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MongiIG

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  1. MongiIG
    SENTIMENT INDICATORS: USING IG CLIENT SENTIMENT
    The IG Client Sentiment (IGCS) is unique, proprietary and potentially helpful to traders. The article will outline the following illustrative points:
    What is IG Client Sentiment (IGCS)? Sentiment Indicators IGCS as a Leading Indicator IGCS as a Technical Indicator: Summary  

     
     
    WHAT IS IG CLIENT SENTIMENT (IGCS)?
    IG Client Sentiment (IGCS) is a tool that traders can use in conjunction with a broader technical and/or fundamental strategy. IGCS incorporates retail trader positioning (long and short) to formulate a sentiment bias. This is represented in percentage form (see image below) which aids traders in identifying market imbalances which could lead to possible opportunities.
    IGCS on EUR/USD:

    SENTIMENT INDICATORS
    Sentiment indicators are few and far between. The two most well-known are open interest in options, which largely applies to stocks, and the Commitment of Traders Report (CoT). What sets IGCS apart is the large sample size of retail traders which deliver more usable data in terms of indicator readings, multiple market data sets (FX, equities commodities) and timely updates for these markets which are refreshed several times daily.
     
    IGCS AS A LEADING INDICATOR
    The use of IGCS as a technical indicator can allow traders to confirm or refute signals produced by their wider trading strategy. Both fundamental and other technical techniques are used to gauge trends, ranges, potential reversals etc. so incorporating IGCS provides another layer of data to help verify a hypothesis.
    IGCS can be considered as a leading indicator as it uses past and current data to project possible future price movements however, as IGCS (retail) covers only one component of the market equation, traders should not rely solely on the IGCS tool for trading decisions. Simply put, retail traders contribute only a certain percentage of market input so naturally other factors will have influence on the respective market.
    For example, the EUR/USD chart below shows the projectible nature that can occur with IGCS. The highlighted are on the chart exhibits an increase in net short positions from retail traders which coincided with a rise in price action (EUR appreciation) on the price chart itself.
    IGCS EUR/USD:

     
    IGCS AS A TECHNICAL INDICATOR: SUMMARY
    We have shown how sentiment/IGCS can be a unique, proprietary and potentially helpful addition to a trader’s approach. In subsequent IGCS articles in this market sentiment sub-module, we will go through the implementation and flexibility of this tool in varying trading circumstances.
     
    1 July 2021 Warren Venketas, Markets Writer
    Source: DailyFX
           
  2. MongiIG

    Market Details Poll

    By MongiIG,


    Product Update
    Hello IG Community,
    IG is always looking for ways to improve our clients’ experience. We are currently looking at how we can improve your experience before you place a trade. We would love to hear what market and pre-trade analysis you currently explore, as well as additional features, changes or improvements you would like to see to the platform in this area. Our goal is to make your analysis quicker and easier whilst remaining focused and in-depth.
    Your poll vote matters! We are working towards making IG trading platform developments for the client sentiment indicator feature. We would appreciate it if you could take part in the poll as we are continuously working on adding more indicators to our IG trading platform to make your trading experience better. 

     
    Client Sentiment Indicator - IG trading platform
    A sentiment indicator is designed to represent how a group feels about the market or economy. Sentiment indicators gauge market psychology in the form of investor or consumer behavior and beliefs that may influence the market.
    When a sentiment indicator is moving in the same direction as what it is analyzing, that typically helps confirm that trend.
    Extreme readings on a sentiment indicator may cause some traders to take a contrarian view; for example, "buy when there is fear, sell when there is greed".
    Sentiment indicators are used to analyze trends, assets, and the economy from the perspective of the participants involved, instead of just looking at an asset or data point isolation.


     
    Market details Poll features:
    Broker Ratings
     
    Other positions taken by clients trading the same market, trading activity and top movers
     

     

     
    Chart patterns, find a market, most open positions, most traded



     
    Macro-economic events

     
     

     
    Thank you very much for sharing your valuable & useful feedback. Here at IG we want to make sure your suggestions or feedback help shape our direction and future.
    We appreciate that the best businesses are built around two-way communication with clients. If you have other feedback or suggestions and time to spare, please write to us and comment on this blog why you picked your market detail and why not the others. 
    We would love to hear from you!
     
    All the best - MongiIG

  3. MongiIG

    New Members Guide

    By MongiIG,


    Educational
    Welcome to the IG Community that offers many benefits for financial markets education. We promote autonomous learning by providing opportunities for traders to take more control of their learning. This space allows you to express your trading ideas or trading news you find interesting as well as interact with other likeminded traders. 

     
     
    Promoted news (Our Picks) – Why it’s there ?
     
    This will help you grow with your knowledge of the financial markets understanding and staying updated with the latest news from around the world that affects and moves the markets. Knowing what news events and reports are scheduled or updates for a trading day or a week will help keep you informed on potential market movements. When trading in any market, it is very important for new traders to be aware of the various economic indicators and news events and releases that shape the markets. Being able to distinguish which data to look out for, discerning what it means and knowing how to trade it can give traders an edge and set them up long-term. On the community we regularly contribute to various content threads and discussions, we offer a wide array of research related products and tools that can help enhance a traders overall experience.

     
     
     
    How to find the forum section
     
    Visit the IG Community website and you can view forum threads and start a new topic.
    On the overview page when you scroll down you can view the latest forum posts.

     
     
     
    You can click the forum tab and there you will find forums such as strategy and market discussion where you can discuss and read market related information such as commodities, shares and ETFs, investments, share dealing and smart portfolios, indices and macro events, cryptocurrency and blockchain, foreign exchange (FX) and lastly general trading strategy discussion. 


     
     
    New to IG forum will show new to IG Community and new client trading questions.

     
     
    Help: Trading, Platforms, Apps and Chart support you will find forums such as IG trading support – dealing questions, IG account support – MyIG help, IG technical support – Platform and App help, IG chart support – charts, MT4 and PRT and lastly feedback and suggestions.

     
     
     
    Unread content
     
    This area shows posts across the whole community that you haven't seen over the last year. We have the newest ones at the top so you can see the most up to date posts from members.

     
     
    Who the moderators are and how to quote/ tag them
     
    The IG Community moderators are @MongiIG @OfentseIG

    You can click follow on forums or members that interest you and to reply on the posted forum you can click on reply to this topic and start a new topic.

    Submit reply and we will gladly assist you.
     
     
    Notifications, what they mean and how to open them
     
    We'll show you these notifications when you visit the community - just click the bell icon. Notifications that are sent to your devices even if you're not currently browsing. Notifications that we send as an email go to email address.

     
     
    IG Community Tutorials 
     
    Snapshot articles to help you get the most out of IG Community please kindly visit:

     

     
     
     
     
    How to follow other members in the community.
     
    There are a number of areas within Community which you can ‘Follow’. Threads, community members, blogs, and gallery posters. When you click on the ‘follow’ link you will be asked specifics on how often you would like to be updated on the content published. You can see an example below of a ‘follow’ on the Cryptocurrency thread.

    You can also follow individuals by visiting their profile (simply click on their name), however the updates options are slightly different. You can also decide if you want others to know you are following a specific individual. This is a good option if you like the content someone posts, want to keep up to date with stuff the Community manager or moderator’s posts, or even the IG analysts.

     
     
    IGTV On Demand
      We have an internal team that produces content, live news updates, data and analytics in real time financial market coverage which helps you the trader to engage in the worlds financial markets.  
     
    Happy trading and look forward to your first post!
     
    All the best - MongiIG
  4. MongiIG

    IG Indicators Request Poll

    By MongiIG,


    Product Updates
    Your Poll vote matters:
    Hello IG Community! We are working towards making IG trading platform indicators developments better to provide a good user trading experience.
    Why? We strive to provide our clients with the best trading indicators, therefore your feedback is important to us and we will pass on your feedback to our development team. 
    We would appreciate it if you could take part in the poll as we are continuously working on adding more indicators to our IG trading platform to make your trading experience better. 
     
    Indicators request options:
    Please read the information on all the options below and then vote on what you would like IG to work on offering next.
    1. Logarithmic Scale
    A logarithmic price scale, also referred to as a "log scale", is a type of scale used on a chart that is plotted such that two equivalent price changes are represented by the same vertical distance on the scale.
    Logarithmic price scales are a type of scale used on a chart, plotted such that two equivalent price changes are represented by the same vertical changes on the scale.
    They are generally used for the long-term perspective analysis of price changes. They differ from linear price scales because they display percentage points and not dollar price increases for a stock.
     
    2. Hull Moving Average
    The Hull Moving Average (HMA) is a directional trend indicator. It captures the current state of the market and uses recent price action to determine if conditions are bullish or bearish relative to historical data.
    The Hull differs from more traditional trend indicators like the Exponential Moving Average (EMA) and the Simple Moving Average (SMA). It is designed to reduce the lag often associated with those MAs by providing a faster signal on a smoother visual plane.
     
    3. Client Sentiment
    A sentiment indicator is designed to represent how a group feels about the market or economy. Sentiment indicators gauge market psychology in the form of investor or consumer behavior and beliefs that may influence the market.
    When a sentiment indicator is moving in the same direction as what it is analyzing, that typically helps confirm that trend.
    Extreme readings on a sentiment indicator may cause some traders to take a contrarian view; for example, "buy when there is fear, sell when there is greed".
    Sentiment indicators are used to analyze trends, assets, and the economy from the perspective of the participants involved, instead of just looking at an asset or data point isolation.
     
