Archives for September 2012

It’s always nice to end the week with one more positive trade.  The EUR set up beautifully for us overnight.  When price got going, it not only blew through the Asian session low, it took out both targets 1 and 2 in quick order.  September has been a very good month and summer seems like long ago.

The EUR trade setup overnight is a favourite of mine, and one I train my students to look for each session.  When you find this setup, the rewards can be very satisfying.  This trade met our criteria to the letter and the pips followed.

Enjoy your weekend!

Let’s see what October brings…back Tuesday.

GBP sold off ahead of the UK economic news releases.  Once the news was out, it moved back up.  After the higher low, we entered long, on the opening of the next candle with a stop just below the higher low.  We are risking 16 pips for a potential reward of 58 pips…Target 2.  This meets our minimum criterion of 3:1 reward to risk.

Our first level of concern will be the Asian session high and then yesterday’s high.  Price moves through both but closes back below yesterday’s high.  We chose to lock in 30 pips for a “take profit” level and the trade is closed.  Due to this level being where breakout longs will enter, and we are not breakout traders, we protect our profits and move on.  As I said yesterday, we will take 30 pips any day.

Let’s see what opportunities tomorrow will bring us.

Good luck with your trading!

Not a lot of news overnight, but the lower highs on the GBP had us looking for the opportunity to go short.

With an affordable stop just above the plunging bearish hammer, we enter short at the opening of the next candle.  The reward to risk to our Target 2 is 4:1 easily meeting our criteria minimum of 3:1.  Price chops sideways for over an hour attempting to stay below yesterday’s low.  Once price moves convincingly toward our targets, we move our “stop loss” to a “take profit” locking in 15 pips, then 30 pips, and are subsequently closed by the market for 30 pips.

Always remember to move your stops down and lock in profits.  It’s always a nice feeling to be in a positive trade with no risk…what is also known as a “stress-free” trade.

Let’s see what tomorrow brings.

Good luck with your trading!

The Asian session range was larger than usual.  No significant news was pending during the UK session for either the EUR or GBP but ECB President Draghi was scheduled to speak later in the session.

The UK session began with some choppy sideways price action before putting in a higher low.  We enter long with a stop just below the Asian session low… giving us a reward to risk of 4:1 to our Target 2. We anticipate a run up to test the Asian session high before moving to our Target 1 which was a significant area of resistance yesterday – as price collapsed down from there.

Price reaches the Asian session high and closes above it.  The next candle is a wicky candle which takes us to President Draghi’s pending speech.  We close the trade and are happy to take the round number of 50 pips.   Do not trade in front of major news events and if you are in a trade… tighten your stops!

We are off to a good start this week.

Good luck with your trading!

Having learned a long time ago not to trade in front of the news, it always nice to capture some pips when the reversal occurs.  As long as the signals are clear – as was the case overnight with the EUR… one can capture the safer move.

The GBP news can affect the EUR as it did overnight.  The reverse is also true.  If the sentiment for the Eurozone is negative, the GBP typically is sold off too.  Last night, traders were awaiting some news before entering the market.  A very fast move to the upside was unsustainable as is evidenced by the wicky bearish candle and price not closing above our Target 1.  After an hour of consolidation and lower highs, a trade short is taken.  Price falls, makes a big move toward the Asian session low and then reverses.  Having been up 60 pips, we place our take profit at plus 50 pips and we are closed.

It’s been a tricky week to find trades, but it has also been a rewarding week when we did.

Let’s see what next week brings us.

Back Tuesday.

Enjoy your weekend!

Huge moves in the Asian session across the majors, left us without any high probability trade setups that would meet our reward to risk ratio.

It’s a little unusual but the Asian session had huge moves yesterday.  When this occurs, it signals to me to take the session off.  I only look for high probability trades that meet my trading criteria and reward to risk ratio.  I pass on anything else.  Never trade for the sake of trading.  Follow your rules and keep it simple!  There may not be high probability trade setups each session, but when they appear, we will take advantage of them and we are rewarded.

Let’s see what tomorrow brings us.

Best of trading!