Who will be the winner of this week’s Forex battle: the US Dollar bear or US Dollar bull?

The market reacted stoc after the yachting release of the NFP figures but decisively vps hosting bearish to the FOMC statement. The GBPUSD 4-hour chart, for instance, shows the dramatic fall and subsequent rise clearly on the graph (see orange and green circles). What can Forex traders expect for the upcoming week?

13- 10- 2014 gu 4


It seems like Forex DVD can expect a game of “Fibonacci table tennis on the GU as price bounces super bad and forth between the bullish and bearish Fibonacci levels. Despite the news events, price respected both the bearish 50% Fibonacci level (orange Fib) and the bullish 78.6% Fibonacci level (magenta). However, the bullish 4-hour pinbar (blue circle) and the break of the resistance trend line (red) are signs which communicate to me that the bulls could have a very slight edge in the short-term.

The GU bullish rebound could last for a while and carry price to higher regions such as the Fibonacci confluence levels at:

  1. 61.8 retracement and -27.2 target at 1.63 (light blue circle)
  2. 78.6 retracement and -61.8 target at 1.64 (blue circle)

Price could be able to make a dip first (red arrow in screenshot) but then ultimately the trend of the week could be UP (green arrows). BUT… the down trend is strong and price could just as easily revert back into that trend this week. I think that the confirmation of a downtrend continuation is the break of the support trend line (purple) and the bottoms (purple circles). If price pushes through these support levels, then the long term trend is back into motion.

13- 10- 2014 gu 4 part 2


Despite the unsure prospects of the GU in the short-term, I am still expecting the daily downtrend to continue at one point or another, either upon break of the bottom and/or from the Fibonacci target and retracement confluences at 1.63 and 1.64. If price does retrace that high, then those levels would be the logical turning spots for more downtrend continuation. Basically the daily down trend remains strong and unless price breaks above the daily top at 1.6525 (dark red box), the chart tells me to remain bearish in the long run. The first bearish target is the -27.2 target (orange Fib in green box) at 1.58.

13- 10- 2014 gu d


The EURUSD and USDJPY seem to confirm the same analysis as the GU above. Both the EU and UJ are in strong, long-term USD up trends but price is retracing against that trend. The question, which always lingers in these cases, is whether the retracement is indeed completed OR whether the retracement will get expanded with more USD weakness.

The EURUSD is playing Fibonacci table tennis as well: price could break out for a bigger retracement up towards the 38.2 Fibonacci retracement (blue) OR it could break the support trend line and bottoms (purple) for a downtrend continuation (red arrow).

13- 10- 2014 eu

The exact same analysis is valid for the USDJPY: price is approaching the 38.2 Fib level, which could be the turning spot for the longer-term uptrend continuation. The very maximum retracement should be the 50 Fib; otherwise I would not consider the long-term trend to be up.

13- 10- 2014 uj


Join us with your analysis on the Majors and post your chart of 1 or all pairs down below. We will review your chart and provide feedback for free – don’t miss out on this opportunity.

Thanks for sharing this blog post and wish you Happy Trading.

wall-street-wallpaperFinding profits in Forex. Where were the profits hiding? I think they were hiding somewhere between cPanel Plus the 5 minute bar chart and the daily chart. One of the Forex topics that I often talk about in regards to  is why new traders should complete  with only the larger time frames. I consider a large time from to be an 8 hour chart or longer. Personally, I mainly trade the daily bar e-Cart chart because I like to get a big over view of the market without all the noise of smaller time frames. I find that this makes my decision process easier.

What about noise? I mentioned that noise is a reason why I don’t trade the smaller time frames. Noise, to me, are the constant waves and ripples that make the price action of a currency pair go up and down. Sure this can give you many opportunities to put in  trades but what I have found is that the more trades people put in on these smaller time frames, the more money they lose for their. Most retail traders simply don’t have the skill to pick enough winning trades to make it profitable and they also don’t have a system that will keep them out of a bad trade.

The truth behind why I love trading the website builder daily chart so much. Yes, it is true that the daily chart has less noise but the best thing about it is that you don’t have to check it so often. Trading daily bars doesn’t require you to sit in front of a computer all day watching the Forex market go up and down. Now, that I only trade the daily chart, I look at each currency pair that I trade once per day. I put on my trades and I’m done. I do have an app that lets me track my and how my trades are doing and I even sparingly check that.

