Archives for October 2012

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.

The GBP is once again showing signs of life.  The EUR got away from us overnight, but the GBP looked good once the “wash and rinse” was completed.  This trade was acceptable as it met our 3:1 reward to risk minimum criterion.

A surprisingly bad economic news release out of the UK did nothing to dampen the rise of the currency.  After our entry, price rose to our Target 1 level and pulled back forming another higher swing low.  As price struggled to rise and close above our Target 1, we closed the trade to lock in Target 1 profits.  I teach my students not to give back profits once Target 1 is obtained.  By leaving the stop loss now “take profit” just below structure, we would be giving back pips, so it is safer to lock in the profits and return another day.  As it turned out, price moved up strongly just an hour later beyond our Target 2 – in one candle.

The week continues…

Be methodical with your trading and never chase trades!

Back tomorrow.

A wonderful way to start the trading week!  There were lots of trades that set up during the UK session.  The EUR is usually my first choice – if all things are equal.  After testing the Asian session low and pulling back somewhat gently, our trade set up.  With a stop just above the pullback high and a greater than 4:1 reward to risk ratio to our Target 2…(meeting our 3:1 RR minimum), we enter short.  Price pushes through yesterday’s low and pulls back briefly before plunging through our Targets 1 & 2 in the same candle.  We close the trade as the candle is about to close…delighted to start the week with such a nice trade.

Take what the market offers and don’t be greedy.

Back tomorrow.