Edge Forex

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  • Forex News January 27, 2021

    Forex News January 27, 2021

    #edgeforex #trading #market #money #forex #countries #dollar #currency #pairs #hawkish #fed #trade #crypto #bitcoin

    Currency Pairs

    GBP/USD

    • GBP/USD falls to one-month lows on firmer dollar.
    • Cable falls to its lowest level since December 28th as the dollar strengthens following the Fed’s decision.
    • Cable has now broken through support between 1.3436-55, resulting in new monthly lows.
    • Keep the pair below the support range of 1.3436-55 (this week’s lows to the 50.0 retracement level) and sellers will hold the next move down in the pair. That will be the key thing to keep an eye on as the day comes to a conclusion. If this is the case, the 1.3400 level may provide some little support moving ahead, but the decline may continue to the 38.2 retracement level at 1.3385 next.
    • If it loses way, cable will be on a steep slope all the way back to 1.3200. It’s all about the dollar right now, and with risk looking jittery and markets having to consider a potentially more hawkish tilt ahead of March, it’s difficult to bet against it, especially when the charts are also on its side.

    AUD/USD

    ·      The AUD/USD is vulnerable to a decline towards 0.7000 in the near future.

    ·      The pair is currently down 0.5 percent on the day, trading at 0.7070, its lowest level since 7 December.

    ·      It may not appear to be much, but sellers are currently aiming to keep a break below 0.7100 and the support level of 0.7082-00. As a result, because there is little else standing in the way, this will serve to provide a solid foundation for a further negative push towards 0.7000.

    NZD/USD

    • The downside pressure on the NZD/USD has increased as the Fed has become more hawkish.
    • The NZD/USD is down 0.7 percent to 0.6600, but the losses might be far from done.
    • The pair fell below the critical 0.6700 zone earlier this week, as well as past the 61.8 retracement level @ 0.6702, and sellers have since built on the bearish breach.
    • The Fed’s more aggressive tone yesterday compounded the slide, with the pair currently down 0.7 percent on the day at 0.6600.
    • As things currently stand, there is little resistance to a push towards 0.6500 in the near future.
    • Beyond there, there is further support from the 50.0 retracement level @ 0.6467, which will be the first important target for sellers.
    • For the time being, though, given the risk environment and the market’s beginning to price in a more hawkish Fed, the dollar might find some further legs as technical breakthroughs across the board play out.

    EUR/USD

    • EUR/USD falls to new two-month lows as the dollar remains robust post-Fed.
    • EUR/USD eases to just below 1.1200, its lowest since November 24.
    • The pair is now testing support around the 1.1200 handle, with the November low At 1.1186 coming into focus.
    • A break below that might mean further danger to the downside, perhaps opening the door to 1.1000.
    • The dollar has continued to rise today, riding the post-Fed atmosphere and developing solid beliefs across the board. GBP/USD is presently trading at 1.3400, while AUD/USD has dropped to 0.7070, with limited room for a decline below 0.7000. NZD/USD is also striking new lows since November 2020, falling to 0.6600, with no support predicted until 0.6500 next.
    • The Fed’s more hawkish stance yesterday is the primary driver at the moment, and while the reality of a rate rise at every meeting this year isn’t written in stone, Powell didn’t deny it yesterday. And this is enough to get markets moving immediately in order to take a run at the important technical levels mentioned above.
  • Fed Meeting To Tame Inflation

    Fed Meeting To Tame Inflation

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #uncertainity #inflation #fed #meeting #tame #bitcoin tame


    Federal Reserve policymakers are likely to reveal plans for their first interest rate hike since 2018 and to discuss shrinking their bloated balance sheet as they seek to curb the greatest inflation in almost 40 years. After a two-day policy meeting Wednesday, the Federal Open Market Committee is very expected to keep its benchmark rate around zero while adhering to its plan to reduce asset purchases and end them in March. 

    The unemployment rate in the United States has below 4% till the last month. And the FOMC is likely to announce that the economy is at or near full employment and that a first step toward higher interest rates may be acceptable soon, maybe at the March 15-16 meeting.

    In their December “dot plot,” policymakers pencilled in three rate rises in 2022, and a number of Fed officials have favoured a March move. 

