Forex Forum
Global-View Forex Forum since 1996
- This topic has 6,139 replies, 28 voices, and was last updated 2 hours, 51 minutes ago by .
-
US Dollar Index Weekly Chart
Barring a burst higher, the US Dollar Index looks set for the first down week for the year (and in 8 weeks) although trading well off yesterday’s low.
By itself, this does not mean the dollar is about to reverse but does suggest the dollar has lost some steam.
in any case, those who follow me know I am always on the lookout for patterns and here is one that appears will be broken.
AUDUSD Breaks Free: Uptrend Resumption or False Dawn?
AUDUSD has clawed its way back from recent lows, breaking above the confines of the falling price channel on the 4-hour chart. This bullish breakout raises questions: Has the downtrend truly ended, or is this just a temporary reprieve?
Uptrend Resumed: Channel Breakout as Confirmation?
Channel Breach: The break above the falling channel, established from the 0.6870 high, signifies a potential shift in momentum. This suggests a possible end to the downtrend and the start of a new uptrend from the recent low of 0.6442.
Potential for Continued Rally:
Resistance Levels: If the uptrend continues, the next target for AUDUSD could be the 0.6624 resistance level. Surpassing this hurdle would open the door for further gains towards 0.6700, solidifying the bullish momentum.
Support Levels to Watch for Pullbacks:
Initial Support: The initial support to watch is at 0.6532. A breakdown below this level could indicate a loss of momentum and a potential pullback towards the 0.6500 area.
Key Support: A further breach below 0.6500 could trigger a decline towards the previous low of 0.6442, potentially signaling a resumption of the downtrend.Overall Sentiment:
The technical picture offers a mixed outlook for AUDUSD. The breakout from the channel suggests a potential trend reversal, but confirmation will come from holding above the 0.6532 support and pushing towards the 0.6624 resistance. Monitoring the price action around these key levels will be crucial in determining the pair’s next move.
Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. Please conduct your own research before making any trading decisions.
Gold
Resistance at 2050.00 and 2070.00
Supports at 1990.00 and 1900.00
There is a chance that 1990.00 might hold for another attempt for Highs, but overall pattern suggests that Gold is destined to go in a correction phase.
It is more likely that we’ll first see 1900.00 then new high.
For those that trade CFD’s this might be an opportunity to go Short.
USDJPY 4-Hour Chart: Key resistance looms
Looking at this chart USDJPY has been in a 149.53-150.89 range for nearly 2 weeks
With rising red lines, momentum is swinging upwards but faces the key resistance level (recent high) at 150.89
A move through 150.89 would leave little until the major 151.90 level
Expect support on dips as long as 150+ trades
Beware as always of verbal intervention with the major level looming above..
- You must be logged in to reply to this topic.
Forex Forum – Place where you can exchange your views on Forex Trading and Trading in General – Follow Daily developments on every single market around , including Stocks, Indices, Crypto, Metals…..Get tips and help that you need.
Test drive our Amazing Trader – Charting Algo System with built in Risk Management – Click HERE for your Free Trial
Forex Forum Ad Hoc Glossary
What is Risk Management in Trading – Forex Forum
For any trader, managing risk is essential to success. But what exactly is risk management? In this blog post, we’ll explore what risk management is and how it can help you become a successful trader.
We’ll also look at some common mistakes that traders make when it comes to managing their risks. After all, if you’re not managing risk appropriately, you’re just a gambler. So if you’re ready to learn more about risk management, read on!
What is Risk Management in Trading?
Risk management is the process of assessing, controlling, and managing risk within a trading portfolio. This involves defining trading goals and understanding potential losses that could occur as part of the trading process.
It also includes identifying potential risks, such as market volatility or sudden changes in the market, understanding how these risks can affect your profits, and taking steps to limit potential losses.
In general, risk management should be a priority for all traders. By properly managing your risks and using effective strategies, you can minimize potential losses and increase the chances of making successful trades.
Common Mistakes When Managing Risk in Trading
Unfortunately, many traders make mistakes when it comes to managing their risks. Here are some of the most common mistakes that traders make when it comes to risk management:
Not Setting a Trading Plan:
Many traders don’t have a detailed trading plan, which is a key component of risk management. Without a trading plan, traders are more likely to take risks that could have otherwise been avoided. It’s important to establish clear trading goals and a plan for how to reach those goals.
Not Understanding Risk:
Many traders fail to understand the risks associated with certain trades, which can lead to serious losses if they don’t take the time to research and understand the risks involved. It’s important to have a thorough understanding of the markets you’re trading in before taking any risks.
Not Taking Advantage of Stop Losses:
Stop losses are an essential component of risk management, as they help to limit potential losses in the event of a market downturn or sudden changes in the market. However, many traders don’t take advantage of stop losses and end up taking larger risks than necessary.
Over-Trading:
Over-trading is a common mistake made by many traders. This involves taking too many trades, which can lead to losses if the market turns against you. Look, all traders love the price action. It’s exciting to take a position and watch your P/L go up and down. But don’t become addicted to the price action for the sake of just having a position. It’s important to only take trades when the setup is right and avoid over trading.
Not Diversifying Risk:
Diversification is another important part of risk management. By diversifying your trades, you can spread out risk and limit potential losses if the market turns against you.
Why is Risk Management Important in Trading?
Risk management is a critical factor in success when trading in the markets. It involves understanding and controlling what could potentially impact your trades and actively analyzing scenarios that may occur.
Without proper risk management, traders are leaving themselves vulnerable to potential losses which could be catastrophic for their investments.
Good risk management also allows traders to effectively assess opportunities and make better decisions that take into account volatility or leading indicators of future market performance.
Simply put, risk management can provide peace of mind so traders can enjoy the highs of profitable investments while minimizing losses when markets start to dip.
What are Some Common Risk Management Strategies?
Common risk management strategies used by traders include setting stop-loss orders, limiting capital exposure, and diversifying investments to minimize volatility.
Another essential approach for traders is to set predetermined targets for both profits and losses to help stabilize your exposure. To further limit potential losses and maximize gains, traders should always be aware of economic news and other world events that might affect the market.
How to Implement Risk Management in your Trading Plan
Implementing effective risk management into your trading plan is incredibly important for successful and profitable trading. It can help you to control the amount of draws you take in any given trade, and it can also protect against large losses which could potentially wipe out your entire trading account.
A good risk management plan should include determining the amount of capital at risk on each trade, setting predetermined stop-losses to limit downside exposure, and having a strict, disciplined approach towards minimizing losses:
never increasing position size
never risking more than you are comfortable with, and always controlling potential risk-reward ratios.
Taking the time to set up a comprehensive yet flexible risk management plan will put you in a better position when it comes to positive returns in the long run.
Risk management is an important part of trading. It allows you to trade with less stress and more confidence. There are many different risk management strategies, so it is important to find one that fits your trading style.
Proper risk management can help you make money in the long run by preserving your capital and preventing you from making careless mistakes.