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Articles by Muhammad Azeem

December 10th, 2018 @ 5:32 pm by Muhammad Azeem

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Forex Sentiment Analysis

When trading within the forex market, there are three key methods of analysis which can be used to identify possible trends and ultimately decide our positions within the market. These are, fundamental analysis, technical analysis, and sentiment analysis. Of these methods, the most nuanced and challenging to interpret is sentiment analysis. In the fast-paced world of online trading, it is of key importance to understand both the key sentiment indicators and how to react to them appropriately when trading forex.

What is Sentiment Analysis in the Forex Market?

For good reason, sentiment analysis has been employed by almost all of the most successful forex traders to a high degree. It is notoriously difficult to measure, but at its core, sentiment analysis is the study of how the forex market feels at a particular time. Essentially, when we engage in forex market trading, we are expressing our feeling related to how a particular currency pair might perform. Zooming out from our singular decision allows us to see that every combined action within the market forms a general “feeling”. This is the market sentiment.

Through analysis of this sentiment and how it may be impacted by certain trading factors, we can establish how the market will react and thus position our trades accordingly. Being aware of how the market feels, ultimately allows traders to effectively leverage the market sentiment, trading in the direction which they feel the market will take based on a few of the key indicators.

Sentiment analysis also gives rise to another class of trader. That is the contrarian trader. This is someone, whether forex trading online or otherwise, likes to trade against the prevailing market sentiment. Eduardo Elsztain and George Soros are both prime examples of famous traders who profited largely from going against market sentiment.

Key Sentiment Indicators and How to Interpret Them

Sentiment indicators play a vital role in helping traders gauge the current sentiment of the market. These are something which many new traders should be made aware of early on through any reputable forex trading tutorial. Tradefw.com is a positive example of a forex trading broker who offers such an in-depth educational program.

Commitment of Traders Reports

The Commitment of Traders (COT) report is one of the most valuable ways in which you can get an accurate feel for the forex market sentiment, quantified through the featured data. The report is published by the Commodity Futures Trading Commission each Friday and shows the open positions as of the preceding Tuesday.

The data featured in a COT, although not in real time, is the most accurate to represent the market status. In interpretation of this data, traders should be checking for extreme positions within the market. The following formula can be used to extract that percentage from the data:

Commitment of Traders Reports

Volatility Index (VIX)

A second quite effective method for gauging sentiment within the forex market is by viewing the Volatility Index published by the Chicago Board Options Exchange. Generally speaking, since market sentiment is largely based on the emotion and feeling of the market as a whole, the more volatile a currency is rated by the CBOE, the more fear is existing. This would typically create negative forex sentiment trading around that currency.

Market Volume Indicators

Volume indicators as a link to forex market sentiment are especially important. This includes the likes of the Money Flow Index (MFI), and the On-Balance Volume (OBV). The MFI is used to chart the money flow into the market over several days, with an obviously increased flow being linked to market confidence and correlating positive sentiment.

The OBV is also used to chart buying and selling pressure within the market, a key measurement when it comes to correctly identifying the market sentiment.

Independent Broker Tools

Due to the decentralized nature of the forex industry, it can be quite difficult to get precise data on exact positions and volumes within the industry, as they do not all pass through one centralized point. For that reason, many forex brokers will offer their own tools to assist with your sentiment analysis. These can and should then be cross-checked through other forex trading platforms.

The Importance of Sentiment Analysis

Within forex trading and any market, technical, fundamental, and sentiment analysis are all important aspects. Separately, these can identify certain patterns which can help direct your trading in a positive manner, or steer it away from dangerous situations in certain instances. When combined however, these can form a detailed analytical picture of the forex market which will vastly help in improving your skills as a forex trader.

Trading forex without conducting sentiment analysis decreases the amount of knowledge a trader has at their disposal. Ultimately, this results in a higher level of risk when trading in any market.

Conclusion

Although difficult to pinpoint with extreme accuracy due to its inherently emotional nature, sentiment analysis will form a key part of your forex trading strategy alongside the other forms of analysis. The value in this analysis is clear to see and should not be discounted. Having been used by some of the most prolific traders in the forex market over time, its effectiveness has been all but proven.

