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Highly Successful Traders’ Powerful Advice | Forex Trader Motivation

Posted: 06 Nov 2021 04:05 PM PDT




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In this Forex trader motivation video, you’ll be hearing the top advice from traders interviewed on the Desire To TRADE Podcast. Those are coming from some of the best full-time traders out there!

Watch other videos in this series: https://www.youtube.com/playlist?list=PLwmpbNUnTt6gKTyI6GqMI3LDeAMacq0Ao

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My name is Etienne Crete (from Montreal, Canada). I’m a swing Forex trader and help aspiring Forex traders develop a trading method that works for them so they can produce income allowing them to live with more freedom.

I blog at www.desiretotrade.com and host the Desire To Trade Podcast. I was fed up with the "fake" millionaire traders and the "get-rich-quick-trading guys". That’s why you can expect more free content from me than what other people charge for!

If you truly want to succeed in Forex trading, I believe you need to keep working on yourself so you can improve your strengths, but also your weaknesses. Do not focus solely on what you’re good at.

// Disclaimer
This video expresses my personal opinion only. Forex trading is risky. Make sure you are ready to trade. Even this will not guarantee you positive results. I am not responsible for any losses incurred due to your trading or anything else. I do not recommend any specific trade or action.

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EUR/USD Testing Support Ahead of the Latest US Jobs Report (NFP)

Posted: 06 Nov 2021 03:27 PM PDT



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EUR/USD Price, Chart, and Analysis

  • EUR/USD – boxed in and eyeing multi-week support.
  • Retail traders add to long positions, reduce shorts.

Keep up to date with all market-moving data releases and events by using the DailyFX Calendar

With central bank meetings out of the way, all eyes will now be on the monthly US Jobs Report (NFP) for the latest look at employment levels in the US. While this week's Fed meeting was seen as the main driver of price action this week, the NFP report may give the market a final boost of volatility ahead of the weekend. Last month's headline figure missed by a wide margin – 190k against 500k expectations – while this month 450k new jobs are expected to have been added. Headline figures are important and keep an eye on any revisions to last month's big miss.

The daily EUR/USD chart shows how the pair have been boxed in over the last 5-6 weeks with both support and resistance holding. The chart has a neutral to bearish bias with the pair back below all three simple moving averages, while the CCI indicator shows the pair to be currently oversold. The recent low around 1.1525 is likely to be tested again, especially if NFP comes in better-than-expected which would leave 1.1446, the 50% Fib retracement of the January 2017-February 2018 rally – as the next point of interest. Resistance remains around 1.1615.

Euro (EUR/USD) Daily Price Chart November 5, 2021

EUR/USD Testing Support Ahead of the Latest US Jobs Report (NFP)

Retail trader data show 61.94% of traders are net-long with the ratio of traders long to short at 1.63 to 1. The number of traders net-long is 14.18% higher than yesterday and 17.17% higher from last week, while the number of traders net-short is 8.30% lower than yesterday and 21.83% lower from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall.

Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bearish contrarian trading bias.

What is your view on EUR/USD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.




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Airo 5.0 | Forex Trading Made Easy | Trading Explained

Posted: 06 Nov 2021 03:02 PM PDT




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Moving Average (MA) Explained for Traders

Posted: 06 Nov 2021 02:25 PM PDT



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Introduction to Moving Averages:

EUR/USD with moving averages

Moving Average – Talking Points:

  • What is a moving average?
  • How do you calculate moving average?
  • What is the purpose of moving averages?
  • How do you interpret moving averages?

What is a Moving Average?

In technical analysis, the moving average is an indicator used to represent the average closing price of the market over a specified period of time. Traders often make use of moving averages as it can be a good indication of current market momentum.

The two most commonly used moving averages are the simple moving average (SMA) and the exponential moving average (EMA). The difference between these moving averages is that the simple moving average does not give any weighting to the averages in the data set whereas the exponential moving average will give more weighting to current prices.

What is a moving average in forex

How do you calculate moving average?

As explained above, the most common moving averages are the simple moving average (SMA) and the exponential moving average (EMA). Almost all charting packages will have a moving average as a technical indicator.

The simple moving average is simply the average of all the data points in the series divided by the number of points.

The challenge of the SMA is that all the data points will have equal weighting which may distort the true reflection of the current market's trend.

The EMA was developed to correct this problem as it will give more weighting to the most recent prices. This makes the EMA more sensitive to the current trends in the market and is useful when determining trend direction.

