As an example, I have spent an hour or so analyzing the markets so far this week. On Sunday I usually do this, before the market opens on Monday. I do my homework by checking my charts, catching up with any financial news over the weekend and I make my trade plan for the week ahead.  Once I have my plan in place, I then set orders for any currency pairs that I wish to trade at the market open. We need to wait for the market to open before orders can be set, since orders cannot be placed on the platform over the weekend while the market is closed. Once my order is set, with a predetermined stop loss and take profit (target), I can then walk away from my trading platform and let the market take it’s course.

These are the current orders that I placed at the market open this week and why:

GBPUSD
Long
Daily Chart
Entry:  1.6540
Stop Loss:  1.6502
Target:  1.6822
Risk / Reward Ratio:  1:7

We are still in a channel with price looking like it will once again bounce off the lower trendline. I have my order set to buy at 1.6540 as this is also the area of 61.8% fib and 55 ema. My stop loss is set for below the 78.6% fib and the trendline. My target is set at the previous high. As you can see, this has an excellent risk to reward ratio of 1:7. So a “must set” order in my view.

You may also be able to see my trade I placed from last week. I bought after the previous touch of the trendline and have now closed half the trade with an 80 pip profit, leaving the balance to run to my ultimate target, with potentially an overall 317 pip profit. Stop is now moved to entry, meaning this is now a risk free trade

USDCHF

Short
Weekly Chart
Entry:  0.8980
Stop Loss:  0.9085
Target:  0.8700
Risk / Reward Ratio:  1:2

As you can see from this weekly chart, there is a trendline in place since the middle of last year. This trendline is also intersecting with a support / resistance line (which also happens to be a whole number) at 0.9000. Another reason to take this trade around the 0.9000 price is that it is also 61.8% fib retracement. Therefore, multiple reasons to set an order for this trade. Set and then forget.

USDJPY

Long
Weekly & Daily Chart
Entry:  102.80
Stop Loss:  101.85
Target:  105.23
Risk / Reward Ratio:  1:2.5

With a confirmed triangle break on the daily chart, I am hoping to catch the move on the pullback. In anticipation of this pullback, I have placed an order to buy at 102.80, which is just above the 200 monthly ema, & 55 daily ema. I have placed my stop loss just below the bottom line of the triangle with my target at the recent highs.

EURGBP

Short
Weekly Chart
Entry:  0.8337
Stop Loss:  0.8410
Target:  0.8090
Risk / Reward Ratio:  1:3

The EURGBP on the weekly is also in a channel. I have my order set to sell this pair at the area where the trendline, 200 ema & 55 ema intersect – ie. multiple reasons. My stop loss is placed above the trendline & above the most recent highs. My target is set for the lower trendline of the channel, which also happens to be a previous area of support & resistance.

Let’s see what price has in-store for us on these currency pairs over the next week. If any of these areas fail, I will be able to initiate my back-up plan, however, the charts shown here are my 1^st choice trade options.

Happy trading during your 4-Hour work week!

Jackie

The post Forex Trade Plan – Week Beginning 7 April 2014 appeared first on View from the Forex Office.....

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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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

The post Trades on my radar for this week… appeared first on View from the Forex Office.....

NZDUSD

Sell @ .8065
Initial Target = .8000
Stop Loss = .8088
Risk:Reward = 1:4

Reasons for trade:  at 78.6% fib, 200 ema on daily, 55 ema on weekly, great risk to reward ratio

I will enter the trade from the 4 hour chart based on bearish candle formations.

Alternative:  If this pair fails to hold at the .8078 level, I will wait for a clear break above this level, followed by a pullback, to go long. My target for this trade will be .8160

GBPUSD

Long @ 1.5600
Target = 1.5747
SL = 1.5560
Risk:Reward = 1:3.6

Reasons:  intersection of trendline, support line, 23.6% fib and is a whole number, great risk to reward ratio

USDJPY

Long @ 100.00
Target 1 = 100.84
Target 2 = 101.52
SL = 99.59
Risk:Reward Target 1 = 1:2
Risk:Reward Target 2 = 1:3.7

Reasons:  break of support followed by pullback, major support line, whole number, 23.6% fib just below

Let’s see how the week pans out now that some of the momentum is returning to the markets.

Happy trading!

Jackie

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