What Are the Inner Circle Trading Concepts?
Inner Circle Trading (ICT) offers a sophisticated lens through which traders can view and interpret market movements, providing traders with insights that go beyond conventional technical analysis. This article explores key ICT concepts, aiming to equip traders with a thorough understanding of how these insights can be applied to enhance their trading decisions.
Introduction to the Inner Circle Trading Methodology
Inner Circle Trading (ICT) methodology is a sophisticated approach to financial markets that zeroes in on the behaviours of large institutional traders. Unlike conventional trading methods, ICT is not merely about recognising patterns in price movements but involves understanding the intentions behind those movements. It is part of the broader Smart Money Concept (SMC), which analyses how major players influence the market.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
S&P 500 Index Stabilises Near Resistance Block
The ATR indicator on the S&P 500’s 4-hour chart (US SPX 500 mini on FXOpen) currently shows a reduction in price volatility.
This drop in volatility can likely be attributed to:
→ The market having fully absorbed the impact of Trump’s recent presidential win;
→ No unexpected news from yesterday’s CPI report, which matched analysts’ inflation expectations.
Looking ahead, Morgan Stanley analysts believe the bull market could face challenges from:
→ A rise in treasury bond yields, potentially diverting investor funds;
→ A strengthening dollar, which could reduce export revenues for large companies;
→ Indicators suggesting stock valuations are becoming even more stretched.
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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.
Commodity Currencies Reach New Lows
The rally in Bitcoin, meme coins, and the US dollar that followed Donald Trump’s presidential victory continues to gain momentum. The tariff cuts announced by the new president-elect have already contributed to declines in gold and commodity prices. Combined with the potential for heightened trade tensions with China, the current environment is pressuring currencies such as the AUD and CAD.
USD/CAD
Yesterday, USD/CAD buyers managed to test the psychological resistance level at 1.4000. The pair has long traded within the range of 1.3960–1.3800, but it has recently broken above this channel to reach a two-year high at 1.3960. Technical analysis points to the potential for further gains towards 1.4200–1.4300, provided the 1.4000–1.3960 levels hold as support. A downward correction, however, could bring the pair back to 1.3960–1.3900.
Key events likely to impact USD/CAD pricing today include:
At 16:30 (GMT +3:00): US Initial Jobless Claims.
At 16:30 (GMT +3:00): US Producer Price Index (PPI) for October.
At 19:00 (GMT +3:00): Weekly US crude oil inventory report.
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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.
Alibaba (BABA) Shares Drop Ahead of Earnings Report
Tomorrow, on 15 November, Alibaba (BABA) will release its third-quarter 2024 earnings report. Analysts forecast a drop in earnings per share to $2.11 from $2.26 in the previous quarter.
Ahead of the report, Alibaba’s share price has shown a downward trend, with a decline of over 20% from its October high. This drop is attributed not only to the waning of the strong bullish momentum seen in the Chinese stock market in September but also to increased competition from Temu and Pinduoduo. However, JP Morgan analyst Alex Yao predicts that “Alibaba will stabilise its market share in the coming years,” potentially supporting its position as China’s largest supplier.
A technical analysis of Alibaba’s (BABA) price chart reveals that:
→ this autumn, the stock price broke above a multi-year descending trend line (in red);
→ signs of support lines and pivot points suggest an emerging upward channel that could gain relevance in the long term following the breakout.
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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.
Mastering Multiple Timeframe Trading Strategies
In the fast-paced world of trading, the ability to analyse and interpret multiple timeframes can be one of the advantages of a trader. In this FXOpen article, we will delve into the concept of multiple timeframes in trading and consider two multiple timeframe trading strategies based on it.
Understanding Multiple Timeframes
Multiple timeframes refer to the simultaneous analysis of price data across charts with different periods. This approach allows traders to gain a comprehensive view of the market’s dynamics. The use of multiple timeframes is paramount in trading for several reasons.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Netflix (NFLX) Stock Hits Another All-Time High
The daily chart for Netflix (NFLX) shows that its price has risen by more than 10% since the start of November, setting a series of new all-time highs. Today, Netflix’s stock price is trading above $830.
