September 16, 2014

Profitable Breakout Trade On The AUD/USD Pair - September 2014

I always say that if you are looking for a high probability forex trading system that is capable of generating some big profits and has a very high success rate, you should seriously consider trading price breakouts on the daily charts.

I don't take positions on the daily time frame that often, but every so often an opportunity comes along that's too good to turn down, and that was certainly true with the AUD/USD pair this month.

If you follow a number of forex traders on Twitter or Forex Factory, for example, you will know that a lot of traders, including myself, have been waiting for a breakout to occur on the AUD/USD pair because it had been trading in a very narrow trading range and hovering just above the EMA (200) for a number of months.

Well that's exactly what happened last week because the price finally broke below this trading range (indicated by the thick black lines in the chart below) and made a decisive move below the critical 200-day exponential moving average.

audusd16sept.png

I myself entered a short position after the daily candle closed last Tuesday at 0.9208 ( I would have preferred the price to close outside of the trading range, rather than a few pips inside), which was a little premature, but I didn't want to miss this opportunity.

Thankfully it turned out okay, though, because the price continued to drop in the following days and I managed to close 75% of the trade at 0.9100, and just yesterday I closed the remaining 25% at 0.9000 as this was just short of the 61.8% fibonacci retracement level and was a natural exit point.

Anyway the point of this article was just to demonstrate how profitable these breakouts can be, particularly if you have an established trading range that has remained in place for several months, as was the case with this AUD/USD pair.


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September 15, 2014

Anyoption Broker Review

Introduction

Binary options trading has become very popular in recent years, and as a result of this, there are now an increasing number of companies who are setting themselves up as binary brokers.

Therefore you do need to be careful when choosing a binary broker, which is why you might want to consider opening an account with Anyoption because they have been in business since 2009, and claim to be the world's leading binary options trading platform.

(Click here to visit the official Anyoption website)

Where Are They Based?

Anyoption's main headquarters is in Cyprus and they are regulated by the Cyprus Securities Exchange Commission, but they accept customers from all over the world (except the US), and offer a multilingual platform in English, Italian, German, Spanish, Russian, Turkish and Arabic.

How Much Profit Can You Make?

Every binary options broker will have slightly different payouts, but with Anyoption you stand to make 60-80% profit if you make a winning prediction, and unlike many others, you are entitled to a refund of 5-25% if your trade finishes out of the money (you can choose your desired profit and refund level when entering a trade).

You can also make substantially more than this on some of the other markets that are available (see below for more details).

What Markets Are Available With Anyoption?

Anyoption currently offer you the chance to trade more than 60 different assets, which includes stocks, indices, currencies and commodities.

With regards to the binary trading markets that are available, you can choose from the following:

  • Standard Binary Options - choose your market, choose the expiry time/date, choose whether you think the price will rise or fall on expiry and make 60-80% profit if you are correct.
  • Option+ - similar to the standard binary options above, except that you can trade in-running, ie take profits if the trade moves in your favor, or cut losses if it starts to go against you.
  • Binary 0-100 - select whether or not you think an event will happen or not, for example will the GBP/USD finish above 1.6400 at 16.30? Quotes are between 0 and 100 with prices settling at 0 for a failed outcome and 100 for a successful outcome, and you can potentially make up to 1000% profit if you are correct.
  • One-Touch - these markets are available on weekends only, and give you the chance to bet on the price of certain assets hitting a specified price target (that are currently out of the money) during the course of the week. It doesn't need to finish above or below this level, it just needs to hit the target once before the end of the week in order for you to make up to 380% profit.
  • Specials - speculate on the price of special markets, such as Bitcoins, for example, touching or finishing above or below a specific price level.

How Does The Anyoption Trading Platform Work?

Some trading platforms can be very cumbersome to use, but Anyoption's platform is very simple to use. There is no software to download because everything is done online, and you will find that it is easy to navigate to the markets you wish to trade, and very easy to enter and exit a position. You can even trade on your mobile if you so wish.

