Hello everyone,

Not much to talk about from my end today. The only decent setups I dug out from my charts this morning where the CAD crosses, which were in a clear downtrend on the larger scope of things and entrapped within consolidating ranges in the recent past, so I was basically waiting for a breakout of those ranges to the downside in the direction of the main trend. Non the less, those setups were fished out of the 4H charts so I reckon they will take a while to give their respective entry signals. For the time being, it’s waiting time until my price-alarms go off.



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Hello everyone!

Today I was only following GBPJPY for a possible short entry in the direction of the downtrend as seen on the Hourly chart.

During last night’s Tokyo session we saw a healthy retrace back up to the Dynamic Area of Resistance so I began hawking the chart for a reversal formation indicating that a new whole down-swing might be in the cards. In fact, I was seeing a retracement channel peaking out with an obvious double top. Basically, my Trade Plan was to initiate a short position if price broke that retracement channel to the downside.

As it turned out, that double top resistance was breached, making new highs for the day and thus my whole Trade Plan was violated for good. At that time I decided to shut down the trading station and call it an early day. You see, as I explain on chapter #1 of my Forex trading course elaborating -and respecting- your own Trade Plans is crucial for success in order to weed out those setups that are showing weakness. A trade plan is nothing but the desired script you want price to follow; should price decide to not pay by your rules (AKA your trade plan), why would you play with price yourself? If your trade plan is torn apart it’s time to throw that setup to the bin and search for trades somewhere else.

Keeping a Trade Plan for every trade has kept me away a hundred times from losing trades!



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Hello everyone,

Today we’ve been seeing quite a USD-strength move across the board during the London session: EURUSD has plummeted 200 pips, GBPUSD 250 pips and AUDUSD 150 pips, while USDCHF rocketed 160 pips and USDCAD 150 pips. So why am I happy about it? if you remember, last Thursday I entered short on USDCHF (see the entry recorded few posts down below in this blog) and I have been lucky enough to hit my first target at +116 pips on the first half of the trade and moving my stop to breakeven on the second half right before price began cruising back up against my interests. As you guys know, I like to follow a dual-exit strategy on my typical swing trades, and that double-exit policy has not only netted me some pips but also has saved my butt from a losing trade. So, all in all, not a bad result at all considering the wild ride we’ve seen today. Perhaps I lucked out a bit there? :p

Other than that, I shorted the EURJPY early in the morning. Actually, it triggered within the hour of sending my setups to the guys on my mailing list. I told you the setup was about to trigger, didn’t I? I hope you folks had time to follow it in real time. It was based on the overnight pullback to retest Friday’s low at 163.70. That level held and from there we got a clear breakout-pullback-continuation pattern of the retracement trendline which flagged my short entry. Once again, as usual, first half of the trade was pulled out at the previous swing low for +51 pips, letting the second half of the trade run to the next round number for +101 pips. As you guys can see, I use the same tools over and over and over. I believe that the most profitable Forex traders are not those familiar or knowledgeable about every single aspect of trading, but rather those who master a tight selection of tools and exploit them day in and day out. That’s what I personally try to do.

The first video below is the EURJPY trade and the second is the USDCHF trade.



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If you liked this video, please rate it at YouTube - click here!

Hello everyone,

Today I began my early-morning email with the following sentence: “Friday + GBP news + CAD news + range bound charts = ugly stuff“.

As you guys know, Friday is my least favorite day to trade and I like to finish my trading shift around noon London time. The fact that we had important news coming from England and Canada during the first half of the London session wasn’t helping. And, on top of that, I just couldn’t find any interesting setup on the shorter time frames. No wonder I ended my mail like this: “As a trader, it’s crucial to discern when it’s time to search for trades and when it’s time to sit it out on the bench“. And indeed I decided to sit on the bench all morning long!

Other than that, I am still short on USDCHF from yesterday. Today we have seen quite a retrace up on the pair, but I am not overly concerned about it. At the end of the day, many people exploited the 100-pip breakout we saw yesterday and therefore it’s normal to see some profit-takings prior to the weekend. So I am certainly holding my open trade through the weekend. At the end of the day, this is a long term trade and it’ll take some time to fully give out the profits (if it’s indeed to give them out at all to begin with, you never know!).

Enjoy your weekend folks, talk to you on Monday!


-HECTOR-

Hello everyone,

I have been focusing mostly on the CHF as of lately. Yesterday if you remember I took a long entry on the EURCHF upon a flag breakout in the direction of the main trend. Well, price didn’t find buyers enough to push it to new heights and it collapsed this morning, so I closed that trade out for a -17 pip loss. See the video uploaded below.

In the other hand, as I was telling the guys in my mailing list this morning, I was only and exclusively following USDCHF for a short entry. All of you folks following this blog and my daily mails know that this setup has been pinned on my Watch List for like ever already. Indeed, all week long we’ve been ranging sideways right below the 119.00 key resistance level on the weekly chart. My trade plan was basically look for a breakout of that consolidation range to the downside which happened early this morning. From that point on, I had green lights to seek for my long-awaited short position.

It is a long term trade so it’s going to take quite a while to fully unfold (currently sitting at +52 pips as I type these lines), so you guys gotta be a little bit patient before I can upload the video. However, I had some free time so I recorded a quick video showing you the analysis process that I have followed before triggering my short position so you understand a bit better the way I work my way around the charts. I hope you all find it interesting.



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If you liked this video, please rate it at YouTube - click here!