Bitcoin’s $10,000 “Line in the Sand”

Bitcoin’s $10,000 “Line in the Sand”
The cryptocurrency’s trends continue to be fueled by investor psychology

By Elliott Wave International

On January 23, Bitcoin fell below $10,000. That’s the second time in recent days that prices dipped below this psychologically important threshold. The headlines picked up on the drama:

“Bitcoin tumbles below $10,000 and is now down 25% on the year…” (CNBC, Jan 23)

That same article also observed:

No specific driver was immediately apparent behind Tuesday’s decline…”

The driver was investor psychology. That’s something Elliott waves analysis is adept at helping you track and forecast, so let’s see what the waves had to say about Bitcoin’s latest slide.

The day before the drop, our Cryptocurrency Pro Service posted this chart and a bearish forecast (partial Elliott wave labels shown):

Bottom Line: Multiple [Elliott] wave counts warn XBT is headed lower.

BitcoinPic 1

(Last Price 10710): The decline below 11,040 signals that the recent correction is likely complete. There are two ways to count it. Wave iv might have ended… or we can count [a still-unfolding wave iv triangle]… Both [wave counts] warn the risk is to the downside…

Early the next day, Bitcoin fell to $9,910. Here’s what the price action has looked like since (partial Elliott wave labels shown):

BitcoinPic 2

Keep in mind that sideways market moves are almost always corrective. Meaning that, most likely, Bitcoin’s “wave iv” our January 22 analysis mentioned above is still developing — as an Elliott wave pattern called a “contracting triangle.”

If you know Elliott, you know exactly what this wave labeling implies.

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As you read the news that Bitcoin dropped “below $10,000 with $36 billion of value wiped off in a day…” (CNBC, Jan. 17), you’re probably asking,

“What’s next for Bitcoin and other cryptos?”

Our new, free report gives you some much-needed answers.

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This article was syndicated by Elliott Wave International and was originally published under the headline Bitcoin’s $10,000 “Line in the Sand”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

In-Depth Analysis About Different Financial Assets

What do you know about the financial products? Do you know the importance of it? If we cite a few examples which are tracked by the financial product they are such as S&P500, NASDAQ-100 index, Dow Jones and more. When you are planning to purchase a share of the financial product you will be able to track the native index. If you compare the financial product and the other funds this specific product doesn’t try to perform better than another or doesn’t compete with the market. It tries to improve in performance to become the market. This financial product has been introduced to the financial market around in 1980’s and they have achieved popularity easily due to many reasons. Even the Singaporeans traders are interested in trading the financial product which we are discussing as it benefits them more than the other index funds. It has the feature of simplicity so most of the traders wish to trade it. Especially, the Singaporean traders are successful in trading it. If you want to trade it you should learn it well so then you will understand the ways to deal it. Let us read the article to learn more about the financial product.

Business Graph with arrow and coins showing profits and gains

Different types of trading indexes

Do you know how it happens in the market? Do you know how this dynamic market works? Actually, it is a list of stocks which are related to one another along with the aggregate value which is represented in the list (statics). These are used to show the value of the component stock and mutual funds hold the positions in such stocks. The indexes are of various types of stocks and they are usually known as the market index. There are different indexes which are based on the markets such as financial, foreign, tech and etc. there is a lot to learn about the indexes so you should never stop learning as it will improve your knowledge. The investors and the market players noticed that the trend in indexes have increased positively and they focused more on it. The major types of indexes were performing better to manage the portfolio funds. Anyways, the investors believed that the market index was far better than managed funds. So, likewise, the popularity of the financial product improved to a better state.

Benefits of online trading

As we stated above this specific fund does not try to outperform the other funds so the costs incurred are lower than other funds. Administrative costs are lower due to having less maintenance likewise; there are many benefits which you can gain from the exchange traded funds. Along with the above-mentioned benefit, you will also be able to enjoy tax-efficiency. You will find passive management because of the tax-efficiency. This financial product can be used for multiple investment purposes as the costs are incurred less than other index funds.

Flexibility is the best feature

If you consider the best feature in the financial product it can be the flexibility. This financial asset is traded similar to stocks. You do not have worry about pricing as it is done throughout the day. You will be able to purchase it on margin, sell short, and hold it for a long time as you do for the stocks. The main reason for this is the underlying value of the index. You will be able to enjoy more benefits they are such as diversification even more than share in just one company and the flexibility in many markets. If you want to trade the financial product you should practice more and more so you can become experienced in the field. And always keep yourself updated with the latest market news. Without learning the fundamental analysis you won’t be able to maximize your profit by trading the trending market. Last but not the least focus on your trading discipline.

