Virus worries and Brexit issues pressurizes pound

GBP/USD pair trades to the downside due to the recent weakness that is caused from the broad risk-off mood and economic fears, retail traders’ restrictions and China’s warning to Taiwan. Also, weighing on the quote could be the EU-UK tussle over the vaccine, Brexit issues and virus worries.

Global traders worry about further restrictions on retail trading. Recently, the private trading platform Robinhood said that the firm is in constant communication with the regulators while also revealing issues while trading cryptocurrencies. Adding to it, the US House Financial Services Committee is up for a hearing on short selling and online trading platforms while some more brokers joined the line of Robinhood to tame the volatility and speculations.

And another news joins the line, UK recently turned down direct flights from United Arab Emirates (UAE), Burundi and Rwanda as domestic cases jumped to 28,680. The move pays a little heed to the receding death toll from 1,725 to 1,239, reported by Reuters on Thursday.

British Prime Minister Boris Johnson reiterated Brexit problems and disappointment of business in the fisheries sector. The Tory leader said, “Of course there are there are teething problems in lots of areas and that’s inevitable because this is a big change.”

Also China’s warning of war to Taiwan increases the risks as the US may have another reason to meddle with Beijing and the UK can intervene as well.

On the other hand, Initial jobless claims in regular state programs fell by 67,000 to 847,000 in the week ended Jan. 23, Labor Department data showed Thursday. On an unadjusted basis, initial jobless claims dropped to 873,966. Continuing claims — an estimate of the number of Americans filing for ongoing unemployment benefits — dropped by 203,000 to 4.77 million in the week ended Jan. 16.

 GBP/USD 4 Hour Chart:

Support: 1.3652 (S1), 1.3583 (S2), 1.3536 (S3).

Resistance: 1.3767 (R1), 1.3815 (R2), 1.3883 (R3).

Amidst all the catalysts creating pressure on the pound, we expect a bearish trend for GBP/USD.

FOMC statement puts pressure on the Gold

Gold is trading low from Wednesday after FOMC statement, and traders are awaiting the US Q4 advance GDP release for a fresh direction.

XAU/USD lost ground once again on Wednesday after the Fed left its key rates unchanged. Fed left their benchmark interest rate unchanged near zero as they flagged a moderating U.S. recovery and reiterated a pledge to use all available tools to support the economy during the coronavirus pandemic.

Powell said that the Fed would provide ample notice with concluding that it will slow its bond-buying program at the current pace of US$120 billion of purchases per month until “substantial further progress” toward its employment and inflation goals has been made. “We will communicate very clearly to the public,” he said, “and will do so, by the way, well in advance of active consideration of beginning a gradual taper of asset purchases.”

“The path of the economy will depend significantly on the course of the virus, including progress on vaccinations,” the statement said. “The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.”

“It’s very difficult to imagine out-of-control inflation,” Charles Evans, president of the Federal Reserve Bank of Chicago, said earlier this month. “I welcome above-2% inflation. Frankly, if we got 3% inflation, that would not be so bad.”

Elsewhere, USD is being supported by dovish commentary from ECB members and sources on Wednesday; ECB Governing Council Member Klaas Knot, who is typically one of the more hawkish members at the bank, made dovish remarks in which he said that the ECB has the necessary tools, including further rate cuts, to prevent any further strengthening of the EUR.

A latest news that ECB officials reportedly think that markets are underestimating the odds that the bank might cut interest rates and policymakers at the bank are said to agree that such stimulus remains a viable option. This latest news triggered a bout of weakness in EUR (and other G10 pairs) and strength in the US dollar, which has weighed on the precious metal.

XAU/USD 4 Hour Chart:

Support: 1831.2 (S1), 1820.4 (S2), 1809.5 (S3).

Resistance: 1853.0 (R1), 1863.9 (R2), 1874.7 (R3).

Amidst all the catalysts creating pressure on the yellow metal, we expect a bearish trend for XAU/USD.

Double Bottom Trading Strategy

The Double Bottom Chart Pattern Trading Strategy is a price action trading strategy and is considered as bullish reversal chart pattern and the Double Bottom Trading strategy is opposite of the double top chart pattern strategy. A double bottom chart pattern is made up of two bottoms or lows that are roughly equal with a peak in-between.

Timeframes: Works best on 15mins and above

Instrument : You can use this strategy for any Instruments

Identifying the double bottom chart pattern:

  • Identify the ongoing downtrend.
  • Then the Price finds a support level and this stops the downtrend move and price rallies to a new high forming a resistance level called the neckline which is the peak.
  • In the next stage, sellers get in and push down the price but when price reaches the previous low (bottom), price finds the support level it rallies back up.
  • These two bottoms are now a strong resistance level.

 

The double bottom pattern is confirmed when price breaks out above the neckline which is the peak or the resistance level it faced on its prior move up.