    4. Volume at Price
    A price by volume (PBV) chart is a horizontal histogram plotted on a security's chart, showing the volume of shares traded at a specific price level. Often times, price by volume histograms are found on the Y-axis and are used by technical traders to predict areas of support and resistance.
    Price by volume charts are used to illustrate high buying and selling interest at specific price levels. They are indicative of price levels over a certain period of time. They are generally used in conjunction with other forms of technical analysis.
     
    5. Renko
    A Renko chart is a type of chart, developed by the Japanese, that is built using price movement rather than both price and standardized time intervals like most charts are. It is thought to be named after the Japanese word for bricks, "renga," since the chart looks like a series of bricks. A new brick is created when the price moves a specified price amount, and each block is positioned at a 45-degree angle (up or down) to the prior brick. An up brick is typically colored white or green, while a down brick is typically colored black or red.
    Renko charts are composed of bricks that are created at 45-degree angles to one another. Consecutive bricks do not occur beside each other. A brick can be any price size, such a $0.10, $0.50, $5, and so on. This is called the box size. Box size can also be based on the Average True Range (ATR).
    Renko charts have a time axis, but the time scale is not fixed. Some bricks may take longer to form than others, depending on how long it takes the price to move the required box size. Renko charts filter out noise and help traders to more clearly see the trend, since all movements that are smaller than the box size are filtered out. Renko charts typically only use closing prices based on the chart time frame chosen. For example, if using a weekly time frame, then weekly closing prices will be used to construct the bricks.
     
    6. Fractals
    The fractal indicator is based on a simple price pattern that is frequently seen in financial markets. Outside of trading, a fractal is a recurring geometric pattern that is repeated on all time frames. From this concept, the fractal indicator was devised. The indicator isolates potential turning points on a price chart. It then draws arrows to indicate the existence of a pattern. The bullish fractal pattern signals the price could move higher. A bearish fractal signals the price could move lower. Bullish fractals are marked by a down arrow, and bearish fractals are marked by an up arrow.
     
    7. Volume Profile
    Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume. Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.
     
    8. Order Book
    An order book is updated in real time because it’s an important indicator of the market depth – the amount of trades at any given moment – which is why they are sometimes called a ‘continuous book’. Order books can also identify the buyers and sellers behind each individual exchange.
     
     

    Thank you very much for sharing your valuable & useful feedback. Here at IG we want to make sure your suggestions or feedback help shape our direction and future.
    We appreciate that the best businesses are built around two-way communication with clients. If you have other feedback or suggestions and time to spare, please write to us and comment on this blog why you picked your indicators request and why not the others. 
    We would love to hear from you!
     
    All the best - MongiIG

  5. MongiIG

    IG Charts Request Poll

    By MongiIG,


    Product Updates
    Your Poll vote matters:
    Hello IG Community! We are working towards making IG trading platform charting developments better to provide a good user trading experience.
    Why? We strive to provide our clients with the best charts, therefore your feedback is important to us and we will pass on your feedback to our development team. 
    We would appreciate it if you could take part in the poll as we are continuously working on adding more chart features to our IG trading platform to make your trading experience better. 
     
    Charts request options:
    Please read the information on all the options below and then vote on what you would like IG to work on offering next.
    1.      Add indicators/tools
    Whether you’re interested in forex trading, commodities or share trading, it can be helpful to use technical analysis as part of your strategy – and this includes studying various trading indicators. Trading indicators are mathematical calculations, which are plotted as lines on a price chart and can help traders identify certain signals and trends within the market.
    There are different types of trading indicators, including leading indicators and lagging indicators. A leading indicator is a forecast signal that predicts future price movements, while a lagging indicator looks at past trends and indicates momentum.
     
    2.      Timeframes
    A timeframe in trading can refer to any designated unit of time in which trading takes place. Typically, forex timeframes will be measured in seconds, minutes, hours, days, weeks, months or years. You will choose the timeframe that is most suited to your trading strategy.
     
    3.      Customise indicators/tools
    Once you’ve applied your indicator to a chart, right-click on the indicator itself. From here you can edit values, colours and styles.
     
    4.      Drawings
    You can edit drawings, the values, by right-clicking on your drawing. You can also duplicate or delete drawings in this way.  
     
    5.      Backtesting
    Backtesting will run a trading strategy against historic data for an instrument, and give you a detailed report on how it would have executed trades. Apply indicators & trading systems then create a new strategy or modify an existing one. 
    Backtesting is one of the most important aspects of developing a trading system. If created and interpreted properly, it can help traders optimize and improve their strategies, find any technical or theoretical flaws, as well as gain confidence in their strategy before applying it to the real world markets.
     
    6.     Trade from chart
    The Trade from charts feature helps you place orders directly on the charts on the trading platform . You can place Limit and Stop Loss Market (SL-M) orders on this feature.
    If you place a buy order less than the CMP (Current Market Price), a limit order will be placed. If you place a buy order more than the CMP, an SL-M order will be placed.
    Similarly, if you place a sell order higher than the CMP, a limit order will be placed. If you place a sell order lesser than the CMP, an SL-M order will be placed.
     
    7.      Deeper history
    Displaying historical data, you may scroll historical data using left-mouse drag on the chart. To scroll historical data, left-mouse click on the chart and drag the mouse to the left. For example having more than 5 years historical chart data.
    Historical data analysis is the study of market behavior over a given period of time. Through detailed examination of a market's past behavior, traders and investors can gain perspective on the inner workings of that market. The information obtained over the course of the process may prove useful in developing a viable trading plan or improving an existing methodology.
     
    8.      Scaling
    We understand the importance of precision in the technical analysis and add the ability to set the exact price and time scale ratio.
    Scaling will be for editing your chart on the price scale. This is a fast way to edit your chart's price scale to make it easier to visualize. Using this simple tip will let you customize your chart from what line and labels are showing on chart, one of the fastest ways to customize your chart.
     
    9.      Weekend data
    Platform customisation feature you can completely customise your trading experience, setting up the platform in exactly the way you want it. To customise your trading hours to be in line with the New York or London open or close – you’ll have access to an editable workspace that gives you what you need, when you need it.
    This option lets you display or hide weekend data (Saturday and Sunday). The official market time zone is used to determine what data is included in "weekend data".
     
    10.     Time zones
    Time zones selected modify the time zones used to display data displayed on the charts. The time zones chosen affects all data including times displayed in charts, order lists and tick by tick lists.
     
     

     
    Thank you very much for sharing your valuable & useful feedback. Here at IG we want to make sure your suggestions or feedback help shape our direction and future.
    We appreciate that the best businesses are built around two-way communication with clients. If you have other feedback or suggestions and time to spare, please write to us and comment on this blog why you picked your charts request and why not the others. 
    We would love to hear from you!
     
    All the best - MongiIG

  6. MongiIG
    Hello IG Community,
    We're happy to announce that Signal Centre Trade Ideas expert advisor (EA) is now available to use on MetaTrader 4 Platform.
                                                                                  
                                                                                         
     
     
    Use Signal Centre to discover trade ideas
    The Signal Centre team of experienced technical analysts and professional traders scrutinise the global financial markets daily to provide comprehensive analysis on the latest market trends and to deliver clear trade ideas that enhance trading opportunities.

    How it works:
    Forward Thinking Analysis
    Signal Centre combines experienced, human-led analysts with powerful, AI technology to conduct a deep analysis of the markets whilst drawing on our professional trading expertise to deliver robust risk/reward trade ideas that support novice and advanced traders alike.
    Market Analysis
    Signal Centre is FCA regulated. The compliant-friendly approach uses advanced analysis techniques to understand the latest activity across all major markets and asset classes. The team of experienced market professionals use both traditional and alternative data sets to gain a comprehensive view of the markets, from the short to the long term, to suit all trading styles.
    Idea Generation
    Signal Centre turns its rich analysis content and data into instant, actionable trading ideas and longer term strategies, helping traders of all levels to gain an edge. Clear and concise, our trading signals are designed to make trading the markets simpler and more enjoyable for all.
    Delivery
    Signal Centre portfolio of products and delivery methods are designed to increase engagement and fit with individual trading styles, workflows and environments. Available in multiple languages across multiple time frames and accessible via multiple channels and automation solutions.
     

     
     
    Simplified Decision Making
     

     

     

     
    Installation
    Launch your MT4 platform. Look for the Expert Advisors section under the Navigator panel at the left side of the platform. Click on the Plus sign and the available EAs should be listed there. Click on the Signal Centre Trade Ideas EA to install and drag it onto one of the charts on your platform.

     
    After installing and dragging the Signal Centre Trade Ideas EA onto one of the charts on your platform it will then appear as shown below:

     
    MT4 Download Link (Only for Windows).
     
    All the best - MongiIG

     
     
     
     
  7. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 20th February 2023. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video. 

    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    N/A
     
     
     
    How do dividend adjustments work?  
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  8. MongiIG
    - Reviewed by James Stanley, Nov. 24, 2021
    Triangle patterns have three main variations and appear frequently in the forex market. These patterns provide traders with greater insight into future price movement and the possible resumption of the current trend. However, not all triangle formations can be interpreted in the same way, which is why it is essential to understand each triangle pattern individually.
    Forex triangle patterns main talking points:
    Definition of a triangle pattern Symmetrical triangles explained Ascending and descending triangle patterns Key points to remember when trading triangle patterns Test your knowledge of forex patterns with our interactive Forex Trading Patterns quiz
    WHAT IS A TRIANGLE PATTERN?
    A forex triangle pattern is a consolidation pattern that occurs mid-trend and usually signals a continuation of the existing trend. The triangle chart pattern is formed by drawing two converging trendlines as price temporarily moves in a sideways direction. Traders often look for a subsequent breakout, in the direction of the preceding trend, as a signal to enter a trade.

