Below I have included the before and after charts of some of the trade signals I have issued in the Telegram group so far in September, along with the rationale behind those setups – all to give you some ideas about how I look for trade setups and to help shorten your learning curve.
As you may already have noticed from my previous article on how I look for trade setups, I have been shorting the US dollar against anything.
The USD/JPY was the next USD/XXX pair I was targeting since this hadn’t moved yet compared with other setups. I wrote several articles on this for ThinkMarkets and one for investing.com HERE, as well as sharing the charts of UJ on my twitter account. You can read more on UJ by following the link.
USD/JPY short (01/09/2020)
The first signal of the month was indeed on the USD/JPY and this is what I wrote in the Telegram group and provided the chart below detailing the trade idea :
* big bearish engulfing candle on Friday, followed by mall inside bar monday.
* Price has has returned to resistance zone between 105.85 to 106.15 – this is an ideal location to look for shorts in my view
* two targets, both below recent lows
* invalidation above Thursday’s high (where the rally faltered – there should be no reason for price to get there again, if the sellers are truly in control. if not then we want to be out at that point)
This was actually a painfully slow trade but it eventually worked out as we had envisaged – this was the outcome of the trade:
The USD/JPY hit our first target for a cool +78 to +113 pips. The second target remained open at 104.15, which was the liquidity below the most recent swing low.
Gold long (04/09/2020)
Gold was continuing to show bullish price characteristics and I continued to look for long setups. My thinking for this idea was that for as long as the metal holds its own above the old record high, the path of least resistance remains to the upside, as I explained in THIS analysis video.
So the trade idea was simple: long at support, initial target would be the liquidity where trapped sellers’s stops would be resting and invalidation where trapped bulls’ stops would be located – as per the video and this chart:
Gold remained opened at the time of writing, but we had moved the stop higher to lock in some profit in case it turned lower, as per this update for example:
Gold update: time to move stop above entry area after Thursday’s formation of an inverted hammer/doji candle. So far, the break below this candle has been short-lived, suggesting that sellers are now trapped. But we need more gains to prove this view right. So, best course of action is to tighten the stop loss, as I have done as per the chart
FTSE long x2 (08/09/2020 and 10/09/2020)
I issued a FTSE long setup in the group and as soon as it allowed us to move the stop loss higher to eliminate the risk, I issued another one. BTW you can learn more about risk management HERE. Anyway, this was the reasoning behind the first idea:
FTSE long trade idea – the index created a large bullish candle yesterday and it is now testing support around 5905 – the high from Friday’s doji candle… if it wants to go higher, this is the level that needs to hold. The reason why I am bullish on the FTSE is the fact global indices have been going up but FTSE has lagged. I think it has a lot of catching up to do…so hopefully now it will start that motion. You can always wait for more confirmation e.g. a break out of the channel then look for longs if you wish. But if you are following the above trade idea, make sure to tighten your stop loss when the market gives you a good opportunity to do so (e.g. a break above today’s earlier high)
And this was the chart of the first idea:
This was the chart for the second idea:
And the outcome for both FTSE long trades:
The first long trade yielded +175 points and counting, the second one +114 to +144 points, depending on entry. This is the before/after chart I shared on Twitter.
Brent crude long (15/09/2020)
I first brought the group’s attention to Brent on Friday 11th September, suggesting that I was thinking to issue a long trade on crude oil in the following week, which I did (see the below before and after chart). This was the chart that caught my attention on Friday:
And these were the reasons I was looking to go long this market
BRENT CRUDE OIL – worth watching this with price showing potential bottoming signs after recent sell-off. Maybe one for Monday?
RSI positive divergence
Price repeatedly refusing to go below 39.50
$40 key psychological level, important for oil producers like OPEC that prices stay above this….
This trade worked perfectly for a cool +140 to +170 points depending on entry:
Gold long (14/09/2020)
As the stop on the initial gold trade (see above) was moved to above entry, I issued another long trade on the 2 hour chart of the metal. This is the reason I provided:
The long-term trend is bullish as I have shared this fact on many charts and analysis videos before. This chart shows price is coiling just below the bearish tend line. I think the pressure is building for a big breakout, so it may pay to get in early rather than later.
(please note, this is completely different to the one we have opened last week which still remains open but the stop loss has been tightened to above entry on that one)
So there you have it: lots of ideas and charts to learn something from. It remains to be seen whether the two gold trades we have opened will go on to hit their targets. I sure will issue more trade signals for my subscribers and may provide an update at some later point on those too!
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