DAX Trading forecasts and signals

In the macroeconomic statistics coming out next week, the following indicators can be distinguishedMondayIn Japan, the producer price index and the indicator of the activity of large enterprises in the manufacturing sector will be released. The US will publish a monthly report on the state of the budget.TuesdayReserve Bank of Australia Governor Philip Lowe and his economic adviser Lucy Ellis will make statements. And also in Australia, the house price index will be published. The National Bank of Australia will present the confidence index and the index of business conditions. In Japan, data on industrial production and capacity utilization will be released. In the UK, the number of applications for unemployment benefits, an indicator of the unemployment rate and the size of the average salary will be published. In Switzerland, the producer and import price index will be released. In Sweden and Spain, consumer price indices will be known. In Canada, the volume of production sales will be released. In the US, the basic and main consumer price indices and the Redbook retail sales indicator will be published. The American Petroleum Institute will report last week on the reserves of raw materials.WednesdayIn New Zealand, the balance of payments and the current account will be released. Japan will publish orders for engineering products and an index of activity in the service sector. In Australia, the Westpac consumer confidence index and new home sales data will be released. In China, the housing price index, retail sales and industrial production data will be known. The National Bureau of Statistics of China will hold a press conference. In the UK, the retail price index, the basic and main consumer price indices will be released. France and Italy will also publish consumer inflation data. In the Eurozone, the indicators of industrial production and costs per unit of labor will be known. In the US, the MBA mortgage lending index, an indicator of business activity in the manufacturing sector of New York, import and export price indices and industrial production data will be released. In Canada, the basic and main consumer price indices will be known. The Energy Information Administration will report last week on commercial oil reserves in the United States.ThursdayIn New Zealand, the REINZ house price index and economic growth indicators for the second quarter of this year will be published. Japan will release data on imports, exports and the total trade balance, as well as indicators of investment in foreign and Japanese securities. In Australia, the indicators of full and part-time employment, the unemployment rate and expectations for consumer price inflation will be known. The Bank of Australia will present a report on financial and economic changes. In Switzerland, the forecast of the development of the national economy from SECO will be released. The trade balance will be published in the Eurozone. In Canada, data on the construction of houses started, the ADP employment report, wholesale sales data and the volume of Canadian and foreign investments in national securities will be known. In the United States, retail sales data, the number of initial and repeated applications for unemployment benefits, the index of business activity in the manufacturing sector of Philadelphia and the volume of purchases of American securities by foreign investors will be released. The Energy Information Administration will report last week on natural gas reserves in the United States.FridayIn New Zealand, the index of business activity in the manufacturing sector will be released. In the UK, retail sales figures and the forecast of consumer price inflation will be published. In the Eurozone, the basic and main consumer price indices, the volume of production in the construction sector and the current account balance will be known. In the US, the University of Michigan consumer confidence index will be published. Baker Hughes will report on the number of active drilling rigs last week in the United States and the ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished:MondayIn New Zealand, the ANZ commodity price index will be published. In Australia, TD Securities inflation data and the ANZ vacancy index will be released. In Germany, the indicators of production orders will be known. A meeting of the Council of Finance and Economy Ministers will be held in the Eurozone. And also in the Eurozone, the Sentix investor confidence indicator will be released. In the UK, the index of business activity in the construction sector will be published. Labor Day is celebrated in the United States, markets are closed, macroeconomic statistics are not published.TuesdayIn Australia, the AiG index of activity in the service sector will be released. In Japan, the change in the level of wages, the level of household spending, the indices of coinciding and leading indicators will be published. In China, data on imports, exports and the overall trade balance will be known. On this day, a meeting of the Reserve Bank of Australia will be held, the regulator's decision on the interest rate will be known. The unemployment rate will be released in Switzerland, and industrial production data will be released in Germany. In the UK, the Halifax house price index will be published. The Eurozone will publish GDP data for the second quarter, as well as an index of economic sentiment and the level of employment. The ZEW Institute will present an index of business sentiment and an indicator of the assessment of current economic conditions in Germany. The placement of short-term government securities will take place in the United States.WednesdayJapan will publish annual and quarterly economic growth data, consumer credit indicators and the overall trade balance. Eco Watchers will present a forecast of the situation and an index of the current situation in Japan. In France, the number of new jobs outside agriculture, import and export data and the overall trade balance will be known. Industrial production figures will be released in Sweden, and retail sales data will be released in Italy. In Russia, the consumer price index will be published. In the US, the MBA mortgage lending index, the Redbook retail sales indicator, JOLTS open vacancies data, the Fed's Beige Book review and an indicator of economic optimism will be published. In Canada, the Ivey business activity index will be released. On Wednesday, the Bank of Canada will also hold a meeting, the regulator's decision on the interest rate will become known. The American Petroleum Institute and the Energy Information Administration will report on the reserves of raw materials for the past week. Fed representative John Williams will make a speech.ThursdayIn New Zealand, the volume of sales in the industrial sector will be published. In Japan, the volume of investments in foreign and Japanese securities will be known. In China, the consumer price index and the producer price index will be released. In Germany, the indicators of imports, exports and the overall trade balance will be published. On the same day, a meeting of the European Central Bank will be held, the decision on the interest rate will be announced. The US will publish the number of initial and repeated applications for unemployment benefits. The Energy Information Administration will report on natural gas reserves for the past week. The head of the Bank of Canada, Tiff Macklem, will make a speech.FridayRetail sales data will be released in New Zealand. The UK will publish data on industrial production and production in the manufacturing sector, the index of activity in the services sector, the overall trade balance and monthly GDP data. In Germany, inflation indicators will be released, including the basic and main consumer price indices. In France, Italy and Spain, industrial production data will be published. In Russia, the regulator's decision on the interest rate will become known. In the US, the producer price index will be published. In Canada, a block of labor market statistics for August will be released, including the unemployment rate, changes in the number of employees, average hourly wages and the share of the labor force in the total population. Baker Hughes will report last week on the number of active drilling ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished :MondayRetail sales data will be released in Japan.In Switzerland, the KOF index of leading indicators will be published, and in Spain – consumer inflation data. In the Eurozone, the index of business optimism in industry, the indicator of the business climate, the indicator of sentiment in the economy, the level of consumer confidence and the indicator of sentiment in the service sector will be released. In Germany, the inflation indicators, including the basic and main consumer price indices, will be known.In Canada, the balance of payments will be published. In the United States, pending home sales transactions and the Dallas Federal Reserve's index of business activity in the industrial sector will be published.TuesdayNew Zealand will publish building permits. In Japan, the unemployment rate, the ratio of the number of vacancies and applicants, as well as industrial production data will be released. In China, the indices of business activity in the service sector and in the manufacturing sector will be known. In Australia, TD Securities inflation data, the balance of payments balance, private sector lending data and construction permits will be released. The National Bank of New Zealand will present a forecast of activity, and the Reserve Bank will present an index of business optimism. In Japan, the volume of orders in the construction sector, indicators of the construction of houses started and the consumer confidence index will be published.In France, economic growth data for the second quarter of this year, the consumer price index and the volume of consumer spending will be known. In Germany, the unemployment rate will be released, and in the UK, consumer lending data and the number of approved mortgage applications will be released. The main and basic consumer price indices will be published in the Eurozone.In Canada, annual and quarterly GDP data will be released. In the US, the Redbook retail price index, the housing price index and the level of consumer confidence will be published. The American Petroleum Institute will report on oil reserves for the past week.WednesdayIn Australia, the AiG index of activity in the manufacturing sector, an indicator of business activity in the manufacturing sector and economic growth data for the second quarter of 2021 will be released. In Japan, capital expenditures and the Jibun Bank PMI index in the manufacturing sector will be announced. In China, the Caixin PMI index in manufacturing will be published.In the UK, the Nationwide house price index will be released. In Russia, Sweden, Spain, Italy, Germany, the Eurozone and the UK, business activity indices in the manufacturing sector will be published. In Germany, retail sales data will be published, and in Switzerland – the SVME business activity index. In the Eurozone and in Russia, the unemployment rate will come out. The head of the Bundesbank, Jens Weidmann, will make a speech.The US will publish the MBA mortgage lending index, the ADP report on the level of employment in August, construction spending and the indicator of business activity in the manufacturing sector. In Canada, the index of business activity in manufacturing will also be released. The Energy Information Administration will report on commercial oil reserves in the United States for the past week.ThursdayJapan will publish data on foreign and Japanese investments in securities. In Australia, data on imports, exports and the overall trade balance will be released.In Switzerland, the consumer price index and economic growth data for the second quarter of 2021 will be released. In the Eurozone, the producer price index will be published.The US will publish the number of initial and repeated applications for unemployment benefits, costs per unit of labor, labor productivity, the trade balance and the volume of production orders. In Canada, the indicators of imports, exports, the total balance of trade in goods and the number of construction permits will be released. The Energy Information Administration will report last week on natural gas reserves in the United States.FridayIn Australia, the index of activity in the construction sector and in the service sector will be released. In Japan, the Jibun Bank manufacturing PMI will be published, and in China, the Caixin PMI index in the service sector will be published.In Russia, Spain, France, Germany, the Eurozone and the United Kingdom, the indicators of business activity in the service sector will be known. The balance of payments will be released in Sweden, and retail sales data will be released in the Eurozone.The US will publish labor market data for August, including: the number of new jobs outside of agriculture, the unemployment rate, the average hourly wage and the share of the labor force in the total population. And also in the US, the index of business activity in the services sector will be released. In Canada, labor productivity indicators will be known. Baker Hughes will report on the number of active drilling rigs last week in the United States and the ...

The Ember European Center reported that the volume of solar energy generation in the European Union reached a maximum in two summer months. Its share in the total volume of electricity has risen to 10%. In some EU countries, it has even exceeded this level. For example, in the Netherlands and Germany, the share of energy received from solar panels was 17%, in Spain – 16%. Record volumes of solar energy generated were recorded in 8 countries of the European Union. According to Charles Moore, an analyst from the Ember Center, an energy revolution is taking place in Europe. However, there is still a long way to go for the sun to provide more energy than fossil fuels. The cost of solar electricity has been constantly decreasing over the past ten years. Charles Moore also noted that the EU intends to achieve the target on harmful emissions by 2030. However, to do this, it is necessary to double the volume of solar energy ...

July inflation in the eurozone countries amounted to 2.2% in annual terms, which is 0.3 percentage points higher than the growth rate of consumer prices in the previous month. This is evidenced by the final assessment of price dynamics published by Eurostat. The indicator corresponds to the preliminary data and the forecast of the surveyed analysts. In July last year, inflation in the eurozone was recorded at the level of 0.4%. The assessment of the price dynamics in monthly terms also did not change. Eurostat confirmed that in July, consumer prices increased by 0.7% compared to the previous month. At the same time, a month earlier, inflation was 0.9%. In the EU countries, inflation, calculated in monthly terms, has not changed. And compared to July last year, the price growth accelerated to 2.5% from 2.2% in June. In all countries that are part of the eurozone, consumer prices rose in July. At the same time, Estonia, Poland and Lithuania became the leaders in terms of ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished :MondayIn New Zealand, the index of activity in the service sector from Business NZ will be published. Annual economic growth data will be released in Japan. In China, the indicators of retail sales and industrial production, as well as the housing price index will be known. The National Bureau of Statistics of the People's Republic of China will hold a press conference.In the UK, the Rightmove house price index will be released. The Bundesbank will present a monthly report that contains an analysis of the current and expected state of the economy. The unemployment rate will be known in Russia.The US will publish the index of business activity in the manufacturing sector of New York and the total volume of purchases of American securities by foreign investors. In Canada, the volume of production and wholesale sales will be known.TuesdayThe Reserve Bank of Australia will present the minutes of the meeting that took place two weeks ago. In Japan, the index of activity in the service sector will be known.The UK will publish the unemployment rate, the number of applications for unemployment benefits and the level of average wages. In the Eurozone, economic growth data for the second quarter of 2021, the volume of production in the construction sector and the level of employment will be released.In Canada, the indicators of the construction of houses started and the data of Canadian and foreign investments will be known. In the US, the volume of retail sales, the Redbook retail sales index, industrial production indicators and the housing market value indicator will be published. The American Petroleum Institute will report last week on the reserves of raw materials.WednesdayIn New Zealand, the REINZ housing price index and the indicator of producer selling prices will be published. In Japan, data on imports, exports and the overall trade balance will be released, as well as orders for mechanical engineering products. In Australia, the index of leading economic indicators and the wage indicator will be known. A meeting of the Reserve Bank of New Zealand will be held, the regulator's decision on the interest rate will become known.In the UK and in the Eurozone, inflation data will be published, including the basic and main consumer price indices. In the UK, the retail price index and the housing price indicator will also be known. In Russia, the producer price index will be released.In the US, the MBA mortgage lending indicator, data on the construction of houses started and the dynamics of construction permits will be released. In Canada, the basic and main indicators of consumer prices will be released. The Energy Information Administration will report on commercial oil reserves in the United States for the past week. The US Open Market Committee will present the minutes of its meeting, which took place two weeks ago.ThursdayJapan will publish data on foreign and Japanese investments. In Australia, indicators of full and part-time employment, the unemployment rate and the share of the labor force in the total population will be released.In Switzerland, data on imports, exports and the total trade balance, as well as the volume of industrial production, will be known. The Bank of Russia will report on international reserves.In the US, the number of initial and repeated applications for unemployment benefits and the index of business activity in the manufacturing sector of the Philadelphia Federal Reserve will be published. In Canada, the ADP employment report will be released. The Energy Information Administration will report on natural gas reserves in the United States for the past week.FridayIn Japan, the consumer price index will be published. The deputy head of the Reserve Bank of Australia, Christopher Kent, will make a speech. On Friday, the Reserve Bank of China will hold a meeting, the regulator's decision on the interest rate will be announced.In the UK, the Gfk consumer confidence index, retail sales data and net public sector borrowing will be released. In Germany, the producer price index will be published.In Canada, retail sales data and the index of housing prices in the primary market will be known. Baker Hughes will report on the number of active drilling rigs in the United States and the ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished:MondayChina will release consumer price index and producer price index.Switzerland will publish the unemployment rate, and Germany - data on imports, exports and the general trade balance. In the Eurozone, the Sentix investor confidence indicator will be announced.In Canada, there will be data on the construction of houses. JOLTS is to publish job openings in the US.TuesdayNew Zealand is to publish retail sales data. In Australia, new home sales data will become known. The National Bank of Australia will present an indicator of confidence and an index of conditions in the business environment. Eco Watchers is to publish a forecast for the development of the situation and an index of the current situation in Japan.BRC retail sales are due in the UK and industrial production in Sweden. The ZEW Institute will present an index for assessing the current economic conditions and an indicator of business sentiment in Germany, as well as an indicator of economic sentiment in the Eurozone.The US is to publish the NFIB Business Optimism Index, unit labor costs, non-agricultural productivity and the Redbook retail sales index. The American Petroleum Institute will report on oil reserves last week.WednesdayWestpac consumer confidence is due in Australia. In Japan, the volume of orders for machinery and equipment will be known.In Germany and Italy will publish data on consumer inflation. In Russia, the balance of foreign trade will be published.In the US, the MBA mortgage lending index, base and main consumer price indices and a monthly budget report will be released. The Energy Information Administration will report last week on US commercial oil reserves.ThursdayIn Japan, the producer price index will be released. Australia is to publish consumer price inflation expectations. The Reserve Bank of New Zealand will present its inflation expectations.In the UK, there are data on industrial production and manufacturing in the manufacturing sector, economic growth for the second quarter of this year, the total volume of commercial investment, the index of activity in the service sector and the general balance of trade. In the Eurozone, industrial production data will become known.In the US, will publish the producer price index, the number of initial and repeated applications for unemployment benefits. The Energy Information Administration will report last week on US natural gas reserves.FridayNew Zealand is to publish an index of business activity in the manufacturing sector. In Japan, there will be data on foreign and national investments in securities.In Germany, the wholesale price index will become known, and in Switzerland - the producer and import price index. In France, Spain and Sweden will publish the consumer price index. The trade balance will be released in the Eurozone.The US is to publish import and export price indices, as well as the University of Michigan consumer confidence indicator. Baker Hughes will report last week the number of active rigs in the US and ...

