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PRICE ACTION FOREX TRADING COURSE
A FOREX TRADER’S CONSTITUTION (PART 1)
On the 6th of May, 1954, Roger Bannister broke the 4 minute mile. His time was 3.59,4 minutes. Everyone said it was unthinkable, that his heart would explode. But he did not listen. His feat is known as the ‘Dream Miles’. Amazingly enough, 4 weeks later, an Australian named John Landy broke it too. What had been deemed impossible now had become an accepted possibility.
Currency pair in focus: EUR/JPY
The EURJPY formed a bearish pin bar today in the direction of last week’s bearish momentum. The pin bar is showing clear rejection of resistance near 122.30.
This pin bar setup has formed within volatile market conditions, as such, there may be some upward retracement before / if this bearish setup comes off to the downside. To learn more about trading pin bars on retracements check out my price action trading course.
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar was weaker today but regained much of its early session losses against the euro, pound, and Swiss franc as the New York session drew to a close.
The commodity currencies were stronger today against the greenback on the back of surging oil and other commodities prices as risk aversion eased. The Australian dollar, Canadian dollar, and New Zealand dollar all gained substantial ground on the greenback today.
The yen was the big loser today in the currency market, closing lower from Friday’s prices against all the majors.
The Dow closed 404.71 points higher, or 3.90%, the S&P 500 gained 48.85 points, or 4.40%, and the Nasdaq rose 109.03 points, or 4.81%
THE BREAK-EVEN FOREX TRADE – Being profitable in the forex is where we all want to be. And how we measure this is often by quantifying our results in terms of profit versus losses. Yet, this measure cannot he, by itself, sufficient to sustain our motivation. All traders have periods of losses en route to profits. As a result, a single-minded desire for profits may itself be a factor in furthering losses and actually reduce the potential for success. For once a person desires profits, resulting losses turn into disappointments
Continue Reading The Psychology of BREAK EVEN Forex TradesWhile there can be a number of reasons why most traders fail at forex trading, they mainly are a result of poor self-discipline which leads to risking too much, over trading, trading with money one can’t afford to lose, not demo trading first, or using overly complicated trading methods that make trading much more difficult than it actually is.
Continue Reading Why Most Traders Fail at Forex TradingDaily Forex Market Commentary
The U.S. dollar and the Japanese yen were the big winners today with the huge flight to safety that occurred. Gold also saw a considerable gain today, indicating investors are looking for even more safety than the typical safe havens of the greenback and yen.
The Japanese yen was up over 1,000 pips against some of the other major’s in the course of today’s trading session. Gold was up around $22 an ounce today as investors flocked to it as a source of safety amidst the current market turmoil.
Stocks:
On Wall Street today stocks literally took a beating. The U.S. stock market had one of its worse days ever. The Dow Jones industrials dropped nearly 1,000 points in 30 minutes on the back of concerns that Greece’s debt problems could slow world financial recovery.
The Dow managed to recoup much of its earlier losses but it still closed down nearly 348 points. The big 3 U.S. stock indexes all lost 3% or more today in trading that was reminiscent of the 2008 financial crisis.
The Dow closed down 347.87 points, or 3.2%, the S&P 500 was down 37.72%, or 3.24%, and the Nasdaq lost around 82 points, or 3.4%
Currency in focus: GOLD and GBPJPY
The recent daily spot Gold chart has provided a number of quality pin bar setups with the most recent one occurring just yesterday.
Notice in the chart below we have had two recent quality bullish pin bars that could have provided great entries into the recent bullish momentum of Gold. Also note that the most recent upside run was kicked off by a very nicely formed bullish pin bar.
For more pin bar trading education please click here: pin bars from key levels
GBP/JPY:
The GBPJPY also provided a recent pin bar setup that could have gotten you in on today’s big market sell-off. Notice the bearish pin bar that formed on 4/30. This pin bar showed clear rejection of the strong horizontal resistance near 145.00.
We covered this setup a few days ago in our member’s forum daily commentary, check it out by becoming a member and getting chart analysis on a minimum of 4 currency pairs each day.
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading training course.
Daily Forex Market Commentary:
The euro hit a 14-month low today as traders dumped the faltering euro-zone currency and flocked into safe-haven currencies like the yen and U.S. dollar.
The greenback soared today as investors became increasingly fear full about holding riskier assets due to the increasing Euro-zone debt issues. The Japanese yen was the strongest currency of the day however, trading higher even against the U.S. dollar.
Stocks:
On Wall Street today stocks ended lower again as investors became more anxious that the fallout from the Greek debt crisis could spread into other European economies.
Resource and industrial stocks weighed on the stock market today as they are typically sensitive to the global economic growth outlook. Crude oil fell nearly $3 a barrel down to $79.97 which worked to put further pressure on energy shares.
