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Is it possible to flip an account in a short period of time?

Yes, It is theoretically possible.

Is it likely?

Not really.
Unfortunately, flipping a small amount of money in a short period is risky and usually won't go your way. While still possible, this method of trading is more like gambling than trading.

Let's pretend you have a $1,000 account:

Let's pretend you have $1,000 in your account that you would like to turn into $2000 in a matter of a year. A yearly return of 100% is an extremely hard number to reach for any trader. In order to increase your account by 100% in a year you would need to risk a substantial amount of your capital. This is where things get tricky. 

In most cases, one series of losses or one major loss can result in you blowing your $1000 account which is why we never recommend high risk trading like this. Of course, you may get lucky with some trades but it only takes one trade that doesn't go your way to completely erase your account.  

So let's go back and say your goal is a return of 20% per year. This is a much more realistic goal and truthfully is a really great return in a year. If you were able to make this return on your $1000 account after a year your account will have reached $1200. 

The Truth about Growing a Small Account

Unfortunately, it takes money to make money. This is especially true in forex. Making 20% on a $1,000 account is a lot different than making 20% on a $100,000 account. However, there are ways to grow your wealth in a safe way. 

Most people don't like to hear the truth about growing a small account. The truth is growing a small account will take time. The only way to safely grow your money is by risking small amounts and compounding your money over time. 

Speaking realistically, making 20% on a $1,000 account a year is not going to make a huge impact on your financial situation but that doesn't mean it won't in the future. Let's say in a few years you've managed to save and invest your money and now you have $10,000 in your account. In that time, you also learned the skills to trade and can now manage that money effectively. Using your learned skills and the money you've saved you can generate steady returns over time.

Psst! Don't know where to get started? Check out our free education page.

Forex gurus don't want you to know this:

We get a lot of backlash when we say that flipping an account in a short period of time is very unlikely. People like to argue that account flipping is easy because they know or follow someone who does it. Are they able to show you a third party track record to prove this? Chances are they will dance around this question but won't actually be able to prove anything. 

The secret that most "gurus" won't tell you about forex trading is most retail traders don't make any money in forex trading.  This is not to discourage you to trade. However, it is important to be realistic and understand that forex is not the secret to get rich quick. Being successful in trading will take patience and practice. Start on a demo account, save your money and only start trading with real money once you have found a strategy that works for you.

Key Takeaways

Learn how to join a small account the right way

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Inflation Concerns in the Market, GU Drops, Gold on Support
5/12/2021

GBP/USD Analysis 
GU sank after good news on both currencies reported today. Price could be experiencing a retracement on the 4H chart and setting up to hit support around 1.4000s.
Gold Analysis 
Gold still struggles to break above the 200 DMA but seems to have found support in the $1820s. If price can sustain itself above this mark on the 4H chart, it would be a bullish sign that price will continue to retest the moving average and not come back down to additional support around the $1800 area.
SPX500 Analysis 
SPX dips hard under support on the 4H chart as products are becoming more and more expensive due to inflation. This news has concerned most investors who are lessoning their stake in stocks. A close under this support zone could mean some more bearish movements will likely happen along with a dip to $3987.

Yields Climb, USD/CAD Falls, SPX in the Red
3/12/2021

USD/CAD Analysis
UC on the daily chart can't break above the falling trend line and retests lows in the 1.24000s. This is the lowest price has been since 2018 which shows how powerful this down trend has been. Employment data came out today for CAD which was better than expected, and most likely the reason why the pair fell again today. 
BTC/USD Analysis
Looking at bitcoin from a technical standpoint on the daily chart, price is now back up to all-time highs for its second test on the resistance. Traders are most likely looking for a breakout to the upside which would probably keep price running up into the 60ks. If not, the crypto has support at 52658 and the 42-43Ks zone.
SPX500 Analysis
SPX500 on the daily chart takes a breather near the highs after a few days of green fueled by the senate passing of the $1.9 trillion stimulus bill. Bond yields are rising again which could be the cause of today to be in the red, but it's the tech stocks that are dragging the market down for the most part. NASDAQ is sliding and the Dow made a new all time high today, so keeping an eye on treasury yields will be important going forward for sector-specific opportunities (tech, blue chip, etc.)