Author Bio

Taylor Z. Jordan is working as a content manager at The Saxo Group which is the leading investment banking and technology company looking back at over two decades of growth and success. As Saxo helped drive the revolutions that shifted the business time and again, it has always been energised by the same notion that moves us today. Saxo strives to facilitate multi-asset investment and trading by providing access to global financial markets, cutting-edge technologies, and industry-leading expertise.

What are the benefits of using a VPS server for trading?

Trading is a business that takes much time, study and a great control of your emotions. All this can be ruled out with the use of an automatic trading system. But what exactly is a software for automatic trading?

Well, an automated trading software is nothing other than an application by which people can invest in financial markets with simplicity and without any engagement. The opening, management and closing of the operation are fully managed automatically. The investor, with this tool, can completely exclude the emotional factor, and the time required to observe the markets.

An automated trading system has huge advantages, but requires some precautions, such as finding ways to operate the software without any interruptions that may result in a loss of money. The solution can be the Forex VPS (Virtual Private Server), a virtual PC positioned within a company’s server, that can safely and perfectly operate 24/24, 365 days a year.

Especially your PC is not set for the trading like a Forex VPS, with a 250mbs connection, autologin in case of reboots – feature that allows you to automatically open the MetaTrader 4 with your Expert Advisor – and the ability to access it from any device, even when you’re out.

Thanks to a VPS server, the automated trading system can operate continuously without any physical presence and with the ability to turn off your PC or use it to handle other tasks.

What are the benefits of using a VPS server for trading?

You can upload platforms such as Metatrader 4 and upload your Expert Advisors

You are safe from any power and internet connection outages, failures etc…

You can have a second Internet connection and do your research directly from the server

You can access the VPS server from any PC or mobile device simply by typing an IP address

Rental of a VPS server has a variable cost depending on the configuration you choose. Usually, for a trader a “basic” hardware configuration is enough: from an economic point of view, it costs no more than 30 euro a month.

On the internet, we have found the service offered by FOREXSTAK®, a Forex VPS Server Optimized for MT4 and Any Broker. Prices change depending on the desired configuration and range from € 29.99 to € 139.99 per month as indicated on the Hosting Stak website.

I’m trying out FapTurbo 3

Hey everyone! Wow, it’s been almost forever since I posted on this blog.  I’ve been busy with other occupations so this blog has taken a backseat to everything else in my life. I have decided to get slowly back into blogging about the forex market.

In particular this post is about me getting back into playing around with forex robots. I have used the popular FapTurbo forex robot in the past with some success.  I’ve been using the 2.0 version on two live accounts for many months now, but never really gave much though about sharing that with anyone else. However I just leared that there is a new and supposedly improved version of this forex robot. I’ve got it on two live accounts with FxChoice and Capital City Markets (was Tallinex but Tallinex decided to dump all their Canadian clients sadly).  So far I’m quite impressed with the performance of the 3.0 version of FapTurbo. It seems to have better entries into the market than the previous version. What I really like more though is the Bitcoin version of FapTurbo. Right now this version is super profitable.

I’ll make another update post once I have some performance data to share. My account is a bit cluttered with my own manual trades, but I’ll try to see if I can sort out the robot’s trades from my own.

If you want to find out more about this forex robot checkout the FapTurbo 3.0 homepage.

Note, you’ll be helping me out if you decide to purchase it. No pressure to do so of course but I’d just like to thank you in advance.

Cheers, and happy trading!


Mixed Reaction of the USD in the Market

Without any serious news hitting the market today, the USD is currently losing some lustre after its strong run for weeks and it is down against major currencies. The GBP and commodity currencies are the best performers. The relative appeal of the USD seems to have hit a level of saturation in absorbing the pressure from counterparts. Its incredible rally was capped at a 12-day consecutive advance as Tuesday opened lower. The uncertain turn is because the Fed rate hike expected on 14th December is still buoyant. With that said, here are the winners and losers.


