I hope you have had good week trading Forex. This week was a profitable one for many members who watched my analysis and stuck to the rules. At this time of year, many Forex traders are getting burned, yet Forex Mentor Pro members are still making loads of pips. As always in Forex, if you maintain your discipline, you will come out on top.
I have published another great Forex competition entry in the forum, from Keith W. Keith has entered the following article where he explains that even though he has never been particularly sporty, how he set out to run his first marathon. The importance for us is that Keith points out the many similarities that exist when you plan to undertake such a gruelling event & when you set out on your Forex journey & what you need to do every trading day. The Forex Marathon – how to Plan for Success
Last week
In the recent Sunday updates I have shown you how to trade ranging markets. The areas to look for to take trades. If you were trading on the 4 hour & daily charts in recent weeks there have been a lot of great trades from this method & I know many of you have done very well. However many people struggle at this time of year & I suspect that the main reason is that they are not flexible enough with their strategies AND too many people are still sat there all day looking for trades, often on smaller time frames. STOP IT!
At the start of todays video I remind you of the areas we were looking for last week. Why & how successful this method was on many pairs. These were classic examples of Plan the Trade. Trade the Plan, then walk away. During the week I showed you how I had just taken the Chf short which went on to gain well over a 100 pips. This was a simple bounce off a line that I had first pointed out a fortnight before & then re-stated last Sunday.
Set the trap. Wait for price to come to you. Take the trade. If you are still struggling with this then I urge you to go back to the videos in the Forex strategies/Advanced LMT section which you will find at the top of the home page (you do NOT have to be an LMT owner/user to benefit from this section).
The videos in here are the basic building blocks you need to succeed at Forex & were the key to finding literally dozens of profitable trades in recent weeks. Support & resistance (it is crucial that you fully understand this). Trend lines, fibs & most important of all PLAN THE TRADE: TRADE THE PLAN
The Forex Week Ahead
Having said all of the above, tomorrow could be tricky. NFP news was mixed, but overall much worse than expected & therefore it is reasonable to assume (in Forex assume NOTHING 
that there will be further $US weakness, BUT these are thin, illiquid markets & price is at extremes (recent highs & lows) on many pairs so I will be ultra cautious tomorrow. There may well be gaps at the market open & these may not fill. Asian traders have had all weekend to analyse the US data & its their first chance to “vote” on it. Apart from red flag Aud news 02.30 London time, there is no scheduled major news tomorrow so it could be less predictable than usual.
All my thoughts/ramblings are explained in detail in the video. Here follows my brief written notes;
| M1 | Hit & miss at the moment. I expect the Asian session to be bumpy so there may well be no opportunities in the morning. Certainly not a method to get up early/stay late for tomorrow. If you are around then watch London open. |
| Lmt
|
Better for keeping you out of trades than winning at the moment. It needs a trend. Its summer markets & the trends are not clear. I can see nothing on Alpari for tomorrow. It is important you follow the “Advanced Rules” now more than ever. |
| Gbp/$ | Too messy for me at the moment. Better opportunities elsewhere.If I was to go long I need a clear break & close above 1.6000 which is huge psychological area that failed to break by 2 pips on Friday. Also interested to long if pulls back to 1.5800.
If you are looking to short then the area of interest is 1.600 because of the psych level, BUT we are now in a clear uptrend so this will be half stake/counter trend trade.. |
| Euro/$ | Another messy situation. To long I need a clear break & close above 1.3300 but the daily trend line is not far above & 1.3400 was a major previous support & resistance area so its not that tempting.Crucial area is now @ 1.3300 area. this is the whole number, daily 200ema & 78.6 fib, & upper daily trend line is not far above around 1.3350: in other words MULTIPLE reasons why price will react.
The brave (reckless J amongst you may consider a short here BUT only half stake as its very counter trend |
| Chf/$ | Finished the week near where it started. Currently sat on a quadruple bottom/strong support line. I have now put another support line at last weeks double bottom low at 1.0340 area. To short I need price to close below here & then pullback.Alternative is could bounce back up here again so counter trend traders will consider a long. 1.0550 has been strong upper resistance in recent weeks, so again considering a short if it gets up there. |
| $/Yen | Did the break out we looked for last week. Too extreme a low for me now. Possibly consider a short if price pulls back to 86.30 but will wait for London open. To get back to that area it would need to bounce back up but not for me. |
| Aud/$ | Big news release in the Asian session, 02.30am London time. Broke 78.6% fib eventually last week so now it’s a reversal, but it never pulled back. I show in the video how its bouncing off a daily trend line, but need a pullback to get me interested. Will struggle around 93.75/94.00 which was previous highs so counter trend short later in the week may be of interest. |
| Cad | Got the break out followed by the pullback last week. Price pulled back to 1.0300 after NFP. Any other time of the week & that would have been a great place to short. Watch 1.0300 closely as this was previous support therefore now resistance. If it did break above here then 1.0400 is the next important place to consider shorting |
| Euro/Aud | Possible 700 pip triangle break out still brewing. I have moved the lines again, all shown in the video. Prefer a short but if it breaks upwards I want it to close above 114.00 & preferably above 114.20 8last weeks high) and then pullback. |
| Euro/Yen | Possible 5000+ pip triangle break out! Still watching, & waiting & waiting zzzzzzzzzz JI have moved the lines on the daily chart. Still looking for a triangle break out. Most interested in a break to the down side which is straight forward M2 break out pullback method BUT would also be interested if breaks up. |
| Aud/jpy | Wait until after Aud news. Worked brilliantly last week bouncing off 79.20 and 78.00. I have moved the lower line now to 77.75. So my strategy is either bounces off again or a break out followed by a pullback. I show in the video where I will place my stop if price gets back up to 79.20/30If price breaks out of the range I am only interested in a short as there is too much in the way for an upward move: emas, 50% daily fib etc |
| Euro/Gbp
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Loads going on here! Member Frans points out a possible Head & shoulder pattern that would be good for 250 pips and also there is a possible triangle break out. I am only looking to short so break of lower trend line & pullback or if price gets back to 0.8380/8420 definitely looking for reasons to short. |
| Best of Luck, Marc |
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