The GBP set up nicely for a short but found buyers below the 1.7100 figure.

As the UK traders began their session, the GBP tested the Asian session lows, then began to move upward. As wicky tops created 3 lower highs indicating that sellers were entering above 1.7143 area, we find a short entry as price comes back down to the Asian session high.  With a stop placed above the session highs costing 13 pips for a potential 50 pip downside move, we enter short liking the R/R.

This is a classic candle setup coupled with a time of day when trending moves frequently set up.  Price tests and retests the Asian high before gradually descending to the Asian low – completing a pattern.  We expect a retest of the Asian lows before a further descent and we get it.  We have systematically moved our stop loss, now profit stop downward…thereby removing any risk from the trade and assuring a successful outcome.

Although our first Target is 1.7097, we know that the current bullish GBP trend may have difficulty penetrating the 1.7100 figure.  As price begins to bounce as we approach the figure, we close our trade choosing not to give back any more of our gains.

Although position traders may remain long the GBP, we have seen this week that the 1.7179 level has not been challenged and the 1 hour chart is showing some lower highs.  We will see what next week brings…

Good luck with your trading!

Summer is an excellent time to relax and hone your trading skills.  I have reduced the price of my course until August 30th.

If you have any trading questions about my methodology, please email me at Michael@privateforexcoaching.com

Enjoy your weekend!

Back Tuesday if we find a trade.

The JPY pair continued downward during the UK session.  This pair has not been overly active recently and has been cycling up and down in a fairly tight range since April.  It’s lower highs made it an attractive short today. With a very inexpensive stop loss of 5 pips, we take it short with a Reward to Risk Ratio of 4:1.

Price trades sideways until the US session gets underway – then moves down to our Target 2.  As price bounces above this target, we exit.  Knowing how far a pair is likely to move in a given day enables us to determine our R:R and evaluate the best setups among the majors.

Last week turned into a holiday for us and it’s nice to be back as I enjoy summer trading very much.

Good luck with your trading!

Back tomorrow if we find a trade.

Little news aside from the UK Current Account release.

The CHF set up after almost getting away from us.  Just as the US session got underway an entry is found short meeting our Reward to Risk ratio.  Be cautious entering trades a new session gets underway – today there was no important pending US economic news to whipsaw us and the stop loss was 9 pips.

The CHF was trending lower after an initial stop run on Asian traders to begin the UK session.  There had been no buyers above the Asian high where price began to trend lower.

Price dropped to the Asian low then went sideways before making one more dip. As price approached the .8900 figure and bounced – we exit to protect our profits.

Good luck with your trading!  Enjoy your weekend!  It’s a long one for me and I will be back Wednesday if I find a trade.

The EUR is giving mixed signals at the moment.   A very powerful trading pattern emerged during the “sweet spot” of the UK session.  After the breakout traders went short, we await a couple of pullbacks.  After the second one, we enter short allowing for an 8 pip stop loss.  The lower highs are very easy to spot and the reversal allows us a 3:1 Reward to Risk to our Target 2.

Trading is demanding of patience and it was not until after the US news that the pair began to plummet.  As price drops and closes below our Target 2, we find it begin to bounce on the next candle and we allow a bit of wiggle room – then close the trade to protect our profit.

The market is much more likely to reverse near our Target 2 level than it is to continue in the same direction. The targets not only enable us to determine our R:R ratio, but also help us protect and lock in profits – as we know statistically that the day’s range has been met and only in very rare instances is price likely to continue much further.

Good luck with your trading!

We will be back tomorrow if we find a trade and if not it will be next Wednesday… as we be enjoying a long weekend.  Trading will have less volume next week during the US session as Canada has a national holiday on Tuesday with many taking Monday off too.  The US has a national holiday on Friday and many will want to add additional time due to it being summer.

The GBP has given up 1.70 today after Governor Carney’s comments.

After an initial surge downward and sizeable retracement, an entry short is taken with a stop loss above the double top – meeting our 3:1 Reward to Risk ratio to our Target 2.  Although price remained below yesterday’s low, it’s not until after the US news that we finally get a move to our Target 2.  As the candle closes leaving a long lower wick, we exit the trade.

More GBP news tomorrow as the market appears to be long at the moment.  We’re not position traders so we are happy to trade either direction with the session trend.

Good luck with your trading!

Back tomorrow if we find a trade.

The CHF pair moved up during the UK session to our Target 2 but its overall direction remains unclear as the week closes.

This setup required approximately an 8 pip stop loss for a potential 27 pips to our Target 2.  A classic wash & rinse setup – meeting our 3:1 Reward to Risk ratio.

Three other considerations are: 1. The EUR is moving down and our CHF is moving up.  2. The time of day is a very familiar one for trending moves to begin.  3. There are no significant economic news releases pending.

As price moves up we remove the risk from the trade by moving our stop loss to a profit stop.  We see price slow down at our Target 1, which is very close to yesterday’s high.  One last push higher through Target 2 and a dip below closes the trade and concludes the week.

Janet Yellen’s speech on Wednesday was bullish for the US economy and the stock markets continue higher.

Good luck with your trading and enjoy your weekend!

Back Tuesday if we find a trade.