I was doing my analysis earlier this morning. Once a week I go over all the Forex pairs on my watch list, or more precisely, the very long term charts. Namely monthly and weekly. All other time frames are checked daily, but these are so extreme, not much changes on them day to day, that’s why they get reviewed once a week. Could be more often, if warranted. I don’t use them for trading on regular bases, preferring to be more active. Not that using very long term charts is wrong. It is just not exactly compatible with my patience level, something maybe to work on. One more item to add to my long “needs improvement” list. If memory serves, there was one trade in this blog using weekly chart. A buy in GBP-CHF at the beginning of January, which produced good results. Well, this morning I found another interesting weekly chart. This one falls into the strange category. I mean, how often do you see large magnitude graph with this kind of profile? That’s how 5m charts look on news busy day.
Massive swings, sharp reversals and absurd volatility. I’m going to try a long trade here. Long as in to the upside and long in duration outlook. Small(very small) buy order was placed at 2.3070. Objective is 2.5100, large one for me. Size is minor in relation to my normal trading. Very unusual trade for me, but I think it has potential.
Back to routine. Want to try a sell in EUR-CAD. Canadian Dollar finished Friday on very strong note. This will probably carry over to early trading after the open. Just hope it will last long enough.
I used 4H chart for trade selection, but when(if) order is filled, 1H chart will have to be used for stop placement. At any rate, my objective is to gain 300 pips.
Any other trade or order still pending was covered in Friday’s post. Don’t feel the need to repeat myself, but there was one order I overlooked. Post Silly or what included analysis of AUD-NZD. It is still valid.
This being Sunday, opening gaps are possible. I’m always on the lookout for them. Should any trades happen on gaps, I’ll try to cover it in next post.
Mike K.
Are you really going to take this gbp-aud trade? You probably would have to hold it for couple of months. Very long time comparing to your all other trades.
Most likely, but a very small one. I don’t want to tie up money for a long time.
No new trades in yen pairs? Do you think jpy will get stronger?
Not sure what Yen is going to do. I’m waiting for prices to develop and see. No interesting set ups right now. Besides, I only post small portion of my trades in the blog.
It looked for a while that cad/chf order would get filled. Guess we have to wait longer.
Patience is a virtue, Renata. Or some other crap like that.
[...] Another one of Pound pairs falling into that category is GBP-AUD. Few months ago in a post Strange chart I covered a possible long term buy. It never materialized, price kept falling without touching the [...]