    This article makes use of line chart illustrations to present the three triangle chart patterns. Traders ought to familiarize themselves with the three technical analysis charts and figure out which one suits them best, although, most prefer using forex candlestick charts.
    SYMMETRICAL TRIANGLES
    The symmetrical triangle can be viewed as the starting point for all variations of the triangle pattern. As the name suggests, a triangle can be seen after drawing two converging trendlines on a chart.
    The difference between the symmetrical and the other triangle patterns is that the symmetrical triangle is a neutral pattern and does not lean in any direction. While the triangle itself is neutral, it still favors the direction of the existing trend and traders look for breakouts in the direction of the trend.

    Symmetrical triangle trading strategy
    Triangles provide an effective measuring technique for trading the breakout, and this technique can be adapted and applied to the other variations as well.
    The AUD/USD chart below shows the symmetrical triangle. The vertical distance between the upper and lower trendline can be measured and used to forecast the appropriate target once price has broken out of the symmetrical triangle.
    Its important to note that finding the perfect symmetrical triangle is extremely rare and that traders should not be too hasty to invalidate imperfect patterns. Traders ought to understand that triangle analysis is less about finding the perfect pattern and more about understanding what the market is communicating, through price action.

    ASCENDING TRIANGLE PATTERN
    The ascending triangle pattern is similar to the symmetrical triangle except that the upper trendline is flat and the lower trendline is rising. This pattern indicates that buyers are more aggressive than sellers as price continues to make higher lows. Price approaches the flat upper trendline and with more instances of this, the more likely it is to eventually break through to the upside.

    Ascending triangle trading strategy
    An ascending triangle can be seen in the US Dollar Index below. Leading on from the existing uptrend, there is a period of consolidation that forms the ascending triangle. Traders can once again measure the vertical distance at the beginning of the triangle formation and use it at the breakout to forecast the take profit level. In this example, a rather tight stop can be placed at the recent swing low to mitigate downside risk.

    DESCENDING TRIANGLE PATTERN
    The descending triangle pattern on the other hand, is characterized by a descending upper trendline and a flat lower trendline. This pattern indicates that sellers are more aggressive than buyers as price continues to make lower highs.

    Descending triangle trading strategy
    Below is a good example of the descending triangle pattern appearing on GBP/USD. A downtrend leads into the consolidation period where sellers outweigh buyers and slowly push price lower. A strong break of the lower trendline presents traders with an opportunity to go short. In this example, it doesn’t take long for the position to move in the opposite direction, highlighting the importance of setting an appropriate stop level.
    The take profit level is set using the vertical distance measured at the beginning of the descending triangle formation.

    TRADING WITH TRIANGLE PATTERNS: KEY THINGS TO REMEMBER
    Always be cognisant of the direction of the trend prior to the consolidation period. Make use of upper and lower trendlines to help identify which triangle pattern is being formed. Use the measuring technique discussed above to forecast appropriate target levels Adhere to sound risk management practises to mitigate the risk of a false breakout and ensure a positive risk to reward ratio is maintained on all trades. FURTHER READING ON FOREX TRADING PATTERNS
    Other popular continuation patterns include the rising wedge, falling wedge and pennant patterns. In contrast to continuation patterns is reversal patterns. These patterns often precede a reversal in the market with the top patterns including the Head and shoulders pattern, the Morning Star and Evening Star. If you are just starting out on your trading journey it is essential to understand the basics of forex trading in our free New to Forex trading guide.  
    Jan 20, 2022 |  Richard Snow, Analyst. DailyFX
  9. MongiIG

    US earnings preview: Tesla Q1, 2023

    By MongiIG,


    Market News
    Tesla is scheduled to report its first quarter (Q1) earnings on Wednesday, April 19 after markets close.
      Source: Bloomberg
      Shares Tesla, Inc. Price Revenue Profit Relative strength index  Monte Safieddine | Market analyst, Dubai | Publication date: Thursday 13 April 2023 Key dates
    Wednesday, April 19, 2023
    4:30pm Central Time / 5:30pm Eastern Time
    Tesla is scheduled to report its first quarter (Q1) earnings after markets close.
    Company profile
    While the majority of buy traders will hope the electric vehicle (EV) maker will best estimates as it did for fourth quarter 2022 results, there are factors to note this time around.
    There was mention back then of the “downward trajectory for many years” when it came to average sales prices, hence turning to “affordability”.
    Elon Musk, its CEO, pointed out that the potential is there to produce two million cars this year provided there aren’t any “force majeure” disruptions, and while he anticipated there would be accompanying demand for that, the latest delivery numbers haven’t been as optimistic.
    First-quarter deliveries were over 4% higher than the previous quarter with a stronger 422,875 print and year-on-year below the 50% goal at about 36% and weren’t strong enough to match estimates that were hoping for a higher 432K (FactSet).
    The gap to production was around 18K as the total produced was 440,808 (production hardly rising q/q), and a drop in the share of deliveries for its higher-end Model S and X from 4.2% of the total to just 2.5%, roughly half the production of the two models, and raising ongoing concerns over struggles in moving supply at the upper end of its models.
    Data from CPCA (China Passenger Car Association) for March of China-made Tesla EV deliveries were more optimistic in terms of growth given it was up over 19% compared to February’s deliveries.
    But overall, an ongoing gap between deliveries and production means the worry isn’t so much on supply as was the case in the past, but more so on demand in the current tested environment, which usually translates into additional caution when it comes to valuing the growth stock.
    An increase in deliveries shouldn’t come as a surprise given there were plenty of price cuts, with yet another one announced last week in the US and likely to signal more price cuts will be on offer as the year progresses as it attempts to reach its sales target.
    Boasting higher profit margins while a strong characteristic that gives it longevity and depth in a price war against other EV makers can also mean significant growth at this stage will be driven by a drop in price, hitting revenue and if not accompanied by a drop in costs can also mean worries over profits.
    It doesn’t help that price cuts were generally larger than the 4% growth in deliveries, and points to demand elasticity a seller wouldn’t want to boast about.
    What to expect
    That puts additional focus on the extent to which costs can be cut and overall margins, and future models that are expected to be cheaper but also less profitable to the company compared to higher-end models. We know how many they produced and delivered in a quarter swarming with price cuts, but now comes the part about how much they made with that strategy.
    Expectations are we’ll get an EPS (earnings per share) reading of $0.86, with revenue at $23.3bn (source: Refinitiv). The former is less than what we saw in the first quarter of last year and as an estimate is little changed over the past two months, but the latter figure is over 20% higher than Q1 ’22 revenue.
    As for analyst recommendations, there’s a big chunk of 16 opting to hold with two each in sell and strong sell territory, otherwise 13 for a buy and nine for strong buy. The average slight buy amongst them for Tesla is slightly less than recommendations seen for the overall auto and truck manufacturing sector (source: Refinitiv).
    Weekly technical overview and trading strategies
    Looking at it from the weekly time frame’s point of view, much of the price action has been within a large longer-term bear trend channel that’s held thus far (see chart below), with prices closer to the upper end and traders nervously noting whether it’ll hold paving the way for long-term downside continuity.
    Its ADX (Average Directional Movement Index) is no longer in trending territory and the same holds for the daily time frame’s ADX reading, and the DMI (Directional Movement Index) suffering from closely huddled +DI and -DI that’s resulted in more false signals as of late.
    Its RSI (Relative Strength Index) is also failing to provide a signal, on the weekly time frame more reliable in signalling a reversal when in oversold territory than overbought.
    Putting it all together, the technical overview is blurred between consolidatory on weeks of relatively rangebound movement to bear average given its bear trend channel has managed to hold.
    Under the former, conformist strategies would be reversals off the 1st levels (selling after reversal off 1st Resistance when prices first cross over by a sizable amount and only if it retraces back down, buying after reversal off 1st Support) and contrarian strategies breakouts anticipating further follow-through.
    Otherwise, a bear average would see conformist sells off the 1st Resistance level only via significant reversal and avoiding any initial and secondary stop-outs.
    Let’s not forget this is a fundamental event and technicals hold less relevance, especially if results veer far from expectations causing levels to get breached with great ease (and usually acts similar to products under a volatile technical overview where conformist strategies are breakouts), and can easily test 1st levels causing momentum-based traders to note 2nd levels as well.
      Source: IG
    Tesla weekly chart with key technical indicators
      Source: IG
    Tesla weekly chart with IG client sentiment
      Source: IG
    IG Client sentiment* and short interest for Tesla shares
    As for retail trader bias, looking at the chart above, the blue-dotted line represents their sentiment as % long from the left axis (i.e., blue-dotted line at 60% in October means 60% were majority buy and 40% majority sell at the time). They’ve been majority long this entire time, the last time briefly shifting to majority sell in November 2021.
    The latest print puts them in extreme buy territory at 78% today from 77% yesterday.
      Source: IG
    Short interest on the exchange according to the latest reading is 2.7% of outstanding shares (85.5m of 3.16bn), and naturally higher as a percentage of floating shares at 3.1%.
    We’ve had nearly two years of relatively controlled short interest levels compared to what was witnessed back in 2019 (source: Refinitiv).
    *The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, outer circle as of this morning. Inner circle is client sentiment as of yesterday morning.
  10. MongiIG

