Disappointed

Hey traders, how are we all today? I have had a long week, and unfortunately not a very happy one. On a bit of a bad run at the moment with 4 bad trades on the trot. Missed out some very nice trades during the week. Can probably put it all down to not planning ahead and setting up my trades which is still an incredibly weak point for me at the moment. Getting grinded to death with choppy, small ranges. Hopefully you have done better than me. I may take a break for the remainder of the week ...

Weekly Update 14/11/2011

Welcome to the weekend update for the upcoming trading week. Going with the "picture speaks a thousand words" credo and keeping it short. 5 charts in focus this week: AUD/USD, EUR/USD, GBP/USD, EUR/CAD, and Gold. Heavy event risk this week with spades of GDP and CPI figures coming out. These will provide an indication of how global economy is fairing. Good luck this week!

Trade Idea Wrap Up

Welcome traders to another daily post. First, a quick wrap up of yesterday's trade. It was looking fantastic. Bearish pressure was strong and I had moved into a 50 pip profit by the third hour of my trade ... GREAT! I trailed the stop loss to break even. In the next 15 mins, price proceeded to spike back up straight through my entry and then some ... 3 hours gone in 15 mins. It then proceeded to fall like a rock, all the way down to a low of 1.6187, 30 pips away from my soft target and what would have been a 120 pip profit. Live and learn I guess ... sh#%t happens. Not really looking to trade today, so will summarise the week in tomorrow's weekend update; see ya ; )

Trade Idea

Yo, super risk takers! Welcome to another post of FX trading corner. GBP/CAD has been a pair extensively followed by one of the DailyFX currency strategists John Kicklighter. Going through the charts today, I spotted the formation of a fakey pin on the 4 hourly chart. The 5 wave structure looked complete with the temporary top and there was a potential for a retest of the recent support area at 1.615. The pair looks attractive since there is a potential for it to sink back into the larger daily range. If this were the case, there is the opportunity for some serious pips to be made.

I took the short early at 1.6305 with a stop set at 1.6358. Initial target at 1.6224 area. Things got a bit hairy when it made a daily high at 1.6331. Price has since retraced to the 1.627 area. Looking for the Bank of England interest rate decision to generate some volatility and follow through on this one. Good luck trading again tonight people and keep those stops tight!

Finally Some Action

Hey traders, how are we all? Finally getting some movement in the markets today. Sort of kicking myself as I missed a very nice trade setup on the GBP/USD. We had price action consolidation into a pin/inside bar setup at the 1.61 psychological level. At European market open, we saw an immediate 100 pip drop.

Will need to wait - the part I hate the most - for a retracement to yield an attractive entry point again.

Aussie dollar has also exhibited a triangle pattern breakout for this move and I'll be watching for a retracement into the support area at 1.028 and see if a short entry opportunity presents itself.

Taking Stock

Good evening risk takers! Another grinding day and another post to go with it. Lets kick it off with a recap of yesterday's trade.

So here's what happened. The trade initially got me into a reasonable 30 pips profit, but then ran out of steam almost immediately. It put one of those rather ugly, ball tearing retracements that you hate to be on the wrong side of. It formed and hourly close above the short term resistance level around 1.066. Given this, I decided to exit and take the 25 pip loss rather than the full 50 I was risking given the recent market volatility.

Price action ranged throughout the asian session. About an hour ago, it looked like another neat setup had formed on the one hour, so I took a second bite at the cherry. Result? Another face ripping rally on the back of no news. AWWWEESSOOOMMEEE ... not. This took me out with a 21 pip loss which leaves me down 46 pips for the week.

The setup was valid, and it was a nice risk to reward ratio. In the end, that's the way it is with the market when it doesn't work out; This is where prudent risk management is your saving grace.

The interim has flipped to the upside. A retest of 1.0665 area made yield a short term long entry. Medium term, still looking for the bear run continuation. May take a break for the next day or so and see how things pan out.

Good luck again to all those who will be braving the FX seas in the American session!

New week

Hey traders, how are we all today? It's currently 1:12 AM AEST and I have just setup a trade in the GBP/USD. Price action has been whipsawing since the start of the European session, jumping from one headline to the next.

However, like Homer Simpson puts it, this is "crisitunity"; as in oppportunity in the midst of crisis ; ).

GBP/USD

We can see strong resistance at the 1.064 level where price has not managed to close above of since Nov 4. Recent price action saw a fake out, followed by a nice pin bar tail. Ideal entry for short which I have setup @ 1.063 area with initial target of neckline at 1.59. However, I am looking for that break of the head and shoulders pattern to carry the pair into the 1.57 area.

As I am typing this, the trade has just been executed. We shall see how I go ...