If you are a beginner and keen understand about Forex trading. It gives you the basic knowledge and learn how to be successful in forex trading. This book covers :
♦ Basic and Common trading knowledge
♦ Fundamental and Technical Analysis.
♦ Fibonacci constants and Elliott waves theory
♦ Trade systems and many essential topics!
Ability to spot reversal patterns when they form is important skill for the traders. One of the popular reversal patterns is the bullish engulfing pattern.
It consists of 2 candlesticks, the first one is bearish and the second one is bullish. In this pattern the second bullish candlestick “engulfs” the bearish candlestick before it. Here is an example of an engulfing pattern:
Instruments : You can use this strategy for any Instruments.
Timeframes : 15 minutes and above.
Bullish Engulfing Patterns :
Few examples are shown in the chart find out how the formation of bullish engulfing pattern results in price moving upward.
Bearish Engulfing Patterns :
Few examples are shown in the chart find out how the formation of bearish engulfing pattern results in price moving downwards.
Don’t look at all bullish engulfing and bearish engulfing equally.
You should not try to take a buy trade on every single bullish engulfing pattern and sell trade on every bearish engulfing pattern you see on your charts.
You should only be looking to buy when the bullish engulfing pattern and sell trade on bearish engulfing pattern forms on these levels:
Trading Rules :
Pros :
Cons :
At its Aug.4 policy meeting, the Reserve Bank of Australia (RBA) held its cash rate at a record low of 0.25% in an expected decision. It slashed rates in an emergency meeting in March. Australia’s central bank does not need to further ease policy for now as its package of measures was working broadly as expected with an economic recovery underway in most of the country, minutes of its August policy meeting showed on Tuesday.
As per the RBA minutes, The Board reaffirmed the elements of the policy package announced on 19 March 2020, namely: a target for the cash rate of 0.25 percent, a target of 0.25 percent for the yield on 3-year Australian Government bonds, the Term Funding Facility to support credit to businesses, particularly small and medium-sized businesses, an interest rate of 10 basis points on Exchange Settlement balances held by financial institutions at the Bank.
The Board affirmed that the yield target for 3-year bonds would be maintained until progress is made towards the Bank’s goals of full employment and the inflation target, and that it would be appropriate to remove the yield target before the cash rate itself is raised. The Board determined that it would not increase the cash rate target until progress is made towards full employment and it is confident that inflation will be sustainably within the 2-3 percent target band.
Other than the upbeat data, the lowest prints of the corona virus (COVID-19) cases in Australia’s epicenter Victoria also helps the Aussie pair to remain firm. The latest figures suggest new cases rose 222 while there were 17 more deaths due to the pandemic on Monday. The figures were the lowest since July 18. However, news that the city of Sydney was added to the New South Wales (NSW) COVID-19 hotspot covered the optimism.
On the other hand, the US-China tussle continues, A former Central Intelligence Agency and FBI officer was arrested and charged with spying for China in a years-long operation, the US Justice Department said on Monday. Alexander Yuk Ching Ma, aged 67, according to court documents, was arrested on Friday on charges of conspiracy to communicate national defense information to aid a foreign government and faces a maximum penalty of life imprisonment if convicted, the Justice Department said.
AUD/USD 4 Hour Chart:
Support: 0.7180 (S1), 0.7147 (S2), 0.7123 (S3).
Resistance: 0.7236 (R1), 0.7260 (R2), 0.7293 (R3).
The optimistic RBA minutes release favors Aussie against greenback. We expect a bullish trend for AUD/USD.
In US, Lawmakers from both the House of Representatives and the Senate have largely returned to their home states for August recess, according to a report. As such, the much-anticipated stimulus is likely to remain elusive at least until September, when lawmakers will return to work.
“We will have our regular pro forma meetings through the end of the state work period,” McConnell said. “If the Speaker of the House and the minority leader of the Senate decide to finally let another package move forward, it would take bipartisan consent to meet for legislative business sooner than scheduled,” McConnell said.
The United States and China postponed a Saturday review of their Phase 1 trade deal, people familiar with the plans told Reuters, citing scheduling conflicts.
One source familiar with the talks said the delay was related to a conference of senior Communist Party leaders at the seaside town of Beidaihe on China’s northeast coast. The postponement did not reflect any substantive problem with the trade deal, the source said, adding: “The new date has not been finalized yet.”
U.S. President Donald Trump on Friday repeated his view that the trade deal was “doing very well,” but did not comment on the delayed meeting.
In the meantime, President Donald Trump signed an executive order on Thursday banning transactions with ByteDance, the parent company of popular app TikTok. The White House also announced that he signed a similar order banning transactions with WeChat, the messaging app owned by Tencent that is ubiquitous in China, but has a much smaller presence than TikTok in the United States, where it is used mainly by members of the Chinese diaspora.
Microsoft announced over the weekend that it is in negotiations to buy TikTok from ByteDance, naming September 15 as a deadline for negotiations. The order would take effect shortly after the deadline set by Microsoft for the deal. ByteDance reportedly agreed to give up its entire ownership in the app even though it had previously wanted to maintain a minority stake.
EUR/USD 4 Hours Chart:
Support: 1.1798 (S1), 1.1755 (S2), 1.1730 (S3).
Resistance: 1.1867 (R1), 1.1893 (R2), 1.1935 (R3).
The Delay in the Fiscal stimulus and US-China deal setbacks greenback against Euro. We expect a bullish trend for EUR/USD.
