The EUR set up nicely overnight.  It is very important to move stops down as reversals can happen quickly.  This trade looked like it had more downside to it, but it didn’t…not a bad trade for this holiday period.  Always be willing to accept what the market will give you and don’t be greedy.

Enjoy your weekend.

I’ll be back Tuesday.

AUD trade looked good overnight as did the CAD.  The AUD moved up as the UK session got underway and abruptly reversed.  An entry is found on the second bearish candle – meeting our reward to risk ratio of 3:1.  This is an extremely important first element to any trade!  Then, once you can get the risk out of the trade altogether and lock in some profits – do so.  When price consolidates or reaches support or resistance levels, move your stops down and keep moving them down to lock in more profits.  The market can reverse in a blink, so always use a stop and always get the risk out of your trades as soon as possible by placing your stop loss/take profit just above/below structure.

The target levels that I use are extremely powerful and rarely will price exceed Target 2.  After Target 2 is reached the market is much more likely to reverse, than it is to continue further past the target.  The large institutions are using very similiar levels and hence the reversal.  On rare days, Target 2 will be blown through, but this is usually event driven.  I watch the candles for signs that the move is exhausted at such times, and always lock in the profits.

Let’s see how the week wraps up…

Low volumes and holidays are making it difficult to find good trade setups in the majors.  The AUD looked best with a low risk entry, but did not produce many pips.  September will bring volume back to the markets so be patient and careful in the meantime.

Let’s see what tomorrow brings…

There were no high probability trade setups overnight in the majors.  Be disciplined and don’t risk your money on low probability trade setups.  Discipline and patience are rewarded in this profession.

Let’s see what tomorrow brings.

The EUR made a classic pattern overnight.  This is a favourite setup and occurs with great frequency in the GBP and EUR.  Study this pattern closely and watch for it!  There are variations to it and nuances that I teach, but this one pattern can make a trader a lot of money over time!  Money management is essential, with the correct reward to risk ratio of 3:1 or higher.

The week went by without a single GBP trade setup with any appeal.  The end results were fine despite it being a very slow summer holiday period.

Let’s see what next week brings…

Enjoy the weekend.

Questions are always welcomed.  Michael@privateforexcoaching.com

See you back Tuesday.

Michael

The EUR offered  an advanced level  trade setup overnight.  What made the EUR trade work was a number of factors.  The European market opens an hour before the UK market.  We can see that the initial price action was down as the European session got underway.  Note the 2 candles that penetrated the low of the previous day, and closed back above.  This indicates that yesterday’s low is strong support with buyers entering at this level.  As the UK session begins, the EUR moves up, pulls back, and bounces off the previous day’s low once again.  This time it has put in a higher low (the Big Hint)  for the European session.  After a bullish candle follows and with a low risk stop placed below yesterday’s low, an entry is taken.

When trading the EUR it is often useful to look at the CHF and see if the inverse is occurring.  If the EURUSD is moving up then the USDCHF is likely to be moving down – with a similar pattern.  I prefer to trade the EUR, but either is fine.

As the EUR price moved up, session resistance was tested which had also been a level of resistance in the US session the day before.  Do not fight price ever.  If it come back down and you’re stopped out – fine.  If it moves through resistance, move your stop up to protect your initial profits and keep moving your stop up to protect profits.  Stops are best placed under price structure, but always do the arithmetic before entering a trade to determine if the the Reward to Risk ratio is at least 3:1 – this means risking no more than 15 pips to get 45 + pips.  Our targets are hit and we are done.

Let’s see if the GBP will give us an entry tomorrow before the week closes.

The trading has been tricky this week, and I attribute this to holidays and low volumes.

If you have any questions or would like to know more about my course, please email me.
Michael@privateforexcoaching.com

See you back tomorrow.