I love the freedom that this type of best hosting trading can give me. The funny thing is that you can make these over arching type of day trade plays on the daily chart. For example, it isn’t odd to see me put on a trade chasing 50 pips or more when I see a engulfing candle stick pattern on my Forex chart. I also sometimes will trade a trend that looks like it is going to continue with a day trade like approach VPS me. By day trade, I mean that I will close this position or seek to reach my target within 24 hours.

So where are the profits? They are in the and seem to be hiding on the larger time frames such as the daily bar chart. As you can see, my method is all about simplifying things. I want to make as few as trades as possible and I want to set and forget my trades. Once I put on a trade, I let it run its course. I don’t alter it or add on to it. I don’t make any decision once I click buy or sell.


Foreign exchange rates affect not only a country’s economy, but also the average man in the street. If you purchase a foreign item or you travel internationally, you are involved in this massive financial market. Most individuals are normally affected by the exchange rate when they travel. It is not possible for you to pay for goods or services in Europe with a US dollar. Before you travel to Europe, you will have to convert some of your US dollars for Euros, or you can obtain Euros when you arrive in Europe.
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Many folks simply do not understand that Forex is a risky venture — as a result, they just jump right in. These are the same people who end up losing everything. If you’re interested in currency trading, you need to avoid a few simple mistakes. When you steer clear of these common mistakes, you should be able to do quite well.

The first thing is to never invest your money emotionally. Forex is not like your friendly Friday night poker game — there is much more involved and you can stand to lose a lot.
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A country’s foreign exchange rates are an indication of its economic health. Its exchange rate plays a very important role in its trade level. It is for this reason that rates are constantly scrutinized, analyzed and at times manipulated by government departments. For the individual investor, these rates often have an adverse effect on their portfolios.

Trading activities between countries is the main factor that affects currency rate fluctuations. When a country shows an increase in its currency rate, its export prices will increase, and its import prices will drop in the foreign market. The reverse is true when a country has a low currency rate. If a country has a low exchange rate, its trade balance will increase, but a high exchange rate will decrease its trade balance.

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There is no marketplace for foreign exchange trading, hence it is necessary for traders to use a broker to help them in their trades. There are many brokers in the market, but choosing the right one requires caution as it can become quite overwhelming to decide on the most suitable broker.


The U.S. has regulatory compliance rules when it comes to forex brokers. A reputable broker will normally be a member of the NFA, which is the National Futures Association. The broker will also be registered with the CFTC, which is the Commodity Futures Trading Commission. You should check to see if the brokerage you are researching is indeed registered as a Retail Foreign Exchange Dealer and Futures Commission Merchant.

The NFA develops programs, services and rules to protect investors, traders and market integrity. The CFTC is a government agency that ensures the options and commodity markets are regulated. Their aim is to protect the public from abusive, manipulative and fraudulent activities.

Countries outside of the U.S. should have their own regulatory bodies and to protect your money you should only open accounts with brokers who are registered with these associations.

Trading Platform

The broker’s trading platform is your access to the market. You should ensure that the software and platform is simple to use and suits your trading style. It should offer you a range of analysis tools and various charts, graphs and reports. You should be able to enter and exit all your trades with ease. Important tools to look for in the trading platform are the ‘sell’ and ‘buy’ buttons. These should be in a prominent place, easily accessible and it would be better if the platform provided you with a ‘panic’ button which will close all your open positions. A trading platform with a badly designed interface could cause you to lose money unnecessarily.
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Your first move in getting your small business online is to register a domain.

Your domain name is simply an web hosting address on-line in which your https://ausweb.com.au/ are going to use to locate your webpage or ecommerce store. It’ll also permit you to generate a company wide email solution, enabling you to connect more efficiently with your clients and distributors.

Domain names are classified by their extension, with the most common being .com or .com.au. There are numerous other extensions available including .biz, .org and .info. You are not restricted to the volume of domains which you could buy, but Australian domain name regulations do need a valid ausweb data center ABN or ACN to be presented ahead of registration may be completed.

In the case of a brand-new name, as you are not able to register domain names straight-out, what can be done is usually to register a name, which happens to be like purchasing a lease from the organization that runs whatever registry the extension is associated with. For example, any name with .au at the end of it is managed by auDA, the Australian Domain Administrator.

