Which commonly traded currency is the strongest hedge against the US dollar?
Sunday, January 5, 2014
, Posted by Ryanita at 8:59 AM
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Answer
Have a look at this chart from finviz.com
http://www.finviz.com/forex_charts.ashx?t=ALL&tf=w1
You can see that these currencies: CAD, EUR, AUD, NZD are all moving in same pattern.
The Aussie & the Kiwi (NZ) look the strongest & If I had to pick one to go long, I would the Aussie.
Currency markets are quite volatile & there are lots of ups and downs.
You may want to purchase a long term option, rather than going long the currency, as this way your risk is known upfront. Currencies can move against you quite quickly.
Another play could be the ETF EWA - which is an iShares fund that tracks the Aussie stock market in US dollars. You can see that it is tracking the exchange rates quite closely at the moment
http://www.finviz.com/quote.ashx?t=ewa
Have a look at this chart from finviz.com
http://www.finviz.com/forex_charts.ashx?t=ALL&tf=w1
You can see that these currencies: CAD, EUR, AUD, NZD are all moving in same pattern.
The Aussie & the Kiwi (NZ) look the strongest & If I had to pick one to go long, I would the Aussie.
Currency markets are quite volatile & there are lots of ups and downs.
You may want to purchase a long term option, rather than going long the currency, as this way your risk is known upfront. Currencies can move against you quite quickly.
Another play could be the ETF EWA - which is an iShares fund that tracks the Aussie stock market in US dollars. You can see that it is tracking the exchange rates quite closely at the moment
http://www.finviz.com/quote.ashx?t=ewa
Help with Candlesticks in Forex Charts?
Q. As far as I know, candlesticks show open quote and close quote during some time period. Then the open quote of a candlestick should exactly equal the close quote of the previous candlestick. But it doesn't. What am I getting wrong here?
Answer
The candlestick opened at the same price the previous one closed but in its fluctuation it moved higher or lower than the price it opened at, in the process it can go over that open price from higher to lower and/or vice-versa. So the end result of that candlestick -once fully formed- will appear to not graphically coincide or show the exact place where the previous one closed; but if you look closely it actually does.
Let's say the price in its fluctuation just went over the open to a higher quote, but after it reached that high -at which point you're looking at a colored filled candle- it started to come down (leaving a "wicker" or "shadow" behind) But then it fills again on its way down if/when/after it goes through the opening price. Example: Previous Close was 1.3400. New candle opens at 1.3400 and then goes up to 1.3423. But then proceeds to go down to a close of 1.3392 (leaving a shadow/wicker from the high at 1.3423) But when it goes through the opening @ 1.3400 it fills up in color again down to 1.3392. This change from wicker to color filled candle shows you the exact point where the previous close and next candle open price coincide.
Other than that beware that If you're just observing at small -and therefore faster- moving timeframe LIVE, like a 1 minute timeframe or even a 30 second one, it's not unlikely that you'll see a candlestick opening higher or lower than its previous close. This is so because you're witnessing the fast candlestick formation while it's happening giving you the impression of a discrepancy between the closing and opening price between the two candles. But this is not the case when you check the actual recorded data.
That's the only thing that occurs to me that you might be doing. If that's not the case then you should provide more info as to under what conditions this happened to you. Other than that just do some backtesting on any trading platform that shows you the Open- Close- High- Low on any candlestick and see the actual data for yourself.
The candlestick opened at the same price the previous one closed but in its fluctuation it moved higher or lower than the price it opened at, in the process it can go over that open price from higher to lower and/or vice-versa. So the end result of that candlestick -once fully formed- will appear to not graphically coincide or show the exact place where the previous one closed; but if you look closely it actually does.
Let's say the price in its fluctuation just went over the open to a higher quote, but after it reached that high -at which point you're looking at a colored filled candle- it started to come down (leaving a "wicker" or "shadow" behind) But then it fills again on its way down if/when/after it goes through the opening price. Example: Previous Close was 1.3400. New candle opens at 1.3400 and then goes up to 1.3423. But then proceeds to go down to a close of 1.3392 (leaving a shadow/wicker from the high at 1.3423) But when it goes through the opening @ 1.3400 it fills up in color again down to 1.3392. This change from wicker to color filled candle shows you the exact point where the previous close and next candle open price coincide.
Other than that beware that If you're just observing at small -and therefore faster- moving timeframe LIVE, like a 1 minute timeframe or even a 30 second one, it's not unlikely that you'll see a candlestick opening higher or lower than its previous close. This is so because you're witnessing the fast candlestick formation while it's happening giving you the impression of a discrepancy between the closing and opening price between the two candles. But this is not the case when you check the actual recorded data.
That's the only thing that occurs to me that you might be doing. If that's not the case then you should provide more info as to under what conditions this happened to you. Other than that just do some backtesting on any trading platform that shows you the Open- Close- High- Low on any candlestick and see the actual data for yourself.
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