trading ranges

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BREXIT Made Trading Fun Again!

Ok, I have to be honest, at the time of the infamous Brexit (Britain exiting the EU) vote I did not have much exposure in any financial markets. I had just a small forex account and I was not trading.

Then it happened.

The vote results were announced and the markets went bananas! The British pound dropped like a rock to 30 year lows!! OMG! I had 15 minute charts up and witnessed a 600 point drop on both GBPUSD and GBPJPY 15 minute charts - AMAZING!

Whats more amazing is the volatility that has returned! Volatility we have not seen since 2006!

What does this mean? It means its time to dust off our old methods and rules and get back in the game! Time to bring this blog back to life! Time to start trading ranges again!

Let’s make some money! Who’s is with me?

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Learn To Trade

If you are interested in really learning how to trade, in any market, under any conditions... Get in touch. Start the new year with a new way to trade!

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NIce FTSE100 trade off of resistance. I am interested in knowing how you would have played this???

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Excalibur in action - tell me what you see!

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Excalibur

A while back when I was trading bonds and treasury notes, I stumbled upon a pretty nice and simple strategy. If I recall, the only reason I stopped using it was because it was quite boring!

A few weeks ago while going thru my old notes I stumbled upon this classic  strategy and asked my self "why?"

When I say simple, this is one simple strategy. All you need are the following:

21 period moving average the original used a EMA but I am fond of adaptive - there is really not much difference.

Daily Pivot Point

Thats it! Really.

Now how do you use it?

First, identify where price is in relation to the daily pivot.

If price is above the daily pivot AND above the 21 period moving average ONLY take LONG trades.

If price is below the daily pivot AND below the 21 period moving average ONLY take SHORT trades.

Never trade when price is between the pivot and the moving average.

Thats it! The bonus is this simple strategy can be used in Forex, Indexes, Equities, Bonds or pretty much any tradable product.

I'll start posting charts with examples in the coming days. In the meantime, please feel free to ask questions.

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Crude Oil

Started trading crude again. I will start posting charts soon. Here is my trade history:

http://www.fxblue.com/users/enochbenjamin

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what would you do?

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Trade of the day - EURJPY 50 pips.

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Here is another "excalibur" trade long. Note I was not awake for this move up.

Questions?

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Old excalibur trades. Pretty safe, low risk trade. Use the MA to determine short term trend. Once price touches the MA and fails to make a higher high we look to short and take some coin off of the trend continuation.

Questions?

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Do you still trade the Euro with the use of the 4 hour pivot? Do you trade the US time 8 am - 12 noon EST? Just curious. Thanks

Hello and thanks for the question. Yes I still trade the Euro although I have found the Euro/Yen (EurJpy) pair to be a little more rewarding lately.

I do not trade the 4 hour pivots exclusively. I do watch them but price action is so slow during the US session it is sometimes hard to find good trades. For the best trades right now, you need to be up and watching the London session from approximately 1 am - 7am.

Cheers!

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Classic divergence (EURUSD) provides low risk trade.

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Low risk trade set up.

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EURUSD Trade Set Up

I have started watching line charts exclusively. One minute scalps are my poison of choice. So I'm looking for low risk trades with a target of at least 12 pips. The amount risked is usually 6 pips (I say usually because depending on the set-up sometimes a wee bit more is risked).

1a) A new higher high is set.

1b) A new peak on our oscillator.

2a) A lower high.

2b) Confirmation of declining momentum by a lower peak on the oscillator.

3) Signal is a quarter level (ala Mongolian). The filter is price below the moving average MA).

In this example, you would short at 1.3012 and expect price to drop to at least 1.3000. If you have the ability to watch small retractions, you could stay in the trade until price crosses the MA in the opposite direction of your trade. If you did this you would have gained 30+ pips on a a 1 minute scalp as price dropped to 1.2980 before reversing and crossing the MA

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1 minute chart of EURUSD. Circles are higher highs that are clues to a price drop. Squares are entry signals. Tools used: Line Chart, T3 MA, OsMA (13,34,8)

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Video of a 6 pip scalp EURUSD (forex).

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Who Wants To Learn How To Trade Currencies?

If you are serious about learning how to trade currencies you have come to the right place. I am going to give you a brief primer on how to make small but consistant gains in the volitile currency markets.

The first thing you need to learn is how to identify the evil twins greed and impatience. Once you identify these twins you must become intimately familiar with them. You must master these evil twins before you risk ANY of your hard earned money. If you do not have mastery of both greed and impatience, then you will LOSE your money. I speak from experience.

Master ONE (1) currency pair. Thats right, only look at a single currency pair and master the nuances and quirks of this pair. Each pair has tendencies and certain patterns that they will display at certain times. You must put in the screen time and be willing to know how each pair behaves under varrying market conditions. I would strongly suggest that you start with EURUSD, but as long as you start with just one pair you should be alright.

Pick a timeframe/style and stick with it! If you are going to scalp, pick a lower timeframe and master the short term trends. If you are going to swing trade, pick a relative timeframe and stick with it. DO NOT have multiple timeframes open at the same time. Pick one and stick with it! Be a specialist! You are going to war with other specialist and if you try to be a well rounded soldier you will die! Are you an swordsman who is good at hand to hand combat or are you an archer who picks off the opposition from a distance? Don't try to be both. A seasoned swordsman will always beat an average swordsman who is also an average archer. Likewise an archer never wants to come face to face with a swordsman - thats not his game.

In reality. Some people will be able to take the three steps above and become master traders... if you are willing to put in the time. Others will need to add visual tools to help guide the way. There are many ways to profit in the markets and there is no right or wrong way, however, I belive the three steps above are the foundation to any technique.