Signals/Setups Published for: Dec 27 – Jan 1 2021
4 Forex Setups / 0 Crypto
If you are looking for Free Forex trading signals and setups every week, this is the page to bookmark.
You can find the setups below and they are posted every week, by Sunday evening.
I don’t publish daily Forex signals because my experience (and many others) is that swing trading Forex offers the most bang for your buck.
Many have said these are the best Forex signals because there is a learning component to the posted setups and the recap.
I use what has proven to work in Forex trading: mean reversion and momentum-based setups. There is an actual edge in using these two methods that can be quantified.
There is an edge in mean reversion and momentum trades and that is where I will continue to focus. As you’ve seen, you can short alt currencies and Bitcoin in the right context but most traders would be better to continue with the trend.
These are daily price charts
Some things to help you understand the charts:
- Consolidations are considered to be pullbacks and ranges on the posted charts.
- Ranges and pullbacks are treated differently in terms of trading them
- The trend line can be used for entry on the break but I do not follow them for support or resistance
- Horizontal support and resistance are pivots areas
- Momentum thrust is a sharp move in price
- Basing is when the price is ranging sideways – usually used to explain price action after a momentum move
- Basing at highs or lows of the momentum move are continuation patterns
- Failure tests are thrusts up or down through a level and immediate reclaim of previous price zone
- I prefer to see pullbacks with low momentum in the corrective phase
As always, all of these free Forex and cryptocurrency setups are based on price action, price structure and may result in trading opportunities.
These setups use technical analysis to determine if a chart is set up for a potential trade.
As the Forex charts are set up when the market is closed on the weekend, the price may evolve differently than anticipated.
It is impossible to give entry and exit prices because these are not updated on a daily basis. As price evolves, so does the entry.
The beauty of price action Forex trading/cryptocurrency trading like this is you are not waiting for a lagging technical indicator to flash an entry signal. You can see, in advance, the setup that we are looking to take advantage of.
- We are reactive to price action in these areas
- We do not attempt to forecast although an idea can be helpful
- Don’t get blinded by your opinion
- Price rules your opinion
While some of you may choose to scalp or day trade the foreign exchange market with these free setups, please note they are designed for a swing trading approach. Lower time frames may also present opportunities using these charts for context.
Please be fully aware of your overall “risk appetite” when it comes to your trading account and your Forex broker margin rules.
Note that all recaps are best-case scenarios in terms of totals. Every trader will have different entry and exit points and the recaps show potential and not necessarily totals obtained by the author. The author does trade the posted setups and others dependent on evolving price action.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. This site bears no responsibility for trading results based on trading recommendations described in these analytical reviews. You must understand Bitcoin and cryptocurrency trading in general before trading that market.
You can also visit: How To Trade The Free Currency Trading Signals
Dec 27 – Jan 1 2021
How did these do?
AUDCHF – We didn’t get as deep a pullback as we’d like but the pullback was obvious. Drop to our four hour chart for a trigger and the break of the down trendline is the trigger long for potential 83 pips to the upside.
EURCAD – Strong pullback into our zone but no trigger. This pullback is too strong to consider a buy against right after it happens although it did complete a complex correction.
EURNZD – Looking to short on further downside and we got a pullback to ride against. Four hour chart gives a reversal candle and sell stop the lows for a 233 pip downside move.
USDCHF – Price just pulled back and even though there was a big push upside, there was no four hour trigger.
With a short trading week, we have seen in the past great price moves and this week was exactly that. Bitcoin ran up for over $3000.00. Forex pips were potentially 1030! We haven’t seen those moves in a while.
There is no secret to what we have been doing on this site for years. Identify potential points where price may reverse. Use a trigger for entry. We don’t get a lot of adverse excursion when trading in this manner.
This is the last update for 2020! Hope you have found my setups and explanations helpful.
Dec 20 – Dec 25 2020
How did this week do?
AUDCHF – Price spiked into our setup zone. Four hour chart rejection after exhaustion move led to a 100 pip upside move.
AUDJPY – Price was in a range and looking for a trigger. Price pushed below support with exhaustion. Four hour chart gives perfect reversal candle for 85 upside.
AUDNZD – Price continued to reject higher prices
Bitcoin – Four hour chart as mentioned. Price spiked down below support in a failure test setup and trigger. Price ran $3706 upside off break of reversal candle.
ETHUSD – We were looking for a pop and price just melted down
EURCAD – We got the failure at highs and outside candle break of lows was trigger for 101 downside pips.
EURNZD – Got the double top setup and the four hour short was break of lows of inside candle. Price dropped 80 pips before a retrace. Price retraced giving us another top but the entry was not clear until break of 1.7255 for a 150 pips second trade.
GBPCAD – Price held but no clear entry on the four hour until basing under resistance due to outside candle. Position inside of base at break of inside candle 1.7267. Price ran 210 pips to the upside.
GBPNZD – We projected a bounce to highs of December and came within 30 pips of full target. Four hour chart bounce with reversal candlestick led to a 283 pip run in price.
GBPUSD – Price spiked right into our zone and bounced. Missed entry. Momentum upside plus lazy retrace gives us another entry at break of inside candlestick 1.3378. Price runs 240 pips to upside.
NZDUSD – Range play was in the cards as price broke support and bought back up. Obvious reversal on four hour for 68 pip run.
A week that saw a run upside on Bitcoin and 234 pips in Forex. FX was tougher as momentum stepped in on pullbacks which negates the trade. Bitcoin was the perfect example of how we play breakouts. We look for ranging under support and look for an entry trigger. There are times where you just have to “get the trade on” when the range is in play for the trigger into the breakout.
Nothing fancy this week…just the usual plans we’ve been trading here for years.