Forex trading is all about limiting the risk & get the best of the trades with a limited opportunity is in sign in a week. But if you target only few pairs & price Action on hourly and below, then probably you are on the right path. Looking too long time frames requires much larger stops, even target is very good and trend is with the entry. But trade like such are quite rare & lot of drawdown is seen on the table if you look to overtrade to compensate for your earlier losses.
Take a look at the chart below. Price has already engulf the earlier flag & now will fake out the support as it has falling short of earlier starting point of decline. PA stands for long opportunity near the level mentioned below. Well worth to take the opportunity with such a small stop & very six times reward. I'll update the blog again once entry is taken & this trade is valid for only 24 hours & let see if we can grab this opportunity tomorrow.
Pending Buy limit of Nzd/usd @0.6333
stop 0.6327
Target 0.6366
Buy Euro 1.1555
Stop 1.1450
Target first 1.1880
Target second
1.1950
Do remember to trail the position once 1.1600 is breached on daily closing basis.
Trading Forex is all about sighting opportunities & wait till we saw trend resumes and always consider whats happening on bigger time frames like weekly & Daily. Although, to make up for risk reward opportunities we should look at daily & h4 time frames and that is how we can make most of the trades by placing our stops and profit targets based on next important levels
Its almost two years since we saw any trend in usd/jpy as there were supports and resistances looking for hunting stops but now as far as opportunity is concerned, one is waiting to be taken. My entry and target for usd/jpy would be as follows.
Usd/cad approaching crucial area of 1.2600. I would like to see the reaction as this area had strong pushes up and down on weekly and looking at h4 reaction has already started & approach to area can result in strong sell-off.
Usd/canadian dollar trade is still looking for a direction and tested 1.2430 area twice and made a high of 1.2490 but I would like to remind you about the last trade of Gbp/usd where I went long around 1.3810 area & took first profit around 1.3888 where I closed half & now I am closing all the positions around 1.3970.
Take a look at the post here Gbp/usd long trade
Total profit of 170 pips with a 35 pips stop is good enough trade specially when lot happening around at the start of new year.
I have posted chart of gbp/chf for your reference and recent rally looking good as it is carrying momentun but has not really went in complete control due to weakness of usd/chf.
I will post an update soon if price start reacting at 1.3310-40 area.
Forex trading is all about opportunities but it does not stands for every oppprtunity should come our way or we need to keep looking for the opportunities day in and day out.
This is a self destructing antanomy that more we stick to the charts, more versed and more profits we make. If you ask me about how I go about forex trading as a novice, then there is no better place to get the answer but yourself. Forex trading is so addictive that we get involved in it & that is the big reason for failures.
Also Read -How to look for top down analysis from weekly to day trading timeframes.
I just look to see sessions that are strong & carry momentum for strong breakouts but fall short of their targets. Usually institutions & banks use to manipulate traders who joined later to open trades but they most likely set pending orders when Price revist such area. Take a look at the chart below showing you a prime example & justifying my words.
Daily time frame is good area to watch as I told in my previous post. I agree to some that trend is strongly down on daily & weekly but h4 is mixed to bullish & several attempts to keep the downtrend intact has diminished & area of 1.2450-60 is strong s/r flip both sides but as Friday move was powerful and price is holding higher levels. I would recommend pending buy orders.
Buy @ 1.2460
Wait for chart update little longer.
Seems to be little problem with google servers. Will post an update soon & for trade alert I would recommend trailing entry at 133.66.
