Hey hey: what's up my friends, so welcome back to this month's forex and stocks forecast. This is a video right which i published each month, sharing with you, some of the best trading opportunities that i'm seeing in the fx and the stock market, so i'll break down to you right step by step, my top process to why i'm looking to trade, certain Markets how i'm looking to enter the trade, manage my trade exits and much more so if you always want to dive deep into the price section analysis of the markets, how i look at markets right, then this type of video is pretty much your thing. So, let's get started so the first pair that i want to bring your attention to is euro dollar. So if you look at this market, i just zoom out a little bit right.

You can see that this market generally it's in a long-term uptrend. It recently broke above this area of resistance as you've seen around the 1192 area and it broke out higher. So at this point i am bullish on euro dollar, but the question is: where do you get on board the trade? So here's the thing just because you're bullish on a pair just because a market is in an uptrend doesn't mean you buy immediately, because when you want to set proper stop-loss right, it might not. You know, have a proper levels that you can lead again.

So let me explain so, for example, if you look at euro dollar right now and you're bullish on this and you buy at this price point, where do you think it's a logical place to set your stop loss? Well, some of you might be thinking - oh i'll, just put it below the previous stay low somewhere here, maybe somewhere here or even somewhere here, and if you think about this, does this make sense? In my opinion? No because the market could make a pullback and then those levels where you put your stop-loss right, pretty much will get you stopped out. So if you want to set a proper stop-loss on euro dollar on this daily time frame, then you want to have a frame of reference, a reference where you can use it to set your stop-loss right and where the market would have difficulty breaking or rather moving Against you so, for example, a useful frame of reference would be this previous resistance that could become support. You know that this is an area where potential buying pressure could come in. So if your stop-loss would be to be somewhere about here right, then you can see that there's this barrier, that the market has to go through right before it reaches your stop-loss.

But now again, of course, if you were to buy at this price point right here - and you set your stop-loss over here - you can see that your your stop-loss is going to be pretty wide about 200 plus 300 pips, so might not be comfortable. For most of you, so what can you do to improve your risk to reward on this trade? So what you can do is something that i have said over and over again let the market come to you. Let it come to you, don't chase the market right. Let the market come to your terms on your grounds right.

That is, you know where you will shine. So, for example, this over here right is where you could possibly look for buying opportunities. Let the market come to you into this previous resistance that could become support. Okay, so this time frame or the eight hour time frame right, i leave it to you so, for example, let's say the market comes down, lower it dips and pulls back, and it forms a bullish reversal.

Candlestick pattern like a hammer like this. Okay. At this point, you can tell yourself that okay market is in an uptrend it's at this area of value, where previous resistance could become support, and now you have this bullish hammer telling you that you know the buyers are stepping in to push the price higher. So there's a good chance: this market could reverse higher, so you go along on the next candle open.

That's one one way about it and this time, when your stop-loss, when you set your stop-loss, you can just set it a distance below this low somewhere about here, and you see that the size of your stop-loss is now dramatically reduced right. Your stop-loss could possibly now be in the realm of, i would say, 100-plus pips, compared to the earlier uh size of your stop-loss, which is around from here all the way down to this area over here. So you can see that by letting the market come to you, you reduce the size of your stop-loss and you improve your overall risk to reward on the trade okay. So this is euro dollar uh.

This is one pair that i would say, is worth keeping a lookout for this coming uh this coming week or the next few weeks, moving on next one pound against new zealand. So again, if you look at a big picture pound, new zealand is showing a signs of weakness. If i just zoom out a little bit, you can see that recently this market has broke below this area of support and this upward trend line over here right. So two multiple confluence area area of support, plus the upward trend line you know - got broken down, so there's always a possibility where this could be a false breakout where the market could, you know, end up, reversing up higher and then reverse from there.

That could be a possibility, but until the market proves me wrong, i'm just going to trade. What i see not what i think i think this could happen, but what i'm seeing right now is that the market right has not shown signs of a reversal that he wants to hate higher okay. So i'm going to trade. What i see not what i think so this is the area of support that i've drawn previously okay, so this is also have the upward trend line, confluence area.

So to look for selling opportunities, i would say the lower time frame, like the eight hour time frame, would be a good reference in this case, because you can better analyze the price action of the markets and we'll look for selling opportunities. It's at this level of this area over here around the 192 area, so the market could pull back re-test into this area of resistance, reverse down lower strongly right could be a bearish engulfing pattern or even a shooting star looking to sell on the next candle open. Stop loss 180 are above this highs first possible target just before this swing low over here. So you can capture this one swing over here from here down to here.

Okay, so this is my my game plan for pound new zealand. Let's have a look at one. More pair okay dollar against the south african reign, so i made a mistake previously, where i call this the african random. You know people get offended and it's my bet, because i just wasn't uh attentive enough.

