EUR/USD daily currency
This daily chart shows nicely a common trade entry point. If you double click on the chart you will be able to see clearly that the forex pair retraced nicely to previous resistance (your long entry point as it is moving back up) and reversed back in the direction of the trend.
In most cases I prefer to see resistance coincide with a 50% retracement or hitting a trend line. It is even better if the time is near the London open or the US open.
I am not trading any more this year. This may be my last post until next year. If so HAPPY NEW YEAR TO ALL.
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EUR/USD 4HR Forex breakout setup
Because of the holidays we have a long forex channel forming on the EURO. It may be gearing up for a big breakout. It is 12 noon now on Saturday…
ps My apologies to those with RS feeds as I have been updating my media library.
SUNDAY 5 PM UPDATE: This 4HR chart shows the nice setup on the EUR/USD for a breakout in the direction of the trend. The negative for this trade is that it is still between the Christmas/New Years holidays and low volume may limit any possible moves.
I will evaluate this trade after 12 Midnight tonight.
Final Update: If you entered this trade early in the Asian session as it broke out of the box you had the box breakout sertup for 200 pips. THE SUNDAY EFFECT AGAIN. I did not trade because of the appearance of low volume. The trade reversed right at London open for 15 minutes before resuming the trend, which is often the pattern that you should take note of..
I will probably not trade again until next week when volume and market activity should resume normal function. I will however be monitioring the the market here.
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Merry Christmas and Happy New Year to all. Looks like we are through trading for this week and maybe until New Year. Happy and Prosperous wishes to all.
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EUR/USD SUN 11PM 12/21
GBP/USD 15M There is not much indicated direction in the trade tonight. Let the market show its direction and momentum.
Update: 5 AM Not much movement overnight. I am stopped out for 15 pip loss. We are waiting to see if the EUR/USD breaks out at the US open.
Update 7 AM: Still no breakout. I am done.
Reminder of the day: Always use stop losses and always check your stops and amounts before closing your monitor or going to sleep.
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Trading Discipline. This Post has been working in my mind for some time. The longer I trade the more important I realize that SELF DISCIPLINE is the most important aspect of trading. At first glance one may think trading discipline is only maintaining self alertness and strictly following the trade plan. After considering this for quite some time I have come to realize that Trading Discipline is much more involved and further reaching that I initially conceived.
In order to be a successful trader one has to be open, ie alert to new developments and new opportunities. If your mind is clouded by preconceived expectations you will trade your expectations rather than the reality and you will loose almost every time.
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#1 Your 1st DISCIPLINE is the discipline of alertness unhindered by preconceptions and previous results in order to be able to see and recognize trade setups as they materialize. The failure to see what IS, is the failure of most traders.
#2 Your 2nd DISCIPLINE is sticking to your trade plan which is your trading EDGE. Strangely, your trade plans are preconceived trading rules that you use to react to the market as you monitor the markets Real Time without preconception.
#3 Maintaining your Physical Edge is your 3rd DISCIPLINE. You need to maintain your health and energy level and well being if you are to continue to be able to trade. This is seriously true espescially for new traders who may be working a day job, taking care of a family in the morning and evening and trading at night. While this may seem an almost impossible task I can assure you that it is possible as I have done it. Get enough exercise to burn off the stress you may accumulate trading and living. Eat the right foods to maintain a healthy body. You do this now and you have a good shot at freeing yourself from working for someone else for a living for the rest of your life.
#4 Managing your Time is your 4th DISCIPLINE. If you are trading, working and raising a family then you need a time discipline that goes well beyond the way that any normal man or woman lives. You have to be able to operate and thrive with a lot less sleep than most people believe is normally healthily possible. This is esoteric but I do not know of any other way. Drugs won’t do it. You can operate and thrive under these conditions if you can allow yourself to learn how to stop your mind in meditation. 15 Minutes of silent mind, no self talk, no internal dialogue meditation is as good as 3 or 4 hours of sleep. If you let yourself do this then even if your life is time compromised now, you can become a successful trader and trade yourself into a lifestyle that has much more free time. Learn to meditate and you can give yourself more time if more time is what you need to be able to trade. I recommend “Getting in the Gap” authored by Wayne Dyer.
Sometimes you may find yourself getting stressed and the only answer is a trading vacation. Listen to you body.
#5 Maintaining your flexibility is your 5th DISCIPLINE. It is self explanatory. Like the first discipline it is an openness to a changing market and a changing world. None of us know what is going to happen. What we do know is that once you learn how to trade this market you can trade any market. You can make a living anywhere as long as you remain adaptable, open and continue to learn.
#6 Maintaining a balanced self in the world at large is the final DISCIPLINE. The microcosm reflects the macrocosm. What you express without reflects what you have within and what you are expressing within your self is reflected in what you have in society at large. You can lead a balanced successful loving existence or you can live the opposite life style and try to take it all for yourself. It is your choice. I can tell you that the first option is a much more endurable, honorable, and enjoyable experience. A giver is loved. Giving is loving. Loving is giving. Taking is not. A giver is successful and a taker ultimately is NOT.
Life is full of choices. How you choose to live is the discipline of a trading living. It is not as easy as some would indicate, but you can make a great living trading if you are willing to give it time and discipline.
note: The best book I have found on trading psychology is “Trading in the Zone” by Mark Douglas.
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EUR/USD 8:55 PM Thursday
Update 3 AM: Retracement has went past trend line and may go to 50% Fib at 1.3560.
7:20 AM UPDATE: Man, I missed this trade. All of the other pairs broke their trend lines the day before and the EURO/USD followed then last night. The trade was staring me in the face but I did not see it. If you traded it against the trend as it fell out of the range box then you are up 250+ pips.
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USD/CHF 7 PM PST evening
EUR/USD 5M CHART 1:50 AM after trade
I have not traded the swissy for a long time, but tonight the trade looks very similar to the EUR/USD setup yet it has an even tighter box channel.
Like last night these will be better trades if they retrace first to the trend lines or to resistance/support. Again let the market tell you where it wants to go. Trade with the trend after the retracement or after the breakout. Note: the smaller channel allows for a larger trade with the same amount of risk as a usual trade.
As it turned out I stayed with the Euro break out and did not trade the USD/CHF. My trade is stopped out at 201 pip profit. Excellent night.
Update: 7:30 AM: The Major currency pairs look to be retracing this morning and we will see how far they will go. I am done for today. It is an unbelievable week.
Trade with discipline.
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Continue reading about Wendsday evening US/CHF currency setup
GBP/USD 1HR CHART 7PM tuesday night setup
GBP/USD 15M
The Pound and the Euro have both made big moves to the upside recently and could take a dive. Both are well above recent trendlines. That said, the two pairs could make another run on the dollar again tonight.
The Euro is almost 2000 pips off its low and the Pound may be trying to catch up. I have a slight bias to the upside on both of these forex pairs tonight. Let the market show the way. Trade the breakout or the new high, or the bounce off of trendlines/resistance.
Update 6:40 AM: In the second chart you can see where I entered after the GBP/USD broke out of the retracement reversal box. As of now I am up about 80 pips and have 30 pips locked in.
Final Update 8 AM: The GBP/USD took off after the US stock market opened. I closed the trade with 179 pips profit. My other trade as the EUR/USD broke its previous high/box was good for 200 pips. This is the kind of trading week one dreams about, but is very rare.
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