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  2. Hi @garethw, We do not offer the a Daily Loss limit on our accounts. Nevertheless, we do have Margin call policy that is applying on leverage accounts . Margin call is the term for when the equity on your account – the total capital you have deposited plus or minus any profits or losses – drops below your margin requirement. You can find both figures listed at the top of the IG platform. You will get notified when your equity drop beneath 99% and 75% of your margin requirements. At 50% we will automatically close your positions. Please keep in mind that it is your responsibility to keep an eye on it, as with high volatility your equity can drop below 50% in a short period of time. Please find more details about margin call on this link here. All the best - Arvin
  3. Yesterday
  4. Hi @kevm, On the dealing ticket in a non-leveraged account ( Share trading- ISA) you will see order type: From there you have different options with a description. I hope that it helps All the best - Arvin
  5. Given 3 of the top 5 largest US stocks reported at close some volatility is a given no doubt
  6. Hi @Gold-In, Please call 00971 (0) 4 559 2108 for the Dubai office in Arabic. https://www.ig.com/ar-ae/welcome-page Thank you - Arvin
  7. Hi, I have Googled and searched the forums however unable to find an answer for this. Am I able to set a Daily Loss Limit for myself? So once the limit is hit, I am blocked from placing any more trades until the following day. This seems like a basic request that a lot of brokers offer. thanks Gareth
  8. Tencent lost over 16% of its market cap this week, after Chinese authorities issued new directives and fines to its music division. Source: Bloomberg Shares Tencent Stock China Regulation Big Tech Tencent Holdings Ltd (HKG: 0700) shares slid a further 9% on Tuesday (27 July 2021) The internet giant’s stocks plunged 16.5% in just two sessions, amidst the Chinese government’s widening crackdown on the private sector The company was fined 500,000 yuan and ordered to dissolve all existing exclusive music deals within 30 days In terms of stock outlook, analysts see a 57% upside potential in the next 12 months Looking to trade Tencent shares? Open an account with us today to get started. Tencent stock price: why is it down? Tencent shares have plummeted over 16%, since the Chinese government ordered the company to cease all exclusive music streaming rights and licensing deals with record labels globally. On Saturday (24 July 2021), the Chinese technology giant was also fined 500,000 yuan (US$77,000) by authorities, following an official investigation which found that the company has engaged in monopolistic practices that gave it an unfair advantage over its competitors. The State Administration of Market Regulation (SAMR) said Tencent’s acquisition of Chinese Music Corporation in 2016 gave the firm access to over 80% of all music tracks in the music market. The deal, which helped to form Tencent Music Entertainment in the process, was also discovered to have flouted regulations due to a lack of reporting. The anti-competition agency also told Tencent that it must stop manipulating music copyright holders for exclusive rights such as by offering higher payments moving forward, and that it must dissolve all existing deals within 30 days. The company and its affiliates, however, can continue their exclusive deals with independent artists, which expire after three years. Tencent said in a statement that it ‘fully’ accepted the decision, and would ‘strictly follow the regulatory requirements’ and ‘fulfill our social responsibilities and contribute to healthy competition in the market’. How do analysts view the stock? Two weeks ago, it was reported that Tencent and fellow tech giant Alibaba Group were considering making their services available on each other’s platforms. IG market strategist Yeap Jun Rong then said that the potential tie-up implied that the landscape for China tech companies ‘may have shifted’. ‘Near-term, it may ease some concerns by showing that these big tech companies are taking steps to adhere to regulations, softening some regulatory risks from authorities,’ he said. ‘On the other hand, there may be some uncertainty on whether authorities will be satisfied with just this move, or whether there may still be more to come. There will also be some uncertainty revolving around the impact to growth potential by opening up to competition.’ Despite this air of ambiguity, Yeap was optimistic about China’s big tech stocks, adding that as more countries start to gain control over big tech firms, the playing field may ultimately be levelled for retail investors in the long run. Across the board, Tencent shares have a consensus rating of ‘buy’ and a price target of HK$699, according to the latest analyst data published by MarketBeat. The price target represents a potential 56.7% upside from the stock’s closing price of HK$446 on Tuesday. Feeling bullish about Tencent? Take a position on the stock today. Trade over 16,000 international shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading shares with us, or open an account to get started today. *Based on revenue excluding FX (published financial statements, June 2020) Kelvin Ong | Financial writer, Singapore 27 July 2021
  9. NASDAQ 100, APPLE, MICROSOFT, ALPHABET, TECH EARNINGS, FEDERAL RESERVE - TALKING POINTS Apple, Microsoft, Alphabet all post blowout earnings reports after the closing bell Federal Reserve meeting slated for Wednesday, eyes on liftoff and taper talk China crackdown on tech continues, Hang Seng Index declines by over 4% Major US equity benchmarks declined on Tuesday as market participants prepared for a blockbuster slate of tech earnings after the closing bell. US indices posted their first declines in 5 sessions, all coming down from record highs achieved during Monday’s session. Major tech names posted blowout quarterly earnings after the bell, highlighted by Apple and Alphabet’s standout results. Risk-off sentiment in the US echoed further losses sustained during the APAC session, as Chinese tech stocks continued to stumble following a crackdown from Beijing. The Hang Seng Index declined by over 4%, taking the losses for the index to 9.56% in just the last 3 trading sessions. TECH EARNINGS SUMMARY Apple Q3 Results Revenues: $81.43 B vs. $73.30 B est. EPS: $1.30 vs. $1.01 est. Microsoft Q4 Results Revenues: $46.20 B vs. $44.26 B est. EPS: $2.17 vs. $1.92 est. Alphabet (Google) Q2 Results Revenues: $61.88 B vs. $56.23 B est. EPS: $27.26 vs. $19.35 est. NASDAQ 100 DAILY CHART Chart provided by TradingView The Nasdaq 100 Index has retreated from recent all-time highs despite the expectation for a strong earnings period for the index’s largest constituents. Prior to Tuesday’s decline, the relative strength index (RSI) for the index was at 71.26, indicating that overbought conditions were present. Despite falling to 14,800 during Tuesday’s session, the Nasdaq 100 Index rebounded into the close ahead of the highly anticipated earnings reports. With the largest tech firms all posting strong results, a retest of 15,000 and all-time highs may be in store. However market participants should proceed with caution given the magnitude of Wednesday’s FOMC meeting. Near-term direction may be determined by comments from Fed Chair Jerome Powell, not the fundamentals of underlying companies in the index. This earnings period has been extremely strong across the board, with 88% of S&P 500 constituents reporting a positive EPS surprise according to FactSet data. Should this trend continue, this would be the highest percentage since the metric began being tracked in 2008. Earnings may take a backseat on Wednesday as market participants turn their attention to the Federal Reserve’s interest rate decision. Fed Chair Jerome Powell will be pressed on the state of asset purchases, and whether the Federal Reserve Board of Governors has established a timeline for tapering. Market participants may also follow closely for comments on the “transitory” nature of inflation, along with the state of the Delta COVID variant. Prior to Wednesday’s meeting, the US 10Y Treasury yield declined to 1.24%. US 10 YEAR TREASURY YIELD DAILY CHART Chart provided by TradingView Brendan Fagan, Intern, Daily FX To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. DISCLOSURES
  10. I'm wondering if there is an equivalent of a stop in the IG ISA or share dealing platform. Obviously there is in the spread betting but I can't see it in the ISA?
  11. HMB

    NDX

    if that's not gonna turn into a 200-point min rally into the close, I'll voluntarily buy 0.01 BTC as soon as it becomes eligible for demo accounts...