This is dollar against the south african rent, and one thing to point out is that the setups that i've just shared with you right so far, it's all trending markets and you might be wondering hey rayna. Why is this all trending markets that you're sharing? Because hey the trend is your friend: i find that this type of market conditions right really put the odds in your favor, because you can, you know: uh increase your winning rate because you're trading with the trend. So i would say this: if you ask me: are the best trading opportunities out there, simply markets which are already trending uh, making a pullback right looking to buy at that area of value and then to capture the nic swing up higher vice versa for downtrend? Okay? So same thing for this dollar against this south african rent market. If you just look at this uh big picture analysis, i zoom out a little bit.

You can see this market had this series of lower highs which came into support. Then it broke down recently over here. So at this point right, the market is, you know, heading down lower consistently, and what i'm seeing right now is that this downtrend is still pretty strong. If you just pull out the 20ma, you can see that the price has been consistently below it right since it broke down below support right consistently below the 20ma 20m 20b.

So what i'm seeing right now is a potential trend, continuation trade towards the downside. So why do i see that it's because from here there's another tinier descending triangle over here right series of lower high lower high coming into this area of support? So it might not be obvious here, but if you go down to a lower timeframe, it's going to be much clearer, for example, the eight hour or four hour time frame. So if you look at the eight hour frame, we see this lower high lower high into support. So my take is that no uh weakness is likely to continue lower and i'm looking to short this market.

So the way to go about doing this is that if you go back to the daily time frame, pull out the 20ma right - and i just zoom out a little bit - you can see that this over here this 15.44 area might be an area of resistance right Around the 20ma, and also previously it was a respected level over here - has resisted. So there's a good chance. This level right could be a resistance area where buyers would have difficulty breaking out higher. So the game plan for this is again trading with the trend.

Looking to sell the breakdown of this swing low if the market can break below this swing low, looking to shot this market - and this is the swing height - i'm going to reference against to set my stop loss right, so 180 are about above it somewhere about here. So in this case, you can see that again, my stop-loss is at a a level which i'm comfortable with because for the market to reach this level of stop-loss for this area, it has to break a few things. He has to number one break. This 20 m over here number two.

He has to break this red line over here, which you saw earlier. Uh could possibly access resistance, so i'm making the market work hard right to take my money. If you want to take my money, i make sure you work hard for it, and that should be the mindset you adopt right. You're gon na set your level, or rather you're, gon na set your stop-loss right at a level where the market needs to crawl struggle and reach and take your money.

That is where your stop-loss should be, and this is the same for the dollar against this south african rent setup, which i've just shared with you, okay and oh, by the way for those of you who are unaware right coming this 9th in and 20 december, i'm Hosting traders fest it's a two-day free online trading event, where i've invited four expert traders right to share with you uh. They are trading strategies and techniques right their work in today's market right and you know to share it with you and hopefully improve your trading results. So this event is completely free. I'll, put the link below this details.

I mean put the link below this video for full details. You can register for it. It's free right and - and you know just you know, be part of it. Okay, so if you're more details i'll keep it towards the end of this video, but for now i want to move on and talk about the stock markets, stock markets, okay, so let's move on and first and foremost, get a bird eyes view right of.

What's going on in the stock market right now, so i'm just going to look at the s p. 500. This is possibly right, one of the most followed stock market index in the world. So if you just zoom out again the charts smp 500, you can see that this is still a market right where the buyers are.

You know they're in control, it's in a long-term uptrend, there's no reason to to short this market all right or think that the market is going to collapse, we're in a recession. It's a bear market. No, no! None of that right again, trade. What you see not what you think right or what other people think just trade? What you see the price is what pace you buy something at ten dollars and sell it at 15.

You make a profit of five dollars, regardless of whether people think you're an idiot or whether there's a bad decision, you're still to make a profit, because the price is what pays okay. So i want you to look at this chart and ask yourself touch your heart. Is this market in an uptrend, downtrend or range, and if you have you know normal eyesight, i'm pretty sure you'll say that this market is in an uptrend and since the market is in an uptrend, you want to continue right to look to buy stocks right. When there's a opportunity that presents itself but first let me just share with you a little bit more of an in-depth analysis to this stock market.

So yes, i agree that this stock market index it's in an uptrend. But if you look at the price section over the last few days or last few weeks, all right volatility in the market right is shrinking, shrinking right and getting smaller, and it's pretty much at this area of this swing high over here. So there are two way right: this could uh play out and it's gon na sound common sensical, but i'm just gon na say it anyway. Right first and foremost, the one is that the market could heat up higher right and number two.

It could possibly retrace down lower into this area of support, and the third thing is just pretty much just range and go nowhere. Okay, so so with this in mind, right so there's always the possibility that you know this is now at the highs, or rather the overbought area market. Could you know, swing down lower, so you want to be prepared for this. It doesn't mean that from here market swing now market is in a downtrend.

