eXentral - Commodity Trading

eXentral - Commodity Trading

Show Video

Good afternoon, ladies and gentlemen, my name is michal is after me and i'd like to welcome, everybody, to today's, webinar. Here at accenture. Today's, webinar, we're gonna be looking at, commodities. So, everything, that we're gonna be speaking about the strategies, the techniques, that we're gonna be looking at so they're all gonna be based, around. Uh commodities. We're gonna start off with the basics, we're gonna look at some of the characteristics. Of trading, uh commodities. And then we're gonna go into techniques, and strategies, and different things that you can take into consideration. As, a trader. Now throughout, the webinar, i recommend, everybody, has a pen and paper to hand. Write as many notes as you can, if you do want to ask any questions you have two options, you can either, ask the question. Through the go to webinar, software. If you do bear in mind i will answer, the question. Live, on, the webinar, so if you don't want me to ask, answer the question live on the webinar. Then all the slides, pretty much have my email address feel free to send me an email. Ask me all the questions, that you're looking for an answer for something you didn't understand. And i will get back to you within 24 hours with all the answers. Now if you do want to re. Watch, the webinar. Uh we always put, the webinar, recording. On fridays. So this friday, you will have, the option to re-watch, the webinar. And for those of you who want to uh have different, uh, subtitles. For example. Spanish, german, and so on, on friday, on the recording, we also. Input. Subtitles. As well. So as always i'd like to do a quick, introduction. Uh to myself, for, those of you who have not. Previously, watched. One of my webinars, so i've not previously, spoken to me so, i am the market, analyst here at accenture. A bit about my background, i originally, started, off, in the uk in london as a financial, advisor. Since then i've worked with a couple of academies. Which are based around trading the financial, markets i'm currently setting up, my third academy. I've also worked with lecturers, i've been trading with aids. Trading for about eight years. And for those of you who want to know the technical, uh aspects, of things i do hold the cmap, license, and also, a psychic, advance. So as, the market analyst theatric, central. Everybody, here does have access, to me. So, as i said before, all the slides have my email address, if you do want to arrange a one-on-one, session. If you have questions, maybe something happening in the market, maybe something you're not doing correctly. It could be, even. Within regards to trading plans risk management. Strategies, and techniques. Again. Send me an email, i'm more than happy to spend. As much time as necessarily. With you. Here at, accenture. We are looking at investments. More specifically, we're looking at investments. In cfds. Now of course as, with all investments. There is a risk. Carried to the capital, you are invested. So it's important that you do read, the risk. Warning, we, put it pretty much in all the different. Pages on our website. We've got it on our email addresses, and we've got it. Out on all the marketing, that we produce, as well. So the information, is there, read it make sure you understand, and make sure you're comfortable, with it, before proceeding. To a full investment, if you have read it and you're still not 100. Sure. What uh trading the financial. Markets, and tell them by all means against a minimum. Be more than happy to uh provide you with the information. Uh last thing before we actually, get started. At.

Looking At, trading. So the content. In this video, is for informational, purposes, only. And do not constitute. Investment. Advice. Accenture, assumes no responsibility. For any potential. Errors, inaccuracies. Or missions, in this material. Nothing in this. Communication. Contains, or should be considered, as containing. An investment, advice. Or an investment, recommendation. Or solicitation. For the purposes. Of. Purchase, or sale of an effect of any financial, instrument. Any views or opinions, presented within this material, are solely those of the author. And do not necessarily, represent, those, of eccentric. Unless, otherwise, specifically. Stated. On. The video. So. We do, two webinars, a week what i'm trying to say, as part of this slide. Is that, the webinars, that we do twice a week, and if you go to our youtube page, type in accenture. You'll see our page there, there's, hours, and hours of different webinars. Based, on, different aspects of the market, strategy, techniques, different types of plans etc. They're all there for, informational. And educational. Purposes. They're not there to give you direct. Financial, advice, so you shouldn't use them in that way they're there to educate, you in order for you to trade. More comfortably. And for you to be aware of, different ways that you can trade, this is the the purpose of the webinars, the educational. Webinars. So uh let's actually get started. On, different aspects of trading. As i said at the beginning today we're going to be, looking, at commodities. Specifically. So we're not going to be looking at stocks, and forex. Which uh to be honest we look at quite a lot of, today we're going to be concentrating. On. The commodity. Market so we're going to start, off. Looking at some of the forex, basics, and we're going to look at characteristics. Of. These assets. Then we're going to move on to looking at different correlations. Which are very important, for everybody, to be aware of in order to trade these assets.