The mathematic formula for each can be found below:

Simple Moving Average:

SMA =

Moving Average (MA) Explained for TradersMoving Average (MA) Explained for Traders

Where:

A= Is each of the data points

n = Number of time periods

For example, looking at a 5-day SMA on a daily chart of EUR/USD and the closing prices over the 5 days are as follows:

Day 1: 1.321

Day 2: 1.301

Day 3: 1.325

Day 4: 1.327

Day 5: 1.326

SMA = (1.321 + 1.301 + 1.325 + 1.327 + 1.326)/5

SMA = 6.6/5

SMA = 1.32

Exponential Moving Average:

EMA =

Moving Average (MA) Explained for TradersMoving Average (MA) Explained for Traders

Where:

EMAt= EMA today

Vt= Value today

EMAt= EMA today

s =smoothing

d = number of days

Steps for calculating EMA:

1. Calculate the SMA for the particular time period

2. Calculate the multiplier for weighting the EMA using the formula:

[2 ÷ (selected time period + 1)]. So, for a 10-day moving average, the multiplier would be [2/(10+1)]= 0.01818.

3. Use the smoothing factor combined with the previous EMA to arrive at the current value.

For example, looking at a 10-day EMA for a share, the table below displays how the EMA would be calculated:

Date

Price

10-day SMA

Smoothing Constant 2/(10 + 1)

10-day EMA

1

24-Apr-18

23.24

2

25-Apr-18

22.99

3

26-Apr-18

22.85

4

27-Apr-18

23.00

5

28-Apr-18

22.96

6

29-Apr-18

22.21

7

30-Apr-18

21.99

8

1-May-18

22.43

9

2-May-18

22.24

10

3-May-18

22.55

22.65

22.65

11

4-May-18

22.15

22.54

0.1818

22.56

12

5-May-18

22.39

22.48

0.1818

22.53

13

6-May-18

22.38

22.43

0.1818

22.50

14

7-May-18

22.61

22.39

0.1818

22.52

15

8-May-18

23.36

22.43

0.1818

22.67

16

9-May-18

24.05

22.62

0.1818

22.92

17

10-May-18

23.75

22.79

0.1818

23.07

18

11-May-18

23.83

22.93

0.1818

23.21

19

12-May-18

23.95

23.10

0.1818

23.35

20

13-May-18

23.63

23.21

0.1818

23.40

What is the purpose of moving averages?

The main purpose of the moving average is to eliminate short-term fluctuations in the market. Because moving averages represent an average closing price over a selected period of time, the moving average allows traders to identify the overall trend of the market in a simple way.

Another benefit of the moving average is that it is a customizable indicator which means that the trader can select the time-frame that suits their trading objectives. Moving Averages are often used for market entries as well as determining possible support and resistancelevels. The moving average often acts as a resistance level when the price is trading below the MA and it acts as a support level when the price is trading above the MA.

How do you interpret moving averages?

There are 3 ways in which trader's use the moving average:

  • To determine the direction of the trend
  • To determine support and resistance levels
  • Using multiple moving averages for long- and short-term market trends

1. To determine the direction of the trend:

When prices are trending higher, the moving average will adjust by also moving higher to reflect the increasing prices. This could be interpreted as a bullish signal, where traders may prefer buying opportunities.

The opposite would be true if the price was consistently trading below the moving average indicator, where traders would then prefer selling opportunities due to the market signaling a downward trend.

2. The moving average for support and resistance levels:

The moving average can be used to determine support and resistance levels once a trader has placed a trade.

If the trader sees the moving average trending higher, they may enter the market on a retest of the moving average. Likewise, if the trader is already long in an uptrend market, then the moving average can be used as a stop loss level. The opposite is true for down trends.

The charts below are examples of how the moving average can be used as a both a support and a resistance level.

Germany30 with 50 Day MA as supportGold with 50 Day MA as resistance

3.Making use of multiple moving averages

It is common for traders to make use of multiple moving average indicators on a single chart, as depicted in the chart below. This allows traders to simultaneously assess the short and long-term trends in the market. As price crosses above or below these plotted levels on the graph it can be interpreted as either strength or weakness for a specific currency pair.This method of using more than one indicator can be extremely useful in trending markets and is similar to using the MACD oscillator.

When making use of multiple moving averages, many traders will look to see when the lines will cross. This phenomenon is referred to as 'The Golden Cross' when a bullish pattern is formed and 'The Death Cross' when the pattern is bearish.

A Golden cross is identified when the short-term moving average (such as the 50-day moving average) crosses above the long-term moving average (such as the 200-day moving average), while the Death cross represents the short-term moving average crossing below the long-term moving average. Traders that are long, should view a Death Cross as a time to consider closing the trade while those in short trades should view the Golden Cross as a signal to close out the trade.

GBP/USD Golden cross

Moving Average Indicator: A Summary

In summary, the Moving Average is a common indicator used by traders to determine trends in the market. Many traders use more than one Moving Average at a time as this gives a more holistic view of the market. Moving averages are often used to determine market entries as well as support and resistance levels.

