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Cable + 93 Pips Profit. Trade Explanation

In today's blog post I want to take the time and talk about my last trade which was long GBP/USD. Since beginning of this month you could have seen me talking in details about all my trades in my blog and I hope this will give you a perspective on the reason and why I've decided to take that particular trade.
This trade is a particular setup that I usually take during London open when the market starts moving strong in one direction and than it quickly reverse, so you have to fade that quick mov…
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Daytrader21 avatar

Stix When I'm referring to "liquidity inefficiency" I mean that there are few orders executed inside this type of move and it creates gap in liquidity as only few people get their orders filled when everyone jumps in to catch that move. Why do you think you get slippage?:)

Stix avatar
Stix 9 6月

Thanks, Daytrader21. Yes, I do understand. It seems incredible that for moments in time, all business ceases, since it is an electronic system but given that the major contributors are banks etc, the vigilance during economic data release is understandable. It still surprises me, after all this time. Thanks ! :) :)

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cocciolla 10 6月

congratulation for prize in the strategy contest

Daytrader21 avatar

cocciolla Thanks mate, I saw you in top 10 as well so congrats to you as well.

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EUR/AUD Consolidation mode

Over the last year EUR/AUD has been moving from large ranging zones to small ranging zones, moving back and forth between this consolidation phases. Right now the current established range is between 1.4400 resistance level and 1.4000 big round number and psychological number. Taking in consideration that we're approaching the summer time whee liquidity usually is low and thus the activity level is very low we should expect the market to move in tight range zones and this is…
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Update 1: The market is still inside a wide range and has resistance at 1.4350 and support stands at big round number 1.4000. For the next week we should see the market once again trying to retest the low.

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Update 2: We're still consolidating between 1.3900 support zone and 1.4350 resistance level which basically form a range trading box. We should see further consolidation into next week between this 2 extreme levels. Another level we should keep an eye on is the middle of the box which comes at 1.4150

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EUR/JPY Elliott Wave Cycle Completed

Based on the Elliott Wave analysis EUR/JPY has completed a five wave sequence from the 2012 bottom and right now we're in a corrective process which should keep this pair in a wide range. For the time being the 136.00 level and pivot point should act as support and because we're entering the summer time period where liquidity is generally low and usually the market is moving in a tight range we should expect the market stay inside the 136.00-130.00 range.
Major Levels to
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Update 1: The level 136.50 is still holding the market for going up as expected and next week we should see a pull-back inside the range. Support stands at 134.00 current bottom of range box. The market is still in consolidation and us such look for more range bound.

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Update 2: The market is moving as per my plan and we're still trading inside the range box. Key level to keep in mind for next week are 133.00 bottom of current range and also support level and the middle of the range which comes at around 135.50 which is also a pivot point.

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Update 3: As expected from my last week update the 133.00 level has acted as support and we had a strong rally and we're heading for a retest of current box top which comes at around 137.00 which should act as resistance and send price lower again. First level of support for next week comes at the big figure 135.00

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Update 4: Unfortunately we broke higher and right now the next range box is about to be established above 136.50 level. We have to wait and see if current high at 141.00 will hold or not in order to validate my forecast or not

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The State of US Labor Market

Going into today's NFP release there is a rumors going on around the markets that NFP figures will be well below consensus. Over the past few months March payrolls have missed on 6 of the last 7 reports this shows a strong seasonality pattern. Since FED has removed "patience" from their
statement the market is more sensitive to the job report as market participants will beat on a rate hike sooner/later depending if the figures comes strong/weaker.
We have to keep in mind that today is holida
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Black Swan Event Armageddon Style.


In my second blog post of the year I was arguing and making the point of higher market volatility in the year ahead, you can find more about it here: 2015 A Year of Higher Volatility
Did I ever foreseen the level of current madness in the market? By no means NO.
Having said that there where some clues of what is to come as everything was pointing towards ECB aggressive easing measures to be implemented at beginning of the year, and now with EU lawyer approving ECB bond-buying programme as bein…
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CommunitySupport  Thanks for keeping us posted. As soon as I was aware of Dukascopy official statement I've made an update and I was pointing anyone in that direction. It was just an unwanted bad rumor and you can't put your all trust in a rumor, so I've advice everyone to take it with a grain of salt.