    Best AI stocks to watch in January 2024

    By MongiIG,


    Market News
    Microsoft, Alphabet, Nvidia, Meta Platforms and Tesla could be the five best AI stocks to watch next month. These stocks are the five largest AI companies listed in the US.
    Source: Bloomberg   Shares Artificial intelligence Nvidia Meta Platforms ChatGPT Tesla, Inc.
     Charles Archer | Financial Writer, London What's on this page?
    1. Microsoft2. Alphabet3. Nvidia4. Meta Platforms5. Tesla   Artificial Intelligence (AI) has been the investing theme of 2023. Indeed, almost all of the S&P 500’s gains in 2023 have come from just seven companies — the so-called ‘magnificent seven’ — all of whom are potentially riding the AI wave to some degree.
    While this may be yet another bubble, Artificial Intelligence is arguably different to similar tech manias. It’s already in use across a wide variety of real-world applications, including in entertainment, social media, art, retail, security, sport analytics, manufacturing, self-driving cars, healthcare, and warehousing alongside dozens of other sectors.
    Every Netflix recommendation, every supermarket rewards purchase, and every football match is analysed ever more relentlessly in order to provide more and better data. And while consumers have always understood — even peripherally — that AI was taking over more and more of the heavy lifting; the sector’s investment catalyst finally arrived earlier this year.
    This catalyst is of course ChatGPT, the OpenAI-developed chatbot which garnered over 1 million users in just five days. It took Facebook 10 months, and Netflix three and a half years to hit the same milestone. ChatGPT now boasts over 100 million weekly active users, and investors are now considering whether the innovation could make careers across the spectrum entirely redundant.
    From an investment perspective, interest rates are relatively high, and quantitative easing appears all but over for the foreseeable future. AI development is exceptionally expensive, and for every ChatGPT breakthrough, there are hundreds of costly failures.
    Therefore, the best AI stocks to watch could be predominantly the larger blue chips — which also helps to diversify any investment in the event that their AI projects fail. However, it’s also worth noting that some commentators consider the large US stocks are inside an AI bubble that will eventually pop.
    And remember, past performance is not an indicator of future returns. While the following are the largest AI-focused companies stateside, Apple and several others are excluded because analysts disagree on whether they qualify as AI companies.
    Best AI stocks to watch
    Microsoft (NASDAQ: MSFT)
    Microsoft is the original global computing power, so it makes sense that the US behemoth tops the list of the best AI stocks to watch. The company already had a strong relationship with OpenAI prior to the ChatGPT launch and has invested $13 billion into the company since 2019.
    This remains a symbiotic relationship — Microsoft is allowing OpenAI access to its cloud centres to increase ChatGPT’s computing power, while native search engine Bing has incorporated the chatbot into its functions in an attempt to steal Google’s overwhelmingly dominant market share.
    With OpenAI still reportedly planning a $86 billion IPO after the return of CEO Sam Altman, Microsoft could also soon see a direct return on its investment.
    In Q1 results, revenue rose by 13% to $56.5 billion. CEO Satya Nadella enthused that ‘with copilots, we are making the age of AI real for people and businesses everywhere. We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers.’
    Market Capitalisation: $2.77 trillion
    Alphabet (NASDAQ: GOOGL)
    Google parent Alphabet may control 84% of the global search market share — but Yahoo was once king of search too. While Alphabet laid off thousands of employees in 2023, it’s launched its own rival chatbot, Bard.
    Bard runs on Google’s LaMDA programming, which has been in development since 2021. While there have been accusations of rushing Bard out to compete with ChatGPT, the titan should soon smooth out the issues.
    It’s worth noting that AI is already used across many of Google’s current functions. And it’s got at least two more AI-focused projects; its coding-focused Generative Language API, and DeepMind which it acquired in 2014.
    In Q3 results, CEO Sundar Pichai noted the ‘product momentum this quarter, with AI-driven innovations across Search, YouTube, Cloud, our Pixel devices and more.’ Revenue increased by 11% year-over-year to $77 billion.
    Nvidia (NASDAQ: NVDA)
    Nvidia is well-known as one of the world’s most valuable chipmakers, used in electronics ranging from smartphones, to cars, to high-end computing. Nvidia shares have risen by 235% year-to-date to $480, leaving the company with a sky-high price-to-equity ratio of 63 — and yet recent quarterly earnings saw yet another beat.
    And Nvidia’s most advanced deep learning chips might mean that the NASDAQ company is still undervalued. They’re already in use at clients such as Alphabet and Facebook owner Meta to power both internal and user facing AI applications.
    As AI becomes ever more mainstream, demand for these chips is surging, and importantly, there is a high economic barrier to entry — Nvidia has a wide economic moat surrounding its market position as the ‘bricks and mortar’ AI choice. Indeed, its chips are so advanced that they are subject to export controls in some instances from the US.
    Q3 results saw Nvidia’s revenue rise by a whopping 206% year-over-year and 34% quarter-on-quarter to $18.12 billion — with CEO Jensen Huang nothing that ‘NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.’
    Market Capitalisation: $1.24 trillion
    Meta Platforms (NASDAQ: META)
    Meta Platforms, owner of Facebook, WhatsApp and Instagram, has enjoyed an excellent resurgence in 2023 — rising by 176% year-to-date to come close to its all-time high.
    This ‘family of apps’ saw monthly active users rise by 7% year-over-year to 3.96 billion people during Q3, representing more than 50% of the world’s population. The tech titan has strongly benefitted from CEO Mark Zuckerberg’s ‘year of efficiency,’ with headcount decreasing by 24% over the past year to 66,185 people on 30 September 2023.
    For context, Meta has been hit by a wave of headwinds; rising rates, falling advertising spending, TikTok competition, and Apple’s 2021 operating system update — alongside huge spending on the Metaverse which has yet to translate into profits. And for balance, the company still faces lawsuits alleging its products are both addictive and harmful to children. Further, virtual reality remains a niche market despite the heavy spending on the sector.
    In Q3 results, Meta saw revenue rise by an impressive 23% year-over-year to $34.15 billion, while costs and expenses fell by 7% to $20.4 billion.
    Market Capitalisation: $886 billion
    Tesla (NASDAQ: TSLA)
    Tesla is the original EV trailblazer, and despite the legal and media troubles of CEO Elon Musk, its advancements in artificial intelligence could see the auto company rise once again to the giddy highs of late 2021.
    Indeed, its share price has already recovered by 133% year-to-date as it eyes possible expansions in India and Europe — though the recent catalyst is the long-awaited Cybertruck launch, which could drive significant further growth through 2024.
    Fully autonomous driving is the long-term goal, with the company planning to launch a robot taxi service soon. It’s also developing Optimus — a humanoid robot which Musk thinks could become more valuable than Tesla’s auto operations in time. However, economic slowdown in China could cause short-term profitability issues in 2024.
    Market Capitalisation: $801 billion
    Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.
    *Based on revenue excluding FX (published financial statements, October 2021).

        This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  11. MongiIG

    Community Survey Questions

    By MongiIG,


    Community Survey Questions
    Hello IG Community,
    At IG, we are working to improve investing and trading content for you. We would really like to know what you feel about investing and trading content. Please take and complete this 10-minute survey and feel free to provide honest feedback or suggestions and write to us with a comment on this blog why you picked your multiple choices for each question and why not the other choices. Your responses will help us improve our investing and trading content. Your feedback will be collected and only used for this research. 
     
     

    Thank you very much for your participation and sharing your valuable & useful feedback. Here at IG we want to make sure your suggestions or feedback help shape our direction and future.
    We would love to hear from you!
     
    All the best - MongiIG

     
  12. MongiIG
    NFP and Forex Trading: MAIN TALKING POINTS
    Non-Farm Payrolls (NFP) releases create volatility in the forex market. NFP measures net changes in employment jobs. Forex traders use an economic calendar to prepare for NFP releases.
     
    What is the NFP?
    The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.

    NFP releases generally cause large movements in the forex market. The NFP data is normally released on the first Friday of every month at 8:30 AM ET. This article will explain the role NFPs play in economics and how to apply NFP release data to a forex trading strategy.
    HOW DOES THE NFP AFFECT FOREX?
    NFP data is important because it is released monthly, making it a very good indicator of the current state of the economy. The data is released by the Bureau of Labor Statistics and the next release can be found on an economic calendar.
    Employment is a very important indicator to the Federal Reserve Bank. When unemployment is high, policy makers tend to have an expansionary monetary policy (stimulatory, with low interest rates). The goal of an expansionary monetary policy is to increase economic output and increase employment.
    So, if the unemployment rate is higher than usual, the economy is thought to be running below its potential and policy makers will try to stimulate it. A stimulatory monetary policy entails lower interest rates and reduces demand for the Dollar (money flows out of a low yielding currency). To learn exactly how this works, see our article on how interest rates effect forex.
    The chart below shows how volatile forex can be after an NFP release. The expected NFP results for March 8, 2019 were 180k (job additions), the actual result disappointed with only 20k jobs being added. As a result, the Dollar Index (DXY) depreciated in value and volatility increased.

    Forex traders must be wary of data releases like the NFP. Traders could get stopped-out due to the sudden increase in volatility. When volatility increases, spreads do too, and increased spreads can lead to margin calls.
    WHICH CURRENCY PAIRS ARE MOST AFFECTED BY NFP
    The NFP data is an indicator of American employment, so your currency pairs that include the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and others) are most affected by the data release.
    Other currency pairs also display an increase in volatility when the NFP releases, and traders must be aware of this as well, because they may get stopped out. The chart below shows the CAD/JPY during the NFP data release. As you can see, the increase in volatility could stop a trader out of their position even though they are not trading a currency pair linked to the US Dollar.

