EUR/JPY Daily Chart

Here is EJ daily chart.

November 3rd candle provided a range zone for many days.

A break-out (marked with a red arrow) below Nov. 3rd candle low signaled the market short. Price moved to the downside.

Last daily candle is a bullish pin bar at support. A break of the high of this pinbar candle could signal the market to move up.

This is not a recommendation to trade. If you are trading use a demo account or know your risk!

Support and Resistance Trading

A further word on support and resistance. In the above chart of recent EU action I have added a simple indicator that is supplied with the MT4 trading platform. It is called the Awesome Oscillator (AO). Spend a little time looking at the indicator and it is plain to see that you can not just buy when it turns green and sell when it turns red BUT combined with S/R and candlestick analysis we get some really strong and accurate signals (I've marked some of them on the AO with arrows). No signal will ever be right 100% of the time which is why we apply money management.

To sum-up - choosing strong signals combined with strong money management is key to successful trading.

This is not a trade recommendation. If you are trading use a demo account or know your risk.

Support and Resistance

Support and resistance (S/R) areas are where price tend to reverse. I have marked off what I believe to be some current strong support and resistance levels. Watching for candle formations at these areas can give your trading a boost. Of course sooner or later price will break thru these levels. When it does the level can change from support to resistance or vice versa.

All that said I see that the daily candle formation for EJ was a bullish piercing candle two closes ago and that it is at a support level. I have set a pending order in case price 'bounces' hard off of the support.

This is not a trade recommendation. If you are trading use a demo account or know your risk.

Trade Update. . .

Hi All

My Short Gold hit the stoploss for a very small loss to account. Not re-entering here.

Still in the E/J trade. . .

Price Action on the pairs I'm watching says. . .

Going short!

Gold really looking like it needs to close the gap.

I've gone short on gold for the close of the gap.

And I've raised my SL to lock in more profit on my long EurJpy trade since it is moving same as Gold. . .



This is not a trade recommendation!!! If you are trading use a demo account or Know Your RISK!!!!

EUR/JPY moving SL to Lock in Profit

EUR/JPY broke through a minor support level. I've moved my SL up to protect more profit. Gold gap still needs to close. . .

EUR/JPY trade update

I see that my trade is at a resistance level. Also I am noticing that these two pairs have been moving the same direction lately and I expect that gap to close.
So I have taken profit on half my open trade and moved to breakeven +4pips.

XAU/USD

I don't usually trade this pair (gold/usd) but this gap on the 1hr chart looks like something we've seen before. . .a gap that needs to close.

This is not a trade recommendation.
If you are trading use a demo account or know your risk.

EURJPY current position

So just to further explain what I saw this morning and why I entered I have attached the above picture of both NZDUSD and EURJPY. Those charts clearly show the movement of the two pairs I have traded over the last couple of weeks. I think we are now at strong support levels and that we will see a bounce to the upside so I've entered with a small risk to account. If I am wrong my stop will be hit for a risk to account that I am comfortable with losing. If I am right I'm not really sure of the TakeProfit (TP) just yet. If price action allows then next week I will be able to raise the StopLoss (SL) up to lock in some profit or at least less risk!

If you are trading please do so with a demo account until you fully understand how much you are risking when you place a trade. The above example of a trade is not a trade recommendation.

EARLY Long indications

Hi All

Did you miss me? LOL!

Looking at the charts this morning I've discovered that the gap on NZDUSD has finally closed and price is at a support level both on NZDUSD and EURJPY. This may be indicating a level for price to turn around. This is purely from a technical analysis point of view and in the face of the recent strong move to the downside any attempt to go long here must be met with stringent risk control. I have entered a small position long to test the waters.

This is not a trade recommendation. If you decide to trade please know your risk to account or trade demo.

