After completing the weekly scan and analysis of the pairs on my watch list, only two pairs made my priority list: AUDUSD and USDJPY. I will look for the auspicious time during the week to trade them southwards as I have a bearish outlook on them. Trade safe.
Becoming more patient is key to the progress I made as a trader this year. Learning to wait patiently and track the market and confirm price action in a top-down regime has been crucial to the progress I made since March this year when I blew one of my live accounts.
This week, I opened a demo account primarily to test my strategy on gold. Although the longer term trend is downwards, gold is at the moment on an upside move. Meanwhile, it is retracing towards an ascending trendline on the 4H time frame.
Trade safe and prosper.
One of the two pairs I will look to trading this week is USJPY. Here is my technical analysis of it.
The the trend has been up for a while but it seems the momentum has slowed down. Recent price action has rejected a descending trendline on the weekly time frame (saddle brown colour) and the 78.6% Fib level. Therefore, it is important to watch how price reacts to this area.
I may be wrong. Trade safe and proper.
During the week, I will look to trading USDJPY and GBPCAD as they met my criteria for short-term swing trading. While I will wait for further clarity of price action on USDJPY, I will look to shorting the GBPCAD at an identified area as all the technicals on the HTFs syncronise for further bearish drive.
Trade safe and prosper.
KP
One key to trapping USDJPY this week is to note that the price action is respecting a descending trendline after reaching a significant retracement level on the weekly time frame. See the chart below.
I will be tracking the USDJPY this week. If you would like to trade the USDJPY this week, be aware that the current market mode is ambivalent as the buyers are still influential even though the trend seems to favour the sellers. On the 4H time frame, price action is at a significant S/R zone and a rejection of the zone to the downside to respect the descending channel (navy colour) is likely. There is the possibility that price action will pursue a southwards drive thereafter as a significant moving average has been acting as a dynamic resistance for the past two weeks.
I may be wrong. Trade safe and prosper.
For me to make the most of the price action and take advantage of the descending channel pattern, I will wait for price action to retrace to between 50 and 61.8 Fib levels to short the pair.
I may be wrong. Trade safe and prosper.
Fibs are good for a guide for pull backs but need to be combined with support / resistance
Yes, and other possible confluence factors.
Trade safe and prosper.
[B]Just sharing[/B]
It is important to review trades taken within a 24-hour cycle if you are an intraday trader. If you are a swing trader, it is beneficial to review each trade as soon as it has ended, at least before you take the next trade.
Trade safe and proper.
What has changed recently in the way I analyse the market is that I now incorporate market mode in my analysis and set trade scenarios that consider both the market mode and the market direction.
[B]Just Sharing[/B]
You can gain a profitable edge in the market through proper planning. By taking time during the weekend to analyse the market, create trading scenarios, plan your strategies and trade accordingly you would sooner than later become consistently profitable. Trade safe and prosper.
EURNZD is a pair I added to my watch list during the weekend. It looks tradable for the week. The pair is disposed southwards. All the technicals on the weekly, daily and 4H time frames support a bearish disposition for the pair. Trade safe and prosper.
Continuous monitoring of the dynamic market condition, preferably across a few time frames, is important to effectively trap the market.
I will be tracking GBPUSD this week for trading opportunity southwards. Presently, price action on the weekly time frame shows a struggle between the bulls and the bears with the bulls still more influential. Should the bulls overpower the bears, a much likely target upwards will be the immediate resistance zone around 1.3030, which adjoins the 61.8 Fib and may also retest the descending trendline (chocolate colour). On the H4 time frame, price action is operating within an ascending channel with the technicals in support of a bullish push upwards.
I may be wrong. Trade safe and prosper.
One of my trading principles is optimizing efficiency in my trading. So, during the week I sought a way of reducing the number of steps I employ in my weekly scan and analysis of the pairs on my watch list. I found a way of doing this, reducing the number of steps from six to four. Trade safe and prosper.
If you are tracking the EURUSD this week, be aware that since the beginning of 2017, price action on the pair on the daily time frame has been on a retracement upwards covering over 290 pips to respect the 61.8 Fib level with a significant moving average serving as a confluence and resistance. Thereafter the order flow has been dominated by the bears. Last week the bulls made a push upwards but on Friday a piercing line formed to counter the bulls. On the H4 time frame, the downward trendline is well respected after a 50.0 Fib retracement of the most recent swing low from February 2, 2017. The most recent order flow has seen two relatively big bearish candlesticks showing the influence of the bears. The technicals on the H4 time frame support a further southward move with a possible initial target of around 1.0490, which is in confluence with the immediate support zone and the trendline joining the swing lows on the H4 time frame.
I may be wrong. Trade safe and prosper.
Watch this video. What could you learn from it? Trade safe and prosper.
Plenty - and from his other videos, and [I]especially[/I] from the hugely long document he calls (for some reason) his “lost blog posts” which he makes available free as a PDF, from his website.
He’s “one of the good guys”: a good trader and quite a good teacher. 