Here are a few of the currency pairs I’m currently monitoring.
On some of them I’m already trading/looking for a trade opportunity, while on others, I need to wait for the market to do “something” before I start looking for a trade opportunity.
But there is something in common on all of them: CLARITY.
Clarity trumps everything in forex.
What do I mean by clarity?
It’s how clear the analysis of a currency pair is. Is it clear that the market will move up? or down? Or I have absolutely no idea of what the market is going to do?
Of course, if there is no clarity, there is no point on trading that particular currency pair, you have no idea of where it is heading right?
Clarity is so important when trading the forex market, that it can help you get good results even when you don’t have a good entry system, patience, etc.
Sometimes you find the best trades in the less expected currency pairs!
How many of you actually trade the AUDJPY?
If you asked me why I’m trading this cross, I’d say: because I rather trade a currency pair with a larger spread but clearer market conditions (therefore better odds of winning the trade) than trading a currency pair with a tighter spread but not a clear market condition.
Take a look at the AUDJPY daily chart and you’ll see what I mean by clear market conditions (if you don’t see it please comment below and I’ll show you the chart).
If you had a chance to decide to get either: the best analysis or the best entry system, what would you get?
Here is my take…
I’d go for the best analysis. Because even with the best entry system, if you choose the wrong currency pair to trade, or you go short when the market is likely to continue up, the best entry system won’t do any good.
What do you think?
And that’s what I try to do every morning: do my analysis and come up with a trading plan for each one of the currency pairs that I’ll be trading.
Yesterday I opened my AUDJPY trade, I really like this one because of its risk reward ratio, I’m risking 43 pips and I’m trying to get 405 pips… good ha? Make your math, what would you get if you risk 1% of your account in this trade?
Anyway, I’d really feel more comfortable once the AUDJPY breaks the ST resistance level shown below:
And I have another one in the USDCAD. It’s been painfully slow, but moving in the intended direction, so I guess it is alright:
Normally, I don’t take trades on correlated pairs, but the entry signals appeared at different times of the day, so I guess it was alright.
Earlier on the week (Monday) I had a pending order on the AUDJPY but got cancelled because the market close below the lowest low of the pattern that triggered the signal. Then yesterday, I got another signal on the AUDJPY and it was triggered today (a few minutes ago).
I got the NZDJPY signal last night, and it was triggered a few minutes after the signal.
What is interesting about these two trades, is that on both them, I’ve already move my SL close to the breakeven level, both of them traded already above the range. We’ll see what happens.
Earlier this morning I wrote about the AUDJPY and its bullish condition, I still think it will continue its way up. I just got my signal to go long on the short term charts. Here is the chart:
Here are the details of my order (still pending)
Entry: 82.14
SL: 81.76
TP: 83.96
If the market closes below the lowest low of the pattern that triggered my order I will cancel it.
The AUDJPY is probably the currency pair that I like the most today, it’s clear that it broke through an important LT resistance level, it is also trading above every important level on the short term charts… it’s clear, today I’ll be looking for long opportunities here:
Now, if you take a trade here, notice that the next LT resistance level is at 84.26, so all take profit orders should be set below that level.
This week has been very calm, I get the feeling that it is the kind of calm just before the storm, seems like as if something was cooking for the Jackson Hole Symposium, what do you think?
Anyway, the AUDJPY is one of the currency pairs that I’m currently monitoring, it is pretty close to the resistance level:
If it breaks the upper green short term resistance level, it will trigger a bullish condition and I’ll start looking for long opportunities.
I’m being careful about the JPY crosses lately, because of a possible BOJ intervention, but in this case, if the BOJ intervenes, it will be in the direction of my “possible” trade.
