The EUR broke through the Asian session low very quickly once the UK session got underway – without retesting the level.  I learned a long time ago from my mentor, it’s never a good idea to chase a trade.

The CHF moves inversely to the EUR because the Franc is the cross not the US dollar.  I typically use the CHF to confirm (inversely) the EUR setups.  In this case, when the CHF made a lower high, just as the EUR  made a higher low, I opted for the CHF short.  The CHF offered a tighter stop loss and with some major US news releases around the corner, it seemed like the better trade at the time.  The Reward to Risk was 4:1 to our Target 2.  It turns out that there was more money to be made by taking the EUR long.  Oh well…that’s trading.

Let’s see what Friday brings us in the way of opportunity to close the week.

Good luck with your trades.

The EUR and AUD set up very nicely during the UK session.  This is turning into a great week for trading and as traders know, some weeks are much better than others.  The USD continues to strengthen. We are intraday traders not macro economists…so we are happy to find trade setups that meet our criteria, require low risk entries and bank our profits each session.  We trade what we see each session and wish “position traders” all the best.  We look for signs of  where the BIG institutional money is entering and exiting their positions each session.

With the reaction to the UK news behind us, we saw a short opportunity in both the EUR and AUD.  The EUR trade was a 4:1 plus Reward to Risk ratio setup.  Although it didn’t make it as far as our Targets 1 and 2 before the US Economic news releases, we are very happy with the trade.  Our targets enable us to determine whether our Reward to Risk ratio minimum of 3:1 to our Target 2 is available, and once we enter a trade, we protect our profits and read price for signs that the market may be turning or continuing.   If price is slowing down, showing signs of reversing or event risk is entering the market, we tighten our “take profit levels” or close the trade.  Where price goes after that is inconsequential.

It has taken me years of trading experience to develop the methodology.  I was taught by the best and the rest comes from experience.

So far, it’s been a great week.

Good luck with your trading!

Back tomorrow.

EURGBP trade to begin our trading week.  I teach my students to keep an eye on this pair when the EUR is moving one direction and the GBP the other direction.  Two advantages to trading this pair include; it tends to move at a slower and steadier pace than the either the EUR or GBP and it is crossed with the GBP, so currently each pip is worth 1.54 times what a USD crossed pair is worth.

The EUR began to move up during the UK session with the GBP moving downward.  After a wicky candle bottom the EURGBP began to rise and close back above its Asian session low.  It tested and re-tested the Asian session high before rising through our Targets 1 and 2.  With a small stop and a greater that 3:1 Reward to Risk ratio, this trade started our week very positively.  As the UK session ended, it was still looking like it had a bit of momentum to the upside, so we held on a few minutes longer than usual to close it out.  This was an excellent way to begin the week.

There was also a very nice setup on the GBP (not shown) so all in all, a very profitable session.

Let’s see what the rest of the week brings us.

Good luck with your trading!

The AUD trades continue this week.  We haven’t had any stellar trades with the AUD this week, but they add up.  We waited until after the UK economic release to enter short.  With a small stop just above yesterday’s high, our minimum 3:1 Reward to Risk ratio to our Target 2 criterion was met.

The AUD had been unable to close above yesterday’s high once the UK traders began their session.  Price moved down to test and re-test the Asian session low, before dropping further.  As price penetrated our Target 1 and began to pull back we exited the trade for acceptable gains.  Once we reach Target 1, we are very protective of our profits.  After the US economic release, price dropped through our Target 2, but we are very comfortable with our execution.  Successful and consistent trading has more to do with discipline than attempting to get the maximum number of pips each trade.

Enjoy your weekend!

Back Tuesday.

AUD began climbing higher shortly after the UK session got underway, but could not close above yesterday’s high.  We observe price for a while and with no significant news releases pending, we enter short.   We look to see what will happen near the Asian session low.  Price continues downward and we protect our profits by placing a “take profit” just above the Asian session low ( not shown on the chart ) but highly recommended.  As a wicky bottom candle forms below the Asian session low, we wonder if buyers are entering the market.

We are now prepared to close the trade if price retraces, so as to protect more profits.  I personally like to place my “take profit” above/below structure, or lock in pips usually but not always in 10 pip increments.  Price continues down one more candle and we close on the following candle as price begins to retrace.  It would be nice to have had a larger move downward, but we can only get what the market offers on any given day.  It is much more important to be able to read price and manage your trades, than to concern yourself with big moves each day.  Some weeks the market is much more generous than other weeks.

Happy Valentine’s Day!

Good luck with your trading!

The AUD set up nicely fairly early in the trading session, allowing for a short with a very small stop loss. Fortunately is was not volatile after the UK news which certainly affected the GBP, EUR, CHF and EURGBP pairs.

I like this setup and really love it when the Asian session has had a extended range.  With a very tight stop, I was hoping that price would move down to at least the Asian session low, as it was making no signs of moving up to test the Asian session high.  Alas the trade fizzled out at yesterday’s high and that was it.

Modest gains are always better than modest losses.  After the UK news some trade setups were very evident, but I don’t like large stop losses, so I walk away from those types of setups.  There is nothing easy about forex trading and some days are humbling.  Let’s see what tomorrow brings.

Good luck with your trading!