Commodity currencies

The S&P 500 index is up by 0.6%, rising to record high, exceeding the last mid-August peak in response to the strong gains for the energy sector. The oil prices are going up by over 5% as OPEC agreed to cut production at the end of this month. The Iraq’s Oil Minister said that he would put a new suggestion on the table to push for the production cut. The high oil prices have supported commodity prices in general, with the commodity price index for Bloomberg up by 2% on Tuesday.


The EUR broke its more than 10-days losing streak against the USD, up by 0.2% at 1.0630, although that is subject to change before the trading markets close. Economic analysts are cautious about the European political risk controlling the path of EUR over the next few months, and that could easily make EUR/USD sub parity. Currently, the EUR/USD trades remain unchanged at 1.0630, testing fresh season low posted last minutes under 1.06. Although the resurgence attempt remains minimal in EUR/USD, as the USD wipes-out losses and appear to recover its strength across the major currencies, tracking a slight recovery seen in the European treasury yield won’t be enough. Moreover, the European Central Bank president said that he is ready to employ more stimulus packages whenever required, which is likely to keep prices stable.

There is nothing significance in the EUR calendar today, so the CMC Markets are looking forward to the release of US data for extra incentives. However, in terms of EUR/USD technical levels, the pair finds the abrupt resistance at 1.650, daily high. A break beyond the daily high is expected to test 1.0690 and from there to 1.0700.


GBP is the best currency performer of the day against the dollar, which is up by 1.1%, going through to 1.25% at some stage. The strong rally caught traders by surprise on, November 22 as many were expecting the USD dollar to dominate the market ahead of the midweek Autumn Statement. The British Prime Minister stole the show with her comments, suggesting that there would be no high point when it comes to Brexit. The economists perceived that she was suggesting that the traditional single-market is more likely to prevail.

So, the much speculation about the strong gains of sterling pound against the USD overnight may be due to the anticipation of a fiscal boost in the UK Autumn Statement or by the statement of May, the UK PM that she will look for a “traditional deal” for the Brexit to evade the “cliff edge” that every business fear. This reaction to the statement of May serves to remind traders how tricky it is to trade with a politically-driven currency. The GBP current resilience, especially against the USD and EUR is going to be tested in the coming days after the fiscal boost.


The USD/JPY pair rose to high of 111.37 on Monday only to slide and end the day at 110.78. The pair extended the slid to 110.35 on speculation that the dip will increase in the event the earthquake lead to a considerable damage. However, the Japanese government intensified the Tsunami warning, which help the JPY to recover losses and traded largely unchanged on Tuesday around 110.75 levels.

Besides, Trump through a video message said that he will quit the TPP trade deal on his first in office. According Trump, this will help his administration bring jobs to Americans. Remember, this deal was signed by 12 large economy countries, which cover about 40% of the global economy. The remarks may not be received well by the CMC Markets, because it may increase fears of trade wars. If the financial markets in the US and across Europe respond negatively to the remarks of Trump, the JPY is likely to strengthen.

Forex: Explaining the Importance of Time-frames

Forex trading is not only about learning the meanings of forex terms. Do you know that most of the new traders fail to reap dividends primarily because they are unable to select the right time frame which suits their personality? In a rush to make money, most of them end up consistently avoiding the long term approach – mainly because they believe that this approach takes up a longer time to yield profits. However, as experts suggest, this is one of the most common misconceptions existing in the currency market today. Let us delve deeper into the significance of the right time frame in forex.

One-hour Trading Charts

It mostly turns out that trading with short term charts is more difficult than with the comparatively longer ones. Most of the new traders (as already mentioned, in their bid to earn quick money) opt for 1-minute or 5-minute charts that are difficult to analyze, resulting mostly in disappointment.

The one-hour trading charts, on the other hand, turn out to be suitable for most of the traders- since they give them substantial amount time to read the market but are not too long to test their patience as well. These charts turn out to be the preferred option for most of the traders out there since they offer right quantity of signals (neither too few nor too many to confuse traders).

Quite interestingly, it actually takes longer for traders to develop their strategies when they are trading with short-term charts. Come to think about it. The candlesticks in the short term charts receive less information when compared to those in the long –term charts. So, ideally all the new traders must trade with long-term charts so as to make the best use of as much information as is possible. They can gradually shift to the short term charts as they start gathering more experience in forex.

