Marc Walton on December 12, 2012
I have been trading the Aud from weekly charts and twice missed an entry before catching it last week, equally the Cad trend line break which is currently in profit, took weeks to materialise as did last months pullback short at 1.000 for which I waited a couple of months.
The upside is you only need minimal screen time & only need to catch a few decent trades in a month. At the moment there are a lot of potential big moves brewing on lots of pairs from classic head & shoulders patterns. If these moves materialise there could many, many 100′s of pips to be gained and I also explain in the video how to consider more aggressive entries that could earn even more. For example I am currently short the Euro/$, its going nowhere but if it drops then I could be in 125 pips earlier than normal for a Head & shoulders entry, so I will look to take some profit before the neck line is hit and then leave the balance to run, with the goal (hope) that the neck line will break and I could catch the extra 200+ move.
News
Today is FOMC news which could rock the $USA BIG time. Already the markets are anticipating that big Ben Bernanke is going to print yet more paper, it depends how much. Any surprises then we could see big volatility, so do not take trades after the London close (the market usually slows right down waiting for the announcement. If you are in a trade already then move stops to try lock in any profit and consider closing losers. Its simply gambling to let them run (unless its a trade that has been planned from a much longer time frame).
There are head and shoulders patterns on lots of pairs, get into the habit of looking for them, and I show you in the video how to trade them. In the meantime I am still interested in the following pairs:
Chf: Short at 0.9400 as per Sundays analysis – also daily H & S pattern which would be an M2 break below 0.9200
Euro/Gbp: Member Ben asked why I was looking at 0.8000 for a long as opposed to 0.8030 which he took & is 61.8% fib & intersection of a daily trend line? He is correct it was a good potential entry point, the reason I said 0.8000 and still do is that I double my stake on this pair as the range is so small and therefore I am looking for the lowest risk entry. I was also thinking that if we get a news spike 0.8000 is the most likely place price will stop.
The Euro/Gbp has a daily H & S but I am also looking to counter trend short at 0.8150 again and a long at 0.800 as per Sundays analysis
Aud: half stake, counter trend, swing short at 1.0570 as per video
Yens are still range bound though trying to break now as I write this update. Personally I am only interested if price pulls back, once again as per video/Sundays analysis.
New members please note: If I am looking to take a trade long, at for example 1.6000 , I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself. For more up to the minute updates do not forget to drop by the forum
Pierre, Vassilis (Capsmart), Raa, Omar, Mary, and other experienced members will be available in the forum to give you a more up to the minute assessment & whether they see any potential trades lining up in the next few days. Many members tell me this is the best forex forum there is (no back biting & bitchiness, nor spam, that spoils most forums) and all members are happy to help new visitors. Its a great resource, USE IT: Forex Forum