    At the January meeting, it is predicted that rates would stay stable and the present pace of tapering will be continued. The major purpose of the meeting is for the FOMC to signal a March rate rise and balance-sheet runoff this year, which we anticipate it to do carefully, underlining the uncertainty and downside risks to growth given that we are still in the midst of the omicron wave.

    The FOMC is planned to conclude asset purchases in March, as Powell stated in his congressional testimony, while some economists believe the committee may consider halting bond purchases sooner. 

    Statement by the FOMC is expected to proclaim that the US labour market has continued to make progress toward the Fed’s employment targets. That, when paired with above-trend inflation, the Fed’s accommodation is likely to be removed shortly. The particular language will offer some indication of the amount of commitment to March, with a mention of “next meeting” implying that the rate decision has already been taken. 

    The announcement should make it apparent that a rate hike is on the way.

    Despite demands for the Fed to hike interest rates by 50 basis points in March, most economists polled by Bloomberg did not believe that was likely. In a televised broadcast on January 13, Fed Governor Christopher Waller advocated against such a step, while he did not rule it out in the future if necessary. 

    While the omicron variant has caused some weakening in recent economic indicators, with more employees absent owing to sickness, the FOMC may choose to disregard this and reiterate that economic and labor-market conditions remain favourable.


    The statement may be changed to remove the Fed’s mandate to employ the “full range of instruments,” meaning that asset purchases will soon be off the table, hinting to the balance sheet’s ultimate winding down later this year. 

    Monetary Policy Framework Previously, the FOMC authorised a statement on longer-run goals and strategy in January meetings, which it amended in August 2020 to emphasise its full-employment goal by requesting broad-based and inclusive changes. Despite considerable criticism, the approach is expected to be repeated with no revisions, as it did in January 2021.

    Conference of the Press Powell will almost certainly be challenged on the Fed’s plans for normalising policy, but with Covid-19 still affecting the labour market, among other dangers, he may opt to be careful in his statements. He’ll almost probably be grilled about the Fed’s plans to decrease its $8.87 trillion balance sheet, which the FOMC is expected to discuss further at this meeting.Powell was not anticipated to be concerned about the recent stock market dip, but he might opt to underline that the Fed is continually monitoring global economic threats and that its policies are flexible and data reliant.

  • Forex News January 26

    Forex News January 26

    #edgeforex #trading #market #money #forex #countries #dollar #currencies #trade #equities #elsalvador #experiment #indexes #crypto #bitcoin

    El Salvador

    • El Salvador Is Considering Abandoning The four-month experiment with Bitcoin may be coming to an end.
    • Bitcoin fell 0.6 percent on Tuesday, closing around $36,600, while Ethereum fell 1.1 percent. Other top ten cryptocurrencies experienced diverse dynamics, ranging from a 7.4 percent drop in Terra to a 2.3 percent growth in Polkadot. Over the last day, the entire capitalization of the crypto market fell 1.1 percent to $1.74 trillion, according to CoinGecko.
    • In sum, the crypto market reversed its previous loss after bitcoin reached six-month lows on Monday, falling below $33,000. This was followed by a substantial increase to $37,500. The cause was the US market.\
    • Stocks have been sliding throughout January in expectation of the Fed tightening monetary policy. The drop in hazardous assets has also had a detrimental influence on bitcoin, which has already lost roughly 20% of its value since the beginning of the month.
    • According to Bloomberg, the connection between the benchmark cryptocurrency and the Nasdaq has set a new all-time high.
    • The FOMC meeting on Wednesday will be the centre of attention. If the Fed hardens its rhetoric and announces a rate rise as soon as March, all risky assets, including cryptocurrencies, may suffer severely.
    • Meanwhile, the International Monetary Fund (IMF) has advised El Salvador to discontinue the use of bitcoin as a legal tender. Despite BTC’s recent drop, MicroStrategy has declared that it would continue to acquire it.
    • It’s worth mentioning that crypto funds had their first influx of capital into their assets in six weeks a week ago.

     Switzerland

    Switzerland January Credit Suisse investor sentiment 9.5 vs 0.0 prior

    • Latest data released by Credit Suisse and CFA Society Switzerland shows a modest improvement in investor sentiment as omicron fears continue to be brushed aside for the most part. Credit Suisse notes that:
    • Financial analysts are looking beyond the temporary challenges pose by the omicron wave and anticipate a marked recovery in the spring.
    • Of note, the current conditions index was also seen improving from 34.2 in December to 50.0 in January.

