Pierre DuPlessis on August 13, 2013
Good morning everyoneHope you are all well and enjoying the holidays if you are living in Europe.
We are now in the second week of the holidays and I am expecting the market to slow down. This is not good news and we need to be very careful with chart patterns like, let say `triangle break outs, head and shoulder patterns even trend lines breaks can become fake outs. We need volume/momentum in the market to drive price, if it’s not there – these patterns can’t be trusted. Patience will be key this month too.
The best will be to concentrate for the next couple of weeks on support and resistance levels and this is where patience will come in. Price can be very slow in this period and will sometimes take days to get to our preferred areas of interest………….once we get there, it will sometimes take days once again to give us pips!!!
This is the hardest part, as you might feel to pull the trade as it’s not going anywhere.
So be patient people.
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Truth saying for the week:
` Knowledge is more important than strength`
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Red Flag` News that can make you loses your pants:
You can use the following web site for scheduled news and times for the week: http://www.dailyfx.com/calendar
Don`t take any trades just before `Red Flag` news. If you are already in a trade, protect your entry. I don’t want to meet up with you at Little Beach, Maui, Hawaii. Did you know this is a nudist beach?
For future reference, have a look at the 4th of April 2013 at all the
JPY pairs what happened with price after `Red Flag` news came out. ALWAYS TRADE WITH A STOP!……………………………………………………………………………………………………
This is my current `Earth and Sky Trading Zones` – Please take note of the time frames I am looking at. Remember, if price don’t pull back on the pairs you trade and make new lows/highs follow price with your fib to get the new potential trading zones.
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1) Euro Index on the DAILY chart:
Notes: Yesterday we found support at the daily 55 EMA at the 109.00 level. Price moved up but now has a problem at the 4 hour 55 EMA at 109.43. This is also the weekly main pivot. So for me we a little bit in no man’s land. I would prefer to look at 109.74 (look to the left of the chart, notice the previous resistance holding hands with the WR1 pivot) and 110.00 for shorts and once again 109.00 for longs.
Correlation: Remember that the following pairs make out the `Euro Index Basket` – The Euro/Dollar, Euro/JPY, EURO/GBP and the EURO/CHF. (They all move in the same direction) Use the `Euro Index` for extra confirmation and information to trade the basket pairs. If you don’t have the index on your platform…download a demo account with Forex LTD at http://www.forexltd.co.uk/
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This video will show you how to upload the Euro and Dollar Index using the MT 4 platform with Forex LTD.
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