Education

October 22, 2020

How to Calculate Drawdown in Forex

Drawdown is a common principle used to measure the volatility of an investment, it is heavily relied on by forex traders for monitoring risk.
October 21, 2020

Market Update: October 21

There is no change to DXY comments/opinion but I wanted to reproduce this chart because the index is nearing critical support at 92.17/30. The level is defined by long term trendline support (see longer term chart below), daily reversal support, and 2 legs down from the 9/25 high. This needs to hold if the range from late July is going to resolve to the upside.
October 21, 2020

Why Buy-Side Firms Need a Custom FX Price Feed

Tight spreads are important, so is deep liquidity, but there are considerably more characteristics to the perfect FX liquidity price feed.
October 20, 2020

Market Update: October 20

DXY continues to fail at channel resistance and ABOVE 94 is still needed to signal that trend has shifted from sideways to up. Until/unless that happens, be aware of another test of the long term support line near 92.30 (daily reversal support). 2 equal legs down from the 9/25 high would be 92.18. A longer term chart is shown below in order to remind that important support is under the market.
October 19, 2020

Market Update: October 19

AUDUSD is pressing the center line channel center line again. The risk is for accelerated weakness following a break below the center line. Immediate focus would be the mentioned lower parallel near .6900. A break there opens up the channel extension, which intersects the top side of the trendline from the 2018 high near .6600. Resistance should be .7080s now. 10/15 – AUDUSD broke down and stabilized near the center line as suspected. Proposed resistance now is the 25 line, which has been resistance and support over the last few weeks. That is about .7135. Near term bearish focus is the lower parallel (extended off of the 9/25 low) near .6900.
October 19, 2020

Calculating Sharpe Ratio in Forex

The Sharpe Ratio is one of the most popular investment evaluation techniques. Follow this guide to use Sharpe Ratio in forex.
October 16, 2020

Scandex Technical Weekly

DX futures made a 2 bar monthly volume reversal in September. This means that August was a high volume up month and at least a 12 month closing high and September was a high volume down month. This is the first bullish signal since December 2010. UUP ( Dollar ETF) also made a monthly volume reversal. Price history begins in 2007 but this is the 4th bullish reversal since then. The prior 3 nailed major turns. The 2 bearish reversals also nailed turns.
October 15, 2020

Market Update: October 15 – Antipode Breakdowns

Australia’s All Ordinaries Index (local currency terms) is pressing against the underside of former trendline support. In fact, the rally from 2009 is an ending diagonal (wedge in classical charting) in the 5th wave position. Longer term, the entire rally from 1982 counts in 5 waves. The implication is that a long, drawn out corrective process is underway. Bottom line, the index is into well-defined resistance and I’m looking for price to roll over.
October 15, 2020

Stocks as Money – Is a New Standard on the Horizon

Central banks have enabled aggressive stimulus deals. There is a concern about inflation. We explore using stocks as money as a possible solution.
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