2023-09-18 02:54
From the previous week, the USDCAD currency pair has recently rebounded from a bearish trend when it reached the critical support level of 1.34953. From Elliot Wave Theory, the pair would likely experience a short-term three-wave rebound to around 0.382 (1.35700) level before continuing their bearish trend. Traders may seek BUY opportunities in the short term while monitoring for SELL opportunities in the long term especially if the price breaks below the critical support level of 1.34953. Support: 1.34953 Resistance: 1.35700 Open a VCPlus trading account now to use the advanced charts (with a signal generator) for FREE! https://bit.ly/3zIdlEM
2023-08-14 09:50
In this blog, we’ll outline a trading strategy that combines 2 indicators (Bollinger bands and Turtle 20 Strategy) that are widely used by traders all around the world. Bollinger Bands (BB) is a type of trading indicator that consists of a centerline (simple moving average) and two outer bands that represent the standard deviation of price movements, helping traders assess market volatility and potential price reversals. As a rule of thumb, the price is in an uptrend if it is above the middle line and the bands have an upward bias. On the other hand, the price will be in a downtrend if it is below the middle line and the bands have a downward bias. The Turtle 20 Strategy is a trend-following trading approach based on a 20-day breakout system, where traders find buy and sell entry points. Based on the strategy, traders will enter long positions (buy) when the price breaks above the highest high of the past 20 days and enter short positions (sell) when the price breaks below the lowest low of the past 20 days, aiming to ride the trend and capture substantial price movements. The Turtle 20 Strategy is stronger when there is a clearer trend. The Bollinger Bands provide valuable information about market volatility, which can complement the Turtle strategy's trend-following nature. When used together, the Bollinger Bands can help traders confirm the strength of a trend identified by the Turtle 20 strategy. The combined strategy criteria are as below: For BUY: Price has to break above the middle line of the Bollinger Bands with an upward bias for the bands. Turtle 20 Strategy shows a buy signal. Stop loss when the price breaks below the middle line. For SELL: Price has to break below the middle line of the Bollinger Bands with a downward bias for the bands. Turtle 20 Strategy shows a sell signal. Stop loss when the price breaks above the middle line. Both the indicator and trading strategy can be easily generated with just a few clicks on the VCPlus chart like the image shown below. Image 1: AUDUSD chart, 30-minute time frame In the AUDUSD chart, I’ve highlighted 3 areas (buy signals 1,3,4) in rectangle boxes where the price breaks above the Bollinger Bands’ middle line and where there are also buy signals from Turtle 20 Strategy. As for buy signal 2, break below the middle line of the Bollinger Bands shortly after the signal is out, which will trigger the stop loss point and help us avoid losing further. In conclusion, the combination of Bollinger Bands and the Turtle trading strategy can help traders find entry points consistently while managing risk effectively. Happy trading! If you’re interested to try out your strategy with a VCPlus trading account, sign up now using this link: https://bit.ly/3zIdlEM
2023-08-10 06:36
The CPI (Consumer Price Index) report is an important economic indicator that measures changes in the average prices of a basket of goods and services commonly purchased by households. It provides insight into inflationary trends and helps assess the purchasing power of consumers. The CPI report is released at regular intervals by government statistical agencies, and it compares current price levels to a base period. By monitoring the CPI report, policymakers, economists, and traders can gain valuable insights into the state of the economy and make informed decisions regarding monetary and fiscal policies, as well as investment strategies. The Federal Reserve (the "Fed") considers the CPI report as a crucial tool for adjusting its monetary policy. By monitoring the CPI report, which provides insights into inflationary trends, the Fed can assess whether the current levels of inflation align with its desired target. If the CPI report indicates that inflation is rising above the target rate set by the Fed, it may prompt the central bank to implement contractionary monetary policy measures. Conversely, if the CPI report suggests that inflation is below the desired target or the economy is experiencing deflationary pressures, the Fed may adopt expansionary monetary policy. Today, the CPI report is scheduled to be released at approximately 8.30 pm Malaysian time. Given the report's importance, it is expected to trigger substantial fluctuations in commodity prices. In order to take advantage of these anticipated fluctuations and potentially generate profits, we can consider implementing stop-limit orders. Here are the steps I normally use to set up the stop-limit orders, using XAUUSD pair: Identify recent resistance and support levels on that day. From the example above, the resistance level is at 1,923.93 and the support level is at 1914.07. Place a BUY stop-limit order at the resistance level and a SELL stop-limit order at the support level. Set to take profit at around 80 pips (for conservative traders, you can set it at 50 pips, and for more risk takers, you can set it at 100 pips or more). Wait for either one of the orders to be fulfilled around 8.45 pm as the market reflects the sentiments of the CPI report. Open a VCPlus trading account: https://bit.ly/3zIdlEM
2023-07-27 03:56
Gold price continues its positive trend for the third consecutive day, hovering near the weekly high after the Federal Reserve delivered what some expected to be its last rate hike. The safe-haven appeal of the precious metal is being bolstered by concerns of an upcoming recession, ahead of key events like the ECB decisions and significant US macro data. However, potential rate hikes by major central banks could impede XAU/USD's progress. The XAU/USD pair shows an upward trend confirmed by Turtle 55 Strategy signal on 26/7/2023, testing the $1,982 resistance. The Bollinger Bands on the 1-hour chart indicate a bullish bias, with the price well above the SMA 20 trendline. A breakout above $1,982 could reinforce the bullish sentiment, targeting the next resistance around $1,993. The bullish outlook holds as long as the price remains above $1,964. A drop below that level could expose Gold to a support level near $1,954. Support levels: $1,964, $1,954 Resistance levels: $1,982, $1,993 Click here to open a VCPlus trading account.
