Archives for August 2013

A very light news and lackluster trading session until the US session got underway.  After the Prelim U of M Consumer Sentiment figure was released, the EUR began to drop.  An entry short is found as price closes below yesterday’s high with a 3:1 Reward to Risk to our Target 2.  Price settled at the Asian session lows and the trade is closed.

It’s been another very good week of summer trading.

Back on Tuesday if can find a trade.

Good luck with your trading!

Enjoy your weekend!

If you are looking for personalized one-on-one coaching, please contact me for details of my 6 week course.

Both the AUD and NZD were fairly active during the Asian session.  My preference when this happens is to look for the momentum to reverse and find an entry.   The AUD had difficulty staying above the Asian session high…meaning sellers were entering above.   After the second close above, a reversal sets up with a bearish candle which closes below the range of the previous 2 hours.  Price moves down where it consolidates just below yesterday’s high.  Our profit stop is moved down to just above this level.  Major US economic news is pending and we await the market’s reaction.  The worst case scenario is we are stopped out for a profitable trade.  Price drops after the news and we close the trade on the next candle as price moves up to our Target 1.

I like the AUD and NZD pairs.  We can usually find a trade setup that we like most weeks.

Good luck with your trading!

Back tomorrow if we can find a trade.

An almost identical setup to Friday’s trade with more pips as price moved closer to our targets.  We don’t trade Mondays, but the past 3 sessions, the EUR has given a very clear 3 Drives pattern.  Today’s setup was 3 pips short of our desired 3:1 Reward to Risk ratio to our Target 2, but the pattern of the setup was the same as Friday’s…so why not go for it?  Trading is not easy but when the setups are so clear, it makes trading a lot easier.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www,privateforexcoaching.com

A familiar pattern set up for the EUR in another light economic news session.  The UK traders began their session by quickly pushing price below the Asian session low, inducing breakout shorts, then pushed the market higher to run stops.  They then completed the “wash and rinse”… doing it a second time.  A very wicky candle at the Asian session high was created as sellers entered pushing price back down.  With enough orders accumulated, the trending move down for the session was underway.

We enter short above the Asian session low anticipating this area to be tested and retested.  Seldom do we move right through it without a retest, but it’s wonderful when it happens.  Price moves down, but unfortunately does not make it to our targets before the UK session ends.  This was a nice trade setup with a greater than 4:1 Reward to Risk to our Target 2.  We thought price would make it down to yesterday’s low before the session ended… but it wasn’t to be.  We did have a nice 3 Drives patterns before our exit.

Another good week of summer trading done.  Ranges have tightened up the past couple of weeks, so we are happy when we can find a high probability trade set up meeting our R:R criterion.

Enjoy your weekend!

Back Tuesday if we can find a trade.

If you are having problems finding your edge or with trading confidence, don’t hesitate to contact me regarding my course.

NZD moves higher in the US session as traders go long above yesterday’s high.   The Kiwi set up nicely making a series of higher lows.  We are willing to accept a 2:1 Reward to Risk to our Target 2 once the US session begins.  We look for a 3:1 or better R/R during the early UK part of the session… before the US traders are active. Once the US session is underway this becomes a 2:1 R/R because we only have 4 hours left.

It is never a good idea to be greedy in trading and we exit at our Target 2 level.

Good luck with your trading and always be very selective in choosing your setups.

Back tomorrow if we find a trade.

An overall theme of USD weakness is evident in the charts today.  The NZD set up nicely an hour before the US traders began their day.   The NZD made 3 attempts but was unable to close below the Asian session low. A bullish candle followed and an entry is taken with a 13 pip stop loss.  As the US session was about to begin, the stop loss is moved up to plus one pip – in the event that US traders push the market back down.

Price begins to move up after a brief pullback.  The pair gains momentum rising through the Asian session high and yesterday’s high, before pausing at our Target 1.  We give it a second chance to move and stay above Target 1 , but as price dips below it, we close the trade to protect our profits. Price subsequently makes it to Target 2 without us, before pulling back at the UK Close.

Trading has been tricky of late and this is the first trade that we have been comfortable with in the past week.  It is always best to be patient and disciplined in trading.  If the familiar high probability setups are not there…it’s best to sit on one’s hands.  Much of Europe is on holiday this month, so if the trading is a little slow or the charts appear to be less clear, it may be due to summer holidays.

Good luck with your trading!

Back tomorrow if we can find a trade.