Trade opportunity?
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If the market breaks through the support & resistance from the whats in the blue rectangle and goes past the highest high of the uptrend it is currently in then i would look to buy anywhere just above the yellow line to take profit at the purple line.
The fib levels are matching up with the support and resistance showing with the arrow, and since the market will probably start fighting again around that area, I wouldnt want to try and take any more profit than the purple line?
Would like to hear everybodys thoughts on that, thanks in advance.
Lewis 🙂
Hi Lewis, that’s lovely logical analysis 🙂 The market is up there now, are you keeping an eye on it? 😉
Yes, am absolute delighted haha, had to use the 5min chart to enter, as 15 min signal wasnt to great
Another trade opportunity? Its actually very similar to the GBPUSD in terms of reasons to enter the trade.
Would plan on entering the trade (anywhere above the yellow line) if the market breaks above the support and resistance in the blue rectangle and breaks past the highest high of the current uptrend. Would aim to take profit around the purple line, but thats a pretty far stretch so maybe take profit here and there to that purple line or the fib 161.8 level. That would depend on how much the market moves upwards though.
Also wouldnt want to aim any higher than the purple line because the support and resistance in the peach rectangle
Thanks in advance,
Lewis 🙂
Sorry, got another question (I’ve been glued to the markets today). Where would you expect the trailing stop to be at this point? From the hour chart? should it be just below the sell entry to break even?? I know its a matter of preference, but im not really sure how i would play a scenario like this
Hi Lewis, more good thinking on your EURUSD idea 🙂 On USDJPY I’ve drawn a box around the cluster of activity you could tuck your stop above. You’d expect to see a bit of resistance there and it gives you a small profit situation (this market would have moved there early this morning).
Hi Lewis,
Thanks for sharing your charts with us. Do you mind if I ask a couple of questions?
Are you looking to take profits weeks ahead of your analysis, maybe longer?
On your EUR/USD chart, how did you choose the S & R at the peach rectangle? And are you still using other indicators, ie MOR and DOR, and engulfing candles, before you ‘pull the trigger?’
I know you must be busy with the charts, but your help is appreciated!
Regards,
Dave.
Hi Dave,
I’m not looking to take profits weeks ahead as such, but I’d like to think that in a weeks (even a months) time the market will have moved in that direction. If it doesnt move in that direction, then it doesnt move in that direction. All that I’m am doing at that stage is giving myself reasons to enter a trade and targets to aim for.
On the day when I pull the trigger on a trade, I will aim to only make sure that my risk to reward ratio is in my favour. As Rich said to us in one tutorial was that we only need 4 trades out 10 at a 2:1 ratio to come in to turn profit. Days when the market has shown movement then i will let it run up to another indicator (but that still makes me nervous).
I am ALWAYS using MOR and DOR. The ONLY time i will not use MOR is if the DOR opens above a support/resistance that will let the market come down to retest its structure regardless of the MOR. but ignore that for now. Only focus on what rich says.
The peach rectangle is an area where the market went into slight consolidation (where it didnt have any obvious direction) so there was a lot of buying and selling in that area, That means that people will more than likely be using that target in the future.
I will only enter a trade if the 15min engluf candle signals and sometimes the 5 mins moving average signals. BUT i will ALWAYS trade ONLY when these signals have shown.
In regards to the EUR/USD, there is a peach oval inbetween the peach rectangle and blue rectangle, that will probably be my first target to aim for. But i will only enter that trade when the market moves above the gold line, and DOR and MOR is in my favour
Thanks Lewis, very informative. I thought you must be using the rules of the academy. I do not, as yet, read the charts intuitively as you do and see areas of consolidation, with lots of buying and selling in the area, but I now see what you mean. So its practice practice practice for me!
Thanks again,
Dave.
Me personally, i think support and resistance is the bread and butter of trading. If you think you are having trouble with that area of trading, then just remember, google is your friend. there are lots of articles and web pages about it. I would even go as far as to say Wikipedia covers the basis of it pretty well. theres a link there; https://en.wikipedia.org/wiki/Support_and_resistance
Glad i could help 🙂
Lewis
Hi team,
I havnt posted a battle plan in a while, so thought i would show you one for tonight that i plan on trading tomorrow. Got 2 markets I am looking at, and the first is USDJPY, I took a long position in this this morning and got lucky with the news popping me up to guarantee profits (completely forgot about it and its becoming something i must practise on).
However, I’m looking to add to this because the market has broke through what i would regard as a major counter trend line and if you look at the way USDJPY moves, the market tends to coil up and then go bullish again time and time again. It has taking a flag continuation pattern which you can read here. http://www.investopedia.com/university/charts/charts6.asp
From the battle plan, I have marked with black lines everytime the market has done this. The red line marks where i hope to take profit at.
I am also looking to go short on the AUDUSD. Its a very simple trade, the market is bearish and shows Fibonacci levels retracing to 38.2 from the impluse, and look to take profits 161.8 level.
Hi Lewis,
How did you get on with your plans? I guess the DOR filter kept you out of AUDUSD yesterday. Small profits on USDJPY?
Hi,
Yeh, it went great, entered USDJPY using the 15min engulfing signal, but i didnt enter using 1 pip above, instead i had my entry order a couple of pips above the structure that was needing broken to ‘prove’ it was going to move in that direction. Then when the market moved I took my initial trade from the day before and moved that up to the point where it made enough profit to cover the trade i took on the day, then I knew news was coming out at 3pm so exited my trade on the engulfing candle that reversed the market.
Yip, didnt enter AUDUSD it moved in wrong direction from DOR. Entered it this morning though because I think it was only doing a small fib retracement yesterday.
Cheers,
Lewis
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