When to start looking for trade opportunities (with example)

After two weeks of intensive important fundamental announcements (which by the way, put the market in a very favorable condition, so you better get ready to trade ok?), we have a few weeks with not many (important) announcements. Is it good or bad for traders?

I guess it all depends… What’s your take? Leave your comment below.

Anyway…

The question I’m trying to answer with this post is: When to start looking for your trades.

This is what I do…

I look for the currency pairs with the most profit potential.

Let me explain… when the market gets close to an important level, we don’t know whether the market is going to get rejected from there, break though that level or just stall.

So, since you are just trading the currency pairs that have the most profit potential, in order to trade, you need to know what is likely to happen, right?

So what do we do? We wait… Take a look at the next EURAUD chart:

When to start looking for trades

The EURAUD traded near an important long term level and it stalled around it. This is good because now, with this little range, we know exactly when to start looking for trade opportunities.

There will be no more guessing, if the market breaks the top of the range (upper green level) I start looking for long opportunities.

If the market breaks the bottom of the range (lower green level) I start looking for short opportunities.

In this case, the EURAUD broke the top of the range, therefore I’m looking for long opportunities.

In fact, the EURAUD is one of the currency pairs that I like the most this week.

What do you think?

Cheers,

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Dan

    Afternoon from Australia Raul,
    Many many thanks for your prompt and excellent response to the beginners query. Now have the pivot point / high and low previous session indicator tool installed on my meta trader 4 platform and have just finished placing 7 cross currency trades on to my dummie account. Very helpful in pointing me in the right direction. How does one reimberse you for your time and effort.?

    • Raul Lopez

      Hey Dan,

      Dont worry about that Dan! If you know someone who would benefit from my analysis/trades/aeticles just let them know ok? Dont hesitate to comment should you have more questions alright?

      Cheers,

  • Dan

    I am an absolute beginner at trading. (but getting there. Actually placing trades on a dummy account and having a win so far) It is imperative that I have a good grasp of all the basics as they come up otherwise I will get lost.
    Could someone tell me what the abbreviations HOPS1, HOPS0, LOPS1. I am using meta trader 4 so presumeably I could place these as horizontal lines and name them. Or are they done automaticly from some other add on programme. What is the relationship of LOPS1 to the candles. Also how are the positions/levels of HOIPS0 and the pivot point derived. In hindsight with 5 candles showing long above the pivot point one can see the trtend and place a long trade. However if there were not 5 long candles the question is when would you place the trade.

  • Dan

    I am an absolute beginner at trading.

    • Raul Lopez

      Great! Thanks for following this post… let me know if you need any help! Cheers