The British Pound, here shown in GBPAUD, is still a short overall. The weekly trend has been continously down and will most likely continue its market direction. Another fractal down had been hit two weeks ago, even though price is trading sideways currently, there is no major support price is sitting on that could lead to a stronger reversal ending the downtrend. Patience matters here, still, until further losses for GBP will show.
This week I’m going into a little bit more details of the current trends running in the mentioned markets, especially Gold. If you are interested in long-term trendfollowing I’m presenting a specific approach to follow trends using the fractal* indicator and the balance zone**.
*Fractals: Level where the market changes its mind to change direction, temporarily or for a longer period of time.
**Balance Zone: “Where price wants to be” without incoming new information.
In Trendtrading you always want to make sure to stay in the trend long enough, just not too long so that you give back too much of your profits.
If you misplace your stop you might end up losing more than you can handle emotionally and financially. We all have different personalities and a different psychological mindset that endure different types of pain, longevity and size of drawdown. Placing your stops according to your best liking is therefore a very important factor. If you misjudge how much you can handle, you might end up violating your trading rules. This whole topic is worth backtesting, with appropriate risk management techniques.
This 20-minute video provides an insight into shorter-term and longer-term stops to stay with a trend. There is no right way of exiting a trend, there is only your own way to do it.
This time the recap for the week is a little bit longer since I am commenting on the background of the current trend stages of the markets that I have been talking about: i.e Gold/Silver, EURUSD, Indices and GBP pairs.
US Indices barely could close out stronger for the month of July, why keep people selling? With a strong week in Gold and Silver our uptrend scenario also holds up, I am also talking about the USDollar, GBPAUD and EURUSD.
This week we’ll merely do a chart update on the important markets yielding trends discussed during the last couple of videos. In focus are the EURUSD which did get a little push on Friday to the downside, the current situation in the Dow seems worthy to look at since so many people are still selling, calling the top. And the starting trend in the USDollar Index is part of the update. Continue reading “[Weekly Recap|29/16] Trends breathing in XAU, XAG + USDollar sees successful upside B/O, EURUSD gets little Push”
Charts for Reference at Tradingview.
Indices have retraced almost all of the Brexit losses. The FTSE was up the most this week! However, the British Pound is not doing so well. Also looking at strong moves in Gold, Silver and a possibly failed breakout in AAPL.
Reviewing last week’s breakouts and new developments possibly triggered by the major referendum event. Markets covered include Gold, Eurusd, Dow, Gbpusd, AAPL. Enjoy. Tradingview has all the Charts.
Interesting new developments for the longer-term oriented trader appear in the FX Majors, it seems EURUSD, AUDUSD and GBPUSD are not only setting up to be Shorts, the latter has already hit the breakout signal. The Indices and Gold are also worth a look as esp. the european ones are just about to hit their Short breakouts, too.
Holistic Trend Analysis simply implies to start working on the highest timeframe and moving further down to your trading timeframe. This way you can easily determine the direction you should be trading. Have a look at the markets of interest this week.
Refer to Tradingview for Charts.
Why Trend Trading is a decent concept to manage your money/savings even if you’re not a trading/investing nerd. Everybody needs a plan, the market doesn’t just hand out profits for free. Not even if you’re a buy and holder willing to wait for 20 years.
Nick has been trading since 1985 and is a professional trader, analyst and author. He worked on the trading floor of the Sydney Futures Exchange, worked for international banks in London, Sydney and Singapore. He regularly consults with financial planners and accountants and is a keynote speaker for ATAA, AIA, ASA, Traders Expo and SKY Business. He resides in Noosa with his wife Trish and 3 teenage children.
Quick update on Gold and Dow Jones Index, then Emotion-Talk starts from 6:00 min and covers the concept of “I don’t know”, being humble and the creative process trading really is. Also talking a little bit about all the contradictory info you get when researching trading online and listening to various podcasts (Covel, BetterSystemTrader, ChatwithTraders).
Other Sources mentioned:
This GBPCAD example is the continuation of the How to trade using Fractals video. The indicated divergence and combination of minor and major corrections in between lead to a sharp drop in this market. Two fractal breakouts got you short, now the downmove seems to come to an end, during week 18 of this trading year GBPCAD closes above the trend ending moving average, making trendfollowers pull their stop tight.
While the european Indices saw quite a turnaround this week, the Dow Jones Index retraced slightly from a weekly perspective. Even though a long breakout had been hit before, the current retrace does not negate that breakout and should rather be considered an internal correction. New all time highs are still not far away and the upwards directed momentum overall supports a continous upmove scenario. This of course includes pullbacks on the way, no one knows how long they might last, so patience is important again before this market turns up again.