicates more Puts than Calls purchased. It follows that a value below 1 means that more Calls than Puts are purchased.Sign up for my free trading newsletter so you don’t miss the next opportunity!The PCR can be calculated using either open interest or volume of contracts. It can be calculated for individual stocks and for indexes. Most trading and charting platforms have several versions of the PCR available for the major indexes. Indexes generally have charts available, while individual stocks may only have daily numerical value readily available. The PCR is generally more useful as an overall market sentiment indicator for the major indexes like the S&P 500. For most underlying, including major indexes like the S&P 500, the PCR tends to be below 1 much of the time. That makes some sense, as major indexes tend to have a long-term bullish bias. But in times of elevated fear, Put buying tends to be elevated in a rush to buy portfolio “insurance”. Outright bets on a market decline can add to that volume.How Do I Use the pcr?It helps to understand what “normal” behavior is for the number of Calls and Puts purchased for the particular index or stock. For an index like the S&P 500, a PCR of 0.9 or above suggests heavy Put buying and is typically seen as bullish from the contrarian view. For reference, at the height of the dot-com bubble in March 2000, the PCR dropped to as low as 0.39. Lots of calls were being purchased as the market was peaking.Let’s look at some recent examples where we see the Put / Call Ratio at extreme levels. Below we see a chart of the S&P 500 displayed with Heikin Ashi candles overlayed with the PCR (magenta line).In the first instance (circled in magenta), we see a low in the PCR where significantly more Calls than Puts were purchased. When interpreted as a contrarian indicator, that suggests bearishness to come. And indeed, we do see five days of bearishness to follow.We then see a sharp reversal to a relatively high PCR (blue circle), and we do see a bullish reversal that lasted for six days.At the yellow circle, we see a spike up in the PCR accompanied by a sharp increase in the underlying volume. However, we see a few days delay before the bullish reversal materializes in this instance. And the market was rather volatile on those days, as evidenced by the tall candles with long tails.At the green circle, we have a somewhat elevated PCR and another delayed reversal.ConclusionThe PCR is not particularly useful in sideways markets. But it can be useful at market extremes, albeit at times with some delay.Like many indicators, the PCR is far from 100% reliable unto itself. Used in conjunction with volume, volatility (VIX), support/resistance levels, trendlines, moving averages, and other technical indicators, the PCR can give us valuable clues about market sentiment and when a reversal may be in the making.Now That You Know more About the put / call ration, Read On To Learn More About Options TradingEvery day on Options Trading Signals, we do defined risk trades that protect us from black swan events 24/7. Many may think that is what stop losses are for. Well, remember the markets are only open about 1/3 of the hours in a day. Therefore, a stop loss only protects you for 1/3 of each day. Stocks can gap up or down. With options, you are always protected because we do defined risk in a spread. We cover with multiple legs, which are always on once you own.   If you are new to trading or have been trading stock but are interested in options, you can find more information at The Technical Traders – Options Trading Signals Service. The head Options Trading Specialist Brian Benson, who has been trading options for almost 20 years, sends out real live trade alerts on actual trades, such as TSLA and NVDA, with real money. Ready to subscribe, click here:  TheTechnicalTraders.com.Enjoy your day!
Blockchain Gaming - Where NFT, RPG And Layer 2 Meet

Ethereum price consolidates before a 34% breakout

FXStreet News FXStreet News 10.03.2022 16:14
Ethereum price faces a decisive moment as it coils up inside a symmetrical triangle. Investors can expect a 34% move in either direction, considering the ambiguous nature of the setup. A move to the upside seems unlikely due to the presence of multiple resistance barriers. Ethereum price action shows an interesting setup that forecasts the possibility of a massive move in both directions. However, considering the technical aspects, the probability of a down move appears more plausible for ETH. Ethereum price is stuck consolidating Ethereum price sets up three lower highs and two higher lows since January 24. Connecting these swing points using trend lines results in a symmetrical triangle formation. This technical formation forecasts a 34% move in either direction obtained by measuring the distance between the first swing high and low. A bullish breakout at roughly $2,882 puts the target at $3,874, but a bearish move below $2,405 reveals the target at $1,578. However, an upside move is less likely due to the presence of the weekly supply zone extending from $2,927 to $3,413. Moreover, the 50-day Simple Moving Average (SMA) has kept the price capped for the last three months. Additionally, the 100-day SMA present inside the weekly supply zone makes this confluence a stiff hurdle to overcome. Therefore, a six-hour candlestick close below $2,405 would indicate a breakout and forecasts a 34% crash to $1,578. ETH bulls might prevent such a steep correction due to the weekly support level at $1,730. ETH/USDT 6-hour chart On the other hand, if Ethereum price witnesses a massive surge in buying pressure that kick-starts a bullish breakout, investors can expect the upside to be capped around the 200-day SMA at $3,543 or $3,600. Any move beyond this level will require a massive inflow of stablecoins or a pileup of bid orders, which is unlikely considering the consolidative nature of BTC and ETH’s correlation to it.
Natural Gas: When A Trade Plan Provides Consecutive Wins

