Unless you’ve been hiding in a cave, you havent seen how the JPY crosses have been moving in the last few weeks.
Yesterday a fellow trader asked me what my thoughts were about those moves, and if I thought there was still a chance to go long, you know, the market might retrace, etc.
That reminded me something I read somewhere (cant remember where):
The market is never too high to stop looking for a buy, or too low to stop looking for a short.
Ever since I read it, it made total sense to me, and I adopted it almost as my motto…
So don’t be afraid to get caught in a retracement, because you are going to miss the whole move. I rather get caught in a retracement than watching those kinds of moves on the sidelines…
What are your thoughts about this?
Hey, how is your trading going so far this week?
Have you seen what’s going on in the NZDUSD?
Since the middle of September the NZDUSD trade in a medium term range (not that well defined), and to be honest with you, I haven’t placed a trade in this currency pair since then…
Here is how the range looks like:
But now that the it is out of that range, looks like it might
And I have to say, I agree with it.
I’ve seen it over and over again in the charts. The best way to see what the market is likely to do, is by understanding how it has behaved in the past around similar levels.
Now, let me show you one chart:
On Wednesday I wrote about the NZDUSD trading plan and how The SF Box played an important role in defining the trading plan.
The original trading plan was easy to implement:
- If it breaks the top of The SF Box I’ll look for long
- If it breaks the bottom of The SF Box I’ll look for shorts
- If it continues to trade inside The SF Box, I’ll trade range
This is how the chart looks today:
In the last weeks I’ve been talking about The SF Box, and how you can use it to have a concrete trading plan.
Today we have the perfect example in the NZDUSD.
As you already know, most of the time when the market gets close to an important level in the long term charts it trades in a zone, which is what I call The SF Box. Here how it looks like on the long term charts:
Hey, hope you had a great and peaceful weekend, because this week you are going to have to think clear about market movements.
This week it’s full of fundamental announcements, we could see some major movements, especially on the second half of the week.
These are a few of the most important fundamental announcements:
AUD interest rate & statement
CAD interest rate & statement
AUD employment rate
GBP interest rate & statement
EUR interest rate & statement
USD Non-farm payrolls
CAD employment rate
Hope you had a great weekend! (As I did :)
I’m curious about what currency pairs are you monitoring right now? Because I see plenty of opportunities (at least at the beginning of the week).
One of them is the NZDUSD, it’s been in a bullish condition for a while now, in the last two weeks it’s been ranging, and right now it is right at the bottom of the range:
These are the details of my order:
Last week I wrote about the NZDUSD, I thought it was in a very clear bullish condition and mentioned that it would be a good idea to look for long opportunities.
And it did go up. Did you take your trade?
Last week I wrote about the NZDUSD, but I only showed you the short term charts. Here is what I think about the NZDUSD long tern charts.
I use the long term charts do determine:
- Which currency pairs to trade?
- In what direction?
- When will I stop looking for trade opportunities?
Here is the daily chart:
In the last few weeks I looked for short opportunities on the NZDUSD, and it actually reached the main LT support level.
But now, it looks like the market has been rejected from the main support level, triggering a bullish market condition:
Notice how the NZDUSD traded for a while in a short term range, and once it breaks the short term range, I consider it trading in a bullish condition.
What do you think? Are you going to long it?