In this podcast: how I trade on leverage chart technical analysis on Forex market and stock indices, I will speak about how I am trading before the limit term for Brexit which is on 31st October 2019. Therefore, I will talk about the open transaction on the sell-side (short selling), with CFD support on the US index: S&P500 afterwards, I will talk about the pending transaction on the Forex currency pair between Great British Pound and Australian Dollar, also on the sell side, with leverage. As you can see, on the US stock index: S&P500 – the price is situated on the Flat pattern wave, most likely, for the time being, I am presuming that is a Regular Flat meaning the price of the B wave in turquoise should not surpass the start level of the (A) wave in turquoise. I have set a target on the 2854.2 level with a stop-loss on the 3014.5 level. 3014.5 level is representing the origin level of the presumed wave 1 or A with blue, which if will be crossed, it will invalidate the structured drawn on the 5m time-frame. I’ve entered on the market level: on 3007.1 level and on the 3002, approximately, if the price will reach on that level, on the dotted orange trend line, I will move the stop-loss, decreasing it in value: on the level of 3011.4 from its initial value of 3014.5, therefore I will reduce the potential loss for this trade from the RON 15.8, how it is now, to RON 9.2 and if the price will go even lower, to the minimum level of the wave tagged “1 or A” with blue, then I will reduce the potential loss to zero. Moving the stop-loss, the transaction will have no risk and a potential target of 2854.2, meaning RON 327.27 You can see how important is the risk-reward in a transaction: I risk a quantity (stop-loss) and potentially I will receive 20 times that if it will going in that direction. End of part one
To be continued tomorrow – 26th October 2019 If you have enjoyed this chart analysis, give a LIKE, share and SUBSCRIBE to the channel and if this king of chart analysis is helping you better trade the markets, recommend this channel to your friends to! Until the next episode, good luck in trading!