Natural Gas: When A Trade Plan Provides Consecutive Wins

Finance Press Release Finance Press Release 11.03.2022 16:24
From time to time, we may want to consider volatility as an ally. After all, why would highly volatile markets necessarily mean more losing trades?The first target was hit – BOOM! Today – just before the weekend – it is time to bank some profits from my recent trade projections (provided on March 2). Since then, the trade plan has provided our dear subscribers with multiple bounces to trade the NYMEX Natural Gas Futures (April contract) in various ways, always depending on each one’s personal risk profile.The first possibility is the swing trading with trailing stop method explained in my famous risk management article.Trade entry triggered on Tuesday, March 8 (firm rebound on yellow band), stop lifted once price extends beyond mid-point (median) price between first target and entry, thus ending at $4.607 (black dotted line), given the market closed at its daily high of $4.704 (purple dotted line) that same day and assuming you entered that long trade at $4.550 (top of the yellow band). That was a quick one that lasted only a couple hours for the day traders who closed their trades at the regular market close (two candles later, see below chart). For the swing traders, the win-stop was triggered the next day (Wednesday) on the following pull-back. Henry Hub Natural Gas (NGJ22) Futures (April contract, hourly chart)The second option is to scale the rebounds with fixed targets (active or experienced traders).This method consists of “riding the tails” (or the shadows). To get a better grasp of this concept, let’s zoom out on a 4H-chart so you can see the multiple rebounds of the price characterized by the shadows (or tails) of candlesticks, where a crowd of bulls are placing buy orders around that yellow support zone, therefore squeezing bears by pushing prices towards the upside (like some sort of rope pulling game). This trading style often requires stops to be tighter with some profit-to-risk ratio greater than 1.5 (with usually fixed targets). Henry Hub Natural Gas (NGJ22) Futures (April contract, 4H chart)Third possibility: position trading. This is probably the most passive trading style, as it would suit everyone’s busy timetable (and be the most rewarding). This is usually the one we privilege at Sunshine Profits since it allows us to provide trade projections some time in advance for our patient sniper traders to lock in their trading targets and take sufficient time to assess the associated risk with each projection as part of a full trade plan (or flying map).Let’s zoom out again to spot our first target getting hit today on a daily chart so we can have an overall view of the next target to be locked in while lifting our stop to breakeven (entry), previous swing low ($4.450) or using an Average True Range (ATR) ratio as some of you may like to use:Henry Hub Natural Gas (NGJ22) Futures (April contract, daily chart)That’s all folks for today. Have a great weekend!Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!Thank you.Sebastien BischeriOil & Gas Trading Strategist* * * * *The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
Increase Of Whales Wallets And California's Digital Financial Assets Law

