Tag: gbpusd

Sterling by the Charts

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


The UK economy, it seems, has been a study in opposites. It has swung from having been the fastest to the slowest, from experiencing high growth and then sluggishness, from moving from a high inflation environment to a low inflation environment. The UK economy is the great dichotomy, comprised of fading expectations and the bursting of optimistic sentiment that together carves the path of the Pound Sterling, a path that is as shaky now as it ever was and which, it seems, has been broken just this week.

Sterling Not Coming Back?

Looking at the chart below, we can tell much about the governing dynamics of Sterling buyers and sellers. Dips in the Sterling trade vs the Dollar were plentiful; back in 2009, when the crisis was at its climax, back in 2010, when UK growth was pegged as just “sluggish,” and then back in 2013, when it seemed the UK economy had finally lost all steam. Yet each and every time Sterling buyers emerged; in fact, not only did they emerge and crowd back into what they deemed an undervalued currency, but each time they emerged at a higher point, painting a picture of a fragile but steadily ascending path for the Pound vs the Dollar. Yet as the latest point on the chart shows, at this point in time the buyers have not re-emerged, letting the Pound break its ascending path. Why, this time in particular, are Sterling buyers not coming back? Continue reading "Sterling by the Charts" →

Chart to Watch - GBPUSD

Posted on by The INO.com Team

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of the GBPUSD Forex Pair (GBPUSD).

Today let's take a look at the GBPUSD, which is possibly setting up a good opportunity to go long.

The GBPUSD is probably making a Head and Shoulders bottom and if it breaks out above the Neckline that would be a very bullish sign that this pair is heading higher.

With Forex MarketClub uses the weekly Trade Triangle for trend direction and MarketClub uses the daily Trade Triangle for timing, so if the GBPUSD puts in a green daily Trade Triangle, we could consider going long.

The MACD is rising and if the GBPUSD continues higher, the MACD will move through the zero line. Continue reading "Chart to Watch - GBPUSD" →

The Giant Flaw In Correlation Trading (UPDATE)

Posted on by The INO.com Team

Last week Jason Fielder gave us some general insight on correlation trading, but today he pulls out ALL the stops and dives deep into a proven method for successful correlation trading! Jason said the only way he would teach this much is if I mentioned his free webinar that focuses on correlation trading! (Please see Ed note below)

Ed Note: The webinar has passed and Jason is now making live his Correlation Code, please check it out.

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I have some unfortunate news for you Trader's Blog readers, correlation trading does have one GIANT FLAW.

While correlations will tell you that a move is about to occur, correlation alone doesn’t tell you which pair is moving or the direction it will be moving in.

In other words, you know you need to put on a trade, but you don’t know which pair to trade or whether you need to buy or sell short. This massive limitation in correlation trading has stifled traders for years, which is why so few traders use correlations despite its obvious benefits.

Of the handful of traders who did trade with correlations, most just used it as a filter to increase the accuracy of an already-profitable system.

Well I for one wasn’t willing to stop there...

Continue reading "The Giant Flaw In Correlation Trading (UPDATE)" →

Forex 1-2-3 Method

Posted on by The INO.com Team
Let's face it... Forex is a market that has HUGE potential, HUGE liquidity, and little good information out there on how to trade it with success. That's why I've asked Mark McRae from Forex Avenger to come and teach us a bit about a 1-2-3 Method that his partner David Curran from Forex Avenger has had major success with. Please take time, read the blog entry, and visit Forex Avenger to see the success they have experienced trading forex!

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This particular technique has been around for a long time and I first saw it used in the futures market. Since then I have seen traders using it on just about every market and when applied well, can give amazingly accurate entry levels.

Lets first start with the basic concept. During the course of any trend, either up or down, the market will form little peaks and valleys. see the chart below:

The problem is, how do you know when to enter the market and where do you get out. This is where the 1-2-3 method comes in. First let's look at a typical 1-2-3 set up:


Nice and simple, but it still doesn't tell us if we should take the trade. For this we add an indictor. You could use just about any indicator with this method, but my preferred indicator is MACD with the standard settings of 12,26,9. With the indicator added, it now looks like this:

Now here is where it gets interesting. The rules for the trade are as follows:

Uptrend

  1. This works best as a reversal pattern, so identify a previous downtrend.
  2. Wait for the MACD to signal a buy and for the 1-2-3 set up tobe in place.
  3. As the market pulls back to point 3, the MACD should remain inbuy mode or just slightly dip into sell.
  4. Place a buy entry order 1 pip above point 2
  5. Place a stop loss order 1 pip below point 3
  6. Measure the distance between point 2 and 3 and project thatforward for your exit.
  7. Point 3, should not be lower than point 1

The reverse is true for short trades. As the market progresses you can trail your stop to 1 pip below the most recent low (Valley in an uptrend). You can also use a break in a trend line as an exit.

Some examples:



There are a lot of variations on the 1-2-3 setup but the basic concept is always the same. Try experimenting with it on your favorite time frame.

Good Trading

Best Regards
Mark McRae Forex Avenger

Bio - Mark McRae is a fulltime professional trader, author and coach. He has coached some of the top names in Forex trading. David Curran, Forex's latest rising star attributes his success in the Forex market to the teachings of Mark McRae. To read more about David, go HERE