Pip of the Month
I am have been opening an other business and had to be a way for a while. I am back and excited to get back at trading, The Pound is behaving like a security currency what with the Euro all crazy in Italian debt.
This is an edgy but interesting play. Watch your technical points and be very careful with your stop loss points but mull over the idea of the pound as safe currency play.
I am just newly thinking about this myself and well post more over the next little bit.
Pippsters trade Forex on
It has been a busy Month trading the CHF to the upside. Nice month, but soon we must find time for a new lesson and some more trade articles. So in honor of finding more time some how Patek Philippe is the Pip of the month. Enjoy!
Pippsters trade Forex on
Gold is the Pip of the Month
Gold seems to be going higher still and still. Surely the bubble will break soon or will it? I think we are safe to say it won’t break for the next month or two soooo seems like a nice trade while it continues to trend up and up. I have been doing some little research and have found that as gold trades higher so does the Swiss franc. There is almost a 90% correlation. With the Euro being in unstable times, I have been looking for technical points to trade up on the Swiss Franc against the Euro. Worked out nice today. I did lose a little trying to catch the Canadian dollar going up against the Greenback for the same reason and even though I lost on my Loonie placement, because of my stop loss limits I made it back and much more on my Swiss trade. I will be looking to gold and the currency pairs that trade with it this month. I will as always use a stop loss limit and chart patterns to help with my entry points. Gold baby sweet gold. ( I will be trading the Swiss Franc against the Euro and the Loonie and Aussie dollar against the Greenback.) Wish me luck or come aboard for the ride!
Pippsters trade Forex on
Forex Trading Old School
The flag and pennant patterns are two continuation patterns that look like each other, just their shape during the pattern’s consolidation period is a little different. A flag is a rectangular shape, while the pennant looks more like a triangle.
These patterns are born when there is a sharp price movement followed by generally sideways price movement, which is the flag or pennant shape you can see on the charts. The pattern is complete when there is a price breakout in the same direction of the initial sharp price movement. The following move will see a similarly sharp move in the same direction as the prior sharp move. These charts can be used for a bull or bear market indicator. The charts in today lesson are both bull charts, the bear chart would look the same but it would be trending down before and after the flag or pennant pattern.The complete move of the chart pattern – from the first sharp move to the last sharp move is called the flag pole.
“The flag or pennant is considered to be flying at half-mast, as the distance of the initial price movement is thought to be roughly equal to the proceeding price move. The reason these patterns form is that after a large price movement, the market consolidates, or pauses, before resuming the initial trend.”
Flag Chart, Forex
Pennant Chart, Forex
The Pennant
The pennant forms what looks like a symmetrical triangle, where the support and resistance trendlines converge towards each other. The pennant pattern does not need to follow the same rules found in triangles, where they should test each support or resistance line several times. Also, the direction of the pennant is not as important as it is in the flag; however, the pennant is generally flat. These shapes are strong signals but like with any charting it is best to confirm them with other indicators like volume.
Stuff to Know
While the look of the “pause” in the trend is different for the flag and pennant, the attributes of the chart patterns are almost the same. It is important that the price movement before the flag or pennant be a strong – quick move.
These patterns take less time to form during downtrends than in uptrends.
The volume, as with most breakout signals, should be seen as strong during the breakout to confirm the signal. Upon breakout, the initial price objective is equal to the distance of the prior move added to the breakout point.
Pippsters trade Forex on
trade oil
I love currencies and normally stay within that particular arena, but Etoro now offers oil on their exchange board (with gold and some other major commodities). Since oil is achieving it’s peak amount or has already peaked, it is a resource that will now hedge to higher prices because of it’s now reducing in supply. I made a little bit on oil this month and I don’t have to get a broker beyond my currency account. One stop shopping with no commissions to pay! I can play the oil market with the convenience of the bid /ask spread of the currency market brokers.
I don’t pretend to be an oil investor, but if the world is unstable in the oil producing areas and the resource itself has a built in scarcity and if I can play that market in my style ( currency trader) , then why not? Oil has been touted has going up to 100 dollars a barrel, well I am not sure, I mean given enough time sure, but why not trade it since it has an upside price pressure while the middle east settles out it’s new political will and Canada fights it’s dirty oil image. (and yes it really is dirty oil from the tar sands and oil is a crappy way to get energy however, it is an interesting trade vehicle )
Be sure to use your stop loss methods on your oil bets too. Bet on a up side price and manage your risk with your stop loss. Oil is the Pip of the month
Pippsters trade Forex on
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