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets in disarray

FXStreet News FXStreet News 14.03.2022 15:57
Bitcoin price loses momentum as it slides back into consolidation along the $36,398 to $38,895 demand zone. Ethereum price slides below a symmetrical triangle, hinting at a move below $2,000. Ripple price remains bullish as bulls eye a retest of $1 psychological level. Bitcoin price continues to tag the immediate demand area, weakening it. Despite the sudden bursts in buying pressure, BTC seems to be in consolidation mode. Ethereum price has triggered a bearish outlook while Ripple price shows signs of heading higher. Also read: Gold Price Forecast: Lower lows hinting at a steeper decline Bitcoin price moves with no sense of direction Bitcoin price dips into the $36,398 to $38,895 demand zone for the fourth time without producing any higher highs. This price action is indicative of a consolidation and is likely to breach lower. A daily candlestick close below $36,398 will invalidate the demand zone and knock BTC to retest the weekly support level at $34,752, which is the last line of defense. A breakdown of this barrier will open the path for bears to crash Bitcoin price to $30,000 or lower. Here, market makers will push BTC below $29,100 to collect liquidity resting below the equal lows formed in mid-2021. BTC/USD 1-day chart While things look inauspicious for Bitcoin price, a strong bounce off the said demand zone that retests the weekly supply zone, ranging from $45,550 to $51,860, will provide some relief for bulls. Ethereum price favors bears Ethereum price action from January 22 to March 4 created three lower highs and higher lows, which, when connected via trend lines, resulted in a symmetrical triangle formation. This technical formation forecasts a 26% move obtained by measuring the distance between the first swing high and swing low to the breakout point. On March 6, ETH breached below, signaling a bearish breakout, which puts the theoretical target at $1,962. A breakdown of the weekly support level at $2,541 is vital; a breakdown of this barrier will expedite the move lower. ETH/USD 1-day chart Regardless of the recent onslaught of bearishness, Ethereum price needs to produce a daily candlestick close above $3,413 to invalidate the bullish thesis. Such a development will also open the possibility of kick-starting a potential uptrend. https://youtu.be/-U0QTf_NwnI Ripple price maintains its bullish momentum Ripple price traverses a bull flag continuation pattern, a breakout from which hints at a continuation of the uptrend. This technical formation contains an impulsive move higher followed by a consolidation in the form of a pennant. The 55% rally between February 3 and 8 formed a bullish flag pole continuation pattern, and the consolidation that ensued in the form of lower highs and higher lows created the pennant. Together, the bullish setup forecasts a 31% ascent for XRP price, obtained by adding the flag pole’s height to the breakout point from the pennant. On March 11, Ripple price broke out from the pennant, signaling the start of the 31% uptrend to $1. So far, the retest seems to be holding up well, so investors can expect the remittance token to continue its journey higher to the $1 psychological level. XRP/USD 1-day chart A daily candlestick close below the immediate demand zone, ranging from $0.689 to $0.705, will create a lower low and invalidate the bullish thesis for Ripple price. In such a case, XRP has the twelve-hour demand zone, extending from $0.546 to $0.633 to support any residual selling pressure. https://youtu.be/rCFQmMHWJZ4
Precious Metals: What Can We Expect From Gold In The Near Future?

20/03/22 KOG Report – The week ahead for Gold

Knights of Gold Knights of Gold 20.03.2022 18:12
https://www.tradingview.com/chart/XAUUSD/bgv5PchS-XAUUSD-KOG-REPORT/ KOG Report: In last weeks KOG Report we suggested we wanted to see the price test the lower support region to give us a good entry for the long, which we got. What we didn’t get though was that aggressive push to the upside, instead FOMC moved the price towards the 1950 level giving traders over 300pips on the move. We managed to trade the longs and the shorts in Camelot with a total of 18 targets completed last week, which was a fantastic result for Excalibur. In all we played the defensive on the markets trading this the KOG level to level way making sure we were not over exposing ourselves. So what can we expect in the week ahead? Something is telling us there is a big move on the way and its going to catch a lot of traders out! What we will say is that we will be looking for extreme resistance levels on this to add to the short positions we’re holding from above. That’s not to say we won’t be going long; we will take long trades into immediate resistance levels. We can see am immediate resistance level at the 1930 level and above that around 1945. That 1945 level is important for as long as the price remains below that level its likely we will see some lower targets being achieved in Gold in the coming week. On the downside we have the key level here of 1890-80, that’s where we will be waiting this week to go long on the market. We’re not concerned and don’t want to get involved in the immediate range unless we’re taking quick scalping trades level to level using Excalibur to guide us. So, we will look for the following scenarios on Gold this week: Scenario 1: Price opens, pushes to the upside and finds resistance at the 1930-35 level, we feel this level would represent an opportunity to short the market back down into the immediate support levels of 1910, 1903 and below that 1895-90. We will be waiting just below to take a long position to target the 1930, 1940 and above that 1960 level. IF we reach 1950 we will take a majority of our trade of the table and let the rest run with the stop to entry. This will be a great swing trade if it works out! Scenario 2: Price opens negative, we have an Excalibur target just below around the 1910 level, we would expect a potential test on that wick or just below it. We will wait for our support levels of 1902, 1885-80, this is where we will want to test the long trade into the levels we have mentioned above! Again, around the 1940-50 level we will take a majority of the trade of the table and leave the stop at entry with an open target above. What we will be looking for is resistance above where we will want to short the market again. Its been a difficult month for traders with a lot of news driving the markets, the candles look small but the pip capture is very tempting for traders who are trading large lots. The market knows this and will create the swings and choppy price action to make sure its not as easy as it looks. Try not to be roped into the orchestration. We’re still playing the defensive here, even if that means we continue to do so for another month. We would rather trade a natural market than trade in the volatility being created by the fundamentals and geopolitics. Hope this helps traders, as usual we will be updating the analysis, levels and charts as we progress throughout the week. We’ve been doing these reports and analysis a long time, please do give us a like on our ideas, it does motivate us to keep going. As always, trade safe. KOG
Kishu Inu, A Meme Coin, Promotes Growth And Development Through Its Transparency

Can (SHIB) Shiba Inu Price Go For A Rocket Launch?

