intraday trading

Analyzing Monday's trades: GBP/USD on 30M chart     The GBP/USD pair managed to both rise and fall on Monday. The pound sterling corrected against Friday's decline, but in the second half of the day, it traded higher again, which corresponds to the current trend. There were no important economic reports in the UK or in the US.   Three representatives of the FOMC spoke in the US, and Bank of England Governor Andrew Bailey is usually speaking in the UK around this time. For obvious reasons, Bailey's speech could not have any influence on the pair's movements during the day. And the FOMC members' speeches took place in the evening, so they also could not have provoked either the morning fall or the afternoon rise.   However, volatility was over 100 points, which is quite a lot for a Monday. The uptrend persists, and we have to point out that the growth is groundless, but there's nothing we can do if the market wishes to buy the pair, regardless of the fundamental background.   GBP/USD on 5M chart   Several entry points materialized on the 5M chart. First, the pair bounced twice from the level of 1.2801 (buy signals duplicated each other), but it only rose by 13 pips. It was impractical to work out these signals, as there was a high probability of a flat on Monday, and the Stop Loss on the deal should have been set below the level of 1.2779. When a sell signal was formed in the form of overcoming the area of 1.2779-1.2801, it was already clear that there would be no flat, so the deal could be worked out, but it did not bring profit, it closed at a break-even stop loss. The next buy signal could have been executed, and it would have brought a profit of 30 pips. In general, the pair changed its direction of movement several times on Monday, which is always bad for intraday trading.   Trading tips on Tuesday: As seen on the 30M chart, the GBP/USD pair continues to form a new uptrend. The pound can still rise even on those days when there is no fundamental background. Therefore, purely technically, GBP may extend its upward movement, but fundamental factors are still very doubtful. The key levels on the 5M chart are 1.2538, 1.2597-1.2605, 1.2653, 1.2688, 1.2748, 1.2779-1.2801, 1.2848-1.2860, 1.2913, 1.2981-1.2993. When the price moves 20 pips in the right direction after opening a trade, a stop loss can be set at breakeven. On Tuesday, the UK will release reports on jobless claims, unemployment, and wages. In the US, Federal Reserve official James Bullard will speak. Basic trading rules: 1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.     2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.     3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.     4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.     5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.     6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.    

Buyer liquidity began to accumulate behind the very important extreme for buyers in EUR/USD located at 1.08340.   In fact, on the M15 timeframe, a breakdown occurred around the level of 1.09.   Market players can take this opportunity to open short positions at the test of 1.0930, with stop-loss placed at 1.09200 and take-profit set upon the breakdown of 1.08350. The trading idea came from the framework of the "Price Action" and "Stop Hunting" strategies. Good luck in trading and don't forget to control the risks! Have a nice day.  

Analysis of transactions and tips for trading GBP/USD The test of 1.2623 on Monday afternoon, coinciding with the drop of the MACD line from zero, prompted a sell signal that should have led to a price decrease. However, the signal only resulted in losses, as the bearish market did not continue. Data on the UK's service and composite PMI lies ahead, and they could lead to a further drop in GBP/USD provided that the reports show a downward revision. This means that market players should be inclined more to short positions, especially in the morning. If sellers do not show activity after updating the monthly lows, it may be appropriate to consider long positions.   For long positions: Buy when pound hits 1.2621 (green line on the chart) and take profit at the price of 1.2671 (thicker green line on the chart). Growth will occur amid very good PMI data. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2570, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2621 and 1.2671. For short positions: Sell when pound reaches 1.2570 (red line on the chart) and take profit at the price of 1.2530. Pressure will increase amid weak statistics. However, when selling, ensure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2621, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2570 and 1.2530.   What's on the chart: Thin green line - entry price at which you can buy GBP/USD Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely. Thin red line - entry price at which you can sell GBP/USD Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely. MACD line- it is important to be guided by overbought and oversold areas when entering the market   Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.  

Analysis of transactions and tips for trading USD/JPY Further growth became limited because the test of 149.04 coincided with the sharp rise of the MACD line from zero. The second test, on the other hand, took place when the MACD line returned from the overbought area, providing a signal to sell. This led to a price decrease of over 50 pips. The Bank of Japan's intervention holds significant importance for the currency market. But for today, the pair's decline will be influenced by data from the US labor market, where unemployment figures will decrease to 3.7%. A sharp reduction in the number of new jobs in September could also weaken dollar, leading to an active sale of USD/JPY. Otherwise, if the data surpass forecasts even by a small margin, the pair will continue to rise, once again reaching 150 yen per dollar. Data on average hourly earnings in the US could also influence market sentiment, unlike the interview with FOMC member Christopher Waller.   For long positions: Buy when the price hits 149.04 (green line on the chart) and take profit at 150.03. Growth will only be possible amid very strong data from the US labor market, continuing the bullish trend. When buying, ensure that the MACD line lies above zero or just starts to rise from it. Also consider buying USD/JPY after two consecutive price tests of 148.65, but the MACD line should be in the oversold area as only by that will the market reverse to 149.04 and 150.03. For short positions: Sell when the price reaches 148.65 (red line on the chart) and take profit at 147.77. Pressure will return in the event of a sharp reduction in jobs in the US and weak statistics. When selling, ensure that the MACD line lies below zero or drops down from it. Also consider selling USD/JPY after two consecutive price tests of 149.04, but the MACD line should be in the overbought area as only by that will the market reverse to 148.65 and 147.77.     What's on the chart: Thin green line - entry price at which you can buy USD/JPY Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely. Thin red line - entry price at which you can sell USD/JPY Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely. MACD line- it is important to be guided by overbought and oversold areas when entering the market   Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.  

