Understandings Forex Pip and Calculating the Values

A pip is the smallest movement that is possible in the price of one currency against and it is vital to be able to calculate pip values quickly and easily as it is the movement in prices which results in your profit or loss when trading. A pip is normally, but not always, 0.0001 or 0.01%. In other words, if a currency moves from a price of 1.7650 to 1.7655 it is said to move 5 pips.Consider a quote of GBP/USD is 1.9730. This means that 1 UK Pound is worth 1.9730 US Dollars. A standard InterBank lot size is 100,000 and which means that 100,000 UK Pounds are worth 197,300 US Dollars. If the market moves 1 pip so that GBP/USD is 1.9731 then 100,000 UK Pounds will now be worth 197,310 US Dollars - a rise of $10.Now let’s turn our attention to what happens when the US Dollar is the base currency and consider a quote of USD/GBP = 0.6439. Here 1 US Dollar is worth 0.6439 UK Pounds and 100,000 US Dollars are worth 64,390 UK Pounds.If the price moves up 1 pip then USD/GBP = 0.6440 and 1 US Dollar is worth 0.6440 UK Pounds and 100,000 US Dollars is worth 64,400 UK Pounds. In this case a movement of 1 pip represents a value of 10 UK Pounds which, in US Dollars, gives a pip value of 15.53 US Dollars (10 ? 0.6440). For a standard trading lot with the US Dollar as the quote or counter currency a pip has a value of $10 but, when the US Dollar is the base currency, the pip value will vary with the market price.  
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Forex Signals – EURUSD Hurricane Proof?

Recap: We didn’t open any new trades on Friday, as indicated, but our bearish calls were right as the pair continued to drop underneath it’s falling resistance line (connect the highs of the 17th, 22nd and 25th).

Hurricane Sandy has shut down stock markets on the East Coast of the United States today, slowing down the markets, but we are still bearish on this pair as it has made a series of lower lows and lower highs (downtrend). As long as price stays beneath our intraday resistance we will stay bearish – if price breaks our support then we will open a short.

Note: US stock markets may shut down tomorrow as well; bond markets have already stated they will be closed tomorrow.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousUSD Personal Consumption Expenditure Core (YoY) (SEP)EUR German Consumer Price Index (YoY) (OCT P)EUR German Consumer Price Index – EU Harmonised (YoY) (OCT P)*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: We are looking to get short on a support break today, with targets at 80 pips profit, SL at 50 pips.

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Forex Signals – EURUSD Movement, Finally

 

Sorry for any confusion! Our trades from Wednesday’s signals were triggered yesterday but there was little movement on them for the majority of the day and, hence, the lack of the update yesterday. We did post in the comments of yesterday’s signal that there had been little movement and no signal as well.

Recap: Our short from Wednesday’s signal was triggered on the 15:59 support break at 1.2958. That short stayed open and, after seemingly going nowhere for most of yesterday, has just hit our full TP for 80 pips profit.

The bottom yellow line on our chart today is long term, intraday support started last month and the break below represents a new potential downtrend on the longer-term trend. Needless to say we are very bearish after the break and see 1.28 and 1.27 as the next major targets.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousUSD Change in Non-farm Payrolls (OCT)*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: With our targets just hit on our last EU trade and the lack of a close S/R line to trade off of we will remain flat on this pair going into the weekend and look to pick up our swing trades again on Monday.

We are bearish after the intraday support break and if we were trading this pair today we would be looking for reasons to get short.

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Forex Signals – EURUSD 1.3140 Next Target

Recap: No trades were taken yesterday as we remained on the sidelines, as promised, through the resistance break. Our rationale for not trading was that we were concerned that, given the distance to the resistance line at the time of yesterday’s signal, there would not be enough momentum left for a *pop* above resistance after the break.

That was the case for the first 12 hours after the break, at least, but over the past 8 hours we have seen a strong bullish surge that would have put the trade 30 pips in the profit.

We are short-term bullish on the pair after the resistance break and with plenty of room to run above 1.30 (1.3140 is next solid resistance) our preference is to look for reasons to get long for the time being.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousThere are no events scheduled.*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: If a falling resistance forms and breaks we will get long, as is our preference, but there is also an aggressive rising support forming on the 4h charts and we will look to get short on a support break. For either direction our TP is 80 pips, SL is 50 pips.

