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Daily Market Analysis By FXOpen

Started by FXOpen Trader, October 19, 2023, 05:24:59 PM

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FXOpen Trader

Inverted Hammer Pattern: Definition, Key Features, and Trading Applications


Candlestick patterns are essential tools for identifying potential shifts in market sentiment. The inverted hammer is one of the most popular bullish reversal patterns that often appears after a downtrend, indicating a possible trend reversal. Correctly identifying this formation and interpreting its context may support traders in market analysis.

In this article, we will explore the meaning of inverted hammer candlestick and its characteristics, outline the criteria for recognising it on a price chart, and discuss practical ways used by traders when integrating it into trading strategies.

What Is an Inverted Hammer?
An inverted hammer is a candlestick pattern that appears at the end of a downtrend, typically signalling a potential bullish reversal. It has a distinct shape, with a small body at the lower end of the candle and a long upper wick that is at least twice the size of the body. This structure suggests that although sellers initially dominated, buyers stepped in, pushing prices higher before closing near the opening level. While the inverted hammer alone does not confirm a reversal, it's often considered a sign of a possible trend change when followed by a bullish move on subsequent candles.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Four 1-Minute Scalping Strategies: Ideas and Applications


Scalping thrives on speed, accuracy, and disciplined execution. Strategies designed for the 1-minute timeframe are popular among traders who prefer to actively engage with the market. Effectiveness of ultra-short-term trading may demand a structured approach and swift decision-making. In this article, we examine four 1-minute scalping strategies and the tools and technical indicators that may support traders in navigating the fast-paced environment of intraday trading.

1-Minute Scalping: Basics
1-minute scalping is a fast-paced trading style focusing on taking advantage of small price movements within a minute timeframe. Traders using this approach rely on 1-minute charts to make quick, multiple trades throughout the trading session. The primary goal is to accumulate potential small gains that might add up to larger returns over time.

A scalp trading strategy requires a solid understanding of technical analysis and market conditions. Scalpers typically use indicators, price action patterns, and trend analysis to identify short-term market movements and potential entry and exit points. The rapid nature of 1-minute scalping demands precision and discipline, as even a slight delay can impact the trade outcome.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Nvidia and OpenAI Announce Partnership, NVDA Shares Surge


Yesterday it was revealed that leading chipmaker Nvidia and leading artificial intelligence research laboratory OpenAI have announced a strategic partnership, under which Nvidia will invest $100 billion in OpenAI.

A network of data centres will also be created to train and operate the most advanced artificial intelligence models:
→ the network will be based on Nvidia's next-generation platform, Vera Rubin;
→ the network's total capacity is unprecedented, reaching 10 gigawatts;
→ the first phase of the project is expected to launch in the second half of 2026.

Nvidia (NVDA) shares reacted sharply to the news. During Monday's trading, 22 September, the company's stock price jumped by roughly 4%, climbing at yesterday's high above $184.30 (marking a new all-time record, as shown on the chart). The chipmaker's market capitalisation closed in on $4.5 trillion, cementing its status as the most valuable company in the world.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Hang Seng Index Finds Support


As the chart shows, Hong Kong's Hang Seng Index (Hong Kong 50 on FXOpen) has fallen more than 3% from its 2025 high over the past week. In recent days, several factors may have driven bearish sentiment:

→ Domestic Chinese policy: Media reports indicate that on Monday the head of China's central bank held a press conference, but market participants may have been disappointed by the proposed economic stimulus measures.
→ US influence: This includes both trade deal negotiations and the Federal Reserve's recent decision to cut interest rates.
→ Other news: For example, the approach of Typhoon Ragas.

Additionally, reaching a peak near 27,000 points may have prompted long-position holders to take profits, creating a wave of selling.

Nevertheless, the chart shows several technical signs suggesting that the market is finding support, and the scope for further declines appears limited.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Analytical Brent and WTI Oil Price Forecast in 2025 and Beyond


Brent and WTI are two of the world's leading oil benchmarks, influencing energy costs and economic trends. From geopolitical volatility to shifting demand and the energy transition, their future prices will be shaped by powerful global forces. This article examines key drivers and analytical oil price predictions for 2025–2030 and beyond, providing context for traders.

