Very difficult to find a trade setup to take overnight. The EUR has been a little more active than the GBP this week but I could not find a safe entry. Some sessions the trade setups are simply not there and it’s better to avoid trading.
The EUR dropped very quickly in the US session. I never chase trades as it compromises the Reward to Risk ratio.
September will bring more volume back into the markets
I will be travelling tomorrow.
See you Tuesday.
Enjoy your weekend.
A very quiet UK session until the US economic news approached giving a little life to the markets. This GBP trade setup looked good following 4 candles with long lower wicks, (implying a bottoming) a bullish candle brought price off the session low pushing it back into the Asian range to close. An entry long is taken with an intial stop just below the swing low, with a Reward to Risk of greater than 3:1 ( to our targets) at the opening of the next candle. Price consolidated moving between the middle and top of the Asian session range before finally breaking above, then retesting the Asian session high once again. By moving the stop loss up, risk is removed from the trade, and profits and protected. The trade is closed at the US open in advance of the news. Always be aware of major news releases and tighten stops or take your profits.
Let’s hope for a little more action tonight.
I have an appointment tomorrow right after the UK session closes, so my posting may be up later in the day.
Good trading!
The EUR offered up a very nice trade and this could also be confirmed by looking at the CHF. I prefer to trade the EUR as it typically moves more than the CHF. When lookiing at the EUR, it’s always a good idea to see if the CHF is moving inversely.
Please see the chart for the explanation of the trade.
The majors are getting some life back in them.
It will be a short week for me as I will be travelling on Friday.
Let’s see how we do for the balance of the week…
Great trading everyone.
The EUR set up nicely overnight. It is very important to move stops down as reversals can happen quickly. This trade looked like it had more downside to it, but it didn’t…not a bad trade for this holiday period. Always be willing to accept what the market will give you and don’t be greedy.
Enjoy your weekend.
I’ll be back Tuesday.
AUD trade looked good overnight as did the CAD. The AUD moved up as the UK session got underway and abruptly reversed. An entry is found on the second bearish candle – meeting our reward to risk ratio of 3:1. This is an extremely important first element to any trade! Then, once you can get the risk out of the trade altogether and lock in some profits – do so. When price consolidates or reaches support or resistance levels, move your stops down and keep moving them down to lock in more profits. The market can reverse in a blink, so always use a stop and always get the risk out of your trades as soon as possible by placing your stop loss/take profit just above/below structure.
The target levels that I use are extremely powerful and rarely will price exceed Target 2. After Target 2 is reached the market is much more likely to reverse, than it is to continue further past the target. The large institutions are using very similiar levels and hence the reversal. On rare days, Target 2 will be blown through, but this is usually event driven. I watch the candles for signs that the move is exhausted at such times, and always lock in the profits.
Let’s see how the week wraps up…
Low volumes and holidays are making it difficult to find good trade setups in the majors. The AUD looked best with a low risk entry, but did not produce many pips. September will bring volume back to the markets so be patient and careful in the meantime.
Let’s see what tomorrow brings…
