Archive for the ‘Forex’ Category:
European Bank Stress Test: “It’s not that 8 failed…but that 82 passed!!”
By Elliott Wave International
The European Banking Authority announced Friday that 8 banks had failed their stress tests and 16 more had narrowly passed. But the results drew much criticism from analysts, who said that the stress test is not strict enough.
Indeed, this is something that European Financial Forecast readers have known since the first stress test last summer.
For a unique perspective on Europe’s sovereign debt crisis, we invite you to read a free 6-page report by Elliott Wave International’s European Financial Forecast editor Brian Whitmer, “Credit Crisis in Europe.” Brian has been anticipating and tracking the credit contagion across Greece, Ireland, Spain, Portugal and other EU nations for months.
Below is a quick excerpt from this report, written just after the first stress test. For details on how to read it in full now, look below.
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Credit Crisis in Europe: How the Stability of an Entire Region is Teetering on the Edge of a Major Collapse
By EWI’s European Financial Forecast editor Brian Whitmer (excerpt)
Panic Now and Avoid the Rush — July 30, 2010
The market’s collective sigh of relief is also reflected in authorities’ stress testing of 91 European banks. In case you missed last Friday’s results, their message is clear: relax. The Committee of European Banking Supervisors (CEBS) gave passing grades to nearly every bank on its list. The group, for example, passed both Irish banks and all four UK banks that it evaluated. The CEBS gave clean bills of health to all four Portuguese banks, all five Italian banks, and five out of six Greek banks that it analyzed. Even with share prices that sit 29%-66% beneath their 2009 countertrend highs, the CEBS says that the Bank of Ireland, Piraeus Bank, Banco Popolare, and Banco Santander are all in good shape. In fact, just seven of the 91 banks failed to make the grade. Five were in Spain, one in Greece, and one, Germany’s Hypo Real Estate, is entirely owned by the German government anyway. Everyone else — 84 institutions in all — are supposed to be strong enough to withstand another economic shock.
It’s not so much the stellar results that expose the optimism of a Primary degree rally, but rather the Banking Committee’s stress tests themselves. They are notable primarily because they failed to test for any real stress in the first place. As the chart shows, the Committee’s “adverse scenario” regarding economic performance assumed a mere 3% deviation from the European Commission’s GDP forecast. Another test looked at banks’ resilience to a sovereign risk shock, yet the analysis merely used conditions similar to those of May 2010. In other words, just like the UK budget office, the CEBS is utilizing a woefully diluted version of the economic deterioration that is about to grip the continent.
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 FREE REPORT: Discover what Europe’s debt crisis means for the future of the continent and your investments. Get your FREE 6-page report filled with unique analysis on Europe, the PIIGS and the sovereign debt crisis.EWI’s European Financial Forecast editor Brian Whitmer gives you the context for what’s happening in Europe and gets you up to speed on the reality of the situation. Download your free report now. |
This article was syndicated by Elliott Wave International and was originally published under the headline European Bank Stress Test: “It’s not that 8 failed…but that 82 passed!!”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
A Four-Chart Lesson in Spotting Trade Setups
By Elliott Wave International
You can find low-risk, high-probability trading opportunities by trading with the trend. The trick is to find the end of market corrections, so you can position yourself for the next move in the direction of the trend.
This excerpt from Jeffrey Kennedy’s free 47-page eBook How to Spot Trading Opportunities explains where to find bullish and bearish trade setups in your charts and how to zero-in on these opportunities. If this lesson interests you, the full 47-page eBook is free through July 6.
On the left-hand side of the illustration below, there are two bullish trade setups. As traders, we want to wait for the wave (2) correction to be complete so we can catch the move up in wave (3) – this is the trade. What we are trying to do in this bullish trade setup is anticipate the potential for profits on the buy-side as prices move up in wave (3). Another bullish trade setup is at the end of wave (4).
As traders, we are looking to buy the pullback and position ourselves within the direction of the larger up-trend. Remember, three-wave moves are corrections, which means that they are countertrend structures. On the other hand, five-wave moves define the larger trend. As traders, we want to determine what the trend is and trade in the direction of the trend. Our buying opportunity to rejoin the trend is whenever the trend pauses and forms a correction.
Now, let’s look at the right-hand side of the illustration where we see two bearish setups. When a five-wave move is complete, it is retraced in three waves as a correction. The end of the five-wave move presents the first trading opportunity that we can take advantage of the short side (or the sell side) as the wave (A) down begins.
Notice the second bearish trade setup gives us another shorting opportunity as wave (B) tops.
