Weekly Technical Market Insight: 22nd – 26th February 2021

Weekly Technical Market Insight: 22nd – 26th February 2021

Note—Charts provided by Trading View US Dollar Index (Daily Timeframe): The US dollar, as measured by the US dollar index, settled last week mostly unmoved, establishing what many technical analysts refer to as an indecision candle (albeit with a slight edge to sellers). Since early February, sellers claimed the 127.2% Fib projection at 91.44 and now loiter a touch north of January 21 low at 90.04. Sellers gaining strength this week shines the technical spotlight on support priced in at 89.34—the origin of January’s pullback. North of 91.44, the technical radar shifts to resistance at 92.26, accompanied by a 61.8% Fib level at 92.36....

Weekly Technical Market Insight: 15th – 19th February 2021

Weekly Technical Market Insight: 15th – 19th February 2021

Note—Charts provided by Trading View US Dollar Index (Daily Timeframe): The greenback was on the ropes last week, consequently snapping a two-week bullish phase. Measured by the US dollar index, the buck shed 0.7 percent, following a bearish outside reversal formed on February 5 from a 127.2% Fib projection at 91.44. Friday settling considerably off best levels, together with the RSI oscillator burrowing through channel support and the 50.00 centreline, places the 90.04 trough (January 21) in sight. Violating the aforesaid level this week shines the technical spotlight on support drawn from 89.34. In addition to last week’s retreat, the US dollar...

Weekly Technical Market Insight: 8th – 12th February 2021

Weekly Technical Market Insight: 8th – 12th February 2021

US Dollar Index (Daily Timeframe): Measured by the US dollar index, last week witnessed USD bulls strengthen their grip and record a second successive weekly gain, settling 0.5 percent higher. Friday, however, watched sellers make an entrance from a 127.2% Fib projection at 91.44, extended from the 89.20 low. Candlestick enthusiasts will also note Friday’s reaction fashioned a bearish outside reversal, movement that snapped a five-day winning streak. Although this could influence sellers this week, possibly targeting the 90.04 trough (January 21), resistance at 92.26 is still likely to call for attention, closely followed by a descending wedge (between 94.30...

e-Books: Developing a Trading Plan

e-Books: Developing a Trading Plan

Developing a good trading plan will provide you with a solid framework to improve your trading. The first step to developing a trading plan is to define your specific goals and a time frame to achieve them. Successful trading is a by product of adhering to a sound plan that addresses your entry and exit strategies, risk and money management. Entry Fundamental or technical analysis can be used to analyse signals to determine when you should enter into a trade. There are a number of methods that can be used to determine your entry including ‘buy low, sell high’, ‘buy...

e-Book: Money Management

e-Book: Money Management

Many traders overlook the importance of money management but it is a key component in determining your trading success. Money management refers to the process of analysing trades for risk and potential profits and managing trades to ensure trading longevity and maximise profitability. The important role money management plays is best illustrated through drawdown analysis. Drawdown Drawdown refers to the amount of money that is lost trading, expressed as a percentage of your total trading capital. If every trade you took was profitable, your account would never experience a drawdown. Drawdown measures the money that is lost while trading but...

e-Book: Preserve Your Trading Capital – Live to Trade Another Day

e-Book: Preserve Your Trading Capital – Live to Trade Another Day

The number one and most important rule of trading is – preserve your capital. Without capital you are unable to trade. As Jesse Livermore said “A trader without money is like a shop owner without inventory”. Preservation of your trading capital is perhaps the most important goal. Regardless of whether you make bad decisions during any trading period, if you employ capital preservation, you will have a chance to recoup losses and ultimately achieve success. The common-sense rules we suggest that you impose on your trading will enable you to survive all market conditions. If you understand and observe these...