Archives for July 2014

NZD retraces briefly but does not give us the full move we had hoped for today.  One of my favourite trades is after a currency pair makes an extended move during the Asian session – to have the UK traders retrace the move entirely or at least 85% of it.

The NZD sentiment seems to be fading and the pair may have put in its high for now, near the .8835 level.

Janet Yellen’s comments yesterday although not hawkish, might be considered by the street as “less dovish” than in the past.  Are we going to see a slow grind higher with the USD?  We are about to find out…

After a sell off during the Asian session, we see the NZD get bought as it tested the Asian session lows.  We enter long with a 12 pip stop – hoping to capture a full retracement but it wasn’t to be.  The pair begins making higher lows but as Janet Yellen’s testimony Day 2 got underway, price pulled back and closes us out at our profit stop for a meager gain.

Important US economic news releases tomorrow…trade accordingly.

Good luck with your trading!

Back tomorrow if we find a trade.  Tuesday was just too tricky for us to trade. If the setups aren’t there – come back the next day.

The GBP set up nicely for a short but found buyers below the 1.7100 figure.

As the UK traders began their session, the GBP tested the Asian session lows, then began to move upward. As wicky tops created 3 lower highs indicating that sellers were entering above 1.7143 area, we find a short entry as price comes back down to the Asian session high.  With a stop placed above the session highs costing 13 pips for a potential 50 pip downside move, we enter short liking the R/R.

This is a classic candle setup coupled with a time of day when trending moves frequently set up.  Price tests and retests the Asian high before gradually descending to the Asian low – completing a pattern.  We expect a retest of the Asian lows before a further descent and we get it.  We have systematically moved our stop loss, now profit stop downward…thereby removing any risk from the trade and assuring a successful outcome.

Although our first Target is 1.7097, we know that the current bullish GBP trend may have difficulty penetrating the 1.7100 figure.  As price begins to bounce as we approach the figure, we close our trade choosing not to give back any more of our gains.

Although position traders may remain long the GBP, we have seen this week that the 1.7179 level has not been challenged and the 1 hour chart is showing some lower highs.  We will see what next week brings…

Good luck with your trading!

Summer is an excellent time to relax and hone your trading skills.  I have reduced the price of my course until August 30th.

If you have any trading questions about my methodology, please email me at Michael@privateforexcoaching.com

Enjoy your weekend!

Back Tuesday if we find a trade.

The JPY pair continued downward during the UK session.  This pair has not been overly active recently and has been cycling up and down in a fairly tight range since April.  It’s lower highs made it an attractive short today. With a very inexpensive stop loss of 5 pips, we take it short with a Reward to Risk Ratio of 4:1.

Price trades sideways until the US session gets underway – then moves down to our Target 2.  As price bounces above this target, we exit.  Knowing how far a pair is likely to move in a given day enables us to determine our R:R and evaluate the best setups among the majors.

Last week turned into a holiday for us and it’s nice to be back as I enjoy summer trading very much.

Good luck with your trading!

Back tomorrow if we find a trade.