Hey guys.
Here’s what it looks like as we approach US session
Now oftentimes we have heard or even experienced ourselves how chaotic and unpredictable intraday moves can be. And for someone who’s tried it for a while I can attest to that for sure. But somehow in the back of my mind I believed (or hoped) that there was a way to trade the intraday moves profitably and if luck strikes it can turn into a nice swing position.
AUD and NZD had a good start from Asian session I had them on my track list YEN appeared somewhat stronger but looking back it was mostly due to Shanghai composite I took it as a medium term strength. Then came London, things were as chaotic as you’d expect it to be for a Monday and the last day of the month - month end flow. USD popped up from down below all of a sudden YEN sank as if had been in the negative for months EUR traced back up again stock market correlation Footsie opened in the negative. Then comes the afternoon, this is where things stand.
The secret recipe to intra day trading you ask ? I associate it with no other than the weak and the strong combo more or so than anything. Well its easier said than done. If I (we) had known YEN and GBP to be weak I would have went long AUDJPY, NZDJPY, short GBPAUD. GBPNZD. But as I’m typing this we’re somewhat late to the move, well provided that things don’t take a turn to the opposite direction we may get a chance at it again when US traders come back after lunch.
But how can we know for sure ? Is there a way to tell and get yourself in on a strong/weak combo ?
Well I have worked up two points one for identifying (this part needs more work) market sentiment second for timing
:: Keeping track of how things progress from Asia - Europe can be really helpful
:: A breakout pattern can be used as a confirmation and a timing tool
here’s an example on 30m chart AUDJPY
(here’s a pattern a long signal that I’ve noticed on almost every pair on every time frame but there’s a catch, it doesn’t always have to be accurate sometimes there’s a pullback after the initial breakout especially if the breakout happened during Asian session but combined with strong/weak combo I learned that this can be a great method in fine tuning the entry not only that getting in right when the momentum is high = quick profits its a good thing if you’re a day trader.
Now the problem is how do we know for sure ? In my personal experience I was on the screen when all of this happened, AUDJPY breakout , similar pattern on CADJPY presumably CAD was weak as opposed to AUD should i have taken it as a sign that YEN was going to sink ? (I’m sure there were other signs that I should have taken note that sentiment was changing especially with YEN, Shanghai composite came in the positive after lunch sometime after London open things such as this) I decided to wait on lunch break, hoping for a pullback on AUDJPY and but demand was in and the momentum was there it ticked back a few points before raging up.
All of this wasn’t completely random, both AUD and NZD had some positive data came out during Asian session, and tomorrow is the big day for NZD GDT data a better number is expected so traders are probably pricing in early on. This way of trading means basically going with the flow you can’t go wrong with that, and there you have your timing a breakout alongside a pattern. Now the trouble is how do I efficiently keep track of market sentiment. So that when a breakout occurs I’ll know for sure which ones to take.
::The last paragraph was edited::
