March 22 – March 27 2020
Recap
AUDJPY – We were in shorting mode and price continued the rally with no entry
EURUSD – As noted on the setup chart, there was no way were were shorting from this momentum move. As suggested, four hour chart was in play. Long off trend line break as entry for 317 pips. Missed earlier entry at double bottom.
GBPUSD – Price came to our red line and based on four hour chart. Failure test was entry to ride breakout of four hour chart high of range. 630 pips worth of price move
USDCAD – Price ranged above and below our line in the sand (red line). Could not find entry for move lower on the four hour chart.
USDJPY – Price put in higher lows into resistance which generally points to further upside. As noted on setup chart, we were interested in shorts if higher prices were rejected. We got mulitple tests of upside and price could not make a higher move. Trend line break short for 288 pips was the only entry available.
A crazy time in the Forex market with our daily setups, as usual, be played on the four hour charts. 2175 pips were up for grabs off of our free FX setups.
The focus is on the USD right now and not really the cross currencies. Pairs are clearly extended and in a normal world, we’d expect a snap back in price. We may see profit taking which will give us entries. I’d be happy with trading ranges and failure breaks of lows and highs.
For the most part, you want to watch the four hour charts. This is where you will be able to see, as an example, profit taking in the morning and a resumption of the opposite move in the afternoon. You can infer that from daily charts but for some of you, the preference may be a shorter time frame.
If using a shorter time frame, I would consider still using the daily chart for risk and position sizing.
Can you take counter move trades? Sure. Ensure that you have a plan for doing so. I talk about failure tests a lot and that is where you can find an entry.
Make sure you check out my recent blog post: What Is Your Trading Plan?