And Then lastly, we're going to be looking at price action, in relation, to commodities. And also, the use of indicators. And strategies. Again. Relating. To commodities. Specifically. The webinar, is based. At a basic, to intermediate. Level, as, always, so even if you've never traded before i can see a lot of new traders. Who have signed in to watch, tonight's webinar. Again do not worry it's at a basic level if you do have any questions, feel free to, ask. Now first thing. And, massively, important for everybody to be aware of is that here at central you are trading. Cfds. Now see if these stand for contracts. For difference. Now here at central, you're, not. Buying, the actual, underlying. Assets, itself. All you are doing is buying, a. Cfd. Which is basically. Basically, giving you the ability. To speculate. The price. Movement. So for example, if you're buying a cfd. In apple, stocks. It doesn't mean you're actually buying, apple stock. It basically, means that you're buying a cfd. Which is pretty much exact, same as apple, but with a cfd, all you are doing is speculating. The price. Movement so for example, if a stock. Is, at 100. The cfd is at 100. As well and it will mimic the movement. Of, the stock so it gives, uh, traders, the ability. To, speculate, the price movement without, actually having to go out and buy the stock, itself. Now a lot of people, are gonna. Be asking me i'm pretty sure. That uh why would i buy a cfd. Instead of buying the actual stock, or the actual currency. Or commodity. Itself. There's different, uh reasons, why traders, do, so. Uh one of the reasons, is that. When you i'll use a stock again, as an example when you are looking to purchase. Uh stock. Okay let's say i use apple stocks which are very popular. The issue is that you have to go out, and find someone who's willing to. Sell, the stock. To you. Okay so that's issue number one so that could take, quite a lot of time it can cost a lot of money, as well. Let's say. You do, manage to buy the stock so let's say the price looks similar to this so now trend you buy here. The only way you can profit, from. Buying the stock itself. Is that the price has to go up. Like this. It has to go up you cannot. Profit from the stock. Decreasing. In value, now once it does go up in value if it does go up in value. Then the issue is that. In order to get the profits, and the capital, that you have invested. You have to sell it now, if it's actually, become extremely, expensive. The stock. Then, it may be very difficult to sell it, or if you're going to start to witness, stock market crash, which we've seen. Two of. Over the past, two years. Then again there's going to be very, few people that are going to be looking to buy the stock from. So again, this is a big issue. Which is why a lot of people are steering, away, cfds, because, cfds. You can instantly. Enter the market, because you're not actually buying the assets you're just, speculating. On the price movement. And when you're looking to come out to the market you can, instantly. Be, come out of the market. As well. Also, a big advantage, is that, you cannot, only speculate. That the price is going to go up but you do have an option. To speculate, that the price is going to drop in value as well, so like i've said, over the past two years, we've seen. Two stock market crashes, we've seen. Commodity. Crisis. As well like brent, oil. Also a crude, crude oil as well have, had a massive, crash bigger than the stock market crashes. So i'll see if this is a good opportunity, where you can speculate, that the price is going to. Drop. In value. Now i've got a couple of questions, here, from a gentleman. He's. Asking. Do you have the ability. To. Open, both, by, and. Speculate, that the price is going to drop. As well. And this is called. You do have this, opportunity, to the market, you can speculate. That the price is going to increase and at the same time. Place a different trade with speculating. The price is going to think decrease, in value. This is. An option. This, method. Is. Uh known as hedging. Again if you go to our. Youtube, page you will see webinars, which are specifically. Based around speaking. About, hedging, i don't speak too much about it because today we're looking at a, different subject. But yes you do have, that ability. Now. A different. Reason, why a lot of people come to a look at cfds. Instead, of going out to actually buy the actual assets itself. Beside. The fact that it's easier to get hold off. Uh it's quicker to get hold of as well as, easier and quicker to get rid of. When you're looking to come out of the investment. And that you can speculate. In both directions, of the market. Another, big factor. Is. Leverage, this is a, massive, massive factor something, again.