In the macroeconomic statistics coming out next week, the following indicators can be distinguished :MondayIn Australia, the index of activity in the manufacturing sector from AiG and the PMI in the manufacturing industry will be published. And also in Australia, the TD Securities inflation data and the ANZ vacancy index will be known. In China, the Caixin PMI index in manufacturing will be released, and in Japan – an indicator of consumer confidence.In Russia, Sweden, Spain, Italy, France, Germany, the Eurozone and the UK, business activity indices in the manufacturing sector will be published. The SVME activity index will be released in Switzerland.In the US, the ISM business activity index in the manufacturing sector will be known.TuesdayIn Japan, the consumer price index will be published. In Australia, data on construction permits and the raw material price index will be released. On the same day, a scheduled meeting of the Reserve Bank of Australia will be held, the decision on the interest rate will be announced.The producer price index will be released in the Eurozone, and the SECO consumer confidence indicator will be released in Switzerland.In the US, the Redbook retail sales index, production orders data, an indicator of economic optimism and the ISM New York business conditions index will be released. In Canada, the indicator of business activity in the manufacturing sector will be known. The American Petroleum Institute will report on oil reserves last week.WednesdayIn Australia, business activity indices in the construction sector and in the service sector from AiG, and retail sales data will be published. In New Zealand, the unemployment rate, the labor cost index and the commodity price index from ANZ will be released. In China, the Caixin PMI index in the services sector will be known.In Russia, Spain, Italy, France, Germany, the Eurozone and the UK, business activity indices in the services sector will be published. Retail sales data will also be released in the Eurozone.In Canada, the data of construction permits will become known. In the US, the MBA mortgage lending index, the ADP report on the level of employment in the private sector and the indicator of business activity in the service sector will be published. The Energy Information Administration will report on commercial oil reserves in the United States for the past week.ThursdayJapan will publish indicators of investments in foreign and local securities. In Australia, data on imports, exports and the overall trade balance will be released.In Germany, the data of production orders will be known, and in France – industrial production. The European Central Bank will present an economic report on the results of the meeting of the Board of Governors. A meeting of the Bank of England will be held on this day. The regulator will publish its decision on changing the interest rate and submit a report on monetary policy. The head of the Bank of England, Andrew Bailey, will make a statement. In Russia, the consumer price index will be published.In the US, the number of initial and repeated applications for unemployment benefits and the balance of trade in goods will be released. In Canada, the indicators of imports, exports and the overall trade balance will be known. The Energy Information Administration will report last week on natural gas reserves in the United States.FridayIn Australia, the AiG index of activity in the service sector will be released. The head of the Reserve Bank of Australia, Philip Lowe, will make a speech. The RBA will also present its position on monetary policy. In Japan, changes in wages, data on household spending, indices of leading and coinciding indicators will be published.In Germany, industrial production data will be published, and in the UK – the Halifax house price index. In France, data on imports, exports and the overall trade balance will be known. In Italy, the indicators of industrial production will be released.The US will publish a large block of employment market data for July, including the unemployment rate, the number of new jobs outside agriculture and the average hourly wage. In the US, the volume of commodity stocks and the dynamics of the volume of consumer lending will also be published. In Canada, the unemployment rate, the change in the number of people employed, the share of the labor force in the total population and the average hourly wage, as well as the Ivey business activity index, will also be released. Baker Hughes will report last week on the number of active drilling rigs in the United States and in the ...

Trading using a strategy of playing against the crowd is a style of investing that goes against the prevailing market trends by buying assets that are performing poorly and then selling them when they prove themselves.A trader who plays against the crowd believes that people who say the market is going up only do so when they have fully invested everything and have no further buying power. At that point, the market is at its peak. On the other hand, people predict a downturn when they have already sold out everything, at which point the market can only go up.Investors who act against the crowd tend to use various sentiment indicators, particularly those that emphasise out-of-favour securities with low price/earnings ratios (P/E ratios).Simply put - if you follow the herd, it will lead you to the slaughterhouse. Such traders swim against the current and assume that the market is usually wrong on both its lows and highs. They believe that the more the price fluctuates, the more misguided the rest of the market must be.The basics of trading against the crowd strategyThe strategy of trading against the crowd is not as simple as adopting a position that is the opposite of the common public view - "the trend is your friend". A stock that rises higher and higher over an extended period of time will naturally receive a lot of positive sentiment from traders - this does not mean that an investor trading against the crowd will immediately hate that stock and act the opposite. Going against the price trend is always a tough way to play. This approach is to look for a stock for which the sentiment of most traders does not coincide with the established trend. In other words, traders trading against the crowd are looking for stocks that are going up, despite a significant amount of pessimism.Read more: How to invest in stocks and what you need to knowThe reason behind this strategy is that pessimism indicates that many investors are avoiding the stock and therefore sitting on the sidelines. If the stock continues to rise, then at some point the mood will change and money from the outside will start pouring into that stock, thereby causing its price to rise in a short period of time. Rapid and violent consolidation is particularly useful for those who are options traders who trade against the crowd.Indicators for the trader who trades against the crowdTraders who trade against the crowd are constantly monitoring the markets and reading about stocks, which implies a sense of sentiment. It also helps to gain the ability to quantify sentiment, and this can be done in several different ways:Feedback from analysts, for example, is fairly straightforward. Analysts make recommendations regarding buying/holding/selling a stock, depending on what they think investors should do. If a stock rises higher but has almost no "buy" recommendation, then there is the potential for upside - which could influence those traders on the sidelines to buy the stock.Shorting a stock or buying put options are two ways in which investors can profit when a stock falls in value. Thus, tracking changes in the amount of borrowed securities sold short and the number of put option purchases are ways to quantify the negative sentiment towards a stock. If there is a large number of these negative bets being placed on a stock while it is moving higher and higher, then a trader who trades against the crowd can assume that there is a significant amount of money from the outside that can still be leveraged to keep the consolidation ...

