Arm Holdings (ARM): Decoding the Recent Surge
The recent exponential surge in the share price of chip maker Arm underscores the fevered speculation gripping the AI sector. Arm, despite not being directly involved in AI, has become a focal point of attention due to its strategic moves in diversification, particularly in markets like automotive, and the sale of...
GBP/JPY’s recent price action has formed a bullish Break & Retest pattern – an underrated pattern which represents a structured way to navigate breakouts.
Here’s the three key components of GBP/JPY’s Break & Retest pattern:
1. The Breakout: On Tuesday, GBP/JPY made a decisive move higher, breaking above a significant resistance level.
2. The Retest: ...
Welcome back to "Mind Over Markets," where we delve into the intricacies of trading psychology. In Part 1, we explored the concept of asymmetric payoffs. Now, in Part 2: Think Big, we unravel the impact of the often-overlooked cognitive bias – the Law of Small Numbers – and how mastering it can turn fear and greed in your favour, urging you to think in large...
With US inflation data hitting our screens this afternoon and European GDP scheduled for release tomorrow, let's delve into the technical outlook for EUR/USD leading up to these pivotal data releases.
EUR/USD Key Data Releases
Tuesday 13th Feb 13:30 (GMT): US Consumer Price Index ex Food & Energy (YoY)(Jan)
Tuesday 13th Feb 13:30 (GMT): US Consumer...
FTSE Respects Fib Levels Within Long-Term Range
The FTSE 100 has been locked in a well-defined trading range since last summer. The market has failed to break above the resistance zone on multiple occasions and we have also seen several swift bounces from the support zone (see chart below).
Within the context of this long-term trading range, we can use key...
Mind Over Markets Part 1: Asymmetric Payoffs
Welcome to "Mind Over Markets," a three-part miniseries designed to give you some practical tips to help you deal with the psychological stresses of trading.
In this first instalment, we explore the concept of "asymmetric payoffs" within the realm of trading psychology – a notion that suggests making small,...
As China ushers in the Year of the Wood Dragon this weekend, government-backed initiatives are breathing life into the country's struggling stock market.
The Fall: A Crisis of Confidence
In the lead-up to the Chinese New Year, Chinese stocks faced significant headwinds, prompting a decline that wiped out nearly $2 trillion in market value. Several factors...
US Job Growth Soars, Dashes Rate Cut Hopes
The unexpectedly strong non-farm payrolls data released on Friday has reignited a rally in the US dollar for several reasons. The robust job growth of 353,000 in January, nearly double the expected figure, has instilled confidence in the strength of the US economy.
Positive Economic Outlook: The impressive job...
In the final part of our Indicator Insights series, we explore Keltner Channels , particularly their application in identifying mean reversion opportunities known as 'snapbacks.' We reveal modified Keltner Channel settings that can help active day traders identify short-term turning points, we look at the advantages of this approach, and run through several...
Trading Update Creates Catalyst for Breakout
easyJet released a market-beating trading update last week which has created the catalyst required for a major breakout.
The trading update, covering the quarter ended 31st Dec 2023, painted a positive picture of easyJet's financial performance and outlook. Despite facing headwinds from the conflict in the Middle...
Oil Jumps as US Military Base in Jordan Attacked
The Middle East powder keg came into sharp focus again this weekend following a drone attack by Iran-backed militants on a US military base in Jordan. President Joe Biden reported three service members were killed in the attack.
These casualties mark the first time US troops have been killed in an attack in the...
In this fourth instalment of our Indicator Insights series, we delve into the Modified MACD , a refinement of the classic MACD (Moving Average Convergence Divergence) introduced by Market Wizard Linda Raschke and trading author Adam H. Grimes. This modification aims to provide traders with a more streamlined and focused tool for trend reversal identification and...
Last week, we published the third instalment of our Indicator Insight’s series titled “A Different Way to Use RSI” in which we looked at using the RSI for buying pullbacks – see link at bottom of this page.
As a brief overview, the RSI dip-buying strategy looked for a trending move higher that had enough momentum to send the RSI into over-bought territory,...
As the S&P 500 achieves new highs, we delve into the conflicting factors influencing its potential sustainability.
S&P 500: Bullish Technical Backdrop
The S&P 500 rallied over 13% in the last two months of the year, driven by expectations of Federal Reserve rate cuts. However, as the new year unfolds, economic data revealing persistent inflationary...
In this instalment of our educational series, Indicator Insights, we shift our focus to the Relative Strength Index (RSI) , exploring a non-traditional approach that harnesses its power to identify strong momentum stocks.
While the conventional use of RSI is often associated with overbought and oversold conditions, our alternative method employs RSI as a...
With EUR/USD treading water within a tight range, let’s take a trip through the timeframes to explore where the balance of probability lies.
Weekly Timeframe: Tightest Range in Over a Year
Last week’s trading range on EUR/USD was tiny at less than 90 points. To put this into context, prior to last week, EUR/USD weekly average true range was 168 points. We...
Conflicting Factors Cause Volatile Start to the Year
The global oil market faces a turbulent start to 2024, navigating a complex interplay of factors that have sent prices on a rollercoaster ride. Saudi Arabia's unexpected price cuts, causing a nearly 4% drop in Brent crude on January 8th, hinted at the world's largest oil exporter's commitment to maintaining...
Trade management is tough. You’re having to make split second decisions with hard-earned money on the line. There is a great deal of column inches dedicated to trade entry, but consistent and effective trade management is often what makes or breaks a trading account.
In this second instalment of our Indicator Insights series, we’ll turn our attention to the ...
