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This should have gone up yesterday but I ran out of time, anyway as I always point out this blog is about learning not signals. As time moves on we are building up a proven history of how this breakout strategy keeps on working, and the reason it keeps working is because we are following the big money. They decide, we follow.
A pretty straightforward breakdown of support from a ranging condition, the attempts at a move higher in price not hooking us in, as the overall trend is most obviously down. On a 5min chart you could have gotten in a little earlier trading a breakout of a smaller range within the
Continue reading–>FOREX DAWN| EUR/GBP Setup
I go over not only daily pivots, but also how to use them together with support/resistance and fib. lines to find trade setups. Here’s how
After a very uneventful day yesterday the market exploded back to life today during both the European and NY sessions. The trading day began with serious market jitters over a multitude of problems: European stocks went down sharply (FTSE and DAX around 2%), oil off around 2 bucks, worries over health of euro zone banks, worries over France’s AAA rating, worries over China’s growth, worries over BP oil spill. Risk aversion remains very high.
With regards to the health of the euro banks I just mentioned, the European Central Bank sent announced last night that banks in the eurozone nations faced having to write off another €195 billion in bad loans
Continue reading–>EUR/USD Wrap Up for June 1
Apologies in advance for the audio quality. Apparently my voice was too loud for the mic this time, but if you can get past the audio, I think it’s a decent analysis of the week’s events and set ups.
Hi all, no trading at the beginning of the week as nothing was setting up the way I like so I’ve stayed out of the market. Today I had a trade where all the boxes got ticked. A very nice overnight Asian session consolidation period with the strength indicator showing a rising Euro and the Aussie crashing out. Shorting the Aussie was the trade today, the rest was deciding with what, I found the Euro the best set up for me, but you would have made money on the Pound or Yen. A very good trade getting in on the London session push and staying with it for another buying wave in
Continue reading–>FOREX DAWN| EUR/AUD Long Trade
This pair continues to reverse dramatically on it’s year long downtrend, and normally I’m not a trader who picks tops or bottoms but with such a turbo-charged turn around I have opened 10 micro lots @ 1.4450 for a long term trade perspective. My historical data goes back to 2001 and this is as low as this pair have been since then. There is a rollover disadvantage to this pair when your buying, but with proper MM this is not really a problem.
When trading it is important to diversify your trades and have some longer term positions in your portfolio. For example I still have an open position in gold from
Continue reading–>FOREX DAWN| EUR/AUD Still the No. 1 Trade
Risk aversion has subsided lately, as global stocks are doing better, oil was up over 2 bucks, and the euro had a good morning during the European session, seeing across the board improvement. There are some who have started to argue that the EUR/USD has found a bottom, for now anyways, as the EUR/USD has begun to consolidate and inch it’s way higher over the last 48 hours after achieving its lowest level since April of 2006. A almost perfect hammer (for you candlestick followers) has also formed on the daily chart lending more credit to this argument. As I’ve made mention in previous posts, sovereign names have been selling the EUR/USD for reserve diversification purposes and this will inevitably
Continue reading–>EUR/USD: Have We Found a Bottom?
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
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