Forex Trade Setups Commentary: Gold fakey setup, 10th December 2010

Forex Commentary:

The U.S. dollar traded relatively unchanged against the other majors today, the greenback gained slight ground on the euro, New Zealand dollar and the Japanese yen, but it lost modestly to the other majors.

Silver and gold both paused near their 21 day dynamic value areas today, forming fakey setups in the process. These could be good entries to hop back on to the uptrend in these precious metals.

Trading Setups / Chart in Focus:

Gold

Gold formed a bullish “minor” fakey setup today as the trading week came to a close. This setup occurred at the 21 day ema dynamic support area and is a price action setup indicating the uptrend could resume next week. We would need to see a break of the mother candle high to trigger an entry.

Note: there is a similar setup on the daily chart of Silver.

To learn more about the fakey setup and the specific techniques I teach traders to use to enter the fakey, check out my price action forex trading course.

Other Markets:

On Wall Street today stocks pushed higher, the S&P hit its highest level since the week Lehman Brothers collapsed in 2008, suggesting the year-end rally has legs to run higher.

The Dow gained 40.26 points, or 0.35 percent, the S&P 500 added 7.40 points, or 0.60 percent, and the Nasdaq rose 20.87 points, or 0.80 percent.

Upcoming important economic announcements: 12/12

4:45pm EST: Australia – RBA Gov Stevens Speaks

12/13

4:30am EST: Britain – PPI Input m/m
4:45pm EST: New Zealand – Retail Sales m/m

Tim James said,

December 11, 2010 @ 11:31 am

I have read in youy course and in your aricles that for a fakey to qualify it has to break the MB.Your course clearly shows these examples and the MB must break.

I have also seen in the forum you explain to someone that what they are pointing out is not a fakey but a “false break” as it only broke the insie bar. However now on this setup it doesnt even go to cloe to breaking the MB and it is called a “fakey” and found you did the same with the NZDUSD “fakey” this week tha going of your previous teachig is NOT a fakey.

Can you please explain as im hihgly confused.

cheers,

Tim J

nial said,

December 11, 2010 @ 3:57 pm

A Fakey (minor fakey ) can be a false break of the inside bar and then the trigger needs to see a break above the mother candle, in the gold example above it needs to break up.
I understand it can be confusing, however, the logic is the same, its a false break around an inside bar and then the market moves the other way.

Nial