Trades on my radar for this week…

As we begin our new trading week we are greeted with large gaps at the market open. It is commonly known amongst traders that approximately 90% of these gaps will close at least 80% of the way.  Armed with this knowledge, we can use this to our advantage in our trading for this week.

I have a couple of trades on my radar. These particular trades follow a simple trend trading system. I affectionately call it my “Pip Generator” strategy. Basically, once a trend is in place, you wait for a retracement back into the ema’s and then enter the trade based on candlestick formations. If there is extra confluence with a support or resistance level, this will give you additional reasons to take the trade. The following examples will show you what trades I have my eye on over the next few days and where I will be looking to enter them.


4H Chart
Pip Generator Strategy

usdchfh4 - stt - tp 16.9.13I will look for a bearish candle set up ie. pin-bar reversal or doji candle, upon the close of the 4 hour candles.  If one of these bearish candle formations appears within the 10 & 21 ema channel, then I will look for extra confluence with the resistance line at .9289. As this pair opened with a gap this morning, it is more than likely that this gap will be filled, so I am anticipating price moving up towards this .9289 line.  When it does, and if there is a good candlestick formation, then I will enter the trade on the close of the 4 hour candle. The area I will be looking to short this pair is highlighted in yellow. This is a longer term trading system, so I will be prepared to hold this trade for a few days, or longer, if the trend remains in place.


4H Chart
Pip Generator Strategy

eurusdh4 - stt - trade plan 16.9.13When price retraces back within the 10 & 21 emas and has the extra confluence of the 1.3300 support level, I will look for a bullish candle formation at the close of the 4 hour candles. Once again, I am looking to enter long at the yellow highlighted area if a bullish candle formation appears. My target will be the resistance level at 1.3394.



gbpusdh4 - stt - trade plan 16.9.134H Chart
Pip Generator Strategy

I will look for a retracement back into the 10 & 21 emas and also with the support level of 1.5834 as confluence.  The highlighted area is the area I will be looking for a bullish candle formation to enter this long.


usdjpydaily 2 - 16.9.13Daily Chart
Long @ 98.66
Target 1 @ 100.00
Target 2 @ 100.56
Stop Loss @ 98.24
Risk:Reward = 1:3

I will be looking to buy the UDJPY at 98.66 as it is a support level, 50% fib and 55 ema ie. multiple reasons.  Stop Loss is just below 61.8% fib and the trendline. The risk to reward ratio for target 1 is 1:3 and for target 2 is 1:4.5, so extra reasons to take the trade.


audjpydaily - tp - 16.9.13Daily Chart
Long @ 90.00
Target 1 @ 91.82
Target 2 @ 93.50
Stop Loss @ 89.10
Risk:Reward 1 = 1:2
Risk:Reward 2 = 1:4

Reasons for this trade:  strong support level, whole number, 50% fib

These should be enough trade ideas to get you started for the beginning of the week. I will update you as the week progresses.

Happy Trading!







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