News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.15% 🇳🇿NZD: -0.15% 🇯🇵JPY: -0.24% 🇬🇧GBP: -0.33% 🇨🇦CAD: -0.35% 🇦🇺AUD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/x0PR3hSLqt
  • #CrudeOil plunging over 2.3% as Libya lifts force majeure on oil exports from El Feel oilfield A push back to support at the September low (36.15) looks likely if price can overcome the psychologically imposing $38 mark #OOTT https://t.co/gMxgs2qPTR
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.57% Wall Street: -0.90% US 500: -0.91% France 40: -0.98% Germany 30: -1.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MtIrqoITpz
  • #Euro Outlook: Covid-19 Second Wave to Weigh on $EURJPY, $EURUSD - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/10/26/Euro-Outlook-Covid-19-Second-Wave-to-Weigh-on-EURJPY-EURUSD-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/zLU4HOLcHE
  • Commodity currencies underperformed after House Speaker Nancy Pelosi and White House Chief of Staff Mark Meadows accused each other of "moving the goalposts" on stimulus legislation on Sunday - Bloomberg AUD/USD -0.35% CAD/USD - 0.29% NOK/USD - 0.45%
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/PkokcJCGxp
  • Some massive surges in Covid-19 cases worldwide: The US (+78,702 on Oct 24) France (+ 52,013 on Oct 25) Spain (+ 19,851 on Oct 23) UK (+ 19,790 on Oct 25) Germany (+ 11,176 on Oct 24) A virus resurgence dampened sentiment, weighing on equities, oil and growth-linked currencies.
  • Market Update Risk-off tilt persisting throughout APAC trade $USD gaining against all its major counterparts, with the cyclically-sensitive $AUD and $CAD the biggest underperformers #SP500 continuing to grind lower alongside #crudeoil, #gold and Australia's #ASX200
  • 🇯🇵 Leading Economic Index Final (AUG) Actual: 88.4 Expected: 88.8 Previous: 86.7 https://www.dailyfx.com/economic-calendar#2020-10-26
  • - British Pound braces for #Brexit as political volatility rattles GBP crosses - Australian Dollar traders closely eyeing Chinese Plenum and 5-year plan - #Euro, US Dollar price action may pick up on upcoming WTO tariff ruling https://www.dailyfx.com/forex/fundamental/article/special_report/2020/10/26/GBP-AUD-USD-Volatility-to-Swell-on-Cross-Continental-Geopolitical-Risks.html
Learn Forex: How to Trade Market Swings

Learn Forex: How to Trade Market Swings

2012-11-14 19:00:00
Walker England, Trading Instructor,
Share:

In many instances on a short term basis, the Forex market will move against a primary trend. These instances can provide many opportunities to either sell rallies or buy market dips, when momentum swings back into the direction of the primary trend. Below we can see an example of the GBPUSD 4Hour chart trending lower over the past 6 weeks. Along the way there have been many opportunities to find selling opportunities as the market provides a short term rally. So how can we better identify these chances to trade?

LEARN_TRADING_How_to_Trade_Market_Swings_body_Picture_3.png, Learn Forex: How to Trade Market Swings

(Created using FXCM’s Marketscope 2.0 charts)

To time our entry into a trade, an oscillator can be used. When a market is in a downtrend, traders can wait for an indicator such as CCI to become overbought. Overbought describes a scenario where the market may be overvalued causing an indicator to reach its upper bounds. CCI is very similar to other oscillators, such as RSI, in that it depicts overbought and oversold levels for traders. Pictured below, we can see that above the +100 value is considered overbought while below the -100 value is considered oversold.The key is to time our entry when momentum returns to the downside. This means waiting from the indicator to turn back below +100 and begin moving lower. Let’s view some previous examples using our established GBPUSD downtrend.

LEARN_TRADING_How_to_Trade_Market_Swings_body_Picture_2.png, Learn Forex: How to Trade Market Swings

Below we again can see our GBPUSD 4HR chart previously mentioned, but this time we have included the CCI indicator. You will notice that there have been a total of four opportunities to sell the pair as momentum returned lower. The key is to time your entry as CCI moves back below +100 indicating the conclusion of our short term rally with momentum returning to the markets longer standing trend. As with any strategy, trading market swings requires limiting our risk in case our trend ends. One way to manage risk is to place a stoporder over the previous swing high. This way in the event that our downtrend is concluded we can exit any positions to sell at their first convenience.

LEARN_TRADING_How_to_Trade_Market_Swings_body_Picture_1.png, Learn Forex: How to Trade Market Swings

(Created using FXCM’s Marketscope 2.0 charts)

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com.

Want to learn more about trading CCI? Take our free CCI training course and learn new ways to trade with this versatile oscillator. Register HERE to start learning your next CCI strategy!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES