Forex Tips and Tricks

A nice move down on the EUR once a lower high became evident. The breakout long traders got lucky, so we had to be patient. The CHF confirmed the EUR move and AUD also set up nicely.

The UK traders faked short at the open, then reversed the EUR upward taking all the breakout longs along for the ride. Price peaked then put in a lower high with a hammer-like wicky candle. An entry short at the open of the next candle met our 3:1 minimum reward to risk ratio. Price moved down allowing us to take the risk out of the trade and move our "take profit" down above structure. Although neither of our targets is hit before the UK close, the trade worked out very nicely.

Good luck with your trading and always be selective and patient with your trade set-ups.

Back tomorrow.

Michael www.privateforexcoaching.com

Very modest EUR trade gain to begin the week. A very rare trade placed in front of the news due to my not believing that the Italian Bond Auction would be a big market event and a 10 pip stop made the trade very affordable. With a better than 3:1 reward to risk ratio, a long trade is taken, but after Target 1 is obtained, we are closed the next candle, as we protect our Target 1 profits. Target 2 is also hit but without us.

Last week was a great week. This week we start off modestly. We will not be trading Friday as it will be the Non Farm Payroll release. Hopefully we will find some good trades tomorrow and Thursday.

Back tomorrow.www.privateforexcoaching.com

Michael

The EUR offered up a nice trade again, to end the week. As the UK session began, the European economic news was released and behind us. The next pending news would be in the US session. The EUR traded sideways then began to rise but did not take out the Asian session high. Price then reversed and a short trade was taken. This same setup is mirrored with the CHF confirming the trade direction.

Price moves to the Asian session low and closes before dropping to our Target 1 level. I teach my students to not give back profits once Target 1 is hit. We close the trade on the next candle to protect our profits and end the trading week.

It's been a great week for trading!

Enjoy your weekend!

Back Tuesday.

Michael www.privateforexcoaching.com

Beautiful EUR trade setup with a reward to risk ratio of near 6:1. This trade offered 2 entries with very little risk for either. With no European economic news releases of consequence, a trade short is taken after the wicky candles indicated the top was in place. An alternate entry followed with a lower high and a bearish engulfing candle. The risk was removed early as the trade progressed down and our stop loss continued to be moved down to protect our profits. It looked like our Target 2 would be hit in advance of the London close, but it wasn't to be. As opposed to giving back a few pips to get 4 or 5 more...the trade is closed.

It has been a great week! The majors are moving well again - including the GBP...which is nice to see. I was wondering if we would have to wait until after the US election.

Not every week will be as kind as this week has been - so this makes up for the dull boring ones, when the signals are less clear.

Back tomorrow and remember the words below by Curtis Faith.

Michael www.privateforexcoaching.com

"Trade with an edge, manage risk, be consistent and keep it simple."

Curtis M. Faith - who earned more than $30 million dollars trading for Richard Dennis

The GBP is once again showing signs of life. The EUR got away from us overnight, but the GBP looked good once the "wash and rinse" was completed. This trade was acceptable as it met our 3:1 reward to risk minimum criterion.

A surprisingly bad economic news release out of the UK did nothing to dampen the rise of the currency. After our entry, price rose to our Target 1 level and pulled back forming another higher swing low. As price struggled to rise and close above our Target 1, we closed the trade to lock in Target 1 profits. I teach my students not to give back profits once Target 1 is obtained. By leaving the stop loss now "take profit" just below structure, we would be giving back pips, so it is safer to lock in the profits and return another day. As it turned out, price moved up strongly just an hour later beyond our Target 2 - in one candle.

The week continues...

Be methodical with your trading and never chase trades!

Back tomorrow.

Michael www.privateforexcoaching.com

A wonderful way to start the trading week! There were lots of trades that set up during the UK session. The EUR is usually my first choice - if all things are equal. After testing the Asian session low and pulling back somewhat gently, our trade set up. With a stop just above the pullback high and a greater than 4:1 reward to risk ratio to our Target 2...(meeting our 3:1 RR minimum), we enter short. Price pushes through yesterday's low and pulls back briefly before plunging through our Targets 1 & 2 in the same candle. We close the trade as the candle is about to close...delighted to start the week with such a nice trade.

Take what the market offers and don't be greedy.

Back tomorrow.

Michael www.privateforexcoaching.com

A relatively sedate end to the week. The EUR continued to make lower highs and after not re-testing the Asian session high, we chose to go short. There wasn't any EURO economic news releases scheduled, and the EU Economic Summit moved into Day 2 (yawn).

The trade enabled us to have a very inexpensive stop just above the Asian session high, and our concern was to get through yesterday's low and the Asian session low without being whipsawed. These levels were tested and re-tested as expected, and the trade seemed to run out of gas as it passed through the Asian session low - where we would expect breakout sellers to enter the market. We tightened our stop - now "take profit" accordingly and ended up with a modest gain to end the week.

Back Tuesday...

Enjoy your weekend!

Michael www.privateforexcoaching.com

The UK session didn't offer any acceptable reward to risk ratio setups overnight. When this happens, it's best not to trade and come back tomorrow.

Once the Spanish bond auction news result was released and the EUR started to move up, the stop loss would have been approximately 26 pips and Target 2 was approximately 50 pips away. Our minimum is 3:1 meaning we needed Target 2 to be 78 pips away from our entry. We also don't like stops that large. When this happens, it is best to look at other pairs and when they don't offer better trade setups, we walk away.