I wanted to talk about rushing the trading journey because this was a significant challenge I had very early on in my journey, and it is one I see the majority of traders make often unknowingly. That is the danger of rushing, you have no idea you are even doing it.

Mid-2018 I made the decision that I wanted to leave my corporate graduate job and seriously pursue a career in trading. I was so tired of seeing YouTube advertise 2 day trading workshops that would magically turn me into a trader... you can just smell the bullshit on these guys. If you have even a smidge of common sense, you know that if you want to become successful in any industry it is going to take time. And I knew I would have to invest in my education (FYI I was super sceptical about this, and even though the trading platform I joined was one that had a coach I saw as genuine, I still only signed up to a month initially in case it was a scam.)

Anyway, once I had joined a reputable trading educator platform and began to work through their content, I still found myself rushing through learning how to read a price chart and backtesting, all because I was driven by a desire of wanting to live trade. Every day all I focused on was: WHEN AM I GOING TO GET TO LIVE TRADING? I just thought that I could figure out how to trade once I was on a live trading account.

And I genuinely thought my attitude was one of ambition and being driven rather than just rushing because I was impatient with the process.

Senior traders in the community I was in were telling me, “SLOW DOWN NAOMI. YOU ARE RUSHING. THIS WILL BITE YOU IN THE ASS LATER ON.”

I did not listen to them. And to be honest, I thought what the hell do they know? They aren’t sat here with me. Just because they took ages it doesn’t mean I will.

Oh how I was wrong! During an accountability session with my coach, he asked me what I wanted to achieve next year (2019). I could not answer the question. This was a major wakeup call for me. It was embarrassing. But feeling that embarrassment is what woke me up.

I knew I was going to have to start my learning from the beginning (after spending 3 months rushing). Below is what I did to rectify the situation and to ensure (to the best of my ability) that I would not rush through it again.

I spent half a day sat in my room thinking, ‘forget trading. what is your end goal? what do you even want to use trading for?’ Once I got clear on that I began reverse engineering my end goal back in stages to present day. I had my road map of every step I needed to follow.

This was a game changer for me because I finally had short term milestones to focus on. This meant I was no longer focusing solely on live trading, because there were several milestones that came prior to this.

They were:

1. Build a solid foundation: learn how to read a price chart, understand the different concepts of reading price individually.

2. Put it all together: put the different pieces of reading a price chart together so you can see the story that it is telling you.

3. Explore different strategies: review the strategies available.
4. Select a strategy: select a strategy depending on your lifestyle and time commitments.

5. Develop a strategy: get clear and write the rules out for your strategy, and purchase or create a backtesting spreadsheet.

6. Backtest that strategy: go through historic data and ensure your edge is profitable.

7. Execute that strategy: demo trade and then live trade!

I then broke down this broad plan into monthly and daily tasks. I also figured out ways to stop me from rushing. If I could devise some objective way to measure my progress then the chances of me unconsciously rushing again would be greatly reduced. What really forced me to follow a method that would actually have a high probability of working was:

Having clear and realistic deadlines that were realistic according to MY PERSONAL LIFESTYLE (we are all different, whilst I may have 10 hours a day to commit to my journey, someone else may have 1 hour. It is just reality...hence our target deadlines will be different.)

Clear methodical ways to test myself (I created objective ways to test myself so that I could see whether or not I had progresses rather than my subjective ‘wanting to live trade’ self was not the one making all the decisions.)

An overview of the trading journey. This was complete belief transference because I knew (and still know) that by following it I will reach my goals. I knew if I did not follow it then I could kiss bye bye to my big dreams of what I want to use trading for.

Did all these things completely abolish my results driven mindset?

