Archives for November 2012

The EUR made a nice move from yesterday’s high to its Asian session low before reversing.  The signals were very clear and the Reward to Risk exceeded our minimum of 3:1 to our Target 2.  The USD crosses move very similarly and it was more a matter of choosing your favourite setup.

Always be aware of yesterday’s high and low as well as the Asian session high and low.  These are critical levels for intraday traders.

This trade proceeded well until it bounced hard off the Asian session low.  Not wanting to give back any more pips, the trade is closed the next candle.  Although our targets were not hit, we are pleased with the trade.  If you know what to look for, then you know when the market presents it… the rest is trade management.

Back Tuesday and it will be a shorter week for us, as we do not trade the NFP Friday sessions.

Have a great weekend!

Questions  Michael@privateforexcoaching.com

A familiar pattern emerged with a move above the Asian session high to lure in the breakout traders.  Price then pulls back and chops back and forth between the mid and top of the Asian session range. The candles have an identical but opposite direction setup as yesterday.  The Reward to Risk is greater than 4:1. We go long, price tests the Asian session high and yesterday’s high before moving toward our targets.  Unfortunately a very wicky candle appears indicating a potential reversal.  We close the trade for modest gains.  The trade appeared to have lots of potential but it wasn’t to be.

Let’s hope for a nice move tonight to end the trading week.

Good luck with your trading!

Back tomorrow.

Questions – Michael@privateforexcoaching.com

The market took its time to set up overnight amid a very light economic news schedule.  The GBP looked good to the downside following two bearish candles with the second one being very wicky.  By entering on the opening of the next candle , our reward to risk minimum of 3:1 to our Target 2 was available with a relatively small stop.

Entering near the middle of a range is not a favourite entry point, but a series of lower highs and 2 back to back bearish candles with the second one being very wicky coupled with a relatively small stop made this trade attractive.  We anticipate that the trade will test and retest the Asian session low. We protect our trade accordingly by lowering our stop, now “take profit” – thereby removing the risk from the trade.  Price moves down to our Target 1, and we protect this level and the trade is closed on the next candle.  Price continued down without us to Target 2, pulls back, creates a higher low and the reversal move is under way.

Good luck with your trading!

Back tomorrow.

Send any questions to Michael@privateforexcoaching.com

The AUD made a series of lower highs.  This trade just barely made our minimum Reward to Risk of 3:1 to our Target 2.  The trade moved fairly quickly to our Target 1 and we always protect that level.  I forgot to mark in the “take profit” levels on the chart as the trade progressed.  Not a bad trade to begin the week.  Note how 2 higher lows illustrate the reversal.

Let’s hope for a good week of trading.  More positive economic news releases are showing up of late.  It doesn’t mean that we are out of the woods, but it’s nice to see.

Always be disciplined in your trading.

Back tomorrow…

Send questions to Michael@privateforexcoaching.com

Optimism returns to the market.  The GBP had an exceptional session and was catapulted to the upside by the US traders.  After a tricky 2 weeks, we are rewarded with a very large upside move.  This trade could have been a loss, if the stop loss had not been below structure.

Price made a familiar pattern of enticing breakout traders into the market, then pulled back.  Our criterion of 3:1 minimum Reward to Risk was met.  After our entry, price pulled back one more time, before rising back into the Asian session, where it retested the low, and then moved up.  By protecting our profits in the usual manner, and not being greedy, we were able to exceed our profit level considerably.

Trading is best taken one day at a time.  Some days are difficult but some days are extremely rewarding.  There appears to be some surprisingly positive news lately and the trading ranges are expanding once again.

Have a wonderful weekend!

Back Tuesday.

Questions…  Michael@privateforexcoaching.com

The EUR which has been moving up all week finally gave us an entry.  After making a series of higher lows, the UK traders test the Asian session high, then it pulls back down with all the news releases, forms another higher low, followed by a very bullish engulfing candle.  With a stop below the higher swing low, and a reward to risk of greater than 3:1 to our Target 2, we enter long.  We anticipate a test and retest of the Asian session high and vigilantly watch price action.  Price rises through the Asian session high, makes a shallow pullback forming another higher low above the Asian session.  Price then proceeds to our Target 1 – a level of profit we always protect!  Price does not close above it and we close the trade happy with what the market has offered.

Always pay close attention to yesterday’s high and low and the Asian session high and low.  Watch how price reacts around these levels.

Happy Thanksgiving USA.

Best of trading!

Questions Michael@privateforexcoaching.com