    NON-FARM PAYROLL RELEASE DATES
    The Bureau of Labor statistics normally releases the NFP data on the first Friday of each month at 8:30 AM ET. The release dates can be found on the Bureau of Labor Statistic’s website.
    Due to the volatile nature of the NFP release, we recommend using a pull-back strategy rather than a breakout strategy. Using a pullback strategy, traders should wait for the currency pair to retrace before entering a trade.
    Using the same example as above (NFP results 20k vs 180k expected) we expect the US Dollar to depreciate. In the example below, we use the EUR/USD. Because the NFP data came out worse than expected, we forecast the EUR/USD to appreciate.

    TRADING THE NFP DATA RELEASES: TOP TIPS & FURTHER READING
    Here are a few tips to remember when using NFP data releases to inform your forex trading:
    NFP data is released on the first Friday of every month. The NFP data release is accompanied with increased volatility and widening spreads. Currency pairs not related to the US Dollar could also see increased volatility and widening spreads. Trading the NFP data release can be dangerous due to the increase in volatility and possible widening of spreads. To combat this, and to avoid getting stopped-out, we recommend using the appropriate leverage, or no leverage at all. Other important data releases to watch:
    While the NFP generally moves the market, data like CPI (inflation), Fed funds rates, and GDP growth are important data releases too.
    If you want to know more about trading the news and data releases, see our trading the news beginner guide. We also suggest reading our traits of successful traders guide to avoid the number one mistake traders make when trading forex.
     
    Written by David Bradfield, Markets Writer, 5th August 2021. DailyFX
  13. MongiIG
    GBP/USD PRICE, CHART, AND ANALYSIS:
    UK retail sales data a positive for the British Pound. EU-UK talks seem to be progressing. US dollar strength holding back GBP/USD. Keep up to date with all market-moving data releases and events by using the DailyFX Calendar
    The latest UK retail sales data for October beat market expectations, boosted primarily by higher sales in non-food stores, according to the Office for National Statistics (ONS). Non-food stores sales rose by 4.2%, while automotive fuel sales volumes fell by 6.4% following strong growth in September.

    In a recent interview with the BBC, Irish Prime Minister Micheal Martin said the ‘mood music’ in EU-UK talks over the Northern Ireland Protocol had changed and urged both sides to ‘knuckle down and get it resolved’. The EU recently offered a comprehensive package of measures to ease checks on goods arriving into Northern Ireland from the UK with talks expected to continue in the hope of bringing both sides closer together. While the recent shift is seen as a positive after weeks of bitter talks, the UK’s lead negotiator Lord Frost remains adamant that triggering Article 16 is still a live option if talks break down.
    Article 16: Why Triggering it Risks an All Out UK-EU Trade War
    The US dollar picked up a healthy bid at the start of European trade, weighing on GBP/USD after the pair’s positive start post-retail sales data. Cable touched 1.3500 earlier before US dollar strength pushed the pair back down to 1.3425, erasing most of Wednesday’s gains. The ongoing pattern of lower highs and lower lows on the daily chart suggests that the pair may eventually re-test the recent 1.3353 low print if USD strength continues.
    GBP/USD DAILY PRICE CHART NOVEMBER 19, 2021

    Retail trader data show 69.44% of traders are net-long with the ratio of traders long to short at 2.27 to 1. The number of traders net-long is 1.17% lower than yesterday and 17.84% lower from last week, while the number of traders net-short is 0.62% lower than yesterday and 23.03% higher from last week.
    We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBP/USD price trend may soon reverse higher despite the fact traders remain net-long.
    {{SENTIMENT|GBP/USD}} While Sterling moves lower against the US dollar, it continues to move higher against the Euro. The single currency continues to weaken with any EU interest rate hike pushed back until at least 2023, while the sharp uptick in covid cases across Europe is seeing new lockdowns introduced. Austria has announced a full national lockdown from November 22, while Germany recently placed tighter restrictions on unvaccinated people and refused to rule out a new national lockdown if cases continue to soar.
    EURGBP is currently changing hands just above the 0.8400 level and looks set to eventually re-test Wednesday’s 21-month low at 0.83835. The CCI indicator shows the pair as oversold, while all three simple moving averages remain in a negative set-up.
    EUR/GBP DAILY PRICE CHART NOVEMBER 19, 2021

    What is your view on GBP/USD and EUR/GBP – bullish or bearish?
     
    By Nick Cawley, Strategist, 19th November 2021. DailyFX
  14. MongiIG

    The New York Session: Forex Trading Tips

    By MongiIG,


    Analyst piece
    - Reviewed by James Stanley, Nov. 24, 2021
    The New York forex session is one of the most liquid forex trading sessions. When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day.
    WHAT TIME DOES THE NEW YORK FOREX SESSION OPEN?
    The New York forex session opens at 8:00 AM ET and closes at 5:00 PM ET. The ‘overlap’ occurs when the US Forex session overlaps with the London forex market session. The London Forex market session opens at 3:00 AM ET and closes at 12:00 PM ET, so the overlap occurs between 8:00 AM ET and 12:00 PM ET.
    During this overlap, the US session could trade very much like the London session.

    The beginning of the New York session is normally more volatile than later in the day. There are different methods traders can use to trade differing levels of volatility.
    NEW YORK BREAKOUT STRATEGY: TRADING THE ‘OVERLAP’
    The ‘overlap’ is when the London and US forex sessions literally overlap each other. These are the two largest market centers in the world, and during this four-hour period – large and fast moves can be seen during the overlap as a large amount of liquidity enters the market.
    The image below shows how during the overlap (between the green lines) of the two biggest markets, average hourly moves in the EUR/USD reach highs.

    To trade the overlap, traders can use a break-out strategy which takes advantage of the increased volatility seen during the overlap.
    An example of the New York breakout strategy, using the EUR/USD, is shown below:
    The EUR/USD formed a triangle-pattern which, during the overlap, the price of the EUR/USD broke out of. Once a trader has properly addressed risk management, the entry into the trade can be staged with any relevant mechanism of support and/or resistance.

    TRADING THE LATER PART OF THE NEW YORK SESSION
    As London closes for the day, volatility will have a tendency to decrease drastically. From the same chart we looked at above, that showed the average hourly moves by hour of day in EUR/USD, we can see a markedly different tone in the average hourly move for the later portion of the US forex trading session:

    As you can see, the later part of the New York session displays less volatility. Since the average hourly moves are smaller in the later stages of the New York session traders could use a different trading strategy, like a range trading strategy.
    Using a range trading strategy trader take advantage of support and resistance levels. The chart below shows an example of a range trading strategy. When the price moves the upper bound (red line) traders will look to short the currency pair. When the price moves the lower bound (the green line) traders will look to buy the currency pair.
    The logic behind using a range trading strategy is that as the volatility lowers, the levels of support and resistance may be harder to break and will therefore more likely hold- benefiting the range bound trading strategy.

    BEST FX PAIRS TO TRADE DURING THE NEW YORK SESSION
    The best forex pairs to trade during the New York session would be your majors, like EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, and USD/CHF. These pairs will be the most liquid during the US session, especially the EUR/USD during the overlap.
    Each forex trading session has unique characteristics, the London forex trading session follows the New York session which is then followed by the Asia trading session.
    The liquidity will lead to reduced spreads and therefore, lower trading costs. During the overlap, the combination of increased volatility and increased liquidity will be beneficial to most forex traders.
    TAKE YOUR FOREX TRADING TO THE NEXT LEVEL WITH OUR GUIDES AND RESOURCES
    If you’re new to forex trading, our New to Forex trading guide covers all the basics to help you on your journey. We also recommend reading our guide to the traits of successful traders, which comprises the data of over 30 million live trades analyzed by our research team.
     
    By David Bradfield, Markets Writer, 28th December 2021. DailyFX
  15. MongiIG
    We're happy to announce that both Super Trend and Volume Weighted Average Price Indicators are now available to use on the web platform and mobile app. 

     
    SuperTrend
    The SuperTrend indicator works on all timeframes and all instrument types. It is the ideal tool to follow market trends, and can be used to calculate potential buy and sell indicators, or stop and limit levels.
    Learn more
    The SuperTrend indicator changes colour to indicate a buy or sell signal. If the SuperTrend moves below the closing price, the indicator will change to green, signalling an entry point to buy. If the SuperTrend moves above the closing price, the SuperTrend moves above the closing price, the indicator will change to red, signalling an exit point to sell.
     
     

     


     
     
    Volume Weighted Average Price
    The volume weighted average price is an indicator used to provide the average price at which a market has traded at throughout the day, using both price and volume in the calculation. It can help to give a view on the value of a market and also its trend.
    Learn more
    The indicator calculates its values over the period of a day; because of that, it is not available on Daily interval and above. Because the calculation involves High and Low prices, the indicator is not available on Tick interval. 
     