FXStreet News FXStreet News 21.03.2022 16:05
Shiba Inu price is hovering above the $0.0000223 support level, eyeing a 40% upswing. A quick liquidity run below $0.0000202 is likely before triggering the move to $0.0000283. A daily candlestick close below $0.0000158 will invalidate the bullish thesis for SHIB. Shiba Inu price action seems to be repeating itself after a recent breakout from its downtrend. The rebound is pausing and might go for a liquidity run below a vital support level before a full-blown rally kicks off. Shiba Inu price prepares for a new leg-up Shiba Inu price crashed 77% from its all-time high before setting up a swing low around $0.0000202. The downswing, however, was breached on February 3, as price undertook a u-turn and made a 75% ascent. The new uptrend failed to sustain, however, leading to another downswing. After a brief period of consolidation, SHIB breached through its mini downtrend and is currently establishing a support level around $0.0000223 before triggering an explosive rally higher. However, investors can expect Shiba Inu price to slide lower first in search of liquidity below the $0.0000202 barrier. Such a move will signal the start of an uptrend and interested investors can enter long at $0.0000202. The resulting momentum will likely catapult SHIB to retest the immediate hurdle at $0.0000283. This move would constitute a 40% gain and is where market participants can book profits. SHIB/USDT 1-day chart Even if Shiba Inu price breaches the $0.0000202 barrier, the bulls will have another chance to regroup and attempt a run-up into the nine-hour demand zone, ranging from $0.0000158 to $0.0000193. A daily candlestick close below $0.0000193, however, will produce a lower low and invalidate the bullish thesis. In this scenario, Shiba Inu price could crash 15% and retest the $0.0000135 support level.
(MCO) Crypto.com Price Rises As The Company Is Presented As A Sponsor Of An Important Sport Event

(MCO) Crypto.com Price Rises As The Company Is Presented As A Sponsor Of An Important Sport Event

FXStreet News FXStreet News 23.03.2022 15:52
Crypto.com token set a stable base and rallied 12% to clear a crucial hurdle at $0.41. If CRO manages to stay above this barrier, a retest of $0.45 seems likely. A breakdown of $0.41 could trigger a correction to $0.37 or lower. Crypto.com token has set up pools of liquidity at the range low and high of recent run-up. This technical outlook creates ambiguity with directional bias, but the recent announcement indicates a bullish move is likely. The company’s Twitter account posted that it will be a sponsor of the FIFA World Cup Qatar 2022. A blog post further elaborated that Crypto.com will be the “exclusive cryptocurrency trading company” sponsoring the Qatar 2022 FIFA World Cup. This move from the establishment is not unseen in the crypto industry with FTX partnering with major Major Baseball League, Mercedes, eSports teams and so on. The sponsorship will allow Crypto.com to garner branding exposure from within and outside the tournament’s stadiums. Crypto.com token at make-or-break point Crypto.com token fell nearly 20% between March 2 and 7, setting up a range that extends from $0.45 to $0.37. This downswing set a boundary and CRO bulls respected it and created a double bottom at $0.37, triggering then a recovery rally. So far, the Crypto.com token has managed to flip the 50% retracement level at $0.41 and is at the time of writing hovering above it. A continuation of this bullish momentum could see CRO heading back to the range high and perhaps higher. Interested investors can wait for a retest of the $0.41 barrier to enter a long position and book profits at $0.45. In some cases, the run-up could push the Crypto.com token to $0.47 especially if the buying pressure increases. CRO/USDT 4-hour chart Although things are looking favorable to bulls, a breakdown of the $0.41 support level will trigger a move in the opposite direction. If Crypto.com token produces a four-hour candlestick close below $0.37, it will invalidate the bullish thesis. This development could see Crypto.com token slide lower to retest the stable support level at $0.36.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos on the front foot as rebound turns into new uptrend

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos on the front foot as rebound turns into new uptrend