The bullish momentum is attributed to several factors, including stronger-than-expected Q3 earnings:
→ Earnings per share (EPS): Actual = $5.40, Expectations = $5.11;
→ Revenue: Actual = $9.82 billion, Expectations = $9.11 billion;
→ Monthly active users: Reached 70 million.
Additionally, as reported by Benzinga, investor optimism has been bolstered by expectations that Donald Trump’s pro-business tax-cut policies could increase consumer spending, particularly in discretionary sectors like streaming video.
Technical Analysis of NFLX Stock
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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.
Brent Crude Oil Analysis: Bulls Hold the Line at Key Support
The XBR/USD chart reveals that Brent crude oil is trading near its lowest levels of the year.
Several factors are pressuring oil prices:
→ China’s uncertain demand outlook: As the world’s largest crude oil importer, any signs of weakening demand weigh heavily on the market.
→ A strengthening US dollar: Since Brent is priced in USD, a stronger dollar makes oil more expensive for international buyers, dampening demand.
→ Trump’s promises to halt wars, including in the Middle East: This reduces geopolitical risk, which traditionally acts as a bullish factor for oil prices.
Technical Analysis of XBR/USD
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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.
How Can You Use a Break and Retest Strategy in Trading?
Trading strategies help traders navigate the financial markets with greater confidence. One such approach is the break and retest strategy, which focuses on key support and resistance levels. This article explores the break and retest strategy in detail, providing insights and practical examples to help traders apply it in their trading activities.
Understanding the Break and Retest Strategy
The break and retest strategy is popular among traders who aim to capitalise on clear market movements. At its core, this strategy revolves around identifying key support and resistance levels on a price chart.
Here’s how it works: When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Market Analysis: GBP/USD Nosedives While USD/CAD Regains Strength
GBP/USD started a fresh decline below the 1.2750 zone. USD/CAD is rising and might aim for more gains above the 1.4100 resistance.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
- The British Pound started a major decline from the 1.3000 resistance zone.
- There is a key bearish trend line forming with resistance at 1.2650 on the hourly chart of GBP/USD at FXOpen.
- USD/CAD is showing positive signs above the 1.4000 support zone.
- There is a connecting bullish trend line forming with support at 1.4040 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above the 1.3000 resistance zone. The British Pound started a downside correction and traded below the 1.2850 support zone against the US Dollar.
The pair even traded below 1.2700 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2600 level. A low was formed at 1.2597 and the pair is now consolidating losses.
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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.
Walt Disney Company (DIS) Shares Surge Over 11%
On 14 November, Walt Disney Company (DIS) released an investor report that exceeded analysts’ expectations:
→ Earnings per share: Actual = $1.14; Expected = $1.10; Year-on-year growth = +39%.
→ Revenue: Actual = $22.57 billion; Expected = $22.42 billion.
The stock market responded positively, with DIS shares rising:
→ On 13 November, prior to the report’s release, the stock closed at $102.56.
→ By the end of the week, DIS closed at $114.94, a gain of more than 11% post-announcement.
The company also reported an increase in its streaming subscribers, reaching 200 million. Investors view this growth as a positive signal for Walt Disney Company, similar to the optimism shown towards Netflix (NFLX), which we discussed on 15 November.
Will DIS shares continue to rise?
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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.
What Are Lagging Indicators, and How Can You Use Them in Trading?
Lagging indicators are fundamental tools in technical analysis, helping traders confirm trends and assess market momentum using historical price data. This article explores what lagging indicators are, the types available, and how traders use them in their strategies. We’ll also discuss their limitations and common mistakes traders should avoid.
What Are Lagging Indicators?
Lagging technical indicators are tools that traders use to confirm the direction of a price trend after it has already begun. There are leading and lagging technical indicators. The difference between leading and lagging indicators is that the former signal future price movements while the latter relying on past data help traders spot well-established trends.
