When the weekly Forex setups are posted, we never know if:
- They will be winners or losers
- The setup will be void because price doesn’t trigger
- The setups doe not complete
Understanding that markets do not always dance to your tune, you may want to keep a watch list.
This watch list will contain setups that have not triggered but still have the potential to play out.
If a setup is posted this week and price has not definitively voided the setup, don’t just discard it. The currency pair may just need some more time.
EURNZD – Took Some Time
This pair was posted on May 25 2019 and during the week, price entered a trading range. We can say the setup failed because we were looking pullback and got a range.
The difference is that a trading range is not a catastrophic failure like strong momentum would be.
If you simply play these setups week to week, you have missed many setups that triggered the following week or the week after.
Below is the same chart a few weeks later.
In the case of this pair, you can see the range that formed, price broke below our noted level and was rejected.
The currency pair rallied for over 200 pips from a setup and trade entry that we talk about week after week.
What you should notice that it looks like price put in a complex correction which given the run up in price, makes sense.
If you were to connect the highs of the retrace and form a channel on the underside, you would notice the bottom of the trend line channel breaks. That is a simple trade entry strategy but you can also use lower time frame entry techniques such as breakouts and failure tests to enter higher time frame setups.
Hope this helps!