Historical Context and Recent Trends
Brent and WTI are the world's most closely watched oil benchmarks, shaping energy costs and market sentiment. Their prices reflect a mix of supply-demand balances, geopolitical tensions, and market structure shifts. Understanding their history provides essential context for analysing where the market could head next.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Ascending Triangle in Trading: Theory and Practice


The ascending triangle is one of the most recognisable chart formations in technical analysis. Characterised by a flat upper boundary and a rising lower trendline, it reflects a gradual build-up of pressure in the market. This pattern is closely watched by traders across stocks, forex, commodities, and cryptocurrencies*, as it often precedes decisive price movement. In this article, we'll explore how to identify the ascending triangle and apply it in trading.

What Is an Ascending Triangle?
An ascending or rising triangle is a bullish chart pattern that usually signals a trend continuation. It is framed by two trendlines. The upper line connects highs placed at almost the same level, while the lower line is angled and connects higher lows.

The triangle's appearance is explained as follows: buyers try to push the price up, but they meet a strong resistance level, so the price rebounds. Still, buyers have strength, which is reflected in higher lows. Therefore, they continue pushing the price until it breaks above the resistance level. The period during which the price bounces back and forth between the two lines depends on the timeframe. On daily charts, the triangle can be in place for over a week.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Diamond Chart Pattern: Structure and Market Context


The diamond chart pattern is a rare yet important formation that often reflects the end of a prevailing trend. Characterised by an initial broadening phase followed by contraction, it reflects market indecision before momentum shifts decisively. The pattern serves as a reference point for analysing trend exhaustion and the structural changes that often accompany it.

In this article, we consider the structure, market psychology behind the pattern, and its practical application.

Overview of the Diamond Pattern
The diamond is a reversal chart pattern. It typically occurs after an extended trend and indicates a period of consolidation before a potential breakout in the opposite direction.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Amazon (AMZN) shares fall around 3% in a single day


As the chart shows, Amazon (AMZN) shares fell by roughly 3% yesterday after reports that the US Federal Trade Commission has launched a probe into the company over alleged "dark patterns".

According to the allegations, Amazon may have deliberately complicated the process of cancelling Prime subscriptions in order to retain customers. Should the charges be proven, this could result in significant fines and have a major impact on one of Amazon's key revenue streams.

Amazon's share price dipped below $220 yesterday for the first time since 12 August. Could the decline continue?



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Gold Bulls Dominate Market, WTI Crude Oil Rebounds


Gold price started a fresh surge above $3,750 and traded to a new all-time high. Crude oil is recovering and might rise toward the $64.30 resistance zone.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

  • Gold price rallied to a new all-time high and traded close to $3,800 against the US Dollar.
  • A short-term bullish flag pattern is forming with resistance at $3,770 on the hourly chart of gold at FXOpen.
  • WTI Crude oil is recovering losses and trading above $62.60.
  • There is a major bearish trend line in place with resistance near $63.65 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price formed support near $3,625. The price remained in a bullish zone and started a fresh increase above $3,660, as mentioned in the previous analysis.

The bulls pushed the price above $3,750 level and the 50-hour simple moving average. Finally, it traded to a new all-time high at $3,791. The price is now consolidating gains below $3,770 and the RSI is above 50.

Initial support on the downside is near the 23.6% Fib retracement level of the upward move from the $3,627 swing low to the $3,791 high at $3,750 and the 50-hour simple moving average.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Euro Returns to Yearly Highs: Continuation of the Rally or a Bull Trap?


European currencies are rebounding following a recent correction, with EUR/USD and EUR/JPY supported by last week's interest rate cut by the US Federal Reserve. The Fed's easing decision triggered a jump in the euro to a yearly high, although some of those gains were quickly pared back. The euro is now showing renewed upward momentum, but the further direction of the trend will depend on whether fresh data from the US and Europe confirm a continuation of the rally or trigger another pullback. In the coming sessions, markets will be watching the release of German business climate indices and US housing market data, which could set the tone for price movements.