Choosing a domain name

Purchasing a domain for your company is painless, however there are certain relevant preferences to give some thought to. By reseller web hosting selecting the right name for use in your web based business you are going to be reassured that your choice of customers are able to find you easily.

If possible your domain address will correspond to your present brand name. Although many people might use a search-engine to locate your small business online, it is still imperative that you use a name that matches your present business name. This tends to reduce the risk of confusion for your clients and help to build a consistent appearance all through your other business materials along with business cards and printed letterheads.

New Domain Extensions

Right up until recently there initially were just twenty-two domain name extensions including .COM, .NET and .ORG. Gradually there is going to be 700+ new magento hosting extensions specific to your trade, interest, location or region. For the first time, there will also be domain extensions in non-Latin characters Arabic, Chinese and dialects depending on the Cyrillic alphabet.

With increased domain extensions readily available, it is easy to finally use a domain that tells people what precisely you do. Even reach out visitors the place you do business with a domain that identifies your city or region. These domain names are all amazing, so your odds of possessing the web address you genuinely want are considerably better they’ve been in a long time.

Examples of these new domain name extensions include things like menu, .systems, .management, .enterprises, .directory, .today, .center .guru, .clothing and .photo domain names.

You will be able to see the total list at https://ausweb.com.au/domain-names/new-domains/

Picking out your domain name

Your first thing you should do is see just what names are available to you. You can use the Ausweb domain checking service to easily evaluate which domain names can be bought for your online business at https://ausweb.com.au/domain-names/

Buying a domain to suit your needs is easy, but there are a number of relevant decisions to consider.

If a certain name is not available then you might prefer to consider using a alternative on that name, but bear in mind to keep your customer’s in mind so the domain address is a breeze for them to always remember and type in. Multiple domain names can be purchased at once permitting you to encompass many  geographic locations that your business is operating in, or specific services or products you are going to provide.

Renewing your domain name

A domain is renewed upon a recurrent schedule. For .com.au domains this is every 24 months, whilst for .com, .biz and .info this could be a particular duration of 1 to 10 years dependant on your business needs. Domain renewal is controlled automatically and assuming that your details and email address are current your domain name ought to renew with no issue. If you don’t need the use of your domain simply request that the automatic renewal be disabled and it will absolutley terminate on the very last day of it’s current term. Remember that your webpage and e-mail are linked with your domain and of course, if your domain ends these services won’t operate.

Breaking an important top or powered by ausweb always provides fireworks and spectacular sights. These decision spots will raise the question: will price manage to sustain its momentum, gains and continue or will price reverse? A variety of scenarios can develop during this time of uncertainty:

  • Massive impulsive breakout
  • Break, pullback followed by continuation of the breakout
  • False breakout and reversal
  • False false breakout and continuation
  • Price lingers and consolidates

Forex traders are able to gain a winners edge when they correctly anticipate which scenario will unfold. You can use experience, tools and strategies to lift those odds, but be aware that nobody will reach perfection.

In today’s FX market there are at least 2 currency pairs that have a break of a top or bottom: the EURJPY and USDCAD.


The EURJPY recently pushed up higher and broke a resistance trend line (orange) BUT the break turned out to be a false breakout and price reversed strongly (blue circle). Currently, the EURJPY is in the same breakout situation (with a bottom instead). Let’s compare the two.

15- 10- 2014 ej w


The first breakout had a big weekly wick on top of the candle, which is a candle stick pattern called “shooting star”. By the end of the week the bulls were clearly not in control. In these scenarios a breakout can easily turn into a false breakout and indeed the bears capitalized on the subsequent reversal.


With the current breakout Forex traders will need to have patience. The weekly candle is a doji (when making the screenshot) BUT the candle is far from closed. When this week’s weekly candle does close, it will provide a great clue as to whether the break of the bottom and support trend line (purple weekly) is:

  • False (wick on candle) à longs are preferred BUT be cautious of the resistance lines (orange)
  • Strong (close near candle low) à shorts are preferred BUT be cautious of the various layers of support lines (green lines and circles) as the road down could be bumpy

So far the break is not looking that great on the daily chart (decent sized wick on bottom – blue circle):

15- 10- 2014 ej d


The US Dollar is having a struggle against the Yen, Aussie and Euro but is gaining versus the British Pound and the Canadian Dollar.

