Hello everyone!

Once again, I found a triangle set up that broke out in the direction of the main trend and, as usual, it was a relatively stress-free trade (is there such a thing as stress-free trading?!?).

Anyway, this was a downward-slopping triangle based on last week’s tripple bottom at 1.5182. Moving Averages and trendlines were preasuring price to the downside and finally it proved too much for the poor little tripple bottom, which gave way in the first half of London session (my favorite trading shift). One of the things I love the most about breakouts is that when they finally ocur, they do so with momentum as market has been expecting it in anticipation. Entry orders are filled in and price swings away with euphoria. Moral of the story: +70 pips within 4 hours more less.

The trade walk-through is explained is detail in the video below

Hi guys!

Today a nice long opportunity was panning out on GBPJPY. It was actually a similar formation I spotted a couple of days ago on EURJPY (still on that trade for +80 pips profit as I write these lines by the way), meaning a “W” formation off the longer time frame up-channel bottom. In fact, both set ups are virtually identical.

But why have I passed on the GBPJPY whereas I took that EURJPY entry few days ago? because today is Friday afternoon and I NEVER enter any position prior the weekend. It’s a golden rule of trading: don’t trade Fridays beyond noon London time. The reasons behind this statement are explained on the video below.

Have a nice weekend folks!

Hello everyone!

Today there are a few currency pairs offering similar set-ups, all valid from a Technical Analysis point of view. Here I elaborate about two trades that, albeit I like them on the chart, I have decided to pass on them. They are longs on CHFJPY and EURCHF. But why oh why? because I am still in the market from yesterday’s long on EURJPY (see a couple of posts below on this journal).

See, I didn’t want to over-expose myself to the markets. Being long already on EURJPY (+75 pips in profit at the time of writing these lines) means that I am already betting on EUR getting stronger and JPY getting weaker, so if I entered again long on either CHFJPY or EURCHF, I would be virtually adding up my exposure to my EUR-strength / JPY-weakness stand. I am a firm believer in diversifying my risk exposure, so until my EURJPY trade is closed out (or stoploss moved to breakeven), I will refrain from entering any trade related to either of those two currencies. The last thing I want to be is being wrong in my market understanding and being stuck in a double position that’s turning belly-up.

Money Management and common sense are crucial when it comes to trading. Limit your exposure, cherry-pick your trades, and life will be much smoother.

Cheers!

Hello again!

Ever heard of Murphy’s Law? you know, the one stating that toasted bread will always land buttered-side-down. Murphy was quite a sharp fellow, unfortunately.

Thing is that I had been monitoring USDCAD for a couple of days searching for an opportunity to short it and ride the crystal-clear current downtrend. Well, I had studied the charts, I had my trade plan properly set and learned by heart, I had my live account platform logged in and I was all pumped up anxiously waiting for the signal. And here I decided to scan other markets while waiting in case there’s another opportunity abound (finding the previous post’s EURJPY set-up). Guess what? USDCAD fires off right then and there, while I was filling the EURJPY chart with the typical Technical Analysis mambo jumbo! By the time I turned my head back over into USDCAD, it had run away 20-something pips already :(

Oh man….

Hello everyone!

EURJPY has been showing a beautiful up-channel on the 4-Hour chart during the last few weeks. It’s been for sure one of the best up-trends of the year so far. Well, as a trend trader, EURJPY has been on my watch-list all along and yesterday 25th of april I saw an opportunity to ride what I expect to be a new swing up to new heights.

The eyebrow-raiser has been the “W” formation right off the channel bottom. Once the W’s retracement trendline had been broken and retested, the only resistance level I wanted to see breached before pulling the trigger was 162.00, so I set my Stop Buy order at 162.05 which got triggered the morning after.

Have a look at the video below for a detailed walk-through of the trade.

Cheers!

POSTERIOR UPDATE #1: half position out for +75, stoploss moved to breakeven.
POSTERIOR UPDATE #2: second half closed out for +85. I am seeing weakness in the uptrend after a whole week of range-bound market price action.