    OPEC+

    OPEC+ delegates reportedly expect to stick with the plan for a modest hike in output

    This doesn’t come as too much of a surprise given their decision earlier this month already. The oil market outlook is little changed since then, although there is the whole Ukraine-Russia thing going on I guess it will be a play-by-ear situation.

    WTI is up 0.3% on the day to $85.90 as the price continues to hold up, following the solid rebound yesterday.

    Markets

    • Markets have not reached the danger zone levels that precede a bear market; instead, markets are at levels that are normally associated with corrections and relatively modest returns over the following 1 to 5 years.
    • That’s an intriguing viewpoint, but given the inflation and central bank backdrop, it’s possible. However, there is still a lot of money flying around, and with actual returns hardly attractive, TINA may still be the way to go if we see any significant retracements/corrections in the coming months.
    •  Following yesterday’s decline, the S&P 500 is down 8.6 percent for the year. While breaching some important support levels recently, this is scarcely a significant correction for something that is still up roughly 95 percent from the pandemic’s inception.
  • Bitcoin Crashing:

    Bitcoin Crashing:

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #price #crashing #cryprocurrency #bitcoin crashing

    Since November, cryptocurrency prices have been crashing, and investors are currently on a selling binge, pushing prices to fall even lower. Approximately $130 billion has gone from the bitcoin market since Sunday. On Monday morning, Bitcoin was trading about $35,000, down nearly 50% from a record-breaking $69,000 in November, while Ether was trading around $2,400, also down roughly 50% from a $4,670 high. (By the end of the day, both cryptocurrencies had recovered somewhat.) Meanwhile, the Shiba Inu coin has dropped by 78%.

    Reasons Being 

    It’s difficult to pinpoint the exact cause of any cryptocurrency drop, but analysts have floated a variety of possibilities. The fall of Bitcoin may be only one part of a larger storey, as the stock market has been trending downward since the beginning of the year and recently had its worst week since March 2020, most likely in response to the Federal Reserve’s decision to raise interest rates and end its stimulus programme earlier than planned. (Stimulus money in people’s pockets also contributed to the cryptocurrency explosion we’ve seen throughout the course of the epidemic.) In harder markets, investors prefer to sell their riskier assets, including bitcoin.

    Over the last two years, as more traditional investors have been interested in cryptocurrencies, the stock and Bitcoin markets have become increasingly connected. The prospect of future regulation may also be frightening investors, as the Biden administration is slated to reveal a federal cryptocurrency policy next month. 

    Okay, but aren’t the small-time investors sticking to their guns? What if this is simply the Wall Street establishment jumping ship? 

    According to the Wall Street Journal, retail investors in particular appear to be driving the reduction in cryptocurrency values, since the number of smaller transfers decreased by more than 40% between the first and fourth quarters of last year.

    The sell-off is primarily the fault of new and short-term investors, some of whom purchased at the peak.

    Famous crypto boosters freaking out?

    Not out loud, at any rate. El Salvador’s president, Nayib Bukele, who made the country the first in the world to use Bitcoin as legal cash, revealed on Friday that his government has purchased another 410 Bitcoin since prices are cheap. On Wednesday, Elon Musk, possibly the most influential crypto supporter, tweeted a meme from the film Interstellar to mock the volatility of cryptocurrency.

  • Forex News January 25, 2022

    Forex News January 25, 2022

    #edgeforex #trading #market #money #forex #countries #dollar #currencies #trade #equities #indexes #crypto #bitcoin indexes

    Equities

    To begin the day, European markets open higher in catch-up play. The increases here belie the market’s underlying sentiment: Eurostoxx +0.9 percent, German DAX +0.8 percent, France CAC 40 +1.1 percent, UK FTSE +0.8 percent, and Spain IBEX +0.9 percent.  

    European indexes finished in the red yesterday, missing out on Wall Street’s remarkable bounce. As a result, the gains here are somewhat compensating for the losses in US futures for the time being.

    As a result, despite the initial gains, the actual market sentiment is tending toward one of caution and caution. Currently, S&P 500 futures are down 1.2 percent, Nasdaq futures are down 1.8 percent, and Dow futures are down 0.8 percent.