  12. Hi, I have requested to add INTA on the platform. It should be done by tomorrow morning. Thanks, Jakub
  13. Intapp, Inc (ticker INTA) had IPO a month ago on Nasdaq and looking to buy some shares but they are not available on IG, why would that be? Thanks
  14. GlaxoSmithKline Q2 revenue is expected to show revenue growth from newer drugs partially offset by increased generic competition in older drugs. Source: Bloomberg Shares GlaxoSmithKline Price Revenue Vaccine Earnings before interest, taxes, depreciation and amortization Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 27 July 2021 When is GlaxoSmithKline earnings date? The GlaxoSmithKline (GSK) earnings release date is scheduled for the 28 July 2021. The scheduled results will cover the groups second quarter and half-year earnings. GSK results preview: What does the street expect? While GlaxoSmithKline (in partnership with Sanofi Pasteur) look to stage three trials of their Covid-19 vaccine, the company has not yet released a vaccine to market. The global rollout of Covid-19 vaccines (by competitors) looks to have disrupted the course of other vaccine programmes in key markets such as the US and the UK for GSK. Revenue for second quarter (Q2) 2021 is expected to be bolstered by sales of newer drugs in the respiratory and HIV segments, with a partial offset from older drugs which are finding increased competition through generic offerings. In terms of the upcoming results, a mean of analyst estimates compiled by Refinitiv data arrive at the following: Revenue $10.433 billion (+10.27%) year on year (YoY) Earnings before interest tax depreciation amortisation (EBITDA) $2.855 billion (-8.91% YoY) Earnings per share (EPS) $0.51 (+10.87% YoY) How to trade the GlaxoSmithKline results Source: Refinitiv A Refinitiv poll of analyst ratings arrive have a long term consensus rating of ‘buy’ for GlaxoSmithKline with a target price $47.87. GlaxoSmithKline (ADR) share price: technical analysis Source: IG The share price of GlaxoSmithKline continues to trade in an uptrend which has been in place since the beginning of March 2021. The price has however started to correct from near term highs. The correction sees the price now testing support at the 38.85 level. Traders looking for long entry might prefer to see a bullish price reversal around current levels accompanied by a sharper move out of oversold territory by the Stochastic oscillator. In this scenario, the recent high at 40.55 would become the initial resistance target, while a close below 38.35 could be used as a stop loss consideration for the trade. However should a bullish price reversal not manifest and we see the price move to close below both the 38.85 and 38.35 support levels, this could instead be a suggestion that the uptrend has failed and perhaps a new downtrend for the share price is forming. In Summary GSK reports Q2 2021 results on the 28 July Q2 revenue of $10.433 billion (+10.27% YoY) is expected Q2 EBITDA of $2.855 billion (-8.91% YoY) are expected EPS $0.51 (+10.87% YoY) in the Q2 are expected The average long term broker rating for GSK is a ‘buy’ The share price of GSK is testing support as it finds itself in a short-term correction of a longer-term uptrend
  15. Alibaba continues to enjoy strong revenue and customer growth, but the decline in its stock price reflects a bleaker outlook thanks to the actions of the Chinese government. Source: Bloomberg Shares Alibaba Group China Investor IPO Price Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 27 July 2021 When is Alibaba’s earnings date? Alibaba reports earnings on 3 August, covering its fiscal first quarter (Q1). Alibaba earnings – what to expect Alibaba is expected to report revenue of $32 billion, with earnings per share of $2.24. Alibaba continues to enjoy excellent growth, achieving one billion customers in the 2021 financial year (FY2021), with the vast majority of these based in China. Profit margins and revenues have risen at a steady pace in every year since 2013, at 10% and 23% respectively. However, for Chinese tech shares such as Alibaba, the main concern is no longer business performance, but the attitude of the Chinese government instead. The cancellation of the Ant Financial initial public offering (IPO) and the current clampdown on tutoring stocks points towards a much more restrictive approach to the private sector. As many could have predicted, the culture clash between free market capitalism and the controlling instincts of the Chinese Communist Party has begun anew, with the Party determined to rein in the perceived excesses of the free market. This is a situation unfamiliar to many investors, unused to the impact of government interference on most companies except in relatively isolated circumstances, and accounts for the underperformance of Chinese shares, with Alibaba no exception. Find out more on how to buy, sell, and short Alibaba shares Alibaba broker ratings A total of 17 analysts currently rate Alibaba as a ‘strong buy’, with 30 more at ‘buy’. Three analysts have a ‘hold’ rating, and only one ‘sell’. Alibaba stock – technical analysis The direction in Alibaba stock is clear for the time being. Rallies have been regularly sold, with the latest bounce in late June running into the 100-day simple moving average (SMA), currently 22,225. With the macro outlook so unfavourable the stock continues to reflect investor caution, so it looks like further declines are on the cards as the price targets 18,000 and lower. Source: ProRealTime A solid business, but outlook continues to darken Alibaba has plenty to commend it from a fundamental perspective, but with Beijing adopting an activist position the stock continues to decline. Investors might argue that this means Alibaba is becoming a bargain, but traders will want to see a turnaround in the price, which is unlikely to happen unless the Chinese government reduces its interventions.