EUR/USD

After a sharp rise to 1.1920, the EUR/USD pair retreated, losing around 200 points. Nevertheless, buyers of the single European currency found support just above 1.1700, and yesterday's daily candle closed near 1.1800. Technical analysis of EUR/USD points to a possible continuation of the rise towards recent highs, as a "bullish engulfing" pattern has formed on the daily timeframe. A daily close below 1.1720 could open the way for a deeper correction, with initial targets around 1.1650.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Australian Dollar Strengthens Following Inflation Data


According to Forex Factory, Australia's CPI index came in higher than expected: analysts had forecast an annual rate of 2.9%, while the actual figure was 3.0% (previous value: 2.8%).

This led to a strengthening of the Australian dollar, as the Reserve Bank of Australia (RBA) may adopt a more cautious stance in its monetary policy easing process (in August it cut the cash rate from 3.85% to 3.60%, following a peak of 4.35% in 2024).

On the other hand, traders are weighing the impact of yesterday's remarks from the Chair of the Federal Reserve, who adopted a cautious tone. According to Powell, the Fed must strike a balance between persistent inflation and a weakening labour market, describing the situation as "challenging".



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

EUR/USD Falls Ahead of PCE Index Release


A week ago, we wrote about significant changes in the dollar index – the DXY chart was signalling bullish trends. This week has confirmed those assumptions, which is also reflected in EUR/USD: this morning, the pair fell below 1.1660, marking a three-week low.

Trader sentiment is being influenced by:
→ News regarding President Trump's decision to impose tariffs on pharmaceuticals (and other goods) imported into the US.
→ Expectations for the release of the Core PCE (Personal Consumption Expenditures) Price Index, scheduled for 15:30 GMT+3 – the data may provide important guidance on the inflation outlook and potential US interest rate cuts.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Apple Shares (AAPL) Close to Reaching Record High


On 10 September, we noted that following the launch of new products — including the iPhone 17 — AAPL shares had fallen by approximately 1.5%, as analysts considered the model lacked the breakthrough appeal necessary to drive further growth.

However, two weeks on, media reports point to strong demand for the new product range, highlighting that:
→ orders for the new devices exceed those for last year's iPhone 16 series;
→ Apple has asked suppliers to increase production;
→ the base model, featuring the long‑awaited 120Hz display and the powerful A19 chip, is in especially high demand.

Positive reports of long queues at Apple Stores worldwide, along with extended delivery times — which Bank of America estimates at an average of 18 days compared to 10 days for last year's model — have only bolstered bullish sentiment. AAPL shares are rising this week, even as broader market indices are falling.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

What Are Order Blocks and Breaker Blocks in the Smart Money Concept?


Order blocks and breaker blocks are important price action structures. These formations reflect zones where large market participants—often referred to as smart money—execute significant buy or sell orders, influencing market direction.

Although many retail traders overlook these patterns, understanding them can support traders when analysing market direction and detecting potential reversals or trend continuations. This article provides a detailed breakdown of order blocks and breaker blocks, outlining their definitions, distinctions, and practical applications in market analysis.

What Are Order Blocks in Trading?

An order block, also known as a supply or demand zone, represents a significant area on the price chart where large market participants, such as banks or institutional traders, have placed substantial buy or sell orders. They're crucial in understanding the flow and direction of an asset, as they often precede notable movements in price. Particularly in the realm of forex, where the magnitude of transactions can be immense, identifying these zones can provide traders with a strategic edge.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen Trader

Analytical Forecasts for UK Interest Rates in 2025–2026


The UK's interest rate trajectory remains a critical point of focus for investors and traders as the economy navigates persistent inflation, shifting trade relationships, and a cautious monetary policy stance from the Bank of England. In 2025, and extending into 2026, expert forecasts vary significantly, reflecting uncertainty in both domestic and global markets. In this article, we will examine institutional projections, market expectations, and key macroeconomic drivers influencing potential rate adjustments.

UK Interest Rate Landscape
The UK's interest rate landscape has undergone significant transformations over the past few years. From the end of 2021 to the middle of 2023, the Bank of England (BoE) raised interest rates from the historic low of 0.1% to 5.25%—the highest in UK interest rates history since 2008. The decision to elevate interest rates from near-zero levels was primarily driven by the need to counteract rising inflation, which has emerged as a considerable threat to the UK's economic stability.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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