Weekly Analysis: Using M2 for 150% gain
I have shown you plenty of times how I have used my M2 strategy to trade different things. This can be forex, stocks and even crypto. This is not financial advice but just showing you what I am doing. Always do your own research before investing in anything.
A couple of weeks ago I showed you how you could get involved in Bitcoin if you didn’t want to get involved with it directly. I bought Microstrategy which is a company that holds 158,245 bitcoins bought for an average price of $29,582 each. Around 90% of their portfolio is invested in Bitcoin so if it appreciates their stock price would also increase.
I have also shown you RIOT which is another crypto mining stock. Both of them made me a gain of around 150% this week after holding them for just 10 days.
I only look to buy stocks if there is a potential of at least around 25% profit.
Now with Forex, on Friday we had some very big moves because of the NFP figures. The results came out worse than expected as the amount of jobs created in October were less than expected. The DXY has broken a major support line after being in a range for a few weeks. This is a clue that we could see potential $ weakness for the week ahead.
However, I would personally wait until Monday’s Daily candlestick close just to see what the US markets do as we have the scenario where the price has stopped at the big areas and it could easily break through those.
Also read Marc Chandler’s article as he is very good with the fundamentals and has explained what has happened at NFP and what it could mean for the week ahead.
The Forex Week Ahead+++++++++++++++++++++++
For the week ahead on Tuesday you have the AUD cash rate announcement and the forecast shows that they are expected to increase interest rates. I would until this is out and then trade the AUD pairs. Apart from that it looks pretty good and a light week. There are a few speeches, Gov Bailey, Powell and Lagarde speaking. It shouldn’t be a big problem but if they say something it could cause some volatility.
Keep watching the $index it is now at a major “make your mind up” area once again on the weekly charts. It is now stuck at the 55EMA and you have the 200 EMA just above it. If it could break above that we could be looking at $ strength.
Remember I am looking for “A” grade trades from weekly & daily charts that I can place the orders and then just walk away. A “B” grade is one that I will watch on 4 hour timeframes to see how it reacts if it hits my zone.
EUR/USD: It has stopped at a big area of 1.07. I would wait till Tuesday. It looks more attractive for a long if it breaks above the EMAs on Daily.
USD/CHF: Need the 55MA to break and then I would be interested for a short.
Do not take the Euro/$ & Chf at the same time. They are correlated so it’s the same “bet.”
GBP/USD: Similar to the EUR, watch the video.
AUD/USD: 0.6680 is an interesting area for a short. Watch the video.
USD/CAD: Not a forward order but 1.36380 is an interesting area for a long.
USDYEN: The BOJ is very likely to intervene again so I wouldn’t bother playing around with it. Why try to fight a bank? You won’t win.
Some are A grades where I will place forward orders, most pairs have “areas of interest.” I have a lot of similar crosses so be very careful with the correlation.
EURGBP: I will watch it at open as 0.86380 looks very interesting for a long.
GBPAUD: Ashley had a big win on it this week, watch him in the forum.
GBPCAD: Finally broken through the EMAS, 1.68100 would be interesting for a long.
EURCAD: Finally broken above EMAs on a weekly, so possibly longs at 1.45 again.
EURNZD: 1.76800 looks good for a long. Potential 600 pip move.
M3 -Shorter timeframes.
I do my analysis on daily and weekly charts first and make a note of the MAJOR areas of support and resistance. Then copy them onto Pierre’s Earth and sky template. Then I make a note of the weekly & monthly pivots points and add them to the charts. You will see lots of opportunities line up during the week. The important thing then is to select a bias for the next few days and do NOT take trades if the price is too near a trend line or pivot. Ideally, you want to buy when the price is near a major support and or pivot point line and has the potential to make at least 40 pips. Vice versa for a short.
New members, please note: If I am looking to take a trade long, 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.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
Watch the video below for more detailed explanations of this week’s analysis and trade plan (click the 4 arrows bottom right to view full-screen):