Very Important that everybody, understands. When you're looking to trade cfds. Now this is the last slide, we're going to look at, forex basic. Terminology. Characteristics. And then we're going to start, to. Look at. Specifically. Directly. Different elements, of the commodity. Market. So. Leverage, again i want to make sure everybody's, fully aware, what it is. Because it is massively, important, and it's one of those things which is known to be, a double-edged, sword because it can be an advantage. And it can be a disadvantage. As well. Now leverage, is when the broker. So, central, is allowing you to control, more capital, than your actual, investment. Now a lot of people when that they hear this a lot of people, believe. That the broker is actually. Lending the money, no. The broker is not letting into you lending you money when leverage, is involved. What they are doing, is increasing. Your, buying. Power. So for example. If you are investing, 1 000. And you have a leverage, of one to one hundreds. Each, dollar that you are investing, we are increasing, your buying, power, by 100. Now this means you are able to invest, actually 100, 000 because. One thousand spin times by one hundred, equaling. One hundred thousand. So instead of being able to let's say buy one stock. Uh which is a thousand dollars, instead, you can buy, 100.. Now why. Is it known as a double-edged, sword why is it known to be both an advantage, and a disadvantage. When leverage is involved, because, you are increasing, your buying power, it means that each movement, in the market. Is. At times. By, 100. So when you get. The markets, moving in your favor and let's say you are trading in the right direction the market. Then it means you are earning, more and you are earning it faster. Now when the marketing, move is moving against you because you are trading, in the wrong direction. It's the same thing, the market is moving against you more and faster, as well, this is why it's known as a double. Edged, sword. Now i've got, another question from a gentleman. Uh here i can see he's, asking. Does this mean that you can actually, own. The broker. Money. Because. The movement, has been times by leverage. No that's not correct, you can never, owe. The broker. Capital. So. There's, uh, even though there's leverage, you can never, owe, the broker capital, even if the market is moving against you so that is not. Possible. So hopefully that answers your question. Right so let's actually start looking at different, characteristics. Of, commodities. Now, a lot of people hopefully have watched some of the previous webinars, where we're looking at technical, analysis, where we're looking, at, sentimental, and also fundamental, analysis. Now, fun. Like forex. And, stocks. As we have always stated. A lot of traders, and analysts. Tend to, concentrate. Massively. On. Technical, analysis. Still they concentrate. On a trading plan on risk management. Sentiment, on fundamental, analysis, but a big part of the analysis. Is turning, and concentrating. Towards, technical. Analysis, such as price action, such as indicators. Now, with, commodities. Because, it is massively. Massively, based. On supply, and demand. This means that, big, aspects. Of at the price, is based on fundamental, analysis. So, unlike, what a lot of traders, say where. With a forex, and stocks, and indices. Where 70, percent of the analysis, needs to be technical. It's not that, kind of asp it's not, the same with commodities. What is generally, known within the market is that commodities. And analysis, based around commodities. Is massively, based, on fundamentals. So, we're going to be concentrating. On what. You need to be looking at. As a fundamental, analysis. What is, the correlation. The connections, between, these assets, and the market. And at the end. We're going to be looking at the technical, aspects. Of, things as well. Because again, you still do need to concentrate. On the technical, side, so like i said.