For this reason, it is imperative to choose a reliable forex broker who will guide you on the journey to understanding sentiment analysis in detail and provide support in other areas of your forex trading progression.

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June 29th, 2018 @ 12:32 pm by Muhammad Azeem

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EUR/USD Elliott Wave Analysis

EUR/USD Elliott Wave Analysis in 15 Minutes chart

Bullish trend is present in EUR/USD currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of EUR/USD currency pair is going to rise up now on a short-term basis to create a Bullish Impulse Elliott wave pattern and Spot Forex traders should consider taking a possible buy trading chance.

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the bullish leg. Strong key support level is present at 1.1601 price level which is the termination point of Bullish impulse wave i leg. In my opinion, price action in EUR/USD currency pair has not completed bearish wave iv corrective Elliott wave pattern. So, based on Elliott wave analysis, Bearish wave iv leg is going to start after few hours time and I expect the market to first drop lower and then resumes an up trend to rise; towards 1.1680 price area in coming trading hours.

Next, price action is most likely going to prints a top as well in coming trading hours after completing bearish impulse wave v pattern. As the trend is still bullish, Forex traders should consider only long trades and no trade against the current EUR/USD bullish trend as it is always easy to trade in the favour of market trend. Currently, bearish wave ii leg which is part of the Bullish Impulse Elliott wave pattern looks half finish. A good idea is to look for a possible buy trading chance to join an up trend around 1.1626 price area.

However; if the price action in EUR/USD spot Forex pair breaks below 1.1601 important support level then Bullish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the EUR/USD currency pair price movement in fifteen minutes chart. Forex traders who are interested to learn Price Patterns click here.

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June 28th, 2018 @ 3:09 pm by Muhammad Azeem

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EUR/USD Elliott Wave Analysis

EUR/USD Elliott Wave Analysis in 15 Minutes chart

Bullish trend is present in EUR/USD currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of EUR/USD currency pair is going to rise up now on a short-term basis to create a Bullish Impulse Elliott wave pattern and Spot Forex traders should consider taking a possible buy trading chance.

 

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the bullish leg. Strong key support level is present at 1.1527 price level which is the originating point of Bullish impulse wave i leg. In my opinion, price action in EUR/USD currency pair has not completed bearish wave ii corrective Elliott wave pattern. So, based on Elliott wave analysis, Bearish wave ii leg is going to start after few hours time and I expect the market to first drop lower and then resumes an up trend to rise; towards 1.1655 price area in coming trading hours.

 

Next, price action is most likely going to prints a top as well in coming trading hours after completing bearish impulse wave iii pattern. As the trend is still bullish, Forex traders should consider only long trades and no trade against the current EUR/USD bullish trend as it is always easy to trade in the favour of market trend. Currently, bearish wave ii leg which is part of the Bullish Impulse Elliott wave pattern looks half finish. A good idea is to look for a possible buy trading chance to join an up trend around 1.1539 price area.

 

However; if the price action in EUR/USD spot Forex pair breaks below 1.1527 important support level then Bullish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the EUR/USD currency pair price movement in fifteen minutes chart. Forex traders who are interested to learn Price Patterns click here.

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May 31st, 2018 @ 8:13 am by Muhammad Azeem

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GBP/USD Elliott Wave Analysis

GBP/USD Elliott Wave Analysis in 15 Minutes chart

Bullish trend is present in GBP/USD currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of GBP/USD currency pair is going to rise up now on a short-term basis to create a Bullish Triple Zig Zag Elliott wave pattern and Spot Forex traders should consider taking a possible buy trading chance.

 

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the bullish leg. Strong key support level is present at 1.3277 price level which is the termination point of Bearish corrective wave X leg. In my opinion, price action in GBP/USD currency pair has not completed bullish wave Z corrective Elliott wave pattern. So, based on Elliott wave analysis, Bullish wave C leg is going to start after few hours time and I expect the market to resume an up trend to rise towards 1.3360 price area in coming trading hours.

 

Next, price action is most likely going to prints a top as well in coming trading hours after completing bullish corrective wave Z pattern. As the trend is still bullish, Forex traders should consider only long trades and no trade against the current GBP/USD bullish trend as it is always easy to trade in the favour of market trend. Currently, bullish wave Z leg which is part of the Bullish Triple Zig Zag corrective Elliott wave pattern looks half finish. A good idea is to look for a possible buy trading chance to join an up trend around 1.3336 price area.

