Look traders, the moment you think you have finally figured out how the market works, it changes its behavior…
And that’s the reason we always need to be adapting to the market conditions.
Always.
In fact, I believe that it is the single most important aspect of trading, not only forex, but all other markets.
Hey trader, how is your trading going so far this week?
I’ve seen the market started to move in a few currency pairs, in some others the market has been pretty slow.
So I guess it’s all about choosing the right currency pairs to trade.
That’s the reason I encourage you to look and analyze a wide variety of currency pairs, or instruments. If for some reason you dont feel comfortable with any pair, you can always trade gold for instance, or oil, or indices or high volume stocks, etc.
But please, make sure you only trade the ones that have a clear market condition… the ones that you feel comfortable with, the ones that have clear S&R levels and clear swings.
If you focus on those, sooner or later, results will come. You just need to be patient and trade when the odds are in your favor.
That’s it, that’s what trading is all about: choosing the right instruments to trade, and trade them at the right time.
What do you say?
Ok, lets get to some charts…
The EURUSD has been trading in a very clear bearish condition, that means that it is likely to continue its way down…
A few weeks back I wrote about the NZDJPY, back then the NZDJPY was rejected from the LT resistance level at 89.57…
It was trading in a very clear bearish condition and because of that, only short opportunities were in play.
Then it hit the next LT support level 86.25 and it traded for a few days around that level… And apparently the NZDJPY has been already rejected from that level…
Here is how the dialy chart looks like:
There are a couple things that I like about this chart:
One of the most common mistakes traders tend to make is to focus just on one or two currency pairs.
Let me tell you what happens when you decide to do that…
You see, sometimes it’s very difficult to determine what the market is likely to do… And not because we are not good traders/analysts but because sometimes the market behaves in unexpected ways…
That’s it!
There are days that it’s just impossible to trade!
If you focus in just one or two currency pairs, you are going to force yourself to take trades when the odds aren’t on your favor…
What do you think will happen if you constantly trade against the odds?
It’s interesting that from the currency pairs & crosses that I’m monitoring right now, the yen crosses are the ones with the most interesting market condition, including:
EURJPY, GBPJPY, NZDJPY, AUDJPY
These crosses are trading in a very clear bearish market condition, but that’s not all, the next LT support level is a few hundred pips away on all of them.
But one pair I don’t like right now is the USDJPY, not clear market condition, no consistent support & resistance lvls…
Weird isn’t it?
Be careful tomorrow with the NFP announcement
Trade Safe!
Raul Lopez
AUDJPY, dollar-yen, EURJPY, euro-yen, GBPJPY, nzdjpy, yen crosses
The NZDJPY is in a clear bearish market condition, earlier this morning it broke through an important long term support level:
My Trading Plan:
As long as the NZDJPY keeps trading below 66.59 I will be looking for short trade opportunities.
All long opportunities will be ignored.
Trade Safe!
Raul Lopez
The NZDJPY is trading near the long term resistance level of 63.89, in the short term charts that level accounts for the range 63.84 – 64.79:
I would like to see the NZDJPY trading above 64.79 to start looking for long trade opportunities.
Here is my plan:
If the NZDJPY breaks the short term resistance level I will start to look for long trade opportunities. All my TP orders will be set just below the next long term resistance level around 66.25
If the NZDJPY breaks the short term support level I will start to look for short trade opportunities. All my TP orders will be set just above the next LT support level around 62.64.
If the market keeps trading in between the short term range I will do nothing.
Trade Safe!
Raul Lopez