Gonçalo Moreira, CMT
Independent Analyst
Summary
A historical approach to trends, from Dow to Elliott, Gartley and Gann. None of these great contributors subscribed to the adage "The Trend is Your Friend". Moreover, their legacy releases us from that idea. Whose friend is the Trend? A Historical approach to trends Abstract: Buy low and sell high? Buy high and sell even higher? Trend is an abstraction, almost irrelevant... What is the legacy of the forefathers of TA? Charles Dow: Some of its basic tenets: - The primary trend is inviolate - The averages discount everything - The theory is not infallible - The averages confirm each other - Volume confirms the trend Some of its basic tenets: - The primary trend is inviolate - The averages discount everything - The theory is not infallible - The averages confirm each other - Volume confirms the trend Ralph Nelson Elliott Rules & Guidelines The sequence is constant across all timeframes Time as less Important that form Actionary movements are the most profitable The market spends more time in corrective mode than in impulsive mode Alternation and equality are pan of the market structure and Fibonacci... The sequence The ratios H.M. Gartiey 'The best investment opportunity" Occurs with a 1/3 to 2/3 reversal The "sweet spot' is one of low risk to high, reward relationship Much better that a H&Ss Offers strong reasons to stop and target placements Volume confirms the pattern Gann: Added time dimension Multiple confluences Finding turning points Conclusion: Trend Trading strategies are based on the assumption that markets do trend, but its purpose is to find key turning points. Two choices become very good at finding turning points or develop a method where entries are of second importance. Related content: Where Is The Dow Going? How To Use Gann Indicators Elliot Wave principle Author: Gonçalo MoreiraLatest Live Videos
Editors’ Picks
AUD/USD now targets the 0.7150 zone
AUD/USD has rapidly left behind Tuesday’s pullback, advancing sharply to three-year highs past the 0.7100 barrier on Wednesday. The pair’s strong performance follows investors’ assessment of the RBA’s hawkish message and the likelihood of further tightening down the road.
EUR/USD faces next resistance near 1.1930
EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.
Gold holds on to higher ground ahead of the next catalyst
Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.
UNI faces resistance at 20-day EMA following BlackRock's purchase and launch of BUIDL fund on Uniswap
Decentralized exchange Uniswap (UNI) announced on Wednesday that it has integrated asset manager BlackRock's tokenized Treasury product on its trading platform via a partnership with tokenization firm Securitize.
US jobs data surprises to the upside, boosts stocks but pushes back Fed rate cut expectations
This was an unusual payrolls report for two reasons. Firstly, because it was released on Wednesday, and secondly, because it included the 2025 revisions alongside the January NFP figure.
Here is what you need to know on Thursday, February 12:
The United States (US) released stronger-than-expected US Nonfarm Payrolls report for January, adding 130K jobs in quite an auspicious start to the year, while the Unemployment Rate ticked lower to 4.3%, and Average Hourly Earnings held steady at 3.7% over the last twelve months.