Posts from: October 2010

Market Update and Swing Chart Indicator

USDJPY UPDATE

The USDJPY has a new low!

… or has it really?

(Note: Click on the chart to view full image)

I have two different data providers, one a charting software package and the other chart via data through my broker, each show different information. So at this weeks close I actually have conflicting charts.  The fall on the USDJPY on my charting software the price broke just through the previous low (chart above), where on my brokers charts it did not. 

The difference in the data is only by a few pips, but this means two significantly different things.

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Taking Profit – exiting trades is not always so easy

A few exciting things in the market – EURUSD is making a head and shoulder pattern – Im getting ready to short this market should further signals confirm a break down out of this pattern.

Also check out the action on the Dollar-Yen, we are waiting for a cycle low which hopefully happens with a reversal bar at the bottom. 2 days ago we had the market fall down below the previous low creating a new low, and by the end of that day the bulls seemed like they were coming back to the market and the final close was midway up on the bar. During that day I was hoping it may close out as a reversal bar. Almost but not quite strong enough.

The following 2 days the USDJPY rallied upward even taking out the previous high, but yesterdays bar closed a little weaker, so this may suggest today we see a temporary fall creating a ‘down bar’ which will be the signal bar for a Long entry order as discussed in the earlier blog.

Whilst we wait for an entry to the JPY or start analysis on other markets we need to know what are we going to do once we get into a trade – when do we get out?

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Psychotic Trading – getting a grip

If you have been trading for a while with a good number of historical trades under your belt you’ll no doubt understand the how manic your emotions can be when trading.

One minute you feel cloud high, then the next minute an overwhelming sickening feeling of nausea sets in, and you think you are about to lose your mind.

Now trading should not cause you sleepless nights or dictate your mood for the day – if this is the case you are becoming too emotionally involved, are at a risk level too high for your personal tolerance level, and/or do not yet competently know or understand your trading system.

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Forecasting Trends: Entry Signals continued…

Back again…  

Another week of trading, careful reading of the bars to find clues of what may lie ahead.  

Continuing from Friday’s blog on the Entry Rules, we have an addition to the criteria to when we enter…  

Pull Back Rule – Do not exceed Time and Price  

It is important to be able to read the bars as they appear and apply this rule;  

  • Do not exceed both time or price in the pull back of the rally.

What exactly does this mean?  

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