Hello everyone,

It’s been a very active end of the week after a quiet Monday, Tuesday and Wednesday when I found no decent trades at all. See, being patient and waiting for the ducks to line up before pulling the trigger does pay off. In my opinion, it’s crucial for long term Forex trading success to stay sidelined until a decent setup pops up. You don’t want to be taking half-assed trades guys, wait for the A-trades and your pip-count will slowly-but-steadily move forth.

Anyway, enough of the rambling Hector, let’s get down to business: Three trades taken between yesterday and today. Yesterday, I entered short on AUDNZD in what it seemed a nice intraday swing trade after a reversal formation in the direction of the main trend. Price moved about 15 pips in my direction but then it meandered sideways for the rest of the day. There were clear signals that this bad boy had lost momentum so I decided to tighten down my stoploss and switched off the trading station for the day. Well, today Friday when I woke up I wasn’t surprised to see my stoploss having been hit throughout the night at -17 pips. That trade had turned nasty at some point mid-way through and via price reading and in-trade management I managed to cut the loss to only -17 pips, so I’m pretty happy about that. Not all trades are winners. In fact, as I say on the course, one of my Golden Rules of Sensible Trading is that your job as a trader is not to score a 100% win/loss ratio but rather to cut your losses small; if you do that, your winners will take care of the rest in the long run.

The first trade I took this morning was a London Open Breakout trade on EURCAD. It had been consolidating within a triangle throughout the whole Tokyo session and eventually it broke down in the direction of the overall trend (I love those 3 SMAs!!!) as Euro-volume showed up in the markets. Stress-free trade that moved in my direction since the very beginning until my final target at +61 pips.

Finally, I took a position trade off the Daily chart on EURJPY which is still open and will remain open over the weekend. It seems like the Carry Trading theme is still strong and rock’n'rolling, so I have hopped onboard with the flow. At the time of writing these lines, it’s sitting at +89 pips and rising. Normally, I wouldn’t have entered this trade (EURJPY) as I already had a EUR-related trade open (EURCAD) in order to not double-expose myself to any possible EUR-volatility, but since this is a long term trade I saw no incompatibilities between the two of them.


This week’s results:

• Closed trades: AUDNZD -17 pips and EURCAD +61 pips
• Open trades (as of time of writing these lines): EURJPY +89 pips (opened today) and GBPUSD +202 pips (opened 19th of June)

June’s results:

• Closed trades +246 pips
• Open trades (as of time of writing these lines): +291 pips

Anyway, here below I upload videos of the three trades reviewed in this entry.


Have a nice weekend everyone!

Hello everyone,

Upon asking guidance to some professional coders, I have implemented some new variables on my 3SMA Trend Filter indicator. As a result, now the indicator recognizes when all the 3 SMAs are pointing in the same direction and also when it recognizes some degree of parallelism between them three. So, all in all, it simple filters out non-trending scenarios as per my 3SMA system better than the previous version.

As usual, you may download it for free at the first chapter of my forex trading course, right at the bottom of the page.

Cheers,


-HECTOR-

Hello everyone,

Today it’s all about the JPY-crosses. They are reaching important decision-taking levels across the board after the sharp decline we’ve seen in the last couple of days. EURJPY, USDJPY and GBPJPY are one by one reaching the confluence levels I had designed in the my trade plans for these pairs just off their respective Dynamic Areas of Support. From now on, it’s all about waiting to see if those levels of confluence (see my Forex Course chapter #1 to know what a Level of Confluence is) do actually hold the decline and search for indications that a new up-swing is in the making. As I was saying last week, Carry Trading has been *the* trading theme during the last year so in my opinion these levels being tested today are indeed decision-taking levels, at least for the time being.

I explain my views on JPY-crosses in one of the videos below, and the other video shows today’s trading plans for other currency pairs.

Hello everyone,

Yesterday I received an email from someone wondering if my 3 SMA system can be turned from a swing trading system into a scalping one. The answer is yes, definitely. In fact, few weeks ago a couple of guys (one from Germany and the other fellow from Switzerland) told me that they use similar trading techniques for their intraday trades.

So today, since my own trading setups seemed on standby mode (no trades for me today once again), I decided to zoom into the very short term time frames and see if I could record a video using my 3 SMA system in order to scalp the market off the 15 and 5 minute charts. So here I show you guys how to implement my Forex trading techniques into those micro time frames. I am personally not an scalper and my favorite time frames remain the Hourly and 4H charts, but you can definitely zoom as far as you want into your charts and still be able to apply the 3 SMA to scalp some pips off the market.

First video below is that scalping video, and the second one shows the pairs I had in my Watch List today.

Hello everyone,

Today monday there were some interesting options out there but non of them quite materialized. GBPUSD was setting up nicely for a London Open Breakout type of trade right above the 2.0000 century number but seems like price is undecided around that key level, so as the morning wore on I just wasn’t seeing the momentum there and I decided to pass altogether.

There were also some setups worth following in the longer time frames but from an intraday point of view, like I said, nothing particular tickling my interest, so I decided to call it an early day at noon and head out for the rest of the day.