My name is Jordan. I am 20 year old mechanical engineering student from Australia and am very interested in learning to become a consistently profittable forex trader.
I have been studying and learning about forex for the last couple of months, I have just finished majority of the pipschool here on babypips, I have finished the technical analysis sections and have just started fundamental analysis.
I will be starting to trade now whilst still studying pipschool and learning fundamental analysis etc.
I have an account open with FXCM with $300, I will be trading micro lots which are about 10 cents per pip.
I will post every single trade I do on here, hopefully some people can give me some feedback on their thoughts, and the mistakes I have most likely made.
So far my what I have a high interested in implementing into my strategy is:
Divergence
Trend line (breakouts and reversals)
55 day channel breakouts
stochastic buy/sell signals
ADX (to measure trend strength and to spot when trends may be ending)
EUR/JPY - Long - I went long on this currency pair, because it has had a 55 day channel breakout where it has broken the high of the last 55 days. I can now see the pair has a chance of hitting the high it made back in February. I have set the stop loss at 105 where it recently had a small retracement, and the take profit is up around the high from february.
Just made my second trade for the day. This time on the 2 hour time chart.
EUR/CHF - Short - Basically I went short on this currency pair as it has been trading within a parallel channel for the last couple of weeks and has just had a fairly large breakout. I am fading this breakout, I had sold it assuming it will come back to its mean trading range.
Open positions:
EUR/JPY - Long - Entry at 107.340
EUR/CHF - Short - Entry at 1.20838
I agree with what your saying. closely after opening this trade, I made the same decision, luckily I was up 18.4 pips at the time and decided to close the position.
I will be waiting for an indication of a reversal to take a short on EUR/JPY in the near future as you are.
I closed my EUR/JPY trade last night for a profit of 18.4 pips. I still have my EUR/CHF trade open but it looks like it may be hitting the stop soon enough.
I opened another trade today on the 4hr chart with EUR/AUD using divergence with the RSI indicator. As you can see in the picture I have attached the price action made a new high however RSI made a lower high. According to what I have learnt in Babypips school this is a bearish signal so I have gone short with a 1:2 risk reward.
Open Positions:
EUR/CHF - Short - Entry at 1.20838
EUR/AUD - Short - Entry at 1.25050
The Reserve Bank of Australia (RBA) decided at today’s December meeting to reduce the key policy cash interest rate by 0.25 % to 3.0 %
The RBA Governor Glenn Stevens’ brief statement highlighted that “Global growth is forecast to be a little below average for a time” .There are downside risks to this global outlook given “the situation in Europe” and “uncertainty over the course of US fiscal policy”. Notably Asia has been" dampened by the more moderate Chinese expansion and the weakness in Europe".
Australia’s economic growth has been “running close to trend over the past year, led by very large increases in capital spending in the resources sector” . Yet the RBA recognises that the “recent data confirm the peak in resource investment is approaching”.
Notably the RBA is cautious about the strength and timing of a recovery in the “Non Mining” sectors. Consumer spending is “expected to grow, but a return to the very strong growth of some years ago is unlikely”. Commercial construction " remains relatively subdued". Federal & State Government “spending is forecast to be constrained”. The RBA’s hope is that there are “indications of a prospective improvement in dwelling investment, with dwelling prices moving a little higher, rental yields increasing and building approvals having turned up”.
The RBA Governor states that “over the past year, monetary policy has become more accommodative”. There are “signs” that these “accommodative” and “easier conditions” are “starting to have some of the expected effects” . However the RBA is concerned that the “exchange rate remains higher than might have been expected” . So the high A$ is a key factor in this December interest rate cut.
Given that the RBA has significantly lowered the cash rate from 4.75% in October 2011 to currently 3.0%, the central bank should be ‘catching its breath’ on monetary policy
Either way nice pick, you should have made about 20 or so pips on that last short play.
