A beautiful short set up for the AUD after a very active Asian session.  This is one of my favourite setups to catch and for those with quick fingers - the retracement move long, set up after the US session got underway.There are 3 distinct groups of traders, usually with different itineraries in the course of a 24 hour trading day.  The trading day begins with the Asian traders, followed by the UK traders who control the largest amount......

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EURGBP moved up through our Targets 1 & 2 then showed signs of stalling and reversing evidenced by very wicky candles.  Vertical moves are not sustainable for long and frequently are followed by vertical moves in the opposite direction.  We enter short for a retracement and closely watch prices' reaction, firstly to yesterday's high and secondly, to the Asian session high.  Price penetrates both and we allow a little bit of wiggle......

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GBP sets up nicely as the US traders begin their day.  After a holiday in the UK and US yesterday, the GBP made a familiar move to the downside - rewarding us with a good size move. This trade set up meeting our minimum Reward to Risk ratio of 2:1 (for the US session) with a risk of 24 pips for a potential 80 pips to our Target 2.  As US news approached we tightened the stop to 10 pips as the volatility could easily take out our initial......

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GBP moves up once the US economic news is out of the way.  A nice wicky candle after the news caught my eye.  We waited for further signs of strength before our entry.  We then watch very closely to price's reaction as it moves toward the Asian session high, yesterday's high and the session high.  By protecting our profits and moving our stop up progressively - giving price a little wiggle room at each level, we are able to lock......

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Both the AUD and NZD set up nicely.  We chose the NZD because it enabled a smaller stop loss, but both pairs met our 3:1 Reward to Risk ratio criterion. The UK session didn't take long to show an overall USD theme of strength.  News other than for the UK was relatively light, with the German PPI number already out.When I see a large move during the Asian session, I like to look for a reversal setup.  The NZD showed signs of weakening......

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An awesome week for trading the CHF.  For some reason the CHF has been much easier to find entries this week than the EUR.  I always confirm EUR trades by looking at the CHF for an inverse correlation.  In other words, if an entry has set up long on the EUR, then a similar entry short is typically seen on the CHF and vice versa.Although the EUR is more widely traded and has the better spread, the CHF has had better entries all week.......

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The CHF set up beautifully and with very light news until the US session, a trade is taken short meeting our Reward to Risk ratio minimum of 3:1 to our Target 2. Very little price movement occurs.  Price moved back down into the Asian session range and more or less retested the Asian level high without going above it.  We lock in a few pips in advance of the US traders.  With very little price movement, the US traders are less inclined......

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I love seeing a large move in the Asian session.  This very often sets up one of my favourite patterns to trade.     The CHF bounced off its Asian session low and moved up convincingly.  An entry is taken long with a stop loss just below the Asian session low. This meets our minimum criteria of 3:1 Reward to Risk to our Target 2, that we strive for in the UK session.  If we cannot find a trade until the US session has begun,......

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It seems like all eyes were waiting for the US Unemployment Claims and the US Trade Balance today.  The UK session was relatively muted until the US economic releases.  After the news candle, a short entry is found with a stop above the session high.  Price plunged down near the Asian session low, but found buyers and closed up from our entry.  Price then made its way back down to the Asian session low and tested this level for......

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Some days you get lucky even when you goof up.  Thanks to tight stops and sound money management, we will not get hurt badly if a trade goes against us.  I learned that lesson a long time ago and it was a VERY EXPENSIVE LESSON learned. I do not recommend trading just in front of the news, but I missed the US ADP Non-Farm Employment Change item (no excuse) and could very easily have been stopped out. On the other hand, the charts were unattractive......

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