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!
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!
