As I had posted yesterday, the Dollar strengthening would ease a bit for a while.
And today it did. In fact, today the Dollar Index showed some losses.
I have attached a picture as a proof for my prediction.
Also, my long EUR/USD deal at 1.3149 opened, and is currently in profits. Just waiting for it to gain 50 pips.
Now, coming for the day's signals. They are as follows:
Sell EUR/USD at 1.3251 for a profit of 50
pips.
Buy EUR/USD at 1.3099 for a profit of 50
pips.
Sell Gold at 1436.1 with a stop loss of 1441.1 and gain of 1421.1
Sell Silver at 25.501 with a stop loss of 26.001 and gain of 24.001
Buy Gold at 1384.9 with a stop loss of 1379.9 and gain of 1399.9
Buy Silver at 22.499 with a stop loss of 21.999 and gain of 23.999
To add to the surprise, there is also a video on the same subject, though it
is not ready yet. It takes donkey number of years with my wi-fi connection to
upload a YouTube video.
Nevertheless, I am on with the written part of the tutorial till the mammoth
video gets to the web.
OK, so by now all of you would know that the major indices play a big role
in the analysis of the movement of the markets.
The major ones are the DAX and the U.S. Dollar Index.
I stick to the Dollar Index when it comes to forming my trading plan, as
this is the one which plays a pivotal role in forming the major trends and
moves in the market.
Now, how to go about using it for an advantage in gaining pips in the forex
market.
For the same one needs to follow and study the trend formation in the Index
for the available data to come up with the future predictions.
The entire philosophy lies in understanding the behaviour patterns of the
Index, so as to come with predictions that turn out giving near to accurate
trading signals.
I have developed my own theory in going about the same.
The page will show you the default data for the Index since last 30 days,
though you can view a more customized one by fiddling with the date and the
time frame parameters.
Now at the end of the table you could see the highest, lowest as well as the
average value for the Index in the last 30 days.
If you are a seasoned trader by now, you know what a helpful insight that
could bring to your trading portfolio.
Since, I like to keep things simple, I have enlisted my strategy for the
Index in points below. Do feel free to agree, or disagree with me on the same.
I would love to know your game plan to madness in this regard.
1.I
like to know the last traded value of the Index.
2.Then
I look at the average value of the Index in the default view of the site, which
is precisely 30 days time period.
3.Then
I place the last traded value in between the highest and the lowest values of
the Index in the last 30 days.
4.If
the last traded value is closer to the lowest and below the average, I decide
to go long on the EUR/USD pair.
5.I
simply go short if the vice-versa is happening.
Yeah, it is that simple. But mind you, you still need a strong trading plan
to combine with this trading strategy of the Dollar Index.
As you see, you do get to know whether to go short or long on the pair by
analyzing the index, but you still need to know from where exactly you need to
take a call of going long or short. That is when your own devised trading plan
will come in to the picture.
Moreover, there is one trick that I would love to share. It will serve as a
double check to know that the trend formation that you have analyzed by
studying the Index is indeed fool proof.
Though this trick in itself may not produce exemplary results all the time,
but it definitely gives a second confirming opinion when followed in
conjunction with the 5 point strategy that I explained above.
Hope you understood what I was trying to explain in this post; but in case
you have not, then please feel free to get in touch with me or order any of my
Tutorial which I serve as a gig on Fiverr.
Till then enjoy your weekend and have a great life ahead.
Today it is the first trading day of the last week of the month of March. Both my open long entries are on a profit, though the individual profits of both have diminished a bit.
There is almost a 100 pip loss from the last gain that I witnessed in my account in the morning.
I was a little late in noticing a little downtrend but nevertheless I noticed it and therefore, I opened a short entry for the time being.
Another factor leading to the opening of the trade was the Dollar Index.
It has been showing a continuous downtrend for the last 4 consecutive trading days, hence there is a room for slight correction, hence the following short order as follows:
Sell EUR/USD at 1.3001 for 50 pips, with a stop loss of 150 pips
Kindly note that in this order the profit and the loss are in a reverse role. (loss is 3 x the profit)
Another entry order got triggered, and the first entry order closed with the stop loss, making the loss count to 1 as of now. Now awaiting for the other 2 open orders to close, hopefully with the Take Profits placed :)
Going by the long-term charts, there seems the end of the bullish trend. The Dollar Index is also showing an upward trend towards its average of the month i.e. 79.97, currently it is at 79.3, which is just slightly up the lowest of the month at 79.21.
If not today, then tomorrow the bearish trend is going to begin, and I am all for it.
In case it does not, I suggest going in for another entry order as follows:
Sell at 1.3608 for 300 pips, with a stop loss of 100
Sell at 1.3658 for 300 pips, with a stop loss of 100
P.S: Currently no predictions for the commodities, awaiting the U.S. data that will release tomorrow.
