Possible Currency pairs to eye this week

Hi traders! I have built up a complete list of the trades I would try to eye ahead of this week and I would try my post to keep you updated when Opportunity would be provided

Because of the fact it is big week full of events start with UK PMI's, Aussie Interest rates, BOC Interst, Euro and BOE policy guidance and At the end of the week biggest release of much awaited NFP

Below is the list of the trades I would recommend

* Aud/cad

*Gbp/chf

*Aud/usd

I will try and keep the blog updated for the latest updates If market give me an opportunity to a possible low risk setup

Update of the post How to Use trail stops

I am continuing the post "How to use trailing stops in trading", and what better time to close the position followed by sell off and also during the weekend, otherwise I would take a chance with strong aggressive day about to close almost near the open but still we have to behave at exact time to preserve our profits and let the position run to get more out of a trade.

Those who did not check my earlier post Take a look at the chart

Update of the chart Cad/jpy

As I have stated in my previous posts that "Imbalance is what creates trends, and balance creates ranges", and Neutral day activities after strong trends breakouts is a very excellent clue of Imbalance and even though sellers were quite aggressive but buyers really manage to close day almost where It open.

You need to put simple thoughts if strong holders not were buyers then How did they manage to bring the price upto the open after strong selling yesterday

When we see price again start pushing up higher again after clearing up the noise, another entry was offered once again which need to be covered around 94.00, when price failed to make a new high and went on to close below the yesterday high. These simple things really differentiate smart traders from novice who miss logic piece in their trading approach.

As I have always manage to keep to the blog full of knowledge and with complete logic, One can anytime put any question in the comment section if Any such confusion occurs.

How to cover or trail the position

It is very important aspect of trading and it is must to use "Trailing stop", specially when price rallied right after you open the position and those who don't check my earlier post then take a look at this chart.

Update of the chart of cad/jpy I posted yesterday

As I mentioned in my previous posts that it is necessary to understand the logic and when you have few points that cover you entry and force you to enter the trade then it becomes important that you ride the most part of the trend, specially when trend is as stronger as I have mentioned yesterday.

I have booked half of my profits in that trade and as price has shifted equilibrium then there is good chance that it carry the momentum through out the day but even I would be stopped out, there would no regret as It is planned well before the event has taken place

How to spot Intraday Scalping opportunities.

In this post I would like to cover few points when you scalp for Intraday purpose.

The first thing you need to spot is to see If there is imbalance still presence (First clue always is neutral day after breakout where seller's are passive)

Second thing to see if there is minor development area after breakout (Say if there is aggressive to mark the price again to the up after minor sell-off)

After minor development area, Price again end where it starts (End up as neutral day which will confirm that imbalance is still present in the market)

After you see these clues the next important area is what price does after testing that minor development area, if it show immediate aggressive buying then you can immediately enter the market but if that momentum fades out earlier you should get out quickly. For me the best clue is often the slow tempo, and then suddenly price breaks the equilibrium after the minor rotation area breakout and test and you can get some nice profits as in this case in the above mentioned chart.

Moving Market accumulation Price Action Basics

IN this topic I would like to cover the most important point where we can see strong buyers or strong money participation and "Accumulation of Moving Market" is a good example of this. Not most of the traders are aware of this fact that accumulation process can be done on moving market specially when we strong liquidation after this process and we see some strong "Protection Area" (As shown In the chart) is a good indication of strong money Participation.

Chart of eur/jpy simplifies the post

In the chart I posted above we have seen some strong accumulation which means that there is strong supply in the market and price rises of that low and that In order to move the price we see strong money slowly accumulates the price.

We use to see strong momentum building through the mid of the day and tempo is very low at the extreme which is a strong sign of "Imbalance". We need to see a strong sign of liquidation which comes after the breakout and that heavy selling had some protection area at the as price pause after test the low of those accumulation area and price again went sideways for a day or two and then "Breakout and Test" was good enough to enter and then price rallied strongly to test the highs once again

Momentum trading Best way to approach forex trading

I will update the text later, Busy in some assignments But I will surely update the blog today after the end of U.S trading session

How to trade Momentum

Example Of Momentum Trading

Recent activity spotted in Usd/chf

In this post I would cover How professional trade momentum, Basically it is not necessary that If somethings work for others, should work for you and momentum trading is no different, Because when You try to trade momentum you need understand few Important things and needs to build a check list.

A. Breakouts

B. Rejection After Breakout Should not go too far.

C. First attempt to rise after After breakout

D. Seller's behavior after rejection After First Attempt Failed

Following the above mention points, I would concentrate more on charts which clear the idea how professional traders and they don't need to keep sticking to the screen and wait for the opportunities but rather they eye some levels like rotation center, Momentum after breakouts, Levels protected, Reference points.

Although it is not necessary to cover all these points when you decide to change you trading style and opt for momentum (which for me is the best way to trade as It always tells you when to enter quickly and cover quickly before momentum fades out.)

In the above mentioned chart, there are few levels I have mentioned which are primary breakout and rejection levels and If you want to add few more confirmation life if there is neutral day after breakout and If that level is protected in the first attempt and market rotates around that protection area.

