Monday, November 29, 2010

How to Trade Forex with Gaps

It is known that gaps occur in the equity markets, but it also occurs in the Forex markets. And gaps, currency trading (Forex gaps) are defined as areas on the trading scheme (graph) where the currency is moving strongly towards the increase or decrease with little or no trading of any trading through them.
Trading on the outline of the Japanese Candles is the gap distance between the large candles in a row. In other words, the gap occurs when the pair jump from the price column to another with a significant difference between the value of the price columns.
More possible causes for the occurrence of gaps is the lack of liquidity, lack of quantity and lack of market participants. In the forex market in particular, usually what happens this type of gaps through the end of the week, and can provide very good opportunities for profitable trading operations, if traders are able to translate the creators of these gaps properly, and then use the information learned from them.
Four types of gaps FX:
Gaps occur as a result of the events of fundamental or technical. For example, a key event that could affect the forex market by forcing a particular pair of currencies at the opening of a very high after the end of the week. Basically, there are four types of gaps are:
Breakaway gaps: patterns occur at the end of the price, and indicate a significant decline or new directions.
Debilitating gaps: occurs near the end of the price patterns, and produces a result of the price a final attempt to reach the highest height or less to decrease.
Gaps in public (common): It is possible to occur at any time, and are not linked to any patterns for the price. These gaps are filled and covered very quickly, meaning that the price in the coming days (a few days to a few weeks) will cover this gap.
Continuity gaps (continuing): occurs in the middle of the pattern of price, and usually occur because of market sentiment restore confidence in the fundamental direction for the path of the price.
"Filled with the gap"
The term "filled with the gap" is used when the price goes back to the value that it was in before the gap. And this happens more frequently due to strong trading enthusiasm could have been produced stable in price may need to be corrected later.
The control of the main events during the weekend could be a profitable business, especially if you are able to monitor any major discrepancies from the events of the previous week.
If I can monitor these contradictions, then try to determine the reasons for these differences. If the Forex market started in the following week and expressed the perceived gap, you'll be in a location convenient to engage in trading either support structure or fill the gap depending on the results of the analysis you've done.

Analysis of gold daily

Dear colleagues,
I will provide analysis of gold daily, beginning on Thursday, the first of next April.
This site exclusively for the emergence of Forex Premier.
I hope you honor your interest.

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Silver




If we look at the picture above, you will see that all he did the price of silver yesterday was the contact with the key support level of the upward trend also shows photo, also did not see any closure of four hours under the 24.00 level and these facts make us believe that the upward trend is still likely. But more important for the stability and the closure of four hours over the 24.95 to cancel the effect of saturation in the procurement stochastic and his attempt to turn negative.
The trading range for today is among the key support level of 23.95 resistance 25.55
The short term trend upward toward the top and at the level of the target firm-level 28.15 16.20



Support 24.85 24.70 24.66 24.50 24.45

 
Resistance 25.15 25.25 25.44 25.55 25.70

Recommendations Based on the above chart we believe that the purchase of silver, about 24.70 and 25.55 when the profit and stop loss to close four hours under 24.00 may be appropriate.

Gold

Acute trades that took place yesterday were not a reason to see confirmation of a consensual scenarios over the other and that was clarified in the report and the weekly report yesterday. If we look at a classic price move, we will see that it is still rising above the main support shown in the picture, as well as the price settles above the moving averages of 20 and 50, which may likely upward trend during the trading day, provided the stability of trading above the level of $ 1330.00 an ounce.
The trading range for today is among the key support and resistance level at 1320.00 1395.00
The short term trend upward towards the top targets at the level of steady levels of 1400.00 1120.00



Support 1350.00 1348.00 1345.00 1339.00 1330.00

 
Resistance 1358.00 1365.00 1372.00 1385.00 1388.00

Recommendations Based on the above chart we believe that buying gold on 1350.00 and 1385.00 when profit and stop loss to close four hours under 1330.00 may be appropriate.






