Dec 6 – Dec 11 2020
AUDUSD – We were looking for a reaction from the zone for a buy as noted. Failed test of lows of range bought up. Four hour chart gives a pullback entry for the breakout to 130 pips to highs. Price began to fail right at our target zone!
AUDNZD – Admittedly missed this move. The long was setup after shorts discounted due to momentum leg up (remember when looking at a pullback for a reversal, we don’t want to see much momentum).
Bitcoin – Price did break out of the range…to the downside
CADJPY – Price poked right into our trading zone and setup a reversal obvious on four hour chart. 46 pips to the downside
EURGBP – There were two setups that worked off this setup. The first trade would be an aggressive trade for a breakout of our line. Why? Very little basing for the move up which is why it was discounted. Traders taking this would have made a profit before price retraced. The second setup is a complex pullback that terminated at the prior swing low. Entry could have been off the pivot low but ours was a break of a two bar range for 195 upside.
EURJPY – Price continued to range
EURNZD – Price did head lower but there was no entry short
EURUSD – Price was basing at low of range and entry for a short was on the 9th. Not much downside, 61 pips max to lows. Price pulled up back into the range.
NZDCHF – Price came right into our trading zone and dropped to four hour chart. Note weak momentum into lows as that is what we like for pullbacks. Entry off of buy stop above last move into lows (.6261) and 50 upside pips.
NZDJPY – Wanted to be a buyer lower and price never got there.
A good week of almost 600 pips and crypto making some moves. I am sure some of you are just looking for entries and looking to ride. If so, just make sure it is not rent money! Crypto is so volatile so make sure you know what type of trader you are.
The currencies did pretty well. Nothing special in the approach…the same for years. The four hour charts are great for entries which can get you closer to your stops for slightly larger position size. Just remember stops are set in relation to the daily chart, not the entry chart.