Eur/usd and usd/chf Update Strong Correlation

Hi Traders,
Its Quite a while since I have updated the blog after the Aud/jpy which was faded away by several attempts.

I have spotted the activity in Euro and Swiss Franc which are strongly correlated and it can be seen in charts of both the pairs.



Eur/usd chart Strong Breaks with Strong Engulfing pattern 

Its quite visible that both of charts are quite similar and the activity in the both charts means that strong money is buying and selling them in the opposite directions and we need to find out area which can give us maximal reward after strong sideways movement .

I would recommend to take one entry and not use both because this will double your loss but if you still can manage both with the tight stop then strong movement can be spotted in both of them as origin is still quite far away from current levels.

Aud/jpy Update Room for Trends is still there

 







As We have seen so many time Sellers pick up the trends and do tend to pick profits at crucial levels and then price is often continue to spike up till it found conditions to reverse

Chart of Aud/jpy is making same efforts after clearing strong supply areas and now testing them silently to test If there is enough demand for the price to continue its way up.

 I would really be watching this pair closely as more than potential trade is on the cards if Bulls attack this breakout level again. There is no clean demand but there still need to evade the supply it has.

Currency Trading Level by level and Few trades updates

Hi, Recently I have post few articles on few forex sites about currency correlation and what is level by level trading. I thought of only one thing while thinking of Correlation is that its all about global demand and when few pairs are strongly correlated then they move in tendum.

By moving synchronizing I mean to say is that Long term trends as Aussie and Loonie (Canadian Dollar), are strongly correlated as they are driven by global risk and if global economies are growing then demand of both the currencies are strong and vice-versa.

I don't really trade correlations or hedge both of them if they went against each other on a given day or a given week or month. But still we have to be sure what we are doing in trading because It is not recommend anywhere unless you are vastly experience and have good solid confirmations in the past the doing such acts can really bring money in long run.

So, Lets talk about trades updates and I have really got one strongly going my way but due to some busy schedule I get in late but still it was good enough when you are looking for direction and pairs went here and there looking for buyers and sellers. In the meantime One currency which was in strong demand that was Sterling and when there are strong swings and clear path sterling really moves a lot in a given day.

Parliamentary elections and BOE rate decisions and Hawkish comments really put a lot of steam behind the current sterling movement and my currently pick of gbp/jpy is the result of such strong pound movements across the board.

Gbp/jpy Trade Update.

As You have seen in the chart that all the move from low to high are completely synchronized level by level and when you have such clear swings telling you so many things than moves that test previous zone while compressing then there are lot of hints come together when you saw sudden spikes and no such great sell-off.

Recent, Move was a great example of Imbalance and when you trade according to you what market makers are eyeing then You must do one thing and that is look for Imbalance and that should not disappear and Every liquidation break in such strong breaks are often bought with strong demand.

Trade Update Usd/jpy

Hi Traders,

Why I always love trading currencies than stock or future trading, because currency trading is the best way to predict the predetermined moves to levels as it is very easy to  spot  increasing demand.

Same rules are used to spot absorbing supply but there are different way we can use How price accumulate and How it is distributed. I will cover those two methods in my posts in coming days and weeks.

Chart that I have posted above is a perfect example of Rising demand  as we have witness some weak rally to demand  as Price use to Compress twice while it test the demand level and most importantly the spikes out of that demand area after few attempts at supply fail.

 Price not willing to fall as downside rally unfold

As  you see in the chart that downside rally are slow to unfold and upside rally are more powerful and also price rise most often when it test the area and last spike from that areas was the most powerful and price really carry that spike to break above the supply area. Giving us lot of Intraday opportunities to go long as price establish new demand areas below that last spike.

Trading is all about remain conscious

Trading is all about remaining conscious and really to dig in when that opportunity arrive and that is what Supply and Demand is all about, as it always gives you opportunity to think ahead of the market.

Thinking too far ahead really put a lot of burden on you mind and hence shifting timeframes could be issue for you, But remain focus and calm and checking what Price is doing on different time frames really helps us to pick some food to remain alive and when opportunity offers you to bag bigger then we always have the privilege.

Trade Update Eur/cad

As It is cleared in the chart that price activity after rejection of demand and supply, and reaction after broke the area and initial activity was slow and follow up moves were strong and finally today when European session begins price rise with wicks and absorbing all supply and after that there was strong bull candle which test supply and it was the area to take 50 pips profits and sum up the day.

I have certainly spotted up buying to start off the day in Eur/Cad, specially the day when lot is expected from Fed to deliver but as it happened in the past there is not much coming through. But still I would be looking to see if the new demand area is again tested on day and if imbalance is still present in the market I would certainly step in and bag few more.