These indicators work by smoothing out price movements over time, which helps traders analyse whether a trend is likely to continue. For example, after a market has been rising steadily, a lagging indicator may show that the trend has solidified, giving traders more confidence in their analysis. However, because they react to past movements, lagging indicators can be slow to signal when a trend is reversing, which is why they’re often used alongside other tools.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Natural Gas Prices Reach Yearly Highs
According to the XNG/USD chart, natural gas prices have risen by approximately 13% since early November and this week hit a new 2024 high.
Factors Driving Bullish Sentiment (as reported by Reuters):
→ A sharp increase in global gas prices.
→ Forecasts of colder weather and higher heating demand in the United States.
Will Natural Gas Prices Continue to Rise?
From a fundamental perspective, the Energy Information Administration (EIA) forecast on 13 November predicts natural gas prices could peak in January 2025.
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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.
Meta Platforms (META) Shares Dip Below $550
On 7 October, we analysed the Meta Platforms (META) price chart and highlighted:
→ The formation of a long-term upward channel (marked in blue).
→ The key drivers supporting bullish sentiment.
We also emphasised the psychological significance of the $600 level.
Since then, the price has approached this level four times, only to be met with resistance each time (indicated by red arrows).
Yesterday, for the first time since mid-September, META’s price fell below $550, suggesting that the stock underperformed the broader market during October and November.
What’s Next?
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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.
What Are Leading Trading Indicators, and How Can You Use Them in Trading?
Leading indicators are essential tools for traders aiming to analyse market movements. This article explains what leading indicators are, how they work, and their practical application across different asset classes. Read on to discover how tools like RSI, Stochastic Oscillator, On-balance Volume, and Fibonacci retracements can enhance your trading strategy.
What Are Leading Technical Indicators?
Technical indicators are divided into leading and lagging. Leading indicators in trading are tools used to identify potential price movements before they occur. Lagging indicators confirm trends after they begin, helping traders validate price movements. The difference between leading and lagging indicators is that leading indicators aim to give traders an edge by signalling when a new trend or reversal might be on the horizon while lagging indicators confirm trends after they’ve developed.
Leading trading indicators work by analysing price data to identify patterns or extremes in buying and selling behaviour. For instance, popular leading indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator measure momentum in a market. These indicators help traders spot overbought or oversold conditions, where RSI tracks recent price movements relative to historical performance, while the Stochastic Oscillator compares a security’s closing price to its price range over a set period.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Shopify (SHOP) Shares Retreat After Sharp Surge
On 12 November, Shopify released its Q3 earnings report, which exceeded analysts’ expectations:
- Earnings per share: actual = $0.36, forecast = $0.27;
- Gross revenue: actual = $2.23 billion, forecast = $2.15 billion.
The company also provided strong earnings guidance for Q4. According to Zacks analysts, Q4 earnings per share could reach $0.39.
As a result, SHOP shares surged by more than 20% following the report’s release. But is it the right time to buy now?
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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.
Market Analysis: AUD/USD and NZD/USD Recover - More Gains Ahead?
AUD/USD is attempting a recovery wave from 0.6440. NZD/USD is also correcting losses and might recover if there is a clear move above the 0.5950 resistance.
Important Takeaways for AUD/USD and NZD/USD Analysis Today
- The Aussie Dollar found support near 0.6440 and is now recovering against the US Dollar.
- There was a break above a key bearish trend line with resistance at 0.6480 on the hourly chart of AUD/USD at FXOpen.
- NZD/USD is attempting a recovery wave above the 0.5880 resistance.
- There was a break above a major bearish trend line with resistance near 0.5860 on the hourly chart of NZD/USD at FXOpen.
AUD/USD Technical Analysis
On the hourly chart of AUD/USD at FXOpen, the pair dipped from the 0.6685 resistance zone. The Aussie Dollar declined below 0.6500, but the bulls were active near 0.6440 against the US Dollar.