FXStreet News FXStreet News 24.03.2022 16:22
Bitcoin price set to touch $45,000 by tomorrow if current tailwinds keep supporting price action. Ethereum price set to rally another 12%, with bulls targeting $3,500.00XRP price undergoes consolidation as the next profit level is $0.90.Bitcoin price, Ethereum and other cryptocurrencies are enjoying a calm week with tailwinds finally able to thrive without constant interruption from headlines about Ukraine or Russia. Markets are also starting to adjust to the situation, with no immediate or significant movements anymore triggered by headlines coming out. Expect to see more upside with several possible cryptocurrencies eking out the best week of the year thus far.Bitcoin price has a defined game plan with $44,088 as the target for today and $45,261 by the weekendBitcoin (BTC) price is on the front foot for a third consecutive day as the rally turns into a broader uptrend. The crucial thing will be to see where BTC price will close this week, as bears need to get weakened with several short squeezes and breakouts running stops from short-sellers. Despite being elevated, the Relative Strength Index (RSI) is still not near the 'overbought' level, providing enough incentive for bulls and investors to keep buying BTC price action.BTC price is set to hit $44,088.73 today, the level of the March 03 highs. If that is gained – and given the current tailwinds – markets will start to expect Bitcoin to eke out new highs for the month with still a week to go. This additional bullish element should help conclude a daily close above $44,088.73. A support test on that same level will trigger new inflows from investors and provide the needed juice to pump price action up to $45,261.84, topping $45,000.00.BTC/USD daily chartA tail risk comes from the big joint meeting today in Brussels, with Biden meeting NATO, the G7 and E.U. leaders. An embargo on gas is on the table and could roil markets if the E.U. decides to walk away from Russian gas supplies, opening up the possibility of further Russian retaliation in Ukraine. That would make global markets move back to risk-off mode, with Bitcoin price dropping back to support at $39,780.68, and intersecting with the green ascending trend line. Ethereum price targets $3,500 after bulls force a daily close above $3,018.55Ethereum (ETH) price is performing a 'classic long' trading plan today after bulls pushed a daily close above $3,018.55. With price action in ETH opening slightly above this level, this morning, the price has faded slightly back towards that same $3,018.55 level to find support and offer the opportunity for new bulls and investors to enter the market. Ethereum price will move back to the upside and continue its rally, which is currently looking more and more like an uptrend that could continue over a broader time frame.ETH price will therefore need to find support around $3,018.55 as the fade will need to be kept in check, as too large a fade could spook investors. Seeing as the current favourable tailwinds are quite broadly present in global markets, expect to see another uplift towards $3,200 and $3,391.52 depending on the number of new positive headlines acting as additional accelerators. With those moves, at least new highs for March will be printed and possibly for February, depending on how steep the rally can continue.ETH/USD daily chartThe risk for Ethereum price is that price action slips back below $3,018.55. That could open the door for bears to jump in again and run price action back to $2,835.83, which is the low of March 21 and the monthly pivot. An additional fail-safe system is the 55-day Simple Moving Average at $2,808.84 as an additional supportive factor to take into account.https://youtu.be/wgpCSH70SIQXRP price undergoes consolidation as the bullish breakout hits $0.90Ripple's (XRP) price has bears and bulls being pushed towards each other as the bodies of the candles from the past two sessions grow very thin. This points to bulls and bears fighting it out and neither yet having the upper hand. Bears are defending the area above $0.8390 from bulls running to $0.8791, and bulls are trying to defend their support at $0.7843. With lower highs and higher lows, the stage is set for a breakout that, seeing the current tailwinds, will probably favour bulls, and result in a quick move towards $0.8791.XRP price is thus set to print new highs for March. With the stock markets having their best performing week for this year, expect to see even more tailwinds spilling over to cryptocurrencies and bulls targeting $0.9110. At that level, bulls will run into the 200-day SMA which will possibly be the halting point of the current uptrend as investors will need to reassess the situation before they advance. Where global markets are at that point and how far off a peace treaty is between Russia and Ukraine will determine if bulls will advance towards $1.00 in XRP price.XRP/USD daily chartAlthough several statements suggest it is unlikely, should Putin be backed further into a corner, the use of nuclear weapons could cast a dark shadow on markets. Expect a massive drop in equities and cryptocurrencies with those headlines coming out, where XRP price will fall towards $0.7843 or even $0.7600. In the first case, the historic pivotal level will provide support and further down, the monthly pivot is set to intertwine with the 55-day SMA, which should be enough to catch any falling-knife action. https://youtu.be/ZWrKMd2CiL8
The Swing Overview - Week 16 2022