NO.

But it was definitely the start of at least being on the right track.

The irony behind everything mentioned is that focusing on the process is actually the quickest way to get the result. Focusing on the result is the slowest way to achieve it.

Naomi Gorta-Slight
Instagram and Twitter: @naomigslight

Podcast: The Trading Journey Podcast

Politics preventing new financial stimulus

The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most significant global threat being the largest economy in the world. The trend of the virus in Europe has begun to worsen. With the majority of countries experiencing an increase in the past weeks.

The economic impact of global shutdowns, although severe, was cushioned by massive government aid and hawkish monetary responses everywhere. The U.S., after a slow start, introduced the most aggressive fiscal response in the form of its $3 trillion CARES Act. This funnelled cash to businesses and workers impacted by the pandemic and got forced into lockdown. 

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It had a significant impact on consumers, in particular despite a 10% reduction in salaries of employees in April. Due to substantial job losses, individual incomes in the U.S. A grew by approximately 10% due to a doubling of government funding. This mainly came through further unemployment assistance that entitled people to an additional $600 a week in aid. Despite this surge in government support, the household savings ratio increased to over 30% in contrast to an average savings rate of just 7%. Only to fall falling to 19% in June. However, there are critical factors here that contribute to the falling of savings rate: Those in the higher-income brackets, who would be less likely to have been affected, have seen savings spike. Those who were more likely to have needed the additional unemployment aid had a higher inclination to consume their stimulus cheque on necessities. Consumer spending is vital to any economy, especially in the U.S.A., which accounts for the vast majority of U.S. A GDP, is therefore vulnerable to the suspension of this stimulus cheque. 

These payments have been stopped at the end of July, and although President Trump has authorised a temporary (reduced) cost, there is no certainty about the policy beyond the end of this month. This is due to the ongoing conflicts between Republicans and Democrats on the next stimulus package. Democrats initially intended a package worth $3 trillion, with Republicans at $1 trillion. It appears that significant steps forward have been made towards a new stimulus package, but notable differences among them still remain. 

Given the fast-approaching nature of the election, it is unlikely that legislators on either side want to be criticised for another spending slip and citizen unease. That is why I still think a deal will be completed. Given the ongoing excitement within equity markets, it is likely that the market is also anticipating a deal to be done. 

Draghi returns  with Advice for policy maker

Former E.C.B. president Mario Draghi sent the current policymakers some critical advice about how best to control this financial crisis. His advice is really deserving of notice.

The speech is jumbled with historical quotations, such as to the wars, the global financial crisis of 2008 and the euro sovereign crisis of 2010, but we take away a few crucial bits of advice that are relevant to how policymakers may deal with today's obstacle. 

  1. This crisis is something modern policymakers have not yet seen so needs flexible thinking and innovative solution. The urgency and severity of the economic downturn caused by the pandemic that sticking rigidly to conventional views of monetary and fiscal policy risks worsening and lengthening the downturn the world is in. Policymakers in this crisis have shown to be realistic in introducing economic and fiscal assistance which we have never seen before. These actions have cushioned the fall for employees and corporations. For this efficient response to the global recession, they earned our respects. In European circumstances, it was feared that monetary rules would hurt governments from making these kinds of decisions. However, the European Commission has shown a sensible approach in waiving the rules for 2020 and possibly, for 2021. With blended resources also expected to be used for the first time, the union shown in the alliance of nations is a welcome and surprising characteristic of this mess.  
  2. There is what we can call "good" debt and "bad" debt. The significant increase in government debt levels due to crisis-related expenditure is sustainable, but only IF the funds are set towards productive uses. The actions of the E.C.B. have facilitated this. But it is not a cure. In the first instance, Draghi advises legislatures to protect the vulnerable to ensure social union. We have seen social division rise during this time, also causing major unrest. However, resources must be put to productive use and not wasted. In consequence of World War II, this took the form of a reconstruction of physical infrastructure throughout Europe. This time around, Mario Draghi advises that the investment should take the form of large-scale investment in human capital. Education is seen as a crucial part of the growth in productivity and economic growth. If economies are to prosper and the debt is to be paid back in the future, governments must have a revived focus on growing the productive potential of their economies. 

