Million in forex

The most amazing move in the world markets for the week was seen on the Indian stock exchange called SENSEX .The index rose 17% in a single day!+ 2100 points alone in a day?the upper circuit was put in 2 minutes of market open .The participants usually were large funds, banks and foreign investors.Retail individuals did not get time to participate in it.This move was seen following astonishing election results where every prediction that the coalition is likely failed and Congress led UPA party won the elections by majority.

Are we in the bull road on all the pairs that have shed there weight to half?With interesting results and market reactions over last 5 weeks where evry bad or good news pushes market higher and higher is the beginning of the bull market again?Has the bears exhausted after shedding the mass of the heavy currencies adn stock markets to almost lower than half?Or is it just the correction in the big bearish run?Only time will tell…

Gbp/jpy is must watch out at te momentIt is at the lower trendline of the bullish channel.The break of it will bring lot many sellers trying to take the gbp/jpy to 135 and if that broken to 129.If we bounce of this level at lower trendline of bullish channel we may go higher to test 153 to 155 level which is upper trendline level . This is going to be very interesting!So watch out Gbp/jpy now.

As posted yesterday , the usd/cad trade  had breakout from the triangle on the chart. We are running at + 150 pips on that trade . Its ideal to lock in half profits and let other half run with stop loss moved to break-even, this will make it a free trade . Forex is a great as   after you lock in the initial move with stop loss you can enjoy the cash, and check back your account once in a while you get a chance. Once I was testing on my mini account . I  left a trade running and forgot to check in for 2 weeks . Then after 2 weeks , I checked  back in the account and found that trade was running at + 600 pips . This is advantage of moving your stop loss to breakeven and letting the trade run freely.So hope you had happy pips!First test on the demo before you go live..

Pull out your usd/cad chart .

Go to weekly chart .

You can now draw two trendlines one that is horizontal joining the highs of last 6 weeks and draw other trendline joining the lows of the last 6 weeks.

Now you can see an ascending triangle there  .

What do you see now?

We are having a break of it from a lower trendline  which gives us a great trading opportunity .

We must wait for a pull back to daily trendline to enter in this trade .Once a pullback confirms that price has nicely broken and retested the trendline then we hold for this trade till we hit first target of 1.1900

This is great trade with small stop loss and large take profit target!

Happy trading..

Many of the stock traders use COT for trading.

So do use  COT for forex too?

Ok. Some of you may ask “what is COT?”

COT stands for Commitment of Traders .

This is released every weekend .

As against the stock market the forex market being decentralised it is really difficult to know the actual value but the values there are shown by the bigger traders bot commercial and small non commercial traders at the bigger exchanges . For example i see COT report of CME i.e. Chicago mercentile exchange.

Remember it  ? Have you heard of it before?

Do you know Turtles or rea book on turtle trading . If your answer is yes then you would remeber the CME as mentioned in the book. CME i one of the biggest exchange in USA.

So after reading COT you get an idea over weekend as to which pairs are gross long and which short looking at number of longs and shorts both by commercial and noncommercial traders.But since as mentioned before forex is decentralised the positions may differ over different exchanges.

So you can look at COt to get just a part of idea on understanding the longs and shorts by major traders .

Happy trading!

Most of the times many major issues take place over weekend which play a major role in coming week in all the world markets including stocks and forex.

So whats going on this weekend all over the world?

Last week we say all indices rallying to new highs from asian ones to american ones.

April is month of declaration of Q 1 i.e. first quarter earnings. Anything is possible this month.

Well in Indian markets there has been a great rally over last month . but there are some news of job cuts from Infosys coming out over the weekend. Also some companies earnings are on the side of showing there lowest ever which may affect the markets on a big way.  There is large fiscal deposit in Usa and many other countries due to big or should i say biggest stimulus packages given out. This are looking for a reentry of bears . Just have to wait for the price action to confirm. So wish you a great trading next week!

There is always a question when people fail to differentiate between bear and bull market .

So how to determine the trend?

There are various procedures or methods traders use to determine trend.

Some use ema’s like 365 , 200 to determine the trend and they are useful .

Above 365 ema on daily shows us long term trend . The definite guide to confirm this is look at the daily , weekly  and monthly chart if the price is showing the move from upper left hand side of chart to lower right hand side we are in  bear market and if the price is moving from left lower side of chart to right upper end of the chart we confirm that the market is in bullish trend.

Then on lower charts trade along the trend  and you would be making money .

This is easy way to trade along trend and make money in forex.

Year 2008 : The easter volatility shows the euro crashing 200 pips .This was a year back when I never expected this fall in euro with the big boys taking a break . So I was really thinking what will we see in 2009 ? To my astonishment the euro had similar impact this year at the same time and we saw the bears in euro taking over the reign .2009 Easter: Euro repeats its history with the bears ruling in .I have to see the previous years now to understand   whether there is  any specific  reason for this move? Or its just coincidental finding?Anyways I could remeber  last year easter time as I was in short trade then and it yielded amazing pips. So was I looking what would be happening this year sitting at the sidelines . Looking at the things as of now it has fallen as the 2008 showed us.I have noticed some specific occasions on year where the history almost everytimes repeats .Good for trading…This shows us some easy pips!

U. S. unemployment claims are out today .

And to everyone’s surprise they have come better than expected after such a long time .

This has helped DOW gain today again though the daily bearish channel has not been broken yet .

GBP official rate statement also came out today and as expected the rates have remained unchanged .

Now from tomorrow being Easter holidays beginning the trading till monday US session is likely to stay in a ranging mode with big trader banks taking break .

Eur has weakened all over the place against almost all currencies  continuing its 3 days bearish journey putting itself at the PPZ now .If this holds we will see the upmove to test the 3 day back tested high on euro .