No, it's just making a pullback a correction and the overall uptrend is still intact. But you want to be aware right now that price right are temporarily on the high side, because is that you know at this swing high over here. So if you want to trade stocks right you're going to buy stocks, your stop-loss right, you don't want to have it to be too tight, because if it's too tight and the market makes a correction down into this next area of support, this i'll say it's a Medium-Term area of support your tight stop-loss on the stocks that you're trading will likely get triggered. So if you trade stocks right make sure the buffer, or rather the top loss that you have on the stocks that you trade uh large enough right to possibly withstand this pullback if it occurs.

Okay, so just something for you to to think about. So let me just share with you a couple of setups that i'm looking in the stock markets right now, so first one cmg chipotle mexican grill. My wife tells me this is a fantastic food over here, but unfortunately, due to kovi 19, i have no chance to try yet so anyway, chipotle just zoom out a chance again. This is what i like to do.

Look at this market right. You can see that overall, it's still in a uptrend we're looking for buying opportunities, right market uptrend, look for buying opportunities, so i'm just going to zoom in inside and let you see the price section of this market. So what i'm seeing over here is this market? Possibly for me, this double bottom over here, even though it's an uptrend coming into this area of resistance and what i'm seeing i'm starting to see. You know lower highs into this resistance right, lower high lower high and who knows possibly another pullback lower high, and it could possibly break out higher over here at this breakout of this resistance.

So my plan right is for this market to make one final pullback a weak pullback just to form another sorry not lower high higher lower. I made them. I said it wrongly: it forms a series of higher low higher low into resistance. So i'm looking forward to make another higher low before it breaks out of this area of resistance, and if it does happen right i'll be looking to buy the breakout when the price breaks and close above resistance.

As for stop loss right, you can remember earlier. I said that on the s p 500: if the market makes a deep pullback, you would could possibly get stopped out uh on the pullback. If your stop loss is too tight. So i'm going to reference this level over here this area of support to set my stop-loss.

So there are a few ways to do it right. The simple way is just to use a 30 trailing stop-loss. So, based on my own back testing, i find that a 30 trailing stop loss when trading the uh large cap stocks right it's enough buffer to kind of withstand the short-term pullbacks in the market. So if you're going to go with a 30 trailing stop losses, which is quite straightforward, so let's say market breaks out higher at the thousand dollar.

1, 400 price point: you go with a 30, trailing stop loss or you just take thousand 400 multiplied by 0.3 and you get x. I don't know what's x right now, because i don't have my calculator with me, but that would be my trilling stop loss. That would be my stop loss. Okay, so if the market goes up to, let's say two thousand dollars: okay, i'll just adopt my trailing, stop loss just multiply by 0.3.

Sorry this should be 0.7, my bit multiplied by 0.7 right and it will give me a value of for in this case, will be a thousand four hundred dollars. So my trailing stop loss will be a thousand four hundred dollars. So this is what we mean by having a 30 trailing stop loss. So this is quite a wide trailing stop-loss, because uh for this uh particular trade management is that you're trying to capture the uh longer-term trend.

So if you are into short-term trading uh swing trading, then this approach won't work for you, i'm just sharing with you the top process to why i want to you know: use a wider trailing stop loss because, as you've seen earlier on, the uh s p 500. We're on the high side, so if he makes a pullback right and i go with this - trailing stop-loss approach - i should still be in this trader instead of getting stopped out. I hope that makes sense. Okay and another example over here is id ex laboratories.

So you can see that over here, just zoom out your chance. This market is still in an uptrend and again in an uptrend you're, going to look for buying opportunities and again, once again, you can look to look to buy the breakout of this uh there's. Possibly this highs over here, okay, so the market could continue inching up. Higher breakout break and close above resistance.

Look to buy uh you can go with a 30, trailing stop loss as what i've mentioned earlier. If not, you can reference this uh swing low over here or even this swing low over here and have your stop loss 180 below it. This way, right even let's, say the s p 500, which i shared previously here, okay over here, okay, we saw that if the market makes a pullback say it pulls back to us uh, could we pull back towards this area or possibly over here right? We have no idea where it's going to pull back to here or this one here, but whichever the case is right, if you have a wider stop-loss or there's a good chance that you you could, you know, still remain in the trade instead of getting stopped out On the pullback and, of course, if the smp just consolidates or it breaks out higher, then you you know rip uh, hopefully like rip some gains towards the upside okay. So that's my top process too.

You know uh those two of cup, those two couple of setups, which i've just shared with you and before you go right, i just want to you know, walk you through traders fast. So this is the uh page over here to register. It's free just go down to trading with radio.com, slash traders fast. Okay, you can see that these are the four speakers that will be speaking uh on the 19th and 20 december if you're on a different time zone whatsoever.

If they know the clocks in london, new york, singapore, australia or you can just google, you know time zone converter and you know find out uh what it is in your time zone. So we have, you, know people who are day trader, fx trader people who talk trading, psychology, stock trader and a lot more. So i'm pretty sure there will be something for you on trader's, fest, uh event. Okay, so with that said, right just go down to the website: uh trading with radio dot com, slash traders fast register, it's free right and i'll, see you at the event itself.

So with that's it. I wish you good luck and good trading. I will talk to you soon.