Nick's Forex Blog
Hey Guys,
This is set t be a very interesting week. The price is stuck between strong support and strong resistance. It will likely bounce between to two areas but after the bulls shows of power last week a bullish move would not surprise me.
Check out the video below for this weeks full analysis.
If you find the analysis useful and/or want to add something please leave a comment below!
I shared my S+R zones in last weeks EUR/USD & GBP/USD analysis.
Hey Guys,
Time for some weekly analysis. This weeks analysis is not too different from last weeks. If you look back to last week you will see everything was pretty much spot-on. We are hitting some very strong support areas right now and it is getting tougher and tougher for the bears to maintain their momentum.
Check out the video below for this weeks full analysis.
If you find the analysis useful and/or want to add something please leave a comment below!
S+R Zones comes in groupings of three:
Upper zone
Center
Lower Zone
1.3075 – Zone
1.3057 – Zone
1.3037 – Zone
1.2962 – Zone
1.2946 – Zone
1.2929 – Zone
1.2873 – Zone
1.2863 – Zone
1.2852 – Zone
1.2795 – Zone
1.2778 – Zone
1.2764 – Zone
1.2676 – Zone
1.2650 – Zone
1.2625 – Zone
1.2675 – Zone
1.2487 – Zone
1.2460 – Zone
1.2337 – single line
1.2171 – single line
1.1917 – single line
1.5514 – Zone
1.5506 – Zone
1.5498 – Zone
1.5465 – Zone
1.5457 – Zone
1.5450 – Zone
1.5424 – Zone
1.5416 – Zone
1.5409 – Zone
1.5373 – Zone
1.5365 – Zone
1.5358 – Zone
1.5326 – single line
1.5269 – single line
1.5216 – single line
1.5178 – single line
1.5147 – single line
Hey guys. After an awesome holiday period I am back in the saddle trading and what better way to kick of the new year than with some price action analysis!
Today I am going to take a look at GBP/USD. I will be sharing my support/resistance areas with you including the extreme lower lines which could be reached in the coming months.
Let’s start off with the weekly chart and then move to the lower timeframes.
Ok as you see the marked 500 pip area between 1.5200 and 1.5700 shows quite a bit of choppiness historically. This means that this area is going to be extremely tough to break through on the short side. Whilst it does seem that the price is trying to get through it certainly isn’t an easy road.
Based solely on support/resistance the path up (the long side) is much easier than the path down (short side). Keep in mind that the lower the price goes the more buyers it will encounter trying to push it up.
You can see my support/resistance areas marked out on this chart. These lines were placed on the hourly chart so they look very closely spaced together on this weekly chart.
The daily chart shows much the same thing. Whilst right now it looks like the price wants to move down, as you can see from the bearish trend line, it will hit a lot of support on the way down.
As you can see on the 22nd of September the price made a significant low pushing down to the 1.5325 at which point buyers flooded the market and turned the price around. This was repeated on the 6th of October when the price hit the 1.5270 level. So even though it seems the bears are in control of the market do not count the bulls out. The lower the price goes the more likely we will see a huge influx of buyers.
The first red line I have marked on my chart from the top is the 1.5325. Since July 2010 the price has been unable to make a sustained move beyond that level. It did dip below briefly last October as mentioned above but the move was not sustained, the buyers immediately turned the price around.
The 4hr chart does not show us anything new. Again we can clearly see an overall bearish trend. However, we can also see the support/resistance are I have marked 1.5355-1.5375 has held the price back the last two times it was reached. Right now it has pushed slightly lower but it is still struggling with the level.
From the analysis it is very clear that the bears currently have a firmer control of price. However, they are approaching an area which has a lot of buyers. So I am watching closely for a significant reversal from one of the next few red S+R lines you see on my chart. I will looking for trades on the 1hr, 4hr and Daily. If the bulls do gain control of the market it should make for a very nice reversal trade.
Have you heard that 90% of new Forex traders fail? I am sure you have, everyone has. One point I always try to get across to new traders is the majority of new traders fail why do what the majority do?
It is actually pretty logical when you think about it.
The majority of new traders fail —> If you follow the majority you become part of the majority —> If you become part of the majority you will fail.
I discuss this in more detail in Lesson 1 of the free Plan, Implement and Make Pips video course.
Avoid the hype – Every now and then a hyped up holy-grail-system comes along that promises to revolutionise your trading. Generally these systems promise easy trading with little to no time investment. It sounds so appealing that the hype around it grows and soon enough every newbie in Forex is trying to trade it. These systems NEVER LAST, why? Simply because they do not work in the long term.
Be wary of forums – Forex forums can be useful for asking simple questions. However, they tend to be a breeding ground for dumb ideas and half-assed analysis that suck newbies into bad trades. Go check out Forex Factory for example. The forum is full of trading system threads and analysis threads. New traders tend to migrate from thread to thread every few weeks because they can never find consistency. I will let you in on a secret….. consistency is not hidden in the pages of a Forex forum. Consistency comes through understanding, experience and planning.
There are thousands of newbies jumping around forums every day looking for the answer to their trading problems. Do not be part of the pack, do not do what they do!
This week’s tip is short but sweet. In Forex it is extremely easy to fall into a losing streak. In the flash of an eye a few bad trades can turn into a lot of bad trades. There is an easy way to avoid this though…..
If you lose three trades in a row take a break from Forex for a few days. I call this the ‘Three Trade Rule’.