What Are The Deposit And Withdrawal Options?

You can deposit money using a Visa or Mastercard debit or credit card, or you can make an international wire transfer. You can also use Skrill or one of the domestic payment options if you prefer.

With regards to withdrawing money, you can make one withdrawal per month that is free of any fees, and there is no minimum withdrawal amount.

Final Thoughts

As I mentioned earlier, there are lots of binary brokers to choose from nowadays, but Anyoption seem to be a good choice because they are a well-established company that offer a simple easy-to-use trading platform and a wide variety of different binary markets for you to trade (with the potential to make up to 1000% profit), whilst providing you with plenty of deposit and withdrawal options.

There is even an Academy section on their website that explains how binary options work, and includes training videos for both beginners and advanced traders.

–> Click here to open an account with Anyoption


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September 14, 2014

Average Daily Trading Range Of The Major Forex Pairs In September 2014

This time last month I discussed the average daily trading range of each of the main currency pairs to demonstrate just how much volatility had fallen, and to show why many intraday traders were struggling to make consistent profits in the summer months.

So I thought it would be a good idea to do the same this month because it is clear that trading volumes and volatility have increased quite a lot since then, as you can see by the current average daily trading ranges of the major forex pairs in September 2014 (based on the ATR indicator) in comparison with last month's figures in brackets:

GBP/USD - 84 (54)
GBP/JPY - 105 (80)
EUR/USD - 61 (46)
EUR/GBP - 46 (34)
EUR/CHF - 19 (15)
USD/JPY - 53 (38)
USD/CAD - 61 (44)
USD/CHF - 45 (35)
AUD/USD - 63 (45)

FTSE 100 - 50 (58)
DOW JONES - 100 (136)
NASDAQ - 31 (39)
S & P 500 - 14 (17)

BRENT CRUDE - 141 (145)
CRUDE OIL - 151 (137)

You can see that the GBP pairs have been a lot more volatile in September than they were in August, thanks largely to the Scottish referendum and the threat of Scottish independence, whilst the Euro pairs have also been a lot more lively thanks to quantitative easing measures and a number of other factors.

However many of the other forex pairs have increased in volatility as well, which suggests that it really isn't a myth that the forex markets are a lot quieter during the summer when many people are on holiday.

It's also interesting to note that whilst the oil markets are still very volatile, as they were last month, the major world indices have actually become a little less volatile this month, which is probably due to reduced tensions in Ukraine and concerted efforts by world governments to thwart the rise of ISIS.

Plus of course markets such as the Dow Jones and FTSE are trading at very high levels right now and have been in consolidation mode for the last few weeks, which has also resulted in reduced price movements on a day to day basis.

From a personal point of view, I'm still trading (US) crude oil more than any other market as it always seems to move at least 100-150 points every day, and I've also been trading the Dow Jones quite a lot as well.

However it's great to see the major forex pairs move a lot more every day because it obviously makes it much easier for us all to make money.


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September 9, 2014

Is Scottish Independence Really A 50/50 Chance?

As I discussed in my last blog post, the threat of Scottish independence is weighing heavily on the British pound right now, and with the latest poll putting the 'Yes' vote slightly ahead for the first time, the GBP continues to fall all the time.

However it should be pointed out that this is just the result of one opinion poll. The 'No' vote is still ahead in many other polls, and the bookmakers still think that most Scots will end up voting no to independence because every single one of them has 'No' as the firm favourite.

Admittedly the odds for a 'Yes' vote have come in ever so slightly, but looking at all of the odds currently available from all of the bookies on Oddschecker, the 'No' vote is priced at an average of 2/5 (with a best price of 4/9) whilst the 'Yes' vote is priced around the 7/4 mark, and is even available for 2/1 from some bookies.

It's a similar story with IG.com who have also priced up a binary market for this Scottish independence vote. I've been watching these prices closely over the last few weeks and even after this latest poll the 'Yes' vote is still priced at 70-76, whilst the 'No' vote is 24-30.

