• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On April 26, according to the Wall Street Journal, in order to simplify the negotiations on reciprocal tariffs, US negotiating officials plan to use a new framework developed by the Office of the United States Trade Representative (USTR), which lists major categories of negotiations, such as tariffs and quotas, non-tariff trade barriers, digital trade, product origin principles, economic security and other commercial issues. In these categories, US officials will put forward specific requirements for individual countries, but people familiar with the matter emphasized that this document may also be adjusted at any time. People familiar with the matter said that the United States initial plan is to negotiate with 18 major trading partners in turn over the next two months. The initial plan is to alternately participate in the talks with six countries per week for three weeks (six countries in the first week, another six countries in the second week, and another six countries in the third week) until the deadline of July 8. If US President Trump does not extend the 90-day suspension period he set by then, those countries that cannot reach an agreement will begin to face reciprocal tariffs.On April 26, after the United States announced additional tariffs on goods from many countries, Peruvian business people expressed concerns that the US governments extreme measures would disrupt the global trade order and may even trigger a global economic recession. Alvaro Barrenechea Chavez, vice president of the Peruvian-Chinese Chamber of Commerce, said that the negative impact of the US tariff policy has begun to emerge and hoped that the US government would rethink. Recognizing the importance of countries working together to promote development, I think this is the best way to become a true "world citizen."Market news: Musks xAI company plans to raise about US$20 billion in a financing round.Conflict situation: 1. Ukrainian top commander: Russia tried to use air strikes as a cover to increase ground attacks, but was repelled by Ukraine. 2. Ukrainian Air Force: Russia launched more than 103 drones in the night attack on Ukraine. 3. Local officials said Ukraine launched an attack in the Belgorod region of Russia, killing two people. 4. The local governor said that Russia launched an attack on the Dnipropetrovsk region of Ukraine, killing one person and injuring eight people. Peace talks: 1. Trump: ① The situation between Russia and Ukraine is gradually becoming clear, and they are "very close" to reaching an agreement. ② Ukraine is unlikely to join NATO. ③ Ukraine has not yet signed the rare earth agreement and hopes that the agreement can be signed immediately. ④ It is foreseeable that the United States will conduct commercial cooperation with Ukraine and Russia after reaching an agreement. 2. Russian Foreign Minister: Russia is "ready to reach an agreement on Ukraine." 3. Russian Presidential Assistant Ushakov: Russia and the United States will continue to maintain active dialogue. 4. Russian Presidential Assistant: Putin discussed the possibility of resuming direct negotiations between Russia and Ukraine with the US envoy. 5. The differences between the United States, Europe and Ukraine are clear. The documents show that European countries and Ukraine have raised objections to some of the US proposals to end the Russia-Ukraine conflict. 6. Market news: As part of the peace agreement, the United States asked Russian President Putin to abandon the demilitarization requirement. Other situations: 1. President of Hungarys OTP Bank: We hope to return to all business areas in Russia after the (Russia-Ukraine) conflict ends. 2. Ukrainian President Zelensky: US ground forces are not necessary for Ukraine. 3. Trump said Crimea will remain in Russia, Zelensky: Never recognize it. Agreeing with Trumps view, Crimea cannot be recovered by force. 4. NATO Secretary-General Rutte met with Trump and senior US officials to discuss defense spending, NATO summit, and the Ukrainian conflict.Rising global trade risks, overall policy uncertainty and the sustainability of U.S. debt top the list of potential risks to the U.S. financial system, according to the Federal Reserves latest financial stability report released on Friday. This is the first time the Fed has conducted a semi-annual survey on financial risks since Trump returned to the White House. 73% of respondents said that global trade risks are their biggest concern, more than double the proportion reported in November. Half of the respondents believe that overall policy uncertainty is the most worrying issue, an increase from the same period last year. The survey also found that issues related to recent market turmoil have received more attention, with 27% of respondents worried about the functioning of the U.S. Treasury market, up from 17% last fall. Foreign withdrawals from U.S. assets and the value of the dollar have also risen on the list of concerns.

Best Time To Trade When Double Bottoms Coming

Eden

Oct 25, 2021 14:08

内1.png


What is a Double Bottom?

A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter "W". The twice-touched low is considered a support level.


The double bottom chart pattern is found at the end of a downtrend and resembles the letter "W"(see chart below). 


Price falls to a new low and then rallies slightly higher before returning to the new low. Unable to push price to a new lower low to continue the downtrend, sellers give up and price bounces sharply from this area.The bullish confirmation is specified by a break in the key price level situated at the high point between the ‘bottoms’ resistance level (neckline).


W底英文1.png


Similarly, the double top pattern reciprocates the double bottom pattern signaling a bearish reversal. Instead of the confirmation being shown at a break in the key resistance level, the double top occurs at the key support lows between the two high points. The double bottom and double top patterns are powerful technical tools used by traders in major financial markets including forex.


The double bottom is frequently used in the forex/gold and equity markets as buy/bullish signals. 


For example

1. Gold

The gold price trend in the first half of this year perfectly presented the  double bottom pattern.

W底英文2.png

As shown in the figure, since January 2021, the price of gold has continued to fall.It fell to a new low (point A) near $1,67.75 in March, then rebounded slightly from the low point, and then fell back to a level close to the last low of $1,699.75 (point B).


This example shows the neckline break confirmation entry signal whereby the price closes above the neckline which will then indicate a long entry.The highlighted candle in the image above clearly closes above the neckline after some resistance, indicating a stronger push by bulls to push the price up.


As shown in the figure below, after breaking through $1,800 per ounce in April (C point), gold has risen all the way. In June, the price of gold regained $1,900.

图4.png


2. USD/SGD

As shown in the figure below, observing the USD/SGD price trend weekly chart, you can see that the bottom of W has also been formed.

图5.png


Investors can observe the USD/SGD price trend in the market outlook and judge what happens to the price after the end of “W”.


3. Gas


As shown in the figure below, observe the weekly chart of natural gas price trends, and the“ W” will be formed around May 2020.


The first price low was at point A, around $1.58, then the price rebounded to point B, at $2.06, and then again fell back to point C near the last low of $1.58.


After the price successfully broke the neckline (point B) at $2.06, the price of natural gas continue to rise.

图6.png


How to identify a double bottom pattern?

1. Identify the two distinct bottoms of similar width and height.

2. Distance between bottoms should not be too small - time frame dependent.

3. Confirm neckline/resistance price level.

4. Use other technical indicators to support double bottom bullish signal such as moving averages and oscillators.

5. Be wary of trading against strong trends.


It is important to note that trading against a strong downward trend should be approached with caution even with a double bottom formation. Convincing supporting factors should be aligned and confirmed before entering the market. Even with these factors, proper risk management is essential in any trade to avoid excessive losses.