This week, however, we have caught the entire range of Monday's trading, Netting us 40 pips on one trade and 100 pips on another.
Using the same trading levels we got long last night, and again netter 140 total pips.
Although there were some great reasons to go long during the pullback to 1.8850 at 8:00 pm EST, we didn't take the long because we weren't in front of the screen. That's ok, no crying over spilled milk for us.
So, in the last two days there has been a total of a 160 pip range. We have grabbed 100 pips of it...YAY! Generally, the goal is 60% ? 70% of the total move. So in this case we are right in that spread. Granted it's the lower part of the range, but we are thrilled.
Our goal, even with all of our trading experience, is 100 pips per week. In the "Trading In Black And White Forex Trading Course" we go over a very detailed compounding schedule and money management system that explains this in detail.
So, now on to tonight's trading.
Just like yesterday there is no clear cut resistance level to play. Also, just like yesterday we're going to point out that there is a "make-shift" resistance level to watch if you are in front of the screen when price gets there. This is....drum roll...1.9000.
Face it, even just looking at that number makes you jittery, nervous, excited, SOMETHING! Whole numbers have that affect on traders as well. We like to watch them for interesting trading activity. We discuss an entire trading strategy in the "Trading In Black And White Forex Trading Course" that revolves solely on big figures.
So, if you are around if and when we get to 1.9000, pay close attention to price action. You might be able to find a good short or a good long based on what happens at that level.
Again, like yesterday, beginners should not be looking to trade at a level that does not present a more clear picture of resistance.
As far as support goes, we will be watching a few different levels. Admittedly, we are conservative in our trading so you'll be able to guess which level we will be watching most closely in a minute.
On the other hand, many of our traders are more aggressive than we are so we'd like to share all of our thoughts with you.
1.8890, 1.8860, 1.8820, 1.7760 are all "valid" support levels. Obviously, you have to be sure that you get good price action, especially at the higher levels.
We are going to keep an eye on the 1.8860 and below. That does not mean that 1.8890 is not a good trade. We have found a trading style that works for us, and we stay true to it. So far, out of all the styles we have tried with the FOREX, this has been the most consistent and profitable one.
You should take the time to learn how to develop YOUR OWN trading style. Too many so called Forex gurus teach you to mimic their trading styles. Well what good is that? What if their style no longer works, how are you going to adapt?
With the proper Forex trading education you'll be able to decipher any of their systems, and ultimately develop your own. Believe me, there is no better feeling than being an independent trader.
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.
From that point on, we waited and watched. We did not go short the second time we hit 1.9000, unfortunately, but many of our aggressive traders did. They played the very common "over reaction strategy" that happens when there is a news release.
Now, here's the part that kind of sucks...we didn't make a trade for the whole way down to 1.8800. That's 200 pips that we had to wait through in order to get to our support level of interest.
We had the chance to go long at 1.8820, but we sat it out because news had just come out and we like to wait a bit before jumping back in after a news release.
There was another chance to long around 1.8800 again later on, but we generally are not in front of the screen in the afternoon. However, I don't think that we would have taken that trade anyway. I'll assume that we wouldn't have. This makes me feel better about missing that kind of move...ha ha.
So, let's get to tonight's trading.
We have to admit that we are very confused. With the recent activity, a nice resistance level has formed at 1.8900. It's one that we are going to watch very closely.
One fear is that it will be tough to find a stop level above there to protect our trade. There really doesn't seem to be anything all the way up to 1.9000.
On the other hand, we are going to leave our support level at the mid 1.8700's. So far, that level has held very well and hopefully we'll have the chance to get in there again and catch another great trade.
On a VERY IMPORTANT note! Although we don't really focus on fundamental analysis, we try to be aware of potential risks due to volatility because of news. Tomorrow is loaded with news. Starting as early as 7:30 am EST and going right through to 10:45 am EST.
Now, not all news releases are the same, but the more there are within a few hour span the more important they become. People get into the mode of reacting to the news and then over react to even the smallest piece of news.
That being said, we will be ultra conservative tonight. Also, we will close all of our trades prior to the 7:30 am EST news release.
Past that, we won't put in a trade again till after 11:00 am EST. At that point we will reevaluate the charts of Cable and find new trading levels (they might actually be the same ones we spoke about in this newsletter).
Truth is, we have had a great week of trading. We've made 360 pips, which far surpasses our weekly goals, and we are not looking forward to giving any of it back.
This, too, gets factored in to our conservatism for tomorrow.
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.