A low was formed near 0.6439 and the pair is now correcting losses. There was a move above the 23.6% Fib retracement level of the downward wave from the 0.6685 swing high to the 0.6439 low. There was also a break above a key bearish trend line with resistance at 0.6480.
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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.
Morgan Stanley: Trump’s Tariff Plans Could Lower Stock Indices
As reported by CNBC, Morgan Stanley analysts have evaluated the potential impact of tariff plans proposed by Donald Trump during his presidential campaign on the U.S. economy and stock market.
Key initiatives from the president-elect include:
→ Introducing a general tariff of 10% to 20% on all imported goods.
→ Imposing additional tariffs of 60% to 100% on imports from China.
Morgan Stanley’s Chief Global Economist, Seth Carpenter, suggests these measures could:
→ Eliminate the possibility of interest rate cuts in 2025 and constrain economic growth.
→ Threaten a slowdown in U.S. economic growth by 2026.
→ Drive inflation higher.
→ Pressure industries such as automotive, consumer electronics, machinery, construction, and retail. Increased producer costs are likely to be passed on to consumers.
These scenarios imply a negative outlook for the U.S. stock market. Tariffs may reduce investment appeal and raise borrowing costs for companies, potentially dampening market performance.
How Might This Affect Indices Like the Nasdaq 100 (US Tech 100 Mini on FXOpen)?
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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.
European Currencies’ Decline Slows Near Key Levels
As anticipated, investor concerns over escalating trade tensions between the U.S. and Europe, following Donald Trump’s U.S. election victory, have driven the euro and pound toward critical support levels.
GBP/USD
Last week, GBP/USD sellers pushed the pair down to the significant 1.2600 level. After testing this support, the downward trend paused, transitioning to sideways movement within the 1.2700–1.2600 range.
Technical analysis suggests the possibility of an upward correction, with a bullish “engulfing” pattern visible on the daily timeframe. If the price breaks above 1.2700 in the next trading sessions, a move toward 1.2840–1.2800 could follow. Conversely, breaking the recent low near 1.2600 might open the path to 1.2500–1.2450.
Key events to watch:
- 10:00 (GMT+3): UK Consumer Price Index (CPI) for October.
- 16:30 (GMT+3): UK House Price Index.
- 19:00 (GMT+3): Speech by Bank of England MPC member Ramsden.
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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.
Tweezer Candlestick Patterns for Trend Trading
There are numerous patterns and indicators that can help traders determine the formation of a new trend. One valuable tool in a trader’s arsenal is the Tweezer candlestick pattern. In this FXOpen article, we will discuss the definition of Tweezers, elucidate the importance of these patterns in trading, and emphasise their role in potentially achieving precision in trend trading.
What Is a Tweezer?
Tweezers are candlestick patterns that signify potential reversals in market trends. These patterns occur when two consecutive candlesticks share similar highs or lows, forming a “tweezer” shape on the price chart. Tweezers can be either bullish or bearish, each conveying distinct market sentiment.
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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.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Nvidia (NVDA) Stock Drops Following Earnings Report
On 13 November, we analysed Nvidia’s (NVDA) price chart and noted:
→ The continuation of a long-term upward channel (highlighted in blue).
→ A consolidation below the psychological $150 level, forming a narrowing triangle along the Quater Line, which divides the lower half of the channel.
On 20 November, Nvidia released its Q3 earnings report, which exceeded analysts’ expectations:
→ Earnings per share (EPS): $0.81 (expected: $0.74).
→ Revenue: $35.08 billion (expected: $33.17 billion).
→ Revenue growth: +94% year-on-year, +17% quarter-on-quarter.
Key Insights (via Reuters):
→ Optimism centres on Nvidia’s new Blackwell processors.
→ Concerns arise over a reduced revenue forecast due to supply chain constraints in chip production.
Despite strong results, Nvidia’s stock price dipped slightly following the report. Pre-market data suggests today’s trading could start around $142.50.
What’s Next?
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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.