Any question asked will be replied with best of my knowledge.

How to trade Break-Away Gap

In this post I would try to cover One way to trade the "Gap" In currencies. And this is the point which I have never covered in my previous blog posts But I never sight any such activity.

SO, When I was today after opening I saw correctional bottom and price reverses away with break away Gap and One important thing it done was test the broken level with the same candle and price never stops after that.

There are lot of other ways to trade "GAPS", But there has to be true logic behind the price action, which can guide you through the previous day activity, which in this case was neutral after strong selling. One more logic was that previous swing makes continuous higher highs and price bounce of the demand zone was good enough in this case and "Break-Away GAP" fulfill the rest of the requirements in this case. Most of the traders look and wait for the gap to be filled but not in such case where price went further away from GAP.

Usd/cad Intraday Outlook based on Price Action

Ahead of very choppy session in panic trading Eur/usd give away all the gains and that has happened thrice in this week, So far my bias for Eur/usd is neutral to bearish ahead of FOMC Meeting next week.

I will post the usd/cad chart, which is more likely to move today with some good strong manufacturing data about to release.

Chart of Usd/cad will be posted later in the day

Overbought and Oversold Market Real Terms

I have cover most of the points of "Price Action" in my blog. But I would like to put more thoughts in new Trader's mind that what is overbought and oversold market and recent with Recent example. Being "Overbought and Oversold" is not When an oscillator give you some reading above or below the predetermined values set by trader. But overbought and oversold situations are created by Market movers like "Institutions". And they often end up the traps and then Market Liquidation breaks is confirmed after that momentum which comes in late after first part of the move.

See the chart of Gbp/usd I have mentioned below with Recent Price Activity

I will more on that topic in the days to come because it is so necessary to confirm all the points before we need to take a look at these type of traps and not to use that setups and try to analyse every market as "Overbought" and "Oversold" Market.

Are we Seeing Shift In Value ? Price Action Basics

Update Chart of usd/chf Prior to European Open

I was unable to update the blog for last few days,then opportuniites were quite rare. But I have come up with another chart where I have seen Another Possible
"Shift In Value", in usd/chf chart. If You watch the chart closely, then there are multiple signs of buying at low levels after recent shift in value marked by Blue Rectangle.

After that We have seen some netural days and some passive seller move the price down but every-time we see that shift to the downside, buyers step in and move the price with strong demand again to the upside, And the Values is again shifted to upside and watch if the top is taken out, but as long as high is not taken out, we can see another failure But as Price is moving ahead with strong force we see of another test of hot-spot area which as it has done twice, and possible go beyond that area this time.

Moment I saw that chart today, I was wandering If an opportunity waiting on the sidelines and Is it would be worth to watch that price line today with Asian session could be crucial one And "Zew-Economic- Data" From Europe about to release later today and any strong deviation could really lift the price of Euro and its counterparts.

It is really worth it to take a lot at different setups when you trade "Supply and demand" with the help of past few days trading activity.

Trade gbp/chf My last week best trade setup

Here is update of trade gbp/chf chart with Explanation

As I mentioned in my previous chart examples that I love to trade this type failure attempts and when price get strong demand from a level after building and spending so much time near the highs and when price falls it gets good protection.

So, for me it was two trades both long at first attempt of development area, and second it was short after the attempt failed to test the high's and when it is clear that earlier attempt was "Momentum candle" Inner space Rotation, and confluence or double bottom, the second pattern trap give me strong confidence that this is yet another classic trade example and patience really pays when you can trade these type of logical trade setups.

update of the eur/nzd chart My last week trade

Here is update of trade Eur/Nzd chart with Explanation

As You can see in the chart pair breakout from a level and real maintained a level above after building strong reference points, on neutral days and when value shifts in such case,the breakout was false and it was another bearish engulfing trap, that ends with some congestion candles.

When You have such scenarios then you always look with the first attempt out of that failure with strong rise from the false breakout level and that is the good part with very low risk and possible very good reward and In the end I have to cover with some strong rally to the downside, And If you watch the chart carefully when value shifts and price and when it test the area then most of time that area is protected and that is also the low or recent rally

Stay tuned for more updates !

Update of the chart of New zealand dollar My last week trade

Here is update of trade nzd/usd with Examples

As You can see in the chart the angle of the impulse is 360 degree and I enter with the breakout candle as It has the logic but with considering background it hurts a lot but I cover at small loss, But trade Idea was good as overall trend was strongly bearish and that is the only loss I had last week

Stay tuned for more updates !

Trades That I tool last Week An Insight View

Here is the complete list of trades twith Examples

A. Usd/chf

B. Gbp/chf

C. Nzd/usd

D. Eur/nzd

E. Eur/cad (I Miss that trade but opportunity was there)

Below are the charts of the trades I took last week with complete explanation that "How I analyze the market, How I was able to fetch few good pips beside few losses as well. To start of I would like to post my chart of Usd/chf and entry was taken from 1 hour chart.

to be continued........

