EURJPY continued - money in the bank

Congratulations to anyone who went short the EURJPY pair yesterday! After a short stall in the 133.5 region momentum picked up again and started a free fall.

Continuing from yesterday's chart, now updated we have:

A few aspects to notice:

• Stop loss turned out to be plenty wide - the trade never took much heat that is
• Profit target was placed extremely well - definitely an exception to hit this precisely!
• The trade progressed much faster than we could have hoped for - always a positive

A very good trade to end the week on!

EURJPY short setup - strong momentum!

EURJPY has been coming down with strong momentum, and just went through clear support on 1H chart:

Now we have a retrace back to the level that's just been broken - that is: the entry point is here right now!

Probably looking for a profit target around 132.7 area and a Stop Loss width of ~30pips

Waiting for a break on AUDUSD

Currently monitoring the Aussie as it approaches what still holds as major support. Using a 1H timeframe this is what we have now:

We will have to see a significant break downwards though, before justifying a short trade as the overall trend is still upwards.

USDJPY right now !

On the 5M chart as of this moment the USDJPY cross looks:

USDJPY 5M 13:00 GMT +1

A tradeplan for a Risk:Reward in the region of 1:3 to 1:5 could easily be set up here.

Just a quick live update for now

Strong potential in Australian VS. Dollar (AUDUSD)

Currently looking at the Aussie versus the dollar. The pair has shown some significant correlations between price action and previous price action levels over the last period. For that reason alone one should be dedicated to this chart, and have a plan for taking advantage of the upcoming price development. Further on we are seeing a clean and strong uptrend which in itself enhances our odds as long as we look to go in the direction of the overall trend.

AUDUSD 15M 21st of october

At the current level of price action there has been multiple bounces back from resistance, which is not what we have seen earlier on in this trend. This might indicate partly that we could be seeing a weakening of momentum, for which we should keep an eye out. On the contrary we have a 0.9675 area which has seen massive testing and is now very well established. A possible break upwards would therefore present a very significant potential in that:

A) a continuation of the uptrend momentum could drive price far up further

B) the '75 level being as established as is the case, Risk:Reward will be very lucrative

So in conclusion the planned line of action herefrom: if a break occours, we will look to enter at a retrace to around the 0.9675 level.

Things are still all new around here!

So this blog has been up for a few days, and content have started to come up online. The whole concept of running a blog will be all new for a long time to come. So the order of new posts and charts, and overall changes to the blog, will be somewhat random for now.

Any ideas, corrections or hello's will be much appreciated!

Thank you.

Forex thoughts and Forex fading

The following is a post which I originally published to the InformedTrades community in november'12

Currently taking some days away from futures charts - who wouldn't spend such time with forex charts?

A few good trades in the last days have made USD/CHF my current favourite cross. What I'm looking at is the dynamics of Support and Resistance levels - no indicators, all price action. I watch the 1H charts and manually mark up S/R levels and while doing so I make just a slight note in the back of my head on how strong each level seems to be. As the current trend is downwards I enter when there's a setup for fading PA going towards the latest Support zone.

I rarely ever mention Risk:Reward as I have always seen this as half the story - odds of positive outcome being the other half. With that said though, should one care to look at the numbers they will often be very favourable as the S/R levels are very well defined. For S/R levels I give almost no thought to spikes going outside of these, and base my levels entirely on closing prices - the 1H chart clearly justifies this as there's often one spike outside S/R level and 2-4 bounces(closing price) at the level.


The chart here has my latest trade plotted - FXCM in stardard setup only shows closed trades for the last 24H period. I closed the position due to the potential short term upwards momentum that could be caused by the double bottom. By the way the trade was closed around 8 pips from the bottom - as I was sleeping when that formed. The trade was closed at +18pips thus an "optimal" close would have made for ~50% more profit.

As you can see another setup might be under way, because the S-level I sold at has now been broken. Should this form a setup the important level would likely be the level marked up in orange in the right side.

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