Michael Bridgman

Lots of very important economic news releases this week, not the least of which will be the result of of the US Presidential election today.  This could be a volatile week, so be careful and keep stop losses tight.

The EUR set up for an excellent reward to risk ratio trade of greater than 5:1 but neither of our Targets was reached.  After getting a quick surge to the upside and riding out a pullback that didn’t threaten our initial stop loss at any time, the trade was eventually closed after a very wicky candle implying a top or reversal.  We protected our modest gains and closed the trade on the next candle.

There will be lots of news this coming session to be aware of, as well as the markets reaction to the US elections.

Be very careful with your trading.

Back tomorrow.

AUD set up as a nice trade overnight.  After initially dropping after the UK open and moving down near the Asian session low, it moves up with several very wicky candles pushing off the bottom.  After a higher low is made and entry long is taken with a stop loss just below the Asian session low.  Price moves up, pulls back and forms a series of higher lows…enabling us to move our “take profit” up with each swing.  We close the trade at Target 1 as we are late in the session and a retest of the figure – 1.0400 is very likely.  We don’t like to give back profits once Target 1 is attained.

It wasn’t until yesterday, that it dawned on me, the UK and Europe moved their clocks back last weekend and that I have been off by an hour this week.  North America moves their clocks back this weekend and everything will be back in sync next week.

It been a good week for trading.

Non Farm Payroll is tomorrow and I don’t trade that day, so I will be back Tuesday.

Enjoy your weekend!

A nice move down on the EUR once a lower high became evident.  The breakout long traders got lucky, so we had to be patient.  The CHF confirmed the EUR move and AUD also set up nicely.

The UK traders faked short at the open, then reversed the EUR upward taking all the breakout longs along for the ride.  Price peaked then put in a lower high with a hammer-like wicky candle.  An entry short at the open of the next candle met our 3:1 minimum reward to risk ratio.  Price moved down allowing us to take the risk out of the trade and move our “take profit” down above structure.  Although neither of our targets is hit before the UK close, the trade worked out very nicely.

Good luck with your trading and always be selective and patient with your trade set-ups.

Back tomorrow.

Very modest EUR trade gain to begin the week.  A very rare trade placed in front of the news due to my not believing that the Italian Bond Auction would be a big market event and a 10 pip stop made the trade very affordable.  With a better than 3:1 reward to risk ratio, a long trade is taken, but after Target 1 is obtained, we are closed  the next candle, as we protect our Target 1 profits.  Target 2 is also hit but without us.

Last week was a great week.  This week we start off modestly.  We will not be trading Friday as it will be the Non Farm Payroll release.  Hopefully we will find some good trades tomorrow and Thursday.

Back tomorrow.

Michael

The EUR offered up a nice trade again, to end the week.  As the UK session began, the European economic news was released and behind us.  The next pending news would be in the US session.  The EUR traded sideways then began to rise but did not take out the Asian session high.  Price then reversed and a short trade was taken.  This same setup is mirrored with the CHF confirming the trade direction.

Price moves to the Asian session low and closes before dropping to our Target 1 level.  I teach my students to not give back profits once Target 1 is hit.  We close the trade on the next candle to protect our profits and  end the trading week.

It’s been a great week for trading!

Enjoy your weekend!

Back Tuesday.

Beautiful EUR trade setup with a reward to risk ratio of near 6:1.   This trade offered 2 entries with very little risk for either.  With no European economic news releases of consequence, a trade short is taken after the wicky candles indicated the top was in place.  An alternate entry followed with a lower high and a bearish engulfing candle.  The risk was removed early as the trade progressed down and our stop loss continued to be moved down to protect our profits.  It looked like our Target 2 would be hit in advance of the London close, but it wasn’t to be.  As opposed to giving back a few pips to get 4 or 5 more…the trade is closed.

It has been a great week!  The majors are moving well again – including the GBP…which is nice to see.  I was wondering if we would have to wait until after the US election.

Not every week will be as kind as this week has been – so this makes up for the dull boring ones, when the signals are less clear.

Back tomorrow and remember the words below by Curtis Faith.