Archives for May 2016

A very familiar pattern set up today as the USD started to regain strength.  A short is taken on the AUD risking 18 pips for a potential 58 pips to our Target 2.  As price moved down, we could see similar price action in the EUR, GBP and NZD.  As price continued downward into the UK Close we continued tightening our profit stop – protecting us from potential volatility.  At the close of the UK session we exited the position.

Back tomorrow to wrap up the week if we find any setups that we like.

Good luck with your trading!

The USDCAD moved up quickly today but was unable to take out its Asian high and set up a short trade for us.  Both Brent and WTI were looking a little subdued but were moving up.  The question would later be answered early in the U.S. part of the session as to what the crude oil inventory supply number would be.

With a 22 pip stop loss for a potential 87 pips to our Target 2, we like the setup.  Price makes it way down to yesterday’s low and bounces briefly before heading to its Asian low and briefly finding some buyers before pushing down hard and leaving a noticeable lower wick heeding us of where buyers are entering.  We tighten our profit stop and exit on the first rebound.  As the U.S. session approached and with the crude inventories number pending…we are happy to be out of the trade.

Good luck with your trading!

Curiously after a falling short of expectations last Thursday with the Services PMI – the GBP temporarily rose.  As it turned over, we went short risking 19 pips for a potential 97 to our Target 2. Price reversed the reactionary vertical up move and pushed lower.  We tightened our profit stop with each descending candle as vertical moves are not sustainable.  When price reversed after taking out the previous day’s low very bearishly, our profit stop is hit.

Apologies for the delay in last week’s postings.

Good luck with your trading!

An old familiar “W” pattern emerged on the EUR and after a very bullish candle – taking out the four previous candles… a long setup is entered.  The risk was 16 pips for 83 pips to our Target 2.  Price moved up and briefly paused in the middle of its Asian range before moving higher.  As price got above the Asian high, we locked in profits.  After a very long upper wick formed indicating sellers were entering we closed the trade.

Good luck with your trading!

The USDCAD  moved down briefly after the UK open.  Brent crude moved down as well… which meant as oil was weakening the USDCAD is primed to move up and we noted the reversal setup.  Oil had started the week soft  and it was not a surprise to see it continue as WTI was unable to sustain over $45  the day before in New York.

A long is taken after the reversal setup risking 23 pips for 72 pips to our Target 2.  As price moved up through the levels, we allowed a few pips of wiggle room – adjusting our profit stop to lock in profits.  We kept it especially tight as the US session got underway and we are closed.

Good luck with your trading!

On Thursday last week, oil remained resilient and a nice looking setup occurred in the US part of the session.  After a second lower high and clearly no buyers above the Asian session highs, a short is taken.  As price starts to come down, we see some lower wicks forming on the candles just below yesterday’s low.  Price continued to retest this level then dropped, but did not take out the Asian session low and bounced taking us out of our trade for a modest gain.

On Friday the GBP weakened as the UK traders pushed it down below its Asian session low.  It formed a bottom and closed bullishly.  We took advantage of the long setup at the Asian low… hoping for a run to the Asian session highs and higher.  Price moves higher and a long upper wick formed and price closes in the middle of its Asian range.  The following candle is a doji and we close the trade not wanting to give back any more pips.

Both these trades looked like they had very nice potential but delivered modest pips.  Modest pips add up.  Look for the setup with the appropriate R/R.  If the trade setups are high probability and they only deliver modest gains…don’t be discouraged.  Some days and weeks the markets delivers much more than other weeks.  Focus on R/R, setups and small stop losses.  Trade what you see and lock in profits…removing risk from trades when prudent to do so.

Good luck with your trading!