Posted in: Beginners
Global macro overview for 21/03/2016: For this week there are still some important pieces of economic data that is due out, with a particular focus on the UK fundamental data release. This week should be quieter mainly because of the upcoming Easter Bank Holiday. Nevertheless, the inflation data on Tuesday and the retail sales figures on Thursday will be watched closely by the Bank of England mainly due to the 2% inflation projection level for 2016. In conclusion, the weak data might initiate the assistance program from the BoE, despite the recent remarks made by Mark Carney. He said that the next central bank move would be more likely to increase the interest rate than to decrease it. Let’s now take a look at the technical picture of the GBP/USD pair at the daily time frame. The market has broken through the golden trend line and currently it is testing it. Moreover, it is trading just below the important support at the level of 1.4438 so the bulls are in complete control overt this market. Only a sustained break out below the level of 1.4051 would change the situation in favor for bears.
In the USA, the Thomson Reuters/University of Michigan preliminary Consumer Confidence Index dropped to 90.0 points in March, down 1.7 points from a month before. According to the report, this unexpected worsening in sentiment was caused by concerns of increasing petrol prices and mounting expenses. Moreover, another important fact is the employment situation and wages: the number of employed people is increasing steadily, but there is no chance for any increase in salaries and wages. In conclusion, the current situation is deteriorating compared to 2000 when the confidence index reached its all-time high at 112.
Let’s now take a look at the US Dollar index technical picture at the daily time frame. The bears seem to be in complete control over this market as the price is trading below the 21.50 and the 100 daily moving averages. Moreover, the price has recently broken below the important technical support at the level of 95.25 and currently the bears are testing this level from below. Any failure here would mean further price decrease towards the next support at the level of 94.05.
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On January 21, after the GBP/USD pair moved below 1.4220, evident signs of bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again.
Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the most recent bearish swing was initiated.
As previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level was located at 1.3845 (historical bottom that goes back to March 2009).
As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3850 (prominent weekly demand level). That is why, a valid buy entry was suggested near the same level.
The price zone of 1.4235-1.4375 constitutes a significant supply zone to offer evident bearish rejection.
This bearish rejection was manifested on the weekly chart until the price level of 1.4050 managed to push the pair again to the upside.
Note that bullish persistence above the price level of 1.4375 allows further bullish advancement towards 1.4620 to take place.
A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4235.
Hence, an extensive bearish breakout below 1.4235 was expressed on the daily chart (GBP/USD looked oversold few weeks ago).
That is why; signs of bullish recovery and a profitable long entry were expected around 1.3850. A recent bullish swing was expressed towards 1.4375.
On March 13, the broken demand zone (1.4235-1.4375) stood as a significant supply zone to offer bearish rejection in the short term.
A lack of bearish rejection around 1.4235 allowed further bullish advancement towards the level of 1.4375.
On March 14, evident signs of bearish rejection were expressed around 1.4375 (61.8% Fibonacci level).
That is why; a recent bearish movement was executed towards 1.4050 where the current bullish swing was initiated.
Today, the price level of 1.4375 (61.8% Fibonacci level) is being challenged again. Temporary bullish breakout is being manifested on the daily chart.
If bullish persistence above 1.4375 is maintained, a quick bullish movement towards 1.4530 and 1.4600 should be expected.
Otherwise, the GBP/USD pair will remain trapped between price levels of 1.4375 and 1.4150.
Global macro overview for 18/03/2016: Yesterday, the Bank of England left the interest rate on hold at the level of 0.50%, together with unchanged asset purchase facility at the level of 375B pounds.
The BoE members voted unanimously 9 to 0 in favor of unchanged interest rates. It was the second month in a row when policy makers were unequivocal on the decision, after Ian McCafferty abandoned his rate hike vote in February referring to a weaker outlook for wages. Moreover, according to the
Monetary Policy Committee meeting minutes, despite the global headwinds, policy members are still convinced that in the near future interest rates should be increased, not decreased, so negative interest rates are not taken into account currently. There is one more thing worth of noting here: uncertainty over the outcome may result in slowing the economy during months ahead of the vote, the BoE policy members said. In conclusion,
The BoE meeting minutes mark the first time when officials have explicitly expressed their concerns over looming referendum risks acting as a further drag on growth amid already challenging global environment. Let us now take a look at the daily time frame of the GBP/USD pair.