    Cryptocurrency

    • Bitcoin is up 2.8 percent in 24 hours, while other altcoins are losing ground in the cryptocurrency market.
    • The cryptocurrency market has increased by 0.2 percent in the previous 24 hours to $1.63 trillion, indicating a halt or comeback following a protracted decline. Buyer enthusiasm for cryptocurrency Cryptocurrencies Cryptocurrencies are digital currency that are nearly impossible to counterfeit and are based on blockchai… Please read this. Term came at the price of a rally in US shares, as selloff seekers believed their moment had arrived.
    • Without Bitcoin, the cryptocurrency market capitalization fell below $1 trillion last Saturday, and this level is now acting as near-term resistance. Bitcoin fell to $33K at one point on Monday, but recovered in the late US session and is presently trading at $36.4K.
    • Yesterday’s decline nearly bridged the July gap and originated from the lower edge of the downward channel. The latter suggests that, despite the presence of bears, the market is not yet prepared to accelerate its slide.
    • Bitcoin has gained 2.8 percent in the last 24 hours, but other altcoins have lost ground. So, yesterday’s comeback in bitcoin and the positive dynamics of the crypto market may be linked to technical factors: crypto investors are fleeing altcoins for more liquid BTC, producing transient bounces but nothing more.
    • The nearest objective for BTC’s downside is $32.3K, which would completely close the difference.
    • It is, nevertheless, prudent to be prepared for a retest of the July lows of $29.5-30K. These levels may not last long if the stock markets do not support them. Ether also had a late-day rally yesterday, indicating that the market is far from capitulating.
    • After seven days of decline, the leading altcoin managed to conclude Monday with a sliver of a gain. Nonetheless, no signals of a break in the downturn have emerged. Furthermore, a death cross is building in the ether, as the 50-day moving average is now only a few days away from crossing the 200-day from top to bottom. This indication is frequently followed by another bearish onslaught.

    Germany

    • It is too early to talk about an economic rebound in Germany;
    • There is some small easing of supply difficulties in the industry sector;
    • Supply challenges concerning raw materials and preliminary goods have lessened; and
    • Retail delivery bottlenecks have also improved.
    • There is some positive news in that supply disruptions are less common to begin the year, but we’ll have to wait and see if there are any additional noticeable improvements in the months ahead.
    • Otherwise, it may be difficult to observe a major improvement in overall conditions, especially with price/cost pressures continuing quite high.

  • Can Global Governments Ban Bitcoin?

    Can Global Governments Ban Bitcoin?

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #price #losing #officially #ban #fiat #cryprocurrency #bitcoin ban

    We’ve heard a lot about Bitcoin being declared officially dead. 

    This is referred to as FUD (fear, uncertainty, and doubt) or “scaremongering.” Japan has just legally authorised Bitcoin, and Hong Kong has clearly said that it would not regulate, taking a “hands off” attitude. Other nations will follow, and they will absorb all Bitcoin enterprises, which will benefit everyone throughout the world. 

    Bitcoin represents a paradigm shift in how people think about money and account for it. Prior to Bitcoin, only readers of Lewrockwell.com used the term “fiat.” Even those who dislike Bitcoin now refer to the dollar as “fiat.” A strong shift is underway, and it will not be halted.

    The United States is not the entire globe, and Bitcoin is a global currency. If Bitcoin is adopted in countries other than the United States, it will be one of the biggest software triumphs of all time. Nothing is stopping the rest of the world from embracing Bitcoin; the GSM standard was everywhere but the United States, and they finally had to cave and embrace it. 

    Bitcoin will be successful. There is nothing any government can do to stop it, just as there is nothing any government can do to stop file sharing via BitTorrent or Internet Relay Chat. It’s also not a matter of time. No amount of time will ever be enough to put the Bitcoin genie back in the bottle. This transformation is permanent.

    The only way out for anyone whose business is being threatened by Bitcoin is to fully embrace and incorporate it. The Japanese have realised this. 

    The courts in the United States (one in Brooklyn and one in Miami) are also causing people to awaken from their collective panic. Bitcoin is not money, according to two distinct courts in different countries. This implies that the “politicians” have no legal recourse to halt it. Texas has introduced legislation to protect Bitcoin as a right. Slowly but steadily, everyone is shifting to the right side of Bitcoin. 