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Weekly Forex Forecast/nzdcad /20-To-24 september 2021/forex forecast/forex analysis /#honeyforex

Posted: 06 Nov 2021 02:00 PM PDT




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USD, GBP/USD, EUR/GBP Price Action Set-Up

Posted: 06 Nov 2021 01:21 PM PDT



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USD, GBP, EUR/GBP Analysis and News

  • NFP Less Impactful In Light of Fed Action
  • GBP Edging Towards YTD Lows
  • EUR/GBP A Better Avenue to Fade GBP Weakness

USD: Now that the long-awaited Fed taper decision is here, the focus will turn to the rate outlook for 2022. However, while NFP tends to garner traders attention each month given the implications for Fed policy, in light of the Fed's decision out of the way, I would expect a more muted affair for today's NFP. Unless of course, the jobs report deviates notably from consensus.

US Dollar Technicals

USD, GBP/USD, EUR/GBP Price Action Set-Up

GBP: Unsurprisingly, the Pound is the worst performer after yesterday's BoE decision. In which the shock scenario had been realised. A reminder as to the scenario we highlighted in the BoE preview.

"The shock scenario would be for the Bank of England to not raise rates on the basis that markets are fully priced in for a rate lift-off at this week's meeting. Therefore, should this scenario be realised, this would leave GBP at risk of dropping to 1.3500 and prompt gilts to rally aggressively"… link

With the Pound extending its pullback since the European open, eyes are on the year to date low, situated at 1.3410. Below which, opens the door towards 1.3200-1.3300.

GBP/USD Chart: Daily Time Frame

USD, GBP/USD, EUR/GBP Price Action Set-Up

Source: Refinitiv

EUR/GBP: That being said, for those looking to fade GBP weakness, a more appropriate avenue would be via EUR/GBP, given that while the BoE decision was a surprise, they remain relatively more hawkish than the ECB. On the technical side, the 200DMA is being tested, however, should the cross close above, a look for exhaustion is likely around the mid 0.86s.

EUR/GBP Chart: Daily Time Frame

USD, GBP/USD, EUR/GBP Price Action Set-Up

Source: Refinitiv




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VPS Private Server para FOREX 2021 – instalación y configuración (SUB English)

Posted: 06 Nov 2021 12:58 PM PDT




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USD, Gold, US Rates Show Tepid Reaction to Strong US Nonfarm Payrolls

Posted: 06 Nov 2021 12:18 PM PDT



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USD, NFP Price Analysis & News

  • US NFP 531k vs 450k, Prior Reading Revised Higher
  • Unemployment Rate Drop to 4.6%
  • Market Reaction Tepid Given Fed Meeting

NFP Strong as Headline and Unemployment Rate Beats Expectations

A better than expected NFP headline at 531k vs 450k, while the prior reading had a sizeable revision higher to 312k from 194k. The unemployment rate fell 0.2ppts to 4.6% dropping below expectations of 4.7%.

Elsewhere, average hourly earnings printed in line with expectations on both the monthly and yearly readings.

Key USD technicals

Brief USD bid, S&P 500 tests 4700

In reaction to the headline, the USD immediately edged higher with the US 10yr yield hitting 1.55%, while gold dipped slightly. Meanwhile, across the equity space, the S&P 500 extended on its gains with index testing 4700. Overall, markets moves are somewhat marginal given the Fed meeting earlier in the week, which largely taken a lot of the excitement out of today's jobs figure as it won't notably move the needle for Fed policy in the short run.

Find Out More About Non-Farm Payrolls and How to Trade it

DATA OVERVIEW: DailyFX Economic Calendar

USD, Gold, US Rates Show Tepid Reaction to Strong US Nonfarm Payrolls

Source: DailyFX

USD, Gold, Rates Reaction to NFP: Intra-day Time Frame

USD, Gold, US Rates Show Tepid Reaction to Strong US Nonfarm Payrolls

Source: Refinitiv




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Impulse dynamic trading strategy – Forex Impulse Indicator

Posted: 06 Nov 2021 11:55 AM PDT




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Impulse dynamic trading strategy – Forex Impulse Indicator

Let's take a look at the Forex price movement impulse indicator called the Forex Impulse Indicator. It generates the signals based on the reading of the classic MACD indicator. This tool is also designed to send the more smoothed signals to a trader, which enables to enter the market more accurately.

Before reading the article and writing your questions in comments section, I recommend to watch this video. It's not long, but covers biggest part of questions on the topic.

The Impulse Indicator is a Metatrader 4 forex indicator that is built on the foundation of two indicators i.e. MACD and EMA.

The indicator consists of differently colored bars that are held within the indicator window.

When the signals on these indicators (MACD & EMA) go up or rise, the bars gets filled green (uptrend).

Red is the dominant color of the bars when these indicators (MACD & EMA) go down or decline (downtrend).

Blue bars represent a flat or range-bound forex market.

