Unbounded Land

  • What is NWOG?

    Ariana

    •

    NWOG stands for “New Week Opening Gap.” It is a concept introduced by Inner Circle Trader (ICT), also known as Michael J. Huddleston, in February 2023. The NWOG is identified by noting the opening price on Sunday and the closing price on the previous Friday. The gap between these two price points is then extended across the entire week of trading. The midpoint of this range is referred to as “consequent encroachment” and can act as a significant level of support and resistance throughout the week 

    This concept helps traders understand market phases, such as consolidation, where the price tends to gravitate back to the NWOG. In trending markets, prices typically move away from this level more aggressively and do not return to it frequently The NWOG is a useful tool for various markets, including Forex, stock index futures, and individual stocks.

    Some reference videos for this concept:

    https://www.youtube.com/watch?v=WKKnlIIkBTk

    https://www.youtube.com/watch?v=BM1mqQv-ypk

  • Best ICT Video ever showing him taking live trades

    Ariana

    •

    Check his live commentary and how his mind works compared to a retail trader. This is years of experience.

  • Who is ICT? The Mysterious Trader.

    Ariana

    •

    Who is ICT? The Mysterious Trader.

  • Live Trade case studies, NASDAQ on 9th May 2024-Trading AM Silver Bullet and 315 Macro.

    Ariana

    •

    Pre New York session:

    It gave me only one chance to enter and I missed it.

    315 Macro: It refers to the time period 3:15 PM to 3:45 PM macro, also called last hour macro. It seeks the liquidity which has not been traded yet.

    Check this lecture of ICT.

    It did work. But I closed in loss due to poor risk management and fear and also lack of experience of trading 315 macro. It was the first time I was trading 315 macro.

  • Live Trade Case Study- NASDAQ on 10th May 2024

    Ariana

    •

    First Trade was scalping using London silver bullet. Key: when using higher Lot get your target as soon as possible.

    I entered without confirmation.

    It took all liquidities in the way and actually came to say Hello to PM low.

    Did a lot of scalping and managed to close in green. TGIF set up also helped.

  • What are higher beta currencies in Forex?

    Ariana

    •

    In forex trading, currencies are often categorized based on their volatility and risk levels. High beta currencies, such as the Australian Dollar (AUD) and the New Zealand Dollar (NZD), are those that tend to exhibit higher volatility compared to other currencies.

    Here’s a breakdown of what this means for a forex trader:

    1. Beta: In finance, beta measures the volatility, or risk, of an asset compared to the overall market. A beta greater than 1 indicates higher volatility, while a beta less than 1 indicates lower volatility. So, when we say AUD and NZD are high beta currencies, it means they tend to move more significantly in response to market events compared to other currencies.
    2. Volatility: High beta currencies like AUD and NZD are often influenced by a variety of factors, including economic data releases, commodity prices (both Australia and New Zealand are major commodity exporters), interest rate decisions, and global risk sentiment. This higher volatility can present both opportunities and risks for traders.
    3. Risk Management: Trading high beta currencies requires careful risk management. While higher volatility can lead to larger potential profits, it also increases the risk of significant losses if trades move against you. Traders need to use appropriate position sizing, stop-loss orders, and risk management strategies to protect their capital.
    4. Market Sentiment: Since AUD and NZD are often considered riskier currencies, their value can be heavily influenced by changes in market sentiment. Positive news or improving economic conditions globally can lead to increased demand for these currencies, while negative news or worsening economic conditions can lead to selloffs.
    5. Correlation: High beta currencies may also exhibit strong correlations with other assets, such as commodities like gold and oil, or with risk sentiment in the broader financial markets. Understanding these correlations can help traders anticipate currency movements and make informed trading decisions.

    In summary, high beta currencies like AUD and NZD offer traders the potential for higher returns but also come with increased volatility and risk. Successful trading of these currencies requires a thorough understanding of market dynamics, strong risk management practices, and the ability to adapt to changing market conditions.

    In addition to the Australian Dollar (AUD) and the New Zealand Dollar (NZD), several other currencies are often considered high beta currencies due to their higher volatility and sensitivity to market events. Here are some examples:

    1. Canadian Dollar (CAD): The Canadian Dollar is often influenced by commodity prices, particularly crude oil due to Canada’s significant oil exports. Economic data releases, especially those related to the energy sector and trade, also impact the CAD.
    2. Norwegian Krone (NOK): Similar to the CAD, the Norwegian Krone is heavily influenced by oil prices because of Norway’s large oil exports. Economic indicators such as GDP growth, inflation, and interest rate decisions also play a significant role in NOK movements.
    3. Swedish Krona (SEK): The Swedish Krona is sensitive to global economic conditions and often exhibits high volatility. Economic data releases, particularly those related to exports, manufacturing, and the overall health of the Swedish economy, can impact SEK movements.
    4. South African Rand (ZAR): The South African Rand is influenced by a combination of domestic factors such as economic data releases, political developments, and global factors including commodity prices and risk sentiment. ZAR can exhibit significant volatility, especially during periods of political uncertainty or changes in commodity prices.
    5. Brazilian Real (BRL): The Brazilian Real is influenced by factors such as economic data releases, political developments, commodity prices (especially for commodities Brazil exports like soybeans and iron ore), and global risk sentiment. Political stability and fiscal policy decisions in Brazil can also impact BRL volatility.