  16. EUR/USD, GBP/USD and NZD/USD weaken from Fibonacci resistance EUR/USD, GBP/USD and NZD/USD turn lower after posting a deep 76.4% Fibonacci retracement. Forex NZD/USD EUR/USD GBP/USD Pound sterling Euro Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 27 July 2021 EUR/USD turning lower from latest retracement EUR/USD has managed to post yet another 76.4% Fibonacci retracement, with the pair heading lower once again. This highlights how the trend seen over the course of the past two months remains worth following. While the trend is very shallow in nature, that does bring a higher likeliness of a deep retracement. As such, a bearish outlook holds from here, with a push up through the prior swing-high of $1.183 required to negate that downside bias. Source: ProRealTime GBP/USD turning lower after 76.4% retracement GBP/USD has started to lose ground in early trade today, following the rally into the 76.4% Fibonacci resistance level at $1.383. With a wider bearish trend playing out over recent months, there is a good chance we see further downside from here. A rise up through the $1.391 level would be required to negate that outlook. Source: ProRealTime NZD/USD slumps after deep pullback NZD/USD has similarly turned lower after a 76.4% Fibonacci retracement yesterday. The wider downtrend points towards such a move coming into play, with a rise through $0.7045 required to negate that bearish outlook. Until then, further weakness looks likely from here. Source: ProRealTime
  17. Gold falls back into support as Brent crude pushes into Fibonacci resistance Gold falls back into key support, while Brent crude has rallied up into Fibonacci resistance in its bid to regain previous highs. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 27 July 2021 Gold drifts back into key support level Gold has been on the back foot once again, with price moving back into the key $1790 support level. A break below that level would bring a bearish picture into play following a period of consolidation. However, with price typically managing to post a short rebound from this level, it is worthwhile expecting another move higher until we see $1790 break. Source: ProRealTime Brent crude rallies back into Fibonacci resistance Brent crude has been on the rise since a pullback into the wider 76.4% Fibonacci retracement level at $67.60. That rally has brought us back into yet another 76.4% level at $74.12. The wider uptrend points towards a likely push up through this level in a bid to regain the previous peaks of $76.30 and $77.57. However, whether that will come in a straight line remains to be seen. For now, we need to see whether price respects that Fibonacci resistance level or simply pushes through. To the downside, any pullback would need to break the $72.14 level to bring a more bearish short-term outlook. Until then, there is a good chance we see further upside come into play. Source: ProRealTime See opportunity on a commodity?
