EU now trading below 1.4000

It would be interesting to see how will this turn in tide unfolds.

FOMC today ! Will EU break the 1.4000 psycho level ?

FOMC today ! lets see how EU reacts, the pair now trades near one of the major support at 1.4000

Possible downtrend continuation for the EU

From this point of view i will look to sell rallies paying particular attention to bearish candle formations above the 1.4150 to 1.4220 region. It was a crazy week this week particularly on Friday where we see sharp and sudden reversals that go for 50-100 pips. Again, risk management is the key here in this industry. Enjoy your weekend traders ! see you guys next week !

an extremely good article for all serious traders, must read !

By Brian McAboy

Copyright © 2006 by New Ireland Ventures, LLC.

•Do you have the courage to stay on the sidelines when you should, and miss trading opportunities?

•Do you have the courage to do the right thing and get out of a trade that you know you should?

•Do you have the courage to seek help?

•Do you have the courage to stick to your strategy and avoid temptations to deviate?

•Do you have the courage to ask "stupid" questions?

•Do you have the courage to easily admit it when you_re wrong or that you just plain made an error?

•Do you have the courage to trade for profit and give up trading for excitement?

There are ways to build the courage for any of the above questions.... READ MORE

EU Broke below 1.4200 and beyond !

the immediate short term resistnace for EU now stands at 1.4200. The pair broke below this level and moved down towards the 1.4100 level in lieu with gold breaking supports.

Looking to sell rallies towards the 1.4250/1.4300 area

Pullback towards the resistance area fo 1.4250/1.4300 might see some short opportunity. The H1 at the moment shows signs of bear exhaustion.

EU Broke down below 1.4250

A sudden wave of selling pressure in ASIA had managed to push the pair below 1.4250 important support. This will create more downside pressure targeting 1.4100 near term if we do get 1.4180 taken out. resistance seen at 1.4250,1.4300.

Break of 1.4447 update

with the break of 1.4447 on Friday, price had slowly drifted south as expected towards the 1.4300 region. EU traded to the lowest at at 1.4330 area before bouncing briefly towards the 1.4380 region before market close on Friday. With this i expect further downside to be seen next week if we do not see any major change in the fundamentals. Fundamental wise, Greece budget deficit and Trichet's recent dovish comment had weigh down the EU as well.

EU back below 1.4447

There was a sharp sell off in asia this morning following a a rumor that German Chancellor Angela Merkel might resign having lost the support of her coalition partners. The sell off was fierce and managed to break an important support level at 1.4447. The pair now trades below 1.4447 level and might open room for further downside towards the 1.4300/4250 support.

Looks like we are still stucked...!

The ECB came and went... and the EU still sandwiched in between the 100+ pips range. Trichet reiterated the strong dollar policy like a broken record and says that the interest rate is appropriate at the moment, not hinting any rate hike this year (maybe)... well same goes with the USD, no possible rate hike as well. so here we are again, trading in the range... boring huh ?

ECB later today...

with ECB interest rate statement looming ahead, the EU was a little changed today after sliding slowly from session high at around 1.4555. Well, it is interesting to note the daily chart pattern which seem to suggest that sellers are strong above the 1.4550 area. In the daily chart price did not manage to close higher than the bearflag ceiling which might suggest that the bears are still in control. If we do see a convincing break below 1.4450, then we might see 1.4300/4200 again.

SAUCER BOTTOM H1 chart EU

From NY open the pair was pushed down violently after testing the 38.2 fibs in the daily chart. it is now stabilising near the support at 1.4500 handle forming a saucer bottom. It will be interesting to take note of the price action tomorrow as we have the ECB up with interest rate and its statement.

13th January 2009

It is not how much you make, but rather how consistent you are in making those gains!

Once in awhile i would stumble upon some really well written article by some experienced fellow traders which i think you definitely benefit the reader. This week, i am glad to be able to come across this well written real life experience of a trader (Jason Stapleton (ForexGuy)) who had found his way in the markets

I’m a good trader. What I mean by that is I am consistently profitable. I have found a way to win with consistency. Winning has become a habit much the same way losing was a habit during the early years of my trading... READ MORE

manage your loss !