"Trade with an edge, manage risk, be consistent and keep it simple."

Curtis M. Faith - who earned more than $30 million dollars trading for Richard Dennis

Back tomorrow...

Michael www.privateforexcoaching.com

Commodity pairs made large moves overnight. Both the CAD and AUD strengthened against the USD. The AUD is usually easier to trade and it set up with a very low risk trade. Once all major economic news releases were behind us, we entered long with a very cheap stop, giving us a 4:1 reward to risk ratio trade setup. Price moved up above the Asian session highs and continued to Target 1 and up to Target 2. At Target 2, we know that price is much more likely to pull back than to advance further. We closed the trade on the next candle - as the spread kept us from being closed when Target 2 was touched.

The AUD appeared to get a second wind and rose even higher... but without us. Keep it SIMPLE and NEVER be greedy!

The week continues...

Good luck with your trades!

Michael www.privateforexcoaching.com

The EUR set up nicely for us once the German ZEW release came out. After a large news candle down - a bottom was put in and the EUR moved up to our Target 2. Protecting our profits as the trade moved in our direction as always...we captured a better than 5:1 reward to risk trade. When you spot these...they can really help make your weekly trading goals.

Off to a good start for the week.

See you tomorrow.

Michael www.privateforexcoaching.com

The CHF looked better to me last night than the EUR. There was no significant economic news for us to wait through. A very inexpensive stop coupled with a greater than a 5:1 reward to risk makes this trade very attractive. Moving our stop down to just above the lower swing highs keep us in profit and our Target 1 and 2 are hit on the same candle.

The concerns for this trade were getting through the Asian session low and having price swing up and take us out at our stop...the classic wash and rinse that breakout traders will suffer 80% of the time. The second concern was getting through yesterday's low. Once price got through yesterday's low, we were quickly rewarded.

I'm out of town tomorrow...back here Tuesday.

Good luck with your trades tonight!

Michael www.privateforexcoaching.com

Quiet trading overall in the UK session, but we managed to squeeze some pips out of the AUD. The Aussie dollar had been making higher lows and once the breakout traders jumped in long after the UK session got underway, we waited for the pullback.

This entry allowed us to enter with an 8 pips stop loss and a better than 5:1 reward to risk ratio to our Target 2. The trade progressed fairly quickly allowing us to remove any risk and place our "take profit" below structure. Price seemed to run out of momentum at our Target 1 with a wicky candle closing below our first target. We exited on the opening of the next candle for a few pips.

Let's see what tomorrow brings us.

Good luck in your trading!

Michael www.privateforexcoaching.com

It appears that the EUR will be making headlines this week, but the AUD set up nicely for us overnight. After initially moving down as the UK session got underway, then consolidating, it retraced upward...forming a lower high with wicky candles as it ran out of upside momentum.

We entered short with a stop just above the lower high, with a reward to risk ratio of better than 4:1. After zipping through the Asian session low and barely missing our Target 1 (due to spread) - we tighten our "take profit" and exit for a very nice profit. My students would recognize that after the candle that touched Target 1, price had an 80% chance of retracing upward. This is not due to it touching Target 1, but due to an advanced technique that also tips us off as to when to tighten our "take profits".

Excellent start to begin the trading week.

I will be travelling on Friday, so it will be a short week for me.

Good luck with your trading!

Michael www.privateforexcoaching.com

The EUR made it to both our targets today, but without us. There was a lot of news pending for the GBP, EUR and USD overnight. Price chopped back and forth in advance of it and then reacted positively with the EUR making it to and beyond the 1.3000 level. Expect this level to be tested and retested as it is a major psychological level.

Although the EUR appeared to be making higher lows as the UK session progressed, I chose to stay out of the chop. Once the news was out of the way, the EUR had climbed significantly and our minimum 3:1 reward to risk was not to be found. If the news had been perceived negatively by the market, the drop could have been just as significant.

Always be very cautious of trading before major economic news releases and be especially cautious of trading in advance of an accumulation of major economic news releases - like today.

Tomorrow is Non-Farm Payroll Friday in the U.S. and the market is usually pretty flat in advance of the release. I don't trade it....so I'll be back Tuesday.

Enjoy your weekend!

Michael www.privateforexcoaching.com

A little quieter overnight with no significant EUR economic news. After another quiet Asian session, thanks in part to China being on holidays all week, a favourite pattern emerged as the UK traders came on. The European traders had taken the EUR up starting their session and the UK traders took it down - through the Asian low then snapped it back up after luring in the breakout traders. Although neither of our targets were hit, we are always happy with 30+ pips.

Lots of economic news tomorrow...so be very careful with your trading... especially when the US session begins, as there is an ECB Press Conference and US Employment Claims.

Back tomorrow.

Michael www.privateforexcoaching.com

EUR sets up nicely with a better than 5:1 reward to risk to begin October. No significant European economic news releases to keep us out. This familiar pattern set up after a quiet Asian session enabling us to enter the trade and progressively move our stop loss level to "take profit" as the EUR stair-stepped upward forming higher lows and reaching our Target 1.

This was an excellent trade to start the short week. I do not trade on Non Farm Payroll days...so I will not be trading the UK session on Friday.

Keep in mind that China is off all week and the Asian session may be more subdued as a result. This bodes well for the UK session trading.

Good luck with your trades!

Michael www.privateforexcoaching.com

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