     


     
    All the best - MongiIG
  16. MongiIG
    TRADING WITH THE HARAMI CANDLE: MAIN TALKING POINTS
    The Harami candlestick pattern is frequently used in forex trading to identify trend reversals or extensions. Technical traders respect the indications produced by the Harami candle which makes this pattern invaluable in a trader’s arsenal. This article will cover the following principal topics outlining the Harami candlestick pattern in forex:
    What is a Harami candlestick? Uses of the Harami candle in forex trading Harami pattern trading strategies Read more on trading with Harami candlesticks WHAT IS A HARAMI CANDLESTICK?
    The Harami candlestick is a Japanese candlestick pattern that comprises of two candles which indicates a potential reversal or continuation in the market. The word ‘Harami’ is derived from the Japanese word for ‘pregnant’ which is representative of the Harami candlestick pattern. The Harami candlestick pattern can signal both bullish and bearish indications as seen below:

    Bullish Harami:
    Established downtrend Leading larger bearish (red) candle Trailing smaller bullish (green) candle - price gaps up after bearish candle and is contained within the open and close of the leading bearish candle Bearish Harami:
    Established uptrend Leading larger bullish (green) candle Trailing smaller bearish (red) candle - price gaps down after bullish candle and is contained within the open and close of the leading bullish candle As indicated in the images above, the first candle (pregnant candle) is a large candle continuing the immediate trend and the trailing candle is a small candle protruding like a pregnant woman. It is important to note that technically the second candle will gap inside the first candle. However, gapping on forex charts is rare due to the 24-hour nature of forex trading. Therefore, the technically correct version of the Harami is rare in the forex market as gaps are minimal and the second candle often becomes a small inside bar of the first.
    The confirming candle is used as a tool to tell traders if the smaller trailing gives life to a reversal or follows the trend with the starting candle. The popularity of the Harami pattern and other candlestick patterns is due to the ability to catch a reversal at the most opportune time with tight risk. This will allow traders to have very favorable risk-reward ratios.
    USES OF THE HARAMI CANDLE IN FOREX TRADING
    Advantages of the Harami pattern:
    Easy to identify Opportunity to capitalise on large movements with high risk-reward ratios Widely used in forex trading Limitations of the Harami pattern:
    Requires confirmation before execution TRADING WITH THE HARAMI CANDLE PATTERN
    The Harami candlestick pattern forms both bullish and bearish signals depending on the validating candle. The forex charts below exhibit both types of Harami patterns and how they feature within the forex market.
    In both instances the candle labelled ‘3’ designates the confirmation candle which approves the pattern. With most candlestick patterns, traders can utilise other technical indicators to support the pattern.
    Bullish Harami:

    The Bullish Harami above represents a continuation of the current upward trend for the EUR/USD pair. This is important to remember because not all Harami patterns indicate reversals.
    Bearish Harami:

    The Bearish Harami above displays how a reversal pattern is formed using the Harami candlestick pattern with the reversal occurring at the medium term high. Reversal signals are often stronger at significant price levels (support, resistance, highs and lows).
    When traders interpret the Harami candles, context is vitally important. Analysing the previous charting pattern (trends) as well as price action will give the trader greater insight and ability to forecast the implications of the Harami pattern. Without context, the Harami is just three candles which are practically insignificant.
    READ MORE ON TRADING WITH HARAMI CANDLESTICKS
    Explore the Harami candle in relation to reversal patterns to identify possible trading opportunities. Reading a candlestick chart is an important foundation to have before analysing more complex techniques such as Harami and Doji candlesticks. When reading candlestick charts, be mindful of the time frames of trading, classic price patterns and price action.  
    By Warren Venketas, Analyst, 24th November 2021. DailyFX
  17. MongiIG
    Gold looks at risk of a protracted period of decline, as rising yields highlight the potential for long-term weakness for the precious metal.
    Source: Bloomberg  Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 29 September 2021. IG Gold at risk if yields continue to rise
    US 10-year treasury yields have kick-started after a prolongued period lull that saw yields fall back from the peak in March.
    The Federal Reserve (Fed) appears ready to start tapering in the coming months, and the premise of 2022 rate hikes brings expectations of further upside in yields as we go forward.
    The chart below highlights why the trajectory of yields is crucial for any gold trader. Invariably, we have seen yields track a downward path over the long-term, which has also helped bring about a long-term uptrend for gold.
    The chart below highlights exactly that, with the ongoing downtrend in 10-year yields bringing strength for gold (inverted on the chart).
    Source: TradingView Rate hikes often bring higher yields
    Nonetheless, yields often rise during periods of monetary tightening. The image below points towards this trend, with yields starting to rise often slightly ahead of those periods of monetary tightening.
    Meanwhile, that rise in yields also seems to fall off as the rise in rates draws to an end.
    Source: TradingView  
    With both those factors in mind, we can draw a conclusion that in the event the Fed continues to move towards monetary tightening, yields will likely rise and gold will suffer.
    The long-term downtrend for yields does still hold, meaning that any such downside for gold could be another long-term retracement within its uptrend. Nonetheless, it does highlight the risks ahead for precious metals.
    Gold technical analysis
    Looking at the gold chart in isolation, we can see that the monthly chart signals how we could be within another prolongued retracement period alike to 2012-2015.
    Notably, it was in 2012 that the US 'taper tantrum' occurred. Thus while it took many years beyond 2012 for the Fed to raise rates, tapering of asset purchases can also play a role in damaging sentiment around gold.
    Crucially, this current phase does look strikingly similar to the beginning of the decline in 2013. That highlights just how important the $1677 support level could become.
    Source: ProRealTime  
    From a daily perspective, the recent rally failed to break through $1834 resistance. Instead we have seen price reverse lower over the course of this week.
    This raises the possibility of us continuing the bearish trend seen in recent months. When yields start to ease back, gold is likely to find support. However, as long as the Fed remains steadfast over its monetary tightening plans, gold is likely to suffer.
    Source: ProRealTime
  18. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th September 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.
     

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
     
     
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    RTY
    ACRE US
    29/09/2021
    Special Div
    0.02
    RTY
    PJT US
    01/10/2021
    Special Div
    3
    RTY
    LAUR US
    05/10/2021
    Special Div
    7.01
    SPX
    WY US
    04/10/2021
    Special Div
    0.5
     
     
     
    How do dividend adjustments work? 
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  19. MongiIG

    What are IG’s Christmas trading hours?

    By MongiIG,


    Festive Period Trading Hours
    What are IG’s Christmas trading hours?
      During the festive period there will be some changes to our normal opening hours*. All times listed are in AEDT.
    Thursday 23 December Normal trading Friday 24 December US index futures close at 9am, along with most other out-of hours markets. US shares closed, early close in some equity markets. Early close on Australian shares(14:00).
    Saturday 25 December FX & Crypto closes at 9am
    Sunday 26 December Weekend Trading, including cryptos (19.00 Open) Monday 27 December AU shares closed, most other markets regular hours Tuesday 28 December AU shares closed, most other markets regular hours Wednesday 29 December Normal trading Thursday 30 December Normal trading Friday 31 December Early close on Australian shares(14:00). Saturday 1 January FX & Crypto and out-of-hours markets close at 9am.
    Sunday 2 January Weekend Trading, including cryptos (19.00 Open) Monday 3 January AU shares closed, most other markets regular hours Tuesday 4 January Normal trading  
    The following tables list the opening hours of our most popular markets over the coming month:
      Indices Market Friday 24 Dec Monday 27 Dec Tuesday 28 Dec Friday 31 Dec Monday 3 Jan FTSE® 100 Futures close 11.50pm
    Closed
    Quoted out-of-hours
    Closed
    Quoted out-of-hours
    Futures close 11.50pm
    Quoted out-of-hours 11.50pm-9am Saturday morning
    Closed
    Wall Street
    US 500
    US Tech 100
    US Russell 2000
    FANG index Closed Normal hours Normal hours
    Normal hours Normal hours Germany 40 Closed
    Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning
    Normal hours France 40 Futures close 00.05am Saturday morning
    Normal hours Normal hours
    Futures close 00.05am, quoted out-of-hours 00.05am-9am(Saturday morning) Normal hours EU Stocks 50 Closed
    Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning Normal hours Italy 40 Closed Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning
    Normal hours Netherlands 25 Futures close 00.05am Saturday morning Normal hours Normal hours
    Futures close 00.05am, quoted out-of-hours 00.05am-9am(Saturday morning) Normal hours Spain 35 Closed
    Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning Normal hours Sweden 30 Closed
     
    Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning
    Normal hours Switzerland Blue Chip Closed
    Normal hours Normal hours
    Closed,quoted out-of-hours until 9am Saturday morning
    Normal hours Japan 225 Futures close 8.15am(Saturday morning) Normal hours Normal hours
    Normal hours Normal hours Hong Kong HS50
    China H-Shares Early close 3pm
    Closed, quoted out-of-hours Normal hours
    Early close 3pm
    Quoted out-of-hours 3pm-9am Saturday morning
    Normal hours Australia 200 Early close 2:10pm
     
    Closed, quoted out-of-hours Closed, quoted out-of-hours
    Early close 2.30pm
    Quoted out-of-hours 2.30pm-9am Saturday morning
    Closed Singapore Blue Chip Futures close 8.15am Saturday morning
    Normal hours Normal hours
    Normal hours
    Normal hours South Africa 40 Normal hours
    Closed,quoted out-of-hours Normal hours
    Normal hours
    Normal hours Volatility Index Closed Normal hours Normal hours
    Normal hours Normal hours  
     