EURJPY and NZDUSD Trade update

Hi all,

Last week I was in two trades which are now both closed. I was away from home and was monitoring my account via my mobile phone. I saw my NZDUSD trade was in profit by almost a hundred pips and decided to close the trade and take profits. At this point I am glad that I did because price has marched right back up and would have hit my trailing stop anyway.

As far as the EJ trade price action hit my stoploss that I had posted just above breakeven, so the balance of that trade is now closed.

All in all it was a good week for me. I hope you have done well also.

Current price action on EJ has been rangebound for the last two weeks or so. As I indicated in a previous post, price needs to breakout of the highs or lows of the November 4th daily bar before we have any hope of seeing a trend on the daily. The picture above also shows the daily bar I am refering to marked with red and green arrows.

For anyone interested in trading with automated software (known as an EA or Expert Advisor on the MT4 platform), I have purchased the FAPTurbo EA and have started a demo account on which the EA is running. You can follow the progress of the account at my MyFxBook page here http://www.myfxbook.com/members/andante9/fapturbo/7710
Should you decide to purchase the FapTurbo EA for your own testing purposes there are links on the bottom of this blog to take you to the site where you can purchase the EA. Don't rush into anything though, I have tested many EAs and most do not live up to expectations. For now you can keep an eye on its progress through the link I have given you above.

NZDUSD - Still Shorting

My trailing stoploss was hit overnight. I still think the pair will go down further based on the recent retest and failure to go back to recent highs (the price action that hit my stoploss overnite). I have reentered a short position, risk to account is minimal (it is about equal to the profit I already took on this pair).

This is not a trade recommendation. If you are trading know your risk or use a demo account.

Trade update NZDUSD - Managing the trade. . .

I'm up to my usual trade management on this one.

I have closed half the trade and moved the SL to BE. So I've now taken a small profit and am now in a 'free-trade' situation. I have also applied a 50pip trailing stoploss to this trade. I'm just going to let this one do what it will as it is late here and I'm headed for some rest. :-)

Just for the record I am still in the EURJPY trade and the SL is still as it was in my last update for that pair.

NZDUSD - Things that make you go hmmmm

This is not a trade recommendation.

A picture says a thousand words... I'm in and I have kept my risk to account very low.

If you decide to trade this use a demo account or be sure you know the risk to your account if your SL is hit. ..

Trade Management - Moving SL up to Lock in Profits

Here again is an example of moving the SL up past your entry point to lock in profits. If you've been following along you will know that I took half the trade off the table last week and then moved my SL to BE+4pips. This put me into a 'free-trade' position as my position was now risk free.

I have now moved the SL up to lock in further profit on this trade. Why now? Price is currently at a resistance level, if it does not break through then I am sitting just behind a support level. If price does move past current resistance then I would still be wanting to move my SL up to lock in profits, so either way its time to move the SL up in my opinion.

There are many ways to manage a trade and what I have shown is only one. Some people would have left the whole trade on the table and left the SL at original position (or maybe moving to BE) - closing their position when they see a reversal signal at substantial resistance levels. Another method could be to Take Profit (TP) at a number of pips that equals the number of pips that was originally risked, their TP level would have been set and the trade would automatically close at the specified TP. I personally do not like to use set TP levels because it limits the upside potential of a trade. Using a trailing SL like I am does give up some pips in the end but the trade could run into profit far more than I could guess - in a strong trend a trade like I am in could run for weeks!

To sum up trade management - there are many ways to manage a trade once your in. What I am showing is only one. What this method does is allow a trade to run. There is an old trading adage that goes: 'cut your losers and let your winners run'. The idea being that you do not know how far a winner will go and one good winner will make up for and even give profit over multiple small losses.

EURJPY Trade analysis

Price is moving in favor of this current position so far but as you can see there is a substantial resistance level to be broken (see blue rectangle on hourly chart)if price is to really break hard to the upside. Price is currently 'testing' the resistance level.