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Our team has unfortunately received many reports of scammers using our content and pretending to be us. While we will continue to report these accounts to the authorities as we receive reports, we may not always catch them in time. Below our a list of things to look out for before making a purchase to any platform.

We do not direct message our customers!

We DO NOT direct message our customers on social media! While we will respond to messages we receive on our accounts, we DO NOT message followers first.  If you receive a message from an account that you have not previously messaged, this may be a sign of a scammer. (See example of a message from a scammer below)

If you would like to get in contact with a member on our team and ensure that you are speaking with a legitimate member of our team, submit a question through our website. We have linked legitimate accounts to reach out to on our website. Contact our Support Team Here

We will not ask you to send us money

A1 Trading does sell an online VIP community, however, we DO NOT ask you to send us money directly via direct message on social media platforms. Any payments for our VIP community are made on our website (a1trading.com).

Scammers also tend to be more pushy for a sale and unprofessional. A scammer may ask you multiple times to send them money or say they cannot help you until you send them money. We are not this desperate and quite honestly, we do not have the time to beg for a sale. If something feels off, go with your gut.

It's too good to be true

This goes for pretty much everything in life, If it's too good to be true, IT IS. Unfortunately, nothing in life is going to make you large amounts of money instantly. If it did, everyone else would already be doing it! Any successful person will tell you it took hard work and dedication to get where they are today. They won't tell you someone direct messaged them on social media and sold them a membership that made them thousands instantly. Use your gut! If someone is promising large amounts of money if you pay them, there is something wrong.

Telegram Scammers

There are multiple telegram channels using our images that are particularly hard to get removed . If you see any messages that look similar to the one below this is a huge red flag. We DO NOT offer investment plans or account management. We will NEVER ask you to send us money with a guarantee that we will make huge returns. If anyone guarantees huge profits if you give them money avoid them. Although it sounds nice, no one can guarantee anything in the markets no matter how knowledgable they are.

Check their profile

There are a few things that you can look out for in a profile that is a red flag and is most likely a fake account. 

First, check the date of their posts. Scammers, unfortunately, are creating thousands of these accounts. If the posts were all created on the same day, this is a red flag! Scammers often post lots of posts to fill up their profile to make them seem more legitimate. 

Second, read the captions. Because these scammers are busy direct messaging people and creating lots of accounts, they usually do not put much time into their profile. Usually, their posts will have no captions, very short captions or captions with some emojis. Real accounts are more genuine and captions are more personal and thought out. 

Third, look at their stories. Real accounts usually post live videos on their stories. Scammers post screenshots of other stories or videos that do not show them or their voice. When deciding if an account is a real, look in their stories for videos of them. 

Lastly, weird fonts seem to be a signature for scammers. If you see a comment or caption that has a weird font, be skeptical.

Below are screenshots of a fake account with examples of the red flags: 

Before you send anyone money, ask yourself this...

Unfortunately, there are scammers everywhere. They are scamming people in every business, not just ours. Here is a checklist of things to ask yourself before sending anyone money.

1. Is it too good to be true? Are they promising me way more than I am paying?

2. Are they being too pushy for a sale or unprofessional?

3. Is their profile legitimate? Do they share real videos and genuine posts?

4. Are they sharing a legitimate website to make a payment or am I sending money to their personal money transfer account?

5. Does something seem off?

If you feel that something seems off and want to ensure your money is going to a legitimate person, reach out to our support team on our website.Contact our Support Team Here

All accounts associated with A1 Trading

Below are accounts that are associated with A1 Trading. Any other account is not associated with us and is a fake account:

Telegram
A1 Trading Forex Analysis

Instagram
@Tradernickfx
@a1tradingteam

@Traderfails

Twitter
@tradernickfx
@a1tradingteam

@traderfails

Facebook
@tradernickfx
@a1tradingteam

Youtube
TraderNick

A1 Trading Company

Setting goals for yourself when it comes to your performance in the financial markets might not be as straightforward and simple as you may imagine. 