    Shares Market Friday 24 Dec Monday 27 Dec Tuesday 28 Dec Friday 31 Dec Monday 3 Jan US shares Closed
    Open Open
    Open
    Open UK shares Early close at 11.30pm Closed Closed Early close at 11.30pm Closed French shares Early close at 00.05am Saturday morning Open Open Early close at 00.05am Saturday morning Open German shares Closed Open Open Closed Open Spanish shares Closed Open Open Closed Open AU shares Early close at 2.10pm Closed Closed Early close at 2.10pm Closed NZ shares Early close at 11am Closed Closed Early close at 11am Closed HK shares Early close at 3.10pm Closed Open Early close at 3.10pm Open JP shares Open Open Open Closed Closed SGX shares Early close at 3.16pm Open Open Early close at 3.16pm Open  
    Commodities Market Friday 24 Dec Monday 27 Dec Tuesday 28 Dec Friday 31 Dec Monday 3 Jan US energies Closed Normal Close Times Normal Close Times Normal Close Times Normal Close Times UK energies Early close 00:00am Saturday morning Normal Close Times (except for Emissions which are closed) Normal Close Times (except for Emissions which are closed) Early close 7am(Saturday morning) Normal Close Times (except for Emissions which are closed) US metals Closed Normal Close Times Normal Close Times Normal Close Times
    Normal Close Times US CBOT Commodities Closed Normal Close Times Normal Close Times Normal Close Times Normal Close Times US NYBOT commodities Closed Sugar, Coffee, Cocoa opens late at 11.30pm Normal Close Times Normal Close Times Sugar, Coffee, Cocoa opens late at 11.30pm UK Commodities Closed Closed Normal Close Times Normal Close Times Closed  
    Interest rates Market Friday 24 Dec Monday 27 Dec Tuesday 28 Dec Friday 31 Dec Monday 3 Jan US rates Closed Normal hours Normal hours Normal hours Normal hours UK rates Early close 11.15pm Closed Closed Early close 11.15pm Closed European rates Closed Normal hours Normal hours Closed Normal hours  
    We have tried to make this information as accurate as possible, but it is intended for guidance only and is subject to change. Please contact our Helpdesk on 0800 409 6789 for the latest information. What are IG's Christmas trading hours market details.
     
     

  20. MongiIG
    Candlestick patterns are important tools in technical trading. Understanding them allows traders to interpret possible market trends and form decisions from those inferences. There are various types of candlestick patterns which can signal bullish or bearish movements. This article will briefly touch upon what candlestick patterns are and introduce the top 10 formations all traders should know to trade the markets with ease.
    Try out our interactive trading quiz on forex patterns!
    WHAT ARE CANDLESTICK PATTERNS?
    A candlestick is a single bar which represents the price movement of a particular asset for a specific time period. The information it displays includes the open, high, low and close for that time period.

    Candlestick patterns take into account one or more candlesticks to assist technical traders in developing inferences about future movements and price patterns of the underlying asset. These are displayed graphically on a chart, which is utilized for market analysis. Our guide to reading candlestick charts is a great place to start to learn how to interpret candlesticks for trading.
    CANDLESTICK PATTERNS CAN BE BULLISH OR BEARISH
    In order to recognize and apply the most commonly used candlestick patterns to a trading strategy, traders need to understand how the inclination of these patterns can affect the market direction (trend). The tables below summarize the two main categories of price movement that candlesticks can indicate. Many of these patterns are featured in our top 10 list below.
    Bullish Candlestick Patterns:
    CANDLESTICK PATTERN
    DIRECTION
    Morning Star
    Bullish (Reversal)
    Bullish Engulfing
    Bullish (Reversal)
    Doji
    Bullish/Bearish (Indecision)
    Hammer
    Bullish (Reversal)
    Bullish Harami
    Bullish (Reversal)
    Piercing Pattern
    Bullish (Reversal)
    Inside Bars
    Bullish (Continuation)
    Long Wicks
    Bullish/Bearish (Reversal)
    Bearish Candlestick Patterns:
    CANDLESTICK PATTERN
    DIRECTION
    Evening Star
    Bearish (Reversal)
    Bearish Engulfing
    Bearish (Reversal)
    Doji
    Bearish/Bullish (Indecision)
    Bearish Harami
    Bearish (Reversal)
    Dark Cloud Cover
    Bearish (Reversal)
    Inside Bars
    Bearish/Bullish (Continuation)
    Long Wicks
    Bearish/Bullish (Reversal)
    Shooting Star
    Bearish (Reversal)
    TOP 10 CANDLESTICK PATTERNS TRADERS SHOULD KNOW
    1 - EVENING STAR AND MORNING STAR
    The evening and morning star candlestick patterns occur at the end of upwards/downward trends respectively and tend to indicate reversal patterns. The names come from the star shaped formation of the arrangement. As you can see from the image below, the first candlestick is in the direction of the trend, followed by a bullish or bearish candle with a small body. The third candlestick is seen in the direction of the reversal, ideally closing passed the halfway point of the first candlestick. Trading this candlestick pattern will require a confirmation candle in the direction of the respective reversal – for example, traders will look for a bearish candle after the evening star.
    2 - BULLISH & BEARISH ENGULFING
    A bullish or bearish engulfing candlestick pattern may indicate reversal patterns. A bullish engulfing candlestick formation shows bulls outweigh bears. As the pattern below shows, the green body (bulls) covers completely the first candlestick (bears). A bearish engulfing candlestick pattern is small green (or bullish) candle followed by a larger red (bearish) candle immersing the small green candle.
    3 – DOJI
    The Doji candlestick chart pattern is associated with indecision in the market of the underlying asset. This could mean potential reversal of the current trend or consolidation. This pattern can occur at the top of an uptrend, bottom of a downtrend, or in the middle of a trend. The candlestick itself has an extremely small body centered between a long upper and lower wick.
    4 – HAMMER
    The Hammer candle is viewed as a bullish reversal usually occurring at the bottom of a downward trend. This candle formation includes a small body whereby the open, high, low and close are roughly the same. There is a long lower wick beneath the body which should be more than twice the length of the candle body. The body may be bullish or bearish, however bullish is considered more favorable.
    5 – BULLISH & BEARISH HARAMI
    A Bullish or Bearish Harami may indicate reversal patterns. The word “Harami” means “pregnant” in Japanese, and the name has been given to this candlestick pattern because it resembles a pregnant woman. The second candle in the pattern must be contained within the body of the first candle as seen in the images below. This holds true for both bullish and bearish Harami’s. A downtrend precedes a bullish Harami and an uptrend precedes that of a bearish Harami.
    6 – DARK CLOUD COVER
    The Dark Cloud Cover pattern is seen as a bearish reversal pattern. This candlestick pattern must occur during an uptrend. As seen in the image below, the bullish candle is followed by a bearish candle. This bearish candle must confirm certain criteria to validate the Dark Cloud Cover pattern: 1. The opening price must by higher than the previous days close.
    2. The closing price must close below the midpoint of the previous bullish candle.
    The Dark Cloud Cover pattern looks similar to that of the Bearish Engulfing pattern. The difference between the two relates to the second candlestick. Bearish Engulfing pattern has the second candlestick opening above the close of the first, whilst the Dark Cloud Cover opens above the high of the first candle and closes below the midpoint of the first candlestick body.
    7 – PIERCING PATTERN
    The Piercing Pattern is viewed as a bullish candlestick reversal pattern, at the end of a downtrend or during a pullback within an uptrend, or at the support. There are two components of a Piercing Pattern formation: 1. Bearish candle
    2. Bullish candle
    A Piercing Pattern occurs when a bullish candle (second) closes above the middle of bearish candle (first) in a downward trending market. The open price of the second candle should gap down at market open and ensue by closing above the mid-point of the previous candle as indicated below. Both the Piercing and Dark Cloud Cover patterns have similar characteristics. The difference is that the piercing line is a bullish reversal pattern as mentioned above, whilst the Dark Cloud Cover pattern is a bearish reversal pattern.
    8 – INSIDE BARS
    The Inside Bar pattern is utilized in trending markets whereby the high and low of the Inside bar is within the parameters of the previous candle or “mother bar”. Inside Bars are traded within the direction of the trend – if the market is in a downtrend, the trader would look to continue with a short position with the presence of an Inside Bar. The same principal is applied in an uptrend. Trading in the direction of the trend is not always a given as key levels of support/resistance can indicate a reversal. Classically, the entry points for traders is positioned above or below the high or low of the mother bar depending on the direction of the trade. An inside bar is also similar to a bullish or a bearish harami candlestick pattern. The main difference being that with an inside bar, the highs and lows are considered while the real body is ignored.
    9 – LONG WICKS
    Long Wicks candlestick patterns often indicate a reversal in the trend. Long Wicks occur when prices are tested and then rejected. The wick indicates rejected prices. Identifying the trend is important to interpret the significance of the Long Wick. Identifying key levels and price action is often used in conjunction with Long Wick patterns.
    10 – SHOOTING STAR
    A Shooting Staris a bearish candle with a long upper wick, little or no lower wick and a small real body near the day's low. It comes after an uptrend, and potentially indicates a trend reversal to the downside. The distance between the high and opening price of the candle must be more than twice as large as the Shooting Star's body. The distance between the lowest price for the day and the closing price must be very small or nonexistent.
    FURTHER TIPS TO TRADE USING CANDLESTICK PATTERNS
    Understanding the basics of candlestick charts is essential before using more complex candlestick patterns. Our guide on 'How to read a candlestick chart' provides great insight into these fundamentals. For more information on using candlestick charts to trade forex, check our Trading Candlesticks article. Tune in to our Live Webinars for live access to our DailyFX experts discussing trading strategies, tips, news and forecasts on many different markets.  
    By Warren Venketas, Analyst, 27th October 2021. DailyFX
  21. MongiIG
    - Reviewed by James Stanley, Nov. 24, 2021
    The video above focuses on the main aspects of the trading checklist and this article seeks to unpack further aspects of the trading checklist in greater detail.
    WHY YOU SHOULD USE A TRADING CHECKLIST
    Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Maintaining a trading checklist presents traders with a list of questions that traders need to answer before executing trades.
    It is important not to confuse a trading plan with the trading checklist. The trading plan deals with the big picture, for example, the market you are trading and the analytical approach you choose to follow. The trading checklist focuses on each individual trade and the conditions that must be met before the trade can be made.
    YOUR TRADING CHECKLIST
    Before entering a trade, ask yourself the following questions:
    Is the market trending or ranging? Is there a significant level of support or resistance nearby? Is the trade confirmed by an indicator? What is the risk to reward ratio? How much capital am I risking? Are there any significant economic releases that can impact the trade? Am I following the trading plan? 1) IS THE MARKET TRENDING OR RANGING?
    Trending markets
    Experienced traders know that finding a strong trend and trading in the trend’s direction, has the potential to lead to higher probability trades.
    There is a well-known saying that trending markets have the ability to bail traders out of bad entries. As can be seen below, even if a trader entered a short trade after the trend was well established, the trend would continue to provide more pips to the downside than to the upside.
    Traders need to ask themselves if the market is exhibiting signs of a strong trend and whether ‘trend trading’ forms part of the trading plan.

