Hi I mentioned in last weeks update that I had managed to recruit a husband & wife team of retired former professional forex traders & teachers to help administer the forum. Jay & Julie both traded forex for major international banks & investment houses for over 12 years. Trading forex at the highest level for amounts up too $30 MILLION. Next time you push the trigger at a $1 a pip, imagine the stress if it was $1 million!!
They will be available from Sunday 17th January for a few hours a week to answer questions/post interesting, original articles and generally help forex traders with any problems they may be having. I will still be available but I currently have 100′s of emails a day to get through and this just eases the load for me.
Here is a brief resúme of their forex trading track record:
BIO:
Currently, we are an active professional freelance writing and editing team specializing in foreign exchange market commentary, education and analysis. Together, we have 25 years of experience writing financial market commentary in our native U.S. English, although we also write in U.K./Australian English and Spanish. We are both now retired from professional trading, but as the forex market has increasingly become accessible to smaller traders via the Internet, we have become active as online forex traders and market commentators with the goal of sharing our insider market expertise with the general public.
NFP: certainly gave some movement including a 50 pip gap on the $/Yen. Scary stuff.
As you know my M2 method is fundamentally a break out/pull back strategy. In the last few weeks the price of many pairs has simply moved sideways. Many pundits will tell you that you can’t make money in a sideways ranging market. We on the other hand have done very well recently with simple bounces off support & resistance & trend lines.
Hopefully the NFP news, which was virtually the opposite of Decembers, will now give us some new trends to follow. If not we carry on with the bounces. I have mentioned before that in my opinion you would be best advised to concentrate on just a few pairs. Jay explained in last weeks article how the major bank traders just specialise in one pair. In todays video I show you how you could have made many, many 100’s of pips in the last few weeks simply by trading the Euro/$ & The Gbp/$.
The only reason I analyse more pairs is because of the LMT. The pairs I recommend you focus on are any combinations from the following (maximum 4 pairs) : Gbp/$, Euro/$, Chf (for correlation), $/Yen, Euro/Gbp, Aud, and to a lesser extent the Cad.
Take into account correlation. When the Euro is going up the Chf is going down 90+% of the time. Equally when the Euro is going up so is the Aud (80%) & Gbp (65%). Therefore you do not trade correlated pairs at the same time.
Forex Analysis for the week ahead:
One would logically expect the $ to fall in the coming weeks after Fridays NFP release which was much worse than expected. As you will know by now forex & logic can be complete strangers to one another! So what we need to do is ignore our instincts and simply wait and see what the charts tell us to do.
Remember to pay close attention to the weekly & daily bollingers on all currency pairs at the market open. Those that open suggest continued movement & those that slam shut say reversal to me.
Once again the figures I give are where I am looking for reactions. Either a bounce or break of these areas.
Be very careful around the market open. There is a big possibility of lots of “gaps” (explained in the gap video, forex strategies page, miscellaneous section). This is the first chance that Asian traders have the chance to trade Fridays NFP news. There is also Australian news around this time.
M1 method: I suspect that there will be a lot of movement in the asian session due to the NFP news, therefore the ranges could be too big for this method at tomorrows London open, but if its quiet look for standard break outs and pullbacks as per the normal rules.
LMT: I can see no daily signals lining up (check your own platforms). If you are looking to trade 4 hour signals avoid those that are going to fire near to recent trend lines eg don’t long the Euro/$ near the horizontal trend line at 1.4450 where price has repeatedly bounced back down.
Euro/$: I show you in today’s video how we have been making lots of winning trades with simple bounces off horizontal support & resistance lines at 1.4450 & 1.4250 for over two weeks. There is now however a FLAG PATTERN on the Daily Euro/$ chart and these trend lines could now be more important. This upper trend line will be around 1.4500 tomorrow & the lower around 1.4290/1.4300. For me to long this pair I need a break out followed by a pullback of 1.4500 either on a 4 hour or if you are a daily trader, wait for a pullback on Tuesday. Plan B is that we look for bounces off again. Go to smaller time frames to look for clues/multiple reasons why price might reverse. There is big Chf news at 08.15 GMT . This could move this pair so be extra careful around tomorrows London open for both of these pairs.
Chf: I will not trade but will use for confirmation for possible Euro trades. Rejected at the weekly trend line again in the last few weeks. This trend line will be around 1.0370 tomorrow. If it gets back up here look for shorts. Alternatively if it breaks and closes below 1.0200 look for shorts. I am not interested in longing as the moves have been very small in the last few weeks.
Gbp/$: Also range bound, between 1.5900 & 1.6200 which are still………
The rest of my written analysis is available to subscribers of my low cost forex mentoring program.
If you would like to receive detailed analysis on up to 12 forex pairs on a daily basis then consider joining. We have over 40 tutorial videos for beginners through to intermediate level forex traders as well as daily analysis, tips, advice & email support. To find out more CLICK HERE
Todays video is below. To view full screen click over the You tube icon, bottom right of the screen. PLEASE leave a rating/comment on you tube, regards, marc
Share This
If you liked this article, please share it with your network:
Tweet this 
Stumble this 
Delicious this