  18. Hi Arvin, Thanks for clearing it up.
  19. Hi @SelfIsolating2021, Thanks for your feedback. The upper management is already discussing this however I will forward your message in order to push this further. Thanks, Jakub
  20. Hi Support Given all the negative feedback I see on Google Play about your in house generated 2FA app, please will I G consider moving to a standard 2FA app, such as Google Authenticator. I cannot risk implementing your home grown flakey app, hence my account is at greater risk of a hack, than other platforms I use. This is going to cost I G business, if it doesn't bring 2FA up to standard in 2021. Best regards
  21. Astrazeneca Q2 revenue is expected to show strong growth, although an increased cost base will pressure underlying earnings. Source: Bloomberg Shares AstraZeneca Price Revenue Earnings before interest, taxes, depreciation and amortization Technical analysis Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 27 July 2021 When are the AstraZeneca results? AstraZeneca, the biopharmaceutical company, earnings release date is scheduled for 27 July 2021. The scheduled results will cover the groups second quarter (Q2) and half-year earnings. What to expect from AstraZeneca results? While a large Covid-19 vaccine rollout will have boosted revenue for the group, it would have done little for underlying earnings due to the company selling the product as a non-profit item. Consensus estimates derived from Refinitiv data arrives at the following expectations for Q2 of 2021: Revenue $7.530 billion (+20%) year on year (YoY) Earnings before interest tax depreciation amortisation (EBITDA) $2.233 billion (-10.75% YoY) Earnings per share (EPS) $0.93 (-3.01% YoY) What is expected to be accretive to future earnings for the group (although may weigh in the short term) is the groups acquisition of biopharmaceutical business Alexion, which was concluded on 21 July 2021, shortly after the reporting quarter. Find out more on how to buy, sell and short AstraZeneca shares How to trade AstraZeneca results A Refinitiv poll of 29 analysts maintain a long-term average rating of ‘buy’ for AstraZeneca (as of 26 July 2021), with 10 of these analysts recommending a strong buy, 16 recommending a buy, 1 hold, 1 sell and 1 strong sell recommendation on the stock. Source: IG AstraZeneca share price – technical analysis view Source: IG charts The share price of AstraZeneca continues to trade in an uptrend which has been in place since the beginning of 2021. The price has however started to correct from near-term highs. Traders respecting the longer-term uptrend will prefer to keep a long bias to trades targeting a retest of the 8770 level, provided that the price does not move to break the confluence of both trend line and horizontal support at the 7800 level. A break of the 7800 level would instead suggest the uptrend to be broken. In summary AstraZeneca results are scheduled for release on 27 July 2021 Q2 revenue of $7.530 billion is expected Q2 EBITDA of $2.223 billion is expected EPS of $0.93 is expected The average broker rating for AstraZeneca is ‘buy’ The share price of AstraZeneca is currently in a short term correction of a longer-term uptrend
  22. Hi @Johno1668, The Pay Date is not confirmed as of today. Please note once Pay date is confirmed by the market, our custodian will released the shares to IG once received. Thanks, Jakub
  23. FTSE 100, DAX and Dow head lower as recovery comes into question FTSE, DAX, and Dow head lower, with the breakdown for the DAX potentially laying the groundwork for a similarly bearish move elsewhere. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 27 July 2021 FTSE 100 at risk of downturn The FTSE 100 has started the day on a negative footing, with the index heading back towards the key 6979 swing-low. Coming off the back of a deep retracement above the 61.8% threshold, a break back below that support level points towards a potential period of weakness coming into play. As such, watch out for whether that 6979 level breaks as a gauge of sentiment for the day ahead. Source: ProRealTime DAX on the slide after breaking support The DAX has already broken through the key 15542 support level, following a rally up through the 76.4% Fibonacci threshold. There is a good chance this move lower will provide a retracement of the latest rally rather than an all-out capitulation. However, the break below 15542 does point towards a heightened chance of near-term downside, with a bearish view in play unless price rises through the 15641 level. Source: ProRealTime Dow Jones turns lower after record high The Dow is similarly on the back foot in early trade, coming off the back of a rise into record highs. That intraday uptrend remains intact unless price falls back below the 34760 swing-low. Such a breakdown would point towards a potential retracement of the rally from 33740. However, for now we need to see whether or not price ends this intraday uptrend by breaking 34760 as a gauge of sentiment. Source: ProRealTime
