Preparation is often said to be the mother of impact. Whoever desires to win consistently at anything must invest quality time to study the dynamics of his vocation. The quality of hard work in my opinion is therefore deemed the most important to a traders life. As traders, it behooves us to undertake chart studies as though our whole lives depend on it; anything less leaves one perpetually at a level where he has to struggle through every trade idea. Judging from the tough road traders travel in their quest to finding an ok trading system that is consistent with wins, it leaves me with the conclusion that no profession world over can be as mentally torturing as the game of speculation. Even when a trader has attained a size-able wisdom to traverse the fx jungle successfully, he still needs to be constantly alive to his chart every now and then to scan for potential setups that keeps him functioning. One best time to prepare against this wild beast of a market is often during weekends when the market is asleep. I refer to this as trading before the trade proper. Why do i have to disturb myself looking at some chart on a Sunday noon when i could as well be hanging out or having fun with whatever? The answer lies within the simple truth that im always more relaxed, not prone to impulse, and more objective with my analysis during dormant periods than i would have been in an active situation. Emotions are perhaps the the most difficult things to conquer. The inability of men to tame the men in them while trading usually ends in a calamity no one would want to recount. We have all been there. This accounts for why weekend analysis is useful in helping me make informed trading decisions as well as keep emotions in check. So i implore everyone to make it a habit to look up charts before market opens as this would help us anticipate trading opportunities before they become ripe to pounce on. After crossing my Ts and doting my Is, i have for us these few setups i consider juicy which should leave us happier folks at the end of the trading week God willing. First on our list is NZDUSD; Plenty thanks to Jovi Babs who anticipated this setup and brought it to our notice before mkt close last friday. True to his inkling, NU actually closed a pinbar on the weekly time frame. Even more important is the fact that the pinbar in question is formed at a key level as price suffered a rejection at a key resistance. Given this development, well go bearish on NU with a profit target @ 0.8516 and 0.8436 if it extends. Strategy remains a sell on rally for this pair. AUDUSD; Seems were in for a divergence in the commdols as Aussies technical outlook still points to a higher climb. Weve been bullish on AU for about six daily sessions now and our bias is unchanged. Potential Tp levels are 0.9460 & 0.9750 in extension.Buy the dips! GOLD; The precious metal has again boxed itself into a corner. Gold on the daily frame is currently trading within a symmetrical triangle. A triangle mind you, warns of a breakout in any direction but were confident it will break north because other factors point in that direction. The obvious divergence on the monthly frame and the fact that price suffered a rejection at a key support on the weekly frame among others is the reason were unwavering in our bullish bias. Buy the dips towards 1393 and 1430 in ext. EURCAD; A perfect head and shoulder formation to send Eurcad to the great beyond has showed up on the daily time frame. Formations such as this do not occur often in the mkt. but when they do, traders take advantage. Sell bounces to 1.4814 & 1.4435 in ext. USDCHF; lastly, another short term price action play on the 4hr frame of Usdchf . A pinbar at a key level that should weaken usdchf towards 0.8799. As always, attached to this post are the corresponding charts for your perusal. There you have it. My two cents on those few. Ure at liberty to either take these trades, counter or stay out completely if they conform with your analysis or go against it. Inputs would be appreciated. Have a green pipful week!
Posted on: Sun, 11 May 2014 17:05:49 +0000
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