Forex Tips

Tricky trading of the GBP overnight but some useful tips come from it.  Never trade an early breakout…wait for the retest and confirmed signs of trend direction.  Be aware of range bottoms and tops as well as the previous day’s highs and lows.  When looking at last night’s GBP there is symmetry in its pattern as it oscillates.  I was taught to have uncluttered charts and to step back and look for symmetry.  If you move up to a daily chart or just scroll back through an hourly or 15 minute chart, you will frequently see reoccurring patterns of symmetrical price movement.

If you went long last night or short this morning, it’s prudent to keep a tight stop near the top or bottom of the range and not give back your gains.  Don’t be greedy and accept what the market offers.

If you are new to this blog, read through the other posts and you will find many tips that can be applied over and over to your trading.  If you would like to learn more, please contact me for details about my private coaching.

Good luck in your trading!

Not being a fan of Sunday/Monday trading – I passed on any trades overnight.   At first glance, the GBP may have appeared to be an easy short trade… as the down trend continued progressively through the Asian session with a substantial move.

Let’s see what the week brings.

Good luck in your trading and remain disciplined!

Beautiful Reward to Risk Ratio GBP Trade Setup.

These are not rare and if you know how to spot them, trading is much easier.  The other majors offered up nice trades too, as the week came to an end.

I am not a fan of scanning through 12 pairs to trade or even trading the exotic pairs.  I was taught by a “Whale” to get to know a few of the major pairs intimately and focus on them.  I have known many traders who have lost their accounts trading JPY crosses.
Once you are intimately familiar with the trading patterns of the majors or even one or two of the majors, you can make an enormous amount of money specializing in those pairs alone.  This business is about finding your edge, controlling your risk, being consistent and keeping it simple to be successful.

I hope you have had a very profitable week!

Enjoy the weekend.

The GBP yesterday had another higher swing low and today’s high took out Wednesday’s swing high.
Breakout traders were stopped out and an entry long presented itself.  Although the GBP didn’t make it to my first target, it had offered enough pips in advance of the US news to take a nice profit and avoid event risk.  Take what the market offers and don’t be greedy.  Keep your Reward to Risk ratio in mind.  Don’t try to squeeze out a few more pips in front of major news releases.

Let’s see what tomorrow brings to close the week out.

Good luck!

Michael

Keeping your eyes on Swing Highs and Swing Lows is very revealing of trend continuation and reversal.  Although I intraday trade from the 15 minute chart, I like to look at the 60 minute chart for clues as to how the daily trends and reversals are shaping up.

Three days in one direction and a reversal is quite common.  Let the charts reveal their clues… learn how to read them – NOT useless ambiguous lagging indicators.

Good luck in your trading!

GBP puts in its range on a news sentiment day, then moves back to where it started yesterday.

News has been mostly negative to begin the week – especially out of Europe.  After the market digested the ZEW sentiment, it consolidated before making an abrupt plunge downward after Dr. Bernanke began his comments.  With a stop placed above the structure high and our targets set, we were rewarded.

Note the first move as the UK opens is often a fake one, as to what the trend direction for the session will be or is merely to attract breakout traders. The lower highs on pullbacks reveal clues to the true session trend.  Once the breakout traders have been whipsawed and the ZEW news is out of the way, a low risk entry is available.

Great trading everyone.

Questions are welcomed.

Michael