Me personally and I'm sure many others are please to hear the good news and I'm looking ahead for another 10 great years with Dukascopy and many more.

Keep up the good work!

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Airmike 20 1月

good news for us . and good article btw :)

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DUKASCOPY: NO TRADE CANCELLATIONS, NO NEGATIVE BALANCES

Management of Dukascopy Group has decided to take an exceptional decision to cover negative balances on client accounts related to CHF move on SNB decision on 15.01.2015.

In spite of the fact that agreements and regulation allow Dukascopy to claim negative balances compensated by clients, it was decided to release customers from obligation to cover negative balance.

Dukascopy Bank has not cancelled or negatively adjusted any trade concluded on 15.01.2015 with clients during the CHF move.

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Berkeley 20 1月

Dukascopy Bank ... first choice! Keep up the good work!

WallStreet6 avatar

very good article. i agree with Buffet's quote.

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2015 A Year of Higher Volatility

We haven't even started the year and the market is already posting some crazy volatility in a thin liquidity environment like the Asia session, and this is just the precursor of what may to come. As last year was we saw a perfect symmetry of volatility where in the first half of the year the volatility was pushing towards multiple all time low levels in the second part we saw a pick up in volatility (see Figure 1)
Figure 1. FX Volatility Deutsche Bank Currency Index

This pick up i…
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NZD/CHF Trading Box Effect

Nothing much has happened with NZD/CHF in last few years as we are moving in an never ending ranging zones. On the weekly chart (see Figure 1) you can notice this trading range boxes on top of each other which are characteristic in this range environment and which clears further current price structure. Usually the top/bottom of previous range box provides support or resistance for the next trading box as old resistance has become new support and vice versa. But there are times when price do…
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Update 1:  We're still in the consolidation phase and we should expect during this time of the year with low level of liquidity the market to move in narrow ranges. Next support level remains at 0.7400 before any reaction

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Daytrader21 22 12月

Update 2: We're still trading within this big range boxes and we're going to continue to do so especially during this period of the year when liquidity is very low and the market stays within some even more narrow ranges.

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Daytrader21 27 12月

Update 3: The fact that we haven't succeeded to break above previous swing high 0.7685 suggest that we are headed back within the range box and the only way we could hit our target on time is for the market to close below 0.7585 during the Monday session this way the momentum can gain speed to the downside.

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World Cup and Forex Exchange Market

I'm quite surprised that no one has write about the correlation between FIFA World Cup and the Forex Exchange Market as it's the biggest sport event of the year. Usually the host countries benefit most not only by the infrastructure investment in the years prior to the tournament, but also by the inflow in The Brazilian real, which is the Brasil national currency.
You have to convert your local currency to Brazilian Real in order to pay for the goods and services if you visit Brasil for the Worl…
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Huge Slippage

Another month has started and unfortunately some huge slippage has put me down right from the start.
Yesterday during NFP release I had a GBP/JPY limit buy order above market price at 172.95, roughly 10 pips away from the market price but things got worse and didn't go as planned and my limit buy order got a huge 50 pips slippage and I got my fill right at the high of the day 173.41 and at the point where I was most likely going to move my SL if I would have got the right price at which I intend…
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CommunitySupport avatar

but it will be good to know order/position id, please provide

Daytrader21 avatar

LOL......Well, I already send an email with order details

CommunitySupport avatar

check your mail, no mistake found during execution

Daytrader21 avatar

I got your email, you're right it seems it was a market if touched order and the price was legit, my bad. Anyway thank you for your assistance.

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you are welcome

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The Case for a Multi-Year USD Bullish Trend.

There are many structural reasons that support a dollar bullish trend in the coming years. The outstanding US Dollar short positions are enormously. And a bearish trend doesn't stops because there will be a mythical big buy position that will reverse the trend.
A bearish trend will reverse when all the
sellers who wanted to sell are in the market and there is no one left to sell. The same is the case with a bullish trend which will not reverse because some huge sell will come in the market but b…
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