The market has clearly broken out above the golden trend line and now is trying to extend the bullish momentum even further by testing the recent swing high at the level of 1.4668. The next resistance is seen at the level of 1.4578 and the next support is seen at the level of 1.4438.
Global macro overview for 18/03/2016 Part two:
Despite the expanded stimulus program from the European Central Bank, the Swiss National Bank kept the interest rates on hold at the level of -0.75%, together with 3-Month Libor lower and upper target ranges at the levels of -1,25% and -0,25%, respectively.
This decision might have very negative consequences because the ECB “bazooka program” launched this Wednesday may eventually put the Swiss currency under upward pressure versus the euro.
In conclusion, the extended period of negative interest rates might weaken the demand for the franc by making it less attractive for investors from overseas. Even if negative rates are also intended to support economic growth by encouraging banks to lend more to consumers and businesses, the recent extension of QE program from the ECB might be more damaging than helping the Swiss economy in the longer run.
Let us now take a look at the EUR/CHF daily time frame. We can see a steady rise of the market after the peg removal event over a year ago. Currently, it looks like the market will be continuing its slow uptrend towards the 1.2000 level as long as the golden trend line is not violated. The next resistance for bulls is seen at the level of 1.1048 and the next support is seen at the level of 1.0808.
On January 21, after the GBP/USD pair moved below 1.4220, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again. Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the most recent bearish swing was initiated.
As previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level was located at 1.3845 (historical bottom that goes back to March 2009). As expected, an evident bullish recovery and a bullish engulfing weekly candlestick was expressed around 1.3850 (prominent weekly demand level). That is why, a valid buy entry was suggested near the same level.
On the other hand, the price zone of 1.4222-1.4360 now constitutes a significant supply zone to be watched for a possible short-term bearish rejection. Otherwise, bullish persistence above the zone of 1.4222-1.4360 allows further bullish advancement towards 1.4620 to take place in the market.
A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4235. Hence, an extensive bearish breakout below 1.4235 was expressed on the daily chart (the GBP/USD looked oversold few weeks ago).
That is why, signs of bullish recovery and a possible long entry were expected around 1.3850. A recent bullish swing is currently being expressed towards 1.4375. The broken demand zone (1.4235-1.4375) now constitutes a significant supply zone to offer bearish rejection in the short-term perspective.
Early signs of a bearish rejection were expressed around 1.4235 (50% Fibonacci level depicted on the daily chart). However, the recent bearish signs were not strong enough. Hence, more bullish advancement towards 1.4375 was expressed as expected. Trading Recommendations:
Price actions should be watched around the level of 1.4375 for an intraday sell entry. S/L should be placed above 1.4420. Initial T/P levels should be located at 1.4220, 1.4100, and 1.4050. On the other hand, risky traders can wait for a bearish pullback towards the key-level of 1.4030 to buy the GBP/USD pair.
In today’s blog we are going to talk about the oil market. In the oil market many traders, professional traders and professional investors are making money every day in the oil market. How do they do that? Before we are going to discuss that, please check this video below. This video will explain you in five minutes of how the oil market works and who the major players are.
How to make a profit in trading the oil market?
As you can see in the video above some of oil companies in the world are owned by governments/countries such as Saudi Arabia. When such parties have power to control the oil market. They are in control of price. Like OPEC , they have been in control of the market for years. But at the moment they are slowly losing control.
The price of oil is always determined by supply and demand. And the general thumb rules for supply and demand is as follow:
1. If the Supply is bigger then the demand. The Oil price will go down
2. If the Supply is smaller then the demand. The Oil price will go up
In order to make money on trading oil. All you need to do is to research what the plans of OPEC are. If they decided that they will increase the oil production then you know that soon or later the oil price on the oil market will drop. And if OPEC decides to decrease the production. Then you know that the price of oil will increase soon or later on the oil market.
Sometimes you see that oil price is increasing or decreasing without any real confirmed reasons. The reason for this is that most professional traders are speculating that based on their own facts of the current market situation. That OPEC will soon announce that they will take action to react to the current market condition.
How to start trading in the oil market?
One of the best way to start trading in oil is to trade in oil cfds. Because it gives you the best leverage. And because of that leverage you can make a lot money with a small investment. If you want to know more about CFDs then click here: CFDs the basics.
