It's always nice to end the week with one more positive trade.  The EUR set up beautifully for us overnight.  When price got going, it not only blew through the Asian session low, it took out both targets 1 and 2 in quick order.  September has been a very good month and summer seems like long ago.

The EUR trade setup overnight is a favourite of mine, and one I train my students to look for each session.  When you find this setup, the rewards can be very satisfying.  This trade met our criteria to the letter and the pips followed.

Enjoy your weekend!

Let's see what October brings...back Tuesday.

Michael  www.privateforexcoaching.com

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GBP sold off ahead of the UK economic news releases.  Once the news was out, it moved back up.  After the higher low, we entered long, on the opening of the next candle with a stop just below the higher low.  We are risking 16 pips for a potential reward of 58 pips...Target 2.  This meets our minimum criterion of 3:1 reward to risk.

Our first level of concern will be the Asian session high and then yesterday's high.  Price moves through both but closes back below yesterday's high.  We chose to lock in 30 pips for a "take profit" level and the trade is closed.  Due to this level being where breakout longs will enter, and we are not breakout traders, we protect our profits and move on.  As I said yesterday, we will take 30 pips any day.

Let's see what opportunities tomorrow will bring us.

Good luck with your trading!

Michael  www.privateforexcoaching.com

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Not a lot of news overnight, but the lower highs on the GBP had us looking for the opportunity to go short.

With an affordable stop just above the plunging bearish hammer, we enter short at the opening of the next candle.  The reward to risk to our Target 2 is 4:1 easily meeting our criteria minimum of 3:1.  Price chops sideways for over an hour attempting to stay below yesterday's low.  Once price moves convincingly toward our targets, we move our "stop loss" to a "take profit" locking in 15 pips, then 30 pips, and are subsequently closed by the market for 30 pips.

Always remember to move your stops down and lock in profits.  It's always a nice feeling to be in a positive trade with no risk...what is also known as a "stress-free" trade.

Let's see what tomorrow brings.

Good luck with your trading!

Michael  www.privateforexcoaching.com

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The Asian session range was larger than usual.  No significant news was pending during the UK session for either the EUR or GBP but ECB President Draghi was scheduled to speak later in the session.

The UK session began with some choppy sideways price action before putting in a higher low.  We enter long with a stop just below the Asian session low... giving us a reward to risk of 4:1 to our Target 2. We anticipate a run up to test the Asian session high before moving to our Target 1 which was a significant area of resistance yesterday - as price collapsed down from there.

Price reaches the Asian session high and closes above it.  The next candle is a wicky candle which takes us to President Draghi's pending speech.  We close the trade and are happy to take the round number of 50 pips.   Do not trade in front of major news events and if you are in a trade... tighten your stops!

We are off to a good start this week.

Good luck with your trading!

Michael  www.privateforexcoaching.com

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Having learned a long time ago not to trade in front of the news, it always nice to capture some pips when the reversal occurs.  As long as the signals are clear - as was the case overnight with the EUR... one can capture the safer move.

The GBP news can affect the EUR as it did overnight.  The reverse is also true.  If the sentiment for the Eurozone is negative, the GBP typically is sold off too.  Last night, traders were awaiting some news before entering the market.  A very fast move to the upside was unsustainable as is evidenced by the wicky bearish candle and price not closing above our Target 1.  After an hour of consolidation and lower highs, a trade short is taken.  Price falls, makes a big move toward the Asian session low and then reverses.  Having been up 60 pips, we place our take profit at plus 50 pips and we are closed.

It's been a tricky week to find trades, but it has also been a rewarding week when we did.

Let's see what next week brings us.

Back Tuesday.

Enjoy your weekend!

Michael  www.privateforexcoaching.com

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Huge moves in the Asian session across the majors, left us without any high probability trade setups that would meet our reward to risk ratio.

It's a little unusual but the Asian session had huge moves yesterday.  When this occurs, it signals to me to take the session off.  I only look for high probability trades that meet my trading criteria and reward to risk ratio.  I pass on anything else.  Never trade for the sake of trading.  Follow your rules and keep it simple!  There may not be high probability trade setups each session, but when they appear, we will take advantage of them and we are rewarded.

Let's see what tomorrow brings us.

Best of trading!

Michael  www.privateforexcoaching.com

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A GBP trade setup once again!  This is my favourite pair to trade.  The EUR has been much easier to trade lately, so it's nice to finally find a trade with the GBP.  No surprises from the MPC Meeting Minutes and lots of activity just in advance of the UK opening..."railroad tracks" candle formation.