So the point is that despite the result of one poll, every single one of the companies that have priced up this market think that a 'No' vote is still the most likely outcome.

Therefore it might be worth bearing this in mind before you take out a massive short position on one of the GBP pairs (GBP/USD, GBP/EUR, GBP/JPY, etc) because if the Scots vote against independence, as is widely expected, the GBP is likely to bounce back up just as quickly as it has fallen.


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September 8, 2014

Scottish Independence Vote Weighing Heavily On The British Pound

Whilst the decline of the Euro has been grabbing all the headlines just recently, the British pound has also been selling off quite sharply, but for completely different reasons.

The Scottish independence vote is now just 10 days away now, and this is having a massive impact on the direction of the GBP right now.

Only yesterday the results of the latest opinion poll were announced, and for the first time the 'Yes' vote, ie the people who are in favour of independence, was marginally ahead.

Subsequently the price of the GBP/USD, GBP/JPY and GBP/EUR pairs all slumped by over 100 points when they opened for trading last night, and they are still trading at these levels this morning. In fact even as I write this article, I see that they've just posted new lows for the day.

I'm firmly in the 'No' camp myself as I think it would have disastrous consequences for England, Scotland and the whole of the UK, but as I live in England, I have absolutely no say in the matter.

I also believe it would decimate the GBP, which until recently has been very strong, as do a number of Goldman Sachs bankers, according to this recent article in the Daily Mail.

Anyway this blog is not a place for political debate. I just wanted to point out that if you regularly trade any of the British pound pairs, you should be very careful right now because it is the fundamentals and the possible threat of independence that are really driving these markets right now.

If you think that the 'Yes' vote is really gaining momentum now, you could do what some experts are saying, and that's to go short on the GBP from now until polling day in 10 days time.

However I personally think it's better to either stay on the sidelines right now, or to try to profit from the increased volatility, whether it's through out-of-the-money one-touch binary trades or some other means.


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September 6, 2014

Learn How To Use Double Bollinger Bands

(This is a guest post from FX Academy regarding how you can use an advanced form of the bollinger band indicator to help you find winning trades in the forex markets. I hope you find it useful.)

Forex trading may seem simple at first glance but as we all know, looks can be deceiving. Trading currencies is more than just deciding on a currency pair and deciding on which direction the price will move. In order to really profit in Forex it is important to learn as much as possible about Forex markets and how to make the most prudent trades.

There are many trading tools available that can be used for successful Forex trading and the more practice you have in using them, the more you will understand what makes Forex trading so interesting. Most Forex brokers offer a minimum of educational material to their account holders. But this is often very basic and traders who are more experienced and more advanced in their trading would not benefit very much from these efforts.

Online Courses

There are, however, several comprehensive online Forex courses that go beyond the basics and are suitable to Forex traders of all levels. One of these courses is FX Academy. There are 9 different courses to choose from and a total of 32 lessons. Each lesson includes text as well as an animated video which explains in detail the content of the lesson. There are also quizzes and recommendations for supplementary reading material. And each lesson can be reviewed as many times as necessary.

The 7th course at FX Academy is devoted to Double Bollinger Bands, a variation on the standard single Bollinger Band which provides additional information on momentum and trend strength, both in flat and strongly trending markets.

Because the concept of Double Bollinger Bands cover quite a large scope—with different combinations of zones and rules-the course at FX Academy is divided into five different lessons, with each lesson focusing on a different set and providing the technical analysis that it calls for. Each rule is outlined in detail and thoroughly explains how each strategy relates to the rule discussed.

Besides being very informative, the course on Double Bollinger Bands allows students to practice this strategy in practice trading. The success of the approach depends on how well a trader reads and interprets the other technical and fundamental evidence and then comes up with a price.

With the completion of the course, students will have a unique and strategic tool to employ when trading Forex and will feel confident moving on to the next course at FX Academy—Trading with Price Action.

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