Oil Report

The report of the week 29 \ 11 to 3 \ 12/2010 Futures U.S. light, sweet oil








As noted in previous reports, we are now in the latest wave of internal within the patch shown in the picture Subcommittee. Therefore, we believe that the downward trend will soon begin this week after the completion of the current wave of rising completely, and then enter into a downward wave after wave C B. These expectations require constant daily close below 86.80.
The trading range for today is among the key support and resistance level of 77.75 87.75The short term trend is expected to side firmly trading price between the level of 90.50 and 70.00 to close Weekly

Support 83.80 83.10 82.80 82.30 81.80Resistance 84.60 85.00 85.65 86.15 86.80

Recommendations Based on the above chart we believe that the sale of oil and about 85.00 target 80.90 stop loss and close 86.80 on above, might be appropriate this week

Euro against the pound sterling




Succeeded the royal couple to edit stochastic but we can see how the SMA 50 forced him to decline sharply. Thus, the negative pressure to the head and shoulders model proposed may continue this week with no contact after goals. Break the 0.8420 level will bring a wave of strong sales levels of about 0.8325, while the stochastic intersection negatively supports our expectations of art.
The trading range for this week may be between the level of support and resistance level at 0.8325 0.8630
The general trend is towards short-term bearish below 0.7780 with targets at 0.8965 levels steadily


Support 0.8445 0.8390 0.8370 0.8325 0.8295Resistance 0.8500 0.8550 0.8585 0.8605 0.8630

Recommendations Based on the above chart we believe that selling the pair about 0.8500 and target 0.8335 and stop loss above 0.8605 may be appropriate

Euro against the Japanese yen



Weekly closing below the levels of central support - the current resistance - around 111.60 which is the main reason why we say that the numbering waveform is still effective, as the third wave of internal wave B the largest currently under formation. Consequently, we see opportunities to visit the existing levels of support between 109.50 and 109.05. RSI 14 are not still has to achieve the objectives of falling after a break of support level upward trend. From here, we expect a potential downward trend for the week.
The trading range for this week may be between the level of support and resistance level at 108.45 114.70

 
Falling short term trend down and goal at the 97.90 level steadily 132.50


Support 110.50 110.00 109.50 109.05 108.45Resistance 111.60 112.10 112.80 113.15 113.60

Recommendations Based on the above chart we believe that selling the pair around 111.60 and 109.05 target and stop loss above 113.65 would be appropriate

Pound sterling against the Japanese yen





Audited the consideration of the weekly chart, we find that the wave of momentum has taken over the pair in the medium term. We can see that the four waves of this wave driving has been completed in advance and therefore the husband loses torque rising gradually as the fifth wave may be in shape. In addition, the level of channel resistance, which began falling levels of 163.00 is still a strong technical obstacle adds more power to the numbering of the proposed waveform. Moving averages are 50 and 100 attempts to push a negative impact on the rise in the indices, while stochastic and relative strength tend down. Briefly say, that the downward trend is unlikely that we are witnessing this week, especially if the break level of 130.50
The trading range for this week may be between the level of support and resistance level at 126.70 135.50
Falling short term trend down and goal at the firm level 150.75 118.80


Support 130.50 129.25 128.40 127.60 126.70Resistance 132.50 133.60 134.20 134.80 135.50
 
Recommendations Based on the above chart we believe that selling the pair around 131.60 and 127.70 target and stop loss above 134.30 would be appropriate

As noted in previous reports, we are now in the latest wave of internal within the patch shown in the picture

 Subcommittee. Therefore, we believe that the downward trend will soon begin this week after the completion of the current wave of rising completely, and then enter into a downward wave after wave C B. These expectations require constant daily close below 86.80.
The trading range for today is among the key support and resistance level of 77.75 87.75The short term trend is expected to side firmly trading price between the level of 90.50 and 70.00 to close Weekly

Support 83.80 83.10 82.80 82.30 81.80Resistance 84.60 85.00 85.65 86.15 86.80

Recommendations Based on the above chart we believe that the sale of oil and about 85.00 target 80.90 stop 

loss and close 86.80 on above, might be appropriate this week