It's essential to set a goal whenever you're working towards something in life, otherwise how will you ever know if you've achieved it? Goals can be motivating and are often really helpful in keeping you on the right track to achieving success.

However, it's just as important to spend time ensuring the goals are meaningful rather than purely inspirational and spur of the moment thoughts. Things that are actually going to help you reach a desired outcome and monitor your progress towards achieving it.

For example, when you set goals for your trading/investing progress, have you ever relied on statements along the lines of "I want to become more profitable" or "I want to open more great trades?".

I have to hold my hands up to that one, I've used goals like that in the past - most traders have! Unfortunately, these sort of blanket statements just fall into the category of 'easier said than done'.

We need to get more specific. We all set these blank goals in life. We set ourselves these vague goals often. Saying I want to be a profitable trader is just like saying I want to be able to run a marathon or I want to get all A’s in university. 

To be able to truly achieve your trading and personal goals you need to get specific and consistent with your goal setting.

Setting the right goals

Each of us has different strengths, weaknesses, and past experiences that affect our trading. Some may be highly risky traders as they have not yet encountered a reality check by Mr. Market others may be risk averse. We all have different areas we need to work on in our trading approach if we want to progress and succeed in the markets to become profitable traders.

By using a blank statements about our overall trading, we're not really going to be measuring progress in the areas that really matter to us individually.

Rather than setting goals and measuring our success based on improvements only in our P&L, we should be identifying points that are holding us back and find an appropriate measure that shows progress in that specific area. 

Many traders need to focus on their risk management (which I believe is the key to a long career in the markets) setting specific goals such as no more than 2% per trade or after 3 losing trades walking away from the screens. Stopping to trade when you feel that you will over trade or start revenge trading. If this is something you struggle with get some help! Invest in your education here with A1 Trading

Other traders may need to focus on not jumping the gun! Not entering into trades too fast, not checking macro-economic data or not looking at the economic calendar to see if there is high volatility news due, as we all know trading before major news releases is very risky.

By doing that, it will help us to focus our development plan in a way that's meaningful and encourage trading in a way that's more sustainable. Things that avoid us being tempted into risky approaches in an attempt to hit profit targets, without any improvements actually being made to our ability.

What's your ratio ?

To help put this in to practical terms, there's a quote from the book 'Good to Great' by Jim Collins that has always resonated with me. It's intended to apply to business, but I think it can also be adapted to apply to trading or any other area of your life you're hoping to improve.

"If you could pick one & only one ratio - profit per _____ - to systematically increase over time, what _____ would have the greatest and most sustainable impact on your economic engine?"

That's definitely something to really focus when making realistic goals regarding your trading. The word 'sustainable' is key here - we don't want to hit a profit target for the sake of it, but instead we want to see an improvement in our approach to the financial markets in a steady & sustainable way. Improvements that lead to dependable and repeatable returns in the market, not a one-hit wonder. 

If you want to check out one of the best one hit wonders where one Forex trade generated over $300Million profit click here a1trading.com300-million-one-forex-trade

Have a think about you ratios as a trader - what would your ratio be that you want to improve? What would show that your performance as a trader / Investor is moving in the correct direction?

If you're an A1 member, let's discuss and share our specific trading goals in the discord server 

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3 Steps to Trading Successfully 

1 Join A1 Trading and focus on learning the reality of trading the financial markets.

2 Start applying trading concepts learnt and focus on achieving consistency and discipled trading and learning the basics of risk management.

