The CHF set up nicely for a short after the US economic news – which created some bearish USD sentiment.  After 3 lower highs which began with a double top, we see a familiar pattern of the breakout shorts getting wash and rinsed.  As price closes below the Asian low… taking out the preceding 3 hours of range, we enter short with a Reward to Risk of 4:1 to our Target 2.

Price moves quickly down to our Target 2 and also completes a very familiar pattern.

Trading has been easier this week.

Good luck with your trading!  Enjoy your weekend!

Back Tuesday if we find a trade.

Some nice setups in the majors this session.  The JPY had a gorgeous setup after the US News.

The AUD bounced higher with the US traders today.  Lots of talk about China’s slowing growth among institutional traders today…which one would think would negatively impact the AUD but experience has taught us to read the technicals and take the fundamentals in stride.

This is a very nice pattern with a higher low and continuation to the Asian session high.  At the first sign of rejection above the Asian session high and a bearish candle following, we exit the trade.

Keep in mind that the North American traders are on DST this week and this one hour shift will have North American traders starting an hour earlier than last week until the end of the month when the UK and Europe move their clocks ahead.

Back tomorrow if we find a trade.  A technical glitch yesterday prevented us from posting.

Good luck with your trading!

GBP climbs tentatively higher.  After the news,we patiently wait for an enticing setup.  With a 13 pip stop loss and a potential 56 pip reward, we enter long.  Our first major hurdle is yesterday’s high.  Price is not able to close above it at first and more importantly a wicky candle forms – which is a sign of sellers entering. We place the profit stop just under yesterday’s high and the next candle closes the trade.

Price subsequently moves to our Target 2… in a 3 Drives pattern… without us.

Lots of economic news on Thursday.  Geopolitical issues have abated somewhat today.  If things heat up again, keep an eye on the CHF pairs.

Back tomorrow if we find a trade.  Keep stops tight as the market is potentially very volatile all week.

Good luck with your trading!

The EUR remains off its high from last week.  Very subdued trading during the first half of the UK session. The US traders pushed the EUR higher then reversed it with a close back within the Asian session level.  An entry is found with an 18 pips stop loss.  Price moves down testing session lows before moving down further.  As price bounces off yesterday’s low, the trade is closed, just before the UK session ends.

Despite the geo-political climate trading overall was subdued in the majors.

Good luck with your trading!  Keep your stops tight as extreme volatility could occur in a blink with the Ukraine situation.

Back tomorrow if we find a trade.

AUD sells off during Asian session and reverses its losses during the UK session.

This is one of my favourite trade setups.  When the Asian session moves the AUD one way, the UK traders will very frequently reverse the move.  The European traders (starting an hour before the UK traders) ran the stops of the Asian traders creating the low of the day.  The London traders seeing the pair has run its range reverse the move and start running stops on the European traders.

By following the UK traders once price indicates their intention, (not guessing) with an affordable stop loss, the question is how profitable will the trade be before the US news which is in 2 rounds today?  We tighten our stop loss in advance of the news – US Employment numbers are always scrutinized and the market tends to be very reactive to surprises.

Although we use our Target 2 for the R:R ratio, in trading this pattern we are hoping to get to the Asian session high – not necessarily to our T1 and T2.  There’s an old Wall Street adage -“pigs get fat but hogs get slaughtered”.  If the candles indicate there is momentum above the Asian high – wonderful – lock in more profit…but it doesn’t usually with this pattern, so don’t be greedy – read price!

Good luck with your trading!

Back tomorrow if we find a trade.  By the way, I have a former student who did a lot better than me yesterday by shorting the EUR after the triple top…while I was focused on the GBP short.