Position Update: I have shifted CADCHF to breakeven. CADCHF is opposite of EURAUD Forex currencies have high correlation with each other. If one moves up, there will another moving down. I like to own two currency crosses with different correlation. It helps to confirm my analysis of a currency vs another. CADCHF and EURAUD is one such example. They have been moving opposite of each other for the past few months. Since I have a EURAUD buy position, I would like to short CADCHF as a confirmation of my trade. True enough, CADCHF has a 8h pullback. CADCHF 8h Pullback. Look at how magically the price pullbacks to the broken 8h trendline. (first yellow circle). This is what I like to see and trade. There is no way to run except opposite of the pullback direction. Here is my setup parameters. Again the chart Continue Reading
Position Update: I have shifted EURAUD to breakeven. My month's break is over After a month of holiday, I am back to trading ! I promised myself not to trade during the holiday to give myself a "TRUE" break. Unfortunately, I have broke my promises by looking at charts occassionaly. I did not take any trades though ! 8h and Above Timeframes After some thoughts, I have decided to stick with the higher timeframes from 8hours onward. This means I will only look at 8h, Daily, Weekly and Monthly (rarely). I know I miss a lot of trades (probably twice as much) but I also know that my overall porfolio will be more profitable. I have a lazy personality and I like to see my trades growing. I prefer to "maintain" existing trades than trying to find new setups. In forex market, currencies move in pack and very strongly. It Continue Reading
I dont like breakout pattern EURCAD is breaking down from its 8hour trendlines. Most of the times, I only trade my favorite pullback pattern. I don't like breakout pattern as I know the price will pullback anyway. However, I will take them when I see a pullback pattern from 90% of the correlated currencies. Canadian Strength Across All I am seeing pullback pattern on GPBCAD, CADCHF and USDCAD. There is strength with the canadian currency all across the board. Usually, this might mean indicate a strong move and I don't want to miss this kind of moves. It pays for my bills and losses. Continue Reading
USDCAD has been going on a rampant run for weeks. This might be pausing soon as a classic pullback pattern evolves.
I will be establishing a short position here. Estimated move to the next pullback zone.