Forex Tips and Tricks

The EUR continues to move higher this week and is up substantially after two down days at the beginning of 2013. After testing the Asian session lows, it began a slow ascent to test the Asian session and yesterday's highs. With little significant news out of Europe or the UK and Non-Farm Employment Change numbers due out tomorrow, the EUR topped out near yesterday's high for modest gains.January was a month where levels from last year......

A number of the major pairs reached our Target 2 overnight. I didn't like the setups, so I didn't trade them. When a currency pair breaks out above the Asian session high or low and runs, it is best to let it go. "It's never a good idea to chase a trade." - my mentor always said. He trades in the tens of billions of dollars, so I maintain his words of wisdom in the forefront of my brain, before I take trades. This rang......

With no significant news releases out of Europe or the UK, we await a familiar setup. The EUR begins the UK session rising but falls short of the Asian session high, puts in a double top, followed by a bearish candle to the downside. We enter short with a stop above the Asian session high. This setup just meets our minimum Reward to Risk of 3:1 to our Target 2. Price begins downward and just over an hour into our trade, price......

The EUR made an extended move during the Asian session. My preference would have been to trade it short if the setup presented itself. Instead the EUR broke above the Asian session high, then re-tested that level. Due to the fact that we were so close to the Targets 1 and 2, the minimum Reward to Risk of 3:1 to our Target 2 wasn't there. This is why I had wanted to see a short trade setup that I could take which would meet......

The GBP set up for a nice short overnight giving us a Reward to Risk ratio of 4:1 to our Target 2. It slowly drifted down toward the Asian session low. It then dropped significantly in advance of the US Employment numbers, after the US traders entered the market. When this happens, protect your profits before the candle even closes, by adjusting your "take profit" in advance of the news release. The reaction to the news could easily......

The EUR has been consolidating since January 11th, but it is still putting in a nice range most days. There was no major economic news releases for either the EUR or the USD today. The annual World Economic Forum in Davos Switizerland began today. Keep stops tight. The potential for whipsaw movements is there as this conference hosts representatives from over 90 countries.It took a while to set up but with the EUR showing......

Walking away from a beautiful setup is hard to do! Walking away from a setup that doesn't meet one's Reward to Risk ratio requires discipline. Without discipline a trader will flounder, lose both consistency and confidence.This beautiful setup required approximately a 25 pip stop loss to ideally net 54 pips. This did not meet our 3:1 Reward to Risk ratio minimum. It is always better to come back tomorrow than to break one's......

A familiar pattern set up with the EUR when the UK session got underway. Price came down and broke through the Asian session low, luring in breakout shorts. Price pulled back twice before producing an acceptable entry for us. Our minimum Reward to Risk of 3:1 to our Target 2 was met. Price pulled back one more time testing our decision making for the short trade then dropped precipitously.Price dropped through our Target 1......

No significant economic news until the US session got underway. The GBP had attempted to move up but had no upside follow through as is evidenced by one wicky candle after another.After the first round of US economic releases, the GBP fell back below the Asian session highs and gave us an entry short meeting our minimum Reward to Risk ratio of greater than 3:1 to our Target 2. Price continued downward, but closed well above our Target......

A familiar pattern set up in the GBP overnight. After a series of lower highs during the Asian session, the UK traders pushed price down luring in breakout sellers. Price retraces and rises, and does not take out the most recent Asian session lower swing high. Price reverses and begins to head lower. Our Reward to Risk is greater than 3:1 to our Target 2 and we enter short. The pattern of the of the reversal is a familiar......

EUR offered up a nice setup overnight. I like to see a big move in the Asian session. We wait for the news to pass and vigilantly look for an entry.The UK traders began their session by retracing the Asian session's move lower. A wicky candle catches our attention as it creates a lower swing high. We wait for further confirmation and enter short. Our Reward to Risk meets our minimum of 3:1 to our Target 2. Price......

Late in the session we catch a nice move to finish the week. A lot of patience is required to be a successful trader. We patiently wait for our familiar setups to present themselves and some days there aren't any. Last night our patience was rewarded.(I forgot to mark the UK open and close on the chart today. The UK open is the first candle after the blue channel. We were out of the trade just as the US stock markets......

It was all New York today. I didn't take any trades for 2 reasons. Firstly, I had computer issues at the beginning of the session and secondly, with the delayed economic major news releases, price was already too close to my targets.Years ago, it would have frustrated me to have missed a large move... not anymore. The market isn't going anywhere and it will be there long after I have left this world. There is always going......

Both the EUR and GBP looked good overnight. I preferred the GBP as the setup was clearer to my eyes. The UK traders pushed price above the Asian session high, luring in breakout longs. Price pulled down, went up one more candle, followed by a very wicky candle and a lower high... which forecast the set up of the reversal short. The Reward to Risk was better than 4:1 to our Target 2 level. Although we never made it to Target......

Happy New Year!The EUR looked like a nice trade setup over night. The Asian session high was a very significant test. (Hint)The UK traders did not retest the Asian session high and once news was out of the way the EUR set up nicely for a move to the downside. Our entry allowed us an affordable stop just above the wicky candles earlier in the session. This met our minimum criteria of 3:1 Reward to Risk to our Target 2 level. Price......

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