Choice of the trading charts

The choice of forex timeframe largely depends on the personality of the trader as well. For instance, though experts suggest that one-hour charts are the best options for new traders, there are some traders who don’t even have the patience to trade with them. These traders are suggested to try out the 10- minute charts instead of the 5-minute ones since the former will still give them at least some time to work on a trading plan, which the latter will not.

Then there others who might as well find the one-hour charts find too fast as well. They prefer weekly, daily or monthly charts to develop their trading strategies.

So, basically the choice of your trading charts relies heavily on your personality. Similarly the choice of trading hours (whether you want to trade during the day or night) depends on your personality as well.

Charts, Trading Hours and Brokers

If you are not able to study your own personality and select your trading charts accordingly, then you will not be able to secure desired results. The choice of the broker will also govern your trading fortunes partially. A broker is not only your connection to the currency market but also your trading partner who assists you during your difficulties. If you’re looking for a reliable broker right now, then please visit the website of CMC Markets.

How Small Businesses In UK Can Benefit From Forex Trading

If you run a small business in the UK that operates internationally, then swinging currencies is something you always have to worry about. This could apply to companies that buy goods overseas or sell services to customers in other countries. Any time there is a non-native currency coming into your UK business, you’ll want to have it properly converted as quickly as possible, but what do you do if the value of that currency drops before you have the opportunity?

In this sense, the forex market can be viewed as a form of security and risk management. It’s not necessarily used to make a profit, as many forex traders like do, but it can be used to ensure that your business doesn’t take any unnecessary losses. It’s especially helpful if you deal with one or more extremely volatile currencies that like to fluctuate depending which way the wind is blowing.

That isn’t to say that the forex market doesn’t come without its own risks. However, much of this risk can be mitigated if you are properly educated on the subject, know what to look for, and know when to make trades. Things like these can be learned through educational seminars, online programs, and by working with reputable brokerage firms.

A Better Understanding Of Forex

First, it’s important that you understand the market and learn forex trading nuts and bolts. At its core, it’s actually pretty simple. You purchase a certain amount of one currency by paying for it with another. If you think that one particular currency is going to increase in value, then you pay for it with another currency. You’ll then trade that currency once again after its value has increased, thus making some margin of a profit. Typical trades occur very quickly, but it’s entirely possible to bet on longer gains if you feel comfortable.

You need the support of a reputable, skilled brokerage to help you make the best decisions. You can save a lot of money by simply choosing the right brokerage to work with, which can be difficult. They need to have an adequate understanding of your business and what you hope to accomplish by utilizing the forex market.

What Do You Hope To Accomplish?

Benefiting from forex doesn’t mean the company just uses forex to trade the currencies as they are paid with them. What exactly you need to accomplish and how to accomplish it depends on the nature of your business. If you are paying for goods or services from a foreign company, then you will likely want to pay them in their native currency.

If this is the case, then the best time to purchase said currency might not be at the same time you are paying for the goods. Your currency may be undervalued or theirs of higher value at the time. Instead, you plan ahead and purchase currency when yours is of a higher value. If you believe their currency will increase in value over time, then you can purchase currency ahead of time and trade back to net a small profit.

The forex market can be used as a source of additional profit. These profits are used to control the losses you might take from accepting an undervalued currency or purchasing a higher value currency. Instead of looking at these profits as a direct gain to your income, you view them as a reduction from losses you might take in the future.

Be Careful With Your Choices

Trading in the forex market is so fast and simple that it’s easy to quickly make big mistakes before you’ve realized it. That’s why it’s important to work with a highly-qualified broker who will assist your small business and avoid those brokers that will harm your business. Even with a broker on your side, you should still take time to learn Forex trading and everything else you can about the market and what affects the value of currencies across seas.

Goodbye ZuluTrade Signal Providers That Trade on Demo Accounts


That’s it! I’ve had enough! I have decided to institute a new self rule for my adventures with ZuluTrade. I will NO longer follow any signal provider that trades on a demo account. After I just recently had a signal provider run amock on my account I learned a hard lesson (by losing money) that if a signal provider has no money of their own to risk they are nearly guaranteed to be reckless and risky with YOUR money. I would strongly suggest you put this rule in place for your own zulutrading as well. I will publish a revised portfolio made of only LIVE signal providers – ie signal providers that trade on a LIVE account.

I wish you all the best of luck with your trading! Stay safe and make pips!

An adventure in currency trading