August 2012

AUD:CAD remains one of the few pairs I'm still watching. Having misplaced the stop loss on the previous swing short attempt I'm keeping an eye on it for a new short entry on confirmation of a lower high. Most time frames offer the same story and I've gone for the 4 hourly here as it compresses the data quite well. If the planned swing short is to remain a valid proposal then I'd like to see

The following is a reprint of a post I wrote on my ADVFN forum, but I think it stands to reason that it qualifies for a place here on the blog. I think learning how to trade from charts is very easy. All you need is some horizontal Support and Resistance lines on your chart, and you buy or sell from them, simple as that. It is our own shortcomings that allow us to lose money in trading, mainly over leverage which I've written about before in this post. Over leverage often means running stops too tightly thus not allowing a good trade to breathe, or, taking profits too quickly because

Very little to say this after this incredibly low volume and frankly dull Week of trading. Intraday movements across Indices appeared to be almost completely random all Week and this is proven by the fact that today's low volume trading on DOW covered the whole Weeks range less a handful of points. No new swing trades were taken and I continue to hold the 2nd half of

It's been a torrid Week for my trading with a series of events created by Draghi's Thursday speech that really caught me out on so many levels. Thursday's violent Market sell off is the type that either follows through in subsequent days or ends in a consolidation period but this Week a violent sell off on Thursday was followed by an equally violent rally on Friday and I didn't see that coming. In fact, even my day trading system which I've started to build trust in remained on a sell signal throughout much of Friday before being stopped out. So, how did this affect my Swing trades?

Over recent Week's Cable has been trading a relatively large range of approximately 400 pips. The overall trend on the Weekly chart is down, but on smaller time frames there is no trend at the moment, only a range that will eventually break into a trend. Whilst price is trading in a range it's relatively common for traders to make a decision as to the outcome of that range, but in reality the range itself is proof that there is indecision within the Market. The only way to capitalise on that indecision is to ignore any overall directional bias and play the range as it forms. In the case of GBP:USD on shorter time frames that range has run a sequence of marginally higher lows whilst resistance has been repeatedly found at 1.5736 region. This could be indicative of an ascending triangle formation or looking at the chart the possibility of a bullish inverted head and shoulders pattern, but in reality these potentially bullish patterns can fall apart through time decay. Therefore, the long position I've taken from