Hi, I prefer to trade with the trend or range bound markets, especially when placing forward orders from weekly charts. The most difficult time is knowing when a market is pulling back OR price is about to make a change of direction, We are at that point now. Lots of pairs are showing signs that they MAY be about to turn so how do we play it?
Pierre showed you lots of winning “swing trades” last week and the good thing with them is that often you only need a small stop and therefore the risk reward can be excellent. If you want to master that style of trading then check in the private members forum in Pierre’s corner and speak with the maestro 🙂
I do have one or two such trades on my radar this week, but I also have a couple of potentially very big triangle breaks, with the trend, that tempt me more, all revealed in today’s video
The Forex Week Ahead
Gbp/$ Weekly: We are currently in a channel that goes back to the summer of last year, but we have a lot of bearish indicators suggesting a reversal so how to play it? I will place an order at the market open to long in its current position. It is sat on a weekly and daily channel line which is also 61.8% fib of the recent moves and previous support and resistance, so multiple reasons.
If it fails and we get a bigger pullback all the way back down to 1.6060 I will long again.
Intraday: If the trade at the market open fails then watch 1.6260 for clues for a potential bounce back up, its major previous support & resistance.
Euro/$: Weekly: I am looking to long at 1.3650 if we get a big pullback. There is a weekly trend line, 50% fib & S & R so multiple reasons. Swing traders watch 1.400 for a bounce back down.
Intra day: Those sitting watching price look for clues at 1.3700 for possible bounce back up.
Chf (don’t take at same time as Euro/$ as they are negatively correlated) I had a loser last week trying to catch a swing trade so I prefer shorting with the trend and 0.9000 Is the obvious area, once again for multiple reasons its a whole number/psych level, previous support & resistance, 50% monthly fib, 61.8% weekly fibs (some folks trade mainly from fibs so lots will be looking for entries there)
Euro/Gbp: Weekly: I am currently short at 0.8400 which is 78.6% fib and intersection of a major trend line. If that breaks and closes above on a daily chart then I will look for an M2 long.
Aud: I said 2 weeks ago “Watch gold for clues, explained in the video. Also see how the inverse head & shoulders pattern that Mary (Tradespotting in the forum) showed recently. It worked almost to perfection for 700 points on the gold movement and is lining up now on the Aud!” that is still valid AND there is a further clue now of a potential 700 pip triangle break out!
Ways to play it: wait for break and close above 0.9150 to long or below 0.8900 to short.
Intraday: It has been bouncing between 0.8900 and 0.9060 for the last 6 weeks, look to trade there.
Weekly still waiting for a big pullback to 0.9350 to short anywhere aroundthere
Cad: Weekly Positive news for Canada on Friday so a pull back and a great swing trade which again Pierre caught and showed in the forum. If price opens higher at the open even I will be tempted to short
The more conservative trade will be a long at 1.1020 it’s a long way back but it’s a strong area, weekly trend line fib and daily 55ema.
S/Yen Weekly. I will take a long on the $/Yen at 100.00. Its 61.8% weekly fib and a trend line + whole/psych number so multiple reasons.
There is also a potential 600 + pip triangle break out. The way I will play this as follows; if price breaks and CLOSES above 104.00 I will long on an M2 pullback. If price closes clearly below 100.00 I will short. Either move has the potential to be a big one, and this is what usually happens after a longish period of sideways movement.
Intraday, watch 101.30 for potential bounce trades. It has worked 4 out 5 times in the last 10 days.
Aud Yen: Weekly swing traders will be interested to short from 94.00 once again. I will only long if price breaks and closes above there daily candle close OR a pull back to 91.70 however its not the strongest looking trade set up, so no forward order now.
Euro/Yen : Weekly I longed at 141.00 last week for multiple technical reasons as explained in the video and it went nowhere! I wouldn’t get in there now. 138.00 would be better for a long and possible swing trade back down from 143.30.
New members please note: If I am looking to take a trade long, at for example 1.5000 , 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.
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