Video: Danger Ahead by Carl Icahn

Hi Traders,

Here is a video which I recommend everyone to watch it, very easy to understand and great explanation by a well known investor Carl Icahn. In this video he is saying that low interest rate is not good for the economy and only creates more bubbles which can be very dangerous. That is why the video is called 'Danger Ahead'.

Another live and free webinar - My trading strategy volume 2

Hi traders,

I have a great news! Finally I booked a day to do the next webinar about my trading strategy. Will be this Thursday (24/09) at 8 pm UK time.

This next webinar I will go into detail about what I spoke on the first webinar. I will explain in more detail differences and actions that we see during the trading day and I hope you guys understand even better how to use the tools that I use.

Here is some of the topics which I will discuss in the webinar:

RSI
Formations
Right time to trade
Elliott Waves (basic)
Levels
Fundamental (basic)
Correlation

I recommend you to watch the first webinar so you can get used to what I look and the tools so you do not get confused. Here is the first webinar which was made few months ago:

Here is the link for this Thursday webinar: http://www.youtube.com/watch?v=ojSeVbdpnk8

I hope to see you there and I hope you can learn something new.

By Thiago Duarte
Chief Strategist at Duarte Investment Group 
thiago@duarteinvestmentgroup.com 
@thiagotrader 

3 RSI Head and Shoulders that might come in play soon

Hi Traders,

Since yesterday when I started looking the RSI on the graphs very closely I found 3 head and shoulders on RSI which is very close to start bursting...

First one is on $XAUUSD (GOLD) Daily which I also spoke about in the 'quick live session' on Periscope yesterday:

(click on image to expand)

Today's close will be very important because if we close today very bearish and RSI line bellow trend line (TL), it will indicates that this formation will start taking shape and $GOLD can crush down very fast.. So wait for the Daily close today and let's see if we can break that 'neck line'.

Here is another one on $EURUSD Daily:

(click on image to expand)

$EURUSD had another H&S on RSI but a bullish one few days ago and that worked amazing. From the breakout of the neck line, he went 600 pips higher! Anyway, now we have another one but bearish. So the setup here is the same as on GOLD. Lets wait for the breakout of the neck line and a daily close bellow to have confirmation and stablish shorts.

And finally, here is the third one, $USDSEK Daily:

(click on image to expand)

This one is a tricky one and we need more confirmation than the $EURUSD and GOLD because we need to jump from current levels to form the right shoulder. If the $USD stays strong today, we have a great chance to jump and close higher which will build the right shoulder and than we can look for the breakout of the neckline.

Note: These 'head and shoulders (H&S)' are formed on RSI, not in price action. When this formation is created on RSI and plays out, 8/10 gives a very strong move in the market. For example: if that H&S on $EURUSD plays out, I can see $EURUSD reaching 1.0800 maybe in coming sessions.

Also, if you don't know what I am talking above.. feel free to watch my free webinar bellow, I explain very clearly how RSI works and what you can expect:

By Thiago Duarte
Chief Strategist at Duarte Investment Group 
thiago@duarteinvestmentgroup.com 
@thiagotrader 

Use correlation to your advantage

Hi Traders,

Today I want to talk about something that I personally use every trading day which helps me a lot which is correlation.

Before I continue, here is what correlation means:

In the financial world, correlation is a statistical measure of how two securities move in relation to each other. Currency correlation, then, tells us whether two currency pairs move in the same, opposite, or totally random direction, over some period of time. When trading currencies, it’s important to remember that since currencies are traded in pairs, that no single currency pair is ever totally isolated.

By having a correlation to look at and follow, it gives me more support and also a better time entry into my trades. Here are some correlation which I have been watching in the past few days:

EUR/USD + USD/CHF

 (click on image to expand)

GOLD + DXY

 (click on image to expand)

USD/USD + USOIL

(click on image to expand)

Inversely moving pairs are:

EUR/USD and USD/CHF
GBP/USD and USD/JPY
GBP/USD and USD/CHF
AUD/USD and USD/CAD
AUD/USD and USD/JPY

Examples of same direction moving currency pairs are:

EUR/USD and GBP/USD
EUR/USD and NZD/USD
USD/CHF and USD/JPY
AUD/USD and GBP/USD
AUD/USD and EUR/USD

I will give you an example of when I use correlation on my trading:

If I want to sell EUR/USD; first I will wait for him to touch a resistance level, when he does I will look a 'inversely correlation' to give me another support which in this case will be USD/CHF. So as I want to sell EUR/USD and he just touched a resistance level, I will see if USD/CHF is touching a support level at the same time. If he is, I will short EUR/USD knowing that USD/CHF is at support or if USD/CHF is not at support, I will wait a bit more until he does to finally sell EUR/USD.

This is a very simple technique which can help you a lot by opening trades with a better price point. I recommend you use it when you.

By Thiago Duarte
Chief Strategist at Duarte Investment Group 
thiago@duarteinvestmentgroup.com 
@thiagotrader