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.

USDCHF

4H Chart
Short
Pip Generator Strategy

I 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.

EURUSD

4H Chart
Long
Pip Generator Strategy

When 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.

GBPUSD

4H Chart
Long
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.

USDJPY

Daily 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.

AUDJPY

Daily 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!

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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As life is reverting back to some form of normality here, it’s time to get my trading back into my normal routine also.  My trading plan for the week ahead is as follows:

AUDJPY

Daily Chart / End of Day Trade / Short

I love this “end of day” strategy.  The set ups may not appear frequently, however, when they do you can usually set your order and walk away.  Great for those working full  time and who may only have a small amount of time for trading. The ideal set up for this strategy is depicted in the chart below – the pair is trending, the previous day’s candle is a doji which is located within the upper 2 envelopes, the 5 ema is below the 20 ema and the 200 ema.  As soon as the daily candle closes, I set my order – green = entry, red = stop loss, gold = target

ie Entry at 88.71, Stop at 89.48 and target at 87.50

I see there is no news due out over the next day which could affect my trade, I set my order as above and walk away.

EURUSD

4 Hour Chart / Long / Triangle Break

I will be looking for an entry long after the break of the triangle on the 4 hourly chart – around 1.3380.  I will wait for a pullback to this level before entering.  This area is also a weekly pivot point.  My stop will be just below the 55 ema with my target being the recent high.

These are two trades which I have on my radar for the start of the week.  If I have some other trades lining up for the latter part of the week I will provide further details in another post.

Bring on the pips!

Happy trading

Jackie

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