Analysis of transactions and tips for trading GBP/USD Further growth became limited because the first test of 1.2176 coincided with the sharp rise of the MACD line from zero. As for its second test, it occurred when the MACD line went into the overbought area, providing a signal to sell. This resulted in a price decrease of over 20 pips. The remarks of Bank of England member Huw Pill did not help pound rally, unlike the soft statements from Fed representatives, which led to an upward movement in the pair towards the end of the US session. However, the price remained within the sideways channel, so sellers have a good chance of returning the market to its lower boundary today. Waiting for data on the UK's unemployment rate and speech by Bank of England member Swati Dhingra.     For long positions: Buy when pound hits 1.2190 (green line on the chart) and take profit at the price of 1.2229 (thicker green line on the chart). Growth will occur after the breakdown of the upper boundary of the sideways channel. However, when buying, the MACD line should be above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2157, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2190 and 1.2229. For short positions: Sell when pound reaches 1.2157 (red line on the chart) and take profit at the price of 1.2113. Pressure will increase since the chances of a decline seem much higher than those of a breakout. However, when selling, the MACD line should be below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2190, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2157 and 1.2113.   What's on the chart: Thin green line - entry price at which you can buy GBP/USD Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely. Thin red line - entry price at which you can sell GBP/USD Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely. MACD line- it is important to be guided by overbought and oversold areas when entering the market     Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.  

Analysis of transactions and tips for trading GBP/USD The test of 1.2449 took place when the MACD line moved downward from zero, prompting a signal to sell. This resulted in a price decrease of over 50 pips. The sharp decline in UK inflation led to a sell-off in pound in the morning. Then, it intensified after the release of strong retail sales data from the US. The empty macroeconomic calendar today will give pound the chance of continuing its decline in line with yesterday's trend. Meanwhile, the speech of Bank of England MPC member Swati Dhingra will not have much impact to the market.     For long positions: Buy when pound hits 1.2402 (green line on the chart) and take profit at the price of 1.2449 (thicker green line on the chart). Growth will occur as long as the daily low remains protected. When buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2385, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2402 and 1.2449. For short positions: Sell when pound reaches 1.2385 (red line on the chart) and take profit at the price of 1.2337. Pressure will continue until trading goes below today's high. When selling, ensure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2402,, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2385 and 1.2337.     What's on the chart: Thin green line - entry price at which you can buy GBP/USD Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely. Thin red line - entry price at which you can sell GBP/USD Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely. MACD line- it is important to be guided by overbought and oversold areas when entering the market Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.  

Pivot points, an often overlooked technical analysis tool, can be a game-changer in daily Forex trading. Let's delve into what pivot points are, how to calculate them, and practical strategies for incorporating them into your trading routine. Understanding Pivot Points Pivot points are a mathematical formula used to identify support and resistance levels. This objective tool automatically determines potential areas where a currency's price might rise, fall, or stall. Derived from pure mathematical calculations, pivot points rely on historical high, low, and closing prices. Traders primarily apply this indicator in day trading, using weekly or monthly quotes as the basis for calculations. For intraday trading, daily pivot points are commonly utilized. The Pivot Points Formula The formula for pivot points involves essential data points: Closing price (C) Highest price within a period (H) Lowest price within a period (L) The pivotal point (P) is calculated as the arithmetic mean of these values: P = (C + H + L)/3. Further calculations yield resistance and support levels: First Resistance (R1): R1 = 2*P – L Second Resistance (R2): R2 = P + (H – L) Third Resistance (R3): R3 = P + (H – L)*2 Similarly, support levels (S) are determined: First Support (S1): S1 = 2*P – H Second Support (S2): S2 = P – (R1 – S1) Third Support (S3): S3 = P – (H – L)*2 Applying Pivot Points in Practice Various approaches exist for leveraging pivot points in making investment decisions. Traders may customize their use based on individual trading methods. Here are general guidelines to aid in concrete actions: Buying and Selling Zones: Typically, above the pivot points line, traders consider a selling zone, engaging in short positions. Conversely, below this line lies the buying zone, where long positions are common. Viewing pivot points as reversal points, traders anticipate price consolidation. Opening a position occurs when the price drops to the S1 level, with a selling signal when reaching the R1 level. Prices often oscillate between R1 and S1, the first resistance and support levels. Breakout Strategy: Alternatively, traders might opt to open a position after breaking a designated level, anticipating a continuation of the established trend. In this scenario, a sell position is initiated when the price falls below S1, while a buy position is triggered when the price surpasses R1, with the aim of reaching a value close to R2. Pivot points serve as one of the many tools for making investment decisions. Some traders find them invaluable, using them frequently, while others incorporate them as a supportive element alongside decisions driven by other analyses. Every trader should experiment and devise a personalized trading strategy. However, for optimal and reliable results, it is advisable to use this method concurrently with other approaches. Incorporating pivot points into your trading arsenal can provide a valuable edge, helping you navigate the complex landscape of Forex markets more effectively. Remember, while pivot points offer insights, combining them with a diversified strategy enhances your overall trading acumen.