Hello everyone,
Yesterday Thursday I took a short entry on GBPAUD. The position was based on a breakout and posterior retest of the 2.1100 key support level which had been holding price above for the last two weeks. Finally, last Wednesday the bears managed to crack that level and pushed GBPAUD down for about a hundred pips before it began retracing back up to retest that 2.1100 S/R barrier from below.
Former support, once broken, becomes resistance.
We all have heard this before, haven’t we? that’s basically what I was expecting to happen and indeed the 2.1100 rejected the retracement. At that time is where I triggered my short entry. Despite the fact that price moved down to +50 pips in profits right away, I was spotting signals of temporary momentum-dry out signified by GBPAUD flopping about my entry level all afternoon long, having me sweating as I felt the heat on this trade. Eventually, I decided to offset the risk on this troublesome trade so I tightened my stoploss pretty aggressively and called it a day.
Well, as it turned out my stop loss was to be knocked out during the overnight Tokyo session setting me back for -15 pips. I am not particularly upset about this trade to be honest: I had given it a fair chance to show its true colors and I just didn’t want to continue being exposed in a trade that wouldn’t want to move in my direction.
But let’s watch the video, shall we?
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Hello everyone,
Most of you know that I dislike trading Forex on Fridays for several reasons, but I reckon a demo trade wouldn’t hurt me so I went ahead and played Forex Nintendo a little bit.
It was a nice-looking setup on GBPUSD based on the Hourly time frame. This time around however, instead of waiting for the typical reversal formations I explain over my Forex Trading Course, I used the breakout of an individual bar as my entry signal. Indeed, I spotted a spinning top forming right off a confluence of resistance so I triggered a short entry as price broke that spinning top in the direction of the moving average.
Please don’t hesitate to post your comments on this post with your feedback about this little experiment!
Posterior edit on the 11th of February: This trade hit its first target for +67 pips where I took half of the lot size out and moved stop to breakeven for the second half. Eventually, that second portion of the trade I left open got stopped out at +0.
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Hello everyone,
As I scanned through my charts this morning, I came to realize that the Japanese Yen is the only currency right now showing consistent strength across the board, especially on the 4H charts: USDJPY, CADJPY, NZDJPY, AUDJPY, etc. All of them have their respective SMAs pointing south. Eventually it was GBPJPY the one to give me the entry signal upon a text-book bounce off the Dynamic Area of Resistance, which I was able to ride for +220 and +0 pips, averaging at +110 pips in total.
All in all it’s been a pretty stress-free trade, at least for the first portion of the trade which cruised down to my first exit limit order rather quickly. Unfortunately we formed a double bottom at 204.70 (yesterday’s low) and from there it retraced to entry level where I had my stop loss trailed to breakeven. What I am liking is that if that 204.70 level breaks to the downside tomorrow we might get further shorting opportunities.
We will see tomorrow…
PS: congratulations to David, a folk who enrolled my Forex Trading Course last week and today took his first trade based on my system (it was also this very same GBPJPY setup) for a +225 pip win - Well done mate!
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Just as I was recently mentioning that the markets are warming up after the Christmas break, so are traders and I am certainly no exception to this rule.
Today the only decent trend I found was on AUDCAD on the 30m chart and apparently I wasn’t the only one - some of the folks who’ve taken my Forex Trading Course also sent me some emails letting me know that they were following this same setup. It was actually a pretty typical swing-trading setup with the Dynamic Area of Support beautifully holding price above. If you folks have read through the free chapter #1 of the course, you probably know that as long as the Dynamic Area holds the retracements the trend is intact. Well, this was the case on AUDCAD this morning and I decided to take my chances.
I managed to squeeze +28 pips on the first half of the trade and +0 pips on the second portion of my lot size, so all in all it’s been a humble +14 pips trade. Oh well, not bad as a warm up - it’s always sweet to begin the month (and the year!) in the green.
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Hello everyone,
As you all know I am still not actively looking for trades until next week, but it seems like you guys are pumped up with energy because I have received a few setups today from the guys who have taken my Forex trading course.
One of them, Todd, sent me the following email. I am going to copy/paste the email here because I think it might be useful for other folks trading my 3SMA system.
Hello Hector,
Thanks for clearing that up. I get it. I will send you a chart soon. I did find a set-up on the EUR/GBP this morning on the hourly. I didn’t see any pattern but I saw the 3 sma’s, and prices fell back to a previous support and fell back to around 50% fib level. Looked good, but on the 15m I just couldn’t figure out what would make a good signal to enter. I entered anyway and scalped a 5 pips. Stupid I know, looked like a bullish set-up just couldn’t figure what would make a valid trigger on the 15m.
Applying your method has totally changed the way I look for potential trades. That has always been my weakness.( Finding a high probability set-up )
Thanks again, love your course.
From what I gathered, Todd had found a valid setup in a solid trending pair but he hesitated when it came to find the actual entry. So I pulled out my EUR/GBP chart and this is the feedback I sent back to him.
Firstly let me show you the setup chart (1H time frame):
And now the trigger chart (15 mins time frame) - click on picture to enlarge:
I thought it was a good example to show you A) how to find a water-clear entry signal and B) why it’s always important to keep an eye on the ADR when intraday-trading.
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