The Swing Overview - Week 16 2022

Purple Trading Purple Trading 22.04.2022 15:00
The Swing Overview - Week 16 Jerome Powell confirmed that the Fed will be aggressive in fighting the inflation and confirmed tighter interest rate hikes starting in May. Equity indices fell strongly after this news. Inflation in the euro area reached a record high of 7.4% in March. Despite this news, the euro continued to weaken. The sell-off also continued in the Japanese yen, which is the weakest against the US dollar in last 20 years.  The USD index strengthens along with US bond yields Fed chief Jerome Powell said on Thursday that the Fed could raise interest rates by 0.50% in May. The Fed could continue its aggressive pace of rate hikes in the coming months of this year. US 10-year bond yields have responded to this news by strengthening further and have already reached 2.94%. The US dollar has also benefited from this development and has already surpassed the value 100 and continues to move in an uptrend. Figure 1: US 10-year bond yields and USD index on the daily chart Earnings season is underway in equities Rising interest rates continue to weigh on equity indices, which gave back gains from the first half of the last week and weakened significantly on Thursday following the Fed’s information on the aggressive pace of interest rate hikes.   In addition, the earnings season, which is in full swing, is weighing on index movements. For example, Netflix and Tesla reported results last week.   While Netflix unpleasantly surprised by reducing the number of subscribers by 200,000 in 1Q 2022 and the company's shares fell by 35% in the wake of the news, Tesla, on the other hand, exceeded analysts' expectations and the stock gained more than 10% after the results were announced. Tesla has thus shown that it has been able to cope with the supply chain problems and higher subcontracting prices that are plaguing the entire automotive sector much better than its competitors.   The decline in Netflix subscribers can be explained by people starting to save more in an environment of rising prices. Figure 2: The SP 500 on H4 and D1 chart The SP 500 index continues to undergo a downward correction, which is shown on the H4 chart. The price has reached the resistance level at 4,514-4,520. The price continues to move below the SMA 100 moving average (blue line) on the daily chart which indicates bearish sentiment.  The nearest resistance according to the H4 chart is at 4,514 - 4,520. The next resistance is around 4,583 - 4,600. The support is at 4,360 - 4,365.   The German DAX index The DAX is also undergoing a correction and the last candlestick on the daily chart is a bearish pin bar which suggests that the index could fall further. Figure 3: The German DAX index on H4 and daily chart This index is also below the SMA 100 on the daily chart, confirming the bearish sentiment. The price has reached a support according to the H4 chart, which is at 14,340 - 14,370. However, this is very likely to be overcome quickly. The next support is 13 910 - 14 000. The nearest resistance is 14 592 - 14 632.   The DAX is affected by the French presidential election that is going to happen on Sunday April 24, 2022. According to the latest polls, Macron is leading over Le Pen and if the election turns out like this, it should not have a significant impact on the markets. However, if Marine Le Pen wins in a surprise victory, it can be very negative news for the French economy and would weigh on the DAX index as well.   The euro remains in a downtrend The Fed's hawkish policy and the ECB's dovish rhetoric at its meeting on Thursday April 14, 2022, which showed that the ECB is not planning to raise rates in the short term, put further pressure on the European currency. The French presidential election and, of course, the ongoing war in Ukraine are also causing uncertainty.  Figure 4: The EURUSD on the H4 and daily charts. The inflation data was reported last week, which came in at 7.4% on year-on-year basis. The previous month inflation was 5.9%. This rise in inflation caused the euro to strengthen briefly to the resistance level at 1.0930 - 1.0950. However, there was then a rapid decline from this level following the Fed's reports of a quick tightening in the economy. A support is at 1.0760 - 1.0780.   The sell-off in the Japanese yen is not over The Japanese yen is also under pressure. The US dollar has already reached 20-year highs against the Japanese yen (USD/JPY) and it looks like the yen's weakening against the US dollar could continue. This is because the Bank of Japan has the most accommodative monetary policy of any major central bank and continues to support the economy while the Fed will aggressively tighten the economy. Thus, this fundamental suggests that a reversal in the USD/JPY pair should not happen anytime soon. Figure 5: The USDJPY on the monthly chart In terms of technical analysis, the USD/JPY price broke through the strong resistance band around the price of 126.00 seen on the monthly chart. The currency pair thus has room to grow further up to the resistance, which is in the area near 135 yens per dollar.  
Crypto Focus: A Week of Indecision and Dogecoin on the Up?

Crypto Focus: A Week of Indecision and Dogecoin on the Up?