A formation on a price chart known as a "GAP", which stands for "price break", is classified as a technical analysis pattern. Under certain conditions, such formation allows to analyze and predict the price behaviour and works out perfectly in deals.How to determine the Gap on the chartVisually, it represents a break in the price curve with a sharp jump up or down, either with or against the trend. It is not equally visible on different types of charts. For example, on the candlestick and bar chart, the GAP is clearly visible, while on the line chart it is more difficult to detect.Why does GAP occur?The reasons for its emergence in different assets can be different, but they are associated with a single component - a sharp change in the market situation. Price gaps can form in the following circumstances:During the weekend.The information that comes after the market closes is not considered in the quotes, and at the market opening, this factor will cause a sharp fall or rise in the quotes with the formation of a gap in the appropriate direction on the price chart.At the change of trading sessions.Such a GAP is formed due to different circumstances of the market. It occurs rarely, it appears against the background of abrupt changes in the market, and with a proper understanding of the market situation, it works well. For example, if the opening of the session is accompanied by a sharp upward price break, the market situation can be considered in the perspective of an upward trend. If there is a GAP going downwards, we can assume that a downtrend is about to form.When an "information gap" appears in the quotes flow.This event should be considered as one of the technical aspects when the market stalls on the background of a long absence or on the eve of the release of, particularly important news. If the forecast for the respective asset coincides with the news event, the price gaps on that asset will be minimal, otherwise, a large and beautiful GEP can be seen on the chart.Gaps are more clearly visible in highly volatile assets that form small candles on the chart. Their frequent appearance is characteristic of the stock market and the metals market.GAP as an analysis and trading toolThe formation of price hollows (GAPs) can be used in trading practice as a separate pattern or as a supporting tool in a trading system, the rules of which do not prohibit it. In the analysis of the market situation, the GAP is perfectly combined with any analytical tool. There are several variants of its use in trading, depending on the place and time of its formation. Famous and world-renowned traders also use it in different ways, everyone has his own view of the situation regarding the price gap.There is also a basis that unites the different views - the boundaries formed by the GAP should be viewed as a price channel, bounded by significant price levels. By breaking one of them towards the second level, the price signals that it will not tolerate a "void" and will soon fill it. This event should be used when opening a position in the direction of the breakout.What are the GAPs?The model is classified by the size of the gap in price and its direction, allocating four categories: An ordinary GAP - it is characterized by a small gap, barely visible on the price chart and is insufficiently informative for technical analysis. Most often such a gap on the chart is quickly covered by a trend.The Gap Breakout is a more useful type of Gap, occurring at the opening of the market. It is characterized by the price breaking through trend levels and channel borders.Acceleration gap - such GAP is characterized by its abrupt formation on the accelerated trend, rapidly gaining strength.Gap depletion - places of its formation should be looked for near strong price landmarks.The price always returns to the level where the GAP was formed, in order to fill the "market void" created by it.Famous traders recommendWhen they say "famous traders", they do not mean just successful traders, but people with deep knowledge of the specifics of the market, laws of its operation, and patterns in price movement.John Murphy is a well-known trader, money manager, brilliant analyst, and author of many works devoted to trading. His trading experience is about 30 years.J. Murphy believes that the result of market forecasting by means of GAPs depends on the place of their formation on the price chart, and also distinguishes four types of this candlestick pattern:Simple - its appearance is characteristic for the calm market, this kind of gap is not of interest for forecasting its further direction. Its formation on a specific asset indicates a small interest of players in this asset, so even a small amount of investment can contribute to its appearance. Analysts ignore this signal.On the Gap - In terms of potential profits, such a GAP is interesting. It appears in the final phase of the formation of a certain price pattern and may indicate a significant change in the market situation. It occurs less frequently, but it is closely related to almost all known patterns and is a confirmation of the signals from them. Its appearance often occurs against the background of growing trading volume and its market void is rarely, rarely or almost never overlapped by the price. Murphy derived his own pattern for this GAP - the higher the volume at its formation, the less likely it is to overlap the price in the long run.On the breakaway - it is characterized by formation along with the trend, it is often situated in its middle, several price gaps may appear at once. It is a signal to the continuation of the current trend even at small volumes of trade. We should count the points before the Gap formation and multiply the result by 2 to find the number of points the price will be able to pass before the reversal.On the flying out - it is formed in the final phase of the trend with the gaps of 2 and 3 types preceding it. Traders use it as a signal to open opposite deal when the price is in the range of its channel and rushes to its closing.Jack Schwager is a trader best known for making accurate forecasts of price movements on the futures market. He is head of Fortune Group holding company, researches dynamics of hedge funds, conducts seminars on "Market Analytics".Read more: What are futures: types, features, advantages and risksJ. Schwager, like J. Murphy, also distinguishes four types of GAP:Normal - not informative, recommends ignoring it.Gap on breakdown - it is formed when the price leaves a certain range. Schwager recommends it to be used as a strong trading signal, provided that this GAP does not overlap the price for several trading days.Acceleration Gap - formed in parallel with the acceleration of the trend and can be formed several times for several consecutive days.Exhaustion Gap - drawn at the final stage of a trend, it is used as a signal of an imminent change in the trend.Many successful traders are excellent analysts, who are able to conduct a deep analysis of the market and give the most accurate quotes forecasts. You should listen to their ...

