This patience can certainly pay off, as was evidenced recently with the USDJPY triangle break. You may recall my blog post on 21st October in which I was patiently waiting for a potential 980 pip move after a break of the triangle on the weekly chart. I sat on my hands and patiently waited for the break to happen. The break was confirmed the week of 3 November and I entered the trade long. Currently that trade is up some 350 pips and is still rallying. See how patience can pay off I am still in this trade and have taken some profits off the table and am leaving the remainder of the trade to run. My target is set to take the remaining profits at 103.70. Let’s see how the trade progresses…

Bring on the pips!
Jackie

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I hope you were cautious also and didn’t let NFP spoil your week last week

Let’s take a look at our trading week ahead for this week…

EURUSD
Long @ 1.3640

I am not interested to long the EURUSD at it’s current price. I expect there will be some profit taking on this pair after it’s recent move up last week, and MACD divergence is in play also. If price gets back down to 1.3640 I will however be looking to take a long – for multiple reasons… This level is 50% fib, intersection of trendline and support & resistance line.

GBPUSD
Long @ 1.6070, or if fails here then
Long @ 1.6000

Fundamentally this pair is looking healthier than the EURUSD and technically it looks bullish also. I will be looking to long at the 1.6070 area which is 50% fib, weekly trendline and the monthly 55 ema is just below also, ie. multiple reasons. If price fails at this level, then I will definitely be looking to long at 1.6000.

AUDUSD
Short @ .9600
Long @ .9400

MACD divergence is indicating that this pair is in for a fall. Price has also closed below the daily trendline, 200ema and also the whole number of .9600. I will wait for a pullback to .9600 on the daily before entering the trade short.

The next area I will be looking to trade on this pair will be to long at .9400. This is previous support, it is an important whole number and it also intersects with the 55ema.

USDJPY
Weekly – Triangle Break

I am still watching this pair for a potential triangle break, which could potentially reward us with a 1,000 pip move. This was discussed in last week’s post. Patiently watching and waiting…

I would love to hear from you! If you have any comments, suggestions or want help with anything, please let me know.

Happy trading!

Jackie

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As I begin my week reflecting on my trades for the past weeks, I also reflect on what turned out to be a very peaceful view from my office this week.  I must commend Cairo on their exceptionally calm and peaceful protests the past two Fridays!  What I was anticipating to be a large and potentially violent demonstration, actually turned out to be a few thousand protesters voicing their views, in what resulted in a relatively peaceful gathering (photo below taken from the balcony of our building).  According to The Egyptian Gazette, only 8 people were killed in clashes Friday week, across the whole of Egypt.  This is a huge improvement from the 1,000+ who have sadly lost their lives over the past few weeks, and many of these have unfortunately been in our “front yard”

Regrettably over the past week, the emphasis appears to have bypassed protests and moved on to disruptions through bombings.  The Egyptian Interior Minister was very lucky to survive an assassination bid last week after a bomb was detonated near his house in Nasr City, Cairo.  Although I never heard, nor personally saw the devastation after this blast, Nasr City is our neighbourhood – this is all just a little bit too close for comfort!  Sadly, reports were that 2 people died and 24 were injured in this attack.

I hope to be able to report on some brighter news from my neighbourhood next week

Enough of what’s been happening around “my office”, let’s get down to business and discuss the results from within my trading office…

The two trades I had my eye on in my previous post were the AUDJPY and EURUSD.  I took both the trades (based on the reasoning discussed in my post).  This was the outcome…

AUDJPY

I set the order to short this pair at 88.71, just prior to going to bed.  This is the perfect time to set an order for an “end of day” trade, since the daily candle had just closed in London.  My technical analysis was telling me sell the AUDJPY, with the indications being that this was a high probability set up.  My order was triggered the next day, and my predetermined target was subsequently hit on day 2.  121 pips profit (over a week’s worth of profit) achieved in 2 days from one order that I set and left.  This little gem of a strategy is perfect for those of you who are too busy to be checking computer screens all day and/or who work full time.  About 15 mins work analysing and setting the order for this pair, which resulted in a week’s worth of profit!  Brings new meaning to the “4 Hour Work Week”

EURUSD

The second trade I took that week was the EURUSD, for the aforementioned reasons in my previous post.  This was a trade which didn’t go according to my plan.  Oh well, you can’t win them all, and especially when it comes to Forex!  Losing is part and parcel of trading and should always be factored into your strategy.  The idea is to try and ensure that your winning trades reward you with at least double what your losing trades take away from you.

Thank God I had my stop loss in place! If not, I could have been in a much worse position (as indicated by the last candle).  A stop loss is mandatory in every single one of my trades and this has ended up saving my butt many a time. It’s there to save your butt also – make sure you utilise it!!

The up arrow indicates where I entered the trade (at the green dashed line) – after the pullback to the break of the triangle.  The down arrow is where my stop loss safely got me out of the trade (red dashed line), before I potentially could have ended up losing my shirt on the next candle.  The gold dashed line was my predetermined target.  I entered Long at 1.3391 and was stopped out at 1.3350 = 41 pips loss

Overall, at the end of the 30 August trading week, my total profit was 80 pips.  Not bad, considering this was realised only from two trades.

With the threat of a strategic strike on Syria, Non Farm Payroll, interest rate news and numerous other “red flag” news announcements, I chose to take a voluntary week off last week.  Sometimes the best trade is no trade at all.  It is a good idea to be well aware of when these important news announcements occur and to sit on your hands if need be during these times.  A great website which details all economic news and exactly when these news announcements are due out is:  http://www.forexfactory.com/  Checking this website should form a part of your daily trade planning strategy.  It’s an excellent resource – use it!

Bring on the 4 Hour (or less) Work Week this week…

Happy trading!

Jackie

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