This is exactly the same simple idea as detailed in last nights post for USD:JPY.
Keeping an eye on FTSE for a back test and failed re-entry into the long term 4 Hourly channel for a possible swing short dependent on how other factors play out if and when the back test occurs:
Following my earlier post updating on recent trading I thought I'd post a quick snap shot of the USD:JPY channel back test I'm waiting for.
Its not too often I post such set-ups too far in advance because there simply isn't enough on the chart at this early stage to support the trade idea but in short I'm simply looking to see how price reacts if and when it reaches the underside of the old channel with a view to entering a swing short.
What you'll often see on such set-ups is a pip-perfect back test that instantly finds sellers, but some days later price will rally again and actually briefly break back inside the channel stopping out all those early positions. It is after this second back test that the real sell off will begin.
Just a quick post to make you aware of this set-up if you've not yet seen it.
As simple as the set-up looks, its worth watching because such trades can deliver significant Risk Versus Reward ratios based around the ability to quickly spot if the trade isn't going to work out.
Any signs of resistance at the re-test of this falling channel should find sellers. If the trade is entered and price continues straight upwards then its best to cut losses quickly and forget about it. Some of my most profitable trades have come from set-ups like this so even if only 1/3 of them play out, they are still worth taking note of.
As discussed in the Trading Round-Up for Last Week I've got no high probability swing set-ups on the radar right now but promised to talk about a couple of things I'm watching that could offer some shorter term trades and may eventually become solid swing trading candidates.
This full analysis doesn't hold any particular bias and may or may not result in the taking of new trading positions, but I'd like to share my thoughts on what I see in the charts based on historic variations of similar set-ups and discuss the possible outcomes.
The Weekly chart doesn't appear to be at an obvious
I'm currently Flat Indices having held long positions throughout much of today but with little going on in the way of new swing set ups I thought it worth sharing a couple of DOW and FTSE charts to give an idea of the type of things I watch intraday ahead of entering Day Trades.
Because this Blog is predominantly a way to
Just a quick chart for the Day Traders amongst you to keep an eye on.
I currently have a day trade long position open in DOW and this chart shows both my initial upside target but more importantly a level that may warrant looking for short entries if resistance is comfirmed.
Not shown on the chart is the Fibonacci levels, so to confirm, this
The big FX story of the day came courtesy of the Swiss National Bank confirming it would fix the CHF exchange rate at EUR 1.200I've not been following EUR CHF but I have been watching GBP CHF for confirmation that a medium or long term low could be in place.