The Dow lost 58.65 points, or 0.54 percent, the S&P 500 shed 7.73 points, or 0.66 percent, and the Nasdaq dropped 21.96 points or 0.91 percent.
Currency pair in focus: AUD/JPY
The current daily AUDJPY chart is a good example of how to trade a consolidating market with price action setups.
Notice the market has been essentially trading in a range between about 87.50 and 84.65 for the about the last 4.5 weeks. Note the pin bars in the chart. Pin 1 was not that great of a signal because it was a smaller pin bar and against the recent uptrend. However, once pin 2 formed you would have taken note that this was the 2nd pin bar showing rejection of resistance near 87.50. Plus there were a few other long-upper-shadow candles as well, further indicating the bulls were exhausted.
This is just one example of how to effectively use price action to trade the forex market. For more great examples please click here: Forex Trading Videos
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar was sharply higher today as equities got hit hard and the euro sold off as fears were renewed that the Greek debt crisis might spread to other euro-zone countries.
The greenback looks to be gaining some decent bullish momentum as some significant support and resistance levels were broken in the course of today’s trading session. Check out the chart commentary below for more details.
Stocks:
On Wall Street today investors dumped stocks in what was the worst trading session in three months as fears grew that even with a bailout for Greece, Europe’s debt crisis could spread to other weak euro zone countries.
The Dow lost 225.06 points today, or 2.02 percent, the S&P 500 lost 28.66 points, or 2.38 percent, and the Nasdaq lost 74.49 points, or 2.98 percent.
Currency pair in focus: AUD/USD
As discussed in yesterday’s commentary the AUDUSD bearish pin bar ended up being a quality price action setup.
The pair broke to the downside today in dramatic fashion out of its multi-week sideways wedge consolidation pattern. Support now sits near 0.9000.
For more examples of pin bar and fakey setups click here: Pin bar and Fakey setups
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary
The U.S. dollar was mixed today, trading higher against the British pound, euro, Swiss franc, and Japanese yen, while losing to the Canadian dollar, Australian dollar, and New Zealand dollar.
Typically when the stock market has a strong rally like we saw today the greenback will weaken, but the strong showing of the U.S. dollar today against the pound, euro, franc, and yen went against this correlation. The likely factor contributing to this is that if economic numbers out of the U.S. continue to look positive the Federal Reserve bank will have to raise interest rates which will cause the greenback to strengthen and stocks to weaken
Stocks:
On Wall Street today stocks rallied broadly on the back of manufacturing, consumer spending and construction data all showing a stronger economic recovery.
The Dow was up 143.07 points, or 1.30 percent, the S&P 500 was up 15.55 points, or 1.31 percent, and the Nasdaq rose 37.55 points, or 1.53 percent.
Currency pair in focus: USD/JPY fakey recap and AUD/USD breakout
UPDATE: The USDJPY bearish fakey setup that we discussed in Friday’s commentary has been nullified after today’s price action. The high of the fakey bar has been violated so the setup is no longer valid.
AUD/USD
The AUDUSD bearish pin bar from last Friday is still relevant. The pin bar is showing a false breakout of the sideways wedge pattern that this pair has been stuck in over the last few weeks.
A downside breakout of this wedge would likely result in a move lower to retest support near 0.9130 and possibly beyond that near 0.9000. A breakout to the upside of the wedge will likely result in a retest of 0.9380-0.9400 resistance.
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading training course.
How to Trade Forex So you have decided you want to learn more about the forex market and possibly even start trading some of your own money in it. Well, the first step towards learning how to trade forex is to understand that you should only trade real money that you can afford to lose [...]
Continue Reading How to Trade ForexDaily Forex Market Commentary
The U.S. dollar was mixed today, trading lower to the euro, Swiss franc, New Zealand dollar, and Japanese yen, while gaining slight ground on the British pound and gaining modestly on the Australian dollar and Canadian dollar.
The greenback was relatively mixed this trading week trading in relatively range bound conditions to most of the major currency pairs. We will analyze some price action setups in today’s chart commenta
Stocks:
On Wall Street today stocks tumbled lower to close out the worst week since January on the back of news of a criminal investigation into Goldman Sachs which worked to further upset investors who are already nervous about the possibility of new regulations out of Washington D.C.
The Dow close 158.71 points lower today, or 1.42 percent, the S&P 500 lost 20.09 points or 1.66 percent, and the Nasdaq lost 50.73 points, or 2.02 percent.
Currency pair in focus: USD/JPY
The USDJPY has formed a bearish fakey setup as of today near resistance around 94.50-94.75. The pair has been essentially consolidating sideways for the last few weeks trading in range between about 94.75 and 92.00.
Should this fakey setup come off to the downside we may see price move lower to re-test support near 92.00.
To learn more about the fakey setup and other great price action setups click here: Forex Trading Videos
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading training course.
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