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The EURUSD Failed Technical Turnaround Day Trading Strategy

Use a 1-minute EURUSD chart for this day trading strategy, during the London and/or US session. The strategy is best applied between 3 AM EST and noon EST. A failed technical turnaround occurs when a technical turnaround fails (read that article first). We have isolated a trade trigger for the technical turnaround, but instead of…

Use a 1-minute EURUSD chart for this day trading strategy, during the London and/or US session. The strategy is best applied between 3 AM EST and noon EST.

A failed technical turnaround occurs when a technical turnaround fails (read that article first). We have isolated a trade trigger for the technical turnaround, but instead of moving in the new direction, the price moves back in the old trending direction. In other words, the turnaround or trend-direction-change failed.

The technical turnaround (“tech turn” for short) typically produces a number of trades during the timeframe. By incorporating failed tech turns we get more signals, which means more trading opportunities. Add in the EURUSD Session High Low Strategy for more possible day trades.

Failed Technical Turnaround Day Trading Strategy

To understand the failed tech turn, we need to understand the setup for the tech turn, because only one thing changes. Here is the setup for the tech turn.

1. That basic concept of the strategy is that we need to the price to move back up to near a prior swing high after a decline, or back down to a prior swing low after a rally. [This is what indicates a possible trend change.]

2. The price must then make at least one small price swing before consolidating. [This price swing can’t move far enough to trigger a tech turn in the other direction…because then we have a setup going the other direction.]

3. The price must then break out of the consolidation in the expected direction to trigger a trade.

4. A stop loss goes just outside the opposite side of the consolidation.

5. The simplest profit target is placed at a 2:1 reward:risk. For example, if risking 3 pips on a trade (approximate height of consolidation), place a profit target 6 pips from the entry. If risking 6 pips, the target goes at 12 pips.

For the failed tech turn, everything stays the same, except number 3. Instead of breaking out of the consolidation in the newest direction, it breaks out in the old trend direction.

A tech turn is a possible trend reversal price pattern. But the trend may sometimes look like it is about the reverse, but then the old trend continues.

It is also possible that the tech turn will trigger, but then fail to reach the profit target, turn the other way and trigger a failed tech turn.

Below is an example of a failed tech turn. A swing low is made during an uptrend. The price drops back to that swing low. This is the first sign of a possible reversal. An uptrend requires requires higher swing highs and higher swing lows, so once the price drops back to the prior swing low, the uptrend is in possible trouble. 

There is another price swing, and then we are waiting for a consolidation. If this trend is to reverse to the downside (tech turn), the price needs to break out of the consolidation to the downside. It doesn’t. It breaks to the upside. Go long, in the direction of the overall uptrend. The price trend didn’t reverse.

A 2:1 profit target is used, and a stop loss is placed just below the consolidation.

If you decided to trade for a 12 period, below is how your chart could look on a given day. There were lots of trades this day; more than usual.

Assuming a risk of 1% on each trade, losing trades are -1% to account equity, and winning trades 2:1) are +2% to account equity.

Here’s more examples of how these strategies are used together. 

Don’t be Discouraged If This Looks Hard

Did you look at the charts and scratch your head? That’t totally fine, and expected. We need to train our eyes, and our brains, to see these types of patterns. I don’t see them all and I have been trading this way for years. I still look through my charts at the end of the day and say “How did I miss that one.” Yet even if you miss a few trades, there are still lots out there you will see…with practice.

I suggest you print off the chart examples (rotate them vertically and then print them, so they are nice and big). Study them. Ask yourself “What the hell is he doing?” Look at the price waves, compare them, and then you may start to understand a trade. 

Then you may be able to spot one or two. Then you start noticing more. It is a process.

Some Additional Notes on the Failed Tech Turn Strategy

Look for examples of the strategy on your own charts, then decide how you want to utilize the strategy. Create your own personal rules and checklist. Practice in a demo account and make sure you can trade the strategy profitability before attempting it with real money. This strategy requires thinking ahead and quick reflexes. 

I typically use market orders (with a target and stop loss attached) to buy or sell when the trade triggers. You could also put stop entry orders (with target and stop loss attached) just outside the consolidation to be triggered if the price moves out of the consolidation.

As for whether the strategy works on other pairs or time frames, I don’t know. I only use this strategy on the 1-minute EURUSD chart. It may work on other time frames and currency pairs, but check it out yourself before attempting to implement it.

For help in understanding the tech turn and failed tech turn, its important to understand price action. Here’s a video on analyzing price action.

Cory Mitchell, CMT

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

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Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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