Commodities. No matter what type of commodity. Is is massively, based on supply, and demand this is the main driver. Of the price so changes, in the supply, impact the demand. So low supply, equals higher prices. Whereas. If there's a, higher supply. You're going to get lower prices. If i give you a very. Very, basic, example. Gold, which is rare, there's not a lot of it. It's priced very high. Today. Per ounce, is priced over. 1800. Dollars. Uh silver, which is not so rare and there's a lot, more of it because. Of the past. Hundreds. Of years but over the past approximately. 500, years we've been digging. Up so much of it. It is, much cheaper, because there's a lot of supply in the markets. Of it. For example, if there's. A massive discovery, of massive, amounts of gold. Coming out, within, a couple of years, then. There could be a chance that the price of gold is massively, going to drop. These are very basic examples, we're going to look at more advanced. Uh. Connections. To the markets. As we continue, with the webinar. But it's massively, important that everybody, knows. That the price, is going to be massively. Linked. To supply. And also demand. The same way it works with supply, it works the same way at the moment, the higher the demand, is for. That commodity. Then the higher the price is going to go. The lower the demand, there is for that commodity. The lower the price is going to go and it's important, that traders, are looking, both at the supply. As well, as, the demand. As well. Now as, uh we're going to be looking at, as part of today's webinar we're going to be concentrating. On. Three. Types, of. Commodities. We're specifically, looking at three types of commodities. Because these are the most. Popular. Commodities. That there, is. Traded, on, our, platform. So we're going to be looking at gold. We're going to be looking at silver. And we're also, going to be looking, at, oil, as well. Now what you should. Know. On based on all of these assets, is that they are volatile. Assets. So they're not the type of asset where there's not much movement, there is a lot of movements, in the market so you need to, bear this in mind, when you're looking, at. How you're going to be trading. And also the trade, sizes. You do not want to, want to over expose, your account to the market. Because, again, you're looking at. Leveraged. Products. And also, a volatile. Market, as well. So let's, start to look at, correlations. With, a gold, then we'll look at silver and then we'll look at, oil. Now. Most assets. Which are tradable. Tend to have correlations. Uh correlations. Means that there is a connection, between the price of this asset. To possibly, another, price, or, another, event, or some kind of condition, there is to the economy. Now. Some. Assets, have very strong. And many connections. Some assets, tend not to have so much connection. Commodities. Tend to have, very, very. High. And many connections. Uh two different assets. Now let's start looking at, gold now, the biggest, connection. Which is known. To gold. And this is a direct, connection, the first one is with the us, dollar. Okay. The second one is known, to be, the general, market. Conditions. Now you can be looking at the stock market, you can be looking at the bond the markets, and yields. You can also be looking at, in general. Economic, conditions. Now how exactly, are they, correlated. The first correlation. As i said is with the us dollar this is the most, well-known, correlation. Between. Gold. And. Any other assets, and that is the u.s dollar and it is an inverse. Correlation. Now this means generally. Speaking. When you get the us, dollar, increasing. In value, and you've seen an upward trend and you've seen the dollar being. Very strong. There's a lot of confidence, in the dollar and there's a lot of people investing. In the dollar. Then what you tend to see, is that. Gold. Tends to decrease, in that. All right this is the first. Uh, connection, the first correlation, that you need to, keep. Keep in mind. Now. To keep an eye so that means when you're, trading gold it also means you need to keep, an eye. On the strength of the us dollar, now you've got two options.

In Order to do that, option number ones you can look at different. Major. And exotic. Currency, pairs. Most likely you're going to be looking at major currency pairs which are the major currencies. Against the us dollar and you're, checking on all the different currencies. If the us dollar, is strong, or if it is weak. Option number, two, is you can keep an eye, and, analyze. The u.s, dollar. Index. Now the u.s dollar index, is the value of the u.s dollar, not against one currency, so it's not a currency, there, but it's actually the value of the u.s dollar, against. Six. Major, currencies. And it's giving you basically. A more overrule. Value and an overall, indication, of whether. The, u.s dollar is strong. And bullish. Or whether us dollar, is weak, and bearish. And of course there is a correlation, between the two, what would be great is if you can look at all the different charts, look at us dollar. Index. Charts, and then. Look at, gold index charts, as well. And see the connection between the two because you will, see a connection, between the two there is an inverse, correlation. When the us dollar, is going up we tend to see. More, uh bearish, movements, on gold, when you see. Gold. So when you see the us dollar going down we tend to see, bullish movement. On gold, now this doesn't mean, the connection. Is, guaranteed. Doesn't mean it's 100. It doesn't mean it's going to happen. Uh, continuously. And, at the exact same moment so for example. You may get, the u.s dollar, having a lot of volatility. And the us dollars, increasing, in value. But, gold may not. Decrease, in value, at all, and then, you may get, possibly. A delayed, response. But generally speaking, the rule is that there's, a. Inverse. Direct. Uh. Correlation, between golden and used. The second. Connection. Is, market. Conditions. Now this means when there is a recession. When there is uncertainty. Within the markets, and people. Are losing, capital. On stock markets, on bond markets, on guild, markets, and different. Aspects, and different. Types of markets. Then people tend to take their money out of these assets, and they put their capital. In what is known as safe haven, assets safer human assets. Are for example, gold. Silver, and there's other assets as well such as the japanese, yen. Some people also consider. Uh. The swiss franc, as a safe haven asset, as well.

