The AUD was active during the Asian session after RBA Gov. Stevens’ speech.  The European traders brought price off its lows before the UK traders pushed it back down where it formed a higher low.  After 2 bullish candles an entry long is taken giving us a better than 3:1 Reward to Risk ratio setup to our Target 2.

In advance of the US Open we move our stop loss to plus 1.  Price subsequently moves up to the Asian session high and we wait one more candle to see if it can break through and head to our Target 2.  It does not and we give back a few pips and close the trade.  This was a very straightforward setup and assisted by the lack of US news in advance of the FOMC meeting later today.

Good luck with your trading!

Back tomorrow if we find a trade, but not Friday as we are taking a long weekend.

The AUD made a familiar setup with 3 lower highs.  After the third lower high and a very bearish 3 candle reversal an entry short is taken with a stop loss above the Asian session high.  Although I do not like entries in the middle part of the Asian session range, 3 lower highs, a very bearish 3 candle reversal consistent with overall Daily trend, and a cheap stop of 10 pips made this trade very attractive.  It also met our minimum 3:1 Reward for our Risk minimum to our Target 2.

US PPI created some volatility as the Asian session low was tested and gave way to the downside after the Uof M Consumer Sentiment disappointed.  We closed the trade just after the European close as it begins to retrace.

Nice to have found an Aussie trade once again.  This summer the NZD has been much easier to trade.  For those of you watching the JPY – it produced a nice trade setup this session too.

Good luck with our trading!  Enjoy your weekend!

Back Tuesdays if we find a trade.

Questions?  Michael@privateforexcoaching.com

With the US Unemployment number and reaction behind us, we see the market is reversing to the downside consistent with the EUR Daily time frame trend.  With a greater that 3:1 Reward for our Risk, we enter short with 2 hours left in our trading session.

Price moves down enabling us to move the stop loss to a profit stop…removing any stress from the trade. As price continues down, we continue to lock in profit.  We anticipate a retest of a critical level from the hourly chart which price touches before moving down further.  As the UK session ends, we close the trade reluctantly and leave the rest of the move to the US traders.

Good luck with your trading!

Back tomorrow if we find a trade.

The JPY was unable to close above its Asian session high and set up nicely for a short requiring a very small stop loss.  With a 6:1 Reward for our Risk ratio setup, this was an easy choice.  As price began to roll over during the session’s “sweet spot” once again, we enter short with a stop loss above the Asian session high requiring 6 pips for a potential 36 pips.

Protecting ourselves in advance of the US Open, we move our stop loss down to plus 1 pip and are “stress free” as the US traders begin their session.  Price moves down through the Asian low and retests it before making one last dip lower.  As buyers enter we are closed out protecting a large piece of the move for modest pips.  Whenever wicks appears above or below candles, it’s a good idea to watch price carefully and tighten stop losses or profit stops.

A very light economic news session with a disappointing German ZEW Economic Sentiment number.

Good luck with your trading!

Back tomorrow if we find a trade.

God bless Robin Williams and his family.  I will miss him!!!

The EUR continued trending downward during the UK session tagging 2 of our target areas (one is shown on the chart below – a much stronger target is not shown due to it being proprietary for my students).

The move occurred and it frequently does during the sweet spot of the session – where session trends tend to begin.  If you are interested in knowing this time – email me and I will be happy to let you know when to look for it.  This is pretty well known among European and UK institutional traders.

The session started with a false move higher and the Asian session highs not being challenged.  After price hovered near the day’s high for an hour, it finally dropped, taking out the range and closing bearishly.  We enter short with a stop loss just above the Asian high giving us a 3:1 Reward for our Risk to our Target 2. Price begins to descend and as it goes through the Asian low we move our profit stop just above the Asian session low to allow for a retest without being closed.  Price continues to drop to our Target … then begins to rise.  As this is a double target area for us, we promptly close the trade as the momentum changes.

Be very careful trading the EUR tomorrow in advance of ECB Draghi speaking.  The GBP may offer a nice entry after the UK economic news releases but these are very late, and also on Thursday the US Unemployment Claims is reported 30 minutes into the US session.

Good luck with your trading!

Back tomorrow if we find a trade.

Email  Michael@privateforexcoaching.com

If you are new to trading or a seasoned veteran, it’s a good idea to be aware of the trading range made in the previous session and the previous day.  I find the UK session to be the most productive for trading.

When price tests the previous session’s high or low (sometimes it tests both) … the Asian session high/low and yesterday’s high/low, be aware that it may pause, move above/below and retest it again. This is typical market behavior and occurs most days.  I mark these levels in the trade examples that I include each day.

I was taught (years ago) never to be a breakout trader… by one of the largest traders in the world.  Wait for price to price to break the range and pull back,  Wait one more time for price to push above/below the Asian session and then wait to be convinced of the direction that price will then move.  This breakout pull back, break out pull back is known as a “wash and rinse” and essentially is a way to stop out weak hands and accumulate volume before a larger move.  About once a week or so, going long/short as price breaks through the previous session’s high/low works, and price runs and the breakout traders are rewarded.  This will entice them to do it again and again, but about 80% of the time, it won’t work and stop losses will be triggered and weak hands will be taken out for a loss.

There are a lot of tricks for interpreting market behavior and I won’t be sharing all the tricks here, but the point has hopefully been made that trading 80% of breakouts is not a prudent trading strategy.  If price runs away…NEVER chase it…let it go and find another trade or come back tomorrow.

The GBP quickly pushed through its Asian range lows and yesterday’s low as the UK trading got underway today.  It then pulled back before pushing down once again.  At this stage we wait for a second pull back… and it pulls back within the Asian session range.  The next candle it reverses lower… closing below the Asian session low.  As price has already pulled back twice – testing the previously mentioned levels, a short is taken with a modest stop loss – giving us a 4:1 Reward for our Risk to our Target 2.  The wild card in this trade will be the US economic news releases, so we will have to tighten our stop loss or profit stop in advance.

This trade is with the current trend of the USD, at a sweet spot of the session – with time to run before the US session gets underway, the wash and rinse pattern appears to be complete and 4:1 R/R trades are somewhat irresistible when a pair is trending predictably.

I hope this helps!  Good luck with your trading!

I like summer trading although this summer’s ranges have been quite contracted.  As long as you follow your trading rules consistently, the strategies remain the same and profitable trades await your analysis and execution.

I had one of my former students – a professional trader with many years of trading experience tell me yesterday that he has just had the best 6 weeks of trading since he began trading.  I have every confidence that his trading success and consistency will continue!

Back tomorrow if we find a trade to wrap up the week as we don’t trade NFP Fridays.

If you have any questions, please send me an email and if you are interested in my course, I will be happy to answer any questions you may have over Skype.  Check the Contact Me section of my website for details.