Hi, its the turn of a couple of younger members today.
I was looking at the majors for trade opportunities today and to be honest very few look tempting at the moment unless we get some big pullbacks.
Step forward a couple of my private students, 25-year-olds, Ashley from the UK & Jonah from the USA who have been with us around 6 months and were new to trading. They are both very good technical traders. They have found some cracking setups on some cross pairs that I don’t even look at!
If you see something that looks interesting then let me know in the forum and post a screenshot and your thinking. Share and also have a look at what other members are seeing.
Age is irrelevant if you want to be a successful trader. The priority is you need to focus and have a burning desire to succeed. Set your stall out like a business and go for it. Create an uncluttered workspace in your house. Define the time you need to spend on the weekend planning and do it every week. Rinse and repeat. Then let partners know what time per day you are going to focus on it. What time frames are you going to trade, etc etc.
The average age of one of my private clients used to be 50+, male, middle management or own business. The majority had been trying to trade forex for years (one guy over 15)! Most were frustrated with their trading, bored/ no longer felt challenged, nor enjoyed their current job or business and were interested in winding down, retiring early or preoccupied with their pension.
This year the average age has tumbled (for members in general) and yet all are looking for additional or new ways to make a living from their computer (even more so now with the COVID situation).
The good news is that age does not matter in trading. It doesn’t take years to learn if you focus and treat it like a business, as per the “Start Here” section of the Education area.
As I mentioned earlier, most majors are either trapped in tight ranges like the Aud & Nzd, or CHF near recent highs and lows. Others like the Euro/$ don’t have a good risk-reward nor place to put a stop. So we need to broaden our selection.
As technical traders we start with the charts on the longer timeframes, looking for the “sweet spot” where, for multiple reasons, we expect the price to react. When we find something we investigate further on daily charts, then check out upcoming news and the general background of the currencies we are looking to trade.
I usually look at around 15 pairs and manage to find, on average, 5 that look as though they have good potential. Ashley /& Jonah found some on other cross pairs. All are valid as long as we follow the process.
Once you have found your list for the week I recommend you just focus on those and the majors. If you have too many charts loaded all week, you will invariably miss them all!
I will update you in Tuesday’s live training session:
Then we can have a more detailed, up to the minute look at what’s happening and potential trades for the rest of the week.
This is a copy of the analysis I shared with members (as usual) on Sunday.
Its a bank holiday in Japan on Monday & Tuesday so the Yens could be slow and retrace a bit. There are a lot of speeches during the week which always run the risk of something explosive being said. On Wednesday its Nzd interest rate news and the same for the Chf on Thursday so as ever trade around them not through.
The Gbp has become tricky again as we near the finish line over the Brexit tussle between the EU & UK. It’s reacting strongly to comments by multiple politicians on both sides. There were times last year that it was untradable, let’s hope that’s not the case now. More than ever do not be in more than one Gbp or Yen trade this week due to correlation
Most of the majors are the same or similar analysis as last week as I am looking for the “big areas” on weekly and daily charts.
Euro/Aud: I will short if it moves up to 1.6440 where I have multiple reasons for the entry and the stop. Swing traders will be interested to long at the weekly trend line at 1.6180 (remember to adjust entry points as trendlines move higher or lower). It worked 2 or 3 times in recent weeks but as you know I rarely swing trade unless I have a lot of reasons for the stop. If not it’s just a bet, ie gambling not trading!
The majors need bigger pullbacks:
€uro/$: 1.1760 is now of interest for those trading the 4 hour (not for me). I prefer a pullback to 1.1520 to long.
Chf: Drifting lower, nowhere for a stop. My bias is still to short it. 0.9200 is of interest for those trading intraday. I won’t touch it unless it gets back up around 0.9370/0.9420
Euro/Gbp: Weekly triangle break suggests an 800+ pip move which would be exceptional for this pair. I now only want to long and we could be on for the 800 pip move upwards. Always be flexible 🙂 I need a pullback. Ideally to 0.9050.
Gbp/$: 1.2750 is key. I will long it there. If it breaks and closes on a daily I will short it, however, I prefer the Euro/Gbp at the moment. If you do take it, make sure you have at least a 50 pip stop to try avoid being taken out by intraday, news related volatility.
$/Yen: MIssed my entry by 8 pips last week then dropped 170 🙁 105.80 is a short for me. If not I would want a break and daily candle close below 104.00 then pullback.
Cad: Its range-bound between 1.3245 & 1.3130 so those of you who are trading intraday that’s the areas to focus on smaller timeframes. Personally I prefer a long at 1.3020. 1.3000 is huge previous support and resistance I will long if it drops. an A grade short for me is if it pulls back up all the way to 1.3430, seems unlikely now, but you never know with forex.
Nzd: 0.6500 long with stop below 0.6450. Target 0.6290
Aud: Messy now 0.7000 is interesting to long but not multiple reasons for the stop. 0.6900 has more, see the video.
Aud/Yen: Same for this pair 75.00 is a long but the stop is not great, 74.10 is a lot stronger. The Nzd seems most favourable of these 3.
Euro/Yen: Watching at the open. As I mentioned above the Yens might just drift Monday and Tuesday but after the break of 124.00 its an interesting area to consider a short. If it does drop then 122.00 is the area to consider a long.
Cad Yen: Dropped last week then stopped to the pip on a trendline that goes back to May. I need it to either break and close below there on a daily or flip back up and break and close above 80.20 on a daily to consider a long. Beware fake-outs on all Yens Monday & Tuesday.
Euro/Cad: New member Roger asked me to analyse this one. He thinks that 1.5520 looks good for a long? It’s not a pair I trade much, but technically he is correct!
Then the young guys:
Nzd/Cad: long at 0.8810 and swing traders consider a short at 0.9000
Nzd/Chf: Weekly break and close above 0.6200 for an M2 break out then pullback, this has the potential to move up 350 pips. On the 4hour watch 0.6120 to long.
Chf/Yen: an A grade long for me is 112.10 and a B 112.20
Aud/Chf: 0.6570 & 0.6540 scale in, possible 130 pip move.
M3 Shorter timeframes
See the new course & recent blog posts as to how I do this: 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 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 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.
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.