Archives for October 2012

It appears that the EUR will be making headlines this week, but the AUD set up nicely for us overnight.  After  initially moving down as the UK session got underway, then consolidating, it retraced upward…forming a lower high with wicky candles as it ran out of upside momentum.

We entered short with a stop just above the lower high, with a reward to risk ratio of better than 4:1.  After zipping through the Asian session low and barely missing our Target 1 (due to spread) – we tighten our “take profit” and exit for a very nice profit.  My students would recognize that after the candle that touched Target 1, price had an 80% chance of retracing upward.  This is not due to it touching Target 1, but due to an advanced technique that also tips us off as to when to tighten our “take profits”.

Excellent start to begin the trading week.

I will be travelling on Friday, so it will be a short week for me.

Good luck with your trading!

The EUR made it to both our targets today, but without us.  There was a lot of news pending for the GBP, EUR and USD overnight.  Price chopped back and forth in advance of it and then reacted positively with the EUR making it to and beyond the 1.3000 level.  Expect this level to be tested and retested as it is a major psychological level.

Although the EUR appeared to be making higher lows as the UK session progressed, I chose to stay out of the chop.  Once the news was out of the way, the EUR had climbed significantly and our minimum 3:1 reward to risk was not to be found.  If the news had been perceived negatively by the market, the drop could have been just as significant.

Always be very cautious of trading before major economic news releases and be especially cautious of trading in advance of an accumulation of major economic news releases – like today.

Tomorrow is Non-Farm Payroll Friday in the U.S. and the market is usually pretty flat in advance of the release.  I don’t trade it….so I’ll be back Tuesday.

Enjoy your weekend!

A little quieter overnight with no significant EUR economic news.  After another quiet Asian session, thanks in part to China being on holidays all week, a favourite pattern emerged as the UK traders came on.  The European traders had taken the EUR up starting their session and the UK traders took it down – through the Asian low then snapped it back up after luring in the breakout traders.  Although neither of our targets were hit, we are always happy with 30+ pips.

Lots of economic news tomorrow…so be very careful with your trading… especially when the US session begins, as there is an ECB Press Conference and US Employment Claims.

Back tomorrow.

EUR sets up nicely with a better than 5:1 reward to risk to begin October.  No significant European economic news releases to keep us out.  This familiar pattern set up after a quiet Asian session enabling us to enter the trade and progressively move our stop loss level to “take profit” as the EUR stair-stepped upward forming higher lows and reaching our Target 1.

This was an excellent trade to start the short week.  I do not trade on Non Farm Payroll days…so I will not be trading the UK session on Friday.

Keep in mind that China is off all week and the Asian session may be more subdued as a result. This bodes well for the UK session trading.

Good luck with your trades!