With a lower swing high and no breech of the Asian session high, the pair set up as a short, with minimal risk, meeting our reward to risk criteria.  A stop is placed just above the Asian session high.  Price quickly moved down and tests the Asian session low.  The trade was quickly profitable and we want to remove all risk from the trade, so we move our stop down to the close level of the candle that we entered on.  If there is a whipsaw to the upside, we will be taken out without a loss.  Price produces a lower high on the pullback test of the Asian session low, then heads down to our Targets.  We progressively move our "take profit" down to just above structure of pullback highs and close the trade at Target 2.

After 2 sessions without being able to find a trade that meets our criteria, we are rewarded.

Let's see what tomorrow brings.

Good luck with your trading.

Michael  www.privateforexcoaching.com

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Rules, rules, rules.  If the trade setup is not there, don't trade!  This is a profession where we don't get paid to show up at work.  We get paid if we are right.  We dramatically increase the probability of being correct in our assessment of the market by following our trading criteria for high probability trade setups, exercising sound money management  and reward to risk.  If we can't find a trade that meets this...we must sit on our hands or go do something else.   There will not be trades setting up for us each day...the market doesn't work that way.  Be patient and come back each session and follow your rules.  The trade setups that meet our criteria will reward us handsomely over time.

The week has only just begun.  Let's see what tomorrow brings us.

Michael  www.privateforexcoaching.com

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A frustrating UK session ends the week.  Rules are hugely important in trading!  Plan your trades and trade your plan...as they say.  Some sessions will result in high probability trades and some won't.  Once you know what to look for and take only those trades, your success and consistency goes way up!  Don't take trades that don't meet your criteria.  If they don't meet your criteria, they are low probability trades or 50-50 at best  - save your money and wait for your trade setup to occur.  Discipline and patience are extremely important to your trading success!!!

The CHF looked liked it was going to drop last night.  I liked the look of it, but I couldn't find an entry.

Let's see what next week brings us.

Enjoy your weekend.

Back on Tuesday.

Michael  www.privateforexcoaching.com

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The UK session was very quiet as the markets await the FOMC outcome from Dr. Bernanke.  The EUR offered a low risk trade with a familiar setup.   Neither of our targets is hit, but we can only get what the market offers.

Let's see what tonight brings.

Good luck in your trading.

Michael  www.privateforexcoaching.com

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After a great day for all the majors yesterday, their trading was a bit more subdued today.  The EUR was particularly reactive to news and with 2 back-to-back candles of over 60 pips each, I looked elsewhere for a trade setup.  The stop loss placement and target areas don't qualify for the reward to risk ratio criterion under such circumstances.

The CAD has not had a great trading range lately and it tends to move more when the North American traders are active.  Overnight it offered up a very low risk trading opportunity after a very nice pullback.

Holidays are over and the currencies are active once again.  Be very cautious around news releases always.

Good luck in your trading!

Back tomorrow.

Michael  www.privateforexcoaching.com

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Volumes are back and patterns are clearer.  The EUR moved up nicely overnight and all the majors looked very attractive for trading.  Wait for your entry and ensure that it meets a 3:1 minimum reward to risk ratio.  Move the risk out of the trade as it progresses by moving your stop loss in the direction of the trade... so that it is locking in your profits as the trade progresses toward the target areas.  ALWAYS trade with a stop loss and ALWAYS protect your profits.

We're off to a good start this week.

See you tomorrow.

Michael  www.privateforexcoaching.com

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The EUR has been trading a greater range than the other majors lately.  When trading the EUR make sure to look at the CHF for an inverse move confirmation.  I prefer trading the EUR but either is fine.  The EUR typically offers the smallest spread of the majors.

ECB President Draghi's awaited speech seemed to have the EUR trading in both directions.  It is not uncommon at all for a currency to trend one direction in the UK session and reverse when the American traders come on-line.

This trade worked out very well, but note how important the Asian session high and low was to price action.  If you miss an entry, you usually get a second chance as price will retest a session high or low or the previous day's high or low.  Always be aware of these recent levels.

Tomorrow is Non-Farm Payroll in the US.  I do not trade in advance of this - so I will be back Tuesday.

Although brokers make a big deal about Non-Farm Payroll - it is best to avoid trading it!

Next week is likely to be active with much greater volumes and larger ranges once again.

Enjoy your weekend.

Michael  www.privateforexcoaching.com

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September is here and volumes will pick up considerably.  Hopefully by next week clearer trade setups will become much more frequent again.  

The EUR looked good overnight, but it took a while to set up.  With a 3:1 Reward to Risk ratio minimum, a trade entry long was found with a stop just below the "higher low".  As the trade progressed the stop is moved up and quickly hit our targets.

Hopefully tonight will offer more opportunity to trade.  Friday night before the US Non-Farm Payroll is not a good time to trade - in my experience.

See you back tomorrow.

Good luck trading!

Michael  www.privateforexcoaching.com

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