Get started

Patience

$YEN OPEN - USDJPY 40 PIPS LOWER BUT RECOVERS.. 105.5 STILL ON?In the first 2 hours of trading UJ managed to carve 30 pips lower to 106.3 but since then UJ has edged higher to 106.8 highs (atm 106.7). Whether we will hit the target at 105. im not sure, the starting data has been mixed. Whilst we ticked lower 40 pips which was a good sign, we quickly pulled back all of them and $yen is now trading 50 pips up from the lows - with the candle looking bullish e.g. there is a large gap between open and lows, and the close is virtually trading on the highs meaning UJ MAY be looking to push higher now. - Although this "premarket" analysis may be premature as liquidity is thin and the "bullish" start MAY just be noise OR some bears taking profit ASAP incase there is a big recovery higher shortly. My ideal entry buy limits are at 105.5 (see previous article), but im cautious about potentially missing a good trade if we dont actually get to the "ideal" level. The potential upside even from the less ideal price at the moment of 106.7 is at least 200-250pips. However, this UJ entry reminds me of a fundamental trading lesson - discipline! The trade was to buy once support is tested/ failed, buying after such event is much more warranted (versus buying NOW and being impatient) for several reasons: 1. if we test 105 and fail, the buyside momentum will be much more aggressive than simply buying now as bears are stopped out of their shorts, a long squeeze will occur - hitting their stops causing the market to trade bid. 2. Furthermore, there will be greater market demand in general for LONG UJ positions as more capital witnesses the level fail, thus BUYING would be the only way to look at UJ. 3. Finally, waiting for a 105 level will likely mean that the London session will be starting soon, thus the biggest spot trading FX institutions will also be adding buyside pressure . - why are these points important to wait for vs buying now? All of these elements together mean the UJ market will experience huge UPSIDE momentum, thus reducing downside risk and the potential trade length (time), whilst also maximising profits e.g. by entering at 105.8 is another 100 pips profit vs entering now. Finally by entering the trade with the game plan it means - we have stuck to what we planned, if we stick to our plans it means uncertainty = 0. Messy/ impulse entry's = unnecessary risk and >0 uncertainty. The reason i decided to post this was just a reminder for myself and everyone else to stay disciplined and trade your strategy!
by QuantumLogicTrading
4
EURUSD Update - Long Term Sentiment EURUSD Has established a very powerful resistance level around the 1.15 price point. A well placed pitchfork depicts EURUSD's steadily ascending price range for the last 6 Months. A break in this price range would serve as a signal to sell, as it hints that EURUSD is not ready to begin a long term rally and may fall to parity. Conversely, a clean break above close above of the 1.15 price level would serve as clue that EURUSD is possesses the strength to initiate a long term rally. I am not calling Long or Short for this chart because the market is constantly changing, therefore sentiment will also change. Good Luck and Happy Trading!
by IceTrading
Approaching major support on AUDCADI have been frustratingly short this pair around 2 months now and eating the negative carry. As you can see this is a weekly chart and as a swing trader over the last 2 years I've been learning the value of patience. The potential for an aggressive move to the downside here is good, although IMO this pair tends to be very choppy.. so maybe an ideal trade to learn the art of patience? :) Either way I will be playing the short side over the next couple of weeks looking for a downside target of 0.88 . Be aware that we might fake-out to the downside only to break up and retest the triangle we've just broken out of before pushing down with more conviction (check the daily chart to visualise this).
Short
by AgentSmith
AUDNZD DAILY SHORTIM ALREADY SHORT IN THIS PAIR BUT IF PRICE RETRACES AND TAKES ME OUT OF THE TRADE THEN THE NEXT LEVEL I'D LOOK TO SELL IS AT MY CLUSTER ZONE/SELL ZONE. IVE GOT LOADS OF CONFLUENCES AT THIS LEVEL WHICH ARE THE 0.5 AND 61.8 FIB, SUPPORT TURNED RESISTANCE STRUCTURE LEVEL, MAJOR TRENDLINE, DYNAMIC RESISTANCE (50 MA) AND A NICE PSYCHOLOGICAL ROUND NUMBER (1.03000). Another confluence is this trade setup is in line with the fundamentals because the RBA (reserve bank of Australia) said there is a possibly there could be another rate cut in the period ahead.
Short
by remelthomas
1
Dow Futures, Two sided trade 08:00 am: This week will be eventful. Fed is expected to remove the "patience" from its interest rate policy statement. If so, markets will expect a rate hike in Jun Fed meeting. This is likely to put pressure on the markets in the intermediate term as the expected rate hike, the first since 2006, will be perceived as a game changer. If the above unfolds, USD can strengthen further and put pressure on earnings expectation of American international companies. The markets can decline if earnings are expected to be soft. Current market support is on the uptrend line around 17500. Expecting a low volume, two sided trade, till FED announcement. For instructional purposes only.
CBOT_MINI:YM1!
by TLTrader