Archives for August 2014

The JPY was unable to close above its Asian session high and set up nicely for a short requiring a very small stop loss.  With a 6:1 Reward for our Risk ratio setup, this was an easy choice.  As price began to roll over during the session’s “sweet spot” once again, we enter short with a stop loss above the Asian session high requiring 6 pips for a potential 36 pips.

Protecting ourselves in advance of the US Open, we move our stop loss down to plus 1 pip and are “stress free” as the US traders begin their session.  Price moves down through the Asian low and retests it before making one last dip lower.  As buyers enter we are closed out protecting a large piece of the move for modest pips.  Whenever wicks appears above or below candles, it’s a good idea to watch price carefully and tighten stop losses or profit stops.

A very light economic news session with a disappointing German ZEW Economic Sentiment number.

Good luck with your trading!

Back tomorrow if we find a trade.

God bless Robin Williams and his family.  I will miss him!!!

The EUR continued trending downward during the UK session tagging 2 of our target areas (one is shown on the chart below – a much stronger target is not shown due to it being proprietary for my students).

The move occurred and it frequently does during the sweet spot of the session – where session trends tend to begin.  If you are interested in knowing this time – email me and I will be happy to let you know when to look for it.  This is pretty well known among European and UK institutional traders.

The session started with a false move higher and the Asian session highs not being challenged.  After price hovered near the day’s high for an hour, it finally dropped, taking out the range and closing bearishly.  We enter short with a stop loss just above the Asian high giving us a 3:1 Reward for our Risk to our Target 2. Price begins to descend and as it goes through the Asian low we move our profit stop just above the Asian session low to allow for a retest without being closed.  Price continues to drop to our Target … then begins to rise.  As this is a double target area for us, we promptly close the trade as the momentum changes.

Be very careful trading the EUR tomorrow in advance of ECB Draghi speaking.  The GBP may offer a nice entry after the UK economic news releases but these are very late, and also on Thursday the US Unemployment Claims is reported 30 minutes into the US session.

Good luck with your trading!

Back tomorrow if we find a trade.

Email  Michael@privateforexcoaching.com