Hello everyone,
As I was commenting on yesterday’s video, I was looking to enter short today on EUR/AUD upon the breakout of the 1.6625 intra-week support line. That was undoubtly the key level to watch and where I had my sound alarm placed.
Well, my sound alarm went off this morning as the London session wore off and I was all ready to click on the “sell” button upon signal… a signal that never happened! Indeed, price broke through that 1.6625 key level like a knife through warm butter and it never looked back… and there my mouse cursor remained on the sell button, all frustrated and upset.
Eventually, EUR/AUD had plummeted for another 100 pips by the time I decided to call it a day and get some fresh air to cool myself off. Oh well, trading is like a capricious young lady: it can be the most delightful creature but also it can make you want to tear your hair out on occasion :)
Video below.
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Hello traders!
Well, I am sure every trader on this side of the Universe had his sound alarm at 1.6000 on EURUSD. Or at least I did myself and today it finally went off… If this keeps going like this I will have to sell my Audi and buy a Chrysler / Ford / Dodge in stead!
Anyway, so this juggernaut keeps on scoring new historical highs and I am going to try to hop along. The truth is that this currency pair is in fact one of my least favorite pairs of all because it hasn’t given me stellar results in the past. But what can I say, I think all the elements are falling in line on this one: a flat-top triangle giving way in the direction of the moving averages, the world selling off the dollar like there’s no tomorrow, a strong Euro across the board, some ECB member hinting a possible rate-rise in the near future (gasp!) if the inflation keeps raising in the Euro-zone, etc…
I am not very sure about this trade to be honest -probably because, like I just said, my track record on EURUSD is less-than-appealing to be frank- but I am just going to give it a try. Let’s see how it goes from here. There’s a screenshot uploaded below.
PS: Ops I forgot to state my entry and exit levels: I have my buy stop order right above today’s candle at 1.6020, the stoploss will be right below that very candle at 1.5830 and I am aiming for the 1.6400 whereabouts!
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Hello folks,
Today I would like to talk about a type of trading I don’t usually conduct: trend-breakout trading. In a nutshell, this strategy attempts to profit from the initial breakout swing taking place just as a trend comes to an end after a momentum breakout thrust.
I usually don’t do it because of the higher degree of risk it involves: at the end of the day, you’re still fighting the overall market bias, so it takes some courage! However, if properly done, you can profit from the quick moves we usually see upon a trendline-violation: stoploss hunting might have something to do with that.
Anyway, today’s trade comes from Tim - a British fellow who took my Forex trading course a while back. As I told him this morning, it was a risky-yet-intelligent trade. Let me elaborate a bit further on the following video…
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Hello folks!
On yesterday’s post I was commenting that it seems like the AUD is getting stronger against the GBP and against the EUR and I was ready to take short entries on either GBPAUD or EURUAD. Well, today I got my entry signal on GBPAUD right as the London session opened up: I was looking to trade a continuation move to the downside upon a breakout-pullback-continuation pattern clearly identifiable in the 4H chart throughout last night’s Tokyo session. Early in the morning the GBPAUD ticked a new low and there’s where I jumped short into this trade.
It’s been a beautiful move down all day long and as I type these lines I am sitting at +203 pips in profit. I am not ready yet to move stop to breakeven or to cash out a portion of my position so I as of right now I am still exposed to this trade. I would not be surprised to see a little bit of a retracement now that we’ve had three consecutive bearish days (profit takings they call it), but I will hold to my guns at least until Thursday when the Bank of England will release the Interest Rates announcement - analysts expect a 0.25% rate cut and I certainly hope they deliver!
Feel free to comment on this trade or on the GBP outlook (*cough* bearish *cough*) here on this post :)
Here below you may watch the video.
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Hello folks,
Today Friday I haven’t taken any trade (as you probably know by now I dislike trading on Fridays), but I can finally show you the CADCHF trade I entered two days ago.
I had already taken half of the lot size out at +106 pips and trailed my stoploss to breakeven on the remaining portion of the trade. Well, unfortunately price retraced last night just enough to kick me out of the trade. So all in all +106 and +0 on this trade, which averages at +53 altogether. Not a bad trade.
Here’s the video:
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