When you have a trading plan, trading becomes much easier. You don’t have to guess where the market is going, you just follow your plan.
If you asked me what the most important thing about trading is, the one thing that could be the difference between a successful trading and a trader who is still struggling to get consistent results, without a doubt, it’s having a trading plan.
Let me show you this chart:
CHFJPY Analysis, forex, trading plan
If you like to trade ranges you are going to like this.
You know, sometimes we spent too much time trying to find the trend of the market, but most of the time, in fact, around 75% of the time the market is trading in a range.
So we need to trade them… Here is a good one in the CHFJPY:
CHFJPY Analysis, forex ranges, range trading
By trading the news I don’t mean trying to guess what the first reaction of the market to the news announcement will be, because there is just no way of knowing this (and you know it). If you wanted to know this you would need to get inside every single trader head… it’s just impossible.
But if you wait a few minutes, see how the market reacts first, you might be able to take advantage of the second movement by following this advice.
And the best thing about this methodology, is that you don’t even need to know what the actual figure is, just do your homework (analysis), wait patiently, see how the market reacts, then make your move…
CHFJPY Analysis, forex, Trade the news
Both, the BOJ and the SNB have expressed their concern on the on-sided movements of their currencies (JPY and CHF respectively). Both of them are strong and these are the main reason why I think both of them are appreciating:
CHF: the CHF is being used as a reserve currency (debt crisis on some European countries, growth conditions, and others).
JPY: I have no clue, I don’t see a fundamental reason, but hey, the market is the market and if it’s appreciating it’s because the demand is increasing (from China perhaps?)
But which one do you think is stronger?
Answer: LOOK AT YOUR CHARTS… I’m kidding :)
Take a look at this chart:
Over time, looks like the CHF is stronger than the JPY, there is just small retracement after the SNB expressed their concern.
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BOJ, CHFJPY Analysis, intervention, SNB