 

However; if the price action in GBP/USD spot Forex pair breaks below 1.3277 important support level then Bullish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the GBP/USD currency pair price movement in fifteen minutes chart. Forex traders who are interested to learn Price Patterns click here.

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May 22nd, 2018 @ 8:08 am by Muhammad Azeem

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USD/CAD Elliott Wave Analysis

USD/CAD Elliott Wave Analysis in 15 Minutes chart

 

Bearish trend is present in USD/CAD currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of USD/CAD currency pair is going to drop now on a short-term basis to create a Bearish Impulse Wave (i) Elliott wave pattern and Spot Forex traders should consider taking a possible sell trading chance.

 

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the Bearish Impulse wave leg. Strong key resistance level is present at 1.2853 price level which is the originating point of Bearish wave (i) leg. In my opinion, price action in USD/CAD currency pair is in the process to complete the Bearish Impulse (iii) Elliott wave pattern. So, I expect the market to first move up and then resume the down trend and falls towards 1.2740 price area in coming trading hours.

 

Next, price action is most likely going to prints a short term bottom as well in coming trading hours after completing Bearish Impulse wave (iii) pattern. As the trend is still Bearish, Forex traders should consider only short trades and no trade against the current USD/CAD Bearish trend as it is always easy to trade in the favour of market trend.

 

Currently, bearish wave (iii) Impulse Elliott wave pattern looks half finish. A good idea is to wait for the market to first rise up more and then look for a possible sell trading chance to join the down trend.

 

However; if the price action in USD/CAD spot Forex pair breaks above 1.2853 important resistance level then Bearish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the USD/CAD currency pair price movement in fifteen minutes chart. Spot Forex traders who are interested to learn Price Patterns click here.

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February 23rd, 2018 @ 6:48 am by Muhammad Azeem

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GBP/JPY Elliott Wave Analysis

GBP/JPY Elliott Wave Analysis in 15 Minutes chart

Bullish trend is present in GBP/JPY currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of GBP/JPY currency pair is going to rise up now on a short-term basis to create a Bullish Zig Zag Elliott wave pattern and Spot Forex traders should consider taking a possible buy trading chance.

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the bullish leg. Strong key support level is present at 148.77 price level which is the termination point of Bearish Wave B leg. In my opinion, price action in GBP/JPY currency pair has not completed bullish wave C corrective Elliott wave pattern. So, based on Elliott wave analysis, Bullish wave C leg is going to start after few hours time and I expect the market to resume an up trend to rise towards 149.75 price area in coming trading hours.

Next, price action is most likely going to prints a short term top as well in coming trading hours after completing bullish corrective wave C pattern. As the trend is still bullish, Forex traders should consider only long trades and no trade against the current GBP/JPY bullish trend as it is always easy to trade in the favour of market trend. Currently, bullish wave C leg which is part of the Bullish corrective Elliott wave pattern looks half finish. A good idea is to look for a possible buy trading chance to join an up trend around 149.27 price area.

However; if the price action in GBP/JPY spot Forex pair breaks below 148.77 important support level then Bullish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the GBP/JPY currency pair price movement in fifteen minutes chart. Forex traders who are interested to learn Price Patterns click here.

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January 12th, 2018 @ 3:48 pm by Muhammad Azeem

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Cryptocurrency

Cryptocurrency traders are spoiled for choice in so many ways. There are already a myriad of different cryptocurrencies in the market and new ones entering every day. That makes it hard to decide where to invest your money. To add to the choice, you also have a multitude of platforms, tools, and information sources vying for your attention.

You certainly can’t try them all out for size, so here are a few that are likely to help you in your cryptocurrency trading journey.

News – CoinBuzz.stream

As the saying goes “You have to crawl before you ball”. Too many people are so eager to get on the bitcoin gravy train that they forget the importance of studying the ecosystem first. CoinBuzz is a service that allows you to do just that. The website aggregates major developments in different cryptocurrencies and serves them up in a card-style interface. It displays Bitcoin, Ethereum, and Litecoin news by default, but allows users to select which tokens or coins they’d like to follow. The news is sourced from across Twitter, Reddit, and Google Trends, so it’s the perfect place to get a grip on what’s going on in the landscape as a whole.

