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10.9 DAILY/WEEKLY TRADES ONLY
https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=3551		 Page 34 of 37
Author:  Lydia [ Wed Jul 23, 2014 3:03 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Gertje » Wed Jul 23, 2014 9:30 am wrote:
I have all NZD pairs with +ve swap open and in some DD, so expect to get out of that tonight/ tomorrow.
AUD going strong today!
:!!:
Hi Gertje,

I am verry sorry, I think I missed the point here. I don't understand about this positive swap or +ve swap, can you please give me more explanation for that and how we trade it.
Thanks very much before and after.

Cheers.
Author:  Gertje [ Wed Jul 23, 2014 6:56 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Lydia » Wed Jul 23, 2014 3:03 pm wrote:
Hi Gertje,

I am verry sorry, I think I missed the point here. I don't understand about this positive swap or +ve swap, can you please give me more explanation for that and how we trade it.
Thanks very much before and after.

Cheers.
Hi Lydia,

When you're trading Forex, you are buying and selling currencies at the same time. Some countries have higher intrest than others, NZD, AUD and CAD have high intrest at the moment. The EUR has zero or even negative intrest at the moment. This intrest-differential is charged to the trader by the broker in the form of SWAP.

When buying AUD against the EUR, you are also buying the higher intrest, paid to you by the broker as (positive) swap. Would you sell the AUD against the EUR, you would pay (negative) swap.

Every day when the day rolls over into the next, swap is calculated and added to our trades. On Wednesday it is tripled to account.for the weekend when markets are closed.

Since money tend to flow towards higher intrest, trading these pairs in the direction of the swap helps a bit as well to make money.

So I'm testing now to trade in the direction of positive swap (mainly buying AUD, NZD and CAD against other currencies) to see if it makes sense. I'm trading on the D1 chart, so trades could stay open for weeks. GBPNZD shortsfor instance pays a huge daily swap ($1,- for 0.1 lot every day) so it adds up after a few day's.

Hope this helps.
Author:  Gertje [ Wed Jul 23, 2014 9:19 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Gertje » Wed Jul 23, 2014 9:30 am wrote:
I have all NZD pairs with +ve swap open and in some DD, so expect to get out of that tonight/ tomorrow.
AUD going strong today!
:!!:
WOW!

GBPNZD 225 pips up in just 15 minutes......
Sometimes it is worth staying awake for.... :)

:uff:
Author:  rocketman99 [ Wed Jul 23, 2014 9:28 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Gertje » Wed Jul 23, 2014 10:19 pm wrote:
Gertje » Wed Jul 23, 2014 9:30 am wrote:
I have all NZD pairs with +ve swap open and in some DD, so expect to get out of that tonight/ tomorrow.
AUD going strong today!
:!!:
WOW!

GBPNZD 225 pips up in just 15 minutes......
Sometimes it is worth staying awake for.... :)

:uff:
Well I was long on NZD and as expected interest rates increased but NZD reversed in wrong direction :arrrg:

Luckily I moved to BE before the announcement, but NZD gapped so I still took losses. I really cannot understand why NZD went the wrong way? Any ideas?
Author:  spotdespot [ Wed Jul 23, 2014 11:14 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
rocketman99 » Wed Jul 23, 2014 10:28 pm wrote:
Well I was long on NZD and as expected interest rates increased but NZD reversed in wrong direction :arrrg:

Luckily I moved to BE before the announcement, but NZD gapped so I still took losses. I really cannot understand why NZD went the wrong way? Any ideas?
Yes - simply some people expected a 0.50% hike. Almost everyone expected the 0.25% hike so it was already priced in.
Author:  Gertje [ Thu Jul 24, 2014 1:26 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
spotdespot » Wed Jul 23, 2014 11:14 pm wrote:
Yes - simply some people expected a 0.50% hike. Almost everyone expected the 0.25% hike so it was already priced in.
I have to admit, I didn't see this coming....

Shows once more how difficult it is to trade the "news". Good news that is already factored in, gives the opposite reaction as one might expect.

I knew the GBPNZD would react fiercely, but traded short instead of long. Lets say I'm "well prepared" for the retrace... :)
Author:  Lydia [ Thu Jul 24, 2014 2:07 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Gertje » Wed Jul 23, 2014 6:56 pm wrote:
Hi Lydia,

When you're trading Forex, you are buying and selling currencies at the same time. Some countries have higher intrest than others, NZD, AUD and CAD have high intrest at the moment. The EUR has zero or even negative intrest at the moment. This intrest-differential is charged to the trader by the broker in the form of SWAP.

When buying AUD against the EUR, you are also buying the higher intrest, paid to you by the broker as (positive) swap. Would you sell the AUD against the EUR, you would pay (negative) swap.

Every day when the day rolls over into the next, swap is calculated and added to our trades. On Wednesday it is tripled to account.for the weekend when markets are closed.

Since money tend to flow towards higher intrest, trading these pairs in the direction of the swap helps a bit as well to make money.

So I'm testing now to trade in the direction of positive swap (mainly buying AUD, NZD and CAD against other currencies) to see if it makes sense. I'm trading on the D1 chart, so trades could stay open for weeks. GBPNZD shortsfor instance pays a huge daily swap ($1,- for 0.1 lot every day) so it adds up after a few day's.

Hope this helps.
Hi Gertje,

Thanks a lot for the explanation, I will pay attention

Cheers.
Author:  Myrmica [ Thu Jul 24, 2014 8:20 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Hello,

could please someone verify for me if the weekly Stochastic for for example CHFJPY or EURAUD is also always down for the daily timeframe? I am using the 10.7 w/10.9 DAILY template. The green line (weekly stochastic) is on the bottom since 2010 which is actually not possible. It's the same for many other pairs too. Am i doing something wrong here or is there a mistake in the indicator? Thank you.

Greetings,
Armin
Author:  milanese [ Thu Jul 24, 2014 8:44 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
Myrmica » Thu Jul 24, 2014 8:20 pm wrote:Hello,

could please someone verify for me if the weekly Stochastic for for example CHFJPY or EURAUD is also always down for the daily timeframe? I am using the 10.7 w/10.9 DAILY template. The green line (weekly stochastic) is on the bottom since 2010 which is actually not possible. It's the same for many other pairs too. Am i doing something wrong here or is there a mistake in the indicator? Thank you.

Greetings,
Armin
the greenline is the monthly stochastic, the red the weekly...

Cheers :)

Tommaso
Author:  Myrmica [ Thu Jul 24, 2014 9:34 pm ]
Post subject:  10.9 DAILY/WEEKLY TRADES ONLY
milanese » Thu Jul 24, 2014 8:44 pm wrote:
Myrmica » Thu Jul 24, 2014 8:20 pm wrote:Hello,

could please someone verify for me if the weekly Stochastic for for example CHFJPY or EURAUD is also always down for the daily timeframe? I am using the 10.7 w/10.9 DAILY template. The green line (weekly stochastic) is on the bottom since 2010 which is actually not possible. It's the same for many other pairs too. Am i doing something wrong here or is there a mistake in the indicator? Thank you.

Greetings,
Armin
the greenline is the monthly stochastic, the red the weekly...

Cheers :)

Tommaso

Hi Tommaso,


yes you are completely right, I was wrong here. But still the green (monthly) line is always on the bottom since 2010 for several currency pairs even when there were substiantial uptrends during this time.

Greetings,
Armin
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