3 Take your consistency and get funded through . Trade on live account with consistent profit.

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Graphic Design: Alex Singeorzan 

singeorzan@alexdesigno.com

https://www.instagram.com/alex.singeorzan

How to get your own scanner: https://a1trading.com/xmr-indicator/

The past few weeks, our team has been working on developing another trading tool that we believe will be very helpful in finding extreme readings in the markets. The scanner is fundamentally volatility reader on multiple periods. The user has the choice to select 5 "lookback" periods, which basically read the volatility of each period set, and compute a total reading, -5 to 5. For example, if the 4 day lookback period, the 7 day lookback period, and the 14 day lookback period all show signs of overbought, the indicator may print a +3 reading on the indicator. A +5 would mean that all lookback periods are printing overbought.

The XMR Indicator 

The extreme mean reversion indicator (XMR) is a chart indicator used to identify potential reversals in a financial market. The XMR indicator specializes in scanning previous price action in order to signal potential overbought or oversold conditions in a market. The XMR is displayed as a bar chart, with a set range from -5 to +5. +5 is considered extremely overbought, and -5 being extremely oversold (dark gray)

The tool was built with the concept of mean reversion in mind, meaning that markets often return to historical means. With this in mind, this tool can be utilized to look for markets that have significantly moved away from their historical means and may be due for a reversal.

Range

The available range for the XMR Indicator is -5 to +5. A reading of -5 is considered extremely oversold, while a reading of +5 is considered extremely overbought. However, these readings are rare, and are not the only levels to consider.

Usability

The XMR indicator has a wide range of potential uses. It can be a great tool for both trading range bound markets, or finding pullback setups in a trending market condition. 

A reading on the XMR indicator of +1 to +5 is considered a market in which price is overbought, with +5 being more overbought than a reading of +1. Inversely, a reading of -1 to -5 is considered a market in which price is oversold, with -5 being more oversold than a reading of -1. 

With this information, the XMR indicator can help spot a potential reversal in a market. Combining this information with other signals, such as a price action patterns, a fundamental bias, or other technical pattern could be useful in finding profitable trading setups.

Example 1 - Trading Ranges:

The XMR indicator usually excels in a range bound market. In the image below, you will see that the XMR indicator does a decent job at finding tops and bottoms in the range. A trader using the tool could look for readings indicating that markets may be stretched, combine it with additional technical signals, and take trades accordingly.

Example 2 - Trading Trends:

When a market is trending strongly, looking for reversals may be less profitable. However, the XMR indicator may still be a great way to look for pullbacks to join the trend. In the image below, you’ll see a market that is trending strongly to the downside, but pulls back and prints an overbought reading on the XMR indicator. This could be a way to spot and time pullbacks that have a strong likelihood of failing in favor of the dominant trend.

How to Set Up

Once the scanner is downloaded on to your computer, go into your MetaTrader platform and click on 'File' then 'Open Data Folder'.

Then, your folder should pop up and click on 'MQL4' >>> 'Indicators'. There, you will see all the indicators that MT4 downloaded.

Once you're there, drag the 'XMR_Indicator' download into your 'Indicators' folder.

Go to 'Indicators' on MT4. Scroll down to the XMR Indicator (You might have to refresh MT4 or close out and reopen it).

Finally, drag the scanner on to any chart and it will start running.

How to Customize

The scanner already has lookback periods built in to the input, but you can choose whatever time periods as well as whatever design you want.

Once the indicator is running, you can right click on the indicator and click 'Indicator Properties'.

There, you can change the lookback periods or design of the chart.

How to Trade With It- General Idea

Here is an example of a short trade on EUR/USD using the XMR Indicator. Notice how the blue bars mark when price is overbought (OB), and red bars mark when price is oversold (OS). The white areas of the chart mark less extreme conditions of OB and OS which range from -2 to +2. Harsher conditions measure -3 to -4 or +3 to +4. Usually when price reaches to a -3 or +3, it has ended up being a good time to enter long or short positions. A -5 and +5 are very rare, but are the best indicators when looking for a reversal.