Cryptocurrency is in vogue these days, and its popularity continues to grow. With the frequent emergence of new cryptocurrencies and people with high social clout, such as Ilon Musk, scribbling daily tweets on the subject, the concept of digital currencies continues to gain momentum.Subsequently, millions of people from all over the world are turning to the most famous cryptocurrencies such as Bitcoin, Lightcoin, Etherium and others to take advantage of lucrative investment opportunities and make quick money.Cryptocurrency trading mistakes to avoidWhile it's true that smart investments in cryptocurrencies can indeed yield impressively high returns in relatively short periods of time, it's also important to understand the volatility of cryptocurrency trading.Read more: Volatility: types, how to track and how to useBy having the necessary knowledge and information in advance, you can hedge against potential losses and only make investments that bring you returns. Here are 3 major mistakes that almost every novice cryptocurrency trader makes and that you should try to avoid in order to make better investments.Mistake #1. Making emotionally motivated trading decisionsEven though cryptocurrency trading involves risks, trading decisions are usually made strategically with a lot of market fundamentals, trends and signals in mind.With all the hype surrounding cryptocurrencies, people are often tempted to deviate from their strategies and make decisions based on emotion due to winner's syndrome, environmental pressure or similar biases.People may even start panic selling as soon as they see an unexpected negative trend in the market. While people like to believe that deviating from their strategy and making decisions based on emotion can help them minimise losses in a falling market, this is not entirely true.Even if things don't go as planned, it is best to review your strategy and develop a contingency plan instead of making decisions based on emotion. Using modern trading software and automation can help you minimise emotional biases in your trading strategy.Mistake #2. Ignoring risk management techniquesJust like any other investment, diversifying your portfolio in cryptocurrency trading can go a long way in helping you mitigate risk. A good strategy to diversify your crypto portfolio is to trade in pairs. Popular cryptocurrency pairs include BTC/EUR, BTC/USD, BTC/BCH, BTC/ETH and BTC/GBP.Another very effective method of risk management is the use of a stop loss. This tool allows you to automatically liquidate your investment as soon as the value of your asset reaches a specified price. You can use stop-losses after carefully analyzing your risk tolerance and incorporate this method into your broader cryptocurrency trading strategy.Mistake #3. Using an unsuitable trading platformBuying and selling cryptocurrencies largely depends on the type of platform you use to make transactions and track price trends. Using the wrong cryptocurrency trading platforms can make it difficult to track and analyse market trends.This will deprive you of vital trading signals and information that can lead to a positive investment outcome. People are often inclined to use unsuitable platforms and end up making bad decisions.In order to trade cryptocurrencies such as Bitcoins in the most efficient and effective way, it is important that you choose a legitimate platform.Regardless of your expertise or experience, the platform should offer tools that allow anyone to engage in profitable cryptocurrency trading.ConclusionWith the right information, knowledge and assistance, cryptocurrency trading can be seen as an incredibly effective tool for generating income and multiplying your start-up capital. If you manage to stick to best practices and avoid typical mistakes, positive results are almost ...