You start practise with trading by opening a demo account by clicking here: Oil Trading Practise account
Or you can open a trading account and receive a nice welcome bonus cash for trading by clicking here: Open Trading Account & Bonus
This section covers the following topics while using the Plus500 software. We will start with how to open and verify your Plus500 account using the software, scroll down to view the steps. If you’ve already done this, feel free to skip to the next topics.
The topics below are coming soon:
- How to get free bonus money?
- How to deposit and withdraw money in your account
- How to open and close a trade in Plus500
- Plus500 trading methods and tactics
- What are the benefits and disadvantages of Plus500?
- Important things to know when trading with Plus500
How to open an account using the Plus500 software
Software download link: www.plus500.com.
Downloading and installing the Plus500 software is easy. Just follow these steps.
- First, open the link: www.plus500.com.
- Then click on “Download our Windows trader”. Or download from a direct link (and you can skip to point 5).
- The next screen appears. Click on Download Now!
- Now your download will start and depending on what browser you use, you can start it immediately.
- Execute the downloaded file, Plus500 will now install on your computer immediately. Wait for this process to finish.
- Plus500 will then automatically start up and you’ll see the following screen.
- Since you don’t have an account yet, click on New User.
- Fill in your email address and password.
- Click submit.
- You will be automatically redirected to a welcome page of Plus500. You can close this page and continue on the Plus500 software.
How to get a verified account?
- Here a few steps are required to create a fully approved account. Click on Funds Management for this.
- Plus500 will now ask you a few mandatory questions. Fill everything in, then click Done.
- Plus500 will start processing your information, wait for it to finish.
- You are now redirected to new screen, here you will have to upload your ID, which is a copy of your passport, ID card or driving licence. Click on Upload to find a copy of your ID.
Tip: Take a photo of your ID with your mobile phone and email it to yourself.
- Once you’ve selected a copy of your ID, wait for the upload to finish.
- Once uploaded, you’ll get this message: “Your uploaded files are currently being reviewed – this process is usually completed within several minutes.” Dismiss this message by clicking Ok.
- In the next screen you can see that your copy of ID is now under review. Once this message changes to Verified, you’re good. Close this screen.
- There is also another document that you need to upload to fully verify your account and to be able to start trading. Click on Funds Management again.
- Now click on Verify Account.
- You’ll see that your ID is already uploaded, what’s missing is a proof of residence. This can be a photocopy of an entire utility bill or bank statement. The only obligation is that your name, address is on it and that the document isn’t older than 6 months. Click on Upload once you have one. Wait for the upload to finish. Your Address section will now also be Under Review.
- In the next screen you can see my Verified account. I have also verified my email address which is easy to do. You don’t need to verify your phone number. Once you get this one, you’re ready to go!
Congratulations! You can now start trading with real money using the software.
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Helpful Tips to Use When Trying to Buy Bitcoin
If you are a person who does a lot of business online, then finding ways to make the transfer of money easier is usually a top concern. There are a variety of things that a person can do in order to move their money around online easier and among the most effective is buying bitcoin. Making sure that you buy bitcoin from a reputable dealer is important. A variety of security measures will need to be taken in order to keep your bitcoin safe. Below are some helpful tips to use after you buy bitcoin in order to keep it safe.
Once you Buy Bitcoin, Keep Separate Wallets
The first thing that you will need to do in order to keep your bitcoin safe is to figure out where you will keep it. There are a number of sites out there that offer a digital wallet to keep the currency safe. The best way buy bitcoin and keep it safe is by taking the time to setup two different wallets. There are no limits on the number of bitcoin wallets that you can have. By spreading out the currency, you will be able to avoid having it all stolen by hackers.
After you Buy Bitcoin, Set Up Security on Your Accounts
Just like with any other type of account, you will need to take measures to secure your bitcoin account. The more you are able to do in regards to guarding your account, the easier it will be to keep your money safe. Making a password of pin for your account is important and not sharing it with anyone is even more important. There are usually a variety of companies that will allow you to buy bitcoin and house it in a safe place. The time that you put into finding the right place to buy and house your bitcoin will more than pay off in the end.
