Archives for April 2013

It’s a beautiful trading day when everything aligns and works out.  There were several nice trade setups during the UK session.  The EUR looked convincing to the downside when all the news was behind us.

An entry was taken short after price pushed hard down through the Asian session lows and closed below it.  Sellers had entered above the Asian session high not allowing price to exceed yesterday’s high.  Price retested the Asian session low but could not close within it, then it began to drop.  As the US traders came on and began their all too familiar reversal, we moved our stop loss to plus 2.  This protects us in the event of a hard reversal.  When there is no risk in the trade and the worst thing that can happen is you make a couple of pips, it takes the stress out of trading.  There were no major US economic news releases pending, so watching the stock markets gave us further likelihood of the EUR’s direction.

When price dropped precipitously, it penetrated both our Targets in the same candle.  This enabled us to keep moving our take profit down until the market closed us out.  It’s been a while since we had such a gorgeous trade!  My students will recognize this trade as being a textbook Mountain trade.

This has been an awesome week so far.

We will see what the markets offer us tomorrow…

Several of the majors set up nicely during the UK session, once the news was behind us.  The CHF looked best to me.  Not wanting to place a stop above yesterday’s high, we chose to enter the trade with a stop a few pips above the Asian session high.  This trade worked out well – making it to and past our Targets 1 & 2. We exited as price pulled back to our Target 2.  As it turns out, price would go significantly lower without us.

We have no complaints as it was an excellent start to our trading week.

Last week ended with a malfunctioning keypad which kept us out of the market on Friday.

Good luck with your trading!

Back tomorrow.

Another very light economic news trading session.  The UK traders began to move the market in a very familiar pattern.  Both the CHF and EUR set up nicely at the same time.  The CHF offered a very small stop loss and a greater than 3:1 Reward to Risk to our Target 2.  The EUR stop loss was more twice what the CHF offered us and it did not have a 3:1 R:R setup.

The move happened quickly and ended quickly as the UK traders wanted to lock in profits before the US traders reacted to the US Employment numbers.

I love to choose the easy trades with the least amount of risk, and this one had all the hallmarks that I teach.  It was not a big move, but we will take an easy 30 pips any day we can find them.

There will be lots of major economic news in the US tomorrow.

Good luck with your trading!

Back tomorrow to finish the week.

Michael  www.privateforextrading.com

Very light economic news session creates fairly lackluster trading.  The EUR had been moving up for 5 straight days and finally broke above the 1.3100 level only to sold off at 1.3120.  As price formed a lower high, rejecting yesterday’s high, we go short at the figure with a stop just above the session high.  Price found buyers below the Asian session low, and we close the trade at this level in advance of the FOMC minutes – for modest gains.

Tomorrow is a very light economic news session too, with employment numbers being reported for Australia during the Asian session, and the same for the US early in its session.

Hopefully we will find a trade.

Good luck with your trading!

After an usually active Asian session, the UK traders immediately pushed the EUR down to its Asian session low.  This is one of my favourite times to find a trade setup – after the Asian session has been very active.  Unfortunately, I was unable to find a convincing entry to the upside and the trade got away from me.  However, extremely late in the trading session, with just an hour before the UK close, I found a long entry.  As there was very little time left, I took a very shallow stop and price moved up quickly enabling us to remove all risk from the trade and lock in profit after 15 minutes.  Price moved up further, but failed to clear the figure – 1.3100 and we happily take our profits and close the trade.

A good start to the week, after last week’s lacklustre trading.

Good luck with your trading!

Back tomorrow.

After an exceptionally large sell off in the GBP yesterday, we found an buying opportunity after the economic news release for the UK.

Once price closed above the Asian session high following a couple of pullbacks on tests, we enter long with a stop just below yesterday’s low.  Although a stop below the news candle spike would have been safer, it was too expensive a stop for us.

Price began to move up and we protected ourselves in advance of the first US economic release.  We end up closing the trade to protect 30 pips of profit.

As we do not trade NFP Fridays, we hope to capture a nice move tonight if the market cooperates.

Good luck with your trading!

Back tomorrow.