The USDCAD has in fact pushed through the daily top of 1.1270 (from March) and is setting a yearly and decade record (blue circle).

This week’s weekly candle is looking strong so far but I will wait patiently till the end of the week to see whether the bulls remained in control.

15- 10- 2014 uc w

On the daily chart price I can see that price is right at the top of the uptrend channel (blue). Price could therefore go sideways for the rest of the week. Assuming that the USDCAD will not encounter a false breakout, I would be interested in longs from the broken top and other support levels.

The bounce zone (green circle) would seem the most logical for a long position and uptrend continuation with a stop loss below the bottom (red line). Main target is 1.15.

15- 10- 2014 uc w 15- 10- 2014 uc d


Do you agree with the USDCAD trade setup?

What do you think the chances are of a false break on the EJ?

Thanks for sharing this article and happy trading.


The GBPAUD is known as a “fast mover”. It typically covers more pips in a few hours than some pairs do in a day (or more). Whether a Forex trader likes it or not, impulses on this pair last long (in time) and go a far distance (in pips). Hence, the profit potential is massive; yet so are the risks. Recently,

3 price has gone more “bonanza” than usual.

Here is the story:

Last week the GBPAUD had a massive spike up: price covered almost 1,500 pips in 18 days. That is the same pip size of the EURUSD downtrend from the high of 1.40 to the low of 1.25 – yet it took the pair almost 4 (!) months to complete.

What next?

It’s time for you to be the detective and search for clues! This is, of course, followed by an analysis just as proper detectives do.


Clue #1

The GBPAUD has been in a bigger long-term uptrend. The bottom of the last swing has not been broken (purple circle) and when placing a Fibonacci retracement on this swing, it is clear that the GBPAUD bounced strongly at the 78.6 Fibonacci retracement (green) level.

14- 10- 2014 ga 1

Clue #2

The massive momentum caused price to break through the rays of various resistance trend lines (purple). All of these trend lines are correct (read more here) and could act potentially as future support (if price retraces lower).


Clue #1

The most interesting piece of information is the fact that the GBPAUD started the week with bearish daily engulfing twins (purple box), which could set a bearish tone for the entire week of trading. The bearish twins also broke any bullish expectations of uptrend continuation: the up spike swing is finished.

14- 10- 2014 ga d

Clue #2

The other interesting fact is how the daily chart neatly respected various Fibonacci levels starting with the 38.2 Fib, then the -27.2 target, the 50 Fib (although shortly) and then recently the 61.8 Fibonacci level. See the red circles at the magenta Fib tool in the screenshot above for a better view.


The ambitions of the bulls are low and have been put in the fridge for the moment, but the bears are not dominating either. Price has yet to break the most recent bottom and hence a triangle could always occur (purple circles and lines). No winner can be predicted until price breaks away from this zone:

  1. Bullish territory is above the triangle (light green circles)
  2. Bearish territory is below the triangle (red circles)

14- 10- 2014 ga 2

Once price does break higher or lower I will be cautious with the Fibonacci levels:

  1. To the upside I see the 78.6, 88.6 and 100 Fibonacci levels (orange) and the -27.2 target (blue) as resistance (red arrows).
  2. To the downside I see the broken trend lines (green) and at the 38.2, 50 and 61.8 Fibonacci levels (blue) as the primary support levels (green arrow). The lower 78.6 and 88.6 Fibs could be stalling spots but a downtrend continuation towards the -61.8 target seems more likely at that moment (dark red arrow).

These are the bear and bull lines, their targets and future bouncing spots in my opinion.

What is your TRIGGER for the GA? Let us know or post a screenshot!

Happy Trading

Our series on TREND LINES in the Forex market continues with part 3. Today we focus on explaining the psychology behind steep trend lines, how to use steep trend lines for breaks and bounces, and other interesting tips on trend lines.

If you would like to review part 1 OR part 2 of the “Number 1 Handbook on Trend Lines” again, you can do so by clicking here (1) and here (2).


First of all, what is in fact a “steep” trend line?

A steep trend line is typically a line with an angle of roughly 40 degrees or more. Basically, a steep trend line means that price action is moving very impulsively (with lots of momentum/thrust).

9- 10- 2014 TL 1

Momentum is awesome because traders are able to hit bigger targets quicker. For instance whereas a correction could take 4 days and bounce up and down between a range of 75 pips, impulsive price action could move the same number of pips or more within a few hours. Let’s discuss some more specifics.