    Ranging markets
    Ranging markets tend to see price bounce between support and resistance to trade within a channel. Certain markets, like the Asian trading session, tend to trade in ranges. Oscillating indicators (RSI, CCI and Stochastic) can be of great use to traders that focus on range trading.

    2) IS THERE A SIGNIFICANT LEVEL OF SUPPORT OR RESISTANCE NEARBY?
    Price action tends to respect certain price levels for a number of reasons and being able to identify these levels is key. Traders do not want to be holding a short position after price has dropped to the key level of support, only to bounce back higher.

    The same applies when price approaches a key level of resistance and typically drops lower shortly after. Trend traders typically look for sustained breaks of these levels as an indication that the market may start to trend. Range traders will on the other hand, look for price to bounce between support and resistance for prolonged periods.
    3) IS THE TRADE CONFIRMED BY AN INDICATOR?
    Indicators assist traders in confirming high probability trades. Depending on the trading plan and strategy, traders will have one or two indicators that complement the trading strategy. Do not fall into the trap of over-complicating the analysis by adding multiple indicators to a single chart. Keep the analysis clean and simple and easy to view at a glance.
    4) WHAT IS THE RISK TO REWARD RATIO?
    The risk to reward ratio is the ratio of the number of pips that traders will risk in the hopes of reaching the target. According to our Traits of Successful Traders research, which analysed over 30 million live trades, traders with a positive risk to reward ratio were nearly three times more likely to be profitable than those who do not. For example, a 1:2 ratio means that a trader risks half of what he/she stands to gain if the trade works out. The image below further depicts this principle.

    5) HOW MUCH CAPITAL AM I RISKING?
    It is essential for traders to ask this question. Often traders blow up their accounts by leveraging the account to the maximum when chasing “sure things”. One way to avoid this is to limit the leverage used on all trades to ten to one, or less. Another helpful tip is to set stops on all trades and ensure that the aggregate amount risked is no more then 5% of the account balance.
    Before placing a trade, ask yourself, “how much capital should I use?”
    6) ARE THERE ANY SIGNIFICANT ECONOMIC RELEASES THAT CAN IMPACT THE TRADE?
    Sudden market news has the potential to invalidate the “perfect” trade. While it is almost impossible to anticipate things like, acts of terror, natural disasters or systemic failures in the financial markets, traders can plan for economic releases like NFP, CPI, PMI and GDP releases.
    Plan ahead by viewing our economic calendar which highlights major economic releases from the top trading nations
    7) AM I FOLLOWING THE TRADING PLAN?
    All of the above is of very little use if it does not tie in with the trading plan. Deviating from the trading plan will result in mixed results and only frustrate the trading process. Keep to the trading plan and do not place trades unless the trading checklist has been completed and confirms the trade may be executed.
    TRADING CHECKLISTS: A SUMMARY
    Having a trading checklist does not automatically mean all trades will become winning trades. It will however help traders to stick to the trading plan, trade with more consistency, and avoid impulsive or reckless trades. At DailyFX we have dedicated a podcast to the trading plan and how to create one. Document your trades and stay accountable with the help of a trading journal. By Richard Snow, Analyst, 19th December 2021. DailyFX

  22. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th February 2023. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video. 

    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    N/A
     
     
     
    How do dividend adjustments work?  
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  23. MongiIG

    Bouhmidi Bands Indicator

    By MongiIG,


    Product Update
    Introduction of the Bouhmidi Bands
    The bouhmidi bands ® were developed by Salah-Eddine Bouhmidi and are based on implied volatility. They calculate an expected daily bandwidth under the assumption of normally distributed returns.
    The bandwidth is based on 1σ or 2σ. This means that an underlying closes with a probability of 68% or 95% within the expected Bouhmidi bandwidth at the end of the day. Historical data over the past 20 years shows a strong robustness of the indicator.
     
    Bouhmidi Bands - volatility indicator
    Most known indicators such as Bollinger Bands or Keltner Channel focus only on historical volatility.  Bouhmidi bands follow a different approach, namely an indicator based on implied volatility.
    The Bouhmidi bands can be calculated across different asset classes.
    Bouhmidi-Bands for daily use are most visible in 1M – 15M– Chart on the ProRealTime trading platform.
    Two variables must be known for the calculation: 
        1. implied volatility via a volatility index - price data.
        2. underlying - price data.
     
    The benefits of using Bouhmidi Bands.
    The Bouhmidi bands can be used to identify and filter "invisible" resistance and support that cannot be detected with simple chart analysis.
    The Bouhmidi bands can be used for different trading approaches. For example, they are suitable for mean reversion and volatility breakouts.
    If you combine the Bouhmidi bands with e.g. Keltner channel or Bollinger bands , you have the historical and implied volatility in one view in your ProRealTime chart.
     
    Interpretation of the Bouhmidi bandwidth - Example DAX

     
    Calculation basis: DAX + VDAX-NEW. Expected bandwidth can be calculated for different time periods.  Historically, however, the daily bandwidth provides the statistically best results.  The bandwidth is given with the first and second standard deviation σ. With a probability of 68% and 95% the underlying value closes within the determined Bouhmidi bandwidth in the considered period.
    i.e. for Nov 16, 2020: with a probability of 68 %, the DAX closing price on Nov 16, 2020 will be between 13248,66 and 12904,78. With a probability of 95%, the DAX closing price on Nov 16, 2020 will be between 12420,60 and 12732,84.

     
     
     
    Which markets are tradable with Bouhmidi bands?
    Major Markets, for example:
    -DAX   with   VDAX-NEW  (Frankfurter Börse)
    -S&P 500   with   VIX   (CBOE)
    -Nasdaq   with   VXN   (CBOE)
    -Dow Jones   with   VXD   (CBOE)
    -Gold   with   GVZ  (CBOE)
    -WTI   with  OVX  (CBOE)
    -Apple   with   VXAPL  (CBOE)
    -Amazon   with  VXAZN   (CBOE)
    -Google    with  VXGOG  (CBOE)
    -BTC/USD
     

     

     
     

     

     
     

     

     
    Disclaimer: This does not constitute investment advice and does not have regard to the specific needs of any person who may use the indicator. No warranty is given as to the accuracy or completeness of the information and any person acting on it does so entirely at their own risk.
     
     
    All the best - MongiIG

  24. MongiIG

    ProRealTime Client Sentiment Indicator

    By MongiIG,


    Product Update
    How to use ProRealTime client sentiment indicator.

    Alongside technical and fundamental analysis, client sentiment data can be a useful additional tool for a trader, if they know how to read the changes in positioning.

    Client sentiment, which looks at the number of long and short trades on a particular market, is a useful tool in a trading strategy. It is often said that clients look to sell into rising markets and buy into falling ones. There is an element of truth to this, but it is also important to look at turning points in sentiment, when the number of long positions begins to rise or fall. When combined with price analysis, the foundation of all good trading, a useful picture can emerge.
     
    How to add the ProRealTime client sentiment indicator.
    1. Right click on chart and the select "Add indicator"

     
    2. Or select indicators bottom left corner of the chart.

     
    3. Then search for client sentiment indicator and select it to add.

     
    ProRealTime client sentiment indicator settings.
    1. Client sentiment settings for uptrend (green color/long positions) and downtrend (red color/short positions).

     
    2. Horizontal lines settings: sentiment indicators are numeric or graphic representations of how optimistic or pessimistic traders are about market conditions. This can refer to the percentage of trades that have taken a given position in a currency pair. For example, 70% of traders going long and 30% going short will simply mean 70% of traders are long on the currency pair.

     
    3. Color zones settings.

     
    4. Scale settings.

     
    5. Chart settings.

     
    6. Client sentiment indicator window panel.

     
    For more information visit the following link: ProRealTime
    Also share and comment down below on how you use client sentiment indicator in your trading strategy. 
     
    All the best - MongiIG

  25. MongiIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 3rd April 2023. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video. 

     
    Effective Date
    Bloomberg Code
    Dividend Amount
    Summary
    5/04/2023
    VOLVB SS
    7
    Special div
      How do dividend adjustments work?  
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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