Here is a -4 reading on GBP/USD during the crash earlier this year. A buy at that mark would have made over 1,300 pips from lows. The screener obviously works best in extreme conditions, but can also signal for potential longs or shorts above +2 or below -2.

Conclusion

The purpose in making this scanner was to help traders see one of the strategies our team uses. We believe this to be very helpful and accurate for traders of all levels, who like to trade on mean reversions or reversals. Not every indicator is perfect, but they can be used as tools for insight on any kind of market you want to trade. This scanner is meant to help the user gauge their trade or alert them when prices enter a new territory of overbought or oversold. Overall, it's a great tool and hopefully our users will find it helpful as well.

Hope you all enjoy it! We will be using this tool in action for more of our trades so stay tuned!


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

My opinion on cryptocurrency used to be incredibly bearish if we're talking back in 2017-18 after Bitcoin hit over $19,000. An unregulated market and currency became a hub for black market deals as it could not be tracked. But now my opinion has changed a bit for a few reasons: 'safe-haven' pairs weaken like USD, FOMO, and hype apparently outpaces logic.

https://www.coingecko.com/en/coins/dogecoin

Prices came up to a yearly high yesterday to $0.0052, originally at $0.0020 before a massive amount of buyers stepped in. Shortly after, traders clearly took profit, and the price dipped down to $0.0030s. Right now, dogecoin is up over 416% from lows after several TikToks and memes become some of the greatest market analysts in the world. As ridiculous as it sounds, it's comically true.

Audience

Anyone can bash crypto as much as they want, but the price defied all crypto bears. I mean, who doesn't want to be a part of a trade that moves 400% percent in a few days? This largely has to do with audience. Who do you think is making trades like this? It's not billionaire investors or people running hedge funds; they are probably young, speculative investors who want to get rich quick. If you keep up with stocks, you might have seen Hertz stock soar over 100% as the company is facing bankruptcy. With millions of young investors who have incredibly easy access to markets now are seeing an ultra cheap price along with talks about it on social media, it becomes an indicator in itself on what to buy. It's similar to reading 13F filings on institutions to see what stocks they bought last quarter. People often read Warren Buffet's 13Fs to essentially copy what he does. I realized that you can do this in the same way but by using social media platforms like Instagram or TikTok, which leads me into my next point.

FOMO

Fear of missing out is a huge issue now as chasing prices can actually work in these weird market times. We watched as Nikola Motors announced that they will start manufacturing their new pick-up truck and begin sales in the near future. The stock price went from the $30s to peak at $95 before selling off back to the $50s. That means lots of money was poured in the stock even after the shareholders' vote passed the merger, and people were buying in the $60s, all the way up to the $90s. If that's not chasing price then I don't know what is. This is the kind of behavior happening with dogecoin.

Dollar Weakening

When the US took measures to stabilize their economy, trillions of dollars were created to provide funds for the unemployed and businesses as well as the Fed's $7 trillion balance sheet. Other countries did the same strategy of causing inflation to their currency, but none were on this level. Like metals, crypto is another place people might transfer their money into when fiat money begins to hurt.

Fundamentals

As far as fundamentals go, I have none on dogecoin. All I know is that it is a meme that became legit according to the investors that brought it up over 400%. Analysts are still ranking it a buy regardless of the move it just made.

https://www.coingecko.com/en/coins/dogecoin

What I think

Cryptocurrency as a whole is speculative, but so are investments like Tesla. If you can know where money is flowing, or at least speculate, your trades could end up becoming very profitable. I'm not telling anyone to buy dogecoin, but as crypto progresses, it will become more and more relevant over time. If I'm feeling frisky, I might put some play money into doge for the fun of it. After all, $20 in this crypto is around 6,000 units of dogecoin.

Featured Photo: https://cdn.vox-cdn.com/thumbor/G_w4Nyo9IJx5q5xa5E92vJCVyUQ=/21x0:539x345/1200x800/filters:focal(21x0:539x345)/cdn.vox-cdn.com/assets/3727699/Dogecoin_logo.png


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
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