So, within the classic wave pattern of five waves up and three waves down, we have four high-probability trading opportunities in which we are either positioning ourselves in the direction of the trend or identifying termination points of a trend. I want to share with you some tricks I have picked up over the years about how to analyze corrective waves and their termination points. The single most important thing I’ve learned from analyzing corrections is that corrective or countertrend price action is usually contained by parallel lines.
As shown above, draw the parallel lines by beginning at the origin of wave A and going to the extreme of wave B. You draw a parallel of that line off the extreme of wave A. So basically you have a small, slightly angled downward price channel. This will show you the containment region for wave C. It also shows you an area toward the bottom of the lower trend line where you can expect a reversal in price.
Here is another example. Again, you draw the parallel lines off the origin of wave A, the extreme of wave A and the extreme of wave B.
Toward the upper end of the upper trend line, you will usually see a reversal in price.
This example shows how countertrend price action is contained by parallel lines in the British pound, 60-minute, all sessions. Why is it important to know parallel lines contain the corrective or countertrend price action? Number one, it will increase your confidence that you are indeed labeling a countertrend move properly. Number two, it identifies areas where you will likely see prices reverse. For example, we see this reversal up near the top.
 | This brief trading lesson is just a small example of the opportunities you can find once you learn to identify key market patterns. Learn more in your free 47-page eBook, How to Spot Trading Opportunities. This valuable eBook is regularly $79, but you can get it free through July 6. Download your free copy of How to Spot Trading Opportunities now. |
This article was syndicated by Elliott Wave International. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
Download 14 Critical Lessons Every Trader Should Know
Dear Trader,
You know how difficult it can be to successfully trade the markets. And although the volatility that we’re seeing lately offers great opportunities, it can also add to a trader’s frustration. That’s why our friends at Elliott Wave International are releasing one of their most popular trading eBooks, The Best of Trader’s Classroom, free through May 16.
Since 1999, EWI Senior Analyst and trading instructor Jeffrey Kennedy has produced dozens of Trader’s Classroom lessons exclusively for his subscribers. EWI reviewed over 100 lessons and selected these 14 that offer the most critical information that every trader should know.
Now you can download these valuable lessons in their 45-page Best of Trader’s Classroom eBook, free.
You’ll learn:
- Why Emotional Discipline Is Key to Success
- When to Place a Trade
- How to Set Protective Stops
- What It Takes to be a Consistently Successful Trader
- And 10 more!
Download Your Free The Best of Trader’s Classroom eBook Today
(Don’t hesitate! This offer expires May 16.)
Regards,
Alan
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private around the world.
This is how my Forex VPS solution will look like
Hello.
I know there are a few readers of this blog who happen to trade the Forex market like I do, so I figured I’d also make a post on this blog as well like I did on my dedicated forex blog in regards to the forex vps hosting solution that I’ve been working hard to put together.
I’m glad to report that I’ve been making good progress, and that I can now finally show you screenshots of how the metatrader (MT4 for now and MT5 later) forex trading platform will look like running on a VPS account. Please check them out over at my forex blog:
http://alansforexblog.com/2011/04/07/my-forex-vps-solution-will-look-like-this/
I’d also like to add that if you like to use forex robots (ie automated trading systems often called “expert advisors”) then you’re going to love the VPS platform. It will be simple to upload forex robots to your VPS account and the forex robots will be running on a very reliable Linux based platform in a super high end data center (Rackspace).
So I hope all you forex traders will checkout the above link and the various other related posts regarding this VPS solution.
Have a great weekend everyone!
Cheers,
Alan
Surefire Trading Challenge ending soon – Get it now before it’s too late!
Hi!
“You’re Probably Not Going To Make A Single Dollar
In The Forex Market Unless You Act NOW!”
A couple of days ago we opened the doors to the
most elite trading club in the world but sadly we’ve
just about hit capacity and it’s time to shut it all
down once more.
Needless to say, the response has been overwhelming
and we’re barely keeping up with all the testimonials
streaming in from traders up to their necks in pips!
I can literally count the number of available spaces
left on my fingers so by the time you read this it may
be all over. Just in case though, head on over here
real quick and see if there’s still a chance you can
get in to my club:
http://www.surefireforextradingchallenge.com/
We’re weighing anchor and heading out into open
water. Everything’s coming down as soon as the last
space is filled up. Remember the videos, interview
and sound bites from last week?
I really hope that you had a chance to check them
out because this stuff is reserved exclusively for
the eyes of the traders in our special group. It may
be a very long time before you get to see the kind of
info real traders are used to seeing again.
In fact, I’d have taken these down already if I knew
how to do it myself but, you still have a chance to see
if before the tech crew arrive on the scene so make
the most of it while you can. This is how the winners
in the market get things done:
http://www.surefireforextradingchallenge.com/
Check out some of the comments traders have posted
as well. The response to these great videos have been
way better than expected!