Price Action Basics l How to trade reversals

Update chart of gbp/chf

I posted a chart Earlier in the in which I mentioned "How to trade reversals" and the good part was that I post a chart with recent activity and that chart was gbp/chf, and In now time price action witness a healthy sell-off from 1.5280 to 1.5200 and that was on the cards

Lets Explain further that what happened with the price the such quick fall in price action.

Moreover, It is natural behavior because when earlier attempt to reach the highs has failed after double bottom and price try to repeat with liquidity candles which was strong enough (The bullish engulfing patten I marked with blue rectangle in the second part), and was also the rotation center violation on the h1 chart (The chart I posted is h4).

When we really look to trade momentum through-out a day then we should first book partial profits because of recent low tempo, can really force price to visit broken temporary support and resistance areas.

I would try to post another example If I have time to time as I have try to keep updating the chart whenever I spot any opportunity

Another Example of Mature trend Relationship with Candlesticks

We have a live trade going on which I would like to see how demand area behaves when trend is mature enough and look to reverse.

Role of strong Momentum Candles

or Elongated Candles

When we looking for a trend to reverse We Use following points as checklist :-

A. Liquidation ( How price has behave when sell-off taken place)

B. Recovery (Whether the attempt to recover was successful)

C. Momentum Candles (How price behave at strong momentum or initiative Breaks)

D. Candlesticks Traps (When price reverse, Does a candlesticks pattern entry was offered)

Above mentioned checklist, Is must have when we prepare any "Forex Trading Strategies",because these are strong points which are considered when we look to trade reversals and most important one for me strong liquidation after strong trend and after that attempt to recover and then was there any pullback entry was offered and then try to see the last but the strong that whether price reverse after that pattern amid strong momentum candles .

That is how We trade reversals and I would advice everybody to prepare a Journal or checklist to trade reversal or if you want to trade pullbacks I have shown some good strong points how to trade pullbacks in this blog and Would post again from time to time If situation demands or any requests are made.

Role of Elongated Candles in Understanding Contet

Role of Elongated Candles in Predicting the overall Picture

I got numerous of charts and request regarding How strong candles can works as strong reversals when we try predict it as a part of Reversal.

I will clear it in few examples that how we can see mature trend followed by bounce of the inner space of that elongated candles and then we see Price test the high after find the low of correctional bottom

Most of time In Currencies case, Price do tend to behave and take much more time in reversing rather in cases of stocks and commodities, When price does tend good time at the top then we always realize that It is holding high prices and will offer a pullback but it never come specially when first attempt to reverse it too strong as in this case

That attempt was so strong that it did not offer and candlestick pattern to offer pullback but if You watch the next attempt to revise from the Inside of elongated candle it does offer couple patterns which fails and price finally rise when it test that candle.

As I always suggest that never sell at the downside breakout or never buy at the upside breakout but try to built such trading strategies or breakout systems that offer lot of logic, As in this case. It's not easy to built a reliable systems but still for trading something has to have enough potential to compete with the best in the industry.

Forex Trading Strategies l Beginners Price Action Based On Supply and De...

Price Action for beginners supply and demand level Institutional activity

Time for monthly updates.

Take a Look at the Update USD/CHF Chart

Extended Accumulation and Reference Points

Hi, Traders I am here updating Usd/chf as the first monthly update on the basis of previous month trading activity. I have seen previous month extended accumulation and risk of reversal is minimal but even if it is reverse than we should look to go long around 0.8853 area but as We have seen the test could be successful of 0.9138 area(As After testing the area on Friday Price is holding that area) and if I am right price will start rising with aggressive volumes coming in the pair again.

Those who wait for ECB meeting on Thursday can delay this setup or look around 0.8853 area which should hold when offer so much protection earlier but it all depends on type of activity if price reverses from here.

If you scan all the previous months activity then to start with we have we neutral months which make the breakout and after those reference points price went in range after rejection from upper boundary of the rectangle as I mentioned in while line.

Price rejection from upper and then from lower boundary confirms the setup but stil more aggressiveness should be here to make this set up successful.

This type of setups are quite rare

Exactly, when someone look for setups then One must look for this type of setups which offers low risk and maximum reward opportunity and that could be the one which could really start a new trend from here on and that would be the strongest of the trend what we have seen, And a rejection from here will let you add more around 0.8850 area , But that's not the way I trade but that's how position traders use to enter.

Update of Eur/cad chart Shift in value test and Rise

Take a Look at the Update Eur/cad Chart

Check My previous post here

As I mentioned in my previous chart that rise is eur/cad is on the cards as it happens when in strong trend value again shift with momentum and price tested the area and more aggression was shown.

Forex trading is all about opportunities and when you are provided with one You should be looking for reward and when price tested the broken high or low then when it shows aggression, It makes sure that there could be more to come and that is what really give you time to calculate your risk (Its almost impossible to calculate your risks in trading)

Opportunities are multiple but less optimistic

That's so true, there is no point in looking at historical chart and keep forcing yourself of an entry when it does not exist at all, It should be a part of our "Forex Strategies" plan that what are our strengths and what type of market we prefer rather than try to trade every opportunity available, selective approach always pays.