The focus of this article is a new study by Caporale and Plastun. They suggest that there’s an edge to be had in forex markets by trading gaps. However, they could not find an edge in other assets. Following are some of the findings from the research paper and then some concerns we have about […]
Forex
This Rare Bearish Pattern Just Formed In GBP/USD
With the fear and uncertainty of a possible Brexit, GBP/USD has been one of the worst performing currency pairs this year, falling as low as 1.38 in late February. However, recent weeks has seen the currency stage a comeback, taking the market back to the important 1.4600 level as traders bet the pessimism was overdone.
Janet Yellen Does It Again : Dollar Drops
As I predicted on Monday, the Federal Reserve kept interest rates on hold yesterday and this saw the US dollar drop against most of its major trading partners. The central bank cited low inflation and uncertainty abroad as the main reason to keep rates on hold and this has pushed market expectations for the first […]
My Forex Trade Diary For The Week Of May 25-29
I was asked by the online broker easy-forex to maintain a forex trade diary and evaluate the easy-forex trading platform for the week of May 25-29. Upon accepting the challenge, easy-forex set me up with a live account with $200 in capital. The process was quick and by Monday 25th May I was ready to […]
Understanding The US Dollar Index (USDX)
USDX is the US Dollar index that is used as an indicator by traders who wish to deal in gold currencies, futures, commodities and bonds. It’s one of several indicators which help Forex traders to assess the relative strength or weakness of the US dollar against another currency.
This is why forex trading is not easy (simple trading systems debunked)
People often want to know whether forex trading is profitable. They see a strategy online promising 1000% returns and millions of dollars in profits and wonder whether they too can become successful forex traders. On the flip side, though, they will also have heard the stories of those traders who have lost money and in […]
What to expect from the Bank of Japan this week
It looks like it will be another busy week for traders this week, with plenty of economic releases and central bank announcements. Traders will be watching the Bank of Japan this week as well as inflation data out of the UK and central bank minutes from the BOE, RBA and Fed. Traders will also be […]
EUR/USD enters overbought condition
Currency markets saw some sharp moves on Wednesday as FX traders responded to a plethora of economic releases and statements by selling the US dollar and buying the Euro, Japanese yen and British pound. This has seen EURUSD enter an overbought condition that could lead to some short term downward pressure for the pair. Traders […]
The similarities between trading and cricket
Trading and cricket It is not altogether uncommon for people to try and compare professions with sport. With trading this is equally true and I have heard many times people compare trading to American football, baseball, golf or even tennis. In many ways, baseball is a good comparison; The film Moneyball with Brad Pitt is an […]
Outlook for EURUSD; turning point near?
US stock markets moved up nicely yesterday for the second day in a row, after comments from Russian President Vladimir Putin downplayed the extent of military action in Ukraine and US housing data boosted stock market optimism. Putin said “we don’t want to split Ukraine up, we don’t need that,’’ and later, “Don’t believe those who […]
