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. See our updated Privacy Policy here.

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
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
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
USD/JPY
Bullish
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
More View more
Real Time News
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/8kBulRFd6l
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6u52PuzIaY
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/rHDy0XNZjQ
  • (Weekly Outlook) Australian Dollar Outlook: AUD/USD Divergence With Wall Street Risks Continuing #AUD $AUDUSD #Fed #Stocks https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/06/12/Australian-Dollar-Outlook-AUDUSD-Divergence-With-Wall-Street-Risks-Continuing.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ryxG0fHmzd
  • The US Dollar steadied against most ASEAN currencies this past week. Key support levels remain in play looking at USD/SGD, USD/THB and USD/PHP. USD/IDR may rise with a new trendline. Get your market update from @ddubrovskyFX here:https://t.co/bpr5ZlKIcE https://t.co/0pskmzXZHi
  • EUR/USD has been looking toppy since late May as bearish technical signals played out. But, rising Euro short bets from retail traders hint that the currency may hold its footing. Get your market update from @ddubrovskyFX here:https://t.co/fAZijmQVqh https://t.co/pXICvFE007
3 Tools to Help You Spot a Reentry point After a Strong FX Move

3 Tools to Help You Spot a Reentry point After a Strong FX Move

Tyler Yell, CMT, Currency Strategist

Talking Points

  • Spotting An Outsize Move – Breaking Resistance
  • Meeting The Tools – Fib Resistance, Ichimoku, Pivots
  • What’s Next If Focal Prices Are Hit – Price Action & Reaction

After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It was never my thinking that made the big money for me. It was always my sitting. Go that? My sitting tight! ... I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine--that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.

-Jesse Livermore

Acting in haste hurts. From a trading perspective, trading in haste or hurry is often known as chasing price. Chasing price often shows itself when you’ve finally talked yourself into a trade only to see it react against your entry shortly after your entry.

Learn Forex: Big Moves Are Exciting But Approach with Caution

Where_To_Reenter_After_a_Strong_Move_body_Picture_1.png, 3 Tools to Help You Spot a Reentry point After a Strong FX Move

Presented by FXCM’s Marketscope Charts

Spotting an Outsize Move

An outsized move can often be seen without any indicators or chart tools. In simple terms, an outsized move like the one seen recently in GBPAUD or GBPJPY will likely take out multiple levels of resistance. When resistance or a prior price ceiling is broken, you have clear indication that the current group of buyers are more confident or holding onto more conviction than they have had in the past when they backed off the move and a correction began.

In addition to multiple levels of resistance breaking, you’ll often notice a series of very bullish candles where price consistently closes near the session high over and over again. In an uptrend, this type of moves shows you that buyers are holding this and have little conviction to let off the pressure against the sellers.

Of course, spotting the outsized move is the easy part. The difficulty comes in having the emotional strength to fight off the fear of missing out and waiting for a decent and appropriate level of entry. The ability to wait and identify these points is a key mark of a mature or professional trader.

If you don’t feel like you have the tools to trade like a professional, we’ve created a FREE certificate course here to help you understand the key concepts we believe a professional trader should know.

Meet the Tools – Fibonacci Retracements, Ichimoku, and Pivots

Fibonacci is a sequence of numbers found throughout nature that applies to everything from the atomic structure & DNA molecules to formation of a cyclone or hurricane’s eye that gives the formation its strength. The value often found in the Fibonacci sequence to traders is the ratio between these numbers which show up in and outside of the markets. More often than most believe, a move will correct down to a Fibonacci percentage such at 38.2%, 50% or 61.8% of the prior move.

Learn Forex: GBPAUD recently retraced down to Fib Levels before Bouncing

Where_To_Reenter_After_a_Strong_Move_body_Picture_3.png, 3 Tools to Help You Spot a Reentry point After a Strong FX Move

Presented by FXCM’s Marketscope Charts

Another key tool that many traders are getting more accustomed to is Ichimoku. Ichimoku is a technical or chart based trend trading system that illustrates support and resistance values in a simplified form and is considered a complement to candlestick trading. Looking to Ichimoku Cloud as a method to identify trend entries is still in use today and can be used in both bullish (rising) and bearish (falling) markets. This dynamic indicator can be used on the time frame of your preference and was voted Best Technical Indicator 9 Consecutive Years in Tokyo’s Nikkei newspaper.

Learn Forex: Ichimoku’s Cloud Shows a Nice Entry on GBPAUD Developing

Where_To_Reenter_After_a_Strong_Move_body_Picture_4.png, 3 Tools to Help You Spot a Reentry point After a Strong FX Move

Presented by FXCM’s Marketscope Charts

As you are likely seeing, it is important to keep an eye out for a confluence of signals showing a correction or retracement may have ended and that you may be approaching an opportunity for reentry. Another tool that can help you see dynamic corrections within an unfolding trend are pivot points. Pivot points are based on recent price action and can help you build a directional bias when price corrects down to the pivot level before resuming the overall trend.

Learn Forex: This Fib Window of 1.7600 -1.7330 Will Be a Focal Point for Reentry

Where_To_Reenter_After_a_Strong_Move_body_Picture_5.png, 3 Tools to Help You Spot a Reentry point After a Strong FX Move

Presented by FXCM’s Marketscope Charts

If you’re unaware of the key levels that are included in Pivot Points, they are the High, Low & Close. Those three critical prices are divided by 3 and that price gives you the pivot for a specific time frame. Therefore, a daily pivot for today would take yesterday’s high, low & close divided by 3 and similarly for weekly pivots.

What’s Next If Focal Prices Are Hit? Price Action & Reaction

On the chart above, we’ve located a few technical indicators that provide potential support on GBPAUD between 1.7330 & 1.7600. Beyond the indicators, you’ll notice that the prior price action high aligns with the current 50% Fibonacci retracement at 1.7415. Also, the August high of 1.7483 is near the current 38.2% retracement, so there could be key moves off those levels. Therefore, this range presents prices where you can look for price action signals like a bullish engulfing pattern that shows the trend could begin its resumption.

Big Picture of GBPAUD Potential: Bull Flag Opportunity

Where_To_Reenter_After_a_Strong_Move_body_Picture_7.png, 3 Tools to Help You Spot a Reentry point After a Strong FX Move

Presented by FXCM’s Marketscope Charts

Happy Trading!

---Written by Tyler Yell, Trading Instructor

To contact Tyler, tyell@dailyfx.com

To be added to Tyler’s e-mail distribution list, please click here.

As a dedicated FX Trader, would you like daily access to the following?

  • Faster access to fundamental releases that is likely to move the markets
  • Feedback on market movements in real time
  • Real time Speculative Sentiment Index Readings

If so, our Real-Time DailyFX on Demandis a fee-based service that gives you access to our professional trading staff from 6am – 2pm ET Every trading day so you can get clear feedback on your trade setups and ideas.

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

DISCLOSURES