Wednesday, October 17, 2012

FXdirekt Bank Latest Forex Broker Scam

According to a to a report from German newspaper and later analyzed on Forex Magnates, German broker FXdirekt Bank  has been defrauding and scamming customers for the past several years.  The expose report interviewed clients and employees after the broker was sued for illegal business behavior.  According to the report, FXdirekt Bank ran an intricate system of cheating customers from the time they had registered through the lifetime activity of the account.

Tuesday, October 16, 2012

Bollinger Band Strategy To Determine Trend or Sideways Market (video)



From Rockwell Trading.  This is a simple but effective way to trade with Bollinger Bands.  The presenter points out the main issue with using Bollinger Bands for technical analysis indication; they are great fro trending markets but don’t work for trending markets.

Basically, when it comes to any Bollinger Band strategy, they all pretty much are based on fading moves (shorting) when the price hits the upper band, or buying when the price hits the lower band.  But, in trending markets, prices can hit an upper band and keep moving higher.

In this strategy from Rockwell Trading, they show you how to determine whether the market is trending or moving sideways.  To do this, they look at the direction of the bands.  For example, in an uptrend, the upper Bollinger band will also be in an upwards trajectory.  In these cases, you won’t want to fade to up move as the market is trending and using Bollinger Bands for a signal isn’t very effective.  However, if the upper band is also starting to move sideways or lower, it will indicate that momentum for an uptrend hasn’t been established yet, and we are in a sideways market.  In such a situation, fading or buying based on the price hitting the lower or upper band can be more effective.

Missing from the video though are recommended timeframes for trading Bollinger Bands. But overall, it’s a clever strategy for using Bollinger Bands as it effectively offers an indicator as towards whether the market is moving sideways (tradable) or trending (avoid trading with Bollinger Bands).

 

Monday, September 24, 2012

Forex & Commodity Update From ACM Gold

TODAY'S TECHNICAL
GOLD 
Resistance Levels: 
$ 1789.0 - $ 1799.9 - $ 1809.9
SUPPORT LEVELS: 
$ 1768.1 - $ 1758.1 - $ 1747.2
STRATEGY: 
Buy on Dips
Long above $1750; target $1767 and $1775. A break below $1750 may call for $1739 and $1725.
Silver 
Resistance Levels: 
$ 35.1 - $ 35.6 - $ 36.0
SUPPORT LEVELS: 
$ 34.2 - $ 33.9 - $ 33.3
STRATEGY: 
Buy on Dips
Long above $33.70; target $34.50, and $34.90. A break above $33.70 may call for $32.60 and $31.90.
Crude Oil 
Resistance Levels: 
$ 93.6 - $ 94.3 - $ 94.8
SUPPORT LEVELS: 
$ 92.3 - $ 91.8 - $ 91.1
STRATEGY: 
Neutral
Long above $90.50 - $91.50; target $93.40 and $94.10. 
Sell below $94.00 - $94.70, target $91.50 and $90.50

Tuesday, August 21, 2012

Tuesday August 21 Market Commentary (SVS Securities)

Tuesday August, 21 201

Market News and Views From SVS Securities
The FTSE 100 is called to open higher this morning although gains are seen as limited, given the backdrop surrounding the euro zone together with the flat performance and declines on Wall Street and in Asia respectively overnight. Today's economic diary is focused on the release of the domestic public sector finance figures and the latest CBI Industrial Trends survey data (see below). Commodity prices are flat to higher and on the foreign exchanges, the key currencies are continuing to trade in narrow ranges as markets await further developments on the euro zone debt situation.

Today's Company announcements

Barclays Talks with Absa to combine Africa operations. The bank has confirmed that it and its subsidiary Absa are in discussions about combining the majority of the Barclays Africa operations with Absa. The proposed combination would be subject to the approval of both boards, Absa shareholder approval and regulatory approvals. It added that there was no certainty that these talks will lead to a combination, and the proposed combination would not be expected to be completed until 2013.

Tuesday, June 26, 2012

RSI Strategy Setup: Selling Gold


Moving away from Forex trading today and looking at Gold.  As you can see from the chart below, prices of Gold hit overbought levels after bouncing higher yesterday.  Overall Gold has been on the defensive following last week’s FOMC Meeting.  As such, with a negative longer term trend of Gold in place, the metal could be a retracement candidate as its short term 5MA has crossed below its 20MA, showing momentum to the downside accelerating again.  As such, we would be sellers at current levels.  Per our RSI Strategy rules, we are stopped if the 5MA crosses back above the 20MA for an entire candle.  Our target is 1572. 

Gold June 26th 


Monday, June 25, 2012

Forex Breakout Setups: EURUSD & GBPUSD


In Forex trading this morning, our RSI & BOLLINGER Band strategies aren’t anywhere close to triggering a setup.  Therefore, we figured we’d devote today’s analysis to potential breakout setups currently in place or potentially occurring.

Lets start with the EURUSD

The EURUSD has fallen below its June uptrend. More importantly, the early weakness this morning caused the pair to trade below last week’s lows to a day low 1.2485.  That drop revealed that the pair continues to see little buying interest as Forex traders are backing off of their bids.  As such, we could see further weakness in the EURUSD as the breakout lower gathers momentum.  Sellers can either put stops at 1.2520 (last week’s lows) or 1.2545 (day highs) on the short positions, with a target of 1.2420.

Friday, June 22, 2012

Friday’s Forex Setups: Buying the GBPUSD & Watching the Bollinger Bands


Yesterday we highlighted that the big move in the Forex markets were setting us up for potential RSI retracement strategy trades today.  We were focusing on the NZDUSD, GBPUSD & AUDUSD, as each showed relative strength earlier in the week that raised the chances that the pair’s oversold RSI levels would lead to a retracement bounce trade.  At this point, only the GBPUSD is looking ready to trade.  Elsewhere, our Bollinger Band momentum strategy is starting to project potential setups for later in the day.  Let’s start with today’s current trade, the GBPUSD.


GBPUSD: As you can see from the chart below, the pair went into oversold RSI levels yesterday on its 1hour charts.  Currently, the 5MA (red line) and crossed over the 20MA (green line) indicating a Buy setup for the GBPUSD.  As such, we would be buyers at the 1.5630 levels with a target at 1.5685.  The position should also be closed if the 5MA crosses back below the 20MA for an entire candle.