You see, most traders go through their entire
trading careers and far too many dollars
that may have been better spent without even knowing
that there is a place where they can go to get tried
& tested systems that actually work.
Look, I’m not gonna kid you, the ‘trading’ materials
you are currently using were most likely put together
by a marketer or a writer hired by a marketer. Neither
have any real ‘in the trenches’ experience but they do
put together a mean sales pitch 
Heck, I’ve been duped more than a few times myself.
That’s why I got to take it all down. In order to ensure
that the traders in my community get the edge over
everyone else out there we have got to be EXCLUSIVE!
http://www.surefireforextradingchallenge.com/
This is what the 5% that actually make a killing in
the Forex market use to get the job done:
* The winning systems from the most gruelling Forex
trading competition in history!
* The winning systems from the previous 8 trading
competitions.
* Access to a very special forum where you can talk
with the winners and hundreds of other likeminded
traders that want to see you succeed!
* You will be able to attend bi-weekly webinars
where you can watch the winners trade live and
maybe even make a trade or two with them.
* You can take part in live apprentice trading where
someone will hold your hand as you learn to trade.
What would that be worth to you?
* You will be able to see the results of their live
trading robots review page – PRICELESS!
* Access thousands of articles and videos of trading
techniques. More added each week from traders (not
authors) all over the world.
* Speak with professional traders who will help you
to become a successful trader.
* These proven winning systems will save you years
of learning and thousands of dollars in potential
losses.
* You will be able to trade more confidently knowing
you have a whole community behind you, ready to help
and give you guidance.
* If you have never traded before or you’re just about
ready to start, there’s no better place than a whole
community of traders to put you on the right track.
http://www.surefireforextradingchallenge.com/
If you’re reading this, then it’s clear that you have
been reading my emails for some time now so, I would
just like to extend a very personal invitation to you
to be a part of my inner circle while you still can.
I’m calling you out Today’s the day you decide whether
you’re going to run with the big dogs or just going to sit
on the porch. The clock’s ticking… your move
Good Trading
Mark McRae
P.S. Where else can you find trading systems that have
been put through such rigorous testing and still come
out on top? It’s never been done until now:
Last Chance To Learn To Trade Forex With Ease
There’s only a few days left to join the most elite
trading club in the world and if you’ve been looking
for a way to get into trading Forex without having
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comes close to joining this trading community:
* All the research has been done!
* The methods have been tested on Live and Demo
accounts and found to be profitable!
* See the live and demo statements from the winners.
* You get more than 35 pages of system rules and
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* Watch over 60 videos from chart setup to live
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By the time you go through half of these materials
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That’s just the materials from the latest trading
challenge, they have done 8 previous challenges and
each series comes with just as much if not more of
the same.
Just take a look at some of the other stuff that you
get included as a member of this elite trading community:
* The winning systems of the latest trading
competition.
* The winning systems from the previous 8 trading
competitions.
* Access to a very special forum where you can talk
with the winners.
* You will be able to attend by weekly webinars where
you can watch the winners trade live.
* You can take part in live apprentice trading where
someone will hold your hand as you learn to trade.
* You will be able to see the results of their live
trading robots review page (How cool is that? Never
get suckered in to buying a bogus robot again!).
* Access thousands of articles and videos of trading
techniques.
* Speak with professional traders who will help you to
become a successful trader.
* These proven winning systems will save you years of
learning and thousands of dollars in potential losses.
* If you’ve traded before then you will be up and
running with these systems in hours.
* There is a community of traders who have already
used the systems that can tell you how they get the
very best from the systems.
* You will be able to trade more confidently knowing
you have a whole community behind you, ready to help
and give you guidance.
* If you have never traded before or your just about
ready to start, there’s no better place than their
community of traders.
* They have professional traders and 2 of the most
sought after EA programmers on the planet standing
by to help with any questions you might have.
That’s more than you will find anywhere else on the
World Wide Web! They’re about to close the doors soon
and stop accepting new club members so don’t get left
out in the cold. Get it before it’s gone:
Check out the link above and remember that all this
great content will be taken down soon so this will be
the only time you get a chance to see it.
All the best
Alan
P.S. Testimonials are streaming in from traders all
over the world that are already making pips just a
few days after the release. You better get this one
before it’s gone for good. Find out more here:
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Information, charts or examples contained in this
blog post is for illustration and educational purposes
only. It should not be considered as advice or an
endorsement to purchase or sell any security or
financial instrument. We do not and cannot give
investment advice. On certain occasions we have a
material link to the product or service mentioned in
the email. This may be in the form of compensation or
remuneration.
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