So. When, you get, poor economic, conditions. You tend to see gold, going, up, when you get very, good economic, conditions, an economic, boom or any kind of indication, that you're coming out of a recession. Or something like this. Then you tend to see gold, decreasing, in value because, confidence, is coming back to the market, and people are taking their money out of the safe haven, assets. And they're putting them into more, riskier. Assets. Such as the stock market. Such as, currencies, as well. So that's connection number two and then the last connection, is the stock, markets. When people. And when there is a stock market crash. There it, goes as well, there's a correlation. When the stock market is crashing. People tend to take their money out of the stock market. And they put it in the safe haven assets. Like gold. When the stock market, stock market starts to occur, recover. And people, are more confident. In, taking their money out of. The safe haven assets again like gold. And putting it back in the stock market, as the stock market, rises. Gold, will decrease. Now there's, three. Correlations. There. There may not always, be, the exact, same correlation. So for example. Now. The stock market. Is increasing, in value it's been increasing in value for over a month, now, we're looking at i'm referring to, the us. Stock market. Has been increasing, over a month now, but gold is still, increasing, in values, not dropping, in value, this is because the u.s dollar, is still very weak, people are keeping their money out of the u.s dollar and keeping it within gold. It's because there is, the copper 19, fear, there's fear of new. Lockdowns. Feel, new, quarantine, measures. Uh, high unemployment. Very low inflation, rates, a lot of fear within regards to the economy. And this is pushing, the price of gold, up so, you have to take into, consideration. Uh, not only correlations. But, also, keep in mind, all three correlations. Not just the us dollar, not just the stock market, and not just. The. General, economic, market conditions. So let's, start to look at, silver. Now, silver, believe it or not.

It's Very similar to gold, in terms of its correlations. It. Tends to have. What. It's known within the market, as a delayed, response. To gold. In a sense it's mimicking, gold now again it doesn't mean it's going to happen, on every occasion, doesn't mean it's always going to happen in this guarantee. But this is generally, what we tend to see within the market if you put your charts on a weekly, chart. And you. Compare the two you look at gold's weekly charts and then you look at, silver's weekly charts you will see a connection between the two, that they do tend to mimic, each other and see similar types of movements. And that. And that silver, is lagging, slightly, behind, gold, as well. Now as i said the correlation. Between, gold. And. The u.s dollar, the stock markets. And the economy. Is very similar to silver. Silver, it does have the same correlations. To. The us dollar to the stock market. To. Uh. The general economic, conditions. And at the same time there is a correlation, there with gold, as well. What you need to be aware of, uh is, the pro. And cons, between. Silver and gold. Is, uh. That. Silver, is much cheaper, okay, as, i'm sure you can see when you're looking at the charts and you look at the prices. You will notice that silver, is much, much, cheaper so people. On, a. Much smaller, account. Will easily, be able to trade, at silver, in terms of, the amount of margin, which is required, to, trade it, very simply because, it's a much cheaper, asset. What you do need to be aware of though is that silver is generally. Known in the market, to be more volatile, there's more movements. Okay. This can be considered, as. A, as an advantage, it can be considered, as a disadvantage. Depends, on you as a trader. Because of course some traders are looking for. A, lot of volatility. And high movements in the markets and traders are not so it depends on you as a trader. But. It is not too it is an advantage, that is much cheaper. But you do need to take into consideration. It's, a lot more volatile, this is why you, know it in the market, as a restless, metal. And in terms of the correlations. It's the same as gold, but you get that extra correlation. In which. It is correlated. With. Gold, itself. So let's, start looking at, oil, oil, is very, uh. Very interesting. Because, it's very volatile. And you see very big movements. And over the past few years, we have seen. Uh two major crashes.

