Today's webinar is at 7.45 London time, so hope you can come along. Market appears to be puzzled by sudden move higher in JPY overnight & reasons given from 'fat finger' to 'absolutely no idea'. But with JPY heavily oversold on the time frames we follow - particularly against the GBP it wasn't a huge surprise. On the day GBP/JPY hit the very strong resistance in the 162.50 region, which has pushed the pair back down to the VPOC on the daily chart which may now offer some support. However, we do have second estimate GDP for UK this morning, so we can expect a degree of volatility. And, once month end is out of the way, and next week's Bank Holiday - it's Brexit and more Brexit! ... See MoreSee Less
In yesterday's we looked at the gold chart on the MT4 platform & why gold is now looking so bearish. Main driver is now the USD & the talk once again about an interest rate rise in June. What was significant in yesterday's price action for gold was the extent to which the precious metal had fallen at the start of the US session - in fact gold continued lower, once the low of the session had been taken out. I was going to do a major piece on gold, but Trader Dan has beaten me to it & I would like to share this with you here. Meantime you can catch the webinar recordingat the members' site & listent in to what we said!
Gold : Just the Facts Mam Posted on May 24, 2016,11:55 pm by Trader Dan It wasn’t much, a bit less than 4 tons to be exact, but today marked the first day in nearly a month that GLD reported a drawdown in gold holdings. The last such occurrence was all the way back on April 25. Considering the amoun...
Don't let anyone dissuade you from trading on a Monday morning; instead trust your chart reading and go with the flow. GBP/JPY is one of our portfolio pairs & this morning has delivered both to the downside & upside. Will be doing a video later to explain how and why. ... See MoreSee Less
Saturday saw David & I presenting at a private traders' event in London where our topic was, naturally, volume price analysis.
And the one question we are always asked is can markets rise on 'low' volume, and our answer is always the same - volume is contextual and proportionate. And the best way to explain this is with a chart, and a great example is the YM (the e-mini future for the Dow Jones) which, as you can see has been happily breaking out into new high ground, supported by what we would describe as proportionate volume.
In other words it tallies with the price action, and unlike the climatic volume that first appeared in November which has been the precursor to this steady move higher.
So the move higher in the indices we are currently witnessing is well within the norm.
For any major reversal lower we would need to see a very different volume/price action profile, similar to the Wyckoff law of effort & result. So far this has not appeared in the slower time frames, and until it does there is no reason to suppose the markets cannot continue higher. ... See MoreSee Less
Another positive day for US equities with the major indices all rising strongly. For the YM emini we are back once again testing the highs of last year with 18,000 now on the horizon, and with a solid platform of support now in below which held through the congestion period. Volumes are solid and supportive, and for a continuation we now need to see this psychological level taken out with the springboard then in place for a sustained move higer longer term. ... See MoreSee Less
Another positive day for crude oil yesterday with bullish momentum maintained throughout the session. WTI was one of the markets we focused on in yesterday's US trading room on both MT4 and NInjatrader. The MT4 platform has opened up many of the markets once reserved for futures traders, so a great place to dip a toe in the water of commodities and indices without the need for a futures brokerage account. The bullish momentum in oil has been no great surprise given the stopping volumes which appeared several weeks ago on the slower time frame charts and referenced in yesterday's room with both tick and time charts then delivering the intraday trading opportunities. Technical and fundamentals are now combining in a confluence of positive news. ... See MoreSee Less
This was from our presentation a couple of weeks ago for a private traders group where we introduced and explained some of the principles of volume price analysis across the markets. Also explained the importance of El Nino in context of soft commodities and one in particular we highlighted was Soybean which was likely to benefit further from this driver. Bullish momentum maintained as expected with contract breaking into four figures. ... See MoreSee Less
Nice trade developed on the British pound this morning in the London session across the faster timeframes with the yellow line (GBP) rising strongly from overbought across the time window. Spoilt for choice but the GBP/USD delivered and with some way to go ... See MoreSee Less