8 eightcap 8 eightcap 29.04.2022 13:27
It’s been another week of wide ranges with little direction. That’s not to say we didn’t see both sides try. A few of the top 25 saw solid selling, both AVAX and XRP were hit with sell-offs, while the more significant coins like BTH and ETH fought back off lows forming spinner type candles. Bitcoin traded above 40K during the week but couldn’t hold the level. On the positive, 38,900 continues to hold firm for buyers. APE coin had a massive week adding 57% ahead of its metaverse launch. Doge had a massive week, and we will touch on that further below. Aside from its massive jump, the coin can also now be used for rent payments. On the topic of payments, a Dubi real-estate developer will accept BTC and ETH for purchases of luxury homes. During the week, we did see a few small signs that buyers were trying to get a move going, but a lot like last week, we saw those signals fade as selling resumed. A fair few of the top 25 took heavy selling on Friday’s session, and that was refected as the CRYPTO25 indexes were leading the CRYPTO10 index lower. DogeCoin was the talking point last week. The coin is linked to Elon Musk regularly, and once news of his offer to buy Twitter was accepted, we saw a dramatic rally on the coin. Price jumped as much as 30% higher on the news, but the move was short-lived as a touch over 10% was taken off the following session. Since Tuesday, we have seen every direction on Doge as it looks like traders are trying to work out what Monday’s spike meant. Looking at the daily we have a solid looking range in play, and this could set up a straddle play. A straddle is where a trader places buys above the range and sells below the range. (one cancels over an option to avoid being double filled). If that spike is valid, the question that may need to be answered by traders is if we did see a breakout lower, could it retrace Monday’s spike retesting lows set on the 25th or if we break higher could we see a new test of 0.17? Until we see some direction, the market may remain rangebound. Be wary of tests out of the range, as false breaks can be very painful for breakout traders. In all trading, risk management is an essential part of the trader’s strategy. (The straddle example is an example based on Friday’s chart. The daily chart will have changed, and the range may not be in place by the time of posting) DOGE Chart Here’s 4-hour chart as well just in case you prefer it The post Crypto Focus: A Week of Indecision and Dogecoin on the Up? appeared first on Eightcap.
Forex News: EURJPY, LH setting up sellers stacking candles?

Forex News: EURJPY, LH setting up sellers stacking candles?

8 eightcap 8 eightcap 03.05.2022 10:52
Today’s focus is on the EURJPY, and for now, it’s from the sell-side. That might sound a bit strange based on the amazing buying we have been seeing in recent weeks but like everything, nothing lasts forever. Please note that we’re not calling it a trend change, but in the short term, some signs have started to stack up on the seller side. The first sign we can see is the break of the medium-term to the long-term trend. After that break, we saw a short steep counter that is typical of counter-rallies after a break lower. Currently, we can see a build-up of indecision that has formed an LH after the trend break. From 137.50 we can see plenty of supply from sellers halting any new attempt by buyers. These are, for now, all pointing to a possible push lower by sellers, but they have a few things to do before we can start thinking confirmed. First, we need to see minor support beaten to see a resumption of seller control. We would then look lower at 135.28 support and 134.60 support if that happens. If sellers can move below both of those levels, we could have a new downtrend on our hands. We have put in the forming downtrend abut we would like to see price remain inside that trend if it moved back to the support areas. If we see buyers maintain minor support and push to or through the new downtrend line, we would start thinking possible fail, and we would then move back to the drawing board with new focus on a possible retest of the April high if new HLs and HHs are formed. The BOJ and the Jen will also be a focus as they drove the recent rally, and it was primarily policy-driven. Any updates from the BOJ that resume JPY weakness could also be a factor in candling out the current seller price action. EURJPY D1 Chart The post Forex News: EURJPY, LH setting up sellers stacking candles? appeared first on Eightcap.
Which stock market sector is currently interesting due to its volatility?

Which stock market sector is currently interesting due to its volatility?

