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FountainFX Blog

FountainFX Brexit – How the Market Reacted – 24 June 2016

BREXIT made global history, but while many people live in fear of the result we show you how to profit from the news so you no longer have to be a victim of global economics. #GBPUSD #Brexit #easyfx.

From the Desk of Fountain FX – 19th October

19th October 2015

After 9 weeks of living out of a suit case I have finally returned to Cape Town and I can say it was not a moment too soon. While I visited many places that most people would dream of visiting or living in, I can honestly say South Africa is the best place for me and based on latest research it is one of the best places in the World for quality of life.

Knowing the news that most of us hear on a day to day basis, this will come as a big surprise as South Africa’s media is not renowned for marketing the best of SA. What you may not be aware of is that UK and USA have similar issues; only this news does not travel far and the lifestyle available in these “developed” countries is very much more limited than in SA. That said I travelled to the USD, GBP and EUR zones at the worst time in history for the value of the Rand. This meant that a one night stay in a hotel in Santa Barbara, California at $1000 was R14,000 and a beer at the Giants baseball game in San Francisco $17 or R240!

So the beauty of Forex trading is it enables you to earn in USD and spend it in Rands. How to experience the best of both worlds!

It was times like this that made me miss SA and realise the value that we have in this country. While I was away I did share regular trade setups with our trading group, but traveling and different time zones meant that running webinars was impractical. So here we are to pick up from where I left off and I thought I would share a great trade setup that happened this week on The EURUSD.

MACD Divergence

For those of you who have attended our webinars and foundation course, you should be familiar with the MACD indicator used to show trend direction and strength. Some schools of thought confuse this indicator and say it is an oscillator showing over-bought and over-sold conditions. I strictly use the MACD for strength of trend and keep it simple.

So what do I mean by MACD Divergence? Well MACD stands for Moving Average Convergence Divergence. When the MACD is convergent with price we are in a strong trend, either up or down, but when price is pushing up and the MACD is declining (or vice versa) we have a condition of divergence between price and the MACD indicator. It was this condition that confirmed a sell order on Thursday on the EURUSD.

Forex-chart-1

The above chart of the EURUSD 1hour shows clearly how price was pushing up into a previous level of resistance. While we should sell at resistance there is always the possibility that price breaks through and moves higher. So we have to look at all the other indications that we have and not just rely on one rule.

Using Multiple Timeframe Analysis we were able to look at the 4 hour and daily charts to confirm how significant resistance was. We were also able to look a lower timeframes such as the 15minute and 5minute to see if the MACD was confirming a decline in the trend.

So we have the following conditions that confirmed a SELL order.

  1. Resistance
  2. MACD Divergencev
  3. MACD Over Bought
  4. Multiple timeframes confirm sell
  5. Candlestick Patterns show sellers entering market.

So with a sell order at 1.1478 and a stop at 1.1500 let’s see what happened to the trade:

forex-chart-2

The Price did sell off and US news also added to the continuation of the sell off so that at the end of the day a 95pips profit was realised. To manage risk better and allow for you to stay with a trade longer, there are various trade entry and exit strategies that we follow and teach on our courses. By scaling out of this trade and managing the stop, your risk can be minimised and profit maximised.

I hope this helps you spot more trade setups using the MACD Divergence. For those of you who do want to gain more insight into trading and have the opportunity to be more confident with your trading, sign up to one of our courses. Let’s make trading simple.

Email steve@fountainfx.net for a special course fee.

FountainFX Members Only Offer – 9th August 2015

We share 6 trade setups that confirmed a buy entry on the EURUSD and saw it rise 140 pips.
For those who want to get more trade entries join our whatsapp group....email steve@fountainfx.co.za

Get R1000 bonus when opening Live Trading Account with CM Trading

Weekly Analysis 31st July 2015 – WORLD TOUR!!!

WORLD TOUR! Steve is off to the UK, USA and Italy for the next 2 months so this is the last blog for a while...He will be back in October.
Happy Trading. #easyfx

Weekly Analysis 24th July 2015 – SELL, SELL, SELL!!

SELL, SELL, SELL!!
AUD and NZD give great selling trades this week, while the EUR and GBP are indecisive. We share a trade setup on the NZDUSD that triggered and is near to $1700 profit take. The AUDUSD sold off even harder than the NZDUSD and our sell entry was missed. That is trading for you. Happy Trading. #easyfx

Weekly Analysis 20th July 2015

With the Greeks paying their Debt what is the next Currency to fall? Some say AUD but this morning saw Gold collapse. So what are the profit opportunities? We take a quick look at the AUD and NZD. #easyfx

Weekly Analysis 10th July 2015

How to Get Better at Trading.
With all the recent news on Greece and China the markets have been very up and down which makes it difficult to spot profitable trades. So we take a look at the EurUsd this past week and point out gap trades, support, resistance, trend and stop hunting to help you inprove your trading. Happy Trading. #easyfx

Weekly Analysis 5th July 2015

ITS ALL GREEK TO ME!
The exit polls and initial results are indicating Greece will leave the Euro. But how will this impact the Euro...In short we don't know, but what we do know is to expect price movement that can be exploited for profit. Happy Trading on Monday. #easyfx

Weekly Analysis 26th June 2015

Greeks, Aussies and Kiwis. What pundits are saying we look at the actual market conditions to show that technical analysis shows the truth through the fog of speculation. And we give you a nice trading tip. Lekker!

From the Desk of Fountain FX

On Thursday I was invited to attend a trading event in Cape Town with one of our members. The event organiser is well known to me so I had not considered attending, however the member has become a good friend and it offered an opportunity to talk with other people interested in the opportunities that trading can bring.

Keeping to the point the key benefits shared from the event were:

  1. You can trade anywhere at anytime
  2. Once you know what to do you have an income for life
  3. Focus on having a core strategy that works will bring consistency and profit
  4. Working with others who are doing what you want to do will accelerate your performancev
  5. Working with the right broker will give you several benefits:
    • Ability to follow other traders and profit from their trades
    • Automated trading systems
    • Credit Card funded by your trading account

To add to this I have found that while the oversell excites and grabs people’s interest it is being part of a support system that will help keep you engaged and enhance your performance. Being able to repeat, repeat, repeat drills the information and creates good habits. Also when it comes to brokers, knowing that someone else also has your back in working with your broker, means you feel less at sea when it comes to managing your money. To use a broker that is regulated gives you that added security knowing you can challenge them through the FSB if they don’t play ball.

Once you gain a solid foundation in your trading you will be able to gradually grow and expand your trading profits and broker benefits to your advantage, such as improved spreads.

To show just how easy it can be when you know what to look for this trade on the EURUSD was planned and setup on Monday 8th June and Tuesday 9th June shows the result. Overall price moved 250pips giving a $2500 profit from a standard lot trade size ($1000) with a $200 initial risk.

If you want to take your trading to the next level join our live traders group Click Here

410 pips for the day from 7 trades. Best day ever 🙂

— Kevin, Member of our live trading group

Happy Trading
Steve

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