"Trading is not about how much you make when you are right but how much you lose when you are wrong."

Its absolutely motivating when we do get a string of winners but this also has its underlying danger as well, our ego and stubbornness might also increase proportionally with the no. of winners that we have thus the loss that follows a string of winners tend to be big and might wipe out our profits. so do pay attention to bad trades when they do occur as this would definitely help in your trading career. ;)

8th January 2009

The bearish flag formation is yet to confirm its validity. Will NFP push this pair further down? EU is now trading at an important support level. Lets see :)

5th January 2010

seems like EU had found a bottom yesterday and managed to rally to the important resistance at 1.4450/47 area. For this correction what i see is depicted above in the graph.
levels to watch for :

1.4480 Resistance
1.4350 Support

4th January 2010

from the H4 chart we can see a possible formation of an inverted H&S in the EU. with 1.4447 as the nearest term resistance and swing point. it would be interesting to see what it does at the 1.4447 level.

Welcome back traders !

welcome back to the 1st week of trading for 2010! before i begin posting charts and analysis i would like to share a famous quote from Sir Issac Newton whose birthday is also on today, 4th January 1643

“If I have ever made any valuable discoveries, it has been due more to patient attention, than to any other talent”

i hope that this would be the quote that we traders will stick to as good trading revolves around patience and waiting for trades to come to us. Wishing all traders best of luck and fortune in 2010!

Looking back : 2009 trading at a glance

This article was written with the aim of sharing what has worked well for me during my 1st year in my trading career. I will go about to explain briefly and precisely what has helped to shape my current trading strategy i hope that this would at least benefit fellow traders of all levels.

As a start, a little background about my trading strategy :

I'm a pure candlesticks trader and trade purely on vanilla charts using support and resistance levels. My early trading strategy was build based on The Force 5min System which was started by forexjedi from forexfactory. This is a great system for traders who wish to learn how to trade price action. With the help of this system trader will eventually develop the skill to read market's price action which in my opinion a crucial skill for survival in the markets.

My trading rely heavily on identifying candlesticks patterns, and for this purpose i read through Steve Nison's candlesticks books and also courses.

Fundamentals part :

1. Twitter
As for the fundamental part, i rely mostly on news in twitter. I believe that twitter and forex trading is an incredible mix. I follow traders across the globe and digest first hand information tweeted by them and compare it with the technical picture painted by the candle charts. If you are a trader and has yet to stumble upon the power of twitter then i STRONGLY suggest you to register a twitter account and install tweetdeck to get started. you can follow this link to learn more about twitter and also who are the pros you should follow : http://www.winnersedgetrading.com/trade-of-the-day/twitter-and-forex-trading-an-incredible-phenomenon

2. Inter-market Analysis
i also keep track of Gold, Oil and DAX prices as i trade and use them to decipher the overall market sentiment. some of the brokers platform i like for these are fxpro and FXDD.

3. Calender and important events
For my trading i avoid prime news time and usually trade only when the dust settles so its crucial for me to keep an eye on upcoming important events which shapes the market. For this purpose i use www.forexfactory.com to keep track and plan ahead of upcoming news.

basically these are what i had found useful for me throughout year 2009. Before this i had experimented with different strategies. But as time goes by and experience increases what i found most useful are stated above. For 2010 i plan to write my strategy into an EA and write and accompanying indicator for it i had completed part of it and will continue my work throughout 2010 and hope that it would be ready by end of this year.

hope that what i shared here will benefit all. and comments/questions are most welcomed.
may you be well and happy always and may the pips be with you ! Let us brace ourselves for a prosperous 2010 !

Happy New Year 2010 !!!

Wishing all a Happy and prosperous new year to all in 2010 ! may you be well and happy always and may pips be with you !