  24. (Bloomberg) -- European Central Bank policy makers have acknowledged that their new push to boost inflation expectations could take quite a while to kick in, according to officials familiar with the discussions. In its strategy review this month, when it raised its inflation goal and acknowledged that it might overshoot, the ECB’s Governing Council discussed the experience of the U.S. Federal Reserve, the officials said. U.S. expectations -- a critical signal of future price gains -- were slow to move last August when the Fed adopted average inflation targeting and said it was willing to overshoot its 2% target. They only started to gather pace months later when the incoming Biden administration started to discuss a fiscal boost to the economy. They accelerated again early this year when the Fed kept policy loose despite price growth jumping well above 2% on soaring demand. While expectations have eased since May as Fed officials started to broach the topic of tapering stimulus, they remain relatively robust. Likewise, there was little impact on euro-area expectations or bets on interest-rate hikes even after the ECB followed up on its strategy review by strengthening its commitment to keep borrowing costs low. The Fed’s experience should help soothe any concerns at the ECB about the largely ambivalent response by investors and economists last week. Analyst reports mostly described the new language and President Christine Lagarde’s press conference as dovish but short on specifics. “It is hard to see a meaningful impact on near-term growth and inflation dynamics from the promise to hike rates a little later,” Oliver Rakau, an economist at Oxford Economics, said in a report. “We continue to think that some near-term policy response, such as an immediate increase in quantitative easing, would have benefited the credibility of the new strategy.” An ECB spokesperson declined to comment on the Governing Council’s deliberations. The central bank’s strategy review saw the inflation goal lited to 2% from “below, but close to, 2%.” In the policy decision two weeks later, policy makers said interest rates will stay at present or lower levels until inflation projections are in line with the target “well ahead” of the end of the forecast horizon, a period that can stretch as much as three years into the future. They also said inflation projections must stay in line with the goal until the end of the horizon, and be supported by “sufficiently advanced” underlying price dynamics. Germany’s Jens Weidmann and Belgium’s Pierre Wunsch objected because they saw the guidance as an overly long-term commitment. What Bloomberg Economics Says... “Achieving that goal remains a distant prospect and -- without additional policy support -- it sounds like little more than wishful thinking.” -David Powell and Maeva Cousin. To read their report, click here The boost from fiscal spending in the U.S. will resonate with Lagarde, who has repeatedly urged national governments not to withdraw pandemic support too soon. She said last week that “ambitious, targeted and coordinated fiscal policy should continue to complement monetary policy.” While joint fiscal support is underway with the European Union’s 800 billion-euro ($944 billion) recovery fund, governments will invest those funds over several years. EU rules on debt burdens and deficits are currently suspended, but only until the end of next year, and politicians in some countries are already starting to talk about the need to rein in borrowing. If the U.S. is a guide, that could slow the return to price stability, and the longer it takes, the greater the chance that the credibility of the ECB’s new strategy and guidance is eroded. Before last week’s decision, the central bank was projecting inflation will average just 1.4% in 2023. Professional forecasters reckon it’ll only be at 1.8% in 2026. “I think the ECB will be tested in a very different manner,” said Patrick Krizan, an economist with Allianz (DE:ALVG) SE in Munich. “The Fed was tested on the upside. And the ECB will be tested on the downside.” ©2021 Bloomberg L.P. 27th July 2021. Investing.com
  25. By Tyler Yell, CMT, Currency Strategist. 27th July 2021. DailyFX When your forex trading adventure begins, you’ll likely be met with a swarm of different methods for trading. However, most trading opportunities can be easily identified with just one of four chart indicators. Once you know how to use the Moving Average, RSI, Stochastic, & MACD indicator, you’ll be well on your way to executing your trading plan like a pro. You’ll also be provided with a free reinforcement tool so that you’ll know how to identify trades using these forex indicators every day. Find the best trading ideas and market forecasts from DailyFX. THE BENEFITS OF A SIMPLE STRATEGY Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Traders often feel that a complex trading strategy with many moving parts must be better when they should focus on keeping things as simple as possible. This is because a simple strategy allows for quick reactions and less stress. If you’re just getting started, you should seek the most effective and simple strategies for identifying