Impulsive price action occurs when candles are regularly making new higher highs and higher lows or lower lows and lower highs. Or in other words, price is moving quickly into one direction the majority of the time. In these cases price keeps falling and falling OR rising and rising without much pause. Contrary to corrective price patterns, the impulse is less complex and pretty straightforward: it’s all about the up and down momentum. The impulse often is quick and is a great deal shorter than corrections – roughly 3 to 4 times shorter.

9- 10- 2014 TL 2


Traders can trade impulses the following way:

  1. PRE & POST BREAKOUTS: entering before the impulse in fact happens OR just after the break of a chart pattern – see part 2 where breakout trades are discussed in more detail.
  2. DURING IMPULSE: taking a trade during an impulse. Impulses will not last forever, but sometimes do last longer than traders imagine!
    1. BOUNCES OFF OF STEEP TREND LINE: when trading impulsive price action, it could be best to zoom into a lower time frame chart and trade the bounces off of the steeper trend channel or line. Traders can also use trend lines on lower time frames to trade mini breakouts of shallower trend lines.

9- 10- 2014 tl 3

    1. BREAKS WITHIN STEEP CHANNEL: if price has moved a considerable distance and price is far from the last chart pattern, then trading the impulse is not advisable because the chances of the impulse stopping (soon) are high (and price will start a new correction). If a trader is already in the trade, then they can use these steep trend lines as a trail stop loss and exit point when price breaks to the oppose direction.

9- 10- 2014 tl 4

    1. REVERSAL BREAKS OF STEEP TREND LINE: reversal traders could use the same steep trend line as an entry point for their reversal trades (only manageable with lots of experience). For instance price is moving down impulsively and after a while the downside impulse ends. Price then starts to break above the resistance line. This could merit an entry to the upside. This is a more aggressive way of trading and is only advisable with more experience and if the bigger trend is aligned with the breakout direction.

9- 10- 2014 TL 5

EXERCISE: practice the above by drawing 1 trend line on an impulsive part. Post the chart down below.


When drawing trend lines you must realize that the market is not “perfect” and therefore trend lines do not need to be “perfect” either. As explained in part 1, trend lines cut through wicks and even parts of candle sticks. Here are some additional tips and tricks when drawing trend lines on the charts:

  1. The starting point of your trend line does NOT have to be the (major) top or bottom. There is no rule whatsoever that states that all trends MUST originate at the bottom or top. Trend lines can be great trend lines even if the origin of the trend line is using a level which is not considered to be (an important) top or bottom.

9- 10- 2014 TL 6

  1. Drawing multiple trend lines on the chart provides more information and there is no rule that limits their use. The only danger is paralysis of analysis and traders need to make sure that the chart is not overcrowded and remains readable and understandable.
  2. Drawing multiple trend lines on the same tops or bottoms but at different angles is also good because the market is potentially able to use multiple support and resistance lines. By drawing 2 or 3 trend lines, a trader creates a zone of support and resistance rather than 1 single point of reference.

9- 10- 2014 tl 7

  1. Trend lines can be pointed in all directions. Just because price is in an uptrend does not mean all trend lines must be down too – or up. Trend lines can be pointed up and down regardless of the trend.

9- 10- 2014 tl 8

  1. The angle of the trend line will alter depending on how much a trader zooms in or out. When the trader zooms in a lot, the angle will seem shallower than if the trader is zoomed out more. The angle of the trend lines becomes steeper when a trader sees ultra tiny candles (heavily zoomed out). The rule of thumb is that traders should have roughly 150-200 candles on the graph, which provides the best balance for identifying trend line angles. Anything less than 150-200 bars means that the angles of trend lines are too shallow; anything more than 150-200 bars means that the angles of trend lines are too steep. The rule of thumb is valid for all time frames. For an hourly chart, this means that the optimal balance is having 6-8 days worth of price action on the chart. For a daily chart, this means that the optimal balance is having 150-200 days worth of price action on the chart.

EXERCISE: practice drawing multiple trend lines using the above tips. Post the chart down below.


Next week’s article (part 4) will review how trend lines and trend channels interact and why using the two concepts in tandem is such a powerful trading strategy. Don’t forget to post the exercises down below. Thanks for sharing this article and wish you Happy Trading and a nice weekend.