Hey Traders, hope everything is going well so far in 2014!
I’m really interested in knowing what you think about how the markets have been moving so far in January?
Because let me tell you something, I’ve been watching all pairs, and some of them have been very difficult to trade, and with this I mean:
- No clear support and resistance levels
- No clear swings
- Very volatile during news announcements
But not all of them, just the majors, the most traded currency pairs.
But that hasn’t been the case for other crosses, like the GBPCAD or the GBPAUD and others.
So here is my question: do you ever venture to trade those crosses? Even when the spread is larger than with the majors?
When I started to trade, I remember I looked for the currency pair with the tightest spread and just trade that one (it was the EURUSD of course).
I didnt worry about its market condition, about its S&R levels, nor about the clarity of its swings, I just traded it. And oh boy, what a mistake that was…
Sometimes I found myself trading it when it was all over the place, and I still thought it was a good idea to trade it.
For that reason, I now do a fast analysis at the beginning of my trading day, and try to determine which currency pairs have the clearest market condition, and I focus on those (regardless of their spread) as long as they are major crosses.
I encourage you to do the same thing, don’t focus too much about the spread, its far better to trade a currency pair the a clear condition and a larger spread, than a currency pair with no clear condition and a tight spread.
Does it make sense to you?
Ok, now to my analysis…
GBPCAD Trade Update
Thank you for all your emails about the GBPCAD signal I sent you last week, I’m glad that some of you took advantage of that signal.
Anyway, ‘ve been getting a questions about how I’m going to handle that trade, if I already took profits, etc.
And here is the deal…
I’m still holding it.
I know some of you don’t like to hold your trades over the weekend, or trade the whole swings, etc. But last weekend it was more than 300 pips on my favor, so I decided to move my SL to BE and hold it.
Now that it has made a clear swing, I’ve moved my SL a few pips below the previous low.
You see, I’m in this trade for the long haul, it has a very good profit potential, I mean, the next LT resistance level is at 1.9000, so we’ve got plenty of room to go, and I think the risk is very well worth it.
Now, it doesn’t mean that I’m going to set my SL at that level and forget about it… I’m going to manage my trade. For instance, if the GBPCAD breaks the ST resistance level at 1.8550 and confirms that level, I’m going to move my SL just below it.
This way I’ll be trailing my SL based on the market action.
Trade Opportunity on the GBPAUD
There might be another opportunity in the GBPAUD. Look at this chart:
The GBPAUD is trading in a very clear bullish condition, and I think it is likely to continue its way up until it reaches the next LT resistance level around 1.9850.
It is currently trading at 1.8870, so thats close to a 1000 pips before we hit that level!
So what do we need to do now?
Wait… patiently wait.
Yep, we need to wait for clarity in the short term charts. But once we get clearer swings/levels, I’ll be ready to trade it.
And for sure I’ll let you know.
About my present to you
This week I’ll be traveling, and its going to be very difficult for me to do my video analysis!
But dont worry, you’ll get it next week.
Sounds good to you?
Do you focus on the majors or you also trade its crosses?
Dod you take the GBPCAD signal last week? Are you still holding it?
What about the GBPAUD, are you keen about trading it?
Let me know in the comment section.
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 .