5 Free Forex Setups: Sun Aug 6 2018 – Fri Aug 10 2018
2 Cryptocurrency Setups
The setups below gave potential of over 400 pips for the week. Here is how they played out.
CADAUD – The sudden drop in price was a concern and the consolidation on the four hour began around previous resistance turned to support. Missed the move down – failure test trade wasn’t there – but price did bounce up 128 pips.
CADCHF – Got the pullback we wanted but no continuation for an entry
EURAUD – Price ranged after the breakout
EURCAD – Price did rally to the upside (four hour chart failure test) on a one day move for 138 pips and stopped right at our red zone where shorts were suggested. Price broke downside for 166 pips
GBPCAD – Price did not play out as described
BTCUSD – I wrote to hold the zone for upside which some of you understood to mean that failure to hold is a trading opportunity. Price broke lows of red zone during the weekend and based at the end of a momentum move which we read as a potential continuation. After consolidation, a break of the range had $866 to the downside.
ETHUSD – Looking back at previous times price was at support, it was soundly rejected. This time, price based with low range candlesticks right on support. That is read as bearish. Price broke lows for $69
561 pips potential is nothing to ignore when trading daily charts when considering time spent trading. Forex charts are not in the best of conditions at the moment with some back and forth price action.
One currency that a regular blog reader has been watching made it into a trading post due to the tough state it is in: Trading Consolidations Can Be A Tough Job. Make sure you read it.
This week we have several pairs in potential mean reversion mode so make sure you are watching the four hour chart for any sign of the reversal. It will be against the overall trend so watch your risk.