TradeProfits

Forex Signal # 3 – Trade Setup EUR/GBP

Posted on 26. Apr, 2010 by Jakob.

The picture below is a print-screen of EHR/GBP on a 4-hour chart. The break of the support level was one of my recent trades where I went short, and closed it right before it retraced back up, just above the level and then back down. Now this pair has setup for a perfect double bottom; if and when this pair closes the next one- or four hour candle above 0.8719 I will probably enter on a long trade. I don’t want to see it close more than 50 pips above this level, as this will greatly reduce my chances for an appropriate risk:reward ratio. Normally I would place my stop loss below the two bottoms, but in this case, that would be 120 pips, and I think it will be difficult to get a risk: reward ratio of even 1:2 with such a stop loss. However, if we get a close above 0.8719, the pair is also back in the triangular pattern, and I would then feel comfortable with a stop loss some 10 to 20 pips below the support level (green line). I will be heading to bed with an hour or two, so hopefully we won’t get a break before I am back in front of the screen tomorrow morning. If I enter on a trade, all the details will be posted on facebook in real time. Join the group here.  Read more... (234 words, 1 image, estimated 56 secs reading time)

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Forex Signal # 2 – Trade Setup EUR/USD

Posted on 25. Apr, 2010 by Jakob.

Last Friday we had a typical crazy day with a lot of whipsaws and contradicting news. We got worse than expected news from UK, which could have pushed the GBP/USD lower and dragged the EUR/USD further down, however just in the same seconds Greece shocked the European market by accepting the financial aid package offered by the Euro zone and the international monetary fund. This pushed the EUR/USD back up about 170 pips, right after it had made a new low. The low of March 25th at 1.3263 was broken and at one point it looked like the EUR/USD could have dropped significantly last friday. However, it went back up to 1.3372 and closed for the weekend. It should not be a surprise that concerns over the situation in Greece has contributed to the greenback´s gains in the last week. However the acceptance of the financial aid package obviously gives some kind of hope for the country, but also confirms that the nation is in deep trouble. My apparent guess is that we will see further downside to the EUR/USD, but who knows. I have looked at a couple of possible setups, and keep in mind that we might get a gap when the market opens and this might mess around with my plans. I will mainly follow EUR/USD and base my trades in other pairs on this pair, in terms of correlation. The EUR/USD did cross the recent trendline, and even had a close of the one-hour candle above it. However, one hour later, it was back down, below the trendline, giving us a strong reversal setup, on the 4-hour chart. My bias is bearish for the moment, but if we get a close of the 4-hour candle above the trendline (and no more than 30-50 pips above) I will consider taking a long trade with a tight stop loss just below the trendline. However, if we get a close of the next one-hour candle below the trendline (but no more than 30-50 pips below) I will look to take a short trade with a stop loss above the recent high (fakeout above trendline). I would prefer to see a short trade. I will not look for these signals right at the open of the market, but most likely wait until the London session Monday morning (GMT). Stay tuned.  Read more... (395 words, 2 images, estimated 1:35 mins reading time)

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Forex Signal # 1 – Update

Posted on 25. Mar, 2010 by Jakob.

A while back I posted a trade setup for the EUR/USD. You can read it here, and look at the pictures. This was a simply breakout trade and it played out very well. Take a look at the picture below, to see the EUR/USD on a 1-hour chart.

 Read more... (245 words, 1 image, estimated 59 secs reading time)

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Possible Short on EUR/USD

Posted on 16. Nov, 2009 by Jakob.

If you take a look at the chart below (click the picture), you will see that the EUR/USD has be climbing closer to the 1.5000 level and it has even been broken for some 60 pips back on October 26th. On November 11th the EUR/USD was once again up and above the 1.5000 level, creating a close to perfect double top formation on the daily timeframe. In addition to this we have some MACD divergence on the daily chart, which gives us some indication of a possible upcoming reversal. As the pair has bounced off the 1.5000 level two times now, it shows us a good sign of a strong resistance level. It should also be noted that the 1.5000 level act as a psychological level, which is likely to increase its resistance effect. Hence I am bias short, but I will not take another trade before I get a clear signal. I have tried to short it a couple of times now, some have played out well, and others have been recorded losses. As Bernanke will speak in a couple of hours, it is likely that I will take a trade during, or shortly after this event. Preferably I would like to see a close of the four-hour candle below 1.4713 for a possible short trade or a close of the four-hour candle above the 1.5050 for a possible long trade. However, not too far away from these areas as well, as I don’t feel like chasing these trades, specially if we get a long trigger. If I take any trade, it will be posted on twitter, with all the details.  Read more... (314 words, 1 image, estimated 1:15 mins reading time)

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Back from vacation and two possible trades

Posted on 29. Jun, 2009 by Jakob.

I just got back last night from one week in the south of Spain. Great wine, lots of seafood, cold beers, etc. This was really what I needed after all the school stress. Now I am back and ready for some action.  Read more... (393 words, 2 images, estimated 1:34 mins reading time)

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