Mondays are historically the lowest volatility day of the week. That means some special attention is required when selecting trades. Figure one shows EURUSD volatility per weekday, with Monday averaging about 60 pips of movement. Wednesday and Thursday see a significant jump in volatility. Figure 1. Source: http://vantagepointtrading.com/daily-forex-stats – November 11 November 11 is […]
Whether you trade forex, stocks or stock index binary options, there was a lot of movement on November 7 to capitalize on. Just prior to the start of the US session the ECB Interest Rate announcement sent the EUR/USD flying lower, dropping about 150 pips in 2 minutes, it then consolidated for a few minutes […]
Occasionally countries or regions take aggressive action in the currency markets to support or suppress a currency pair. A recent example is when the Bank of Japan intervention into the USD/JPY and other Yen related pairs. Another example is currently occurring in the EUR/CHF, and it creates a rare and unique trading opportunity. Swiss Bank […]
Not every day is going to be easy to trade–some days are, some days aren’t. Depending on trading style, a tough day for one trader may be a glorious for another, but the fact remains every trader faces tough market conditions. Since I don’t start trading the EUR/USD until well into the European session, nearer […]
Another trending day for the EUR/USD, providing ample opportunity to trade the short-side (puts) during the London session and the start of the US session. To take advantage of the downtrend, look to enter on pullbacks and exit on the next swing lower. Using 0.01% envelopes provides a context for pullbacks on a 1-minute chart. […]
Clearing your charts of all indicators forces you to focus on the price. Price movement is what creates profits and losses, and is therefore the most valuable indicator you have. Price Action Entries October 31 was a trending day for the EUR/USD; trending days are relatively easy to trade as long as you trade with […]
When day trading, looking at both the long and short-term technical outlook of an asset can be a big advantage. If you only look at a 1-minute chart for example, you may be missing the larger trend. And if you only look at a daily, hourly or 15 minute chart you’re likely missing a lot […]
One of the first lessons we often receive as traders is “trade with the trend.” This is good advice, which I recommend following. But how can you tell when a trend is trustworthy, or strong? While it is good to trade in the same direction as a strong trend, if the trend is weakening or […]
In part 1 we looked at the overall strength of the market as a determinant for if we should stay in a trade or not through a pullback. Yet, pullbacks can be rather deceptive. Assume we have decided to stay in a short trade because there was a lot of selling pressure prior to a […]
Place a few trades and you’ll invariably ask yourself this question at some point. Say you buy the EUR/USD at 1.3700 and have a price target at 1.3730. The price climbs to 1.3720 and then starts to reverse. Do you say “Close enough!” and take your profit, or do you allow the EUR/USD to pullback […]