But, After these major crashes, we have seen very strong, upward, trends as well, and not as price corrections. A bit. More long-term, price corrections. What do we need to, keep an eye on when we look at correlations. In the market so what is driving, the price. As stated before, at the very beginning of the webinar. It is massively, linked. To. Supply. And, demand. Okay so you need to be looking at, the supply, of oil. And what is driving, the demand. Of oil, as well. So what has caused. The, latest. Price. Crash. Uh completely, collapsed. Pretty much more or less and we will look at that in the coming slides. As well, if you haven't already looked at the crash. Uh what caused it is, two things, and the first thing was. A price war between. Russia and saudi arabia. In which there was a war between themselves, with regards, to prices, of slashing, prices. And. Pumping, more and more. Oil. Into the market, so you had an issue there with regards, to the price in which case they were cutting the price of oil. Purposely. Which is, not generally speaking. Allowed, but they were doing it nonetheless. At which, where the price war. Came about. And also they're pumping, more and more oil in the market now like i said before. Supply, is a massive factor to the price the more of it within the market. The, lower the price would get the less of it within the markets. Or feel, there be less of it within the market. Will push prices, back up. So this is something you need to keep into consideration. What. A lot of traders, do, is they go on the google. And they continuously. Keep an eye on, this company. You can do the top five, top 10, top 20, top 30. Countries, which are producing. Oil these are going to be the main drivers, of the price so you're going to be looking at, canada, you're going to be looking at the middle east you're going to be looking at libya. You're also going to be looking at nigeria. Venezuela. Brazil, and so on and so forth russia as well which is a big play. And the us. Keep an eye on, these countries, there's, how they're supplying, or how much they pump in. In terms of oil as well, this is gonna be a massive factor. To the price, like i said before, the more which is being. Pumped. The higher the chances, of the price dropping. The less being pumped. The higher. The chances, of it increasing, in value. Also rumors, as well, not just rumors, but uh actual facts as well of, chances, of, the supply. Altering. Can also. Have massive effects on the prices. So for example, just by one of these countries, saying. You know they're running out of oil, or that's, they found a new field with massive amounts of oil. Or chances, of that happening just rumors. And comments and things like this. Can, cause the price to massively. Jump. So this is number one. At number two, you're going to be looking at opec. Opec. Agreements, or disagreements. They continuously. Have meetings. This is kind of referring, back to, looking at the top producible. Producers, of oil, how they're producing, it, uh rumors, comments made by them as well. Uh, also. All your inventories. Is the same thing or oil inventories. We're going to look at later on but it's also, the supply, of oil, supply, inputs. Your. Can also look at, oil alternatives. So if you're looking at you're looking at for example. Electric, cars, if there's an increase in electric, cars. If uh. You know more people are turning towards. Electric, cars if there's different types of. Ways of producing, energy, producing, electricity. And there's a less needs. Need for oil. Again this can have a massive effect, on, oil and if you look over the years as electric, cars are becoming, more and more popular. You can see there's. A lot still volatility. There's still up a trend. But there is a general, decline. In oil. Prices. Uh war within, regions, where. Prices, are produced. That's what oils, produce. So. Because there's a war in that region, which is producing, a lot of. A lot of oil. There's a fear of what's going to happen to that supply. Now that fear, can cause. Oil prices, to spike. We saw it in iraq. We saw it in venezuela. As well. It could that be a war it could be in economic, conditions, it could be, sanctions. It could be trade wars as well which i mentioned here. Um. We're unaware, of what's going to happen to the supply. Of oil i'm sorry it's in libya, as well by the way. That's a very recent. Development. Uh if they're already in a war, and it looks like they're going to come out of a war. And there's more certainty, of what the supply, is going to look like coming out of the country. Then again, it's going to affect the prices. A coveted, 19. And, quarantines. And economic, lockdowns, this was a big, factor.

To. The collapse. Because, there was no more planes. And tourism. No more, people were using. Less cars. Less energy. And manufacturing. Everything completely, stopped so there was. Not, a need, or should we say not such a high need. For, oil, okay so any kind of uh new rumors, or anything like that, that there's gonna be more lockdowns, it's gonna be more quarantined. That's, covered 19.. God forbid is getting worse. Uh, then again it's gonna have a massive effect, on oil we can see, in the charts coming up how exactly. There is uh such a big effect on that. So. Just wanted to give you an example. Like i stated. On. Gold slide. There is a correlation, between. Economic, uncertainty. And. Gold, so you're looking both at the u.s dollar. At the strength of the us dollar you're looking at stock markets. And you're looking at, a, general economic, condition. Now you can see. Over a year, since we saw. A hotend. Uh inflation, massively. Talks, of. An economic, recession, coming up. You can see oil really started to, increase in value, and you can see it was priced at. Just over 1. 300.. As those fish came about. At brexit, as well. We can see moved all the way up to here. Started to win back. Some. Went back uh start to drop in value here. And then against you started to increase, in value again and you can see, as, we entered the covet 19. It has reached a high which is not been reached, in. Many, many years and this is because. The u.s dollar is very weak, the stock market, is very weak and very shaky. And the economy, and market conditions, in general and sentiments, within the market. Again, is very very important you can see that is why. It has pushed it to such a high. Level. Something you should be aware of though, just because, you believe. Oil, is going to go up in value it doesn't mean there's not going to be volatility. So the market, will still have waves. Like this. Even though it is increasing. In value, okay so it's important, to make sure, that you are not, entering. You don't have these points in the market so you shouldn't just believe oil is going to go up so i should instantly, enter.