Let us understand with a chart below:

Trading Rules :

Trading the double bottom chart pattern is really simple and there are two ways to trade it:

  • The Aggressive Entry
  • The Conservation Entry

 

Entry Rules for the Aggressive Trade:

Following this method, you need not want to wait for the confirmation of the double bottom chart pattern. You can get in to the trade easily, based on the fact that a second bottom is forming and that’s when and where you enter a buy trade so that if price goes up and breaks the neckline, you have successfully bought at the very low price and you’ve be in for good profits!

  • After the second bottom is formed, watch for a bullish reversal candlestick formation.
  • Then place a buy stop order 3-5 pips above the high of the bullish reversal candlestick pattern.
  • After that place stop loss just at a few pips below the low of the bullish reversal candlestick formation anywhere from 5-10 pips or you can place it just place it a little bit outside of both the 1st bottom and the 2nd bottom, anywhere between 5-20 pips.
  • Set profit target, you can make use of the peak as your take profit target level.

 

Entry Rules for the Conservative Trade:

Entering conservative trade is only when the double bottom chart pattern is confirmed. If you follow this trade that means you also missed out on the price move from the bottom 2 to the neckline and this can be hundreds of pips move you would have missed.

  • First wait for price to break above the peak. Make sure the candlestick that breaks the peak must close above it.
  • After that place a buy stop order 3-5 pips above that breakout candlesticks high.
  • Then place stop loss anywhere from 3-10 pips above just below the peak or just a few pips (3-5 pips minimum) below the low of the breakout candlestick.

 

Set take profit by calculating the distance in pips between the peak and the 1st bottom (or the second bottom, whichever you prefer) and use the number to take profit target price level.

Pros :

  • It is based just on price action so you don’t need any other indicators to confirm your trade entry.
  • It is very easy to spot.
  • You can achieve high probability success trading by using bullish reversal candlesticks for trade entry confirmation.
  • You can achieve low risk trade entries with this trading strategy-very good Risk:Reward ratio.

 

Cons :

  • Not all patterns are 100% accurate, sometime there won’t be a double bottom chart pattern; price will just break through the support level (so no double bottom).
  • It might go unnoticed. How far the distances apart from the first bottom to the 2nd bottom formation is also a factor in how the market responds to the double bottom chart formation pattern-if it’s too far apart, it won’t be noticed, if it’s too close together, that is also an issue because it may be considered insignificant.

10 proven tips for achieving forex affiliate success

Introduction

As a forex affiliate, you are driven by two key goals. Firstly, to generate traffic for your website and secondly to increase the conversion of potential leads into trades. Both these goals translate into higher profitability; therefore it is crucial that all your marketing and promotional efforts are built with these goals in mind.

In this extremely competitive market of forex and CFD affiliate marketing, this is easier said than done. So, if you are someone who feels that they need to up their marketing game, then we at Winstoneprime have got you covered here!

The most important thing is to have a well thought out marketing strategy and plan that you can follow through till the end. This can be achieved by utilizing the 10 handpicked tips, which will help you drive more CFD and forex affiliate traffic to your website to get more rebates.

Here we have updated 10 proven tips that will help you achieve your financial goals:

Any successful business starts with a business plan. You should clearly realize what you are going get as the outcome. Of course, everyone wants to get money, as much as possible. So, you must clearly define how much you want to earn and over what period of time. If want to earn on the affiliate program more than 1000 USD per months, but you don’t have a profound knowledge of the principles of trading and you don’t have a big number like-minded people, it will be almost impossible to achieve, However, almost impossible doesn’t mean that is impossible at all. It only means that you’ll need to spend more time and effort. Well, for example, you’ve decided that 1000 USD will be enough at an early stage. This is what you should refer to later. So, the goal has been determined.

You shouldn’t participate in the affiliate programs offered by multiple brokers. There are a few reasons for this. First, all brokers offer similar affiliate program terms. Second, when there is each new potential client, you will hesitate which broker you should direct the client to, so won’t be able to use the full potential of the partner program offered by each broker. Third, each good broker, seeing that its partner works hard and generates profits, will be always willing to agree on individual conditions that will allow you to increase your income. Choose one broker and spend all your efforts on developing your affiliate program.

As we have already said you look for the answers to most questions you come across at the beginning of your trading career on the Internet, in particular, in the topical communities or on the forums. So, your social circle includes the participants of these communities and forums.

It is not a secret that people trust more the things they hear about more often. We don’t think much about it, but we buy those products whose commercials on TV are shown more often than others. Many products are basically the same, and our choice is affected by a trifle. You task is to make your name or nickname appear in the communities you take part in much more often than those of common users. Based on experience, it often turns out to be enough. There are plenty of ways to increase your popularity, and they do not require huge efforts. All you need to do is to increase your activity by about 5 times. Comment the posts 5 times more often, leave your feedback 5 times more often, like the topical posts more often, take part in discussions more often, and the most important, try to always express your opinion. It doesn’t matter if your opinion is right or wrong. It is 50% to be correct, so you can always count on the loyalty of a half of the audience.