    Many Americans assume that the government can and will simply adopt a federal law to eliminate Bitcoin.

    It is hard to prevent brilliant ideas from spreading in the internet age, because the world of 2017 is not like 1957, 1967, or 1977. Many sections of what was formerly known as the “Third World” now compete with the United States in terms of infrastructure. Someone will eat America’s lunch if it chooses Luddism and stupidity. 

    Bitcoin is unstoppable. This is a reality, not a belief, based on evidence of how it works and past peer-to-peer software that has persisted for decades.

  • Is the crypto market set for a lengthy winter following the last wave of selling?

    Is the crypto market set for a lengthy winter following the last wave of selling?

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #price #losing #cryprocurrency #bitcoin

    The cryptocurrency market has been under pressure recently, with major crypto currencies losing about 25% of their value in only four days. The bulk of the tokens have dropped by double digits in the preceding seven sessions. 

    The new round of selling follows a request by Russia’s central bank for a crypto crackdown. Russia’s central bank proposed a ban on cryptocurrency usage and mining on Russian territory on Thursday, citing worries about financial stability, human well-being, and the country’s monetary policy autonomy. 

    The move is the latest in a global cryptocurrency crackdown, as governments from Asia to the United States fear that privately managed and very volatile digital currencies would undermine their power over banking and monetary systems.

    The statement by Russia, one of the world’s top crypto users, dampened the market atmosphere and sent the digital asset market into the red. 

    While this is cause for concern, the crypto business has withstood several prohibitions, limitations, and governmental scrutiny over the years and has survived. 

    Based on how the industry rebounded immediately after China’s crypto ban, we may expect the sell-off to have no long-term influence on crypto’s performance beyond this temporary drop. 

    Other concerns, such as lacklustre macroeconomic circumstances, rising oil costs and Federal Reserve tapering signals, rising inflation, and a collapse in the technology industry, are adding to investors’ troubles.


    Bitcoin has broken through the $39,000 barrier, having dropped more than 11% from its high. Ethereum, its equivalent, fell 14% to hit $2,800 levels. 

    The suffering among altcoins has been more severe, with BNB, Cardano, and Polkadot losing up to 18% in the previous 24 hours, according to Coinmarketcap statistics. 

    Volatility is one of the most distinguishing characteristics of cryptocurrency markets, and it is also critical to understand the market cycle. 

    The ambiguity surrounding the Crypto Bill throughout the world is one of the causes that has caused cryptocurrency values to fluctuate. China’s shutdown of Bitcoin mining in Sichuan province has also resulted in a drop in crypto market value.

    Weekly, Bitcoin and Ethereum have lost 10-13 percent of their value, while other prominent altcoins like as Dogecoins, Solana, Avalanche, and Polygon have lost 16-25 percent of their worth. 

    The overall market valuation of crypto assets has fallen below $1.9 trillion, owing to poor trading volumes, which have recently been around $75 billion per day. 

    In other developments, the US Securities and Exchange Commission (SEC) denied a filing by First Trust Advisors and SkyBridge, the hedge fund formed by former White House communications director Anthony Scaramucci, to list and trade a spot bitcoin exchange-traded fund.

    The First Trust was rejected by the SEC. SkyBridge Bitcoin ETF Trust was the most recent in a string of vetoes by the regulator over the listing of spot bitcoin ETFs, which attempt to give convenient exposure to the digital currency. 

    These denials by regulatory agencies throughout the world have damaged investor trust in digital assets, resulting in a significant selloff. 

    The downward trend is expected to create havoc for investors, according to Edul Patel, CEO and Co-founder of Mudrex, who added that the following week will be critical for the crypto spectrum.

  • Forex News January 24, 2022

    Forex News January 24, 2022

    #edgeforex #trading #market #money #forex #countries #dollar #currencies #trade #america #nasdaq #high #low #dollar #futures #crypto #bitcoin futures

    US futures 

    The S&P 500 futures are down 0.2 percent, the Nasdaq futures are down 0.3 percent, and the Dow futures are down 0.1 percent for the day. 