trades and stick with that approach. DISCOVER THE BEST FOREX INDICATORS FOR A SIMPLE STRATEGY One way to simplify your trading is through a trading plan that includes chart indicators and a few rules as to how you should use those indicators. In keeping with the idea that simple is best, there are four easy indicators you should become familiar with using one or two at a time to identify trading entry and exit points: Moving Average RSI (Relative Strength Index) Slow Stochastic MACD Once you are trading a live account a simple plan with simple rules will be your best ally. USING FOREX INDICATORS TO READ CHARTS FOR DIFFERENT MARKET ENVIRONMENTS There are many fundamental factors when determining the value of a currency relative to another currency. Many traders opt to look at the charts as a simplified way to identify trading opportunities – using forex indicators to do so. When looking at the charts, you’ll notice two common market environments. The two environments are either ranging markets with a strong level of support and resistance, or floor and ceiling that price isn’t breaking through or a trending market where price is steadily moving higher or lower. Using technical analysis allows you as a trader to identify range bound or trending environments and then find higher probability entries or exits based on their readings. Reading the indicators is as simple as putting them on the chart. TRADING WITH MOVING AVERAGES One of the best forex indicators for any strategy is moving average. Moving averages make it easier for traders to locate trading opportunities in the direction of the overall trend. When the market is trending up, you can use the moving average or multiple moving averages to identify the trend and the right time to buy or sell. The moving average is a plotted line that simply measures the average price of a currency pair over a specific period of time, like the last 200 days or year of price action to understand the overall direction. LEARN FOREX: GBPUSD DAILY CHART - MOVING AVERAGE You’ll notice a trade idea was generated above only with adding a few moving averages to the chart. Identifying trade opportunities with moving averages allows you see and trade off of momentum by entering when the currency pair moves in the direction of the moving average, and exiting when it begins to move opposite. TRADING WITH RSI The Relative Strength Index or RSI is an oscillator that is simple and helpful in its application. Oscillators like the RSI help you determine when a currency is overbought or oversold, so a reversal is likely. For those who like to ‘buy low and sell high’, the RSI may be the right indicator for you. The RSI can be used equally well in trending or ranging markets to locate better entry and exit prices. When markets have no clear direction and are ranging, you can take either buy or sell signals like you see above. When markets are trending, it becomes more obvious which direction to trade (one benefit of trend trading) and you only want to enter in the direction of the trend when the indicator is recovering from extremes. Because the RSI is an oscillator, it is plotted with values between 0 and 100. The value of 100 is considered overbought and a reversal to the downside is likely whereas the value of 0 is considered oversold and a reversal to the upside is commonplace. If an uptrend has been discovered, you would want to identify the RSI reversing from readings below 30 or oversold before entering back in the direction of the trend. TRADING WITH STOCHASTICS Slow stochastics are an oscillator like the RSI that can help you locate overbought or oversold environments, likely making a reversal in price. The unique aspect of trading with the stochastic indicator is the two lines, %K and %D line to signal our entry. Because the oscillator has the same overbought or oversold readings, you simply look for the %K line to cross above the %D line through the 20 level to identify a solid buy signal in the direction of the trend. TRADING WITH THE MOVING AVERAGE CONVERGENCE & DIVERGENCE (MACD) Sometimes known as the king of oscillators, the MACD can be used well in trending or ranging markets due to its use of moving averages provide a visual display of changes in momentum. After you’ve identified the market environment as either ranging or trading, there are two things you want to look for to derive signals from this indictor. First, you want to recognize the lines in relation to the zero line which identify an upward or downward bias of the currency pair. Second, you want to identify a crossover or cross under of the MACD line (Red) to the Signal line (Blue) for a buy or sell trade, respectively. Like all indicators, the MACD is best coupled with an identified trend or range-bound market. Once you’ve identified the trend, it is best to take crossovers of the MACD line in the direction of the trend. When you’ve entered the trade, you can set stops below the recent price extreme before the crossover, and set a trade limit at twice the amount you’re risking.
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