The Power and Beauty of Price Gaps
Price gaps represent a clear imbalance in supply and demand, making them one of the purest representations of momentum in financial markets. These gaps occur when there is a significant disparity between the closing price of one period and the opening price of the next, indicating a sudden surge in buying or selling pressure.
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With the S&P pulling back from highs, let's explore where prices might find support.
Retreat and Rebound: Analysing S&P 500's Pullback Opportunities
It’s finally happened: the S&P 500 has started to retreat after a strong upward trend. Between late October and early November, the US headline index surged by 28%, marking a significant uptrend.
However,...
With EUR/USD reaching its lowest point since November, let's delve into the driving forces behind this downturn, identify critical levels to monitor, and analyse the lower timeframe price action.
Factors Driving the Decline
There are three key factors currently driving EUR/USD lower:
1. Sticky US Inflation: The US dollar is strengthening across the board...
Welcome to Swing Mapping Part 3, where we delve into three different approaches to trade management using swing mapping methods.
Trade management always represents a trade-off between taking profits early and letting winning trades run. There is no perfect solution, but by understanding different approaches, traders can tailor their strategies to their risk...
Nvidia (NVDA)
Having surged higher during the first quarter of the year, Nvidia’s share price is currently in ‘mean reversion mode’.
When it comes to measuring mean reversion, we can use traditional simple or exponential moving averages. We can see from Nvidia’s daily candle chart (below) that price has not yet reached the 50-day moving average which continues...
Having broken through long-term resistance and come within touching distance of the February 2023 highs, the FTSE took a pause for breath last week pulling back from recent highs.
Pullbacks provide excellent opportunities for traders to position themselves within established trends at attractive levels of risk/reward, and the FTSE’s recent pullback has put trend...
With Apple dramatically underperforming the wider market, we shine a spotlight this tech giant as it retest key levels of long-term support.
Apple Decline Amid Market Rally: A Departure from Historical Trends
Apple's share price has declined since the turn of the year due to various factors such as slowing iPhone sales, antitrust concerns, and perceived lag...
Welcome to part 2 of our 3-part series on swing mapping – a highly underestimated technique that can be applied to any market on any timeframe.
In Swing Mapping Part 1 we outlined the key principles of swing mapping which involved identifying potential swings, monitoring them, and drawing conclusions about market structure as swings levels are held or broken....
The US dollar has shown signs of strength in recent trading sessions, buoyed by encouraging developments in the US manufacturing sector. Specifically, the dollar's rise comes on the heels of news that the US manufacturing industry expanded in March for the first time since September 2022.
The resurgence in US manufacturing is particularly significant given its...
Welcome to the first instalment of our 3-part series on swing mapping – a highly underestimated technique that can be applied to any market on any timeframe.
In Swing Mapping Part 1: Key Principles you will learn:
Why it’s the bedrock of all market structure analysis
How to swing map in four simple steps
Why it’s so important to do it yourself rather...
With shares in EV manufacturer Nikola (NKLA) surging more than 12% during yesterday’s session. We look at the significance of the rally and why traders should be wary of false dawns.
Electric Surge: Nikola’s Momentum Shift
Yesterday’s surge in Nikola's share price represents more than just a fleeting market movement, it symbolises a potential shift in...
Earlier this month, we discussed subtle cues indicating the FTSE 100's readiness to break out. Fast forward three weeks, and the index has decisively broken free from its long-term range, surging over 150 points post the US Federal Reserve's reaffirmation of its rate-cut plans.
FTSE 100 Daily Candle Chart
Past performance is not a reliable indicator of...
Timing is everything in trading. The ability to enter and exit positions at the right moment can significantly impact your profitability.
Here are three simple tips to help you enhance your timing and make better trading decisions:
1. Lower Your Execution Timeframe
Lowering your trading timeframe can provide more precise insights into short-term market...
The US dollar has shown strength across the board in anticipation of Wednesday’s rate decision and FOMC projections, leading USD/CHF to approach a key resistance level.
Market Expectations: Higher for Longer
Last week’s unexpected rise in US inflation has raised doubts about whether the Fed will cut rates from 5.5 per cent to 5.25 per cent, as previously...
With Brent crude reaching four-month highs, let's delve into the factors propelling this surge and explore potential trading opportunities.
What’s Driving Oil Higher?
A key catalyst behind last week’s breakout in Brent crude was the release of a report from the International Energy Agency (IEA), which highlighted a tightening market outlook for 2024.
The IEA...
If success in trading hinges on consistency, then identifying a trading style that aligns with your personality, risk tolerance, and lifestyle is a crucial prerequisite.
In this guide, we'll delve into the significance of discovering the right trading style for you, exploring various aspects to consider before settling on a trading approach.
Different Styles...
EUR/USD has been trending higher since Valentine’s Day, this emerging uptrend is best viewed on the 4hr candle chart (below).
On this timeframe, we see three factors that indicate EUR/USD’s uptrend has potential to run higher:
1. Steepening Trendlines:
Analysis of EUR/USD's inflection points reveals a noticeable steepening of trendlines, signalling increased...
Gold is making a comeback this month, driven by expectations of lower interest rates, geopolitical concerns, and doubts about overvalued stock markets. In just six days, it has surged to a new record high, adding over $110 to its price – breaking above key levels of resistance.
The Breakout
Gold’s historic breakout is best viewed on the weekly candle chart...