There Needs to be technical. Elements, to your analysis, as well which we're going to, look at later on. Another example. Oil prices. Again, this is exactly what i was speaking about. This is. Really at the start of coven 19.. And you can see, as, the world's economy. Started to crumble. Quarantine. Locked down. And also. A price. Was between, russia. And saudi arabia, you can see, how low, or your job they dropped from above. Almost 65. Dollars. Per barrel. And dropped below 10 dollars. Per barrel. Since then as the world's economy, started, to. Kick start again. Manufacturing. Started. Tourism, has, slightly started, people are using cars and so on and so forth. Then you can see how, the price is starting to, recover. Like i said though, there is, still volatility. So you still need to think about. Your, entry. Oil, inventories. Oil inventories, sometimes, known as stockpiles. Like i said before. Is. Basically. The statistic. Is the economic, release. In america, which is every wednesday. Normally. Uh, keep an eye on your folks calendar, in case that changes, because sometimes, it could possibly, change, normally it's every wednesday afternoon, or if you're based in europe. This is the announcement. Of how much, america, which is a big producer, of oil, yeah has pumped, into the market, so, around that time and after the time before that time. But around, that, release you should expect, a lot of volatility. Because, of course as if if there's massive, amounts. Being pumped into the market. Could, cause uh, prices, to be volatile. If there's a massive increase. Or decrease, again it can. Cause a lot of volatility. This is an example, of the last. Um. The last, uh, oil inventories, you can see. Such, what a big candlestick, here you can see the price, completely. Collapsed, it dropped massively. And then, people started to buy it again. All right so you can see, around that time how much volatility. Is going to be and why it's so important. To look at the inventory. You don't necessarily, have to be trading at that time when there's such big volatility. But to look at the inventory, to see how much is being pumped within the market. So let's, actually start looking at price action, so, you spoke about correlations. And all the different factors you need to keep an eye on when you're trading. Oil, silver gold and commodities. In germany. But, like i said that shouldn't. Necessarily. Be the only thing you're looking at it's still massively, important. To look at your indicators. And to look at price, action. As well price action is when, you're, analyzing. The price. And you're using, that to enter into the market now i'm going to use the most, recent. Uh, strategies, and price action. And indicators, that we've looked at. Because hopefully there's been traders, here, uh, seen the recent webinars.

Um. So you're, looking, at the things we've already spoken about the correlations. And what's the victim prices. And then you're looking at uh. Price action as well and we're going to look at indicators. Uh first thing i put it, on a daily chart. Here i'm looking at crude oil, so i've got it on a daily chart. When i've seen. Bullish, movements. On the daily chart like for example, here. I'm only looking to buy, i'm not looking to sell based on, this specific, price action strategy, of course you may have your own or different. Type of strategy. And when you're seeing bearish, movements, like we're seeing here so. On the daily charts, the price is decreasing, in value, i'm only looking to sell. Then once you do that. You're, turning, to. At the, 30-minute. Chart so we're switching, charts. And depending, on which side of the market, you're looking at but it's bearish or bullish. Uh, you're gonna be trading either. Looking for sales or looking for buys. Uh i'm concentrating. On the latest, period in which case i'm looking at buys, okay because we're looking at the bullish market. In which case i'm, very simply looking for breakouts, so. I'm drawing the significant. Points in the marking, so this is one. Anything which is crossing above it, i'm bi. This is another. Because i'm using the wave, highs. I'm using that, so i enter into my bias. Of course there's still volatility. So you can see here, it did drop below it so you could have exited the market, on a loss, or kept hold of it until the market, moved back into your. Favor. Either way is fine because, even if it was a loss as it crossed back up you would have just re-entered, into a buy. And, based on that movement, as you can see from the chart that would have been a profit. So as across this high. You trade them based on that level. Another area here it's trade. Another, area here and you're using the price, the major significant. Areas of the price. To trade. The buy, okay so hopefully, that, makes sense. Let's look at a similar example this time on, silver. Same scenario, i'm looking at a, daily chart first, when i seen bullish, movements. Uh sorry bearish movements, like as you can see here, i'm only looking, cell. And then when i'm seeing. Bullish, movements, like here. I'm only looking to buy. Right because again you want to be buying. When, the market is bullish and selling when the market is bearish. Based on this type of strategy. Let's uh look at the most recent, uh trends, which is uh, the. Bullish market so again i'm looking to buy. And it's the same kind of scenario, you're looking at the waves. Right so this is the major area here. It's anything above you i'm looking to buy. That's the next wave, anything above it i'm looking to buy. This is the next wave here and think about this, i'm looking to buy. It's all the way up here so if. We don't know but if it does across, that. Again it's an indication. To look to buy again, and on each trade is up to you how much you're looking to make you don't have to keep. In the trade, for, each, wave, the whole way. Or the whole trend. Overall, you could be looking to make. 10, 15 20 pips and then exit the market it's completely, down to you, as a trader. Then we're going to look at indicators. As well, so. This time i'm looking at silver. Uh i'm not looking at gold i'm looking at so because it's more volatile, so it's, maybe slightly, more harder for you. Which is why i'm looking at silver but the same applies to. Gold as well this i'm looking at indicators. Uh i've got. My. 30. Day moving average here, which is the red, i've got my 15, which is orange. And then my three. Which is the yellow, and i've got my stochastic, indicator. We've looked at these all in the past if you. Do not know what they are because we've not previously, watched, my one of my webinars, again go to youtube, type in accenture. And you'll see uh, in-depth, explanations. Of what these are. Um, like, the recent strategy, we looked at. When. The yellow and the orange is above the red. And crosses, over. Okay so we can be looking at a crossover. There's a crossover, here so you can see crosstalk. Up. In which case i'm looking to buy. Also. There was. A crossover, here to buy as well. And each occasion you can see how it's, increased in value. There's a crossover, here. To buy. And you can see again. House increased in value, this is a type of strategy, like we stated. Uh in the previous webinar can only be used on a four-hour, chart. And of course the crossovers. Need to coincide. With the stochastic. Oscillator. So this. Needs to be indicating. The buy. On each occasion, as well, and make sure it's not indicating, that it's overbought.

