Mirror lake

Fighting a continuous market bias

After using a trading journal for a while, I noticed something remarkable. For one specific reversal strategy I trade, around 75% of my trades were sell orders. Unknowingly, I seemed to have a bearish market bias.

 

 

Have you ever experienced something similar?

 

 

You might think that this sounds very similar to what people call a “permabear”, an investor who continuously acts in the expectation that stocks will fall. However, I don’t believe this is the same thing. In contrary to these investors, I don’t have a strong overall bullish or bearish feeling to any market. I will buy just as easily as I will sell. I do, however, have a harder time “seeing” certain bullish reveral setups.

 

I found this a bit unusual, so I looked into it. I found it easier to discover the bearish setups on my charts. I would often look over bullish setups that are exact mirror images of their bearish counterparts, but fail to either spot them or don’t find them convincing enough to trade. After I started monitoring this more closely in my weekly reviews and watchlists, I decided to do something about it.

 

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XAGUSD Forex

Weekly forex outlook: February 19

Hi traders, I’m back with a preview of what I’m looking at for the upcoming week. The past couple of weeks has been good for reversal traders! Plenty of reversals materialised, often with very classic rounding tops and bottoms and clean retests to well-defined levels. Additionally, the WhaM strategy has also produced a couple of nice setups, one of which I’ll highlight in our past week review.

 

Let’s have a look at the overall market last week. The US dollar pretty much ended where it started. It did so, but not without a big swing up and down! After better than expected PPI numbers and a speech from Fed chair Yellen, the dollar rallied strongly. However, it found a (double) top on the next day and sold off quite a bit, only to regain some of the losses on Friday.

 

Gold shows us the opposite picture, with the market initially in a risk-off mode, where gold took a dive. Those losses were quickly recovered though and gold closed the week for a small gain.

 

Finally, oil sends us mixed signals. This week showed us disappointing crude oil inventory numbers, but then again the oil producing nations seem to hold their end of the production cut quite well, so the price is bouncing around.

 

Macro outlook

 

 

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Closing trades for the weekend

Should you close trades before the weekend?

It’s Friday. TGIF! You already have a drink in your hand and ready for some weekend activities, but you still have one trade open. Should you close trades before the market shuts down for the weekend or not? Multiple traders will give you many different answers. It’s an interesting topic and when you want to know what to do, there are a few considerations to make. I decided to look into it.

 

Close trades or not?

 

Close trades over the weekend

 

Let’s look at two different scenarios. Scenario one shows a trade setup where the trade was kept open over the weekend. Scenario two shows a trade setup where the trade was closed before the weekend.

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NZDUSD forex

Weekly forex outlook: February 12

Another weekend, another weekly forex outlook! There wasn’t a weekly outlook last week since I suffered a bad cold, so I took a little step back. The past week, I was feeling better though and besides the weekly outlook, I would like to share some of the setups I’ve taken as well. It was a relatively quiet week with not a lot of high-impact economic news, but plenty of interesting setups nonetheless.

 

Let’s have a look at the overall market last week. The US dollar gained quite a bit and ended the week with just a small retracement. Gold initially climbed up a bit but the market found resistance, made a double top and sold off in the second part of the week, only to partially rally back up on Friday. Oil pretty much ended where it started, but not without a major swing. After an initial sell-off, better than expected OPEC numbers made oil rally again and it ended the week strong.

 

Forex macro overview

 

 

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Expert advisor trailing stops code

MT4 EA Course: Trailing Stops

This article is part of a series. Here are the other parts:

 

Welcome to the third part of our MetaTrader4 Expert Advisor course! If you haven’t done so, please have a look at first two instalments.

 

Forex Wall-E

In this part, I want to discuss stops. We’ve seen how to create an order with a simple pip-based stop in the previous article. What I want to look at this time, is how to implement dynamic, trailing stops. We’re still working on our Forex Wall-E expert advisor, so let’s continue where we left off!

 

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