    These currencies, like AUD and NZD, tend to have higher beta values compared to major currencies like the US Dollar (USD), Euro (EUR), and Japanese Yen (JPY). Traders interested in high beta currencies should carefully analyze the factors affecting each currency’s movements and implement appropriate risk management strategies.

  • US Retail sales and how it affects the Dollar and Gold movement: A synoptic article.

    Ariana

    •

    The relationship between US retail sales and the movement of the US dollar and gold is complex and influenced by various factors. Here’s a breakdown:

    Impact on the US Dollar:

    • Strong Retail Sales: Generally, strong sales point towards a robust economy, potentially leading to:
      • Higher interest rates: The Federal Reserve might raise interest rates to combat inflation, making the dollar more attractive, strengthening its value.
      • Increased investment: Higher rates attract foreign investment, further boosting the dollar.
      • Negative impact on gold: A stronger dollar tends to make gold less attractive as an investment, potentially pushing gold prices down.
    • Weak Retail Sales: Weak sales signal economic weakness, potentially impacting the dollar in two ways:
      • Lower interest rates: The Fed might delay or reduce rate hikes, weakening the dollar’s appeal.
      • Shift towards safe-haven assets: Investors might seek the safety of gold during economic uncertainty, pushing gold prices up.

    Additional factors to consider:

    • Global economic conditions: Other countries’ economic performances can influence the demand for gold and the dollar.
    • Inflation: High inflation can weaken the dollar, making gold more attractive as a hedge.
    • Geopolitical events: Political instability or conflicts can trigger safe-haven buying of gold and impact the dollar’s value.

    Recent example:

    • In January 2024, weak US retail sales data led to a decline in the dollar and a rise in gold prices. This suggests investors saw the data as a sign of potential economic slowdown and sought the safety of gold.

  • The Impact of JOLTS Reports on Dollar and Gold Prices

    Ariana

    •

    The Job Openings and Labor Turnover Survey (JOLTS) report, published by the U.S. Bureau of Labor Statistics, provides valuable insights into the dynamics of the job market. While its primary focus is on employment trends, the JOLTS report can also influence financial markets, particularly the U.S. dollar and gold prices. In this article, we’ll explore how the JOLTS report affects these two key financial indicators.

    JOLTS report timing. Be extra careful during this period. Time given in IST.



    1. JOLTS Report Overview:

    The JOLTS report is released monthly and includes data on job openings, hires, quits, and other labor market indicators. Analysts and investors closely monitor this report to gauge the health of the U.S. labor market and make informed predictions about the overall economic landscape.

    2. Impact on the U.S. Dollar:

    a. Employment Indicators and Monetary Policy: Positive JOLTS data, such as an increase in job openings and hires, often signals a robust labor market. This can influence the Federal Reserve’s perception of the economy, potentially leading to adjustments in monetary policy.

    b. Interest Rates and Currency Value:The Federal Reserve’s decisions regarding interest rates, influenced by labor market conditions, can impact the value of the U.S. dollar. A strong labor market may prompt the Fed to consider tightening monetary policy, which can contribute to a stronger dollar.

    c. Investor Sentiment:Traders and investors react to JOLTS reports, adjusting their currency positions based on the perceived strength or weakness of the U.S. economy. This can lead to short-term fluctuations in the dollar’s value.

    3. Impact on Gold Prices:

    a. Inverse Relationship: Gold and the U.S. dollar often exhibit an inverse relationship. When the dollar strengthens, gold prices tend to decrease, and vice versa. This relationship is rooted in the fact that gold is priced in dollars globally.

    b. Safe-Haven Demand: In times of economic uncertainty or labor market distress, investors may turn to gold as a safe-haven asset. Therefore, a weaker JOLTS report suggesting labor market challenges could lead to increased demand for gold and higher prices.

    c. Inflation Expectations: Strong JOLTS data indicating a robust labor market may influence inflation expectations. If investors anticipate higher inflation, they may turn to gold as a hedge, contributing to increased demand and higher prices.

    4. Conclusion:

    The JOLTS report serves as a crucial economic indicator with the potential to influence the U.S. dollar and gold prices. Investors should carefully consider the nuances of the labor market data and its broader implications on monetary policy and market sentiment when making financial decisions in these interconnected markets.

Recent Posts

Social Media