Purple Trading Purple Trading 18.07.2022 07:57
Which stock market sector is currently interesting due to its volatility While long-term investors in physical shares are not too interested in volatility, CFD traders can make potentially very nice profits from it. However, equity markets are vast and it can happen that an interesting title slips through one’s fingers. This article will make sure that it doesn't happen. What is volatility and how is it created If you were to equate the words volatility and nervousness (or moodiness) you would not be far off the mark. Indeed, volatility is really a measure of nervousness in the markets and where there is nervousness, there is also uncertainty. Uncertainty in the markets can arise for many different reasons, but it usually happens before the release of important macroeconomic news (on our economic calendar), you can identify those by the three bulls' heads symbols) or during unexpected events with a major impact on a particular market sector or the geopolitical order of the world (natural disasters, wars).   On the charts of trading platforms, you can recognize a highly volatile market by the dynamically changing price of the instrument, the market is said to be going up or down, and if you switch to a candle chart, you may notice large candles. Conversely, non-volatile, calm markets move sideways without any significant dips or rises. Volatility can also be historical or implied, but we'll write about that another time. Now, let’s talk about how can one potentially profit from volatility and where to find suitable markets to do so.   How to potentially profit from volatility For intraday and swing traders, volatility is the key to their potential success. For traders, often the worst situation is the so-called "sideways" market movement, where the asset in question goes "sideways" without significant movements either up or down. With small and larger price fluctuations, traders can potentially generate interesting profits. One of the most volatile markets is the stock market, where some news can trigger very significant price movements. Events such as important economic reports, a stock split, or an acquisition announcement, for example, can move the price of a given stock. In addition, traders using CFDs for share trading can also use leverage to multiply any gains (and losses) in a given volatility.   The key to potential success is choosing the right stock titles. Some stocks and sectors can be considered more volatile, while others can go longer periods of time without significant fluctuations. So how do you look for volatility? Several indicators measure price movements in stocks, perhaps the most well-known is beta, which measures the volatility of a given stock compared to a benchmark stock index (typically the S&P 500 for US stocks). The beta indicator is listed on most well-known stock sites, but we can calculate it using the following formula: Beta = 1 In this case, the stock is highly correlated with the market and we can expect very similar movements to the benchmark index.   Beta < 1 If the beta is less than 1, we can consider the stock to be potentially less volatile than the stock market.   Beta > 1 Stocks with a beta greater than 1 are theoretically more volatile than the benchmark index. So, for example, if a stock's beta is 1.1, we think of it as 10% more volatile. It is stock titles with a beta above 1 that should be of most interest to investors looking to take advantage of volatility. However, it is not enough to monitor the beta alone, traders should not forget to monitor important news and fundamentals related to the company and the market in general. Thus, it is advisable to choose a few companies whose stocks have been significantly volatile in the past and where we expect strong movements due to positive and negative news to continue. So which sectors may be worth following? In which sectors can you potentially benefit from high volatility? Energy sector The energy companies sector has historically been one of the most volatile, as confirmed by the course of 2022 so far. The price development of energy companies is of course strongly linked to the price of energy commodities. These have had a great year - both natural gas and oil have appreciated by several tens of percent since the beginning of the year. However, this growth has not been without significant fluctuations, often by higher units of percent per day. The current geopolitical situation and growing talk of recession promise to continue the volatility in the sector. In the chart below, you can see the movement of Exxon Mobil Corp shares in recent weeks. Chart 1: Exxon Mobil shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages Travel industry Shares of companies related to the travel industry have always been very volatile. According to data from the beginning of the year (NYU Stern), even the companies classified as hotels and casinos were the most volatile when measured by beta. Given the coronavirus pandemic, this is not surprising. However, the threat of coronavirus still persists and there is currently the talk of another wave. However, global demand for travel is once again strong. Airlines and hotels are beginning to recover from the previous two dry years. As a result, both positive and negative news promises potential volatility going forward. In the chart below, you can see the movement of Hilton Hotels Corp shares in recent weeks. Chart 2: Hilton Hotels shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages Technology Technology is a very broad term - some companies in a given sector can be considered "blue chip" stocks, which can generally be less volatile and have the potential to appreciate nicely over time. These include Apple or Microsoft, for example. However, even these will not escape relatively high volatility in 2022. Traders looking for even stronger moves, however, will be more interested in smaller companies such as Uber, Zoom Technologies, Palantir, or PayPal. In the chart below, we can see the evolution of Twitter stock, which has undergone significant volatility in recent weeks. This was linked to the announcement of the acquisition (April gap) and its recent recall by Elon Musk. With both opposing parties facing a court battle, similarly wild news is just more water on the volatility mill. Chart 3: Twitter shares on the MT4 platform on the H1 timeframe along with the 50 and 100-day moving averages There are, of course, more sectors that are significantly volatile. Traders can follow companies in the healthcare sector, for example, where coronavirus vaccine companies are among the most interesting ones. Restaurants or aerospace and chemical companies can also be worth looking at. But few things can move stock markets as significantly as the economic cycle. We'll look at the impact of expansion and recession on stocks in our next article.  

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