FOREX PRO Weekly, January 03-07, 2010

[Sive Morten]

Hello,

Sive can you give us a short explanation why you use Futures instead of Spot? Does have any benefits? Does it even matter for a small trader? Does it matter for a professional trader?

Thanks

Well, this is a large topic to discuss.
But, in one word speaking - futures market is safer and has spread 1 pip.

Hi Sive-
As usual your analysis is priceless. Thanks a million

I have a request from you, why dont you try to analyze other currency pairs such as GPB/JPY or GBP/CHF for example. I guess they have a lot of opportunities, also this will give us more understanding of market mechanics?

I know it might be time consuming, but the end result will be great. We can have a discussion of possible scenarios and whats the best for that.

Your opinion is highly appreciated.

It could be done, but these pairs are not very popular on futures market. Using MT 4 for charting is not very comfortable so, analysis will not be full.
I'll try to take a look at them and possibly will make a weekly research initially

 

[Sive Morten]

AUD/USD and EUR/USD Daily Update, Fri 07, January 2011

Good morning,
Let's take fast look at couple of pairs - aussie and EUR FX.
So, On EUR situation is developed according to our expectation - market couldn't break through 1.3450 area and collapsed.
But now be carefull and watch for 1.2820-1.2870 area - daily oversold, 1.27 target of butterfly and 1. 27 Fib target from ABCD. We can't exclude retracement up from there, so, may be to take chips off the table in this area will not be bad idea.

On Aussie (I suggest that bother you with it ) market shows some signs of slowing of a down move around daily Confluence support . On hourly chart market has accomplished 100% AB CD, and 3-drive Buy. So, If bouncing should happen at all - it should start from there. If market will fail there - then, I suppose that all is done, the retracement due B&B context will not happen.
If you still want to take this signal - don't risk much and enter only after initial nice thrust up on 30-60 min chart. Use retracement from this initial swing to enter. The target of this trade - 1.012 area (red line on the chart)

 

[Ahmed El-Shazly]

Well, this is a large topic to discuss.
But, in one word speaking - futures market is safer and has spread 1 pip.



It could be done, but these pairs are not very popular on futures market. Using MT 4 for charting is not very comfortable so, analysis will not be full.
I'll try to take a look at them and possibly will make a weekly research initially

Thanks Sive. That will be a great start and help.

 

[Khan125]

Hi Sive,

Firstly I would like to say your analysis is invaluable you really are doing a great job. I have a few questions one is more about the spot vs futures primarily trade Euro/usd now could you kindly advise more on why its better to trade futures as opposed to spot perhaps an article you may have have written on this before any help would be usefull.

Secondly I can see you use something like CQG I really would like to use this platform with the indicators you have but know its very expensive, do you know how I can use this without such high costs, also where can I learn about the indicators you use in your analysis. Lastly you mention various patterns in your analaysis like your ABCD pattern, butterfly etc although I've been trading a while do you have a section where you can explain these in detail would be most greatful.

Thanks

 

[Baletnik]

Hello,

I hope it's ok to post some links here. I found a great help in those 2 links explaining details about Futures.

http://www.investopedia.com/video/play/futures-contract-explained
http://www.investopedia.com/university/futures/

As for the other questions, they were answered numerous times on this forum, just search the archive.

Regards

 

[Sive Morten]

Hi Sive,

Firstly I would like to say your analysis is invaluable you really are doing a great job. I have a few questions one is more about the spot vs futures primarily trade Euro/usd now could you kindly advise more on why its better to trade futures as opposed to spot perhaps an article you may have have written on this before any help would be usefull.

Well, FPA is prepairing educative material currently, that's dedicated to FOREX. So, very soon you will be able to read detail explanation and comparison FOREX with Futures and other markets. Particulary, FPA does not blindly tell that spot FOREX is better just to support it's popularity and own position. FPA gives logical and fair assessment of different markets. So, you will get really independent view on many questions. In particular, if futures is really better to trade than spot, FPA does say it, in contradiction to others educative sites, that are supported by different FOREX brokers and that have to say due to this reason that Forex is better.
Besides, due to facts that FPA will provide, you will be able make your own view on any question and topic.

Secondly I can see you use something like CQG I really would like to use this platform with the indicators you have but know its very expensive, do you know how I can use this without such high costs, also where can I learn about the indicators you use in your analysis. Lastly you mention various patterns in your analaysis like your ABCD pattern, butterfly etc although I've been trading a while do you have a section where you can explain these in detail would be most greatful.

Thanks

Many questions also will be provided in this material, but gradually. Also, As Baletnik said, just surf the archive - there a lot of answers on some questions that you've asked.

 

[Khan125]

Many thanks to the answers and links provided, hope to see that new section soon on FPA.

Good trading.

 

[ALF]

futures market is safer and has spread 1 pip

Well, this is a large topic to discuss.
But, in one word speaking - futures market is safer and has spread 1 pip.



Hi Sive

Would you please let us know some brokers, using 1 pip spread in Forex futures market.

Thanks and have a nice day.

 

[DickyB]

Explanation of terminology

I think the analysis is excellent, but some of the terms used are not clear to me - B&B for example. I can guess, but always end-up wondering if I guessed right.

Another one that's puzzled me for many months is "rinse and repeat"

Is there a glossary of the terms you use anywhere?

Thanks

 

[Sive Morten]

Well, this is a large topic to discuss.
But, in one word speaking - futures market is safer and has spread 1 pip.



Hi Sive

Would you please let us know some brokers, using 1 pip spread in Forex futures market.

Thanks and have a nice day.

Hi Alf,
One among other favors of futures market - that it's exchange traded. It means that all brokers has the same quotes that come from exchange.
So, if the reputation and brokerage fees are acceptable for you - you may open an account...