    That didn’t take long, since the risk-averse mood from last week persists. The charts for US stocks are now looking bad, which is a difficult one to overcome. The real concern today is that this correction will have to run many deeper legs before stabilising. One may argue that it was long overdue.

    Dollar 

    • The dollar continues its gains as risk sentiment begins to deteriorate. 
    • The dollar extends its lead over riskier currencies. 
    • The AUD/USD is currently down about 0.7 percent to 0.7135, closing in on the 7 January low of 0.7130. A break below there opens the way to some modest support at 0.7100, followed by a possibly sharper loss back to 0.7000. 
    • Elsewhere, the USD/CAD is regaining ground over 1.2600, as oil trades down for the day, with WTI currently trading below $85. Meanwhile, GBP/USD is closing in on 1.3500 after breaking over its 100-day moving average.
    • Once the figure level loses way, the slide in cable may accelerate into the 50.0 retracement level @ 1.3455.
    • NZD/USD falls to its lowest level since November 2020. 
    • The pair is presently trading below 0.6700, down 0.4 percent. 
    • Sellers are attempting to breach critical support at the 0.6700 level, which helped to halt the first drop in December. The 38.2 retracement level at 0.6702 adds to the support layer, but both look to be losing way today as the price falls to 0.6690. Of course, the daily/weekly close will still decide the alleged breakdown, but given the current risk mood, a comeback may be difficult to foresee. The next realistic objective on any dip from here would be 0.6500, followed by the 50.0 retracement level at 0.6467.
    • Those will be critical levels to monitor if we do see a break to the negative extend deeper in the sessions ahead. 
    • For the time being, it’s all about risk sentiment, and there has been a distinct trend of dip buyers failing to increase confidence since last week. That indicates a lot about the potential for this correction to continue, especially because the technicals confirm it.

    Bitcoin

    Bitcoin’s price has now dropped by more than half of its all-time high.

    Bitcoin is down more than 7% on the day to below $34,000 

    Bitcoin’s all-time high was $69,000 in November, and its value has dropped by more than half since then. The 7% decrease today extends the bearish trend that began with the $40,000 break last week. It’s not looking good, and as previously stated, essential support is closer to $30,000 to $32,000. The former, in particular, will be a critical point of interest in determining what happens next for Bitcoin and virtually all other cryptocurrencies.

  • Avoid Forex Trading During the Holidays

    #edgeforex #trading #market #stocks #money #usd #gold #forex #green #investing #ethical #holidays #loss #break #cryptocurrencies #law #bill #bitcoin holidays

    Trading forex during the Christmas holidays is a poor idea. During the Christmas season, forex trading becomes extremely difficult for traders. Instead of staring at the chart, a trader should spend that time with their children in the garden. However, if a trader desires to trade in a turbulent market, he must make certain assumptions.


    During such days, many traders take a long break from forex trading. During the Christmas and New Year holiday periods, it is difficult for traders to produce gains. Many seasoned and professional traders adhere to this practice of taking a trading break on specific days.
    As a result, traders should start trading far into the New Year once they have returned to their chart and life has returned to normal.


    According to tradition, Christmas Day commemorates the birth of Jesus on December 25, 1 BC. As a result, most countries observe this as a public holiday. Furthermore, the entire week around December 25th is recognised as a holiday in lieu.


    Most professional traders are hesitant to trade against low liquidity and excessive volatility at this moment. Banks will be absent from the market, and there will be a dearth of market-moving news. However, it is the most profitable time of year for scalpers. Any news storey might cause the market to jump in traders’ favour.


    During that moment, the majority of traders would close their positions. As a result of the wide spreads, brokers will benefit handsomely. Despite the fact that businesses would generate less profit owing to trade inactivity, they must pay their employees.


    Reasons to Avoid Forex Trading During Christmas


    The market will be unpredictable throughout the Christmas Holidays session, and your preferred currency pair may respond negatively.
    The major tycoons are well-versed in their industry, thus they would not take any chances at that moment. As a result, rather than monitoring the charts, they will spend their time on the beach with a cigar and a drink of martini. Furthermore, their inaction serves as a warning: do not trade.


    • Forex Market Volatility Is Extreme


    We know that there is an impulsive non-volatile trend and a corrective volatile trend in the currency market. This pattern reflects the engagement of market titans. Traders may easily make money during an urge since the market follows the levels better than at other times. As a result, there is a possibility of false break and stop-loss hunts.