The Impulse MT4 Indicator offers currency traders the opportunity to spot setups within price dynamics that are not visible to the naked eye.

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US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/JPY, AUD/USD

Posted: 06 Nov 2021 11:16 AM PDT



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US Dollar Talking Points:

  • It was a big week for the USD with both the Fed and NFP. The overwhelming takeaway was the dovish take from the FOMC on Wednesday, to the degree that a really strong NFP report could barely prod the US Dollar up to a fresh high with the bid quickly dissipating afterwards.
  • Next week brings CPI back into the mix on Wednesday
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

NFP is now in the books and both of this week's major drivers of FOMC and NFP meetings produced a strong impact for stocks, continuing the bullish trends that re-started in early-October and have, so far, driven the S&P 500 by 10.26% since the low on October 1st.

This is an amazing run by any stretch but considering the late stage of the rally in terms of the bigger picture bull trend in stocks and its made even more outstanding. The FOMC meeting this week seemingly waved the red flag in front of bulls as the bank continued to take on a very dovish tone, with Powell even refusing to speculate on possible rate hikes, instead saying that the bank was looking for 'maximum employment' before making any changes to rate policy. That moved the focus to this morning's US Non-farm Payrolls report, which was solid all-the-way around and in response stocks continued to barrel higher with the S&P 500 jumping to another fresh all-time-high.

In the FX market, trends were less effusive. The US Dollar did push up to a fresh yearly high on the NFP release, but that move wasn't able to last and prices quickly pulled back into the resistance zone that was in-play ahead of the print.

There may be a deductive message here, given the Dollar's lack of enthusiasm in the face of seemingly positive data and developments. The USD has been very restrained around this key zone of resistance on the chart that had already reversed two short-term trends before today's inflection. This may be keeping the door open for pullback potential into early next week, even with the bigger picture bullish potential that remains in DXY.

Next week's big USD driver is CPI, set to be released on Wednesday.

US Dollar Four Hour Price Chart

US Dollar four hour price chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Continues to Hold Above 1.1500

If the USD is going to substantiate a significant breakout beyond this zone of resistance, it'll likely need an assist from EUR/USD. The pair continues to tap dance just above the 1.1500 psychological level, a price that's been baiting bears for almost a month now.

Longer-term, there is a falling wedge in-play which can keep the door open to bigger-picture reversal scenarios. The fundamental backdrop does not seem befitting of that scenario at the moment, but its worthy of mention given the lack of bearish activity around that 1.1500 spot.

EUR/USD Daily Price Chart

EURUSD Chart

Chart prepared by James Stanley; EURUSD on Tradingview

GBP/USD: Bad Week for British Pound Bulls

The British Pound was smashed this week when the BoE took on a dovish tone at their rate decision. This was somewhat surprising as rate markets held legitimate expectations of a possible hike that did not happen. The currency fell out of bed yesterday morning and that weakness has continued into today.

Similar to the above in EUR/USD, GBP/USD retains a longer-term bullish formation, with the bull flag. And also like the above, that directional scenario is seemingly at odds with the current fundamental flow, however the differentiation is that the BoE is still actively looking to hike rates, at some point in the coming months, while the ECB has essentially downplayed those possibilities.

Near-term, the move has become very oversold with RSI on the four-hour chart testing below the 20-level ahead of this morning' bounce. Nonetheless, GBP/USD is holding support ahead of a test of the 2021 low at 1.3412. If this morning's higher low does hold, the door can remain open for pullback scenarios, particularly for those looking for the USD pullback to hold through early trade next week.

GBP/USD Four-Hour Price Chart

gbpusd price chart

Chart prepared by James Stanley; GBPUSD on Tradingview

USD/JPY Ranges as Yields Soften

Powell was pretty dovish on Wednesday and that's already hit rates markets with Treasury yields softening. Going along with that move has been a pullback in Yen weakness themes that were so prominent at the Q4 open. USD/JPY is putting in lower-highs over the past week and there may be a deeper pullback in the pair's path.

From the daily chart below, we can see a short-term descending triangle brewing after bulls have failed to continue the move. This may be pointing to that pullback potential into early next week trade.

USD/JPY Daily Price Chart

usdjpy daily price chart

Chart prepared by James Stanley; USDJPY on Tradingview

AUD/USD Set for a Deeper Turn?

Also on the dovish Central Bank front we heard from the RBA earlier this week, after which the Aussie turned lower and has pretty much continued to drive in that direction for the remainder of the week. The rate decision led to a bearish engulfing candlestick and that momentum has pushed prices down to a fresh near-term low.

This does highlight the potential of AUD/USD for USD-strength scenarios into next week, with the possibility of a deeper turn in the pair.

AUD/USD Daily Price Chart

AUDUSD Daily Price Chart

Chart prepared by James Stanley; GBPUSD on Tradingview

— Written by James Stanley, Senior Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX




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