FOREX-NATION

After following this pair downward for a while in a fairly easy to read step type pattern, the price has reversed. It is perfectly reasonable to presume that a short trade would have been stopped out at this point, but if our money management rules were in place and our discipline has held we would only be looking at a breakeven outcome.

This is an acceptable result, and we then observe before committing ourselves to another open position. In the hours that follow we can watch how the price reacts to this changing sentiment of traders, noting where are the swing highs and the swing lows to inform us of market condition.

Continue reading–>FOREX DAWN| EUR/GBP Changes

I just want to start by having a quick look at the ‘strength meter’ of yesterday and comparing it with today. Yesterday it clearly shows the market in ‘safe haven’ buying mode, the Dollar and the Yen were the master currencies. With this type of pattern we certainly wouldn’t be looking to sell USD or JPY so our probability of winning has just increased. As a purely technical trader I am less worried with the why, and more concerned with being aware of what’s happening and acting upon it.

Today we can see them both weakening a little. Notice that the Yen leads the way, it is much more volatile than the

Continue reading–>FOREX DAWN| EUR/JPY & GBP/USD Breakouts

A nice classic breakout trade this morning during the London session. All day yesterday and overnight cable has been ranging (blue zone), and it was just a matter of patients to see if it wanted to continue in that mode or push lower. In my opinion it was unlikely to push higher as that 1.55 ceiling has kept things in check since the end of February. This recent downward move with such high momentum could be the start of a further push southwards, worth keeping an eye on anyway.

Price broke support then gave us a nice little pullback on the 5min chart to allow an entry with a 30pip SL. First

Continue reading–>FOREX DAWN| Sterling Breakout

Hi, nice to be back after a break doing other things. Two trades today, this first one with the EUR/JPY pair was quite satisfying as I very nearly didn’t take it due to the 30pip stop, and psychologically first day back had it gone against me it would have been a bit of a blow. Happily the strong momentum carried through the support level and I was able to cash in 1 lot for 30pips quite quickly. The second lot was closed at the 50pip target level. This for me was a counter trend play so I was happy enough to get out at that point. 80pips in total for this

Continue reading–>FOREX DAWN| Back to Trading with 2 Trades

This morning I took another 50pips on the break of that 1.5300 round number I mentioned yesterday, but that’s me done for the week and I shall be on holiday for all of next week. I hope the market gives generously to you.

It’s important to stand back from your charts sometimes and look at the patterns that are forming for different pairs, it helps a trader to understand at a deeper level the way certain pairs move, or what tendance they are showing at the moment. This knowledge allows us to take realistic decisions based on that observed near history market structure, and I am talking about looking at a few

Continue reading–>FOREX DAWN| Chart Watching

As I mentioned briefly yesterday I thought GBP/USD was going into a range which it seems to have done. The range is about 150pips so with some nice overnight Asian consolidation in the middle of that larger range the breakout set-up was ready this morning at the start of the European session. I took 50pips on this one today, it spiked a little bit more, but 50 was my target given the condition of the market. 5135 now being the support I’ll be watching for a possible break lower, alternatively the 1.5300 is the big resistance line to be crossed if Cable wants to move higher. It was a repeat scenario

Continue reading–>FOREX DAWN| Sterling Breaks Down Again

No trades yesterday and two Sterling pair trades this morning. There’s nothing like a General Election call to send Mr Cable running for the hills…….. I don’t think that was the reason but it sounds important, but quite frankly who cares. I’ve seen British goverments from left to right and back again and they were all full of  promises they knew they would never keep…….. bullshit politicians I’ve had my fair share of thank you. Next!

So anyway looking at the strength indicator this morning in the European session we could clearly see the pound falling across the board. Moving across to the GBP charts I was then looking for potential entry

Continue reading–>FOREX DAWN| Sterling Lost Strength