Also On the crude oil. Crude oil. Charts as well for our chart this sorry this time i'm looking at print oil instead. Same kind of scenario, i wanted to give you an example of how you can alter, the strategy, as well because. The movement, is not coinciding. With, the movement with the strategy. Uh, like oil, because it's more volatile. Than silver, and gold. And you can see, it's never given me an indication, pretty much. To buy. When, it's above. When the price is above. The red, when it's above the 30 minute chart, at the photo, moving average so you've got two options there you can either ignore the 30. Hour, the 30 day moving average, or you can alter it to a different. Average. So that it coincides, with the strategy. But you can see when i'm getting. My crossovers. And again, coinciding. With the stochastic, costco later that must coincide. That must not be conflicted. You can see how i'm using that to buy. Because it's above the moving average as well. And also. I must be using a price action like we spoke about, earlier, as well. And each time when you get in the crossover. It's another indication, here you can see how i'm using that to buy. Also, i've got. An example. Here. Where. I'm getting a downward, crossover, which is this red one. Which i've circled. Let's get rid of the rest so you can see it. There we go. So this one which i've got on my screen here and got to download, crossover, as you can see so normally that's an indication. To sell. But then if i go down to my stochastic, oscillator. Actually. It's crossing, up. Now if you're getting conflicted, information, which one has crossed over up and the other one looks like it's about to cross over down. It's conflicting, information, conflicting, signals, so. You uh i didn't want to steer. Away from enter and turn, into trades, where you're getting conflicted, information. So that, brings us to the end of today's webinar. What i wanted, to indicate, to everybody. Use the correlations. Some things you need to take into consideration. When analyzing, commodities. And at the same time to look at, technical, aspects, like price action. Uh, which is the price movement that when we when we analyze, the price movements we look at the highs. In the waves to enter into the buy. And the indicators. As well which is also part of technical, analysis. Uh using. All these, as part of your analysis. In order to ensure, that you are, trading. Correctly. Now, we didn't concentrate, massively, on technical, analysis, because, we concentrated. More on. The correlations. But again if you do go to our youtube page there's a lot of videos there based on strategies. Indicators. And price action. That you can look at. So if you do have any questions this is my email address here. Uh. Feel free to send me an email, i'll be more than happy to answer the questions, or if you're, looking to have a one-on-one, arrange. I'd be more than happy to assist you of course. Uh in the meantime, i'd like to wish, everybody, a pleasant, evening. Trade, safe, and trade responsibly. And hopefully, we'll, see you very soon, on our webinars, in the meantime, have a good evening. Good, night.

2020-07-31 18:06

Show Video

Other news