Here is how I see the market today
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.
For instance, right now one of the clearest charts is the 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!
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