A Stop Loss is an exit order that is used to limit the amount of loss a trader can take on a trade if the trade goes against him. It also eliminates the worry that every trader inevitably faces when being in a losing trade without a plan. No trading system will make a profit on every trade all the time, and losing trades are natural. Successful risk management means minimising losses. A stop-loss can be an effective solution to this.If you decide to use a stop loss, it is important to find a good place for it. If the stop order is too close to the current price, there is a risk that price volatility will hit this order during a false move, and then go in the direction you expected, so you will lose money and earn nothing. If the stop order is too far away from the current price, the trader could be vulnerable to large losses if the market reverses against his expectations.Algorithm for choosing Stop Loss typesThere are many types of stop losses. Here's the algorithm for choosing what works for you: Step 1: Discretionary or system stop?The position of the stop loss can depend on whether you are a discretionary trader or a system trader. In discretionary trading, it is up to the trader to decide which trades to make each time. The trader places a stop order at a price at which he does not expect the market to trade according to his forecast. In doing so, he can take into account various factors that may vary from trade to trade.In system trading, trading decisions are made by the trading system. A trader either opens positions manually following the trading system signals, or the trading process is automatic. Here Stop Loss orders are placed according to the trading system's risk/profit and win/loss ratios.Step 2: Determine the size of stop loss.Stop LossThe size of this stop loss depends on the trader's account size. The most common is 1% of the account per trade. For example, if your capital is $1,000, you can afford to lose $10 on, say, a EUR/USD trade. That's 100 pips per 0.01 lot (1 micro lot). The upper limit of such a stop is considered to be 5%. As you can see, this approach is not a logical answer to what is actually happening on the price chart.Stop on the chartThe size of this stop depends on the technical analysis of the price action carried out by the trader. This is usually where a support level is determined and a stop loss is placed below it for a long position. Technically oriented traders like to combine these exit points with stop rules for charting stop orders. Such stops are often set at the highs/minimums of the fluctuations.Volatility StopThe size of this stop depends on the amount of volatility in the market. If the volatility is high and the price fluctuates widely, a trader will need a larger stop to avoid the stop. In the case of lower volatility, a trader puts a smaller stop. Volatility can be measured using indicators such as Bollinger Bands.Time StopsTime stops are based on a predetermined trade time. Imagine you are a day trader, trading only during a certain session and closing your positions before it ends. You can set a time limit, after which your position will be closed. You can do this with Expert Advisors (EA) or with trading robots.Margin StopsThere is also one aggressive approach to forex trading that we do not recommend. Some traders take advantage of the fact that forex dealers can liquidate their clients' positions almost as soon as they activate the margin call. A trader may divide his capital into several equal portions and deposit only one portion into his account. He then chooses the size of the position and the potential margin call acts as a stop loss. Be forewarned that these trades are only appropriate with small amounts of money. Please note that this type of trading is intended only for a maximum of one open position at a time.Read more: Volatility: types, how to track and how to use Step 3: Static or trailing stop?The static stop retains its place once set. The trailing stop adjusts as the trade moves in the trader's favour to further reduce the risk of an error in the trade.For example, a trader has opened a long position in the EUR/USD at $1.3100, with a stop loss of 50 pips at $1.3050, and a take profit of 150 pips at $1.3200. No changes will be made to your order until a profit on your open position exceeds 50 pips. If the Euro rises 50 pips to $1.3150, a trader may adjust his stop order by 50 pips to $1.3100. When you move your stop loss to the entry level (as in this case), it becomes a break-even stop order: if price reverses and the trader's stop order triggers, he will not get any money, but he will also lose nothing. Every time the price moves 50 pips from the current stop loss in favor of the trader, the server sends an order to change the current stop loss level to within 50 pips of the current price. In other words, Trailing Stop automatically moves your Stop Loss order following the price.Trailing Stops are mainly used by traders who enjoy trading trends but do not have the ability to follow the price movement all the time.Trailing Stops in MT4. To set an automatic trailing stop in MT4, right-click the order in your terminal window, select "Trailing Stop" and select the desired trailing stop size. Please note that the minimum level for the automatic trailing stop is 15 pips. It is important that the trailing stop loss is set on the client's trading platform and not on the server. If the trader closes the terminal or loses the internet connection, the trailing stop will be deactivated, but the stop loss set by the trailing stop will remain active.To deactivate the trailing stop, select "None" in the "Trailing Stop" sub-menu. If you want to disable trailing stops for all open positions and pending orders, select "Clear All" from the same menu.Step 4: Waiting for trading resultsOnce the Stop Loss is set, do not increase it. Only move your stops in the direction of the trade (rolling stops). You have already made your decision. If the market went against you and your stop was hit, analyse your trade and see what you did wrong. Don't get too upset about the failure. What you need is to succeed in the next trade, so move on to the next ...