Price Tracker – Coin Market Cap

The most basic approach to trading is to make buy/sell decisions based on price action. So it’s imperative that you have a way to follow the trends in the values of different cryptocurrencies. Coin Market Cap is a website that gives users all the essential information they need about different coins and tokens. You can get key live information such as market caps and trade volumes. Coin Market Cap also tracks historical data so you can get an idea of how the value of a cryptocurrency has changed over time.

Buy/Sell Signals – Turtle BC

Few things are more valuable to cryptocurrency traders than signals. Getting an aggregated perspective on different technical indicators makes the decision of when to buy and when to sell a lot easier. Turtle BC is a website the creates buy/sell signals for cryptocurrencies based on the Turtle Trading Strategy. The platform can be used to track signals over 4-hour periods or shorter 30-minute stints. Which of those you choose depends on your personal cryptocurrency trading methodology. Turtle BC delivers its trading signals to users in the form of email notifications.

Chart Data & Trading Ideas – Trading View

Once you reach a certain level in your cryptocurrency trading career, you will begin to see the importance of charts. Data is power in the world of trading, and charts are a way to figure out what data is telling you about the markets. Trading View offers its users all the charting tools they need to visualize market data. More importantly, the community on the website actively shares cryptocurrency trading insights with the help of charts. The powerful tools combined with the collaborative environment makes Trading View a platform that growing cryptocurrency traders can’t miss.

Prediction Platform – ZeroSum

ZeroSum is a peer-vs-peer platform on which you can take part in cryptocurrency price prediction competitions. It challenges users to apply what they they know about cryptocurrency trading in a fun competition format. This makes the platform a great place to test your trading strategies before investing serious money in them. In a high-stakes game like cryptocurrency trading, it’s always nice to have the option of using a simulated environment to see what the consequences of your decisions would be in the real world. Players who win competitions by making the most accurate predictions earn money in the form of ZFX, ZeroSum’s very own Ethereum token.

Portfolio Manager – Blockfolio

If you’ve spent any time reading up about trading tips, you know that a diverse portfolio is important. The one downside to that is that it can get hard to track you various investments once you do cobble together that much touted diverse portfolio. That’s where Blockfolio comes in handy. It is a portfolio management tool for cryptocurrency traders who have investments across bitcoin and the various altcoins. Users can view how each of their investments in various coins and tokens is performing. They can also view charts and news pertaining to over 2,000 major cryptocurrencies.

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December 13th, 2017 @ 4:45 pm by Muhammad Azeem

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EUR/JPY Elliott Wave Analysis

EUR/JPY Elliott Wave Analysis in 15 Minutes chart

 

Bearish trend is present in EUR/JPY currency pair, 15 minutes chart. As I have suggested via my Elliott Wave Analysis few hours ago, the price of EUR/JPY currency pair is going to drop now on a short-term basis to create a Bearish Double Zig Zag Elliott wave pattern and Spot Forex traders should consider taking a possible sell trading chance.

So, all those Forex traders who have followed my Elliott Wave Analysis have made the right decision as price has started the Bearish leg. Strong key resistance level is present at 133.38 price level which is the originating point of Bearish wave c pattern. In my opinion, price action in EUR/JPY currency pair is in the process to complete the Bearish Double Zig Zag corrective Elliott wave pattern. So, I expect the market to first move up and then resume the down trend and falls towards 132.55 price area in coming trading hours.

Next, price action is most likely going to prints a short term bottom as well in coming trading hours after completing Bearish corrective Double Zig Zag pattern. As the trend is still Bearish, Forex traders should consider only short trades and no trade against the current EUR/JPY Bearish trend as it is always easy to trade in the favour of market trend.

Currently, bearish wave c of wave Y corrective Elliott wave pattern looks half finish. A good idea is to look for a possible sell trading chance to join the down trend at the current price level.

However; if the price action in EUR/JPY spot Forex pair breaks above 133.38 important resistance level then Bearish Elliott wave analysis will become in-valid. From this time forward, I may seize the opportunity to stay out of the market and re-assess the EUR/JPY currency pair price movement in fifteen minutes chart. Spot Forex traders who are interested to learn Price Patterns click here.

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