Usd/chf bids As per background suggests

As I have already stated in my previous posts that the most important thing to read current "Price Action" and which should be a part of "Trading strategy" is the recent price activity or behavior whenever a breakout happens,As when You accept to trade momentum and Fade out moves against the current trend then there are more chances that You develop such "Breakout system" that help you taking crucial decisions at crucial stages.

While I was preparing My this week updates then somebody told me that 1.3115 is extreme support for Eur/usd and It is suggested by leading banks to buy euro for a corrective move towards 1.3270 or 1.3310 probably, But I never take any such action that rely on Support and resistance and price did not give any clue whatsoever to reverse and this type of suggestions never influence my decisions. In reply I recommend to sell euro and If there is any time to sell Euro, then it is now and then next day Euro tumbles 250 Pips. (Suggestion was made on the basis with usd/chf strong Momentum)

Key points that we need to cover In this chart

I miss the great entry in Usd/chf and the reason I set Buy limit because I was looking for test of the value again which never comes and It tells you the upcoming strength of the pair and that exactly what happens. And there is no point in entering in between such strong move because You would ask to cover quickly or set huge stops which is never in trading style.But first spike was small and Entry was offered but Usually such rangebound conditions might have forced me to cover again and added with the momentum again.

While I prepare a checklist of that chart, Then I consider following points

Primary Breakout

Momentum After Breakout

How strong the rejection was (Passive Sellers)

Was there any supply Or Minor development area after neutral days

Most Important Point in this chart is Shift in value and that was the reason why price took so much time in range

when we see primary breakout and almost range bound trading after rejection and then price again hold higher prices or make a new high, Then It is important to line up that pair and see if value shifts again to the downside and behavior of price after breakout of value, and strength of pair should be strong enough to give you excellent continuation setup and that usually happens in strong trends.

Is Australian dollar giving us clues of Creating Overbought Conditions

I will try to keep you updated ahead of ECB and BOE Policy decisions, But I am not looking for Euro or Sterling, But I would try to opt to trade what I see and What others are doing as well, As If there is any Risk created by any unexpected events take place then we will see riskier assets like Australian dollar and gold sell-off.

It is not necessary that it will react as expected but violation and the first strong attempt will clear the way for me to enter, But this time we need to take excess risk but that is part and parcel of trading.

Keep an eye of Australian Dollar

This could be another situation of Supply overcomes demand and Every attempt has succeeded and liquidation follows but we need to keep and eye on the pair at this particular time Because of risk could totally reverse the pair and fade the recent momentum breakout.

We need to prepare ourselves and If you really believe in fading extremes or fading the particular price action attempt then you can fade out the candlesticks attempt and look out for much more deeper in-depth analysis (rather only candles),as it will really help you built a successful trading career.

When your thinking is unique and gives you edge, then Price action is in itself would seem not as complicated, but we make it simpler by our attempts and control of risk like such activities where you risk is very little and reward is totally 4-5 times of the risk and possibly a complete reversal.

Update of the post cad/jpy How to use Trailing stops

First I would like to mention to my followers about the chart I posted Few days ago, Where I mention How to Use trail stops. Take a look at the chart here

Hi traders! IF you watch my blog regularly then You might have notice that I am consitently looking for something that has logic and I have clear all the doubts in almost every post. This is an updated post of the chart I posted on Wednesday last week, where I cover technique of "How to use Trail Stops" in trading and Today ahead of BOJ rate statement and Big impact day tomorrow, I am looking to wind up all the positions, and will look to enter again If an entry will be offered, and High volatility is expected in next two days, as traders are expecting too much from Banks but getting almost nothing.

Updated chart of Cad/jpy

Pair is still in strong demand and background has not seen any strong sell-off and whatever selling we have seen was against the "strong Holders" and immediate buying is strong sign of demand coming up again on daily lows, and one strong sign is when ever pair face sell-off it went to make a new high and it happen almost on every sell-off.

When you see such behavior you should be looking to remain in the trade for long time than expected but big news can create risk in the market and We should respect this situations and sit aside and see what happens and then we should trade our levels and ignore everything else

Breakout Trading succes : How to trade breakouts with supply and demand ...

Price Action basics Primary braekout and price behavior

First I would like to mention to my followers about the chart I posted two days ago i.e Aud/cad. Take a look at the chart here

I post this update ahead of BOC rate statement But what background is telling should be the primary need of a trader, to see whether the "Imbalance" is still presence in the market and when we see Primary breakouts out of ranges and look to spot "Reversals", the we need to spot that Imbalance first which shows that strong holders are still present in the market and They will buy if there is strong sellers going against them, and then we see spikes and that is what is necessary for a trader to enter with Low risk and usually cover position if that fades out quickly

Updated chart of Aud/cad

If we see another attempt to buy and see possible accumulation, after that activity and market end the day on lows which shows that Market might have again gone against the strong holders and With Background earlier shows a sign of strong seller, Then need to spot out logic and aggressive trading is name of such activities and We just need to spot out momentum , If it offered after breakout and market usually don't hold for too long that area and rally strongly afterwards in panic and Strong holders will buy with even much force