March 1 – March 6
CADCHF – We were thinking of upside due to the reversal that was put in to end the week. Needed price upside of reversal candlestick. However, you will see that price did rally and then reject and as always, with support/resistance type setups, we use the four hour chart which told a story. Price rejected at highs with momentum which then takes a long pullback off the table. Price based at .7140 lows which is bearish as the odds of support breaks increase. 177 pip drop to lows.
CADCHF – There was upside off the four hour chart but I could not find an entry.
EURAUD – Price retraced to the blue line zone. 2B type reversal to the upside mid-week led to a 225 pip run.
EURCAD – Price tested the previous resistance and watching four hour to see if we get support. Price broke highs on Mar 2 which just expanded the four hour chart range. Price based under resistance (bullish) and wash below lows and closing bullish on March 4 four hour chart is the entry. 313 potential with tight stop under wash out lows.
EURGBP – Price returned to resistance but even on the four hour chart, no entry. Price made a nice upside run.
EURNZD – Price ranged at our reference zone
GBPUSD – At lows, price bounced and lead to higher lows into resistance. Small range on four hour chart on March 4 sets up a buy stop entry for a 175 upside move
USDCAD – Sell did continue as noted but no entry to get the momentum move down
USDCHF – At lows and expected reaction. You just never know which way. You will see price pause at lows but no entry until March 4. Four hour chart – We get a wash of lows which gets people short but immediate rejection of lows. Price then rejects upside and forms small base at support. Sell stop set in small range before breakout of lows which will often have you in the money before others wait for breakout. You can often get momentum to drive your trade. In this case, 237 pips.
Virus fears are rocking the market and Forex was no exception. 823 pips and there were some pairs that ran but no entry was present. That happens. That is when you stick to your plan. It is too easy to simply hit the order button but that will always be the wrong play.
You may win that trade. But you are setting yourself up for more rule breaking in the future. That, will end your career
Feb 23 – Feb 28 2020
How did these do?
CADJPY – 370 pip drop from resistance holding. We were looking short at resistance on the four hour chart or daily chart basing. Price dropped from highs with a simple entry off lows of high candle from previous week
CHFJPY – Price tumbled and we were looking for a pullback. Price formed a complex correction on the four hour chart but a breakout of lows. Breakout pullback coming into Friday for an entry short 114 pips. There was much more in the fall from highs but no entry at those levels short.
EURCAD – Price kept moving upside
EURNZD – Price kept moving upside
GBPNZD – Price ranged
NZDCHF – Support failed. Breakout pullback for 184
USDCAD – 155 pips upside of the range break. Said to watch off four hour chart. Price broke upside of range, held support.
USDCHF – A great lesson in why momentum in a pullback should have you concerned about taking trades in the former direction
A good week on the back of JPY crosses with 538 pips in play with simple setups – something we have preached for years.
I know some of you can’t grasp price action and the simple patterns we use and that’s ok. I invite you to watch this webinar of High Velocity Wave Trader and see if that is something that is of interest.