For now I will keep the current trade stoploss(SL) at breakeven (BE). If the price action (PA) breaks above the resistance levels indicated I may be moving the SL up to lock in more profits. Since I have already 'locked-in' profits on this trade AND moved my SL to BE I have nothing to lose by letting the trade do as it will :-)

Trade update EURJPY

Still sitting tight on this trade. NFP last Friday caused a swift move to the downside but price has not taken out my long trade just yet.

A quick glance at the daily chart indicates that the pair is has been ranging for the last couple of days. Maybe now that NFP is out of the way we'll see some better defined daily movement soon. I think we will need a break-out of the high or low of the November 4 candle before we can see any clear trending again.

When the daily is ranging like it has been, trades can still be taken from smaller time frames. . .I prefer to use 1hr as my lowest timeframe to keep influence of the spread to a minimum. However, if you are looking to trade 1hr when price is tightly ranging you can see that you need to 'lock-in' profits quickly. There is less chance of letting a winner run because price not really going anywhere. However it still is possible to watch for signals and using well controlled risk, take profits quickly.

I have not placed any new trades since the trade I am currently in. Work has kept me busy the last couple of days and the market has been ranging.

EURJPY trade update. . .

Last nite saw a nice move to the upside for the trade I showed last nite.
This morning I have closed half the trade and moved my stoploss to breakeven plus 4 pips. Best case the trade takes off and I trail the SL into further proft. Worst case I've made a small profit :-)

EURJPY Early Long Indication. . .

With the daily chart not giving any indication of price action I have 'zoomed' down to the 1hr time frame to have a look

Zooming down to the 1hr chart we will see that the last swing low has not gone below the previous swing low (see the highlighted areas on the chart above. Also, the last retracement is bouncing off the 50% retracement long as highlighted in the chart above. So overall (based only on this lower TF chart) my bias is long. Take this with a grain of salt because the last weekly candle was a bearish engulfing and we already saw that candle pattern work very well on the daily chart a few days ago.

All that said you can see that I have gone long here. This is a very early indication to go long and this is NOT a trade recommendation. My trade parameters dictate that I am risking less than 1% on the account if I am stopped out at this level. If you decide to trade based on what I am showing here please use a demo account or at least have a very good awareness of the potential loss to any account you are trading.

EURJPY No clear direction

The last formed daily candle has not given any indication of direction. The market is ranging. Todays price action did not break the highs or lows of the previous day.
Sometimes staying out of the market is the best option.

On another note the first friday of each month is NFP. NFP is a jobs report and usually has a high impact on the markets. I think alot of traders are now waiting for the NFP announcement to see if a market direction will show itself.

EURJPY Candlestick analysis

Well we did not get the close 50% up into the body of the previous day that we were looking for which would have created a piercing candle. Instead what we ended up with is basically a 'spinning top' although a spinning top generally has a small body with long wicks on either side. The spinning top represents indecision between buyers (bulls) and sellers (bears) and as a result is a fairly 'neutral' formation. We will have to wait for the next candle to see if any direction becomes apparent.

EURJPY Analysis

The last trade setup did not trigger and last Friday saw a strong move to the downside. Any pending trades based on previous analysis should now be cancelled.

Todays open candle opened with a gap to the downside and then continued into a strong resistance zone. Then price moved swiftly up from that zone and closed the open gap. Experienced trades could have taken advantage of the this movement and made a nice profit.

When a candle opens below the close of the previous day and then closes up into the previous days candle AND closes 50% or more up into the candle it is a 'Piercing Candle'. The piercing candle is another japanese candlestick formation and is considered a reversal candle especially when bounceing up off of a resistance level. The further past 50% the candle goes into the previous candle the stronger the signal is considered. Of course if it goes beyond the previous candle open we will have a 'bullish engulping' candle.

So we will see what the close of this days candle will bring and then make a decision on what play to make if any.

Of note also is that the we are now starting not only a new day, but also a new week and indeed a new month. At this time we should consider the weekly and monthly charts for candlestick formations that may signal us to upcoming price action :-)