    The proof of extreme volatility may drive the price nowhere after consuming your profits by producing false breaks. There is no way to generate a reasonable profit.


    True, forex brokers hike their spreads over the holidays. The fundamental cause for this is a lack of liquidity. As a result, tiny traders are exposed to the hazards of bid and ask proposals. It is up to the broker to decide when to increase the spread. It’s difficult to pinpoint a precise time.


    • Market situations that are unpredictable


    The forex market is a decentralised market in which no one can predict where the price will go in the future. All traders and investors profit from the forex market by correctly forecasting market possibilities. If the probability is correct, the trader will benefit. On the other side, if the probability is incorrect, the trader loses.


    Forex trading during the Christmas holidays is dangerous since the market is difficult to forecast because there is no solid trend. There is a chance that a bearish trade setup from a strong barrier may fail. Furthermore, due to poor liquidity, the entire day may swing within 15 pips or rapidly jump in a minute. Ordinary traders find it difficult to respond to that market scenario.


    • Prepare for the New Year by recharging your batteries.


    Working overtime may be harmful to your health as well as your intellect. Furthermore, if your A+ trade ideas are hitting stop losses, the market conditions may place further pressure on you. In that scenario, you should spend the time by taking a big breath of fresh air before beginning your lengthy run.


    Rather than studying the EURUSD chart on December 25, the greatest practice during the holiday season is to play with your children in the yard or visit your closest relatives.

    If you are unable to refrain from trading, keep in mind that the spike and spread may eat away at your prospective earnings. In such an instance, you should only trade with a bigger stop loss if you stick to the important levels.

  • Price Gap

    Price Gap

    #edgeforex #trading #market #stocks #money #forex #trader #broker #money #types #price #gap #opportunities #stockmarket #bitcoin gap

    What’s a Price Gap?

    When there are no new opportunities available for a period of time, a gap emerges in the charts. These gaps can be seen on bar and candlestick charts. You can tell whether there is a price gap when there is an empty space between the closing of one candlestick and the open of the next candlestick. Some markets, such as futures and stock markets, are more prone to gaps, whilst other markets, such as Forex, have far less gaps. 

    Price disparities can go in two directions: up and down. The term “gap up” or “gap higher” refers to the fact that the current candle’s low is higher than the preceding candle’s high.

    Types of Price Gaps

    Aside from price changes, there are four basic sorts of prices that do not display on the charts. 

    1. Common Deficits 

    The common gap is exactly what its name implies: common and dull. Because typical gaps are common price patterns, they do not indicate any intriguing information in the markets. The most common gaps are filled the most frequently. Common gaps are modest in size and do not provide a sufficient reward. The risk-reward ratio isn’t really worth it.

    2. Separation Gaps 

    Typically, the breakaway gap is not filled. Not to add that the price usually moves away from the breakout gap right away. When does this type of pricing disparity occur? A breakaway gap arises when price gaps cross exactly above a level of support or resistance. It is a recurring breakout pattern, with genuine breakouts occurring in the form of a gap. A breakaway gap is more powerful than you believe, and the larger the breakaway gap, the greater the candle following the gap, and hence the stronger the trend.

    3. Excessive Gaps 

    During a strong trend, a runaway gap arises when price continues to gap in the direction of the trend. During a strong trend, you will typically notice many runaway gaps. 

    Rather than waiting for a countertrend gap to fill during a runaway gap, simply follow the trend. You can also stay in your current trades if there is a runaway gap, which indicates strength. Experienced traders always do this to prevent putting too much of their cash at danger.

    Gaps in Exhaustion 

    Exhaustion gaps indicate that a trend is nearing the conclusion of its life cycle. Essentially, it occurs when the price creates a succession of price gaps in the late stages of a trend. These patterns may also indicate that a move is about to reverse direction. Some traders just abandon their trade when they notice exhaustion gaps after a given trend has been in place for some time. Others wait for a second signal to ensure that the trend is ending before exiting their investments.

    When is a Price Gap “Filled”? 

    A price gap is “filled” when the price returns to the level it was at before to the gap. In the days that follow, the price action returns to the level it was at the day before the gap.