This has been a brutally tough market to make money in, but with patience and preparation, there are many winning trades to be had.
Last night our entry was perfect, with the trade only going against us for a total of three pips at its worse. Then we closed our first trade for 50 pips, and our second trade for 90 pips. Not a bad night of trading.
Tonight we are trading around 1.7510. We do not expect any drastic moves up or down with the holiday fast approaching. With that said there is some minor news being released tomorrow, which includes retail sales, Business inventories and import/export prices.
There is a minor region of resistance starting at 1.7530 and going up to 1.7575, quickly followed by the super resistance at 1.7600.
On the support side, we are looking at a range from 1.7480 to 1.7500. There have been very few definable significant trends to ride.
It is all the more important to adhere to your risk vs. reward and money management rules, and most important you personal trading rules. The importance of a quality forex trading course and good forex trading education is magnified in this type of market.
No market stays the same forever, but when you get the opportunity to almost predict what's coming...jump on it. This sideways market has been a great opportunity for all of the beginners to learn the skill of patience.
No trader can be successful with the four major attributes. Confidence, aggressiveness, discipline, and patience. In the last few weeks, it has been so important to wait for the good support and resistance levels instead of jumping in ahead of them, and ultimately taking a loss.
Now, don't get me wrong, sideways markets can be very difficult to make significant money in, but that does not mean that there isn't money to be made. In fact, it is very common to be almost 85% accurate in this type of market due to the very predictable top and bottom of the range.
That being said, you might only be able to make 2 or 3 trades per week, which is more than enough if that's all that is available.
If this is the case it will make it much easier to make a good profitable trade. On the other hand Cable could just as easily slide right back into a consolidation sideway market. Only time will tell.
We we lick our wound from last night and bid farewell to the 1.7600 resistance level. It served us well over the past few months holding on at least a half a dozen occasions. Lets take a look at last night and see what it took to break that resistance. Was it a 20, 40 or 60 pip move, no way? It took a lot more than that to break through, it was a 150 pip move that did the job. Only a move of this magnitude would have the momentum to break and hold above the established resistance.
Last weeks trades were not bad, but last night was not so much. We now have a possible trending market to play for the first time since the first of February.
Tonight we are trading around 1.7710. We are looking for a buy for the first time in months, and some of our traders are going to play both a buy and a sell at opposite end of the expected range.
There is some support around 1.7706, and even more around 1.7680. The first resistance is going to be around 1.7750. We do like to caution traders on making too aggressive of an entry, the 1 hour MACD is still on the sell side of the signal line, although there appears to be some divergence on this chart recently. To learn more about how we teach traders to successfully trade the forex market, be sure to get yourself a top quality forex trading education. One that includes either a forex seminar or a forex trading course.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course.or Forex Seminar
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