Your activity is basically similar to the work performed by beginners. You are engaged in increasing your visibility on the Internet. The only difference is that you have much more knowledge and experience, and therefore, the circle of your contacts should be much wider. If in the first variant, your audience is beginners at about your level, at a professional stage, you can interest not only a part, but almost the entire audience. It all depends solely on your level of competence. The variety of materials you publish is much wider. In addition to simple overview materials, you can publish the articles containing an expert opinion, due to which most of your readers will see you as a tutor, and so, they will trust you more. Your comments will contain not only your personal opinion but an expert evaluation as well, which may attract clients from your competitors. But remember that you shouldn’t go too far. The audience on the Internet is quite demanding and does not like those who think too highly of themselves. Listen to your audience and tell them what they want to hear;

Of course, you can’t yet publish a tutorial or an analytical article. And you basically don’t need to. Write an overview of some element of trading process or trading terminal. What is the most important, don’t try to persuade that everyone that you’re right, you should rather express your opinion as a beginner user and give your personal assessment. As I said, you will always find both the supporters and the opponents of your viewpoint. Don’t worry about this. You have your audience, ask those people to assess your video.

Once people have started to click on your link, you will begin to receive affiliate income. Now you need to work with this. It is necessary to determine what people like more and publish this kind of material. Do not stand still, go to new websites, register on new forums and go all the way again. But at this stage, you will have experience and set up the interaction much faster. Remember, “to offer a person what you want, you first need to find out what she/he wants.”

Since you have knowledge and experience, you should make the most of them. In addition to common overview articles and video you can conduct online training and share your knowledge with the newbies. A rather popular form of this kind of activity is webinars. Define an interesting topic that is interesting for the majority and prepare for a webinar. Publish a few posts, where you mention your webinar and briefly dwell upon the topic. Broadcast the webinar at the appointed time. During the webinar, you mention your broker and “completely by chance”, speaking on the webinar topic, your place you referral link to your broker.

It can hardly be that all your audience is from your own town. So, you will have to keep in touch only by means of internet. That is not a problem. The majority sees you as an expert with huge experience. Don’t be afraid to your knowledge with people. Try to explain the concepts, people are interested in, in simple terms and in as many details as possible. If so, people themselves will soon contact you and ask you to help them in forex training or to give them some trading advice. Of course, training takes time, this time you will spend on each person individually and, therefore, this time must be paid for. Hint people at this. Of course, most people will doubt. And here you have a great offer. Most people, who will contact you, already have their own experience in trading, and therefore, they have their own trading account with a broker. Take advantage of this. Offer them an option that will not require actual payment, but they will have to open an account with your broker using your referral link. Believe me, this option will suit many of your potential clients because they won’t spend any money, but simply transfer their account to another broker. Well, I think you have already guessed what you will get);

The financial market is changing very quickly. Just five years ago, it was hardly possible to get high-quality forex education. There was only self-education available for everyone, but this takes quite much time and isn’t always efficient. Now, forex trading education is offered everywhere. But the problem is that it is very monotonous and primitive. Most so-called gurus may tell only about the support and resistance levels or offer you another super indicator. In the recent years, individual education has become very popular. This is what is called coaching. Beginners are always willing to interact with those who can teach them making profits on an own example. I mean that you can show in practice what you know in theory. It is simple, you agree on coaching and start teaching. The most important in this training that you recommend you students to open an account with your broker. That is how you attract the clients to you broker.

Trading Ideas: You have your audience on the Internet. You provide this audience with educational materials. It is time to enter a new level. Show them how a real professional should work. Stress how much your earned having closed the position you had described last time. Sooner or later, some of your students will ask you to recommend them a potential entry point. You may share you trading ideas but do this in the way that everyone will see this act of generosity. When you recommend a trading idea, stress that it will work out only if his/her trading conditions are be the same as yours, that is, his/her broker’s commissions and other terms are the same as yours, your trading idea will yield them more profits. And you can offer the person your referral link so that he/she can get familiar with the conditions under which you are trading. Again, it all is rather simple.

As you can see, everything is quite simple and will not require you to superpowers. But there is one big “BUT”. I have described an option for middle- and high-class specialists. If your “very deep professional” knowledge is limited to terms such as support / resistance line, trend, indicator, stop loss, and a couple of words, but the terms such as liquidity, volatility, divergence, basis, hedging, contango, market maker, markup, averaging, expiration do not say anything to you, you may be overestimating your knowledge and skills.

We offer several different partnership options, such as our Introducing Business Partner program and Affiliates, that offers various benefits to your day to day trading experience, as well as, excellent promotional tools, 24/7 access to the Partner Portal, advanced analytics tools and access to exclusive features designed especially for Winstone Prime partners.