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D20P FOREX SIGNAL 02 NOV 2012 released 01.24 GMT

D20P SELL A GBP/USD 1.6119

take profit 1.6099

stoploss 1.6149

DAILY20PIP.COM ADVICE : SIDEWAYS MARKET AHEAD

SIGNAL VALID FROM 6.00 GMT - 18.00 GMT

 

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Forex Signals – EURUSD Bear Second Break

Recap: Our short was triggered on the 15:21 support break at 1.2950, but we closed it out at 1.2957 for a 7 pip loss when the entry candle closed above our entry (false break). Another support break did occur at 1.2956 and jumped 30 pips into the profit, but we passed on that short as we don’t take a second break unless we state we will in our daily analysis.

The weekend is fast approaching and, after the drop yesterday, we are short-term bearish on the pair. We will stay bearish as long as the falling resistance (top blue line) stays intact but since the resistance is more than 50 pips away it probably won’t produce the *pop* we look for in our break trades.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousUSD Gross Domestic Product (Annualized) (3Q A)USD Gross Domestic Product Price Index (3Q A)USD U. of Michigan Confidence (OCT F)*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: We won’t take any new trades in this pair before the weekend (for the reasons given above), but we are bearish and aggressive traders could look to get short on a resistance bounce (proximity alert).

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Forex Signals – EURUSD Slow Moving

Recap: It took awhile but we are finally seeing some price action with these slow markets! Hurricane Sandy and end of October seem to be doing a great job of slowing down the markets and US stock and bond markets will remain closed today due to the hurricane.

Our rising support held firm yesterday so our short was not triggered, though there were plenty of bounce opportunities if you were trading / scalping longs off the proximity alerts.

The pair is still within it’s consolidation wedge between the rising support and intraday falling resistance (see blue lines above).

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousJPY Bank of Japan Rate Decision (OCT 30)EUR German Unemployment Change (OCT)EUR German Unemployment Rate (OCT)*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.

Trading Idea: We are still bearish on the pair and after the 70 pip rise we’ve already seen today we aren’t sure the pair has enough *pop* if we see a break above resistance so we will remain flat for today and look to re-enter/re-evaluate tomorrow.

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D20P FOREX SIGNAL 02 OCT 2012 released 01.01 GMT

D20P SELL A GBP/USD 1.6116

take profit 1.6096

stoploss 1.6146

DAILY20PIP.COM ADVICE : SIDEWAYS MARKET AHEAD

SIGNAL VALID FROM 6.00 GMT - 18.00 GMT

 

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Forex Signals – EURUSD Wedge

Recap: No resistance breaks yesterday means no trade was taken. After yesterday’s signal the pair spent the next 20 hours slowly consolidating upward. This upward consolidation has produced a nice support line on the 4h charts and we will look to take advantage by getting short on a support break today.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousEUR German Unemployment Change (SEP)GBP Gross Domestic Product (QoQ) (2Q F)GBP Gross Domestic Product (YoY) (2Q F)USD Gross Domestic Product (Annualized) (2Q T)USD Gross Domestic Product Price Index (2Q T)USD Durable Goods Orders (AUG)*To see a more extensive list of news events (not just those we consider important), visit our forex calendar.

Trading Idea: We will look to get short on a support break today with targets at 80 pips profit. We will also get long on a resistance break with the same targets, but we will be cautious close on a false break and move our SL early and often.

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Forex Signals – EURUSD Resistance Break

PRO Users: We are going to roll out the BETA false break email alerts this weekend. We will send out a separate email to let you know how to set them up. Have a good weekend!

Recap: We were whipped out of two positions yesterday in EU: first our short was triggered on the 9:20 support break at 1.2862. That short got over 30 pips into the profit before turning upward and hitting our tightened SL for a 30 pip loss. Then our long got triggered at 1.2917 but that entry candle closed at 1.2910 for a 7 pip loss (false break).

We are short-term bullish on the pair after the resistance break, seeing another challenge of 1.32 next week, but we’ll have to see how the markets open on Monday.

Today’s Important News Events:

DateTime (UTC)EventForecastPreviousUSD Personal Consumption Expenditure Core (YoY) (AUG)*To see a more extensive list of news events (not just those we consider important), visit our forex calendar.

Trading Idea: As mentioned above we are short-term bullish now but without a solid falling resistance to enter off of we will stay flat before the looming weekend. Aggressive traders could look to get long on a dip/boumce/proximity alert to rising support with targets to 1.30 before the weekend.

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