Here is how I see the market today

riviera

You might ask where does that picture come from?

Well, I spent the weekend over the Riviera Maya for the inauguration of the Hard Rock Riviera Hotel and had a terrific time, it included a Bon Jovi concert so you could imagine what a time I had…

So now I’m relaxed and ready to look for those trade opportunities :)

Did you do something different over the weekend? Please comment…

Ok, back to the markets now…

Looking for low risk trade opportunities

One of our main goals as traders is to find not only good trade opportunities, but those that have the lowest risk.

And how do you know there is a low risk opportunity?

If you go straight to the short term charts to look for trade opportunities you’ll be in great risk. Why? Because most of the time the market moves in the direction of the long term charts.

So you first need to see what the long term charts are doing and then look for your trades on the short term charts.

Ok, and what do you look for on the long term charts?

You look for clear swings and support & resistance levels.

That’s it!

For instance, right now one of the clearest charts is the AUDNZD

AUDNZD

So in this chart I’d definitely feel comfortable looking for short opportunities. It was clearly rejected from the resistance level and it is likely to continue its way down…

Once I have a clear condition on the long term charts my job is to look for my entries on the short term charts and that’s it!

Other possibilities:

The AUDCAD, NZDUSD and GBPUSD are both in a bullish condition.

EURNZD is trading in a bearish condition.

And please FORGET about trading any of the JPY crosses, because most of them don’t have a clear market condition. Have you noticed that too? All of them are trading in a not well defined consolidation period…

Please share your thoughts/feedback

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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 .

  • Chad Hogan

    Hi mate,

    Your weekend sounded awesome, mine wasnt quite as exciting but relaxing nevertheless. ok trading.. I agree with your selection on currency pairs, Im about 100 pips in profit on GBPUSD but missed the entry on AUDNZD and EURNZD. I think we could add AUDUSD to the list too. Im looking for a pullback right now. Please everyone check out USDCHN. New currency pairs almost always trend right off the bat. Plenty of opportunity.

    Cheers

    • Raul Lopez

      Hey Chad, I agree with you, we could add the AUDUSD to the list… and congrats for your trade in the GBPUSD, when are you planning to TP?

      I will definitely check USDCHN… (different from USDCHY right???)

      Thanks Chad!

  • Vicky

    Hi Raúl, I agree with you the jpy crosses are very difficult to trade today…. Rivera Maya qué chuladaaaa

    • Raul Lopez

      I know, I’ll just wait until we get clearer swings…

      Have you been there?

      • Vicky

        No, I have never been to México but I would like to….hopefully soon

  • Waqas Khan

    jpy pairs sucks

    • Raul Lopez

      Not that they suck, they are just not clear at the moment, I guess we need to wait a little longer before we start trading them again…

  • APOSTOLIS

    until a new will come up and blow everything…lol, nevertheless it makes sense…

    • Raul Lopez

      Hey Apostolis,

      Until a new????? What do you mean?

      Cheers,

      • APOSTOLIS

        well I mean a news issue regardin AUD as it seems happened at this setup all well and the price action turned upside again. before trade AUDNZD I think is important to chack first AUDUSD for potential S&R since this is the one that will move AUDNZD…..:)

        • Raul Lopez

          Ahhh ok, I see what you mean… thanks