Keep Your Bitcoin Wallets Backed Up
When using the computer for business and the transfer of money, a person will have to ensure that they backup all of their information. There are a number of things that can lead to a computer failing and becoming unusable. If all of the information about the way you buy bitcoin and store it, then you will need to create a cloud based backup to ensure that it is safe. By creating this backup, you will be able to get a new computer and put the information about your bitcoin on it with ease.
Without the proper research, it will be very hard for you to put the right security measures in place to protect your bitcoin. Getting some advice from the professionals from where you buy bitcoin from can be invaluable during this process. If you avoid putting these types of security measures in place, then you may fall victim to a hacking that may deplete the bitcoin savings you have.
World of Bitcoin Trade
Finding ways to put your money to work is important and something that you need to take very seriously. Without the right investment strategy, it will be very hard for a person to get the right results from this process. There are a number of things out there that can garner a person a lot of money if they invest in them. The world of bitcoin trade is wide open and has a variety of different investment opportunities. Just like with the trading of stocks or bonds, there are a number of rules and things that you will have to consider when trying to have the success with bitcoin trade.
Know What To Invest in Bitcoin Trade
When trying to have success in the world of bitcoin trade, you will first have to think about what you have to spend. Taking the time to work up a budget before investing is a surefire way to avoid overspending during this process. The last thing that you want to do is to invest money that you are using to pay for your home or other important expenses. Doing this will only result in you getting in a financial bind and not being able to continue trading. Going in to speak with an investment professional is a great way for you to get some guidance regarding what needs to be done and what you can invest.
Understand the Goals for Each Bitcoin Trade Made
Once you have figured out what you have to spend, you will need to take the time to find out what your goals are. Without a clearly defined goal for each trade, you will not be able to track the progress you are making. In most cases, a beginner to the world of bitcoin trade will not know what their goals are, which is why using a professional to help is important. A professional in the world of investing will have no issues helping a person define their goals and them help them meet them.
Getting the Right Information
Just like with any other type of investing, the more information you have regarding the bitcoin trade industry, the easier you will find it to get the right trades made. There are so many different publications and websites out there that will allow you to stay up to date on all of the developments in the bitcoin trade industry. Staying up to date on this industry will allow you to strike while the iron is hot and make the right decisions regarding what to do to make money. The time that you invest into this type of research will more than pay off in the end.
Finding the right information with bitcoin trade is essential. Without the proper guidance during the beginning phases of your trading, it will be very hard for you to have success.
The price of a bitcoin is for most people a mystery. Like why is the price of a bitcoin like this. Why would the value of a bitcoin go up in value? For most people the bitcoin currency around the world is a bit of a mystery. Finding out about the currencies that are available to you can be very beneficial. In a world where nearly everything can be bought online, finding the right way to purchase your goods is important. Among the most popular currencies used in the online world is Bitcoin. There are a variety of things that a person will have to know when trying to invest in this type of currency. The following are some of the factors that will have affect on the price of a bitcion.
Government Regulation Can Affect the Price of a Bitcoin
One of the biggest factors that affects the price of a bitcoin is government regulation. As the regulations on the use of Bitcoin come down the pipe, they will undoubtedly affect just how much it is worth. There are a number of regulations that have been passed that promote the use of this currency. The only way to stay in the know on coming regulations is by taking the time to do a bit of research on this subject. The time that is put into this process will be more than worth it.
The Number of People Using This Currency Will Affect the Price of a Bitcoin
Another very important factor that will lead to the increase or decrease in the value of bitcoin is the number of people using it. Usually, traditional currencies will be valued according to how much of it is in circulation. As this currency begins to get more popular, the higher the value will begin to go. The more people there are to spread around the bitcoin, the higher the overall price of a bitcoin will be.
The Use By People in the Business World
The world of business has always been one of the most important meters by which the power of currency has been measured. The more that the world of business uses the Bitcoin system, the higher the value you of it will be. There are a variety of overseas companies that have begun making more investment into Bitcoin because they see the potential that it has. As time goes by, more businesses will begin to use this type of online currency due to the desires of their employees. With all of the potential growth that this type of currency has, there is no wonder why more people are starting to invest.
The time that is put into getting information on Bitcoin will be more than worth it. There are a number of companies out there that will help a person with their Bitcoin purchase. These companies will also be able to let a person better understand the factors that lead to the price of a bitcoin and what they need to watch out for when investing.
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