Archives for April 2016

After the GBP made a lower high a short setup was found.  The trade required a 20 pip stop loss for a potential 118 pips to our Target 2.   We were not expecting a lot of activity before the FOMC statement – but a low risk setup is always nice to find.  The trade moved down to test the Asian highs and retested the level before moving lower.  As the trade was taken near the US session open,  we moved the risk out of the trade by putting the stop loss to plus 1 pip.  After the US open price moved down but left a long lower wick.  We used that caution to tighten our profit stop to halfway down the body of the closed candle…still hoping to get to the Asian session lows.  Price moved back up against us and the profit stop was hit taking us out for a modest but quick gain.

Tomorrow looks like it has lots of potential to be active.

Good luck with your trading!

After a third higher low today, the GBP set up for a long trade.  On Fridays in my opinion, a trader needs to keep their stops particularly tight and get in and get out without trying to ride a move too far.  A lot of money comes off the table on Fridays and abrupt reversals can and do occur.

This setup allowed for a 16 pip stop loss for a potential 101 pips to our Target 2.  Price moved upward and zoomed through the Asian high.  We moved the stop loss (now profit stop) up removing any risk in the trade.  We also want to allow price room to retest the Asian high which it did’t do today. Today is more of an exception because price zoomed right through and didn’t look back.  It is with high probability that if it zooms through an important level – it will retest it before moving higher/lower.  Price then jumped up very bullishly for a second consecutive candle in a vertical manner.  Vertical moves are not sustainable!  We tightened our profit stop again – about halfway down the previous bullish candle.  Sure enough price pulls back and takes us out.

A quiet day economic news release-wise with the exception of the Canadian Core Retail Sales and Core CPI.  These were positive numbers for Canada and the CAD strengthened quickly moving before WTI moved… negating any trades resulting from it.

Overall a great week with lots of action in the markets.

Enjoy your weekend and good luck with your trading!

 

 

 

After the first 15 minutes of the U.S. session WTI began moving downward.  Similar to yesterday’s USDCAD trade, opportunity presented itself.

A long is taken in the USDCAD risking 22 pips for a potential 122 pips to our Target 2.  After 4 candles into the trade, the next 15 minute candle comes back and takes us out at our profit stop.  Having seen the long upper wick… 2 candles earlier, we have tightened up our profit stop and the market closed the trade for a very acceptable gain.

Simultaneously, we short the CADJPY with the same reasoning.  Risking 30 pips (CAD) for a potential 114 pips to our Target 2.  However this pair reversed at the 86.00 figure and after giving back 10 pips, we closed the trade.

With President Obama in Saudi Arabia yesterday, one eye on crude oil prices seemed like a prudent thing to do.

Good luck with your trading!

 

After climbing higher during the first part of the UK session, the EUR ran into sellers at yesterday’s high.  A nice reversal pattern set up and we entered short risking 11 pips for a potential 68 pips to our Target 2…very nice R/R!

The trade moved down somewhat vertically and briefly reversed at our Target 1 – hitting our profit stop.  We gave it some wiggle room above T1… but it didn’t work in our favour.

A USDCAD short followed after the crude oil inventories number was released.  WTI immediately went up and the USDCAD immediately went down. We entered short the pair and as it went down and WTI continued higher, price moved down to our Target 1 and the 1.2600 figure – where we would expect it to test and run into buyers… especially with the UK session ending.

Lots of news tomorrow so it will likely be an active session especially after the US session gets underway.

Good luck with your trading!

After the Doha impasse on Sunday, WTI oil futures gapped down by over $2.00.  By Monday, it was back to onward and upward.  Today WTI moved upward once again in the U.S. session.  Broad USD weakness today was apparent as the market appears to have lost its faith in a rate hike…at least for the foreseeable future.  The GBP was even rising to the USD.

Taking advantage of USD weakness and WTI strength led us to a USDCAD short risking 26 pips for 64 pips to our Target 2…which is an acceptable R/R for this time of day.  With Gov. Poloz speech pending, we wanted to get the risk out of the trade as soon as possible and went to a plus one pip profit stop after the first candle.  WTI continued upward and we continued to tighten our profit stop as the pair moved down…closing at Target 2.

The EUR set up nicely today but the trade was frustratingly modest in return as the profit stop was hit at 13 pips after price bounced downward after testing an important level.

Lots of news pending for tomorrow’s session.

Good luck with your trading!

USDJPY traded in an orderly manner downward today as the USD was soft across the board with U.S. 10 year yields trading down.

A very nice setup occurred early in the UK part of the session.  A short requiring an 11 pip stop loss for a potential 47 pips to our Target 2 was found. Price descended making a second wave down before bouncing off our Target 2 – before the U.S. session got underway.  Unfortunately for us, our profit stop was hit at Target 1.  It’s a good idea to be cautious in this market especially on a Friday.

The Doha meeting on Sunday will be important for oil and the CAD pairs.  For this reason, I will be looking Monday at the USDCAD closely.  Going into the weekend WTI looks like it can stay above $40.  We will soon see where it heads from here.

Enjoy your weekend and good luck with your trading!