I have written about the Three Trade Rule so I wont repeat myself. Just visit the link to read about the rule and how it can help you.
If you know much about me and what I try to do with Forex4Noobs you know that my ethos is to keep trading simple.
Last week I spoke to a newbie who is having a tough time finding consistency in his trading. This newbie went on to tell me that he is trading four systems/methods and not a single one is working…
You can probably guess what I told said to him.
KEEP IT SIMPLE!
KEEP IT SIMPLE!
KEEP IT SIMPLE!
Especially as a newbie you need to keep your trading simple. Trying to juggle multiple trading systems/methods makes your trading complicated.
If you want to succeed in the easiest and quickest way possible you need to simplify your trading. So if you’re trading multiple systems/methods and are struggling pick your best performing system/method and trade it exclusively for 2 months. If you find the system/method you choose does not perform well consistently move on to another one. However, do not complicate your trading by using more than one method/system at a time.
Hey Guys,
Just a reminder about the free World MoneyShow London it is only a few days away now.
Start: Fri, Nov 11, 2011 09:00 GMT
End: Sat, Nov 12, 2011 09:00 GMT
Address:
Queen Elizabeth II Conference Centre, Broad Sanctuary,
London,
United Kingdom
You can register for the MonayShow for free.
I am starting a new series of posts with a simple tip every Tuesday. Here goes……
I know this tip is somewhat redundant and I would wager the vast majority of people reading this already know the basics. However, last week I spoke to a newbie trader who did not know the basics, this is how the conversation went…
Newbie – I just lost on my EUR/USD trade?
Me – Hmmm I see no trade on EUR/USD, was it a long or a short?
Newbie – What do you mean by long or short?
Me – Did you buy or sell EUR/USD?
Newbie – I bought it of course, why would I sell?
Me – Well obviously if you saw a short set-up you would have sold?
Newbie – What do you mean by sell? How can you sell a pair before you buy? You only sell to close your trade.
The conversation went downhill from there. The newbie in question has been trading for 6 months and he still does not understand that you can open short positions in Forex.
Learning the basics is vital to your success as a trader. So for all of you newbies who do not know the basics…. Go through the Forex Education section.
Hi Guys,
I just want to let everybody know that the Super VIP course and forum have been reopened. Traders who want to learn to make consistent profits faster, in any market conditions, will benefit the most from Super VIP.
However, I can only take on a set number of students at a time so there are only 5 spaces remaining. I spend time personally helping and training Super VIP members, so taking on a large number of new members at a time is impossible.
If you want to be one of the lucky few to join me on the inside of Super VIP then please hurry, as spaces are allocated on a first come first served basis.
Once we have 5 more new members Super VIP will close until further notice.
I look forward to seeing you on the inside. Click here to join Super VIP!
Hey Guys,
I try to make posts two weeks before any major Forex expo/show/conference. However, I do not want to make three separate posts this week about expos so I am containing them all tot his post.
Start: Wed, Nov 16, 2011 13:00 GMT
End: Sat, Nov 19, 2011 13:00 GMT
Address:
Caesars Palace, 3570 Las Vegas Boulevard South,
Las Vegas,
United States
Price: FREE
From their site:
Attend and Learn Expert Strategies for Pulling Profits from the Markets
The intensity involved in making the quick decisions required to be a successful trader is stressful and can be difficult to maintain. The Traders Expo provides a chance to take a productive step back from the trading screen and look at the overall markets from a broader perspective. There’s no better time or place to see what the best traders are doing, assess your methods, and regain your focus. Thousands of traders are more skilled, more knowledgeable, and more confident as a result of attending The Traders Expos. Join your fellow traders at the next Traders Expo and experience it for yourself.5 Reasons to Attend FREE
- Learn Specific Strategies That Work from Top Trading Pros
- Network and Exchange Ideas with Other Traders
- Gain a Broader Perspective of the Markets
- Find the Tools You Need to Make the Best Trading Decisions
- Get the Best Trading Education Money Can Buy—For Free!
I obviously will not be going since I am not in the U.S. but you yanks should go if you can!
Start: Thu, Nov 17, 2011 18:30 GMT
End: Thu, Nov 17, 2011 23:00 GMT
Address:
Quai du Mont-Blanc 13,
1201 Genève,
Switzerland
Price: Free
Everybody agrees that daily formalities, procedures, and extreme pressure we go through raise the necessity to break the misconception about tiresome professionals from banking industry.
“The Geneva Forex Event” is breaking misconceptions about us – bankers and this magnificent city. It appears as a great solution to bring a fresh airstream and to make a change needed every now and then.
Start: Fri, Nov 18, 2011 08:00 GMT
End: Sat, Nov 19, 2011 08:00 GMT
Address: Radisson Slavyanskaya Hotel MoscowAddress:Station is accessible, Europe Square, 2,
Moscow,
Russian Federation
Price: Free
MOSCOW FOREX EXPO 2011 – is a meeting for beginners and professionals of Foreign exchange market. On November 18-19 they will gather again at the exhibition hall of luxury Radisson Slavyanskaya hotel.
The event was organized specifically for those who values money and would like to find answers to all their financial questions. Main goals are: to acquaint exhibitors with new trends of financial markets, suppliers, establish contacts with potential customers, as well as maintain communications with existing customers.
In addition, this project gives the opportunity to improve image of company-participant and identify customer preferences, increase demand for the services of participants. Visitors will have the possibility to choose from a variety of companies the most reliable partner.