There were no high probability trade setups overnight in the majors. Be disciplined and don’t risk your money on low probability trade setups. Discipline and patience are rewarded in this profession.
Let’s see what tomorrow brings.
The EUR made a classic pattern overnight. This is a favourite setup and occurs with great frequency in the GBP and EUR. Study this pattern closely and watch for it! There are variations to it and nuances that I teach, but this one pattern can make a trader a lot of money over time! Money management is essential, with the correct reward to risk ratio of 3:1 or higher.
The week went by without a single GBP trade setup with any appeal. The end results were fine despite it being a very slow summer holiday period.
Let’s see what next week brings…
Enjoy the weekend.
Questions are always welcomed. Michael@privateforexcoaching.com
See you back Tuesday.
Michael
The EUR offered an advanced level trade setup overnight. What made the EUR trade work was a number of factors. The European market opens an hour before the UK market. We can see that the initial price action was down as the European session got underway. Note the 2 candles that penetrated the low of the previous day, and closed back above. This indicates that yesterday’s low is strong support with buyers entering at this level. As the UK session begins, the EUR moves up, pulls back, and bounces off the previous day’s low once again. This time it has put in a higher low (the Big Hint) for the European session. After a bullish candle follows and with a low risk stop placed below yesterday’s low, an entry is taken.
When trading the EUR it is often useful to look at the CHF and see if the inverse is occurring. If the EURUSD is moving up then the USDCHF is likely to be moving down – with a similar pattern. I prefer to trade the EUR, but either is fine.
As the EUR price moved up, session resistance was tested which had also been a level of resistance in the US session the day before. Do not fight price ever. If it come back down and you’re stopped out – fine. If it moves through resistance, move your stop up to protect your initial profits and keep moving your stop up to protect profits. Stops are best placed under price structure, but always do the arithmetic before entering a trade to determine if the the Reward to Risk ratio is at least 3:1 – this means risking no more than 15 pips to get 45 + pips. Our targets are hit and we are done.
Let’s see if the GBP will give us an entry tomorrow before the week closes.
The trading has been tricky this week, and I attribute this to holidays and low volumes.
If you have any questions or would like to know more about my course, please email me.
Michael@privateforexcoaching.com
See you back tomorrow.
The GBP still hasn’t given us a clear entry signal this week. Several of the majors looked good for a trade overnight and the EUR looked best to me. This is an advanced level technique but due to its low risk and no news pending – to potentially shake things up – the trade was attractive.
Be very careful if you belong to any trading groups or hear that you should be scanning 15 or 25 pairs each session. This can be the kiss of death. Instead…become very familiar with the trading nuances of 2 to 4 of the major pairs. I recommend studying the behavior of the GBP, EUR, AUD and CAD. Start with the GBP and EUR and learn them first. Expand to the AUD and CAD afterward. I highly recommend avoiding the EURJPY and the GBPJPY. I have seen more traders blow up their accounts on these two pairs than any others. Trading groups filled with newbie traders often get greedy and think they can make twice as many pips on these pairs, than with the majors. Please AVOID this newbie mistake. You can make a lot of money just trading the GBP or the EUR with proper money management. There is no need to trade exotics pairs. Forget about them.
Remember it’s the heart of vacation season and the market is not making its usual ranges. Be very selective in your trade setups as always, and be prepared to take less profit than usual.
If you would like personal coaching, please contact me. Michael@privateforexcoaching.com
Best of trading!
Nothing too exciting overnight as vacation time is keeping volumes lower than normal and ranges tighter than normal. The GBP was too difficult to enter but the AUD produced a viable setup. We didn’t hit either target but a few pips were offered up with a reasonably low risk trade. The commodity currencies AUD and CAD have been quite quiet lately.
Let’s see what tomorrow brings us.
Questions welcomed! Email Michael@privateforexcoaching.com
Be cautious trading and be willing to accept what the market offers each day. Don’t be greedy!
Finishing the week strong. Patience during a quiet summer week was finally rewarded – as the GBP made its range after a double bottom, as the US stockmarkets opened.
See you back Tuesday.
Enjoy the weekend and the remainder of the Olympics. (Alas, we only have one gold thus far.)
Questions are always welcomed!
