The 2019 Equity Outlook: What are the experts saying?

As another year comes to an end we are not only left scratching our heads as to where the last twelve months have gone, but also what can we expect from the markets in 2019? Last year seemed to start with a lot of positivity on the back of a strong 2017, the Dow Jones continued to ride the Trump wave through January and would later go on to reach all-time highs despite a number of tough months.

Cable finished January at 1.419 and reached a high of 1.437 in April, a month that would go on to prove very difficult for the value of the sterling and set the tone of decline for the rest of the year. Holiday makers can only dream about what those price levels must have felt like given cables current value.

Look at the NASDAQ, we saw Apple become the first ever company to reach a valuation of $1 trillion and the index seemed to be on an unstoppable charge before a harsh reality check in October.

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CoinField the Canadian cryptocurrency exchange based on XRP

On November 1, 2018, the Canadian cryptocurrency exchange CoinField, which uses XRP as the base currency, announced that it had entered into operation with 20 currency pairs against the XRP.

CoinField, based in Vancouver and founded in December 2017, calls itself “the best cryptocurrency exchange platform in Canada with the largest portfolio of currencies available in that country.” First, the company stated that it was exploring the idea of using XRP as the base currency on September 22.

However, it was not until November 1 that CoinField tweeted that its trading platform had begun to operate, and that it was available in 61 countries.

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How to identify the end of a trend?

Changes in the trend

 

A fundamental aspect that very few traders dominates how to determine when a trend is nearing its end and about to change to start a new trend. The turning point in which the change in the trend´s direction occurs is known as trend reversal. In many times the traders often find themselves in situations where they do not know if a trend will continue or reverse, for example when the market is in a lateral trend (the price moves without a defined trend).

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Theresa May could lose the Brexit vote and the market expects Europe to move

May could lose brexit vote

Political instability in the UK is assured and will affect the British economy and the rest of the EU, experts say

The market assumes that Theresa May tomorrow will lose the vote on the plan for the departure of the United Kingdom from the European Union that the premier agreed with Brussels. May had agreed to expose a plan B in three days, if the Brexit vote fails tomorrow. Experts and analysts consulted trust that the European Commission can now offer a little hand to prevent uncertainty from going further. This issue, added to the bad macro economic data from China, has caused a fall in European markets.

If the pact does not receive the approval of the Parliament, the Prime Minister will have three days to modify it, something that the experts do not see probable either, and from then on it will be the Parliament that takes control of the Brexit. This can lead to several very different scenarios: that the departure of the UK from the EU is delayed for the parties to continue negotiating (in principle the planned disconnection date is March 29); that new elections be called if the Labor Party manages to take forward a motion of no confidence against the Executive of May or the convocation of a new Brexit referendum.

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How have the main currencies behaved during 2018?

The year 2018 has been marked by tensions and uncertainty. The commercial war between the United States and China has been carried to its maximum level, the rise of interest rates and QT (quantitative tapering) has continued in the US and in Europe the QE (quantitative easing) has been ended. Towards the end of the year the atmosphere is even more tense with the “gilets jaunes” (yellow vests) in France, the political escalation between the US and China and the fall of the world stock markets. On the other hand, the price of oil is practically at a minimum, although it seems to start to rise, which has helped to reduce the increase in global political-economic tensions.

On the one hand, the low price of oil contains inflation, which reduces the pressure towards the contraction of the monetary stimuli of the main world banks and on the other hand supposes an injection of disposable income for consumers.

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What are exotic currency pairs in the Forex market?

The Forex market is the largest OTC market in the world, according to some estimates it moves almost 5 trillion dollars a day. Specifically, in the last triennial survey of the BIS, you can observe the level of negotiation and distribution among the main currency pairs that are traded in that market. This tells us clearly why it is the largest market in the world. But the fact is that not all the instruments that are traded in this market are the same. Each pair has its own characteristics and advantages and disadvantages.

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Overlay of the European session and the U.S. session

Usually the currency markets have the highest trading activity when occur the overlap of the trading sessions of the two most important financial centers in the world: London and New York. In fact, generally the average range of price movement between 8 am and 12 pm EST time, is on average about 70 percent of the average total range of price movement during the European session and 80 percent of the average total range during the U.S. session. Undoubtedly, for all currency pairs this period is usually the most active and volatile, and for this reason is ideal for traders who want to get high profits in the market with fast price movements, ie traders with high tolerance risk.

By themselves, the above percentages indicate that traders who are interested in trading with highly volatile prices and wide price ranges must act precisely during the hours in which the markets of United States and Europe overlap, especially if they are unable to monitor the market all day.

Trading Systems Based on Moving Averages and MACD

This is a trading strategy that can provide gains of between 20-30 pips per trade so it can be quite profitable. This trading system is very simple to use and its signals are easy to follow. The main features of this strategy are the following:

This is a trading system that combine the use of two well known technical indicators: moving averages and MACD. Also, the trader can use the Momentum indicator to confirm the trend direction. Basically, this system attempts to profit from changes in the market trend. The MACD and the Momentum are necessary because the moving averages crosses are not too reliable signals.