Hi, below you will find a copy of the weekly trading ideas I share with members of my forex mentor program.
But first a cautionary tale, thanks to member Mitch for sending me this story.
This is a true one about someone not knowing what he is doing.
He was trading oil (which I tell you to leave alone).
How he got carried away and bought loads of the stuff for pennies.
Then the email arrived from his broker:
” You owe us $9 Million,” and no it was not a mistake.
It was an extraordinary situation and you can read what happened to him and his impending bankruptcy here:
Something else I have warned about for many years and I repeated in a recent article why you should NOT trade the Euro/Chf.
The President of the Swiss National Bank, Mr Jordan, has stated that they will continue the policy of weakening the Swiss Franc. However in 2015 when he made a similar promise, a few days later they pulled the rug from under traders. Price dropped over 2000 pips in minutes on the Euro/Chf.
Dozens of smaller forex brokers went bust. A bigger one, Alpari Uk, also ceased to exist and FXCM, one of the largest brokers on the planet, needed a $300 million cash injection to continue trading. More relevant for us is that tens of thousands of individual traders lost their entire account.
You might guess that if you were short on the Euro/Chf that you had got lucky and scooped a fortune? Nope, the brokers didn’t/couldn’t payout, so there were no winners. All explained in more detail at the start of todays video.
Also, check out what The SNB is saying now, but don’t be in a rush to believe them!
Macd divergence: In last Sunday’s post I went into detail as to how macd had given a “heads up” that price was going to reverse (drop) on most of the indices. This week the Nasdaq 100 is showing the same pattern. If you trade it or are buying stocks then keep your eye on it as it looks as though it will at least pullback if not reverse. See the video.
I have shown in recent months how the technical setups we use for forex are also very relevant for indices and crypto. I don’t trade crypto as they are crazy volatile, but I am buying crypto at the moment as I feel it has the potential to outperform the stock market as it becomes more mainstream.
The Week Ahead
Usually, I have 4 or 5 trade setups that I can find on longer timeframes. I place the orders either at the market open or daily candle closes and walk away. Current markets are so choppy that I am finding that its a lot easier combining our 2 methods, M2 & Earth & Sky.
I have made a separate short video and post showing once more how combining the big picture (M2) trades, with Pierre’s Earth and Sky 30 minute entry is the most profitable method in current markets. There ARE still some longer timeframe winners and the Chf did it yet again last week from last Sundays analysis. However, if you do your analysis on daily and weekly charts first and make a note of the MAJOR areas of support and resistance. Then copy them on to 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 price is too near a trend line or pivot.
Ideally, you want to buy when 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, all explained again in the short video in this extra post:
Longer time frames trades I am looking to take from a forward order at the market open:
Chf: Has worked 9 out of 10 times in the last 3 months. Until or unless 0.9800 breaks I will continue to short, this week from 0.9775
Cad Yen: Not my favourite pair but I am interested to short at 80.00
Euro/Yen: Not my favourite pair either and its a long way off right now but 120.00 is huge on this pair so I will short if it shoots up to there
The main areas for possibles later in the week or from Monday on Shorter timeframes: Pick the BIG areas: major previous support and resistance in all its forms: trend lines, emas, fib levels, whole numbers etc and add them and new pivots when the markets open tonight.
Gbp: short 1.2500
$Yen: 107.00 is key on this pair. If it breaks higher I will look for reasons to long with a target of 108.90. The concern for a short is that it will probably struggle at 106.00 once more, so might be a limited move.
Cad: 1.4000 worked again last week for a long earlier in the week and is the major area to focus on. Right now my bias is to short there from the 30 minute setup. If it breaks and closes higher on a daily chart then I will look to long. It is also in a range on daily charts and 1.3850 to 1.4250 are the edges, so they might give an entry too.
Aud: There is a lot of news this week, at the moment my bias is to short, but it looks as though it wants to go higher. If it does then I will be looking for an entry to do so at 0.6900 and definitely 0.7000
Aud/Yen: I am wary with most Yens, This did bounce off the all-important 70.00 recently so its the first place to look for clues to short.
Euro/$: my bias is to short. 1.1060 to 1.100 is the main place I will look at.
Euro/Gbp: Hopefully I have kept you out of losing shorts on this pair for the last 3 weeks. My slight bias is a long but it has been very choppy and hasn’t moved much even when it has broken higher.
Nzd: Careful with the news, but if it spikes up to 0.6400 or down to 0.6000 I will look for entries there
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.
For more up to the minute, updates do not forget to drop by the forum.
Watch the video for more detailed explanations of this week’s detailed analysis and trade plan.
Click on the square button bottom right to watch in full-screen mode
If you would like to learn how to trade like a professional check out our 5* rated forex mentor program, RISK FREE; by clicking on the “Get Started Today” Button below